Courtesy of Trulia Trends
In 2012, said Trulia’s Chief Economist Jed Kolko, the housing market came back to life. So what does the future hold? What are the trends to look for in 2013?
Throughout the year, Trulia Trends analyzes loads of data, publishing housing barometers that judge how the recovery is progressing and price and rent monitors that map out the incremental changes in asking prices.
On Thursday, Kolko looked back at the year’s data and published his predictions for 2013’s housing market.
Overall, Kolko believes, the key question of 2013 will be about inventory. Inventory is falling — as we feel strongly in DC — and Kolko is on the lookout for the trend to reverse. That all depends on prices, he thinks.
“Rising prices should lead to more inventory, for two reasons: (1) rising prices encourage new construction, and (2) rising prices encourage some homeowners to sell,” Kolko reasoned.
Kolko sees homeownership becoming more expensive not only because of rising prices, but also because of the increasing likelihood that the mortgage interest deduction could be capped or lowered. We’ll know soon, as the President and Congress hash out a deal this month (hopefully).
Other tidbits from the post include the news that in January, the Consumer Financial Protection Bureau will announce new mortgage rules judging borrowers’ ability to repay. Additionally, Kolko sees housing policies becoming more localized, as states and city governments deal with problems like a glut of foreclosures or rising rents that are local rather than national trends.
For Kolko’s complete analysis, click here.
As an additional perk, the real estate website put out a list of the top 10 healthiest housing markets in the country, based on job growth, low vacancy rates and low foreclosures. Number three on their list was DC’s very own Maryland suburbs, including the region encompassing Bethesda, Rockville and Frederick.
This article originally published at http://dc.urbanturf.com/articles/blog/housing_in_2012_whats_in_whats_out/6445
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