According to financial experts and players in the housing market, 2013 will be a good year for those looking to become homeowners. For those who have been sitting on the sidelines watching and waiting to see how things unravel, the time to make a move to become a first time home buyer is now for several reason.
Why it’s time
One is that for the past three months, housing starts have been climbing upwards. At the moment, the number of units stand at over 715,000 units annually. This is lower than the 2.1 million starts of 2005 but things are certainly moving in the right direction.
Also, according to the Federal Housing Finance Agency, property values rose by 0.3% month on month and 0.4% year over in the first quarter of 2012. This is the first positive trend reading that has been seen since 2007.
Also, foreclosures which were at an all time high are coming down. In the first quarter of 2012, foreclosures in the country fell to the lowest levels seen since 2007. Plus Fannie Mae has dropped by at least 18% in the first quarter of 2012.
What it means
What the trends over the recent past clearly show that the US housing market is on a steady recovery path, which is great if you want to be a first time home buyer in 2013. Home values and prices have been rising in most metro areas in the US. In fact, there have been shorts in the inventory with demand surpassing supply. This has led to some intense bidding wars in some areas.
The time is now
What this simply means is that anyone planning to buy a house should be getting ready to do so now. Going onto 2013, a lot of effort will be put into sustaining the recovery trend and making it even stronger.
Posted by Dan Moyle of AmeriFirst Home Mortgage, November 2012