Saturday, November 26, 2011

Is the Nation's Housing Market Primed for an Upswing?

While the real estate market has seen more than its share of bad news in recent years, a recent report suggests that the real estate tide just might be prepared to turn. A recent study released by Fiserv predicts that by 2013, more than 95 percent of metro areas will see increased home prices. The study used data from the Fiserv Case-Schiller Index of home prices and an analysis of home price trends in more than 380 home markets across the country.

Where the Numbers will Go

The data collected indicated housing price drops that began last year continued on a downward trend during the third quarter of 2011. Despite lower prices, foreclosures seemed to slow during recent months, which should set off a turnaround in the trend within months. The analysis predicts a broad-based recovery for the housing market set to begin during the early months of 2012.

"Between the first quarter of 2012 and the first quarter of 2013, homes are predicted to increase by an average of 2.7 percent, with gains in 365 out of 384 metro areas," Fiserv stated in a recent press release.

The Good and the Bad

Despite plenty of positive news coming out of Fiserv this week, there are some areas of the country that may not see home prices increase as quickly. These areas will primarily be in the Phoenix, Southern California, and Las Vegas markets, where a surplus of inventory built up during the housing boom is still not turning over quickly.

Despite the good news, there is still concern that the current economic uncertainty could continue to impact housing markets. David Stiff, chief economist for Fiserv, said in the same press release, "The stabilization of housing markets depends greatly on household confidence in the strength of the economic recovery."

Stiff also cites many reasons to be optimistic, stating "Mortgage delinquency rates have been falling for more than a year. Foreclosure rates have started to decline. The flood of bank-owned sales, which has swamped many markets, will finally begin to recede this year as fewer houses enter the foreclosure pipeline." These factors, according to Fiserv, point to a broad-based housing recovery for housing beginning as early as next year.

Are you looking to sell or buy Cobb County real estate? Give us a call to discuss your particular situation, we can be reached at 404-842-1555.