Check out these new trends to effect our local Redlands area market.
the housing market bottoming in 2012, economists and other experts are becoming
increasingly optimistic about the U.S. housing market in 2013.
Burns Real Estate Consulting: "Assuming our leaders in DC come to some sort
of agreement that keeps the economy growing and interest rates low, which seems
like the most reasonable assumption, here is what will happen,"
Investors: Investors and, yes, even flippers will continue
to grow in numbers as they realize housing is the best risk-adjusted return on
Boomerang buyers: Foreclosed homeowners, who are currently
renting homes, will come back in droves. In Phoenix, they are paying $1,300 in
rent for a home whose mortgage payment would be $1,000. That situation is not
sustainable. The Federal Housing Administration and Department of Veterans
Affairs have low down payment programs with insurance premiums that push rates
near 5.0%. Those payments are still very affordable.
Entry-level buyers: First-time homeowners, who have been
sitting on the sidelines waiting for a sign of the bottom, will hear about price
increases in their desired neighborhood and rush to become homeowners.
Move-down buyers: Empty nesters and retirees, who have
plenty of equity in their existing home, will buy a home that is more suitable
to their current lifestyle, which may or may not include adult children as well
as their aging parents.
Moveup buyers: The price appreciation that occurred in the
last year has already lifted 1 million underwater homeowners above water with
future price appreciation to lift them even more.