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5 Projections of Where the Housing Market’s Headed – Including a Cooling Rental Market

by Michael Levy on June 27, 2012

in National, NEWS

Success1 PHOTOAppraisal issues are holding back up to 20 percent of home sales and lenders’ tightened mortgage underwriting standards are likely holding back another 15 to 20 percent of potential home deals.

Here are some forecasts:

1. New-home market: 19 percent increase in single-family housing starts this year over last.

2. Single-family rental market: Expected to cool as rental rates continue to increase and as home ownership looks more attractive.

3. Home price appreciation: Some markets may see a 10 percent rise in home-price appreciation next year due to an increase in demand or a 60 to 70 percent increase in housing starts.

4. Home owners’ negative equity: About a third of home owners are underwater, owing more on their mortgage than their home is currently worth.  Home owners with negative equity will gradually begin to list their homes as they see prices inch up, but when they do, that may temporarily swell the housing supply and cause a brief pause to the recovery.

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To read the full article, click here: Realtor Mag

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