Published: November 11, 2012
It’s November and everyone in the real estate industry usually expects the sales volume to start decreasing in September and continue to decrease for the remainder of the year.
Not this year.
Sales did go down in September, but they unexpectedly went back up in October.
The year-to-date sales for 2012 were going to be higher than 2011, but this October boost assures us that 2012 will be the year of the turnaround for the real estate industry out of the Great Recession.
So, what’s going on?
We always expect a seasonal decrease in the fall and winter months and then they return back up in the spring months.
This year has been a huge turn around for our local market and appears to want to continue upward.
Pending homes are up 3 percent in October from September, which again should usually be going down this time of year.
Sales volumes in 2012 continue to show improvements from 2011 every month and was a steady increase month after month.
The National Association of Realtors is reporting that job creating and rising rents will continue to cause increased prices and sales volume.
NAR also reported other interesting data:
• 24 percent of sales are distressed sales compared to 40 percent in 2011; made up of 13 percent foreclosures and 11 percent shortsales.
• First-time homebuyers are 32 percent of all purchases. Cash buyers are 28 percent of all purchases.
• NAR’s median sales price has increased 11.3 percent nationally.
• The national average interest rate for a 30-year, fixed-rate mortgage is a record low 3.47 percent compared to 4.11 percent this same time last year.
Closings are up, pendings are up, and inventories are down; a perfect recipe for improvements to continue.
Our community leaders continue to do a great job creating new jobs with existing employers or attracting new employers to open new offices/factories for their companies.
As you look across the nation and world, we are blessed in Rutherford County with successful job creation and opportunity.