Minnesota Housing Predictions for 2013
2012 is quickly coming to an end and we will be ringing in 2013 in just a few days. With that in mind I thought I would share with you what some of the experts are predicting for the Minnesota and nationwide housing market in 2013. Many areas of the housing market are improving. Will this trend continue?
Home prices in Minnesota are increasing as the demand for homes out numbers the existing home supply in many regions. Economists are predicting home prices will continue to rise by 5 to 7 percent over 2012 numbers according to a recent report by CNBC. Competition among investors looking to buy distressed properties, along with move-up buyers returning to the home buying market will do their part to drive up home prices. The supply of homes available for sale in the region will determine just how much home prices will increase. There is some concern that home prices across the nation may rise at a pace that is faster than income among the regions buyers. This could leave what would be homebuyers on the sidelines.
Obtaining a home mortgage has been tough for many over the past few years as lenders started demanding more from borrowers. The ability to obtain a mortgage may impact the 2013 housing market. New rules governing risk retention and a borrower's ability to repay a loan that will be rolling out soon may make loans more expensive. As a result, mortgage rates may increase slightly from the historic lows we have been experiencing.
The number of mortgage delinquencies and foreclosure will continue to plague the housing market in 2013. Principal reduction modifications and a large number of short sales will help with this issue. However, we will continue to see sale of foreclosures, but economists feel it is unlikely that banks will flood the market with bank-owned properties.
If you are looking to buy or sell a home in Brainerd in 2013, contact me, Bill Grunewald. My team and I enjoy helping folks like you find just the right spot to live your northern Minnesota Lake Country dream.
Bill Grunewald/ Edina Realty.
Licensed in Minnesota/ Lic # 20204156