2013 has brought in a lot of excitement for buyers and sellers alike. The dark clouds have scattered as gods smile kindly on all of us again. New employment opportunities and in-migration are some of the primary factors that have restored the faith on US real estate market. The market continues to expanse with a promise of 28% increase in home sales.
Getting way more than the asking price for a home, sellers reside comfortably in the market. However, buyers are also gaining valuable property in the market that is consistently increasing in worth. A win-win situation for both, the market clearing of real estate is continuously on the rise; causing a vast interest and speculation by real estate pundits. Some of the foresights are illustrated to help the reader learn about what is to become of the booming bubble in the real estate.
Colorado, in comparison to other states in the country has somewhat remained unaffected by the housing bubble. As the real estate market improves, Colorado is in the middle of the 50 states. The prices for homes available in Colorado are expected to rise with current median home price residing at $240,000, a 7.3% increase from last year. Observing some of the pivotal factors behind the resurgence of real estate is the availability of jobs with an overall 2.1% increase in the employment sector.
Real estate experts predict the market to continue a sustained growth for 2013 and 2014. A lot of investors are pushing towards speculative investment which also makes the demand for real estate in Colorado to grow further. 2012 was a promising year for real estate market but 2013 is predicted to be better with a 6% increase in construction. This will further create construction jobs in the market. 2008 onwards witnessed fewer construction projects all across the country because of which the market is now suffering from a dearth of newly constructed homes.
2013 is dictated by lower inventory and higher prices of houses in the market. Staying true to the laws of demand and supply – too few houses are being chased by too many buyers. With only 19 newer single family homes in the market along with a handful of condos and townhomes constructed in past five years; the scarcity of homes is likely to increase the price premium in this year as well as in the next. Further speculation of the real estate provides enough evidence of the newly constructed house prices to be the highest in the market. Sellers will demand the highest prices per square foot and anxious buyers will be more than willing to pay the asking price without any negotiations.
Real estate experts speculate the market to remain strong in 2013 unless some external factors come into interplay and change the game. The Federal Reserve Bank has indicated the interest rates to be pegged to benchmark which is an overall reflection of an improving economy. The lack of resale inventory may affect sales but overall real estate experts are hopeful of sellers to come out in the market along with a bulk of motivated builders that are aggressively completing new housing schemes for prospect buyers.
With new builders entering the market, there is going to be plenty of new housing production in the pipelines. Builders are keen to add innovation and new designs in the houses. With constrained supply levels, places like Denver rank 10th in the 20 MSAs (Metropolitan Statistical Areas) in the country. The overall increase for the 20 markets is 8.1%. Last year, Denver ranked at number 3 and this year it is no longer in the top five. Real estate experts welcome this drop because this implies that the housing recovery permeates all over the country with Colorado remaining untouched by the highs and lows of the market. This means that the housing bubble in the market has least impact in Colorado for this year and the next with an overall stability in the entire real estate market.
Predict the future of real estate market with us as we share some of the speculations and insights of real estate pundits. This is your chance of knowing as to what is to become of the booming bubble in the real estate market for 2013.
Alfie Ethan is a content manager at Premier Colorado Homes. Premier Colorado Homes is dealing with real Estate in fort Collins Colorado. Follow us on Facebook