Well
Thus far in 2012 and now in 2013, we have constantly heard about
the numerous triumphs that the real estate market has endured over
the past twelve months or so. It truly seemed as though once
January of 2012 came about there was a sudden jolt to the market
that has continued a positive domino effect to the stage that we
find ourselves in today. As 2012 turned the page to this new year,
there of course were those initial hesitations about getting too
optimistic about this year as well. As we all know, of course, the
real estate market is one that is always difficult to predict.
2012, as it turned out, was not estimated to perform as well as it
did, and now with 2013 anticipated to thrive even more, it only
goes to show that we could be due for even more serious increases
in the industry that will propel us into the future for years to
come.
In the Northeast of the United States alone, the National
Association of Realtors point out that home sales jumped 5% in
January which was the highest monthly increase across any region of
the country. The median prices also went up by 2% during this
period when looking at month-over-month statistics. Existing-home
sales in New England rose from December of 2012 by 4.8% up to
650,000 in January. When taking a step back and analyzing this as a
year-over-year measurement, it becomes clear that this was a boost
of 12% in January, 2013 over January, 2012. This year is only
continuing to push on with strong momentum. Median prices in the
Northeast also grew last month, this time to $230,500; a 2.4%
growth rate this January over January of 2012.
We just reported in a
past blog about how on our local level and even across the
country there is a nationwide sentiment that this industry has
transformed into being a ‘sellers market’. This has caused home
prices to rise, according to NAR, as well as a 0.4% increase in
total existing home sales to 4.92 million in January. The previous
blog report mentioned above also highlighted this number as well as
the fact that these home sales are up from the 4.90 million in
December of 2012. This shows this January performing at 9.1% better
than January of 2012 when at that time the pace was at 4.51 million
for total existing home sales.
Lawrence Yun, NARs Chief Economist, reflected on the beginning
of 2013 in the real estate market and shared that, Buyer traffic is
continuing to pick up, while seller traffic is holding steady. In
fact, buyer traffic is 40 percent above a year ago, so there is
plenty of demand but insufficient inventory to improve sales more
strongly. Weve transitioned into a sellers market in much of the
country. As also mentioned in the aforementioned blog, the housing
inventory in January dropped 4.9% to 1.79 million which reflects
only a 4.2 month supply of existing homes available for sale. This
number is the lowest the supply rate has been since April of 2005,
and even is down from where it stood in December of 2012 when there
was a 4.5 month supply of homes.
The low mortgage rates and improving economy are spurring sales.
A 30-year fixed-rate mortgage in January was 3.41%; beating out the
former record low from this past December when it was at 3.35%.
Comparatively, January of 2012 was when we began discussing how
mortgage rates were flirting with record low numbers, and back then
it was hovering around 3.92%.
The shrinking of the supply being met with accelerating demand
is also facing a situation where the national median existing home
prices for all housing types are climbing; now up to $173,600 in
January. This, as it turns out, is up by a lofty 12.3% from January
of 2012 and this past January displayed the 11th consecutive month
where there were year-over-year increases. Furthermore, such a
drastic spike of 12.3% from this past January over the January from
a year prior marked the largest change since November of 2005 when
a 12.9% year-over-year figure was achieved. Well, with all things
considered, real estate in 2013 looks to be in a very profitable
position for the future.
More Information: Boston Business
Journal