2013: How Rising Prices Could Boost Housing Demand

Initially this sounds very unintuitive. But if you read this WSJ article, the author makes a good case for built up demand and buyers coming off the fence one they realize the bottom is here - or already gone!

"By Nick Timiraos

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Home prices finally hit a bottom in 2012. So will 2013 be the year of recovery or relapse? This is the second in a series of blog posts about where housing is headed next year.

Potential buyers now have something they haven’t had in a long time: urgency (save for a few months when the government was paying people to buy homes with a first-time home-buyer tax credit). This next year will be the first time since 2006 where prices ended the previous year in positive territory. Surveys already show that buyers’ expectations of future home prices have improved throughout the past year.

Just as falling prices have frozen buyers and sellers in place in recent years, housing strength may be even stronger than current indicators show given the powerful shift in sentiment that price increase may bring."

We believe there is pent up demand in sellers as well. Many who tried in the past may see and opportunity to sell into this increasing market.

Here is hoping for a great 2013!