Real Estate Today
Optimism continues to build in the housing market. Many economic indicators show that we are on the mend and entering a recovery mode. Housing experts and economists are declaring that this year we will see stabilization in the housing market.
EXISTING HOMES: Existing home sales are expected to increase by 12% this year. “Moody Analytics” predicts a very bright future in housing, pending sales (those under contract and haven’t closed) are at the highest level in the last 20 months.
NEW CONSTRUCTION: Last year’s new home market was considered to be the worst since they have been keeping records. But it is expected to bounce back this year. New home sales and starts were already showing a rebound in the last few months. Moody is predicting that new housing starts will increase 37% this year and new home sales will soar by 74%, a whooping increase in anybody’s book.
HOUSING STOCKS: With increases like this, it stands to reason that investors are excited about the possibility of a continued rebound and are turning to home builder stocks for their portfolios. USA Today reports that these stocks have recently outperformed the broader stock market, and S&P 1500 homebuilding index has increase 38% since mid-October.
CONSUMER CONFIDENCE: With mortgage rates at historic lows (under four-percent) and housing affordability high, about 71 % of Americans in a recent survey are optimistic about buying a home. Home prices will continue to rise during the coming year according to surveys conducted by Fannie Mae in their December 2011 National Housing Survey.
All this is good news for home owners wanting to sell, or buyers wanting to buy. My advice to those wanting to be active in the marketplace is to start now by doing your research with the aid of a competent professional Realtor. Get in and see a mortgage lender. They are anxious to help you. Winter is usually a slower time in the housing market. This would be a good time to pursue that housing goal for this new year. Until next week, keep smiling. Email your questions to email@example.com.