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Housing Industry Looking Brighter for 2012

By
Real Estate Agent with New Home Star

Wednesday’s stock market, December 20, 2011 took a much needed rise as investors were buying on the basis of the current housing market also being on an upturn.  Investors have very positive hopes for the future of the housing industry as they’ve seen a trend of increasing sales and even new construction.

2010 was not a very optimistic year for home sales and the housing industry in general but 2011 started with a positive and hopeful forecast.  While some areas are seeing a lot of foreclosures and abandoned houses, not all areas are seeing such a bleak trend.  Although we saw a significant drop in the industry earlier in the year, 2011 seems to be ending on a slightly positive note.  The housing industry itself is seeing positive effects that most hope will continue into 2012.

Many people are viewing the final removal of troops in the Middle East and literal end to the U.S. participation in war as a positive move that will turn the economy around.  There are hopes that as more troops return to their homeland they will be settling in with families and buying houses for the first time.  While this may or may not have a direct impact on the direction of the housing industry, we have to agree that it’s a positive sign for the economy in any direction and generally where there are positive attitudes with the forecast of the economy there tends to be a positive trend in the housing industry.

We have also seen many changes made by the government that have had a positive effect on those who were sinking quickly as they faced foreclosures this year.  Those who have good credit have often been given a second chance to take advantage of better mortgage rates.  Many states have stepped in with special programs helping to promote and help those who were in distress financially with their housing situation and we are seeing a trend in better mortgage rates that lure first time buyers to begin looking.

As we’ve seen some of the lowest dips in the housing industry earlier this year, many are saying the only way we can go is up for 2012.  Between the sudden “lack of wars” that we’re a part of and a positive attitude in general about the economy, the better interest rates are definitely going to be helping the industry as we enter into the new year.  We all know that every area is different but, in general, we are seeing the government getting more involved in making the housing industry better and safer.  No more bad choices made by the banking industry and unrealistic loans to buyers who will find themselves underwater and sinking fast like we’ve seen in the past, the year 2012 is starting to look as though the housing industry will finally see a nice change for the positive.

The Home Buying Institute has predicted that interest rates could drop as much as another 8% before hitting bottom.  Housing prices themselves are being predicted to drop another 3% or more according to Clear Capital, a company that researches and analyzes the housing market.  According to Dr. Alex Villacorta, Director of Research and Analytics for Clear Capital, there’s a certain lacking to keep the market stabilized as far as pricing goes.  With interest rates low and affordability high the outlook for buyers is very positive.  The only downfall of the entire picture is the fact that unemployment rates could also rocket now that so many troops are returning home and many may be making the decision to enter into the regular job market, leaving the armed forces.  Along with an influx of former military men and women possibly entering the work force the normal lay-offs we see after the holidays may make the beginning of 2012 a little turbulent; but all in all it seems that most feel it will be a fairly good year for the housing industry; especially for the buyer.  So this may very well be your year to buy!

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For more information on how to buy or sell  a home, go to http://www.move2coloradosprings.com or contact Juanita Simkins, Professional Realtor & Expert Negotiator (719) 229-5770

Comments (3)

Faith LaRosse
Springer Realty Group - Limerick, PA
Serving Berks, Chester & Montgomery Counties

Juanita, we keep saying it: There's never been a better time to buy!  Maybe in 2012 more of those first time homebuyers will get the message- with no home to sell they are in the drivers seat - the world is their oyster...shall I go on with the witty sayings?  ;)  A very happy, healthy and prosperous new year to you and yours, Juanita!

Dec 31, 2011 04:19 AM
Li Read
Sea to Sky Premier Properties (Salt Spring) - Salt Spring Island, BC
Caring expertise...knowledge for you!

Thoughtful post...and I agree, it is a time to buy.  

Dec 31, 2011 04:49 AM
Juanita Simkins
New Home Star - Colorado Springs, CO
Challenger Homes

Thank you ladies! Here's to a prosperous 2012!

Jan 01, 2012 04:07 AM