Despite recent turmoil for the financial services and mortgage banking industries, CoreLogic declared 2012 a ""pleasant economic surprise"" in the company's most recent MarketPulse survey. Pointing out positive trends in the study's opening remarks, CoreLogic noted, ""Gladly, the risk of a recession due to the shocks of 2011 has been largely averted. Job creation has fared better, certainly over the latter part of 2012.""
According to CoreLogic, the housing market is starting 2013 ""poised for further recovery,"" and the firm is calling for improvements in pricing, sales, and delinquency rates. As for key components influencing growth in the year ahead, CoreLogic cited declining real estate owned sales and nationwide decreases in inventory.
""Looking forward, CoreLogic expects continued market improvement, with home prices expected to rise 6 percent in 2013 due to high affordability fueling steady demand, a lower level of REO sales, and a low inventory of unsold
homes,"" explained the organization's analysts. ""Home prices will play an even more crucial role than usual in the market over the next two to three years. Rising home prices will slowly release the pent-up supply of inventory as under-equitied borrowers are unlocked and opportunistic sellers begin to provide relief to tight inventories.""
Sam Khater, CoreLogic's senior economist, commented, ""Many trade-up borrowers have been locked out of the market because their outstanding loan balance is greater than the market value of their home. Current owners need to sell at prices high enough to extinguish their debt and provide equity for the next home purchase.""
Acknowledging the impact of recent changes to housing finance policies, CoreLogic stated that the future remains ""hopeful,"" as rising home prices provide a ""buffer against policy headwinds.""
Referencing cumulative statistics from 2012 to support its projections, CoreLogic reiterated that its Home Price Index appreciated by 6.3 percent year-over-year as of last October. Additionally, the company referred to increases in the market's lowest tier - those selling for less than 75 percent of the median price - stating that pricing in the sector had displayed the greatest improvement, rising 8.3 percent year-over-year as of October 2012.
The company's chief economist, Mark Fleming, indicated optimism for the year ahead as he shared his perspective on housing's past 12 months, concluding, ""Housing was clearly one of the past year's biggest surprises. Even without significant gains in income, housing mounted an impressive recovery in 2012.""