We seemed to have skipped the typical winter slowdown and jumped ahead to the spring market in 2013. This unusually busy market has been propelled by the massive amount of buyers looking to purchase before prices and interest rates begin to increase. Here are some of the more interesting stats*:
- 4,799 new listings were 6.2% less than January 2012
- 3,456 pending sales (under contract but not closed) was a 13.3% increase over January 2012
- 2,797 closed sales was an 11% increase over January 2012
- $160,000 median sales price was a 14.3% increase over January 2012
- 11,977 number of homes for sale is a 32.2% decrease from January 2012 and a 10-year low!
- 2.9 months’ supply of homes for sale is a 42% decrease from 2012
- Note: Figures below 4 months’ supply point to a “sellers’ market”
The headlines you will see, and a topic I have blogged about in the past, is the imbalance of supply and demand. As the stats above convey, buyer activity and sales are up while listings are down. This disparity has the effect of frustrating buyers and slowing (but not stopping) the real estate market’s recovery. The good news about this dynamic is that it will continue to increase home prices which should encourage home owners to list their homes for sale. In addition, the lack of listings has helped boost the new construction industry. This not only offers buyers more opportunities, but gets a lot of people back to work and helps our general economy.
If you are a buyer, work closely with your agent and be ready to “pull the trigger” on an offer. It is an incredibly competitive marketplace out there in some area, so get educated about the areas you are interested in and be ready to compete.
If you are a seller you should prepare to list your home sooner than anticipated. This imbalance benefits sellers the most. The first step is to determine the likely value of your home. The second step is to get your home ready to show. The condition of your home affects the sales price more than ever, to receive top dollar your home must be in mint condition. Your Roger Fazendin agent can assist you with a free market analysis to determine price as well as a free staging consultation by a certified designer to get your home looking its best.
It’s a strange market out there; I encourage you to contact your Roger Fazendin agent to provide guidance and representation.
*The stats are derived from the regional MLS and compare January 2012 to January 2013