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Real estate going stronger

According to an expert, the real estate market is on its way to recovery, specifically picking up pace in 2013. Consumers are said to be spending money and most of that is going to purchasing new homes.
One of the factors for such spending on the housing market is employment. According to Danielle Hale, director of the housing statistics for the National Association of Realtors, the housing market is an excellent source of recovery or growth for the country’s economy.

However, even with the recent good news, another challenge comes: inflation. Currently, mortgage rates are not picking up speed but are foreseen to rise. And even when sellers are seeing good fortune on the increasing valuation of homes right now, if interest rates get too high, buyers may be wary of purchasing properties.

Another indication of the housing market recovery is the surge of home sales. This may be due to a lot of factors, main of which is increasing households. Getting married, having children or moving in together may cause more demand for new homes.

Yet with the increase in demand for residential real estate, many are seeing a shortage in the inventory. During the last real estate bubble, construction for homes practically stopped in several areas of the country. Many real estate experts are saying that getting home listings are harder than finding multiple bidders for a property. As an answer to the scarcity of residential properties, many developers are now planning on new projects.

In 2013, unemployment rate in the country will average at 7.3 percent, according to Hale. Also, Hale foresees a continuing increase in home values hitting 5.1 million in 2013 and 5.4 the year after.

Another yet surprising factor for the market recovery is social media. Realtors are now making transactions and advertising to various social media.

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