A Look Ahead: The Housing Market for the Rest of 2013

As we surge headlong into the last weeks of summer, it’s a good time to take a crystal ball view of what’s ahead in the housing market for the remainder of 2013.  Since the first of the year, consumers have experienced tight housing inventory; surging sales; and, home prices bumping upwards. What can we expect in the coming months?

Home Prices Aren’t So High

While it seems pretty certain that home pricing has skyrocketed, we must remember that they’re rising up from sub-basement levels. That said most economists will agree that prices will continue to rise in the 2nd half of the year.

Is That Another “FOR SALE” Sign I’m Seeing?

More home builders are building and more sellers are jumping off the fence to sell. The wait for more inventory is definitely about to end as new construction rolls out in the coming months and homeowners finally see a compelling reason to sell: more market value in their homes.

Did You Say Eighteen Offers?

Yup, those offers that buyers have submitted had a lot of company on the negotiating table with multiple bids coming in fast and furious earlier in the spring. The bidding war activity has quieted down some due to the fact that both buyers and sellers are vacationing right now. We do expect an uptick in housing activity in the weeks and months ahead but, with more houses on the market, there will be less competition to buy.

Rising Mortgage Rates Might Be Good News for Some

Rising rates have been directly attributed to the rush of buyers entering the home-buying scene. Their desire to lock in the lower rates adds fuel to the home-buying fire. That said increased rates might actually reduce the number of refinancings thus making it easier to borrow money. As rates rise, refinancing requests drop. Banks then need to hone in on home buyers in order to make up for the lost refi revenue. And the best way to make more money is to ease up on lending restrictions.

Bottom line? Be prepared to make a move when you’re ready to sell and/or buy. If your crystal ball says “It’s time to make a move!” it just might be on to something since circumstances haven’t been this positive for many years.