Have you been wondering what changes and developments in the 2013 housing market will mean for your home? If so, you’re not alone.
A series of predictions published on December 10, 2012 by Frank Nothaft, Vice President and Chief Economist of Freddie Mac may provide some clarity.
Review the bullet points below or watch the video focusing on five housing features outlined by Mr. Nothaft on expectations Freddie Mac holds in regards to the housing market and your home in 2013.
For the East Side of Providence, RI, inventory levels for single family homes remains relatively low. Part of this is the time of year as seller wait to list in the spring but the East Side has reached a level of stability. Low inventory levels and active demand from buyers have brought equilibrium to the housing market on the East Side. We hope this continues into 2013. With interest rates remaining low until the Joblessness rates hit 6.5% in the U.S., we are cautiously optimistic.
5 Freddie Mac Expectations For Your Home in 2013
- Mortgage Rates – Freddie Mac expects to see rates below 4 percent throughout 2013, making purchasing your home easier for most buyers.
- Home Values – Freddie Mac believes there will be an average increase in the value of your home between 2.5 and 3 percent over 2013, with some neighborhoods outperforming this estimate and others underperforming, creating a national average increase.
- Growing Number of Households – Freddie Mac predicts that an additional 1.25 million households (net household formations) will be created in 2013, providing more demand for your home.
- Decreased Vacancy – As new households are formed, more properties will be filled, allowing for a natural decline in the vacancy rate.
- Less Refinancing for SFR – Though rates will continue to be low throughout 2013, Freddie Mac suggests that single family residences will be doing less of the refinancing while a substantial increase will be seen in multi-family lending, resulting from accelerated building of apartment and multi-family investment properties.