03 Jan Will the Real 2012 Housing Market Prediction Please Stand Up…
When you search for housing market predictions 2012 on Google, it returns roughly 1,650,000 results. As you start scrolling through these well-respected sites and their corresponding articles, you are left scratching your head and wondering what to believe. From gloom and doom naysayers to cheery hopefuls saying the worst is behind us, experts are heard quoting a spectrum of possible outcomes.
CBS News strongly feels that the nation’s real estate balance sheet is slowly turning around.
To further quote the positive article, the official unemployment rate dropped to 8.6 percent, even as the labor participation rate dropped to about 62 percent. But the better news is that the U-6, which is the broadest measure of unemployment, fell below 16 percent for the first time since the Great Recession started.
Of course turning around the housing market begins with well-paying jobs so that people can once again afford a mortgage and insurance premiums.
Fannie Mae chief economist feels that people will not undertake the financial obligation of homeownership until they are positive their personal financial situations are on the upswing. But according to their November National Housing Survey homeowners do believe their home value will rise at least 0.2 percent over the next year.
Another positive sign is that interest rates continue to hover at a historic low level, saving homeowners who can refinance hundreds or thousands of dollars per year.
New construction still leads the industry in the slow bounce back. There are even some markets where existing home sales are picking up as well, which benefits agents, appraisers, attorneys, and mortgage lenders.
CBS News also notes that the biggest indication that the housing market might begin to normalize is that the number of homeowners who are seriously delinquent in their loan payments is shrinking.
Does this mean the market will magically shift to normal in 2012? No, but hope remains that it will be a better year overall for real estate.
What do you think? Which news source resonates best with your own personal and professional outlook of 2012?