Things are looking up in the Housing Market
A friend wrote me an email this morning asking about the state of the market I said…..
It’s really a pretty amazing situation when you think about it….Inventory is low, Interest rates are ridiculously low and there are qualified home buyers looking to buy. What you’re friend didn’t mention directly that prices are also up….about 5% on average or more this year in our area.
Up till now, many sellers have been sitting on the sidelines waiting to list their home for sale, thinking the market is still bad….thus the low inventory. Also, because people are moving less frequently (because the economy has been slow, fewer job changes/moves). The declining inventory has been going on for a few years but it’s just this year that it’s finally kicked in and affected prices in the normal way of supply and demand…..by going up!
I’d expect that in 2013, if the economy continues to slowly improve, more people will list their home for sale, there will be more sales, etc. Then we’ll start to hear more in the media about the market is changing, sales are happening, etc etc and I hope it doesn’t get crazy and swing up too fast and get out of whack.
I think people don’t realize just how low interest rates are and how affordable it makes it to buy a house right now. It’s an historic opportunity between the low rates and deflated prices. It won’t last too much longer…there’s only one place for rates to go and prices are already starting to trend up.