When we look back on 2012 a long time from now, it may be viewed as the first year of the recovery, the year in which real estate reversed its course and moved in a more positive direction. With that in mind, here are 13 reasons why we can look forward to next year's real estate market:
- There’s greater optimism about increasing home values.
- More new households are forming.
- Homebuyers are feeling a greater sense of urgency.
- Home ownership remains a goal of the Millennial generation.
- Foreclosure starts are falling to pre-2008 levels.
- Interest rates should remain low through next year’s selling season.
- Loan demand for home purchases is climbing.
- More Americans say it’s a good time to sell.
- The number of improving housing markets continues to rise (led by Silicon Valley).
- Job creation is expected to continue to provide a much-needed boost to the local housing, rental and commercial real estate sectors.
- Housing starts are picking up as builder confidence increases.
- As housing values rise and equity returns, fewer home owners are underwater.
- Real estate will continue to play a large roll in our overall economic recovery.
That is not to say there aren’t challenges—Lending remains tight, there are regulatory challenges and the fiscal cliff loom ahead.
All that being said, our Silicon Valley real estate market appears to have a bright future ahead in 2013.