You are here: DIME Home > Real Estate > Three Reasons to Be Optimistic About Real Estate Trends for the Coming Year


Three Reasons to Be Optimistic About Real Estate Trends for the Coming Year

Just as the season of the year is subtly but surely changing for the better, there are at least three reasons to believe that, sometime in past recent months, the American real estate market may also have passed a turning point. Buyers, sellers and real estate professionals have been buffeted by storms and dark times, but there are some indications that the darkest hours have passed and brighter days in the world of real estate are returning.

Author: Sylvia Rogers
Date: Feb 14, 2013 - 2:10:55 PM


Printer FriendlyPrinter friendly page

In many ways, January is an unlovely month. It’s cold, it's dark, and all the major winter holidays are behind us. But, with a little effort, there are bright spots to be found, even at this time of year. During the month of December we passed through the shortest day and longest night of the winter. That means the days will be slowly growing longer and brighter. There are still some cold days ahead, and there will be snow and freezing rain, but those days are numbered. The trend is upwards.

Just as the season of the year is subtly but surely changing for the better, there are at least three reasons to believe that, sometime in past recent months, the American real estate market may also have passed a turning point. Buyers, sellers and real estate professionals have been buffeted by storms and dark times, but there are some indications that the darkest hours have passed and brighter days in the world of real estate are returning. Here are three reasons as to why:

Interest rates remain low:
Reason number one: Ask almost any banker or mortgage broker and they will tell you that interest rates are almost as low as they’ve been in a lifetime. To put this into perspective, ten years ago, the going rate on a 30 year fixed mortgage was about 7%. Currently, the rate is at 3.42 %. Some seasoned observers say that the rate will not go above four percent this year. Other experts give different numbers, but the basic truth remains that the Federal Reserve has given every indication that interest rates aren’t going to change very much for at least a couple of years. This isn't the best news for people who are banking their money, but it's great news for folks who plan to borrow and purchase a new home.

Foreclosure Inventory is decreasing:
Reason number two: When the real estate market began to enter its current “winter of decline,” many home owners found themselves behind on their payments. They slipped into foreclosure and the market was flooded with properties selling well below their former market price. This, of course, forced the overall value of all homes to fall.

Lender Processing Services, a national firm that keeps track of housing data, reported that, for November of 2012, the amount of foreclosure inventory (the number of foreclosed houses for sale) declined to 3.51%. This means that, as the high number of low-priced foreclosures finally work their way through the market, home prices that were artificially depressed for many months will begin to rise.

In addition to the decreasing amount of foreclosure inventory, the nation’s major reporting firms show that the market is seeing a lower number of foreclosure starts. This means that the future picture for home prices is likely to stay bright as well.

Home Price Index is rising:
Reason number three: The Home Price Index is on its way up, which is one more reason to think that brighter days might be ahead. The home price index (known as HPI for short) measures the prices of houses across the nation. According to the Federal Housing Finance Authority, which issues its numbers four times a year, the HPI for the entire country has been going up since the beginning of 2012. For the 3rd quarter of 2012, the HPI had improved by a full 4% from the same period of 2011.

As Andrew Leventis, the Principal Economist for FHFA, pointed out in the Authority’s most recent report, there are still plenty of areas of concerns regarding the housing market. Unemployment is still high, the income of Americans remains somewhat stagnant, and the world economic picture is far from certain. So, even if you are inclined to be optimistic, it is also wise to be cautious.

Brighter days ahead:
Still, even allowing for caution, it’s easy to see brighter days on the horizon. The reasons and trends described above are for the nation as a whole, but depending on where you live, the trend might be even more positive. A good example would be a small city, such as Rochester, Minnesota. Because of the presence of the world famous Mayo Clinic, Rochester has been somewhat insulated from the worst of the Real Estate winter. But even cities like Rochester haven’t had it easy. Now, however, they are seeing increases in housing inventory and the HPI trend has been positive since the second quarter of the year. And so, while (in the real estate world) it may be way too early for the beach blankets and deck chairs of summer, it wouldn’t be at all out of place to start looking for crocuses peeking through the melting snow.

Sylvia Rogers of Rochester, MN is a certified realtor with Edina Realty and specializes in assisting home buyers and homeowners interested in selling their home.



View all articles by Sylvia Rogers

Link to this article:

Code to copy: <a href="http://www.dime-co.com/real-estate/Three-Reasons-to-Be-Optimistic-About-Real-Estate-Trends-for-the-Coming-Year.shtml">Three Reasons to Be Optimistic About Real Estate Trends for the Coming Year</a>




Related Articles...

Tampa Bay Real Estate

Jul 14, 2011 - 6:00:53 PM

The Greater Tampa Association of Realtors Market Report shows a total of 1958 properties (single family homes, condos, villas, and townhomes) sold in the month of June, down only 1% from last month. However when compared to June of 2010 this represents a decline of nearly 11%. Properties less than $50,000 continue to take up the bulk of the market as investors come in to buy up these great deals. They accounted for 17.5% of sales or 342 properties. Properties priced between $200,000-$249,999 represented 9% or 173 sales. The lowest segment to move were homes priced between $800,000-$899,999 with three units sold or .15% of market share.... [Read the full story]

Where To Start When Buying A House

Jul 13, 2011 - 3:44:21 PM

On the subject of the acquisition of a brand new home, there can be a whole lot of confusion, especially if this is your very first property. Among the best possible things you are able to do for your self is to make sure that you are getting the absolute best head start. So many individuals wait till they're in the middle of the home purchase before they start to worry about their credit. Your credit score is the very first thing you want to look into before you begin taking a look at potential homes for yourself. This gives you enough time to correct any mistakes that might be found in your credit score report. If you do not find out about such errors... [Read the full story]

10 Things To Look For In A Real Estate Agent

Jun 22, 2011 - 9:19:02 AM

Whether it's your first time or fifth time, buying a home is a huge life change. Having a great real estate agent is paramount in making the purchase as easy and enjoyable as possible. So what determines a great real estate agent? This list of ten qualities shows some of the characteristics every home buyer should look for.... [Read the full story]

Toronto Lofts.

