The housing market has been in a state of doldrums for almost 5 years since the onset of 2007 recession with decreasing home prices and scarcity of consumer demand. Things were much worse initially in 2008 and 2009, but the situation began to improve and housing sector faced a slow paced recovery since 2010. Recovery is common after a recessional phase or a market collapse and for the housing market recovery was slow in 2010 but things started to gain momentum in 2011. In 2012, real estate markets improved further and property buyers increased in volume to an extent that housing prices came across a nationwide growth of 5 percent. Now with the advent of 2013 investors are speculating on the condition of housing and real estate market that we will face this year in the coming months. Even though things are appearing pleasant for the time being, real estate investors are bothered about the future of real estate investment since several dark predictions indicating market breakdown and a new recession in mid or late 2013 are doing the rounds since January, this year.
Investment expert Michael Lombardi provides a much relieving answer to this predicament by stating that the positive trends of real estate sector is likely to continue in 2013 as well. He points out that most of these predictions of economic collapse in 2013 is based on the current issues with Eurozone's continuing debt crisis, and the new currency war due to exchange rate manipulation by various nations; while the fate of real estate is predicated on the condition of the regional and national economy of United States that wouldn't be much effected by the mentioned contemporary foreign issues. More over several other real estate experts are of the view that if the present trends continue in the coming months, there will be a projected hike of more 1 to 2 percent on the present rise. Lombardi provides further guidance to investors by saying that although the future of real estate and housing sector is looking bright, factors like location will play a major role in deciding the fate of real estate investments. Seemingly housing investment will be more productive in areas like Loss Angeles, San Francisco, Phoenix, Sacramento etc. where projected growth will be around 7% to 12 % for the year 2013.