Market update at glance January 2013

Market update at glance

January 2013

As I sit and review the performance of the market for January and all of 2012, the increase in in unit sales is outstanding, the decrease in market time is phenomenal, the increase in pending sales is a positive trend, yet then I get to price movement and scratch my head. The normal expectation would be with the type of increase in demand indicated by unit sales, the market should experience pretty dynamitic pricing pressure, yet when you look at the pricing data, that does come through the market. So the question becomes, will the market experience a marked pricing movement as we get further into the year and both sellers and buyers gain confidence in the economy of Yellowstone County?  In December of 2012 there were 2060 more people working in Yellowstone County than in December of 2011 and  2423 more working than in 2009.The pricing  trend will be interesting watch develop and I will keep you posted each month. With interest rates  12.8% lower than last January and with the minor price movement, it is actually was cheaper to buy a home this January as compared to last January by $37 a month and $85 cheaper than in 2009. I would have to believe we are very close to the end of that continue declining interest rate cycle, at some point in the near term the Federal Reserve will stop buying 85% of the mortgages originated in the United States. Then housing market will have to survive with money raised in the private market instead of the Federal Reserve printing the money. I hope you find the information both useful and enlightening, if you have any questions about either buying, selling or the market in general do not hesitate to call or email