1. There’s greater optimism about increasing home values.
More real estate professionals are optimistic about the direction of home prices, according to a fourth-quarter survey by HomeGain of more than 200 practitioners and brokers.
Sixty-five percent of real estate professionals say they expect home values to rise in the next six months, up from 51 percent in the previous quarter. In the fourth quarter of 2011, only 15 percent of practitioners said they expected home prices to rise.
2. More new households are forming.
Nothaft is forecasting a net growth of 1.2 to 1.25 million new households in 2013 that will provide a big boost to housing starts next year. That expected growth also will likely drive down apartment vacancy rates to 10-year lows and outpace the boom in new apartment construction, Nothaft says.
Unemployment is expected to improve slightly in 2013 and the job and income gains will help jump-start more household formation, according to Nothaft. Also, more adult children who took up residence in their parents' homes are expected to move out next year, helping to increase household formation.
3. Home shoppers are feeling a greater sense of urgency.
Home shoppers will likely have more urgency in the new year, wanting to buy before home prices rise even more.
4. Home ownership remains a goal of members of the Millennial generation.
5. Foreclosure starts are falling to pre-housing-bust levels.
6. Interest rates should remain low through next year’s selling season.
7. Loan demand for home purchases is climbing.
8. More Americans say it’s a good time to sell.
More Americans are growing confident about selling, with the share of those who say now is a good time to sell rising 5 percentage points in November to 23 percent and reaching its highest level since Fannie Mae started its survey in June 2010.
9. The number of improving housing markets is going up.
10. Job creation is expected to provide a much-needed boost to the commercial sector.
11. Housing starts are picking up as builder confidence increases.
12. As housing values rise and equity returns, fewer home owners are underwater.
During the second quarter, nearly one million home owners were able to emerge from being “underwater” on their mortgage due to rising prices, according to a new report by Zillow.
Home owners who owe more on their home than it is currently worth dropped to 30.9 percent in the second quarter compared to 31.4 percent three months prior.
13. Real estate is contributing to an overall economic recovery.
As in any real estate market, there will be challenges next year and the year after that ..... but it's looking better than it has for a long time. Whether you're looking to buy or sell your home in the Desert, call me.
