While 2011 proved to be a rocky road in the economy, there is much to look forward to in 2012 in the housing market- according to Dave Liniger, Chairman and Co-Founder of RE/MAX.
Speaking about the recovery of the US housing market, Liniger says that the key to activity lies in the continuation of low interest rates.
Many believe that 2012 may the year of turnaround for the beleaguered US housing market, but Liniger draws on several factually based elements to make his predictions for the year to come.It has been stated by the Federal Reserve that homeowners can expect low interest rates to continue through the next few quarters. A move like that has been unprecedented, and provides a unique opportunity in the housing market.With interest rates low, of course, there will be more buying activity- which will in turn bring some life to housing prices that have remained depressed throughout the recession, and afterwards.He believes as well, that inventories will continue to rise, as foreclosures will continue to rise too.
There will be great buying opportunities on the market.He also sees the rate of homeowners fall, perhaps suggesting that those who may have been on the fringes of homeownership prior to the subprime crisis are now removed- and that those who continue to be homeowners have healthier financial situations, which contributes overall to economic health.With prices continuing to be low, there will likely be a continued interest from foreign property investors. Liniger puts 25% of purchases next year in the hands of investors. Canadians lead foreign property investment in many pockets of the country, in appealing areas like Arizona and Florida.Linger also thinks that 2012 will be the year that will see the resurgence of the real estate agent. In times of trouble, people need guidance and support that training and experience provides. He thinks that more homebuyers will be seeking this in the coming months.