Affordable Deals On The Housing Market Will Not Be Around For Very Long
Buyers that have their eye on home property options that are available on the housing market should consider pushing through with the acquisition because putting it off until a later date could mean missing out on their last hope of being able to get their hands on any potential bargain deals.
Home Prices That Were Down Are Expected To Go Up
Nationwide, home prices have been down by as much as 34 percent since 2006 and mortgage rates are now at their all-time lows which means that real estate in general have been at their most affordable. However, that is all soon to change as home prices are likely to level out by the third quarter of 2012 only to begin an upward tick in 2013.
The diminishing number of foreclosure properties and the consistency in job growth are among the noted factors that will contribute to the boost of the housing market. Furthermore, property buyers will find their chances of getting mortgages to improve as their credit scores improve along with overall financial recuperation.
While some believe that the housing will not be on an upward tick until 2013, there are those who believe prices will begin to soar even sooner than that as data seems to point towards a trend that indicates asking prices have already increased by as much as 1.4 percent in the first quarter of 2012 compared to the fourth quarter of 2011. As a result, home price indexes could very well report home price increases across the nation by summer this year.
As much as buyers are urged to act fast on their available real estate opportunities, there are market analysts who predict the initial price increases to be very subtle in most markets nationwide. For instance, the chief economist for PNC Financial Services has predicted a 2 percent increase in 2013 compared to 2012 while the chief economist for Fiserv predicts prices to turn in the fourth quarter of 2012 only to rise by as much as 4.2 percent until the end of the third quarter of 2013.
Foreclosure Problems: Soon To Be A Thing Of The Past?
Along with the anticipated increase in property prices, the foreclosure issue is most likely to become a thing of the past as the percentage of mortgage loans which are 90 days or more late on their payments are quickly dropping in number.
However, before market conditions level out, buyers should come prepared for a spike in the number of foreclosure properties. But the expedition process on the hundreds of thousands of foreclosure homes stuck in the system should only last a limited period of time as new guidelines have been issued in a $26 billion foreclosure settlement set after the robo-signing scandal.
The vast majority of bank-owned properties that have been entering the market from the foreclosure end of the pipeline are being purchased by investors who are looking to use these real estate properties as investments by making the necessary renovations and proceeding to renting them out to the public. Given the current scenario, even the price on foreclosure properties with the country has also experienced a relative rise.
All of these factors are sure to grant a major boost for the housing market as far as providing a good foundation for home values across the nation.
Markets which have been dealing with the foreclosure issue have even experienced a turnaround in prices. In fact, Phoenix has had an 8.4 percent increase in home prices within the first quarter of 2012 compared to prices from the fourth quarter of 2011.
According to Clear Capital, Miami has experienced an increase of 4.6 percent on a quarter-over-quarter basis while Tampa had an increase of 4.4 percent.
Demand For Mortgages Could Bolster The Rates Up
Even mortgage rates are around their all-time lows for the past six months. Average interest rates for a 30-year fixed-rate mortgage has never gone past 4.5 percent since July in 2011 but it has reached a 3.84 percent low in the first week of May of 2012.
However, as the economy continues to improve, mortgage rates are also expected to go up to rates for a 30-year fixed-rate mortgage rate of 4.5 percent towards the end of 2012 and the reason behind the rise will be the anticipated demand for loans.
While mortgage rates have been cheap for the past few months, the lending process for home purchases has been considerably slow. Nevertheless, an estimate of $415 billion worth of mortgage loans is expected in the remaining months of 2012 which will mark an increase of less than 3 percent in comparison with the previous year. But that number could double to $706 billion in 2013.
There is no doubt that buyer confidence will definitely grow as the housing market works toward stability. With all of the factors pointing up for the national housing market, buyers that have been skeptical will have every reason to set their worries aside and act while conditions are still as favorable as can be.
Yaz Morgan
One Ocean Miami Beach
