Dear Friends, Clients & Neighbors,
Good News! This past year’s Residential Real Estate market was resurrected! The market started off in early January, 2013 with a BANG! Homes where going under contract quickly. Many homes had multiple offers near list price or at list price within a short time frame. This is a welcome change from the down swing since August, 2007. Realtors saw a slow but continuous change happening during 2012’s real estate market. At first, Buyers began to emerge slowly but, then in 2013, the speed was accelerated. The economy was significantly improving, their were more jobs, interest rates averaged 4.5% during 2013. Many of you may remember when rates in the 1970’s & 1980’s were at an all time high: 18% - 20%!
The number of accepted contracts throughout the region continues to soar on a monthly basis – December finished the year with a strong burst of sales. For 2013, the North Shore Region posted a total of 4,339 accepted contracts, which is an 18% increase over 2012. Every town in the region saw the number of sales increase over 2012. More significantly, the 2013 contract total is a 91.5% increase over the trough of 2008, which had only 2,265 accepted contracts.
Market Time or Days on Market (DOM) significantly decreased from 2012’s. 2013 fell to 104 days, which is indicative of the low inventory throughout the region.
As we all know, market value increased steadily throughout the year. At year end, the Median Sales Price was up 7.9% from the 2012 median. We are NOT back to the 2007 Median Sold Price of $690,000 which is the high water mark. This is important to keep in mind – the market is moving in the right direction and is forecast to do so for at least the next year, but we will not see the $690,00 median price for quite awhile.
Inventory remains low for the entire North Shore. There is only a 4 month supply of single family homes. Historically a 6 month supply is seen as a sign of a healthy market.
As the housing market continues its recovery, we can expect a few things to happen in 2014:
Home prices will continue to rise, but at a slower rate than 2013.
As home prices rise, more homeowners will emerge from being underwater, putting them in the position to finally buy and sell properties.
Mortgages will be dominated by purchases rather than refinance activity, for the first time since 2000.
Higher mortgage rates will slow home sales and price gains to more sustainable levels.
Low inventories will be helped by an increase in new construction and a decrease in investor purchasing
What does this mean for a home owner? Now is an optimum time to list your home. As always, location, condition and price are the 3 major factors in selling. For a home buyer? Mortgage rates are at an all time low but, scheduled to go up in 3rd Quarter, 2014. This puts more $$$ in your pocket, to buy a home of your dreams. Experience the Difference! ~ PAM DEVENDORF, BROKER/REALTOR
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