National home prices are expected to climb 0.6 percent in the next year, according to the latest home price report by Fiserv Case-Shiller. But over the next five years, home prices are expected to rise 3.3 percent.
According to AOL Real Estate, the following cities are looking good when it comes to annualized changes in home prices between the third quarter 2012 and the same time period 2017. Some of these markets have been hit by big drops in pricing but are now beginning to come back. All the below-named cities are expected to see growth ranging from a low of 8.1 percent to 9.1 percent. Although L.A. did not make it to the list, it is predicted that the Real Estate Market will grow as a whole and remain stable for the years to come, and 2013 is believed to be a BIG year for Real Estate. I believe it is safe to say the Market is in full Recovery mode shifting into a stable and prosperous Market.
Home buyers can expect a more competitive market in 2013, and should start the mortgage lending process at least three months before they plan to start seriously looking because experts expect the process to take several months under new lending standards. House hunters should be ready to deal right away as inventory is expected to remain at low levels throughout the year.
Increasing home prices will bring reluctant homeowners off the sidelines and will encourage home buyers waiting for rock-bottom prices to jump in. According to the Mortgage Bankers Association, applications for new-home loans are expected to increase 55% this year.
The top seven cities, shaping up to be the best markets are:
- Medford, Oregon
- Santa Fe, New Mexico
- Panama City-Lynn Haven-Panama City Beach, Florida
- Sebastian-Vero Beach, Florida
- Carson City, Nevada
- Santa Barbara-Santa Maria-Goleta, California
- Reno-Sparks, Nevada.
Thanks for reading,
The Inman Team