Jun 6, 2011 - 7:41:21 AM

If you have been searching for a good lofts and condos in the downtown area of Toronto, TorontoUrbanReality.com is your guide to it. The lofts listed by us in several sought-after locations in Toronto are a resource for people to check out the places which will suit them.... [Read the full story]


Newest Articles in Popular Topics:

Business & Marketing Computers & the Internet Entertainment Health & Fitness
Finding Ways To Save Money And Maximize Revenue In Business
Cooper's Golf Park Tees Off Their New Website
Fiinovation Adjudged CSR Team of the Year & Caring Company at World CSR Day
Reasons Why Kale Realty is the Best Real Estate Firm in All of Chicago
Montreal Tech Startup Kangaroo Rewards Launches Mobile Loyalty Program for Local Merchants
It is time we break out of the SEO Shelter
3 Strong Reasons You Should Start Your Own Blog
Evolve Your Career With CompTIA A+ Certification Exam
High speed VMware Backups - Powered by UltraBlaze(™) from Vembu
Things to Consider When Selecting a Domain Name for Your Website
Fling Boom "Launches" This Holiday Season
Beautiful Abstract Canvas Art is Up for Grabs
Buying Art as a Gift: Tips From an Expert
Complete Guide to the 2014 Gatlinburg Fine Arts Festival Released by Jackson Mountain Homes
Learn Blues Music Online-Alternative to Traditional Piano Lessons
Causes and Treatment of Acne
What Type Of Constipation Home Remedies Are There?
Manual Wheelchairs: Buying One
Instant Facelift with Dental Implants
Lasik Surgery Leading Correction Of Vision Issues

Home & Family

Shopping

Sports

Travel
Enhance Your Learning Experience Through Best Responsive Elearning Development Tools
Best Apps for Learning German
Esvees is Cranbourne's Elite Hair Dressing Company
Ozone Generator
Practical Tips When Choosing Gates and Gate Openers for Your Home or Business
Why Cases are Required for Mobile Phones?
Are Dealership Services Worth It?
2015 Jeep Grand Cherokee Named Must-Shop SUV for Towing from AutoTrader.com
Online Selling With An Appraisal Advantage
Macsome AudioBook Converter released New Version V2.0.4
Aditi Ashok signs off with a double
Softball Coaching: Avoid Becoming A Nattering Nabob of Negativity
Softball Coaching Tips - The Funnel Approach
Pick Up Specialized Advice on Jumping Exercises Which Are Highly Effective
Vertical Jump Training Tactics to Increase Your Athletic Performance
Tips for Choosing the Right Paris Short Lets
Hostels - the best choice for working womens and college students
Perfect holiday? Book a cruise and sail in Croatia!
Say Aloha to Your Best Vacation Ever with Kohala Coast Properties
The Perfect Guide for a Fantastic Family Trip to Kansas City

 



Follow & Share Your Favorite Video Articles

Tell a Friend About This Site



Chamber of Commerce - on the Web logo



Subscribe to the eMarket SmartsTM Newsletter in order to keep up to date with what's happening with dime-co.com, get the emails on new video articles, featured articles, and more. Your privacy is always protected. We never rent, sell or trade your private information

:
:

Service provided by GetResponse Autoresponders


Recommended Associates


Latest Articles in All Categories


Putting Up a Small Commercial Printing Business
So You Might Be Unemployed And Desire To Become A San Francisco Real Estate Investor Now
Meditation and Mindfulness: Dealing With Emotion
CPA Websites: Five Essential Ideas for Composing Convincing Articles
Set Goals In Order to Come Up With Your Action Plan
Is the Air in Your Home Safe to Breathe?
Coarse Fishing Tackle Review: The JW Young 13ft Trotter Rod
Section 1031 Exchanges For San Diego Real Estate Investors
Phoenix Real Estate Investing For Highest Possible Earnings
Legendary are the Volk Racing TE37 Wheels
Developing the Next Generation Wall Station (ChaseDesk™) for Healthcare - A Case Study
What are step down transformers?
Introducing Sharehype, the Revolutionary Tool for Online Marketers
Rewards To Shopping For Austin Real Estate On The Web
Hydroponics for Beginners



Do you write?

Would you like submit your articles and have them approved on a priority status? Find out more about how you can become a Priority author for pennies a day! Click here.

Dime-co.com Home
  • Business (9328)
  • Computers & The Internet (5740)
  • Entertainment (1348)
  • Family (958)
  • Finance (1963)
  • Health (4246)
  • Home and Living (6670)
  • Marketing (6113)
  • Shopping & Product Reviews (2624)
  • Sports (694)
  • Travel and Vacations (1689)
  • Video Articles (1)
  • Editors Pick (1)