Things are looking good for US real estate markets next year, according to a number of recent surveys and forecasts from industry experts, reports CNN Money.
The financial information services firm Fiserv for one, has predicted better things for the New Year. It said that it expected 95% of metro areas in the US would see average home prices rise during the next 12 months.
Numerous economists and surveys carried out in recent months have projected modest increases for US housing markets through 2012. Following years of rising foreclosures and price decreases, even a small improvement would be seen as a good sign, according to many real estate professionals. One recent survey by MacroMarkets, which questioned 100 real estate professionals and economic experts, showed that its respondents believed the New Year would see modest price increases of around 2.5%.
Still, we do have numerous problems to contend with of course. The huge backlog of foreclosed homes still has to be processed in many US markets. Because of this, home value gains will probably be in the region of around 1.1%, according to MacroMarkets. Nevertheless, this is a big improvement on the predicted 2.8% decline in median home prices in 2011.
The biggest problem facing housing markets, according to economists, is that foreclosures are still weighing very heavily and dragging them down.
Mark Fleming of CoreLogic was optimistic for the future however:
“The water is very deep in the living room, but it’s no longer getting deeper and is starting to recede.”
One thing that is expected to help real estate markets in 2012 is the current low interest rates that are available. Coupled with there being more affordable housing available for middle income families, economists predict a very modest rebound over the next year.