Continuing from our post last week, we will continue to make some real estate industry forecasts for 2012. We have four for you this week and we will have a few more for you next week as well. Let’s take a look at what we can expect in the coming year.
1. The Return of the Buyer
When consumer confidence dwindled away, so did the buyers. How could you blame them? The market was unsteady and hard to predict. Buying anything more than a few thousand dollars in a tough economy, especially housing, was a hard decision for many people to make in 2011. But as economic conditions improve throughout 2012, buyers will regain the confidence they need to start buying homes again.
2. More Foreclosures
The “shadow inventory” of foreclosures which has been on the rise since the robo-signing problems of 2010 will finally affect the market. Distraught properties sell at discounted prices, so they will impact the housing values of the neighboring homes in the area which are not distraught.
3. Prices Fall, Short Sales Increase
Because there will be more foreclosures in 2012, neighboring home prices will also continue to fall. We know that is how things work: an increase in foreclosures means decline in home pricing. This also affects our first point regarding the return of the buyer.
4. Great agents (like yourself) will walk into 2013 very happy
This is of course assuming the Mayans were wrong and the world is not going to end on December 21 of this year. So, why will great agents succeed? Because great agents are versatile, resilient and, resourceful. They know how to take advantage of marketing techniques and efforts to make sure the home buying process never stops despite tough economic conditions.
Have a forecast you would like to make? Share it with us in a comment below. See you next week!
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