April 6th, 2012
What goes up must come down, and what goes down must also come up. The housing market saw a huge rise in the early parts of the year 2000. It kept growing and growing, and then like a balloon that has been inflated past its breaking point, it popped. Houses that were worth $300,000 quickly lost their value. In some cases homes were reduced to half of what they had just sold for weeks before. This type of housing bubble popping scenario is not the end of the world. It was bound to happen, but things have since settled, and it is time for the housing market to grow once again. It can only go up from here.
Analysts are predicting that the housing market will see a good rise in sales in the year 2012. Some are saying that the increase could be somewhere between seven and ten percent. If this turns out to be true, then this could be the largest increase that the housing market has seen in the last five years.
Real estate professionals are still battling with common contract failures. In the month of February, Realtors saw 31 percent of all of their contracts fall apart. In most of these cases, the buyer was not pre-qualified for a home loan, and their mortgage application was denied. For others, the deal fell through because the the appraisal came in for less than the value of the home. That could all change as 2012 starts to pick up.
There has been a slight improvement in the economy. This could help people that were previously denied a mortgage. If the economy continues to grow without so much uncertainty, then banks become more comfortable approving homes loans, but there is a little bit more to it than that.
The real estate market has to prove itself again to investors and banks. There were a lot of banks and investors that lost a lot of money when the real estate market popped. What was once a guaranteed safe investment became questionable over night. If the real estate market continues to see steady growth like it already has for most of the year, then banks and investors will be much more likely to put their money back into real estate. This would be good news for everyone involved in the real estate market. Homeowners will see the value of their homes increase, and people looking to purchase homes will be more likely to get what they want.