Coasting to Real Estate Success
If you’re buying or selling real estate in Los Angeles, San Francisco, or The Big Apple, count yourselves lucky. Extremely lucky. The market is bouncing back nicely in those bustling coastal vicinities. Unfortunately, the same upbeat headlines are not making the news in most of the remaining portions of the U.S. In fact, the vast majority of the country can, at best, expect mixed results in 2013. Looming on the horizon of this widespread area are: a rising number of foreclosures, microscopic advances in home prices, further regulation, and basement-level interest rates.
Of course, the gray clouds hanging over the real estate market are dissipating nationwide. But at a snail’s pace. The reason for the sluggish advance? Numero uno is fear. Understandably, many people are afraid that ongoing governmental disagreements will trigger another phase of economic slippage. That, in turn, would knock the crawling real estate market well back behind the starting gate.
What will happen in the coming year definitely is uncertain, especially for those outside the big three coastal regions. For those of you who find solace in expert opinion, here’s what many real estate honchos are forecasting for 2013.
Soft Sales. Depressed home prices (down 25% from record highs) combined with soft sales will keep the market in a winter chill throughout much of the nation. Case in point is Chicago. Home sales in that toddling town are 20% below their ’06 high water mark. More employment stability and buyer confidence is needed to jolt the national market back into a brisk gallop.
Foreclosure Flow. In many quarters of the country, foreclosures will continue to blockade economic expansion. Public policy that inadvertently triggers an economic downturn will open the tap further on the foreclosure flow.
Ground Level Interest Rates. A major buyer boon will be the expected low interest rates, which should persist through ‘013 and beyond well into ‘014. Stimulus for the ground level rates will come from the Federal Reserve. The regulatory body recently announced its intention to purchase another round of mortgage-backed securities and bonds, a move that will enable more people to get loans for real estate purchases.
Would you like to learn more about real estate market trends throughout the nation? Simply drop your questions and thoughts into the comment box. Or just reach out to our team directly.
And, of course, if you’re ready to discover the latest opportunities in the Beverly Hills real estate market, I’m ready to make it happen. Call or email today.
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