With a 28 percent increase in local home sales volume, 2012 turned out to be the year that the real estate market turned the corner.
Most real estate analysts seem to think the market will only improve over the next several years.
Based on the current supply and demand, I would have to agree with most of the market predictions that the real estate market has seen the bottom and we are headed upward over the next couple years.
I don’t think we will see the same fast-paced increases we had in the last real estate bubble, but I do feel confident the worst is behind us.
The new mortgage policies and higher credit requirements will keep the growth at a more modest rate than we would like, but I’m sure the market will take care of itself as the supply and demand dictate the actual market results.
The national real estate market seems to have the same positive reports based on the latest statistics from The National Association of Realtors (NAR):
• NAR’s median Sales price has increased 10.1 percent nationally.
• Lowest housing supply since September 2005.
• 22 percent of sales are distressed sales compared to 29 percent same time in 2011 (made up of 12 percent foreclosures and 10 percent short sales).
• Foreclosures were discounted 20 percent while short sales were discounted 16 percent.
• First-time home buyers are 30 percent of all purchases.
• Cash buyers are 30 percent of all purchases.
• Investors are 19 percent of all purchases.
• The national average interest rate for a 30-year, fixed-rate mortgage is another record low of 3.35 percent
With the local and national real estate markets starting to improve, we are excited to see how the market plays out in 2013.
Prices are still very attractive for those buying.
Those selling will find it a little easier to sell and for a little more money than previous years.
Thanks for allowing me to share The Red Report with you.
For a full version of a four county Red Report with more detailed numbers, visit RedRealty.com.