Here is some insite with predictions by Frank Nothaft, Vice President and Chief Economist of Freddie Mac on December 10, 2012.
Read below or check out the video focusing on some housing predictions by Mr. Nothaft on expectations Freddie Mac feels will effect the market.
5 Expectations For The Real Estate Market in 2013
- Mortgage Rates – Freddie Mac expects to see rates below 4 percent throughout 2013, making purchasing your home easier for most buyers.
- Home Values – Freddie Mac believes there will be an average increase in the value of your home between 2.5 and 3 percent over 2013, with some neighborhoods outperforming this estimate and others underperforming, creating a national average increase.
- Growing Number of Households – Freddie Mac predicts that an additional 1.25 million households (net household formations) will be created in 2013, providing more demand for your home.
- Decreased Vacancy – As new households are formed, more properties will be filled, allowing for a natural decline in the vacancy rate.
- Less Refinancing for SFR – Though rates will continue to be low throughout 2013, Freddie Mac suggests that single family residences will be doing less of the refinancing while a substantial increase will be seen in multi-family lending, resulting from accelerated building of apartment and multi-family investment properties.