The Real Estate Market in December 2012
Real Estate Market in December 2012
Real Estate professionals and property appraisers like Abbe Edelman are keeping a close eye on the housing market. All indications are that it is still in recovery mode although it is a slow one. Housing reports are easing the concerns about the market but everyone is taking a deep breath and hesitatingly hoping the trend of improvement continues. Property appraisers carefully consider current trends in the housing market since determining house value includes comparative values of similar properties. In order to assign a fair market value to a piece of real estate, a property appraiser must be knowledgeable of similar properties and their current price range.
December 2012 Housing Market Update
Even though the real estate market in the US is not fully in recovery mode, it is showing signs that it continues to slowly climb out of the slump it was in previously. One of the primary reasons that recovery continues its slow movement is that lenders retain very strict and tight credit standards. There are also millions of homeowners who are in a stage of either default or foreclosure. There are still many homeowners who owe more on their home than what it is worth at the present market value, which is assigned to a home by a property appraiser. Most experts agree that the economy continues to grow stronger and that due to its strengthening the housing market will experience growth and gain strength as well. However, real estate professionals will continue to monitor the market as they realize that the economy is capable of weakening again in which case the housing market would suffer a relapse.
Can the Federal Housing Administration help?
The Federal Housing Administration has already announced that they are still expecting a substantial amount of delinquencies. Because of the large quantity of loans in delinquency, the FHA may need to tap into its reserve funds for the first time in the 78 years it’s been in existence. If the reserve funds are exhausted, the FHA would have to rely on other funds which come at the expense of taxpayers. If this type of government bailout should occur the economy could weaken in response. Whether or not this will be necessary will not be known until February of 2013.
Is it the Right Time to Buy?
The present state of the real estate market could make it the best time to buy a home since the interest rates on mortgages are at an all time low. It could be the very best time to purchase a home for those who have an above average credit rating. But it is important to note that because of the huge number of homes currently in foreclosure or default, mortgage companies are holding to some very stringent guidelines when it comes to dispersing loans. It is highly unlikely that these low interest rates will continue depending on the fluctuations of the economy in the coming weeks.
House Sales Still Up
An average of 12 percent in housing sales was reported across the US in November 2012. Many areas had as little as 8 percent growth and other areas as much as 22 percent. When compared to the numbers from this time last year this is still a noticeable rate of growth. There are a few influencing factors which helps create this growth. There is an increase in both jobs and household income which helps to improve the overall economy. FHA funding for borrowers with a low income and the lowered cost of credit are playing a role in helping the economy as well. When the economy is healthy, this is reflected in the housing market. With the home values staying inside affordable levels for most consumers it will help encourage a healthy rebound in the real estate market.
The Outlook
One of the most difficult factors which is blocking a quicker recovery is a severe inventory shortage. Right now even with possible tax increases and a looming “fiscal cliff” it seems that the market is holding its own. Low inventories cannot be remedied overnight but in spite of this fact the housing market is expected to continue making a recovery.
December 2012 Housing Market Update
Even though the real estate market in the US is not fully in recovery mode, it is showing signs that it continues to slowly climb out of the slump it was in previously. One of the primary reasons that recovery continues its slow movement is that lenders retain very strict and tight credit standards. There are also millions of homeowners who are in a stage of either default or foreclosure. There are still many homeowners who owe more on their home than what it is worth at the present market value, which is assigned to a home by a property appraiser. Most experts agree that the economy continues to grow stronger and that due to its strengthening the housing market will experience growth and gain strength as well. However, real estate professionals will continue to monitor the market as they realize that the economy is capable of weakening again in which case the housing market would suffer a relapse.
Can the Federal Housing Administration help?
The Federal Housing Administration has already announced that they are still expecting a substantial amount of delinquencies. Because of the large quantity of loans in delinquency, the FHA may need to tap into its reserve funds for the first time in the 78 years it’s been in existence. If the reserve funds are exhausted, the FHA would have to rely on other funds which come at the expense of taxpayers. If this type of government bailout should occur the economy could weaken in response. Whether or not this will be necessary will not be known until February of 2013.
Is it the Right Time to Buy?
The present state of the real estate market could make it the best time to buy a home since the interest rates on mortgages are at an all time low. It could be the very best time to purchase a home for those who have an above average credit rating. But it is important to note that because of the huge number of homes currently in foreclosure or default, mortgage companies are holding to some very stringent guidelines when it comes to dispersing loans. It is highly unlikely that these low interest rates will continue depending on the fluctuations of the economy in the coming weeks.
House Sales Still Up
An average of 12 percent in housing sales was reported across the US in November 2012. Many areas had as little as 8 percent growth and other areas as much as 22 percent. When compared to the numbers from this time last year this is still a noticeable rate of growth. There are a few influencing factors which helps create this growth. There is an increase in both jobs and household income which helps to improve the overall economy. FHA funding for borrowers with a low income and the lowered cost of credit are playing a role in helping the economy as well. When the economy is healthy, this is reflected in the housing market. With the home values staying inside affordable levels for most consumers it will help encourage a healthy rebound in the real estate market.
The Outlook
One of the most difficult factors which is blocking a quicker recovery is a severe inventory shortage. Right now even with possible tax increases and a looming “fiscal cliff” it seems that the market is holding its own. Low inventories cannot be remedied overnight but in spite of this fact the housing market is expected to continue making a recovery.