The trend of gradual but below-potential economic growth seen in 2012 is expected to carry over through 2013 and into 2014. This modest growth path combined with the real GDP growth rate during the recovery from 2009 to this point of 2.2 percent annualized give credence to claims that the recovery’s slow pace has become the “new normal,” according to Fannie Mae’s Economic & Strategic Research Group. The fiscal cliff and ongoing debt ceiling debate, which are likely to suppress consumer spending in the first half of 2013, continue to present potentially strong headwinds to meaningful growth activity. Overall, a 2 percent growth rate is forecasted for 2013, similar to the subdued pace of 2012. This is despite the fact that the housing sector, which has become a bright spot in the economy since home prices began to rebound in 2012, is expected to provide a rising contribution to GDP in 2013 and in coming years.

A new exhibit, Making Room: New Models for Housing New Yorkers, opened Tuesday at The Museum of the City of New York, and will run through September 2013. Organized in conjunction with Citizens Housing & Planning Council (CHPC), Making Room explores how the rise of New York’s single adult population, in addition to other shifting social, economic, and cultural demographics, is dramatically changing the landscape of urban living. The exhibit focuses on the innovative ways that architecture and design can affect the city’s

(MCT)—Sales of existing homes ticked down in December from the month before, while the total for 2012 hit the highest level in five years, according to data released Tuesday by the National Association of REALTORS®. The pace of sales fell 1 percent in December to a seasonally adjusted annual rate of 4.94 million, according to NAR. For all of 2012, existing-home sales hit 4.65 million, the highest level since 2007 and up 9.2 percent from 2011. “Record-low mortgage interest rates clearly are helping many home buyers, but tight inventory

The year 2012 was a promising one for housing. With consistent improvements in housing construction and prices, home building is once again contributing to economic growth. And the December housing starts report capped off the year with confirmation of these trends. Per Census data, solid gains in both single-family and multifamily production resulted in nationwide housing starts rising 12.1 percent

2012 was the year that the U.S. housing market began its long-awaited recovery. Will the recovery continue in 2013, or will we see another setback? And what are the implications for real estate professionals—especially those who specialize in distressed properties? Most economists and market analysts agree that the housing market turned the corner in 2012 and was in the early stages of a recovery. All the metrics were pointing in the right direction: housing starts were increasing;

Freddie Mac recently released the results of its Primary Mortgage Market Survey® (PMMS®), showing mortgage rates largely unchanged from the previous week helping to keep homebuyer affordability high, refinancing strong and should continue to aid the ongoing housing recovery. Results showed that the 30-year fixed-rate mortgage (FRM) averaged 3.38 percent with an average 0.7 point for the week ending January 17, 2013, down from last week when it averaged 3.40 percent. Last year at this time, the 30-year FRM averaged 3.88 percent.

December 2012 home prices are expected to rise by 7.9 percent on a year-over-year basis from December 2011 and fall by 0.5 percent on a month-over-month basis from November 2012 reflecting a seasonal winter slowdown, CoreLogic said recently. Excluding distressed sales, December 2012 house prices are poised to rise 8.4 percent year-over-year from December 2011 and by 0.7 percent month-over-month from November 2012, according to the CoreLogic Pending HPI.

Even though the time it takes to sell a luxury property has increased to as long as 260 days in Chicago, 287 in Miami and 197 nationally, overall, fewer sellers are cutting prices. Wintertime sluggishness has slowed luxury markets across the nation. Days on market have been increasing in nearly every major market tracked by the Institute for Luxury Home Marketing, and inventories are at a seasonal low, down from 27,600 properties in June to 18,400 in January. Rather than falling with the end of the summer buying season, low inventories have placed upward pressure on prices, which have risen from a median of 1.11 million in September to 1.23 in January, according to ILHM data.

Near the end of 2012, we put out a call to our readers, asking them for the most prevalent real estate topics they want covered in the New Year. This ‘Hot Topics’ contest ran into the first week of January, and we had a storm of terrific entries submitted. Now, we’re going to write about them! Our winner, Claudia Davis, will be receiving an American Express gift card for her entry about pocket listings.

I have made the point over the past couple months that our mobile devices have taken over as the primary consumer search tool for most of us and will take over for the rest of us in the near future. Yes, many of us still have a desktop computer that we use for work, to create documents, presentations and do research. However, when the work day is done, we immediately switch to our mobile devices—smartphones and tablets—for all our consumer-searching needs. Why wouldn’t we? It’s far more convenient and comfortable to sit on our couch, recliner or at our dining room table with our smartphone or tablet than it is to sit at those same places with our laptop. According to Nielsen, a recent study found that 85 percent of smartphone/tablet owners use their device while watching TV

The latest FNC Residential Price Index™ (RPI) shows that the recovery of U.S. property values has continued through November—the ninth consecutive month of price gains driven largely by rising homes sales and moderate economic growth. An imbalance between rising demand and limited supply continues to be an important factor for sustained price momentum. While signs of market recovery have instilled confidence and driven up demand as potential homebuyers take advantage of low prices, the supply of homes for sale has been constrained due to rising homeowners’ expectations about a continued price increase in many fast-rising markets.

(MCT)—QUESTION: I am trying to sell my home but am not getting any showings. I’m thinking about allowing a buyer to finance it through me. Is this a good idea? —Suzanne ANSWER: It certainly can be, depending on your situation. If you own the property free and clear of any mortgage loans, financing the transaction for the buyer yourself has its advantages. But you’ll need to take precautions to protect your interests. This sort of arrangement can help attract a deeper pool of prospective buyers who have temporary financial issues. You can finance the property for your buyer at an interest rate much higher than any bank will pay you for storing your money.

Hilary Lists Swanky Pad In between shooting her two newest films—“Mary & Martha” and “You’re Not You”—Hilary Swank has recently listed her L.A. home for just shy of $10 million. The super-luxe, three-story Mediterranean-style home, built in 1928, features six bedrooms, 6.5 bathrooms and swoon-worthy ocean views. Despite being located in the mild Pacific Palisades, the property includes six fireplaces, and the RIS staff has been dreaming about the dinner parties that may have been held in the massive dining room with seating for 20. Other classy amenities include a home theatre, wine cellar, gym and maid’s quarters.

The Consumer Financial Protection Bureau (CFPB) has formally released its qualified mortgage (QM) definition and Ability-to-Repay rule, and financial organizations across the board are responding. In a recently released statement, the Independent Community Bankers of America (ICBA) noted that it is encouraged that the Consumer Financial Protection Bureau’s (CFPB) final rule on consumers’ ability

Clear Capital recently released its Home Data Index™ (HDI) Market Report with data through December 2012. Using a broad array of public and proprietary data sources, the HDI Market Report publishes the most granular home data and analysis earlier than nearly any other index provider in the industry. Report highlights include: • Home prices in 2012 finished the year strong, boosted off the market lows of early 2012. • December's quarterly trends were mostly flat, indicating potential fiscal cliff and winter impact. • 2013 forecasts call for continued, moderate growth as some potential buyers get priced out of the market.