This Month In Real Estate February 2012

By
Real Estate Agent with Shahar Management
https://activerain.com/droplet/tjv

 

 

February 2012  Market Update

 

2012 is off to a promising start. Mortgage rates continue to drop and have remained under 4% for nearly two months. Home sales are strengthening and pending home sales, a measure to gauge future sales, are at their highest levels since March 2010.

Job growth has been increasing for most of 2011, with unemployment dropping to 8.4%. As more people are getting jobs, consumer confidence has also been increasing.  However, underemployment continues to be a problem for a stronger recovery. The underemployment rate is 18.1%, and there are still a significant number of people working part time, who would like to have full-time work.

Even with substantial national improvements, this continues to be a “one neighborhood at a time” recovery. Payroll jobs were up in 25 states, but down in 24, demonstrating the delicate state of the U.S. economy. Global factors such as the European debt crisis are also complicating a more robust recovery. Strong guidance is needed from local and global leaders to continue this growth, as well as allow for business to maintain momentum toward building and expanding upon the opportunities that exist.

Sources:Bureau of Labor Statistics, National Association of Realtors

 

Home Sales

in millions

Existing home sales continued their rise, up 5% in December, to a seasonally adjusted rate of 4.61 million. Lawrence Yun, chief economist for NAR, said, “The pattern of home sales in recent months demonstrates a market in recovery. Record-low mortgage interest rates, job growth, and bargain home prices are giving more consumers the confidence they need to enter the market.”

.

Home Price

in thousands

Homes prices for December were down 2.6% from a year ago, at a median price of $164,500. One factor contributing to lower prices has been the high level of distressed properties being sold. In December, these properties began to show signs of price stabilization and increase. Foreclosures were selling at 22%, a 2% increase from a year ago, and average prices for short sales prices had risen by 3%.

 

Inventory- Month's Supply

in months

The housing inventory dropped 9.2% in December to a 6.2-month supply, or 2.38 million homes, at the current level of sales. These are the lowest inventory levels of homes for sale since March of 2005. Lawrence Yun, chief economist for NAR, said, “The inventory supply suggests many markets will see prices stabilize or grow moderately in the near future.”

 

Source: National Association of Realtors

Interest Rates

Another slight drop for mortgage rates as they continue to set historically low records. With homes being so affordable and the economy continuing its recovery, home prices are stabilizing, as increased sales are expected. NAR President Moe Veissi stated, “The American dream of home ownership is alive and well. We have a large pent-up demand, and household formation is likely to return to normal as the job market steadily improves. More buyers coming into the market mean additional benefits for the overall economy. When people buy homes, they stimulate a lot of related goods and services.”

 

 

 

This Month's Video

Topics For Home Owners, Buyers & Sellers

Interest rates at favorable levels and a good selection of homes provide an opportunity for buyers. Here are a few things to for buyers to keep in mind:

 

1. Know what you can afford before you fall in love with your dream home.
2. Consider additional expenses that come with owning a home like property tax, insurance, and repairs.
3. Be flexible on the little things. It would be wonderful to find a home with everything you want, but those are hard to come by – distinguish nice-to-haves and must-haves early.
4. Have imagination and look beyond paint colors, wallpaper, or other easy and affordable things you can change.

5. Don’t compromise on the big things, such as enough bedrooms to accommodate additions to the family or space for an office if you work from home.

6. Always inspect even if the surface looks great; it’s important to know if anything major is wrong and what it will cost to fix.

7. Think about the future in regard to the neighborhoods, surroundings, schools, and developments.


 

 

 
 

 

Posted by

 

 

 

SHAHAR MANAGEMENT

 

Debbie Walsh, GRI, CNE, CHMS, REM | Office (845) 283-3036 |

website www.viewhudsonvalleyhome.com | search for homes

If you are Buying, Selling or Relocating to the Hudson Valley area and need help from a professional REALTOR®, I would be happy to assist you! Please visit my Hudson Valley website for property searches and to sign up for free listing alerts and other information.

 

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WINNER 2015, 2016 & 2017 Hudson
Valley Five Star Real Estate Agent



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Rainmaker
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Adrian Willanger
206 909-7536 AdrianWillanger-broker.com - Seattle, WA
Profit from my two decades of experience

Hi Debra, I like the new market update format. Excuse me if I find a bit of humor in the fact that short sales and foreclosures sales prices have increased! That's a good sign, in Seattle we are also experiencing lower inventory levels. Thanks good report. 

Feb 18, 2012 12:35 AM #1
Rainmaker
820,870
Juli Vosmik
Dominion Fine Properties - Scottsdale, AZ
Scottsdale/Cave Creek, AZ real estate 480-710-0739

Debra, great real estate market update.  You've done a lot of work to present these numbers and I appreciate it.  Just as I'm sure your Hudson Valley real estate clients appreciate you. 

Feb 18, 2012 01:19 AM #2
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Debbie,  excellent job on this "one neighborhood at a time recovery."is a great way to put it.

Feb 18, 2012 04:47 AM #3
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Dale Baker
Baker Energy Audits and Commercial Properties Inspections - Claremont, NH
New Hampshire Relocation Real Estate Information

Howdy and evening Debra

Debra my friend, this here sure is a mighty fine looking and very helpful Market Report, which sure will help folks know what is going on with Real Estate.

Have a good one
Dale in New Hampshire

Feb 18, 2012 10:28 AM #4
Rainmaker
911,114
Elyse Berman, PA
Best Connections Realty, Inc. - Boca Raton, FL
Boca Raton FL (561) 716-7824 CRS, ABR, GRI,ePR

Deb,  This is a really nice report.  Good information, easy to read for the consumer.  Have a good weekend!

Feb 18, 2012 11:17 AM #5
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Rainmaker
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Debbie Walsh

Hudson Valley NY Real Estate 845.283-3036
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