US Market Trends for the Remainder of 2013
As we have seen for the past two years, the US housing recovery is in full swing with no signs of stopping. But, experts have voiced opinions about a possible housing bubble and mortgage rates are continuing to rise. So, what does this mean for the remainder of 2013?
The good news is that mortgage rates will slow down their ascent. They will continue to rise, but they will slow down. This is proving to be a major concern for prospective buyers, contributing to slowed transaction figures for the end of the second quarter. This won't, however, eliminate affordability in the US market, as we are still seeing considerably lower, than the previously inflated market, prices.
Experts are projecting that we will continue to see rising values and a normalizing market, through 2013. Some figures are showing anywhere from 6% to 12% increases over 2012 figures, based on supply.
Speaking of supply, the extremely low inventories will also let up. Despite the restrictions on available properties, there is hope on the horizon. We are seeing inventories increase, after dipping to their lowest levels in 12 years, earlier this year. As new construction fuels up so, too, will sellers in the coming months. Projections call for rising inventories with continued price appreciation, regardless of supply. New construction projects will boost local and national economies with jobs.
High rent prices are proving that ownership is more affordable than rentals, in the long term. Experts are seeing that it is more than one-third cheaper to buy than it is to rent. This will remain true until mortgage rates reach 10.5%, which is not expected for several years.
What do you think of this 2013 projected outlook? Are seeing any of these signs in your marketplace? Does this information change your outlook on the market in your area?
Please let us know your thoughts in the comment section below.