In my monthly email newsletter, Chicago Real Estate Update, an article was included about the upcoming year – what various experts say about what we can expect with the 2013 real estate market.
Below, I’ve reprinted the article, as well as a few points to consider that have recently been posted in the news:
- Housing Affordability Index sets new record in 2013
- November Pending Home Sales on the Rise (NAR)
- Owning Beats Renting in Chicago – David Lee Matthews in Crain’s
- Buying is 45% Cheaper than Renting
- IAR – Home Sales and Prices Edge up in November
- Chicago Home Sales Up 36% in November
2013 HOUSING MARKET PREDICTIONS
From Anne Rossley’s Chicago Real Estate Update
The housing market is looking good for 2013, but there are many mixed messages and inaccurate predictions found in today’s market reports. Is now a good time to sell or should you wait? Industry data says that prices have hit bottom and we can expect small but steady increases over the next few years.
– It was recently reported by Illinois Association of REALTORS® (IAR) that the Chicago Primary Metropolitan Statistical Area (PMSA) was up for the number of homes sold in October 2012 by 44 percent and the median home price was up 2.1 percent.
– Lawrence Yun, chief economist and senior vice president of research for the National Association of REATLORS® (NAR), predicts that the real estate market will see a slight pull back in the number of transactions and pricing in the next several months. However, 2012 will still finish strong with a one to four percent increase in home prices.
– Dr. Geoffrey J. D. Hewings predicted something very similar. Director and professor for the University of Illinois, Dr. Hewings is hired by IAR for monthly real estate forecasting. He estimates an average year over year increase of 3.5 percent.
With an expected pricing increase of 6 percent over the next two years, double digit increases will not happen in the near future. Interest rates are at an all time low, making it the perfect environment to meet with a real estate professional to access your needs and expectations.
Lawrence Yun, NAR Chief Economist, discusses the real estate market:
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