Wednesday, February 20, 2013

Frank Del Rio Reveals His Top Five Real Estate Predictions for 2013

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We have seen a lot of changes on the real estate horizon lately and it’s been a rollercoaster ride for many in our region. But now, as we fast approach the first quarter of 2013, things are looking good. Here are my top five predictions for the coming year and why I feel they may come true.

Home Prices Expected to Rise

Though we may not see this trend evenly spread throughout our entire region, for the most part many neighborhoods will experience a rise in home prices. This is in part due to the number of cash buyers plus buyers that are buying as a result of today’s very low interest rates. Both these factors will help to propel the upswing in our housing prices.

New Construction Makes a Comeback

For years now we have not been seeing a lot of new builds in the area. This is because of the higher cost of materials versus the lower cost of labor and also the sheer magnitude of resale inventory on the market. Today, the situation seems to be changing rapidly. As we move further into 2013 I expect to see a lot more building take place. With banks willing to lend money again, buyers are finally jumping off the fence to build their dream homes.

Short Sales Will Take Over the Distressed Property Market

Gone will be the days of excessive foreclosures on the market, rather now we will see a lot more short sales taking place. The expense involved for a bank to litigate a repossessed home is astronomical and banks prefer to avoid owning homes. The short sale process allows for a win-win situation for all plus the financial ramifications of doing a short sale can once again be avoided with the extension of the Mortgage Debt Forgiveness Relief Act.

Inventory Will Remain At Its Lowest In Several Years
With reduced inventory, comes heightened buyer demand and of course the more demand there is the higher sellers can expect to yield on the sale of their homes. Sellers in our area are finally able to enjoy being in control, particularly for those that have homes in great condition and in great locations.

Sellers Will Reap the Benefits of Multiple Offers and Price Wars

Along with that reduced inventory will be more of a strained situation for buyers, resulting in multiple offers and price wars. Homes that are priced right to begin with, especially homes that are staged properly and located in desirable areas will almost immediately enjoy more attention than others in the area.
Keep in mind this is just the beginning of our spring season in real estate. As we move closer to the second quarter we can expect even more activity. With the threat of prices rising and uncertainty as to just how long our historically low interest rates will last – buyers are very eager.

If you would like more information on these points or if you prefer a customized consultation regarding real estate in your desired areas, contact us today. We look forward to helping you successfully achieve your real estate goals.