"Housing prices are still low relative to rents, so at 4.5%, it’s still more than a third cheaper to buy than to rent on average across the U.S. Buying will stay cheaper than renting." ~ Jed Kolko, chief economist of Trulia
Twin Cities, Minnesota (PRWEB) September 07, 2013
July's market data shows housing trends of a national decline in housing inventory of 5.24 percent, which is the second month in a row with year-over-year inventory declines in the single digits, according to realtor.com. National median list prices increased 5.27 percent year-over-year while median age of inventory is down 16.67 percent. Overall the Twin Cities is faring better with inventory decreases of 10.1% to 16,124 as of August 17th, 2013, as it is for other housing trends.
"We're actually starting to see more inventory of home listed for sale. Recently, the Twin Cities months supply of housing inventories were so tight that the market hit a 12-year low. With home prices heading upward, more homeowners are considering selling," says Jenna Thuening, owner of Home Destination.
Home Destination has compiled a list composed of housing specialist across The U.S. who offer their predictions of what to expect in housing trends the remainder of 2-013:
1) CoreLogic: "I don't believe that home appreciation will continue in our forecast for the next year through may have next year will be about 6 percent house price appreciation which is half where we are today," states Mark Fleming of CoreLogic. One thought behind that opinion is that we have a pent-up supply of housing inventory; however, people who don't have enough equity in their homes to sell just yet. Potential home sellers who are choosing to opt of of participating in the market right now are creating tight inventories levels. In turn, this is driving home prices up.
2) Ratings: Additional large mortgage servicing right (MSR) transfers are scheduled to be completed during quarter 3 and 4 of 2013, which continues to signal the bank housing trends to offload defaulted/high-risk loans. Overall, delinquencies and foreclosures continue to decrease. However, residential mortgage servicers struggle on with issues regarding management of foreclosure and delinquency timelines. There continues to be a stark difference in the time to resolve delinquent loans between bank and non-bank servicers due to many factors, including regulations and staffing levels. Fitch believes that it will be challenging for non-bank servicers to maintain shorter timelines as additional highly delinquent loans move from the banks' portfolios to the non-bank servicers' portfolios.
3) Urban Land Institute: Housings capital markets are expected to maintain a snapping turtle’s pace for reducing legacy home loan problems as the wave of maturing commercial mortgages gains force over the next three years. Low interest rates have bailed out lenders and underwater home borrowers, but some economists warn against complacency and recommend home buyers plan for housing trends for quarter 3 and 4 of 2013 to include further mortgage rate increases.
4) Realtor.com: "We think inventory levels on a year-over-year basis will probably flatten out by the end of this year. That will be the first time since 2007. You are actually going to see inventory growth on a year-on-year basis starting in the fall, but prices nonetheless will continue to appreciate", says President Errol Samuelson.
5) Truila: Real estate buying seniors aren't focused primarily on built-in disability features; they may be searching for real estate listings of homes they could live in for the rest of their lives, "aging in-place," beyond the selection of senior-only communities. The trend is toward homes with no stairs to the front door, single-family single-story layouts and low-maintenance landscaping have a massive new audience attracted to these features which would otherwise not warrant a mention in a home’s marketing, especially if homes near yours tend to have loads of stairs or other features that are difficult for people to navigate as they age.
6) RE/MAX: Overall mortgage rated continue to stay at a historically low levels; therefore, the continued home buyer activity is anticipated. New home listings that were distressed are expected to decrease assisting the sale of traditional homes.
"It should continue to be a great year for Twin Cities real estate," summarized Thuening.
Home Destination offers more information on Twin Cities housing trends in 2013. Home Destination is a leading Minneapolis / St Paul residential Realtor helping real estate sellers find the best buyer pool. Call 612-396-7832.