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 transactions is slowing back down to number of transaction experienced around the same time a year ago due to the lack of inventory and we are currently in the holiday seasons.
Since January 2012 (10 months ago), the average sold price has increased approximately +23.5% (up from last month), the average days on market have decreased approximately -22.7% (up from last month) and the number of transaction has increased approximately +10.3% (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 -50.7% and the volume of short sales have decreased approximately -0.5%. 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 22,283 (up from last month) where the same time a year ago there were 46,197 homes on the market which is a decrease of -51.8%. Since the January 2012 (10 months ago), the number of homes for sale on the market has decreased approximately -6.5% (down 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 (lack of supply causes prices to increase).
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!!
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