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Homebuyers More Confident in Improving Housing Market Factors
|Together, news of positive housing market factors including growing home prices and the overall economic recovery have likely made consumers more optimistic when it comes to making the investment. A new report from Redfin shows more Americans are confident in the housing market, indicating 2013 could post major improvements.
Thursday, December 27th, 2012
Together, news of positive housing market factors including growing home prices and the overall economic recovery have likely made consumers more optimistic when it comes to making the investment. A new report from Redfin shows more Americans are confident in the housing market, indicating 2013 could post major improvements.
According to the Redfin Real-Time Homebuyer Survey, 71 percent of buyers said home prices will increase in their area over the next 12 months. This is a significant improvement from the previous quarter when only 61 percent of respondents agreed. In the first quarter of the year, only 34 percent of those surveyed expected home prices to rise. Higher home prices should be seen as a positive indication of a bettering housing market, though 33 percent of buyers questioned said higher home prices is concerning, up from 23 percent who said the same in the quarter before.
Rising prices may be proof of a stabilizing market, but low mortgage rates continue to offer buyers some affordability when making the investment. Data from the survey shows 57 percent of respondents said low interest rates should prompt more buying activity, though this is down from both the first and second quarters of the year. However, as averages continue to linger near record-low levels, they remain the most common motivator for those purchasing properties, noted Redfin.
One other concern regarding home buying is a lower inventory of properties for sale. With less homes on the market, buyers may not have the variety offered during the busier seasons characteristic of the first and second quarter of the year. Fifty-nine percent noted a low inventory as a top concern, nearly matching levels reported in the last quarter. More data reveals that 37 percent of those surveyed were first-time buyers, down from the last quarter when 48 percent of respondents were making the investment for the first time. Additionally, 5 percent are worried about the fiscal cliff, which could have a negative effect on the Mortgage Interest Deduction.
A recent report from Freddie Mac supports projections of further improvements throughout 2013, as mortgage rates for fixed-rate options are predicted to stay below 4 percent while home prices will likely grow. Redfin expects the first month of the new year to be a busy time for buying, though the inventory will still be low following the holiday season.
National real estate trends have a major impact on the real estate market on a daily basis. Keeping up-to-date on the latest news and notes posted by GL Homes can make sure those looking for South Florida homes know exactly how the current market will affect them.