The Wall Street Journal interviewed 50 plus economic forecasters, they all agreed that we are on our way out of the recession. Here are the main points for and against the housing recovery; these are summarized from Inman news and Trulia predictions.
- Mortgage delinquencies will go down, but foreclosures will go up. Some of these foreclosures are already sitting empty, only needing to be put on the market. Last year’s robo-signing controversy, in our area called ‘MERS”, is expected to be settled so those houses will be sold.
- Rents are expected to rise. With more people losing their homes, forcing them into the rentals, that pressure will cause rents to rise. This is unfortunate and will hold back an economic recovery, with the increase in fuel costs and no pay raises expected until jobs return to the area.
- Jobs, Jobs, Jobs. We need jobs to revive the housing market. In the past housing has led the way to more employment, not this time. People with a steady income are needed to qualify for mortgages to buy homes. Do not expect any Government help; this is an election year during which politicians tend to sit on their hands.
- A big real estate trend will be more online involvement; more people will realize the usefulness of “Real Estate Company Web Sites”. A wealth of knowledge is just an email away, ask the local real estate agent.
- Prices are very good for buyers, mortgages are affordable and inventory remains very good. Programs that help with the closing costs are going away, more out of pocket money will be needed.
- The sellers are learning how to maximize their selling price, painting, cleaning and careful staging will show their house in the best perspective. There will continue to be a demand for ‘Move in Ready’ country homes.
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