Finally there is some good news for investors who are planning to invest real estate in 2013 but are bothered about the continuous decline of the sector for the past several years. It is in fact a matter of surprise for many since property market was facing downfall since 2006 and lately showing signs of revival when the economy is still somewhat sluggish. Current statistics reveal that property sales has amplified significantly in the last 6 months which certainly is against some major financial predictions made in 2012 which suggested the further collapse of real estate in 2012 and 13. December and January experienced the largest incline among the 6 months of growth and new home sales rose to 17% in January 2013 which is considered the highest raise since 2006.
Now many of you might be wondering about how the housing market suddenly gained such progressive momentum and currently making quite a buzz in the market. Well what you must know is that recovery and growth of the property sector didn't happen overnight and was in fact a pretty long process that initiated somewhere in mid 2011. Some of the major factors that contributed to this unexpected growth of the real estate sector include the steady increase in jobs which enabled people to buy and invest back in properties and the reduction on property mortgage rates by the federal government. Both these factors played a strong role in the slow augmentation of property sales in 2012 and since sales improved property prices began to incline.
But even such strong and evident indication of the growth of real estate is not convincing enough for many property investors to reinvest in property since such signs of growth appeared in 2009 and investors who invested then under the influence of such temporary development faced severe consequences later. But as per many market expert and economic analyst the present growth and expansion of the property sectors is here to stay and is meant to remain for the long haul. Prices of home prices in 20 major cities in US leaped 6.9% which is the record highest increases since the 6.5 increase in 2006. In fact the annual increase in property prices for the financial year 2012 was calculated to be 7.4%, thanks to the consecutive boost in home sales in October, November, and December.
Moreover recovery picked up further steam as the number of homes sold in January 2013 is around 15% more from December 2012. With such solid records, experts believe that housing sector has nothing but incline further in 2013. With the current market running bullishly and other investment sectors and stocks performing better than expected; more money will flow in the real estate market in the coming months. And with increasing property prices in major cities like San Francisco, Phoenix, Los Angeles, etc. 2013 looks promising for real estate investment since prices are relatively low at present and by buying property now investors can make more from it when property prices augment further. Some of the locations which experienced significant growth lately and idle for investors to invest in 2013 are San Francisco where real estate prices jumped 14.5%, Las Vegas with 13% increase, Los Angeles and Miami with 10% increase, 23% in Phoenix, and a 13.5% increase of property values in Detroit.