In 2009, low prices spurred buying activity among investors, first time home buyers who had been priced out of the market and anyone with some extra cash on hand. Upward trends accelerated markedly in the first three quarters of 2013 and took a bit of a breather in Q4, ending 2013 with another 20% gain.
Days On The Market: In 2009, our local market was seeing around 150 DOM on average. Since then, the market time has shortened to 56 DOM in Q3 2013 finishing the year (Q4) at 68 DOM.
Distressed Sales: After peaking at 60% in Q1 2011, the trend has been moving consistently downward below 40% for the last 18 months -- AND below 20% for the last 6 months.
As inventory of distressed properties dissipate, our market is returning to more normal levels.
Recovery: At the end of 2013, we see four critical trends; price, volume, market time and distressed sales have aligned and are pointing towards a recovery for nearly 3 years.
Mortgage Rates were around 3.5% in early 2013 vs. 4.5% today. The forces in the coming year are likely to be driven by interest rates and inventory.
DID YOU KNOW... Of the 175,000 new jobs added in February, 15,000 were in Construction...is this more evidence that the housing market is making a coming back?