An Upbeat Forecast for Our Housing Market...

The housing market has bottomed out and should show solid improvement, especially next year, top economists said at the International Builders’ Show in Las Vegas.

The National Association of Home Builders expects construction of single-family homes to surge nearly 22 percent in 2013 to 650,000 units and spike 30 percent to 844,000 in 2014, said chief economist David Crowe.

Starts of multifamily units should rise 22 percent to nearly 300,000 this year, followed by a more modest gain of 6 percent in 2014.

Freddie Mac expects residential sales to climb 8 percent this year as mortgage rates remain below 4 percent, according to chief economist Frank Nothaft. And home prices could increase between 2 percent and 3 percent this year, he adds. 

Still, builders remain concerned about the rising cost of building materials, gridlock and uncertainty in Washington, the stagnant job market, and ongoing issues with home appraisals.

Source: "At Builders' Show, an Upbeat Forecast for Housing," The Wall Street Journal (Jan. 22, 2013)

(Side Note: Utah's Housing Market expected to rise between 4 and 6 percent in 2013. Source: Utah Housing Economic Report 2012)

6 Reasons Why This Winter Is a Great Time to Sell

DAILY REAL ESTATE NEWS | WEDNESDAY, JANUARY 23, 2013

Forget the myth that winter is a bad time to sell real estate. While sales usually inch lower in the cooler months, some real estate pros are saying this winter in particular may be a great time to sell a home. 

Here’s why: 

1. Mortgage rates are near record-breaking lows. 

2. Home prices are starting to rebound in many markets across the country. The National Association of REALTORS® reported that home prices in December were 11.5 percent higher than a year earlier. 

3. Homes still remain a good deal: Prices are rising but remain mostly below 2007 highs, and in many areas, the cost of buying is cheaper than renting. 

4. Distressed homes that typically sell at big discounts -- up to 20 percent off -- are still widely available. Short sales and foreclosures accounted for 22 percent of all existing home sales in November. 

5. Household demographic changes: Many buyers used to want to wait until the end of a school year before moving, but households are changing and moving schedules are less tied to school terms. That’s because households with children are making up a smaller part of the mix nowadays. According to William Frey with the Brookings Institution, 80 percent of all households in the U.S. do not include children. has declined. 

6. Household formation is growing. “Many people who ran into tough economic times several years ago are again looking at real estate ownership,” says Wendy Forsythe, executive vice president with Atlantic & Pacific Real Estate. “Enough time has passed so that many of these individuals have re-built credit, built up their savings and now qualify for FHA, VA and conventional financing.”

Source: “Does Real Estate Really Sell in the Winter?” Reuters (Jan. 22, 2013)

Housing Inventories Posted Big Drop in 2012

Inventories Posted Big Drop in 2012

DAILY REAL ESTATE NEWS | THURSDAY, JANUARY 10, 2013

The number of homes on the market continues to fall, according to some real estate indicators. Inventories dropped 27 percent in December 2012 compared to December 2011, according to Movoto Real Estate. 

The lower inventory is giving a boost to home prices, analysis from the company says. But many home owners are still cautious, keeping their houses off the market until prices appreciate more. 

Generally, the number of homes for-sale hits lows in December before starting to increase in January and peaking during late summer. But last year, inventories continued to drop throughout the year. 

Source: “Housing Inventory Steadily Declines in 2012,” HousingWire