The New Year is just around the corner, and Freddie Mac has released their economic and housing market outlook for 2013.
According to the lender, long-term mortgages are expected to remain at record lows through the first half of 2013 and will rise steadily in the second half of the year.
Current mortgage rates are less than 4 percent, which is why the Chicago real estate market is considered a ‘buyer’s market.’
However, the national supply of homes for sale decreased 20 percent from 2011, which means that in six months, the market could switch in favor of sellers.
As far as housing prices are concerned, Freddie Mac is predicting that the average U.S. home price will increase by 2 to 3 percent. Home prices have been steadily increasing in the past eight months as the decline of foreclosed home sales leads the market towards recovery. Investors are also buying inexpensive homes and turning them into rentals, which is also helping to fuel the price increase.
While no one can say for certain what the next year will hold, with mortgage rates expected to stay low through the next six months, you may want to consider buying a new home sooner rather than later.