Early in 2013
Did the thrill of the buying season ever end come the
closing of 2012? Certainly not; activity this year has only
continued to be so rampant that any preconception of a slower
winter season for 2013 has been put to rest. With an improving
economy and increased jobs injecting a renewed sense of optimism
and confidence amongst the populace towards the real estate market,
demand for property as a result has skyrocketed and subsequently as
a domino effect, so have home values.
It comes to be known that this past February of 2013 was the
16th month in a row where home values have risen across the nation
when looking at year-over-year statistics. Across the nation median
list prices also have been increasing and in February reached
$189,900. Although there is a general lack of inventory across most
markets in the country, inventories did increase by 1.15% in
February compared to January of this year. With a broad sweeping
higher demand for purchasing property yet less property being
available for purchase, the likelihood is that the average days on
the market will decrease. This is indeed what has occurred as
February marked a massive 9.26% drop in days on the market from
January all the way to 98 days.
Steve Berkowitz, the Chief Executive Officer of Move Inc. noted
that, As we enter the busiest time of the year for home buyers and
sellers, our latest housing trend data shows just how competitive
the market is with a significant housing recovery well underway.
Looking ahead, we can expect the amount of inventory to increase
this spring along with higher list prices as sellers become more
comfortable with the market conditions.
Fifty-one of the markets across the United States, although
unnamed, saw median list prices climb 5% when looking at
Realtor.coms year-over-year statistics. Boston, as we know, is
surely one of those markets as by a widespread consensus the Hub
has been leading the way in this real estate industrys recovery.
Lexie Puckett, a reporter for Realtor.coms blog, on the other hand
mentions that, However, many smaller industrialized markets in the
Midwest and the Northeast registered year-over-year price declines,
as did Philadelphia, Chicago, and New York City. While the number
of markets experiencing year-over-year list price declines had been
increasing, this pattern appears to be turning around as home list
prices increased in 78 markets last month on a year-over-year basis
and declined in 39.
All indicators are pointing to the next few months as being some
of the most active that any Spring market has ever seen, especially
in The Greater Boston Area. Every day there are an array of new
listings coming on the market which is a good thing in order to
satisfy the demand and give buyers agents more hope. Even though
todays immense competition is difficult, stressful and ultimately
disappointing for many buyers and their agents, looking at this
situation from the industrys perspective sheds light on the matter.
There is a clear need and want to be in Boston and to own property
either here or throughout the region. This relentless demand
coupled with the increasing inventory coming from sellers and from
all of the new developments currently being built will provide more
stability in the market. Ultimately, this will silence any worries
that this dramatic peak in the flow of the market will result in a
soon to be a corresponding dramatic trough. Sorry, but such
traditional economic theorys will not be applied here on our local
level.
More Information: National Association of
Realtors