Homeowners Finally Express Some Confidence in the Real Estate Market for 2012

While neither economists nor industry experts are predicting dramatic turnarounds in the real estate market in 2012, homeowners are finally exhibiting more confidence. A recent Fannie Mae (Federal National Mortgage Corporation) survey (November 2011) indicates that homeowners believe that their property will increase in value by 0.2 percent over the next year.

For the first time in over six months, homeowners¬†foresee a positive increase, instead of the continuing decline in values they have endured in recent years. To be polite, this is certainly a “conservative” expression of confidence in a market that has been depressed since 2007. However, consumer confidence in a market or an economy is often the single most important jumpstart incentive in developed economies.

While nationwide statistics indicate that many parts of the U.S. remain moribund for arms length real estate transactions (non-foreclosed or distressed properties), some areas, including Washington D.C. , D.C.-metro, show signs of life. Buyer and seller confidence can accelerate these upward trends.

Mortgage delinquency rates are finally stabilizing, projecting a decline during 2012. As fewer current homeowners endure “under water” conditions, foreclosures and delinquencies should also decrease. Even buyers will profit from this situation. Fewer properties will suffer from deferred maintenance, which often turns those wonderful appearing purchase deals into real estate nightmares.

Home buyers may pay a bit more for properties, but purchasing and financing a well maintained house, over 15 to 30 years, is much more enjoyable–and profitable–than buying a “bargain” that needs major repairs to resemble the dream house buyers want. More confident buyers and sellers will result in stabilizing the market, which will benefit everyone.

Should the mortgage rate market, as projected, remain at historic lows, qualified buyers should be able to find the home they want at a reasonable price during the upcoming year. The intricacies and nuances of the contemporary market increase the value of using real estate experts to help find and negotiate the purchase/sale of homes. Those brokers and agents who fully understand the local market, employ high level creativity and exhibit superior professionalism, can help buyers and sellers reach the closing table successfully.

7 years ago by in headlines , Homeowners , Market News , Real Estate Trends | You can follow any responses to this entry through the RSS feed. You can leave a response, or trackback from your own site.
  • http://www.topoftheburg.com Jonathan

    How many real estate transactions are you all doing a week?

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