The news is great for Sellers--according to J.P. Morgan, home prices could rise up to 9.7% in 2013. Three quarters of investors expect prices to rise at least 5%.
How does this affect you?
According to the Wall Street Journal, when considering risks, J.P. Morgan analysts "conceded that the economy is “gloomy” and tight lending standards can stop a bullish homebuyer from proceeding with a purchase. On the supply side, the “shadow inventory” of more than four million homes near or stuck in foreclosure still looms, though that inventory is dropping .
What’s more, just the uncertainty over whether politicians will be able to steer clear of the “fiscal cliff,” the scheduled tax increases and spending cuts next month, may hurt investor confidence (see link here).
As such, correct pricing is still always the key to selling any listing. Location, condition and price will always be the cornerstone of the real estate industry.
More of Door County's shadow inventory will be released from January through April. Sheriff sales and auctions appear to be on the decline. Buyers should act quickly in early 2013 to get the best rates and check new listings and price reductions regularly.
However, the prediction is still for slowly rising prices in 2013. Once consumer confidence gets past January, low interest rates should hold their own to spur on the slow housing recovery. The news is great for Sellers--2013 home prices to rise.