According to the 2012 Realtors Conference and Expo, the upward housing trend and market recovery should continue through at least 2014. Mortgage rates are forecast to rise to around 4% in 2013 and around 4.6% in 2014. With the rising housing demand and decline in housing inventory prices are also expected to continue to rise an average of about 5.1% in 2013. Home sales are also expected to increase about 8.7% in 2013.
Foreclosures and short sales will decline in their market share – in 2012 they are about 25% of the market and are forecast to be about 8% in 2014. Distressed properties are starting to be more like an after Christmas sale – the best stuff is all gone but there is still something to choose from.
People who purchased homes at low prices the last few years will see their equity grow in the next 4 years but renters will not only miss out on the equity gains, they will face rent rising at a fairly fast rate.