As you can see from the first chart above, Position Realty Market Index, the first time home buyer tax credit created a great deal of demand in the market similar to the real estate boom from 2004 to 2006. From March to June of this year the residential real estate market experienced another buying frenzy caused without government intervention or relaxed mortgage underwriting standards. Currently the number of transaction is slowing back down to number of transaction experienced around the same time a year ago but the market is still very competitive with multiple offers and prices are remaining high. This slow down in number of transaction could be cause by the upcoming presidential election.
Since January 2012 (8 months ago), the average sold price has increased approximately +16.7% (down from last month), the average days on market have decreased approximately -23.9% (down from last month) and the number of transaction has increased approximately +18.2% (up from last month). The largest average price increase over the last 12 months was experienced in March from $168,961 in February to $184,078 in March.
The volume of REO purchases since January 2012 has decreased approximately -42.4% and the volume of short sales have increased approximately +17.3%. The volume of REO purchases are shrinking due to the increased volume of trustee sales, more banks are accepting short sale transaction and an existing supply of inventory is getting purchased at a faster rate.
The current supply of homes for sale on the market is 20,582 where a year ago there were approximately 48,000 homes on the market. Since the January 2012 (8 months ago), the number of homes for sale on the market has decreased approximately -13.7% (up from last month). As more and more buyers enter the market and as more of the supply of residential homes are exhausted, real estate prices will continue to increase at a faster rate (as currently experiencing).
Trying to “time the market” for the perfect time to buy is nearly impossible but there is no better time than now to purchase. Real estate prices are at an all time low (not for long), mortgage rates are at a historical low and the market is improving both in terms of prices and the overall economy. Time to buy is NOW!! Give us a call to discuss your best buying strategy, TODAY!!