Since the second half of 2012, when the real estate market got on a slow recovery path, a growing number of people are becoming optimistic that things are getting back on track. Real estate agents in particular expect a more upbeat real estate market in 2013. At least this is what the results of a joint in-house survey done at the end of 2012 by real estate engines Point2Homes and PropertyShark show.
A majority of survey respondents also believe that in the coming year the market will be driven by mortgage rates in particular. Read below to find out how New Yorkers answered some of the survey questions compared with real estate players in California.
Optimistic Predictions on Home Sale Prices and Sales Volume
In December 2012 we asked almost 1,500 agents, home buyers and other real estate professionals about their predictions on the housing market in 2013. The background of the survey was a real estate market slowly recovering from the 2008 crash, the threat of the fiscal cliff still looming, a 7.7% unemployment rate for December 2012, and foreclosure rates still high in certain states.
The result was that 71% of the respondents believed that in 2013 home prices will go up or remain at the 2012 level while only 13% of them thought that they will decrease.
The breakdown by profession is as follows: 59% of all agents surveyed were confident that home prices will go up compared with 37% of the home buyers and 39% of the other real estate professionals.
What’s interesting is that Californians are more confident than New Yorkers about home prices bouncing back up. When analyzing the results by geographical areas, we saw that 50% of respondents in California believe this compared to 44% in New York.
Regarding the sales volume, 41% of respondents were confident that they will also go up. Once more, real estate agents (52%) were the most optimistic category, followed by home buyers (41%).
Inventory levels were expected to remain the same in 2013.
Mortgage Rates to Impact the Market the Most
Our respondents showed great confidence in the U.S. Federal Reserve’s continued efforts to boost the US job market and keep down borrowing rates. In light of this, 31% of respondents believed that mortgage rates will have the strongest influence on the real estate market.
In second place stands the easing of access to loans (27%), while foreclosures come in third (with 18% of the responses).
Interestingly enough, home buyers consider, in a significantly higher proportion compared to agents, that foreclosures will have a significant impact on the housing market (21% compared to 14%).
Californians and New Yorkers Divided about Foreclosure Rates Predictions
When asked if foreclosures will influence real estate market activity, 21% of respondents in California answered affirmatively, compared to only 9% in New York. The difference can be explained through the higher foreclosure rate in California.