February 1st, 2013
Several housing market analyses are pointing to the same theory: the residential real estate recovery is expected to continue in 2013.
A compilation of data from market research firm Five Star Equities found that homebuilders benefited from rising prices and smaller housing inventories, both of which led to an increased demand for new and updated homes. Meanwhile, separate data from CoreLogic reveals that rising home prices have been a crucial and positive element that has influenced the housing market.
One industry expert acknowledged two key housing factors will keep buyers entering the market and sellers putting properties up for sale.
“We have very low mortgage rates. We have good affordable house prices. And they seem to be rebounding, so that fear of buying a home and seeing it fall in value has disappeared. And we have a lot of pent-up demand,” David Crowe, chief economist with the National Association of Homebuilders, told Five Star Equities. “We have people who have been waiting for two or three or more years to see those market conditions improve, and now they’re taking advantage of that.”
Price gains have helped many existing homeowners get out from under negative equity, and prompted many prospective buyers to flock to the market while prices are still affordable. In addition, sellers who were discouraged from putting homes on the market due to lowered pricing are now unloading their properties at a faster rate. As a result of these factors, mortgage consultants are expecting to experience an uptick in business in 2013.