The Housing Market Finds Its Strength
2012 was a great year thanks to a very active real estate market. According to year-end reports, we’re clearly seeing a turnaround. One sign of strength was the number of houses that sold. Overall, home sales grew by 40% from 2011 to 2012. At the same time the days a house was on the market before selling decreased. Top off these factors with a decrease in inventory of 13%, and there’s reason to believe the housing market took root in 2012 and is poised for growth in 2013.
The real telling factor of the health of the real estate market is new pending sales continuing to increase above new closed sales. This scenario caused the decrease in inventory and increased sales for the year. The number of homes that closed was 9,121 in 2012 as compared to 8,345 in 2011. This is a big difference. We’ll again watch these factors in 2013.
If you’re thinking about selling your property, now is the time because inventory from 2011 to 2012 went down by about 1,000 homes. With the lower inventory in 2012, sellers got more for their money: the median price of homes increased by almost $30,000, going from $175,000 in 2011 to $204,000 in 2012.
Here’s the thing: supply and demand affect what you’ll get for your home. When everyone who has been thinking about selling their home puts their home on the market is not the time to dive in. If you wait to sell your home, your home will have lots of homes to compete with. And when the supply of homes goes up, the price you’ll get for your home inevitably goes down. At the end of the day, you have a better chance at success if you decide to sell now, instead of waiting until all the Joneses get in the market.
Also, keep in mind that the mortgage loan rates are still fantastic. A 30-year fixed-rate mortgage hovered at record-low rates during 2012, but the rates won’t last forever, so there’s not a better time to buy than now.
If you are interested in buying or selling your home and want to get in on record-setting low interest rates, contact me today at 239.595.8500 so we can build a strategy to get you the results you want. I’d be happy to assist you.