This week Welcome Home is happy to share the Top 10 2013 predictions from a real estate industry leader. His predictions for 2012 where found to be quite accurate. Please enjoy the predictions below for a 2013 forecast that continues to look at progress in the future of the real estate market.
The national housing market made a strong rebound in 2012 and that positive trend is expected to continue in the new year, according to RE/MAX co-founder and chairman Dave Liniger. His 2013 Top 10 predictions follow:
"Although interest rates have been at historic lows, they have not been the driving force behind this recovery," said Liniger. "There's no single factor driving this market; it's been a combination of low prices, low inventory, improving consumer confidence and a huge pent-up demand. That was true throughout 2012 and will continue to be true in 2013."
Many consumers now understand what real estate professionals have known for the last year, a number of related factors have combined to create a favorable opportunity for homebuyers and investors to purchase residential properties.
"The 2013 situation is so unique that those of us who've worked in real estate for many years have never seen opportunities like this," Liniger added.
Dave Liniger's Top 10
real estate predictions
1. More homebuyers and sellers come back to the market.
2. Homes sales will rise by 6-7 percent and prices rise by 3-4 percent.
3. The inventory of homes for sale will hit a bottom.
4. Higher priced homes begin to sell.
5. Distressed property numbers continue to fall.
6. Shadow inventory continues to fall.
7. The number of short-sale closings will rise to a peak.
8. Record-low mortgage rates rise slightly by year-end.
9. Lending remains tight.
10. Home affordability remains the best in years.
While Liniger feels that 2013 could be the best year in real estate in many years, he admits that the recovery is fragile and still faces some obstacles. He notes that tight lending, government regulation and the overall economy still have the potential to negatively impact housing.
However, Liniger also believes that "if housing can stay on the road to recovery, it's possible that it can pull the rest of the economy along with it."
In recent years, Liniger has been a highly vocal advocate for the home buying and selling consumer, and real estate professionals. He has supported reforms aimed at helping troubled homeowners avoid foreclosure and streamlining the short-sale process.
In October, his open letter to presidential candidates Barack Obama and Mitt Romney called for a continuation of mortgage interest deductions, an extension of the Debt Relief Act and more reasonable regulations on mortgage lending.
The fiscal cliff agreement left the deductions mostly intact and extended the Debt Relief Act until the end of 2013. These moves support the American dream of home ownership, help distressed families avoid foreclosure and promote a sustainable housing recovery.
Butch Elich is a Realtor with RE/MAX Properties of the Summit with over 20 years of experience to share with buyers and sellers from around world. Visit him at www.Elich.com or call (800) 806-9518 with any real estate or mountain community questions.