There is evidence that a housing rebound is underway! Remember the view of this possible rebound is national in scope. You and I are really only interested in our own neighborhood so what we hear and see in the newspapers and on radio and TV often are a national glimpse. But that’s OK because I think we are all very anxious to see some positive improvement. Any improvement is welcome news!
So lets consider what Realtytrac.com has to say since they are the leading online market place for properties. Their year end report shows a total of 2,698,967 foreclosure filings in 2011….while this number is hard to get my head around….this is a 34% decrease in foreclosed properties from 2010! And foreclosure activity in 2011 was 33% below 2009 and 19% below 2008. It appears there has been significant improvement in the vast number of foreclosures….I am sure we all hope so!
Most of us are aware at the problems home builders have faced over the past few years and how they have struggled to stay afloat by significantly lowering new home prices to turn those homes into cash for out and out survival. Well, we saw an increase in new home construction of new single family homes of 4.4% in December and according to the commerce department this is the 3rd monthly increase in a row. A Good sign! Home builders are definately more hopeful because they are being told people may be open to buying in 2012! I personally hope so since I have a beautiful $5m spec home to be built this year in lovely Menlo Park….gulp!
We have talked about a drop in foreclosures, an increase in new construction, plus we have also seen an increase in sales of existing homes nation wide of 5.0% and this follows 3 consecutive monthly increases. Could it be the “Real Estate Moons” are aligning? Lawrence Yun, chief economist for the National Association of Realtors, said these are early signs of what may be a sustained recovery. “The pattern of home sales in recent months demonstrates a market in recovery,” he said. “Record low mortgage interest rates, job growth and bargain home prices are giving more consumers the confidence they need to enter the market.”
And finally, the inventory of homes for sale is at its lowest level in seven (7) years! Inventory is currently at 6.2 months supply and when inventory is below 7-8 months it signals (according to the experts) steady home prices. Also Housing price depreciation seems to have reached bottom and in many markets prices are on the rise.
I don’t have to tell you interest rates are still at the lowest level in decades….certainly in my lifetime! Taking all this potentially good news in to consideration, I don’t think there has ever been a better time to buy or sell than right now.
My fingers are crossed, I look upward often, and I want you to know I am here for you if you need anything!! Happy New Year!
