Five Real Estate Trends for 2012

Five Real Estate Trends for 2012

1. Buyers Will Return—In 2011, a lack of consumer confidence in the economy dramatically impacted the housing market. Many buyers were fearful to purchase any big ticket item. As 2011 came to an end, consumer confidence began to return and sales increased. Economic conditions and consumer sentiment will continue to improve during this election year.

2. Foreclosures Will Increase—The ‘shadow inventory’ of foreclosures will finally hit the market. Distressed properties sell at discounted prices. But, remember, big bargains require a lot of work and many buyers are not willing to invest the time and money for discounted properties. However, they will impact the housing values of the non-distressed homes in the area.

3. Prices Will Soften—As more foreclosed homes come to market, there will be a slight downward pressure on the values of houses; however, home-price declines may be limited to a 3-5% and 2012 will be the year that prices finally stabilize—setting the stage for small gains in 2013. More desirable neighborhoods will be the first to stabilize. In November, 2011, Broward County’s median home price was $195,600—an 18% increase from a year ago!

4. Short Sales Will Increase—The banks appear to be taking more preventative measures to ease the short sale requirements, which will keep these homes out of the foreclosure process.

5. Interest Rates Will Remain Low—Until the economy gets back on track, interest rates will remain low. If you have the money or can borrow the money, homes are affordable!

Th The New Year message is to remain positive.