What was the biggest “B” of Super Bowl XLVII: Baltimore Ravens, Beyoncé or the blackout? While it’s debatable which “B” stole the show, there is no doubt in our minds that the kick-off of the 2013 real estate season is the BIGGEST part of February! The below list forecasts what is in store for this year’s post-Super Bowl real estate season.
1. Expect home prices to rise: According to Reuters, the U.S. has had the largest national increase in home prices since the middle of 2006. The last eight months of 2012 reported a steady rise in home prices, which shows a promising 6.3% increase in home prices over this time last year.
2. Look for more first-time homebuyers: In the last quarter of 2012, a NAR survey of homebuyers and home sellers showed that a whopping 39% of borrowers were first-time buyers. That is up 2% over the 37% reported this time last year.
3. Anticipate foreclosure bargains to fall: NAR also reported in early 2011, 28% of home sales were foreclosures. By the middle of 2012, that number had fallen to a mere 11% of total sales.
4. Look forward to a continued rise in new construction: It is no secret new home construction crawled to a halt in most of the country after the market crash. In its wake, the industry has only been producing about one-third of what it needs to sustain the increase in population. On a positive note, the market is changing. During the last quarter of 2012, we saw homebuilders start construction on 12.1% more homes and apartments than this same time last year, and double the activity of 2009. Further, builders are now pulling permits at a rate that has climbed to a four-year high.
5. Expect an overall increase in momentum in 2013: Aside from the statistics we’ve already seen, the chief economist for Fannie Mae, Mr. Doug Duncan was quoted as saying, “Despite unsteady macroeconomic conditions, we anticipate housing and mortgage activity to gain momentum in 2013.” Enough said.
For more information on home buying in 2013, check out our Road Map to 2013 Home Buying.