I was cleaning out the Drafts folder in the Blog and realized this blog was never posted….
Last January I posted Housing Market Outlook for 2012. How accurate was I on my assessment of the 2012 Housing Market?
- Mortgage rates are still a historic lows.
- Unemployment rate is at about 7.5%, which is slightly better than this time last year.
- The amount of Foreclosures in the past year, was the lowest amount since 2008
- New home builds held steady for us during 2012.
- We did see an increase in prospects especially towards the end of the year.
I think my 2012 Outlook was pretty accurate. Now lets see how I do with the 2013 Outlook
Unemployment and foreclosure rates continue to drop. They are still high, but the improvement is there. The appraisal process is still a bit rough; however, as foreclosures are sold out of the market the comparables are getting better. The election is behind us.
All of these points add up to a decent outlook for 2013. Unlike in 2012, when I thought we would hold steady, in 2013 I believe we will see an increase in new home builds. People want to take advantage of the low mortgage rates and are going to be financially comfortable making a commitment to a mortgage.
Here’s what the experts are forecasting for 2013:
A New Housing Boom by CNN Money
Housing Market in 2013: What to Expect by Fox Business
5 Things Consumers Should Expect From the Housing Market in 2013 by Forbes
Housing Outlood 2013: Home Prices Get a Lift by Kiplinger
In the long run, it doesn’t matter what I think, or what experts think, it matters what potential new home buyers think… What are your thoughts?
Researching for this blog has been a bit more difficult than researching for the previous generations. The millennial generation were born 1980 to 2000. This puts the oldest in the generation in their early 30’s and the youngest are just entering their teens. Many of the older millennials are still either renting of living in their parents home due to the housing bust, high unemployment rates and high college debt. This is quickly changing as the housing market levels off and employment opportunities increase. As they do entering the housing market, more information about their expectations, wants and needs are emerging.
- While many millennials are do-it-youselfers, they want homes that are move in ready.
- While Generation X found smart home technology convenient, millennials find it a necessity. Being able to connect with and control all aspects of their home from virtually anywhere, may seem over the top to most people, but to the latest homebuying generation it is common sense.
- Energy efficiency may not appear on their list of needs/wants, this isn’t because efficiency isn’t important, but rather, efficiency is the norm. To this generation listing energy efficiency as important would be like listing indoor plumbing as important…
- Size does matter! The millennial generation will NOT pay for a home with extra space they won’t use. This generation isn’t going to buy a home their family will “grow” into. Their home will fit their family and lifestyle now, if their family and lifestyle change, their home will change at that time.
- Building new is the best option for many people in the millennial generation. More and more first time homebuyers are immediately entering the homebuilding market to meet their homeownership needs. This ensures they are getting the most current advancements in energy efficiency, design, and technology.
It will be interesting to see the changes the millennial generation will make to the housing & real estate markets. One thing is for sure, their expectations are driven by technology, which is ever changing and evolving.