Real Estate Trends for the New Year
Before I kick up my heels and raise my glass in a heartfelt toast to welcome in the New Year, I still have a few loose ends to tie up. And with ‘013 only a few short days away, the one in most urgent need of tying involves peeking into the future. That’s right. It’s time to put a bright shiny spotlight on the ‘what-will-happen’ in the real estate marketplace. So, as the golden sun sets on ‘012, here are some trends I see shaping the real estate landscape in the coming 365 days.
Banks Will Maintain a Mortgage Microscope
After the financial upheaval that ripped through the banking industry only a couple of years ago, banks will continue putting borrowers under a high-powered microscope to ensure they meet a new set of high lending standards. Many will apply; not all will make it.
Banks still are well-stocked with Real Estate Owned (REO) properties, but lenders likely will not flood the market with the inventory. Turning the tap all the way open likely would dilute the marketplace and force values downward, as dictated by the familiar rules of supply and demand.
Many forecasters expect the rising price of real estate to continue through the New Year. This trend could slow to a halt, and even reverse itself, should the job market remain stuck in the mud.
Thanks to surging demand, the most desirable locales are seeing housing inventories dwindle. Motivated owners will respond to the shortage by listing their homes, thereby beefing up the supply somewhat. Nevertheless, home builders are bracing themselves to fill any remaining gaps. So look for more activity on the construction front.
Would you like to learn more about these real estate market trends? Feel free to reach out in my direction. Or fire your questions and comments into the comment box below. There’s always a vacancy.
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