LifeByTheBeach

Housing Market Recovery Will Continue for 2012

Posted on: November 15, 2011

According to the National Association of Realtors chief economist Lawrence Yun, gradual increases are expected in home sales and home prices over the next two years.

For 2012, Yun predicts that home sales will rise 4%, and home prices will rise 2%. Additionally for 2012, Yun expects rents to rise 3%, and he says that mortgage rates could rise to 4.5%. Looking even further, NAR’s chief economist predicts that home sales will grow by 6%, and prices will increase by 3% for 2013. He also expects rents to rise by 3.5% and mortgage rates to go up to 4.8% in 2013.

Yun credits the tough mortgage qualifying conditions for this year’s slower sales, however, he explains that “there is a sizeable pent-up demand based on population growth, employment levels and a doubling-up phenomenon that can’t continue indefinitely. This demand could quickly stimulate the market when conditions improve.” Further, Yun says, “Housing affordability conditions, based on the relationship between median home prices, mortgage interest rates, and median family income, have been at a record high this year. Very favorable affordability conditions will dominate next year as well, which will probably be the second best year on record dating back to 1970. Our hope is that credit restrictions will ease and allow more home buyers to take advantage of current opportunities.”

Based on Yun’s predictions, the housing market may see a 10% improvement in sales, and a 5% improvement in prices over the next two years. So, if you are thinking about buying your first home on the Space Coast, or looking for an investment property in Brevard County, FL, now is the time to jump on it! There couldn’t be a better time to buy – home prices are still low, and interest rates are at historical lows. Feel free to call or email me and we can chat about the Brevard County real estate market and all that is available here on the beautiful Space Coast!

Whether you are buying or selling, it would be my pleasure to represent you! 

Please call or email me today to review your real estate needs!

Contact me, Carolyn Smith at:

Phone: 321.271.0870

Email: CarolynSmithRealtor@gmail.com

http://www.CarolynSmithRealtor.com

SRES – Certified Seniors Real Estate Specialist

CDPE – Certified Distressed Property Expert

2 Responses to "Housing Market Recovery Will Continue for 2012"

I really like your site Carolyn. Keep up the good work!

Thanks so much Gloria! Just checked out your site and it is really great as well. Following you . . .

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Your Coastal Estate Team: Carolyn Smith, Realtor & Bridget Sentz, Realtor

"Your Coastal Estate Team"

Contact Carolyn at:

RE/MAX Olympic Realty
445 Fifth Avenue
Indialantic, FL 32903

Direct: 321.271.0870
Fax: 321.574.3044

Email: CarolynSmithRealtor@gmail.com

Contact Bridget at:

RE/MAX Olympic Realty
445 Fifth Avenue
Indialantic, FL 32903

Cell: 321.537.5720
Office: 321.952.4000

Email: BridgetSentz@gmail.com

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