8 Changes to the Housing Market for 2013

The housing market has come a long way since the housing crash in 2009. Here are eight changes to the housing market that you can expect in 2013.

  1. House prices will Rise- Prices hit the bottom a few years ago, and have leveled off in 2012. In some areas prices are already going up. According to Clear Capital you can expect house prices to increase by 2.1% in 2013.
  2. Interest Rates will Go Up Too- This is also true for mortgage insurance premiums as the demand for housing goes up.
  3. Demand will go up- The inventory for housing is going down with first-time home buyers and investors buying up Homepath and foreclosed properties.
  4. The Ability to Repay Rule will be in affect- This is designed to protect consumers from shady lenders, but it will make obtaining a loan for many buyers more difficult.
  5. Home Equity Loans will make a comeback- As home values increase these kinds of loans will become less risky for bankers and lenders.
  6. Less Foreclosed and Short Sales Available- Less and less distressed homes will be one the market, increasing demand for newly constructed homes and homes already on the market.
  7. More New Homes- New home growth saw its first significant increase in 2012. Expect that continue into 2012 as people gain more faith in the economy.
  8. Less Mansions for Sale- The luxury market for homes will go down since more and more people are able to buy them. More people have entered the upper class last year than ever before in American history.