Edina Realty's president offers 2013 local market predictions

Looking into 2013, national real estate and economic professionals are optimistic that the market will continue to see steady recovery.

Local predictions from Edina Realty president Barb Jandric

Expect historically low rates to continue; rates are not expected to exceed 4 percent
Traditional home sellers will dominate the market again in 2013
New construction will be on the rise in Minnesota and Wisconsin and will be visible on a level unlike what we have seen for many years
Some value appreciation is expected to occur – about 4 - 5 percent
Upper bracket homes sales and prices, which tend to be the last to recover,
will stabilize and start to increase
Expect continued challenges and increased information required to secure financing

Home values are expected to continue to increase 2 - 3 percent nationally
Mortgage rates may start to rise in the second half of 2013, but are expected to stay below 4 percent
Household formation is expected to increase by 1.20 to 1.25 million

Homeowner equity should see a trillion dollar accumulation next year, based on price increases of 4 - 5 percent
Based on the expected increase in household formation, Yun predicts a mulit-year housing market recovery
Yun described the current all-time low mortgage rates as a "once-in-a-lifetime opportunity"

Home prices will rise, but modestly
As the job market slowly improves, household formation will increase as adult children can afford to leave their parents' homes
The increase in rents has made ownership more affordable in many areas; this will probably continue