Translate this page
In the coming year, housing prices will rise and foreclosures will decline, thus increasing the amount of short sales.
In the coming year, housing prices will rise and foreclosures will decline, thus increasing the amount of short sales.

Coming year to be positive for real estate industry


Thursday, December 27th, 2012
Issue 52, Volume 16.
Mike Mason
Mason Real Estate
You need Flash player 8+ and JavaScript enabled to view this video.


In 2012, we saw the continuation of the housing recovery in California with solid sales volume and price increases throughout much of the state. In addition, many were helped via loan modifications and short sales from being underwater on their homes.

Several have said that this recovery is artificial. There is no question that government intervention played a major role and will most likely continue for the foreseeable future. The biggest change in 2012 was the dramatic decline in foreclosure sales. Per ForeclosureRadar.com, over the past 12 months, notices of default plunged nearly 50 percent year after year, foreclosures sales fell 27.7 percent, and REO inventories declined 34.9 percent during that same period.

For 2013, Realtors largely expect more of the same. Demand will remain strong thanks to low interest rates and affordability. Available homes will remain limited largely due to foreclosure intervention via government programs. Prices will rise but constrained by appraisals, via lack of comps, and bidding wars beyond recent sales. This practice will continue to make it difficult for first time home buyers.

The National Mortgage Settlement Program, the Home Affordable Modification Program, and the California Homeowner Bill of Rights legislation that goes into effect Jan.1, 2013, will all continue to put downward pressure on foreclosures and foreclosure inventory.

Foreclosures have been a significant source of supply since 2008 and their continued decline will hurt sales volume in 2013. Short sales will likely increase as a result. Banks benefit from short sales over foreclosures including faster disposition, better recovery of value, less political opposition, and reduced risk of homeowner lawsuits. However, if the tax exemption established under the Mortgage Forgiveness Debt Relief Act of 2007 does not get extended past its expiration date of Dec. 31, this too will affect some homeowner’s decision to short sale.

We still face a number of risks in 2013: the so-called fiscal cliff will be resulting in higher taxes, the Middle East continues to be highly volatile, and the Eurozone debt crisis continues to make headlines.

Despite these risks, we are still optimistic regarding housing in 2013. Fewer people will be underwater by year’s end and housing will prove to be a safer investment for your money than elsewhere.

Mike Mason, broker/owner of Mason Real Estate can be reached at (951) 296-8887.


 

2 comments

Comment Profile ImageConnor MacIvor
Comment #1 | Friday, Dec 28, 2012 at 8:52 am
Hey Mike,

I have to agree, while the world market differs greatly from our local market, I have seen similar results in the Santa Clarita Valley. Today NAR published a report about pending home sales being up from 1 year ago within the U.S. This is good news for sellers for sure. Do you think that interest rates are going to go even lower in 2013?

You can correspond to me on our Santa Clarita real estate site at www.Paris911.com - Thanks, Connor
Comment Profile ImageMilton
Comment #2 | Sunday, Feb 24, 2013 at 5:17 am
Everyone is wrong. The greater maoijrty of real estate agents and mortgage brokers are honest and upfront. Of course, it's the schnooks' who get all the attention (and, as a real estate broker, I will certainly admit that those schnooks exist). Try to find some friends and/or work colleagues who have purchased homes recently. Ask them who they used, and how pleased were they with the service provided. When you find agents with whom your colleagues/friends were pleased, set up interviews with them prior to your search, so that you can get a feel of how you might work with those folks. Do NOT necessarily look for a high producer'. Some of them got that honor because they ramrod deals'. In many occasions, a newer agent might serve you better. They are generally willing to work hard to gain your business, and have not yet had time to learn all those nasty ropes'.Ryan's points are mostly correct, save for one. It is not neccessary to avoid listings from the same agency for which your agent works. Example ? My agency holds 70% of the listings in the area (we have 500+ agents and 14 offices). I would not recognize 75% of them by face.)

Article Comments are contributed by our readers, and do not necessarily reflect the views of The Valley News staff. The name listed as the author for comments cannot be verified; Comment authors are not guaranteed to be who they claim they are.

 

Add your Comment


Name

Images, Formatting, or HTML is not allowed : plain text only. You may post up to 5 website addresses within your comment.




Disclaimer

The Valley News has tightened its' policy regarding comments.
While we invite you to contribute your opinions and thoughts, we request that you refrain from using vulgar or obscene words and post only comments that directly pertain to the specific topic of the story or article.
Comments that are derogatory in nature have a high likelihood for editing or non-approval if they carry the possibility of being libelous.
The comment system is not intended as a forum for individuals or groups to air personal grievances against other individuals or groups.
Please, no advertising or trolling.
In posting a comment for consideration, users understand that their posts may be edited as necessary to meet system parameters, or the post may not be approved at all. By submitting a comment, you agree to all the rules and guidelines described here.
Most comments are approved or disregarded within one business day.

RSS FeedFacebookTwitter



Advertisement for Crown Hill Pizza





Subscribe


Most Commented


Reach Local Customers



The Valley News The Valley News
760-723-7319 - 1588 S. Mission Rd. Suite 200, Fallbrook CA 92028
All contents copyright ©2014
About Us
Earthquake Information
Business Listings
Contact Us
Letter to the Editor
Report a website error
Sitemap
Online Digital Edition
RSS Feeds
Login