5 Top housing trends in the first quarter of 2012

If you're thinking of buying a home, then I personally think that this is the best time to do so as this is still a buyers' market. The low prices and low mortgage rates are here to remain for some more time. Those who wanted to refinance their home for quite sometime now, can also go for it now as the rates are quite low now.  Some of the housing and mortgage trends you can expect to see in the first quarter of 2012 are listed below:

1. Property prices begin to become stable: The property prices have bottomed out in most of the areas. So, it is expected that henceforth, the property prices will begin to become stable. Many housing experts are also of the opinion that there's not much room for prices to drop down further. So, this can be a great time to buy your dream home.
2. Refinance may increase due to new HARP: Underwater borrowers have always remained tensed and have anxiously awaited for the day when they will be able to benefit from low mortgage rates. They won't have to wait much longer. The New Home Affordable Refinance Program or HARP 2.0 will allow borrowers to refinance and get a low mortgage rate irrespective of how much underwater they are.
   
3. Home loan rates to remain low: It is expected that mortgage rates will continue to remain low in the first quarter of 2012. However, this will be mainly at the expense of the slow economy. The Mortgage Bankers Association (MBA) has estimated that the average 30-year fixed rate will be around 4.1% during the first half of the year. Thus, the buyers and homeowners will get some extra time to take advantage of the historic rates.
4. Investors and foreign buyers will come to the market: You will have to compete with local and foreign investors if you wish to buy a home now. A large number of homes that were sold off in 2011 have been purchased by investors or foreign buyers who want to take advantage of the low prices as well as the weak dollar. Buyers from the United Kingdom, China, Brazil, Canada, Mexico, etc., have been purchasing vacation and investment properties in the United States.
5. Short sales and foreclosures going speedily: Well, the short sale and foreclosure process has improved and it does not take much time to complete the process. So, those buyers who didn't considered the option of purchasing a short sale home because lenders approval issues may now reconsider this option in 2012.  Apart from this, bank owned properties are also selling quickly.