Residential Real Estate Predictions for 2012

2012 Residential Predictions

Residential real estate predictions for 2012 are positive, in spite of the slow pace of the economic recovery and the financial challenges and financing hurdles that many homeowners face. In fact, analysts believe that the housing market recovery has already begun and is under way. Obviously the specifics vary depending on what part of the country you’re in, but one realtor’s report makes the following predictions for the housing market in 2012, some of which make it an excellent time to buy:

1. Interest rates will continue to be low.
2. Home prices are stabilizing, and in some areas, already starting to rise.
3. More home sales in 2012.
4. Additional home inventory, largely due to increased foreclosures.
5. Roughly half of all sales will be distressed properties.
6. Short sale processes will improve, helping homeowners avoid foreclosure.
7. The rate of homeownership will continue to fall.
8. Domestic investors and foreign investors combined will buy roughly 25% of homes.
9. More buyers and sellers will rely on real estate agents.
10.  Mobile and social technologies will become more widespread in home buying and sales.

What This Means for Residential Real Estate

This list of predictions is largely positive for homeowners – both sellers and buyers – for 2012. Home buyers will have the benefit of increased inventory, which provides more options and typically better prices. Buying sooner rather than later ensures locking in a low purchase price and getting a great return on investment. Low interest rates mean new mortgages and refinances will continue to be affordable.

In short, a lot of good reasons to buy in 2012.

The downsides are that the rate of foreclosure is expected to go up in 2012 – bad for distressed home owners, but good for buyers. And the large number of investment purchases can spell both good and bad news, depending on the state of the community; in some areas, it may mean competition for a limited number of properties. On the flip side, though, it should result in rising property values and a more robust real estate market – all of which are good for the economy and good for buyers and sellers.

Mark Morrison is a local mortgage expert in MD.  You can reach Mark at xxx-xxx-xxxx. Receive FREE video content on home buying - Insider Secrets Revealed!  Find out what ONE thing you MUST do before putting a contract on a home! Get Bank Owned Properties by going HERE.  Facebook