As the new year quickly approaches, recent reports are trying to predict what the country may see in the nation's housing market and mortgage industry during 2012.
According to Inman news, the nation's housing market can expects to see even more foreclosures in 2012.
This is a result of the revival in the foreclosure processing of distressed homes which were momentarily put on hold in wake of the robo-signing scandal and other ongoing legal debacles. Subsequently, there was a significant buildup creating a large backlog in the foreclosure pipeline. As a result, it may take lenders many month, or even years, to foreclosure on households currently in default.
However, as lenders start to work through these backlogs, an upswing in foreclosures flooding the housing market may be the result.
Additionally, Inman predicts that due to the expected foreclosure spike, prospective buyers purchasing real estate-owned properties and short sales will start to be the new normal since these units will start to represent a dominating portion of homes on the market.
However, as more homeowners shift their gaze to distressed properties to capitalize on low prices matched with affordable mortgage rates, Inman says that it will be up to brokers to educate them on the process, since it can be slightly different than a standard home transaction.
Additionally, the news source anticipates housing markets where the local economy is powered by the tech industry will continue to have hot real estate markets next year. The is a result of young employees entering the housing market to capitalize on newly stocked bank accounts to purchase their first homes.
Inman anticipates prospective homebuyers to become more realistic about the national housing market. During recent years, many of these individuals were waiting for one grand event to turn the housing market around, but as the years drag on, many of them figured out that this will not be the case.
Instead, buyers may starts to base their real estate plans around today's low home prices rather than hoping for a miraculous market comeback that has remained elusive so far. In addition, they may start to plan around assumptions that there may be very little, to no appreciation of their home values for years to come as they make more conservative estimates regarding their owner personal finance and how they will grow in the future.
Meanwhile, National Mortgage Professional Magazine has attempted to paint a picture of key trends that are likely to impact the mortgage industry during 2012.
According to the news source, mortgage rates will continue to remain attractive to buyers and homeowners looking to refinance through at least the first half of the new year due to a strengthening U.S. economy and growing sovereign debt.
Additionally, the magazine reports that home values could slowly start to stabilize as the nation's housing market reaches rock bottom, but is expected to occur based on location. Areas that have seen stable home prices and a low foreclosure rate could potentially make the quickest comeback, while other areas work to clear foreclosure backlogs that continue to saturate local housing markets.
Meanwhile, as 2012 marks the beginning of the coming presidential elections, it could be an unstable time in the mortgage industry as it tries to cope with regulatory uncertainty. According to the source, the housing market and mortgage industry will be focal points on which candidates spar over while campaigning.
According to the source, 2012 may also give rise to new key industry leaders in the mortgage marketplace. However, this may not mean just new individuals, but rather a new focus on efficiency, accountability and ethical behavior.
