HOUSING MARKET EXPECTED TO RECOVER THROUGH 2014

(prHWY.com) January 1, 2013 - Albany, NY -- According to the National Association of Realtors, the steady recovery of the housing market is expected to continue over the next few years, barring further tightening of mortgage credit availability or the much discussed "fiscal cliff".

The majority of 2012 has looked promising with home sales and new housing starts recording notable gains compared to much suppressed activity over the previous four years. While mortgage rates are now at historic lows, they are expected to rise steadily through 2014. Even with rising home prices, favorable housing affordability conditions will continue over the coming year, but they won't last forever. With the demand rising and the inventory shrinking, an increase in home prices is also expected. According to the Capital Region Multiple Listing Service, the national median existing home price is expected to rise to $185,200 next year from $178,600 as of October 2012. October 2012 marks eight consecutive monthly year-over-year increases. This last occurred from October 2005 through the May 2006 time period.

NY Realtors also project the market share of distressed sales should decline from 25% in 2012 to 8% in 2014. For the past two years foreclosures and short sales sold at deep discounts and accounted for 24% of October 2012 and 28% of October 2011 sales.

Even with some regional impact from Hurricane Sandy, home sales continued to trend up and most October transactions were completed by the time the storm hit. An impact on the Northeastern home sales in the coming months from a pause and delay in the storm-impacted regions is expected.

Rising home prices have already resulted in over $760 billion growth in home equity during the past year. Given each percentage point of price appreciation translates into an additional 190 billion in home equity, it is possible to expect close to a $1 trillion gain next year.

Inflationary pressures are expected to build over the next 2 years. As a result, mortgage interest rates will also rise with inflation. Buyers who are currently held back by tight mortgage credit standards should work to improve their credit scores in order to qualify for a mortgage while conditions are still favorable. It is very important to understand how credit issues and credit scores work. Your NY Realtors is a good source to learn about lenders and obtaining safe financing.

For information on the housing and mortgage market, contact one of our Realtors at (518) 452-3912.

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