The first report produced by the new research division at Auction.com states a recovery in the housing market has begun but cautions that sustained economic growth and single-family inventories will continue to affect the pace of recovery in 2013.
Auction.com Research is led by Peter Muoio, founder of the research and consulting firm Maximus Advisors, which Auction.com acquired in December. Muoio has also served as managing director and global head of Deutsche Bank’s real estate research group and previously founded and led the real estate research group at Bankers Trust Co.
“While the stimulus package temporarily boosted housing demand, 2012 was the first year that recovery was driven by better underlying economic factors. Foreclosures have also tapered off, helping to improve the housing inventory situation, but the market remains very cautious,” said Muoio.
“Though interest rates are low, banks are still very conservative in their lending practices and buyers are nervous. Both buyers and sellers are awaiting clearer direction on the market recovery, producing little movement in the market.”
Among the driving factors of the housing market will be household formation and desire for homeownership. Muoio added, “The housing inventory correction has been and is likely to continue to be a very bumpy process.” However, he expects the tight supply and higher prices to be an impetus for potential sellers to list or relist their properties.