TODAY | January 07, 2013
>>> back now at 8:45. forecast for 2013 . home prices rose, largest gain in seven years. what can we expect this year? real estate contributor barbara corcoran has the inside information . good to see you.
>> good morning, matt.
>> you're optimistic about 2013 in some ways, aren't you?
>> in just about every way. who could not be optimistic? all the signs of the real estate market are saying things have turned around. we've had 13 months of straight increases in prices. overall, as you mentioned, prices have gone up almost 8%.
>> we just have gotten past a small portion of the fiscal cliff. we know that taxes are going up on the wealthier americans. do you think that's going to have any impact on the housing market ?
>> of course, particularly the capital gains tax , whether that happens or not remains to be seen. it was supposed to happen already and hasn't. it certainly will affect the third secondary home market. people will rush their homes to the market to avoid any capital gains .
>> when you look back at 2012 and now ahead to 2013 , talk to me about certain regions that are hot or not. and even certain cities.
>> definitely. certainly the one region that leads the parade is the west from seattle to san francisco to l.a. 20% of an increase in one year alone. that's mind boggling. no one saw that thing coming. the only part of the country that hasn't turned the corner yet is the northeast. it's just about ready to do that.
>> you think it will pop in the year ahead?
>> it's already starting to change.
>> let me go through a laundry list of things that are so vital to the housing market . mortgage rates .
>> people think it's a god-given right, mortgainterest rates. we should have a neutral climate going into the new year.
>> will conditions to borrow get better?
>> you put a finger on what is wrong with the financing market. you need tremendous fico scores. the average person turned down had a 720 score.
>> what do you see happening with foreclosures?
>> they've been diminishing for two years straight. it's not a problem that's gone. but it's given people a lot of bargains that you just can't get anymore.
>> these are tips for people it both trying to buy a home and sell a home. let's start with the buyers. one of the things you have to do is buy the house that will always sell first.
>> do you know why? the house with the sunshine, with the school district , the house on the best block always sells better in good markets and bad markets. be sure of what you're buying.
>> go shopping with your financing in hand.
>> of course. there's nothing more powerful than being a buyer who says i'm an all-cash buyer, already got that money from the bank. boy, can you negotiate hard when you have that card in hand.
>> it prevents you from finding a house you like and going in to negotiate the mortgage.
>> lock in that rate. have it in hand. that's the power tool .
>> let's talk about the people now who are out there, trying to sell a home? a lot of people have been trying to sell that house for a long time. get your house inspected before you put it on the market.
>> for $300, you can have your house inspection. why is that important? when the buyer buys your house after they sign the contract will have it inspected and appraised. pay for the appraisal and the inspection and you'll have no surprises and the deal will actually close.
>> looking for potential buyers, you like for them to go for an all-cash deal or someone who has a mortgage commitment?
>> of course. all you have in hand, matt, is a maybe. if you have a buyer and a contract, you feel good about it. if they don't have the financing, all you have is a maybe sale.
>> jobs market out there, will that have an impact?
>> certainly when someone is worried about their job or can't get a job last thing they do is go out and buy a house .
>> as always, great information.