Real Estate Market Predictions for 2013

The 2013 Real Estate Market is moving toward strength but definitely has a long way to go.  Inventory of existing homes on the market has declined an estimated 43%.  Rising prices and lower inventory are strong indicators pointing toward buyer bidding wars.                                                                 

Property appraisals and substantiating value will be vital in any and all real estate transactions this year.

Qualifying for a mortgage is the most important factor in the home purchasing process. 
In 2012 conventional mortgages over $417K required buyers to have over a 710 Credit Score. FHA and VA mortgages below $417K required buyers to have over a 620 Credit Score. The average credit score for all home purchasers in 2012 was 720.  Credit qualifying standards imposed by banks and mortgage originators will remain rigorous at best in 2013.

On the other hand the Consumer Financial Protection Bureau, who issues rules to protect consumers from irresponsible mortgage lending, has adopted a new rule requiring lenders to ensure prospective buyers have the ability to repay their mortgage. This new ruling also protects borrowers from risky lending practices such as "no doc" and "interest only" loans that contributed to many homeowners ending up in delinquency and foreclosure after the 2008 housing collapse.  This new ruling will be preliminarily ushered in during the 2nd Quarter of 2013.

All signs point to continuing recovery for the Housing Market.

For more predictions about the housing market in 2013, check out these resources:

• US News — Top 5 Predictions for the Housing Market in 2013
• Trulia — Housing in 2013: What’s In, What’s Out
• CFPB Rule — Press Release

                                                                                                                                     
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