What Will 2012 Bring To The Housing Market?
After being immersed in the housing market and seeing the trends as of late, we would like to share some thoughts for the New Year’s housing market.
With a slowly strengthening economy and home-saving refinances, fewer borrowers will fall behind on their monthly payments. The number of behind borrowers is already down from a couple years ago however some delinquent loans have not gone through the foreclosure process. So we should see an increase in foreclosures and foreclosure sales within 2012.
Since fewer people are buying homes and a larger number are losing their homes to foreclosure, rental properties will be in high demand. With rental demand increasing, rent prices will grow. However, in late 2012, multi-unit construction projects will be completed and available for rent.
Because of a slightly stronger economy creeping up on us, Treasury bonds and mortgage rates will be pushed up because inflation is expected and investors will demand higher rates to hold bonds. This can be looked at as a good thing because higher mortgage rates go side by side with greater housing demand.
Don’t expect the government to introduce any valiant housing policy reforms next year. With the housing market at a slow recovering pace, we will see the results of restrained housing proposals with more government homes coming to market for sale or rent within 2012.