David Liniger, co-founder of RE?MAX, recently shared his top ten predictions for the housing market in 2013. Last year, his predictions were 85% accurate.
Keep in mind that this is a take on the national picture and that local markets, especially unique ones like the one in my community of Maricopa Arizona, are affected differently so all of these predictions may not apply. Regardless, it is an interesting outlook for 2013 which he feels could be the best market in a long time. We can only hope!
Here are his predictions:
1. With more pent up demand, more homebuyers and sellers are expected to enter the market.
2. Homes sales will rise by 6-7 percent, and prices will rise by 3-4 percent.
3. The inventory of homes for sale will hit a bottom. More homes will be on the market from homeowners whose equity has increased and from lenders who are foreclosing more efficiently.
4. Higher priced homes will begin to sell.
5. Distressed property numbers will bottom out. “We will be dealing with a significant number of distressed properties for a few more years, but the numbers should start retreating to more traiditonal levels in 2013,” Liniger said.
6. Shadow inventory will continue to fall. Liniger explained shadow inventory has already fallen 12 percent from 2011.
7. The number of short sale closings will rise to a peak.
8. Record low mortgage rates will rise slightly by year-end. Although they will remain near their historic lows, Liniger says rates may start to inch up towards the end of year.
9. Lending will remain tight was Liniger’s one negative prediction. “Due to increased government regulation and the soon to be established provisions of Dodd-Frank, lenders will be compelled to keep standards tight,” he said.
10. Home affordability will remain the best in years, bringing more buyers into the market.
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