What a difference a year makes. As you can see from the 2010-2012 Single Family Median Price Comparison chart, January 2012 prices are up 30.86% over last year’s numbers.
We’ve been reporting that prices have been on the rise for months and that we thought we could be in for a strong selling season and the numbers are bearing witness to those sentiments.
Inventory levels are down which is affecting sales. There are fewer transactions because there is less to sell, which is causing prices to go up. Word is spreading up North too, as snowbirds and baby boomers are looking to buy now before prices go higher.
Don’t worry; it’s still a very healthy market. We still have buyers offering $10,000 less on bank owned properties even though there are more than 10 offers on the property and the bank is countering at highest and best. Some buyers just have to try even though their Realtor is advising and educating them on the market. I always get a kick out of buyers that call me because they’re disgusted with their Realtor. Upon asking a few questions inevitably the buyer tells me they’ve made offers on several properties but they never win any of the bids.
Usually the buyer isn’t following the advice of their Realtor. If they are, perhaps the buyer just isn’t strong enough to compete with other buyers in that price range. If the buyer feels they’re strong, ie. Writing cash offers, decent money in escrow, few contingencies, and offering above asking price and still not getting the properties, perhaps they need an experienced agent who knows how to structure offer to compete. We’ve written many articles in the past that may help your agent understand what a seller considers when looking at multiple offers. Check out our Blog archives at http://blog.topagent.com
Look at the price point’s chart. Foreclosure sales are down across the board as foreclosure inventory is down significantly. Conventional sales are up as prices have risen since 2009. Many more sellers can afford to sell today than 3 years ago.
You’ll also notice more sales in the higher price ranges. This is because there is less inventory to sell in the under $100,000 range, so those sales are off. That’s pushing buyers into higher price ranges. Additionally, the economy is faring just a little better in some places. Buyer sentiment is stronger, and buyers in the higher price ranges realize if they want an investment or place to eventually retire, buying sooner rather than later may be their least expensive option. These higher priced homes seem like such a bargain compared to 6 years ago, and who doesn’t enjoy a good bargain, even if you’re rich?
We look forward to reviewing the February numbers once they’re out. We think February will be another strong month, and already March has been super busy. It should be, as March is the height of season. It’s also the month of St Paddy’s day, so with a little luck of the Irish, our market might just end the season in fine shape.