Hanging your Hat in 08077 - Looking into the 2013 Real Estate Magic Ball

Is it time to sell?  Is it time to buy?

Recently, the Wall Street Journal hypothesized that home values will rise as much as 9.7% nationally in 2013.  Aside from the impact of the "fiscal cliff" currently facing us, there are other factors that will prove or disprove their pronouncement.

1.  Interest rates are not expected to rise dramatically until 2015.  Evidence?  At the end of the year meeting the Federal Reserve central bank policy-making board decided to leave rates untouched until unemployment rates fall to 6.5% provided inflation rates stay low.

2.  Home values/costs will rise in 2013, due to a couple of factors including the rule of supply and demand.  Over the last year, the inventory of homes for sale has steadily decreased nationally and locally.  Some markets experienced bargain pricing, while others found the pent up need for housing translated into six months of a surge in home sales.  Less inventory available translates into less competition and better sales prices for homes on the market.

Locally, Burlington and Camden counties both experienced

hefty increases in the number of homes sold in November, 2012

vs. 2011.  Burlington County sales rose by 50%;

Camden County sales rose by 31%. 

3. If unemployment slowly continues to decrease, there will be more buyers in the market.   Unemployment rates negatively impacted not only buyers seeking to move up in housing, but also kept first time buyers out of the market in 2012. Unemployment among young workers was 9.2% compared to 8.7% for all adults on average.  The gap has narrowed recently.  

4.  Qualifying for a mortgage may be more difficult in 2013.  While it is important to keep a good gredit rating whenever you are contemplating purchasing real estate, it will be even more important going forward into the new year.  FHA is re-evaluating the minimum FICO scores it will accept for its varied programs, and recently changed the minimum score of 600 to a minimum rating of 640 for some programs.  The federal government is reviewing actions to insure that loans created by banks and financial institutions are viable and backed by solid assets, compared to the unrealistic mortgage terms granted five years ago.

Your local perspective:

Cinnaminson, Riverton, Palmyra and neighborhoods adjacent to the 08077 zipcode, continue to be highly desirable locations.  These towns are close to employment centers like Philadelphia and Trenton, have well-rated schools, low crime rates and are family centered.  Housing choices include townhomes and condos, age qualified communities, and a variety of residences from historic homes, to classic split levels and colonial styles.  Most have hard wood floors and spacious rooms per home designs of the 1960's, and sit on lots with mature plantings and space to garden.  

If you have a friend or family member seeking a great place to live have them browse Zillow listings this January.  The unofficial kick off of the spring housing market happens on SuperBowl weekend.  Stay ahead of the crowd and find a great house at a great price and enjoy 2013 hanging your hat in 08077.