Real Estate Information

Wow, huge jump in new listings in March of 26%, where did they come from? I wonder which price range most of them fell in or were they evenly spread? We’ll keep an eye out to see how they might affect Months Supply in the next month or two. This level is just under the peek levels of 2010 & 2009 which may seem high for the current market, but still at a moderate level when compared to ’05, ’06 & ’07.

Pending sales continue a 3rd month of trending upward, not unlike 1^st Q 2011; a sign of good health, but still on the weak side when compared to the raw numbers of ’05, ’06 & ’07.  Months Supply of Inventory for the under $100k and $100k - $200k is a dead heat at 4 months indicating a seller’s market in those ranges. However, if 90% of the New Listings mentioned above came into those ranges we may see a change next month. Homes in the greater than $200k range moved from 7.5 months to 6 months supply, encouraging news as that would indicate an inching toward a balanced market.

Closed Sales continue a 9 month upward trend month over month. In fact, it is markedly improved over ’08 & ’09 as well – 2 difficult years; right on the mark of ’04 & ’10 – 2 healthy years, and interestingly, is under ’05, ’06 & ’07 – 3 years of unrealistic activity. Add this to the above paragraphs and it looks like 2012 is on a slow, steady recovery.

Median Sales Price is also showing a positive trend and is already ahead of 6 out of the last 8 years in March. Trend patterns of the last 8 years suggest it will continue up for at least one more month before undergoing a modest decline as more inventory sells. Average Days on Market is much improved in Feb., Mar. & April 2012 over same months in 2010 & 2011. Modest, yes, I’ll take steady over volatile any day. 

I'm often asked if this is a good time to buy a home. Some clients are concerned that home prices may fall further than they have already. They are assuming that the best course of action is to wait for the bottom in the market and then buy. The problem with this approach is that you don't know where the bottom is until you see it in the rear view mirror, meaning until you've missed it!

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Even though interest rates have gone up in the last six months, they are still near historic lows. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, if home prices come down a little further but interest rates up, it could cost you even more to service a mortgage on an identical home!

While a home is a major investment, it is also the center of your personal life. It's important to live in a home that reflects your taste and values, yet is within your financial "comfort zone." To that end, it may be more important to lock in today's relatively low interest rates and low home prices, rather than to hope for a further break in prices in the future.

Please give me a call if I can be of any assistance in determining how much home you can afford in today's market.