Top 5 Trends In Real Estate For October, 2012
Here are the Top 5 Topics and Trends shaping the Covington Real Estate market during October.
- Mortgage Rates Lower Than Ever: Mortgage rates have dipped lower than they've ever been. Rates on 30-year fixed mortgages averaged 3.40 percent with an average 0.6 points at the end of last week. 15-year rates, popular for refinancing, averaged 2.73 with 0.6 average points.
- Demand For Loans Is Up: Demand for mortgage loans is up 5% over a year ago due to lower mortgage interest rates and pent-up consumer demand. However, fewer first-time home buyers are not buying right now to a normal extent because it's extremely hard for them to get loans. First-time buyers usually make up about 40% of the market. Banks are still not wanting to turn loose of all the excess funds they've accumulated. Maybe that will change after the November election.
- Inventory Is Very Low: A "good, normal" real estate market will usually have a six-month supply of homes listed and available. In Covington, we now have less than a four-month supply. The number of new listings on the market in Covington has decreased every month this year aas compared to 2011. And in September, the number of foreclosures hitting the Covington market was almost 46% below that of the same month last year.
- Kitchen Designs Changing: Home designers are getting away from the work triangle design for kitchens. The growing emphasis now is on islands incorporating cook-tops, prep sinks, or other elements that make it easier for two cooks to work at once. Maybe more cooks don't spoil the broth after all! Islands are also becoming more popular as eating space as well. But designers are changing their thoughts on seating - moving away from the "picnic bench" style, with all seating in a row, and toward 90-degree seating with stools along two or three edges of the island to enhance conversation and interaction.
- Best Places To Live: CNN Money magazine just published the top 100 best towns to live in in America. These "best" small cities were chosen based on their offering strong job opportunities, great schools, low crime, quality healthcare, and plenty to do. Covington didn't make the cut, but seven out of the top 25 were in the South - 12 or the top 25 if you count Texas. The seven southern towns were: Rogers, Arkansas; Auburn, Alabama; Reston, Virginia; Chapel Hill, North Carolina; and Riverview and Weston, Florida.
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