Economists say housing momentum will continue next year

December 26th, 2012

Housing momentum is expected to remain consistent in 2013.

A panel of more than 100 forecasters predict that positive housing trends experienced in 2012 will continue in 2013, which may spark increased activity for the mortgage sector.

According to the December 2012 Zillow Home Price Expectations Survey, home prices are expected to rise 3.1 percent in 2013 following a 4.6 percent increase in 2012. Rising home prices have been a contributing factor to economic recovery – instilling confidence as more buyers submit applications through mortgage service companies.

“An organic recovery in the housing market really took hold in the latter half of 2012, and this improvement is echoed in some of the most optimistic price projections we’ve seen in years from this group,” said Zillow chief economist Stan Humphries. “Record levels of affordability and an improving overall economic picture have really helped buoy the market and have us well positioned for continued growth, albeit slightly slower, in 2013 and beyond.”

Many consumers that have been on the sidelines have returned to the mortgage market and are expected to continue to do so in droves. Studies have demonstrated that homeownership is more affordable than renting in nearly every top metropolitan area in the country.