We're seeing it in the interest of people wanting to buy a home and those wanting to sell (not just home owners needing to sell). The Mandeville real estate market is picking up in an amazing way. St.Tammany home sales were up 13% in 2012. I think people are just tired of the what if's and the negative hype of the economy. It's been five years since the bubble burst. We pull weekly reports that show every home sale for free. Get the facts from our detailed market reports here.
What's Driving The Looming Activity? In weather terms we have a number of conditions in the housing industry that will collide for a period of time in 2013.
- Historically low Mortgage Interest Rates. Never before have we seen mortgage rates nearly below 3.0%.
- Reduction of New Construction. Due to the tightening of commercial, construction and development financing very few new home neighborhoods have been started and standing new home inventory is dangerously low in many areas.
- Slow to rise housing prices. As the inventory for new and used homes has tightened many area around the country are reporting rising prices.
- Investors Are Spending Their Cash. A tremendous amount of cash has been sitting on the sidelines waiting for the "right time" to re-enter the marketplace. That time has come, as nearly 70% of real estate investors in 2012 paid cash for the real estate they purchased. Normally, this percentage is in the 20-30% range.