Slow but Steady Gains Projected for 2013 Housing Market
Both investors and homeowners are exhaling a collective sigh of relief now that our New Year fiscal cliff plunge has been averted. The post-holiday market indexes are up, and many weary investors are beginning to see their assets gain value across the board. Also, in reviewing the returns from the last two quarters of 2012, it’s clear the prior year was a turnaround success for the housing market. Taking all this into consideration, what’s the market outlook for this New Year?
According to a broad consensus, it seems we’re slated to witness gradual gains in the housing market, with home closings maintaining their gentle momentum in tandem with a rise in median home prices. As savvy property investors are keen to note, the health (or lack thereof) of the housing market is often regionally segmented, with macroeconomic trends being only one arm of the equation. Investors would naturally be well advised to not only keep an eye on promising housing regions, but to do their best to scrutinize factors which point towards long-term value maturation.
So, in scanning the upcoming year, there are a few fiscal indicators that paint a cautiously sunny picture for the American housing market. It’s become clear that commercial real estate is viewed as a stable investment, as urban property is gathering speculation from foreign finance players. Broadly categorized, it appears that the greater housing market will also see a gradual return to good health.
As reported by TheAlternativePress.com, the National Association of Realtors has recently made statements predicting that the recovery in the housing market will likely involve a gradual steadying throughout the rest of the decade. Exempting unforeseen financial catastrophe, current trends speak to a gentle rise in home sales and property values. This is likely comforting to many homeowners, as we’re still feeling the collective burn of a housing bubble that expanded and burst with reckless speed.
Some of the concrete indicators of momentum that the NAR singled out include a lessening unemployment rate and favorable interest rates and housing prices. Broadly surveyed, economic conditions are mortgage-friendly while housing prices remain affordable. Additionally, many homeowner hopefuls froze their assets during the early recession, and are beginning to come out of the woodwork en masse to reconsider property purchases.
As a second kick-start to the housing market, the current combination of low prices and newfound interest in home purchases will ultimately drive the national home inventory down. Ultimately, a lowering in the national volume of unsold homes will work with other emerging factors to slowly increase the value of homes on the open market. This pattern may work as a secondary motivator of the housing recovery, and perpetuate what is looking like a slow but steady recession.
It remains to be seen precisely how the housing market fares through the next four quarters, but it would be safe to bet that we’re looking at newly optimistic projections.
Harrison Stowe is a writer for NVR Inc., a prime developer of new homes in Clarksburg, MD. Addressing a range of real estate topics including investment, mortgages, and new construction, Stowe combines finance knowledge with additional experience working with Ryan Homes in the current real estate market.