Economists say this could finally be the year that housing lifts us out of the housing slump

by Yvette Betancourt

Can this be the year that housing market and economy will have a full big sign that the recovery is in full swing?  According to half of economists surveyed by CNNMoney says "Yes."  Not just in housing but also in consumer spending, increased domestic energy production and stimulus from the Feds.

Homebuilding will be stronger than before.  Home sales rebounded to the strongest level in five years in 2012.  What is the cause?  We have the record low mortgage rates, rising home prices and drop in foreclosures to thank for being buyers back to the market.  

There will be a lot of pent-up demand for housing.  This will cause a home builders to start building which means a growth in job for not just construction jobs but manufacturing jobs.  

Would you agree or disagree?

2013 Housing Prediction from Freddie Mac

by Yvette Betancourt

Here it is! Straight from Freddie Mac's Frank Nothaft, chief economic's for Freddie Mac!  So what does he predict for 2013 housing ?

Housing Activities

The turnaround was in 2013 and 2013 will continue to pick up. Nationwide, home sales were up 9% in 2012 from 2011.   Frank Nothaft predicts housing prices could rise an additional 20 percent and home sales rise another 8% to 10%.  Great News for Southern California as he see a pickup in home prices and sales. 

Mortgage Rates

Rates will stay very low due to the Fed's decision to continue buying up large quantities of mortgage-backed securities.  The 20 year fixed conforming loan rate is expected to remain below 4%.

Distressed Levels

 Foreclosure reamin at high levels but the "shadow inventory" has come down during the past two years.  There is still 3 million homes that are in serious delinquent. Bank Owned home supply will be limited in 2013.

Progress of Recovery

The Fed recognized that the housing market has been lagging and they introduce Operation Twist and dedicated to push mortgage rates to record-low levels.  

Sounds like a 2012 housing year with increase in sale prices and sales.  Sounds like a great time to buy and take advance of the low interest rates.  Perhaps time to sell and get top dollar for your property. 

Interest Rates Will Continue to be Low Until Unemployment Drops

Fed Chariman Ben Bernanke

by Yvette Betancourt

As the end of the year comes near (according the Mayans, it's the end today), the Feds made the decision to continue to curb interest rates low as long as the unemployment rate remains above the 6.5 percent.

Sounds good right? but for how long?

Unemployment rate is estimated to drop below 6.5 until 2015 according the Feds.  sounds like 2013 and 2014 will be a the best time to get into the market for buyers, sellers and real estate investors.

So as we anticipate the decision of the "Fiscal cliff," government is doing their best to make sure the 2012 real estate market gain will continue to grow into 2013 and beyond.

Source: AGBeat