Market Update - September 2012

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As we transition into the final quarter of the year, we are seeing some positive changes in our marketplace. Overall, things are headed in the right direction. Plus with the 2012 Presidential Election around the corner there are some good things to be expected with the economy. Taking a look at the number of available properties on the market, the time it takes for homes to receive an offer, interest rates and more – we can safely say that things are turning around. Here is a closer look at these statistics with respect to these important aspects of the market.

Fewer Homes Available on the Market

Looking at the same time last year, we are seeing fewer homes available on the market. What this is does is to increase demand which in turn then acts to increase home prices. This trend has been seen across the nation and is emulating in our own neighborhoods as well – paving the way for an even stronger market in the months ahead.

Number of Sales Continue to Rise

This year we have seen an increase in the number of sales with 194 till date as opposed to 184 in 2011 within the same time frame. This indicates better consumer confidence as well as buyers tapping into the resources and programs out there available to them. Buyers are eager to lock in historically low interest rates and sales are happening.

Short Sale Process Becoming More Streamlined

There have been some recent changes on a national level in terms of short sales where the National Association of Realtors’ President engaged in talks with the FHFA to help simplify the short sale process. In our local marketplace, short sales have been moving faster and relatively smoothly – owing to banks’ desire to shorten escrow time frames. Conversely, we are seeing an increase in the number of short sales however with smoother processing it will likely be less cumbersome.

Interest Rates Still Very Low

We are still seeing all time low interest rates that are making it more affordable than ever before to own a home. Right now buyers can get anywhere from 3.5% to 4% on a 30-year fixed rate loan. In addition, there are mortgage programs where buyers are only required to make a 3.5% down payment, making it possible for a much wider spectrum of buyers to own a home.

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All in all, we are looking at good market conditions. The number of days it takes to sell a home is shorter (just 65 days) in our office than our region’s average of 100 days. If you have been on the fence about selling your home, now is a good time to re-evaluate your situation with how it relates to the factors mentioned in this article. Without a doubt, this is also still the best time to buy a property considering prices and interest rates.

For a custom consultation to discuss your needs, contact us today – we welcome the opportunity to serve you!