Happy New Year!
Let’s talk about the housing market for 2013. In 2012, we saw an incredible comeback in the housing market, but 2013 will be even better. I would like to share some predictions and indicators for the 2013 housing market.
- We will see a much more even playing field between buyers and sellers. Wild swings in either direction are never good, and now that sellers feel more confident, we will see a more robust inventory of available homes.
- Interest rates according to the Federal reserve are expected to stay low through 2015. Average interest rates hover around 3.65% but are currently around 3.25%
- A better indicator of the health of the housing market is the rate of jobs growth. We are seeing the jobs numbers slowly improve.
- The delinquency rate (late house payments) which indicate troubled buyers headed for foreclosure are expected to continue but at a much slower rate. Fewer foreclosures means more confident sellers and buyers.
- First-time homebuyers have been hit hard. The job market for young workers has been extremely harsh, even more than the overall job pool of people. In addition, lending practices have tightened to the point of exclusion for young buyers. However, the job numbers specifically for the young have gotten better and continue to improve, and lending has softened a bit. In addition, young buyers are learning and adjusting to the new climate of lending and beating it at its own game.
- Charlotte’s location makes it an ideal spot to live, helping the housing market even more! It’s perfectly located between the mountains and the beach, and it’s surrounded by lakes. That’s not even to mention the quaint towns in the area, and the major corporations and sports teams that call Charlotte home. Plus, for a city of its size (it’s the 21st largest city in the U.S. and growing rapidly), Charlotte is still quite affordable.
Folks, we have weathered the storm. We are all a little battle-fatigued, but we have seen the worst and are smarter and more house-savvy because of it. As we look forward to the year ahead, it’s good and getting better.
Image: WCNC-NBC Charlotte