Let's Talk Real Estate: 2012

Wednesday, January 2, 2013

Housing: Year End Reports Reveal Market Coming Back

by The KCM Crew on January 2, 2013

Every year-end housing report revealed that the real estate market is recovering quite nicely. Here is a quick synopsis of each:

Existing Home Sales Report

Total existing-home sales rose 5.9 percent in November over last month
Sales are 14.5 percent higher than November 2011
Sales are at the highest level since November 2009
The national median existing-home price was $180,600 in November, up 10.1 percent from November 2011
Total housing inventory at the end of November fell to a 4.8-month supply; it was 5.3 months in October, and is the lowest housing supply since September of 2005 when it was 4.6 months

Pending Sales Report

Pending home sales increased in November for the third straight month and reached the highest level in two-and-a-half years
The index is at the highest level since April 2010 when buyers were rushing to beat the deadline for the home buyer tax credit
With the exception of several months affected by tax stimulus, the last time there was a higher reading was in February 2007
On a year-over-year basis, pending home sales have risen for 19 consecutive months

New Home Sales Report

Sales of new homes rose 4.4% in November to a two-and-a-half-year high
This is the highest level since April 2010, when a temporary tax credit boosted demand.
Sales are now 15.3% higher compared to one year ago

Case Shiller Home Price Index

Home prices rose 4.3% in the 12 months ending in October
In nineteen of the 20 cities covered, annual returns in October were higher than September.

If you are thinking of buying a home in or around Bristol County MA or RI, please visit www.DistinctiveHomes-NE.com for a free list of homes for sale in Westport MA and surrounding towns.

Would you like to receive a current market update of your specific area? Contact me with your request.

If you are thinking of selling your home contact me for a FREE Current Market Analysis and to learn about our Market Plan to get your home SOLD!

We work with one going in mind, YOURS!

Noemi Cardoso

Local Office. Local Agents. Local Knowledge.

William Raveis Real Estate
911 Main Rd - Westport MA 02790
Cell: 508-558-1945
www.DistinctiveHomes-NE.com
noemi@DistinctiveHomes-NE.com

Sunday, December 30, 2012

The 5 Biggest Real Estate Stories of 2012

by The KCM Crew

At KCM, we concentrate on the trends that impact the housing market. Here are what we believe were the biggest stories of 2012.

Housing Was a Tailwind not a Headwind to the National Economy

Over the last several years, many experts claimed that the housing market would not recover until the overall economy recovered. Others, including us here at KCM, believed the exact opposite – the overall economy would not recover until housing recovered. This past year, housing has been one of the only bright spots in an otherwise lethargic economic recovery.

The Fed Remained Committed to Historically Low Mortgage Rates

At the end of 2011, 30-year mortgage rates were at 3.95%. Many, including us, believed that rates had only one way to go – UP! We were wrong. Mr. Bernanke and the Fed continued policies which supported keeping rates at historical lows. This resulted in rates dropping to below 3.4% by year’s end.

Demand Remained Strong throughout the Year

Home sales numbers continued to increase throughout the year suggesting that the country’s belief in homeownership still remains strong. Even the last Existing Homes Sales Report of the year from the National Association of Realtors revealed that home sales were up 5.9% from the previous month and 14.5% from the same time last year.

Inventory Began Shrinking

Housing inventory is at its lowest level (4.8 months) since September of 2005. This represents 22.5% decrease as compared to the same time last year. Shadow Inventory, the inventory of distressed properties coming to market, is also shrinking. This is for two reasons:

we are clearing more foreclosures and short sales
less families are falling behind in their mortgage payments

Prices First Stabilized and then Increased

Perhaps the biggest story of 2012 is that home values turned the corner and headed upward. By the end of the year, home values were up 10.1% compared to the end of 2011.

If you are thinking of buying a home in or around Bristol County MA or RI, please visit www.DistinctiveHomes-NE.com for a free list of homes for sale in Westport MA and surrounding towns.

Would you like to receive a current market update of your specific area? Contact me with your request.

If you are thinking of selling your home contact me for a FREE Current Market Analysis and to learn about our Market Plan to get your home SOLD!