The Market is Picking Up
The Raw Statistics
My peers and I in the real estate industry have been saying for months that “now IS the time to buy!” before the market picks up this year, which we were sure it would. Well folks, here it is! We have the statistics, we have the hard evidence: the market is no longer in the slump we’ve been in since 2007! Here in this blog are some of the raw statistics on why we think this is and why NOW, more than ever, is the time to buy before time runs out on the good prices and interest rates – and inventory!
Since the crash in 2007, home prices have dropped nationally about 35%... which is just ridiculous. It’s no wonder everyone in the industry’s jaw dropped when the prices did. In the areas that got hit the worst sometimes the drop was 55% or more. However, at the beginning of this year all signs pointed to a stabilizing economy and now an even more amazing trend of rising prices has been duly noted.
In the first quarter of this year, final sale prices rose in seventy-four of the observed one hundred forty-six metro areas. This is not to say that there wasn’t some improvement at the end of 2011, because twenty-nine of these same observed metro areas had shown price gains. However, this is a huge leap and a far cry from the state the market was in last year. Because of this, we can say that 51% of the major cities nationally across the boards have shown price gains. Areas that are still plagued by falling prices are Atlanta, GA, Mobile, AL, Reno, NV, Seattle, WA and Kingston, NY.
Another factor in today’s market is the lack of inventory. Because banks have reclaimed and foreclosed on so many homes they are not simply released back into the market. Instead, they are slowly trickled back in so there is not a huge flood of inventory to any single market. So what are the repercussions? Bidding wars! The homes that are currently on the market have much more competition geared toward them, therefore many are selling for above asking prices and many are cash offers or are already pre-approved. This in itself is driving up the housing market values. Compared to 2011, the existing homes on the market are up 22% while pending sales have jumped up to 12.8%! Staggering isn’t it? What a metamorphosis this market has gone through in twelve short months.
Several different research companies have extrapolated the statistics they currently have to work with and all say that rents will continue to rise, but so will home prices and home sales. “This spring the housing market is responding to an improving balance between real estate supply and demand which is causing stabilization in house prices notes” according to Mark Fleming, the chief economist for CoreLogic. Examples of markets already well in recovery are Washington D.C, NYC and Phoenix, AR.
If you are interested in getting into an affordable move-in-ready, turn-key Sonoma County home, Hard Money financing to purchase a house or for more expert advice on the market or local Sonoma County, give me a call today at Sun Pacific Mortgage and Real Estate.
Lynn Tardibuono – Flipper Chick- Real Estate Agent and Co-Owner of Sun Pacific Mortgage and Real Estate. Serving Sonoma County since 1988. Her number is (707)523-2099 and you can also visit our redesigned website at http://www.sunpacmortgage.com Also be sure to like us on facebook! Click this link! http://www.facebook.com/sunpacmortgage