Market Report: 2013

ID-10083915On the matter of a national real estate market, there are a lot of ways of measuring it; from the broad “healthy/non-healthy” aspect, down to very specific statistics. In most any way you look at it, during the year of 2013, the real estate market was doing well. The market on the whole went up 6.92% in average list price, representing an overall appreciation of assets. This is a great sign for all involved in real estate, though there is a lot of talk as to whether or not the market is in fact heading into another “bubble”. Yes, the market went up, as most people would expect it to, but will that be the downfall of the market in the future?

I don’t think it will. Several analysts agree that the indications of a possible “bubble” are present, but nothing is conclusive. So far the growth has been good and “healthy”, steady at nearly 7%, but it would take something closer to 15-16% to outrun the inflation rate and cause the market to crash. I believe the market is in for some very good times to come. Business Insider and Forbes, among other sources, give several reasons why real estate is definitely prepped for the upswing.

The first indicator is the continued rise in home prices, as aforementioned. The continual increase in value of properties in areas that were severely hit during the “bubble burst” of 2008 (such as California) is very promising. On top of that, there is an anticipated influx of demand for homes. Among the expected hopeful home-owners are the young people who are finally back into jobs and are looking to move back out of their parent’s homes, more first-time buyers (or ex-renters), and several investors who are realizing the boom in need for rental places.

Furthering this point, there are a lot of financial indicators, as well as social indicators that the market is set to flourish. Financing for building or purchasing homes is getting easier. Banks are carrying easier credit standards, mortgage rates are at a record low, and foreclosures are becoming fewer as banks are starting to default back to other forms of resolution on delinquent accounts, including selling off home loans and accepting short sales.

In conclusion, the real estate market did well in 2013 and there are no obvious reasons that progress shouldn’t continue into 2014. Things are looking good for the current or hopeful home owner.

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