Market update at a glance October 2012

Market up date at Glance through October 2012

Solid gains in price movement, closed sales, pending sales and reduction in inventory. So as I look at the numbers below the question comes to mind has the mix of sales affected the sales price and if so why. The short answer is yes it becomes most self-evident if you look at the size of selling this year 1^st going back to 2008 houses sold are  7.89% bigger yet you are only paying  4.79% more in grossing selling price . If you look at payment with interest rate in 2008 the average sales price would have cost principal and interest $1251.46 a month where today your monthly is only $968.28. The magic of interest rate means you are buying a bigger more expensive home yet it cost you 22.62% less than in 2008. My perdiction would be as long as the Federal Reserve continues to buy approximately two thirds of all the mortgages originated in the United States we will continue to see upward movement in both price and sales, although gains probably more moderate in units in 2013. Based on the market this year the higher end market will have a record year in all but the 500k plus and then it will the second best year ever, hence the price and size movement caused by interest rates.  As always, if you have a question about real estate or the market, give me a call or e-mail with your questions