The Home Price Forecast for 2013 by Nashville Real Estate Now.
Watch the video and See the transcript below.
The Trascript of the Video
This is Steve Jolly with Nashville Real Estate Now and thank you for stopping by today. I wanted to take a minute to talk about the Home Price Forecast for 2013. This is a topic that almost everyone find interesting. This is the good news. In my research, I found that most experts predict that we will see continued price appreciation through the end of 2013.
They expect the average price nationally to increase by 1%, and in Nashville most experts think the average price will increase from 2 – 3%.
Housing is expected to lag behind other sectors. The devalued dollar has made our goods more competitive overseas so our exports are up. The low interest rates have also sparked an increase in business investment. These are some of the hottest areas of our economy.
What could derail the housing recovery?
The first possibility is interest rates. We are at record lows for interest rates. They have nowhere to go but up when the economy kicks into gear. Many experts expect interest rates to be close to 5% at the end of 2013. This is a problem, but not our biggest concern.
The Top concern for the Recovery is the “Fiscal Cliff” in January 2013. This was a Congressional Compromise in order to raise our debt limit last year.
“The Cliff” includes $500 billion dollars in tax increases and spending cuts that automatically start this January if no action is taken. Many think this will derail the Overall recovery to include Housing.
Congress is waiting until after the election to tackle this issue. Each side hopes to gain traction in order to get their recovery plan enacted. I would urge you to put some heat on your representatives. This issue is too important for political grandstanding. I expect Congress will address this issue in November. It is our job to make sure they do it.
Thanks again for watching this video! This is Steve Jolly with NashvilleRealEstateNow.com. Take Care!
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