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5 Real Estate Trends to Look For in 2013


Crystal BallPredicting trends during volatile economic times in American is no easy task. However, we are going to give it our best shot. We strongly believe these are the five real estate items we should keep an eye on in 2013:

Demand for Housing Will Continue to Surge

The housing market has turned the corner and there is no reason to believe that buyer demand will not maintain momentum throughout 2013. Household formations shot up to boom-time levels in 2012 and are projected to increase at even a faster rate over the next twelve months. A lack of inventory will be more of a challenge to sales increases than will a lack of demand.

Generations X and Y Will Prove They Believe in Homeownership

Contrary to what many have hypothesized over the last few years, young adults (18-35 year olds) are just as committed to homeownership as previous generations. Recent studies have shown:

  • 43% already own a home
  • 72% see homeownership as part of their personal American Dream
  • 93% of those currently renting plan to buy a home

This, along with the increase in household formations mentioned above, makes us believe that 2013 will be the year that many of these young adults will jump into homeownership.

Prices Will Continue to Increase

Pricing of any item is determined by supply and demand. Demand for housing will remain strong throughout 2013. At the same time, the supply of homes ready for is shrinking in many parts of the country. Outside of a few states that still have challenges with large inventories of distressed properties (NY, NJ, CT, IL for example), prices will appreciate nicely.

Even in the areas that are still dealing with high percentages of foreclosures and short sales, prices will not tumble dramatically. The increase in demand will absorb much of this inventory. In these areas, prices will either flatten or perhaps soften to a small degree.

Move-Up Sellers Will Return in Great Numbers

Perhaps what many will find as the biggest surprise of 2013 will be the return of the ‘move-up’ seller. Over the last several years negative equity has prevented many of these sellers from moving up to the house of their dreams. However, with prices recovering, more and more of these sellers will realize that now may be their greatest opportunity to make the move to a lifestyle they always wanted.

With home prices expected to increase and more stringent mortgage qualifications (QR and QRM) scheduled to be announced this year, we believe that the first half of the year will bring many of these sellers/buyers to the market.

The Consumer Will Demand That Their Agent Be an Expert

Real Estate professionals who have invested the money, time and energy to truly understand what is happening and why it is happening will separate themselves from their competition and do very well this year.

Those who take that next step of learning how to simply and effectively communicate the market to their clients will be seen as experts. These industry leaders will dominate their markets.

This blog will help you with the ‘what and the why’. If you are truly committed to being recognized as an expert, go here.

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7 Responses to “5 Real Estate Trends to Look For in 2013”

  1. Philip Jawny December 27, 2012 at 3:02 pm # Reply

    Great article, thanks for posting!

  2. gayle sprague December 27, 2012 at 9:44 pm # Reply

    Excellent. I have been in Real Estate for 44 years and have been through all the ups and downs. interest rates at 18%, housing shortages, and it just goes on and on. I hope this year is the best of all

  3. JoeLoomer January 9, 2013 at 9:42 am # Reply

    "Those who take that next step of learning how to simply and effectively communicate the market to their clients will be seen as experts. These industry leaders will dominate their markets." ..... and those who don't will just leave more market share for the rest of us!

    Navy Chief, Navy Pride

  4. Country French Style real esta February 13, 2013 at 2:09 pm # Reply

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  5. corona real estate listings December 25, 2013 at 12:20 pm # Reply

    I'll immediately grab your rss feed as I can't find your e-mail subscription hyperlink or newsletter service.

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    • Steve Harney December 25, 2013 at 12:35 pm # Reply

      The email sign-up for the blog is at the top of the right column in a blue box.

  6. Real Estate Wellesley MA December 29, 2013 at 5:10 pm # Reply

    Great post. As a local real estate agent serving the Wellesley & Weston areas in Massachusetts I'm really looking forward to seeing how the market evolves in 2014. It's been a slow Fall and Winter '13, so I'm hopeful that things will be picking up soon.

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