It's that time of year when experts in the housing industry start coming out with their opinions on which way 2013 home values are headed for the year. However, with no crystal ball your guess may be as good as mine as even experts are disagreeing.
For first time home buyers, historic low mortgage rates and affordable home values are in large part responsible for the 6 month increase in home values as reported by the S&P Case/Shiller Home Price Indicies to close out 2012.
Even with gains in home values over the past 6 months, Robert Shiller still doesn't believe we are out of the woodworks just yet. He cliams that consumers are still leary about the housing market and home values and adding that a reduced number in foreclosures has played a large part into the recent influx in home values.
On the other hand, Frank Nothaft, Vice President and Chief Economist with Freddie Mac believes mortgage rates are going to remain at or near their historic lows which will help fuel home purchases and will result in an increase for 2013 home values.
With housing being local, im sure there are some markets out there that will see an increase in home values throughout 2013 and others that may not fair so well.
My local housing market in Minneapolis, MN did experience a housing bust but not nearly as bad as other parts of the country. Economic reports for the region also show a strong economy leaving me to believe that 2013 home values in Minneaoplis will continue their increase throughout much of the year.
Other markets such as Phoenix, AZ has see a record jump in home values over the past 6 months leaving many economist wondering if home values have increased at a pace that may not be sustainable throughout the year.
How do 2013 home values in your are look and how do you think your market will react throughout 2013? Everybody has their own opinion and nobody is right until the end of the year.