I came across a very good article in regards to the 2013 housing market that I think is very accurate and offers good tips for both buyers and sellers. I added some of my thoughts into the article pertaining to our local market area.
Overall the housing market has stabilized and there is no reason to be fearful of further large declines in property values. There should be an increase of buyers looking, trying to take advantage of the continued low interest rates and low house values. This does not mean that sellers can get all excited and think they can get a lot more for their houses. There will be several of you that still will have a difficult time breaking even. It will take a few more years before we will see the values increase to levels of 2005-2007.
Pricing property is still very important. The majority of people buying are getting mortgages and the appraiser that is hired by the bank will have the final say as to the value of the home.
If you want to buy, you have to be ready to make an offer. If it's a new listing a low offer will not be beneficial to you. However, if a home has been on the market for a while you might be in a better position to negotiate. It all depends on the property and the seller's motivation. Your buyer's agent will research the situation and guide you along as to the best way to proceed.
Here are a few things to watch in 2013 that could change the housing market:
Fed chairman Ben Bernanke is lifting housing by buying bonds to keep mortgage rates low. How much longer can he keep that going?
The loss of mortgage deductions. Should the tax break on mortgage interest get cut, it would throw cold water on the real estate recovery.
Sellers sit on the fence. Homeowners could remain on the sidelines as the ranks of buyers grow. In that case, the inventory of homes would shrink even more, lifting prices faster than expected.
Homeowners get bullish. A spate of home construction is already taking place in several major markets. In those regions, the housing stock is likely to stabilize, keeping price gains modest.
Banks loosen their grip. If tight lending standards return to historical norms, realtors argue, the market could see an additional 500,000 to 700,000 home sales next year.
Employer confidence rises. Since jobs are the engine of the housing market, a pickup in hiring later in the year, which economists are predicting, could accelerate a real estate rebound in the second half of 2013.
This information is taken from the article - Real estate: Find opportunity next year
By Carla Fried, CNN Money