The fact of the matter is that home sales have been slow now for the last half decade. While the economy has shown some signs of improvements, there is still lots of pessimism and uncertainty. The question is, what will be in store for the housing outlook in 2012? Know one knows for sure, but here is what some experts believe:
Yet, affordabilty is the name of the game for 2012. The National Association of Realtors reports that next year will be one of the best years on record for housing affordability.
“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,” said Lawrence Yun. “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.
“NAR President Phipps says that “mortgage availability remains a real concern since the private market has yet to return. While the housing market is still in recovery, we firmly believe that lower loan limits will only further restrict liquidity in mortgage markets.”Home sales could start to see some improvement in the new year, though. Existing-home sales are expected to rise 4 to 5 percent.
We must realize that real estate is regional. While Washington DC Real Estate might be in great shape in 2012, real estate in Washington State might still suffer. Only the future will lead to the real answers.