A variety of economists had predicated that the real estate market will recover in 2012, but many are now shifting their predictions to 2013.
According to Zillow, homes values will continue to drop by about $681 billion in the next year, which may sound high, but it’s much better than the $1.1 trillion that was lost in 2010. Jed Kolko, Trulia’s chief economist, said that “It’s unlikely prices will rise next year in most markets.”
On the plus side, sales of single-family homes hit a seven-month high in November. This is partially due to mortgage rates hitting an all-time low, and it shows that there’s hope. If loans are available and home prices are low, more people are able to purchase properties as opposed to renting.
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