Lending additional evidence to the idea the national housing market will continue to experience substantial gains in the coming years, real estate professionals have announced they believe further gains may bee seen throughout 2013.
Upon evaluating figures recorded during the first quarter of the year, the National Association of Realtors (NAR) recently released its latest 2013 Economic and Housing Outlook, which outlined possible improvements in economic indicators like payroll jobs, mortgage rates and housing starts.
The organization reportedly projected significant increases in the sale of existing-homes, expecting numbers to rise around 7 percent this year to total about 5 million sales. In addition, NAR estimates the national median existing-home price to also experience a 7 percent bump in 2013. Although mortgage averages have hovered at levels under 4 percent for the past 12 consecutive months, they are expected to remain low - but slowly tick up and eventually surpass 4 percent during the fourth quarter.
After noting consecutive quarterly increases in housing starts last year, the trend is expected to continue, but at a modest rate. As housing prices rise and inventories remain tight, the demand for new homes may jump considerably, but chief economist of NAR Lawrence Yun recently said real estate investors may wait for more lucrative business conditions to act.
"Investors have been very active in the market over the past two years, attracted mostly by discounted foreclosures that could be quickly turned into profitable rentals," Yun said. "With rising prices and limited inventory, notably in the low price ranges, investors are likely to step back in coming years."
Sellers report gains in confidence for housing market
Although real estate investors may be proceeding cautiously, those consumers who are looking to sell their homes are optimistic the coming months will benefit them considerably.
Realtor.com recently announced that even though inventory levels rose month-over-month between February and March, on a year-over-year basis, the number of currently available properties is more than 15 percent less than March 2012 figures. This fact can help see heightened home prices, and large profits for homeowners looking to sell.
Steve Berkowitz, the chief executive officer of Move, Inc. which operates Realtor.com, said that as conditions continue to improve, many may be expecting the further bolstering of the overall economy.
"The newest data shows that the outlook is optimistic for the overall real estate recovery," Berkowitz said. "The housing market is a key indicator for the national economy, and things are slowly picking up steam. The next three months will be significant in determining the impact of the recovering housing market."