Ever heard of the Spring Market? Well it is back in full force
and looks to be stronger than ever this year when pegged against
recent memory. Many reasons account for this great optimism about
the Spring of 2012. For one, the mild weather has been a massive
factor contributing to the heightened interest in property.
In another blog post
we recently discussed Cape Cod real estate, where the warm
winter season has not only made houses show better but has also
made people more willing and able to house hunt.
According to Forbes, warmer temperatures during the months of
April, May, June and July frequently result in over 40% of all real
estate transactions for a year. Contract offers this year have
already skyrocketed, and even though the numbers from February were
down from January, both months easily surpassed the same
comparative numbers realized from the months of 2011. Moreover,
this was a 9.2% increase for signed contracts that have yet to
close in February of 2012 over the same month for 2011, while an
8.8% increase for existing-home sales or closed contracts in the
same month in 2012 over 2011 occured.
As we recently
discussed, the low inventory levels, especially in Boston, have
caused properties to fly off of the market due to the pent up
demand levels. Across the nation for the current day in 2012, a 19%
decrease in the level of inventory is a drastic change from the
availability of homes a year prior. This all results in a five-year
low to when the markets were prospering before the economic
downturn.
Other notable numbers were that building permits have increased
already 5.1% from January to February of 2012. This past February
brought forth a staggering 34.3% increase from February, 2011,
which also was a 34.7% jump in housing starts. The affordability of
housing is also quite attractive in todays market. Of course, this
largely depends on which locale we are referring to nationwide,
however at large there have been extremely low interest rates
making purchasing a home now seem even more like the fantastic
investment that it already is. Foreclosures are also at a high,
with 2012 expected to bring roughly a million of these transactions
which in turn would be a rise of 25% from 2011 with investors
looking to seize as much distressed property as possible.
Boston was even mentioned as one of only three notable cities
nationwide that Forbes is certain will experience growth in their
home prices. The improving economy and expanding and new businesses
settling in The Greater Boston Area will also have a large effect
on the real estate market. People securing jobs and a future in and
around our city will greatly contribute to the prices and frequency
of properties being sold. GDP growth from the housing sector is
something that has not come to fruition since 2005, although even
this perhaps may change in the coming year. This all summates to
2012 being one where real estate markets not only in Boston but the
whole nation begin to flourish once again.
More information: Forbes.com