Categories
Alison Kennery
Darlene Dolan
Joy Baker
Press Releases
RE/MAX Insight
RE/MAX International
RE/MAX New England
Sweeney & Sweeney, LLC
The Browns
Archive
February, 2012January, 2012
December, 2011
November, 2011
October, 2011
September, 2011
August, 2011
June, 2011
May, 2011
April, 2011
March, 2011
February, 2011
January, 2011
December, 2010
November, 2010
October, 2010
September, 2010
August, 2010
July, 2010
June, 2010
May, 2010
April, 2010
March, 2010
February, 2010
All
2012 Housing Market Outlook & Forecast Report
January 18, 2012, by RE/MAX InsightBy RE/MAX of New England - Last updated: Wednesday, January 18, 2012
Employment, Consumer Confidence Needed to Grow Housing Market in 2012
“New Normal” Has Arrived for Buyers, Sellers
Historically low interest rates, renewed interest by investors, and job growth helped provide modest stability to the real estate market in 2011, according to RE/MAX of New England. Although the first six months of 2011 failed to keep pace with the first six months of 2010, fueled largely by the pending expiration of the federal tax credit, the second half of 2011 witnessed much stronger sales.
Federal Reserve Chairman Ben Bernanke, in a report to Congress, recently declared the weakness in the real estate market a “significant barrier” to a meaningful economic recovery. The Federal Reserve, as part of an effort to bring stability to the real estate market and the overall economy, has pledged to keep key interest rates at historically low levels until mid-2013. There is hope in the real estate community that this will help solidify consumer confidence, which remains low, and, with interest rates now in the 3% range, entice more people to purchase homes.
“There is no indication that leads me to believe we will have any significant uptick in the market,” said Jay Hummer, Executive Vice President and Regional Director of RE/MAX of New England. “However, barring a financial catastrophe in the marketplace, it appears that we’ve hit the bottom, and we can expect to see a very slow and very gradual increase over the next couple of years.”
Home values continued to slip in 2011. Just one out of six New England states, Vermont, experienced an increase in sales price. However, home prices in New England declined at a slower rate than other parts of the country. According to the Clear Capital Home Data Index, U.S. home sales prices declined by -2.1%, marking the fifth consecutive year that home values have decreased. Four New England states outpaced this national trend by experiencing smaller declines. “The housing market was fairly similar to the market in 2009. There was a decrease in units, volume, and pricing in most segments,” Hummer said.
