The results are in. 2013 brings more than eager New Year's resolutions, as after nearly six years of decreasing home prices, the housing market is finally starting on the path to recovery. And though it will still take time to get back into the boom, optimists are feeling a bit more hopeful the economy and housing market will pull through the storm. And who couldn't use a little more sunshine in their real estate? Here's why things seem to be coming up roses in 2013:
Home prices are blooming
For the year ended September 30, home prices nationwide rose by 4.9%, and the median price for existing homes jumped by almost $14,000, to $185,000, according to Clear Capital, a provider of real estate data and analysis. And Celia Chen, a housing economist at Moody's Economy believes the positive housing market trends for 2013 will become more entrenched as the economy picks up steam in the second half of the year.
Silver lining economy
Increases in economic recovery are predicted to positively affect the housing demand for the next year. Plus the high rental occupancy and rising rents from Chandler property managers are encouraging renters to move on to homeownership. As a result, Chandler AZ rentals may eventually see a decline in renters, and instead start receiving offers to buy. Molly Boesel, a senior economist at CoreLogic, a mortgage data firm reports that rising home prices may also encourage underwater homeowners may be encourage to sell and start buying again due to still low interest rates. CoreLogic also reports that 1.3 million homeowners were lifted out of negative equity between year-end 2011 and June 30, 2012, which is a great indication of things to come for 2013.
Rebuilding to recovery
Jed Kolko, chief economist for Trulia, cites the general strengthening of the job market will also positively affect the housing market. The improving job prospects could also fuel home construction and further increase demand for more housing. Though rents rose nationally, home prices are surprisingly rising faster than rental rates, according to Trulia. Kolko believes whereas ownership was typically more affordable than renting in most markets in recent years, as sales demand rises, that edge is becoming less apparent. So if the cost of a home for rent in Chandler AZ isn't that far off from the cost of owning, there's not much to stop a qualified buyer from making the leap.
The moderate increase in home prices is a good sign for 2013, but it doesn't mean this is the year of miracle growth. Standards for homeownership are still as stringent as ever, and many will still flock to Chandler, AZ rentals for a while longer before making the commitment to purchase. But at best, we can all agree that any increase in the numbers helps to fuel the cautious optimism that we all need to recover our fallen housing market.