Looks like we could expect great things for the housing market in 2013. According to a report from the Wall Street Journal today, home prices hit bottom in 2012 and 2013 could be the year of recovery.
Potential buyers are now faced with something they have not had to deal with for a long time, and that is: urgency. This next year will be the first time since 2006 where prices ended the previous year positively. Surveys already show that buyers’ expectations of future home prices have improved throughout the past year.
The housing market may be even stronger than current indicators are showing given the powerful shift in sentiment that price increase may bring.
James Dimon, chief executive of J.P. Morgan Chase said in an interview with CNBC last month that “Every Single Thing About Housing Is Flashing Green”. Household formation is rising, inventory is falling and affordability is at a record high.
Homeowner vacancy rates have been dropping and were down to 1.9% this fall, near the long-run average of 1.6% and down from a peak of 3% in 2008, according to Goldman Sachs. Meanwhile, rising rents are likely to encourage more renters to buy. Finally, low prices and unattractive returns on other assets have fueled enormous investor demand for housing. While investors have begun to pare back in some of the hottest markets, such as Phoenix, they’ve been on a tear in others, such as Chicago and Atlanta.
The increase in home prices could eventually encourage more sellers to put their homes on the market, which would help boost demand even further.
What does this all mean for buyers and sellers in Cobb and Paulding counties?
We have already been experiencing low inventory and as a result sellers are receiving multiple offers. My buyers no longer have a long list to choose from, but have to move fairly quickly when making a decision. Sellers are becoming more confident about getting their home under contract in a short period of time.
Planning on selling your home in 2013? We can tell you what your home is worth.
Contact Karen Smith at RE/MAX Around Atlanta. Call toll free at 866-465-2736 or complete the form below.