Real Estate Predictions for 2012

Planning to buy or sell a house this year? We asked local realtors what they predict real estate sales will be like in 2012. This is what they had to say:

"If you live in North Reading and are thinking of selling your home, you can expect a steady flow of buyers, if your property is priced right for the market. Based on today's interest rates, now is the best time to buy," Renaissance Realtors Owner/Broker John Magazzu said. "Prices are down, interest rates are down, and your purchasing power is the highest in years.  Today, the 30 year fixed mortgage rate is 3.9 percent - on a $400,000 home the payment would be $1887. If rates inch up to 4.75 percent, the payment would increase to $2086, which would then cost $71,640 more over the next 30 years."

Magazzu thinks that the market will remain steady and because more residents have jobs, the demand for housing will rise. 

"The market will stay steady with a decreased risk of more downward pressure in prices. The unemployment rate in Massachusetts is on the downtrend, more people with jobs will create more demand for housing in our local market," Magazzu said.

Having your real estate agent review comparable sales and provide you with a pricing strategy is crucial, Magazzu explained.

"If your home is on the market, this should be done by your agent on a bi-weekly basis," he said.

Janice Sullivan from RE/MAX Heritage said, "I believe we will experience a very early Spring surge in the local real estate market due to the mild weather. Buyers who usually are on hold until the ice and snow melts are already out in droves because of the extremely low interest rates which in turn has sellers scrambling to be first on the market. As long as we don't get buried in snow I expect the next few months to be very active."

Terry Tully from RE/MAX added, "I predict rates will stay steady also, and prices will continue to drift lower as we continue to deal with more short sales and foreclosures."

Owner/Broker of Classified Realty Group Maureen Giuliano is optimistic for the coming year. 

“Let’s face it. The economy is still in recovery mode and that has tremendous impact on the market. However, we’re fortunate here in North Reading. Prices didn’t drop as much as many other communities and prices have begun to stabilize. 2012 should see continued price stabilization and perhaps modest gains. We’re very optimistic about 2012. In fact, we’re anticipating our best year in business and good things for the North Reading market.”