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Columbus & Central Ohio, United States
DeLena Ciamacco is a well-known, respected Top Producing Realtor in Central Ohio. Her myriad of accomplishments, recognition, and professional credentials as they relate to Real Estate, make her a perfect individual to provide insight to the masses on all aspects of Real Estate sales. Her creativity and honest approach to marketing Real Estate has enabled her to succeed in her career. DeLena’s philosophy is “An educated and well prepared Buyer or Seller is a smart Buyer or Seller”. Her desire is to inform the public, by pulling from her 20+ years of Real Estate sales & Marketing, what is necessary to get to a successful closing in these challenging times.

Saturday, December 29, 2012

Looking Ahead to 2013: The Housing Market

Home owners ready to sell and potential buyers have had their ears to the ground for the past couple years, keeping track of the real estate market and what it could mean for their future. It’s been a long hard road from 2008, but we’re finally seeing that light at the end of the tunnel, and will continue to in 2013. If you’re ready to list your home or are looking to purchase one, you may want to consider doing so in the next year after reviewing these trends set to take off in 2013. 

1.        The Return of Home Value
When the real estate bubble burst a few years ago, many home owners were shocked to find their home values had plummeted. Selling the homes that they had spent so much time, money, and effort in to create an investment just wasn’t feasible in this climate. However, that is quickly changing; real estate site Trulia is reporting a 3.8% spike in home sale prices in just the past month alone. It’s looking more and more like 2012 was the year we finally touched bottom, meaning 2013 will be the year we see a substantial turn around. Even with prices set to rise in the coming year, it’s still a great time for buyers to get in there and purchase property, as the record-low interest rates on home loans are set to continue. Interest rates for December 2012 fell to an average of 3.68% compared to 4.45% in 2011 and 4.69% in 2010. 2013 is going to be that sweet spot where home owners begin to see a return on their investments, while buyers can still snatch up real estate they love for prices they may not see again in their lifetimes. 

2.       New Builds Continue
2012 saw a return of construction and new builds to the real estate market that had been lacking in years previously. With the ultra-low prices available to those looking to buy, as well as current owners understandably unwilling to sell due to home value, the real estate market became thinner than it had before. The result: buyers turned to home builders to craft their dream homes. With that boost, builders are now attempting to get back in the game by upping their constructions, giving potential buyers more options in their search for the perfect home. Those looking to move into something new this coming year may want to explore the options of having a home custom built, or of looking for a new build since the market will continue to be inundated with them as great options. Building permits were at their highest levels since 2008 this year, which is a great indicator that more builds are coming soon. 

3.       First Time Buyers
The recent plunge in the economy has hit certain groups harder than others; this is especially true for the 25-35 year old age range that have seen job prospects diminish greatly and their student loan debts grow. The result has been a giant downturn in first time buyers who would otherwise be snapping up real estate and establishing families now. This age group suffered from a 9.2% jobless rate in 2011, compared to 8.7% for other working aged groups at the same time. However, recently this jobless rate has fallen substantially to 7.9%, only .2% more than the national average currently. This means that more and more young adults that have been chomping at the bit to get into a new home will potentially be able to in the coming year. This is great news for home sellers anxious to sell and move up to a new home themselves. When the first time buyers return to the real estate market, the entire system benefits. 

4.       Decline in Delinquencies
It’s been a rough couple of years for many homeowners who have found themselves underwater on mortgages due to the drop in the economy. When things began to slow in 2008, many owners became delinquent on mortgage payments, a clear precursor to foreclosure.  Delinquencies peaked in the final 3 months of 2009, averaging 6.89%; to compare, delinquencies were only 1.49% in 2006 before the beginning of the recession. The good news is that the delinquencies have been steadily dropping since 2012 and are expected to continue their decline well into 2013. Currently they stand at 5.41%, and are expected to drop another 2% in the coming year. The silver lining to this is that the vast majority of delinquencies right now are made up of old debts that are a year or more behind; people are not going into foreclosure or becoming delinquent anywhere near the rate that they once were a few years ago. We are finally seeing a stabilization of the housing market and a possible end to ramped foreclosures. 

A Word of Caution
Although there is no denying that the housing market has been making a recovery in recent months and has the potential to grow even more, there is one thing that stands between us and a true full recovery. The culprit? You guessed it: The dreaded fiscal cliff. With much of the United States’ eyes turned to Washington, it’s no surprise that many people who would otherwise be taking a chance on buying or selling are waiting to see where the cards fall. Just the threat of possible economic repercussions has the potential to upset the recovery underway. Among possible casualties of the fiscal cliff debates are Mortgage Interest Deductions, The Mortgage Forgiveness Debt Relief Act of 2007, and the beginning of the Medicare Real Estate Surtax used to fund the new healthcare system.  

Although we’re not quite where we were pre-recession yet, 2012 has given us a lot to be thankful for, and 2013 has the potential to be even better. No matter the problems or obstacles presented to the housing market, there will always be great realtors there to help those in need navigate home sales and purchases, with your benefits in mind. Here’s to a GREAT 2013!

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