A Look at 2013’s Real Estate Trends

A Look at 2013’s Real Estate Trends

2012 is a thing of the past, but the end of the year brought good news with regard to the real estate industry. And the general mood is a good one. When asked about how home prices in their local market might rise as part of a survey by Trulia last summer, 61% of respondents said they believe prices will rise in 2013, while 58% believe prices will take 10 years or less to return to pre-recession peaks. Additionally, 80% of renters said they plan to buy a home someday.

As 2013 gets underway, here’s a look at the real estate trends that have people talking this year!

Rising home prices: With inventory levels suppressed around the country, prices are going up. This trend is expected to continue in 2013.

Rents Rising: So many young people have been waiting for the real estate market to return to a healthy state, which drives up rent prices. There’s a pent-up demand for rentals, so finding that perfect place is going to be a challenge this year.

Reduced Foreclosure Bargains: Has the foreclosure ship sailed? Perhaps. Sales of foreclosed upon homes were down 28% from March 2011 due in part to the Federal Housing Finance Agency (FHFA), the Federal Deposit Insurance Corporation, and banks who have been bulk-selling foreclosed homes to purchasers who agree to work with the original borrowers rather than simply foreclosing.

More Short Sales: More banks are agreeing to go this route instead of proceeding with the foreclosure process, which is expensive and time-consuming foreclosure.

Increase in First-Time Buyers: Growth in demand for single-family homes this year is expected to be a driver by first-time buyers. According to an NAR survey of buyers and sellers released in November 2012, 39% of borrowers were first-time homebuyers, an increase of 37% from their 2011 survey.