As January comes to an end, many are looking back on some of the 2011 year predictions to see if they’re still on track. 2012 is expected to be a much better year for the San Ramon CA housing market than we’ve seen in about half a decade.
Here are just some of the predictions that were made last year that we can already see beginning to come true for 2012:
4 Reasons the US Housing Market Will Recover
- 1. Builders Will Start Building Again
When the housing crisis was at its peak, property construction stopped immediately across the U.S. It only made sense. There was no need to continue to build new homes when so many existing ones were facing, in the middle of or already foreclosed upon. Plus, as the government began to examine the now infamous ARMs qualification processes, it became obvious that most couldn’t qualify for a reasonable mortgage.
To top it off, property values plummeted, making it impossible for investors to make a profit from the sale of newly constructed homes. Now, with interest rates being so low, it may be time for investors to take a deep breath. They can be more confident in the fact that potential buyers can actually afford to purchase homes they decide to construct.
- 2. Unemployment Rates Will Effect Buyer Confidence
So many Americans joined the unemployment lines in the last five years, it’s actually scary. This didn’t help the foreclosure epidemic one bit, as the ARMs interest soared to unaffordable rates within the U.S. Although there are expert reports of expected recovery in our housing market, the confidence of potential buyers is still low.
This is guided by a financial economy that has far from recovered, as unemployment numbers continue to remain at record highs. Because many consumers have learned harsh lessons taught by the ARMs deals, caution will still be exercised when it comes to committing to home mortgage loans.
- 3. Home Values Won’t Appreciate Much, If At All
To many current homeowners, this may not be great news, as they may be hoping to sell or refinance their homes. But, this is encouraging to the housing market as a whole, because it encourages new homebuyers to take the leap into homeownership.
With thousands of foreclosed homes sitting empty across the US, it’s detrimental to the economy that they become occupied as soon as possible. This is a blessing for first time homebuyers, as this buyer’s market allows the cost of homeownership to be more affordable than it has been in decades.
- 4. Homebuyers’ Tools Will Go Even More Mobile
In 2012, almost everything we touch has a digital aspect to it, including shopping for homes. Consumers use digital media to search property listings, prices, real estate brokers and agents, and much more. When looking at homes, property addresses are found using GPS apps found in cell phones.
E-signatures are used to sign official documents online. Pleasanton CA Real estate consumers are reading newspapers, carrying fliers or searching telephone directories less and less everyday. All of these things are now being replaced by laptops, iPads, smart phones, netbooks, etc… Real estate agents are finding that their office phones are ringing less everyday as their clients choose to communicate with them using text messages and emails, versus the telephone.
2012 US Housing Market Recovery
Although it will take time for a full Danville CA housing market recovery to occur, positive changes will begin in 2012. Once the 2012 presidential elections are over, we can all step back and take a strong look at the state of our housing market. Hopefully, the political figures in charge won’t forget to make the job market a priority. If so, and they are smart enough the get valuable jobs back to the US, we can expect to see a rise in homeownership confidence levels. This will help to push harder for a housing market that’s predicted to make a full recovery in the upcoming years.
This guest blog was provided by Vickie Nagy. You can learn more about Vickie by visiting her website here: http://vickiesellshomes.com/.
