Many real estate guru’s predict that the buyer’s market will carry into a lucrative 2013. An article by the Wall Street Journal states that buyers are expected to will feel a sense of urgency to purchase before home prices begin rising even higher. The cause?
For the first time since 2006, home prices have “ended the previous year in positive territory” as 2012 was the year the market finally hit rock bottom. And in result, according to surveys reported by the WSJ, buyers’ expectations have been improving over the past year. “Every single thing about housing is flashing green,” said James Dimon, chief executive of J.P. Morgan Chase, in an interview with CNBC last month.
Is this true? What about several housing reports exhausting the topic of “Renting is the new Buying”?
“People will pay more for a home if they expect prices to rise and give them a better return on their investment,” said Jed Kolko, Trulia’s chief economist. Renting prices have been escalating over the past couple years, and in some cities, renting has become more expensive than buying. According to Trulia, 98 of the top 100 housing markets report that buying a home is more affordable. This is predicted to be one of the largest factors contributing to buyer’s feeling the urge to buy.
“Rising prices could eventually encourage more sellers to put their homes on the market, which would help boost demand even further,” The Wall Street Journal reports.