What to Expect In 2013

 

Local home prices rebounded last year and are expected to continue the upward trajectory in 2013. Our local market saw median home prices increasing to above the record prices of the 2007 recession, shattering expert predictions at that time that the real estate market would never look the same.

Home sellers again will be in the driver’s seat with bidding wars a common occurrence due to pent-up demand and low inventory. While homes will sell more this year, they still have to be priced right.

Here's a rundown of what to expect from the market:

1- Increasing home prices will bring reluctant homeowners off the sidelines.

2- Expect home prices to jump at least 6% this year.

3- The Federal Reserve has held interest rates steady at near-record lows over the last several years in an effort to entice buyers into the market, and experts are not expecting significant jumps in rates this year. Rates could move modestly higher this year to around 4% but still be among the lowest in a generation.

4-The Consumer Financial Protection Bureau issued new qualified mortgage standards last January that detail criteria lenders must use to determine if a borrower qualifies for a loan. Experts expect more mortgage rules to be handed down this year to help prevent reckless lending that led to the meltdown.

5- Buyers should start the mortgage lending process at least one month before they plan to start seriously looking because experts expect the process to take longer under the  new lending standards.

 6- House hunters should be ready to move quickly if they find the right house as inventory is expected to remain at low levels throughout the year.