Although a triple dip housing crash in 2012 may not seem likely to affect much in such a volatile economy, it will mark yet another year of difficulty.
By most estimates, a real estate crash in 2012 is pretty much inevitable and some analysts are predicting a 99% chance of recession. Those are insurmountable odds.
The fact of the matter is that the housing market this year has practically mimicked that of 2010, which led to a real estate crash at the start of this year.
If the current state of the economy continues on course and chances are that it will, the economy in 2012 will be stagnant.
Most recent evaluations are forecasting a 20% drop in the housing market that will cause yet another recession in 2012.
One of the major problems in real estate right now is the excess inventory, meaning that there are simply too many houses for sale and not enough qualifying buyers.
So, what does this mean for potential buyers and sellers? Homebuyers will continue to have difficulties securing mortgages and sellers can expect to have their homes on the market for a long time.
Selling your home at any time is stressful and it’s even more so during a recession. Anyone looking to maximize their chances of selling their house should consider remodeling or updating the home to help it stand out from the rest of the houses in the neighborhood.
Of course, remodeling is costly, but adding to your home’s value is almost always a good investment. Taking out homeowner loans is one way you can update the home without spending too much money out of pocket.
Homeowner loans are secured debts against your house, so be absolutely sure your job or emergency savings is stable enough to make payments in the event of the worst happening.
Many homeowner loans allow you to borrow several thousand dollars to put toward updated appliances, plumbing work, cosmetic fixtures and even bedroom or bathroom additions. Fixed interest rates are available and the debt can generally be repaid within 4-5 years.
In fact, now might be the perfect time to update your home while interest rates are low. Recent news from the Federal Reserve indicated that they plan on keeping interest rates exceptionally low until the middle of 2013, which encourages consumers to borrow money.
Since it’s as cheap to borrow money right now as it ever will be, taking out homeowner loans is a smart move. As long as the qualified borrower can afford the payments and sees no chance of losing income anytime soon, getting that remodel underway during 2012 will make your home shine on 2013′s market.
If you are unsure where to spend the money updating your home, focus on creating an open floor plan if the home doesn’t already have one.
An additional bathroom and at least three bedrooms are top priorities for most buyers and maximizing the home’s curbside appeal will stand out in the flooded real estate market.
Staying positive during another housing dip may be difficult, but taking advantage of the economy’s shortcomings now will really pay off in the future.
Guest Post by Les at MoneySuperMarket
