With two weeks of mid-80's temperatures here in Montecito, the team at Riskin Associates is having a hard time believing summer is almost over. With a busy selling season, fall is sneaking up on us and reminding us that 2013 is coming to a close! Thus far, the market has been booming this year: the low-end seller's laughed all the way to the bank due to bidding wars, inventory was tight and suddenly high-end listings are getting escalating activity! With the exciting movement in the market, agents, buyers and sellers are all looking at the market forecast for the remainder of 2013. According to Forbes Real Estate writer Morgan Brennan, here's where the market is going:
- Don't worry about bursting your bubble. While prices are soaring at impressive rates, they are not catching up to the pre-burst levels. Prices are still lower than they were back then, in fact there are still many undervalued area's across the country.
- Prices will continue to increase through 2013. Experts project that 2013 will close with home prices anywhere from 6-12% higher than last year's based on supply and demand. However, the progress is expected to slow due to increasing inventory and high mortgage rates.
- Inventory won't stay low for long. Early in 2013, inventory hit a 12-year low, but is already starting to increase. Realtor.com president Errol Samuelson expects that inventory levels will flatten out into fall, but surprisingly, prices will continue to appreciate. New construction will increase as homebuilder's will feel renewed confidence and begin new developments.
2013 has seen some of the strongest market increases since the recovery began. A healthy competitor for the banner year that was 2012, real estate professionals are anxiously watching for 2013's grand finale.