Real Estate Market Update Sept. 2013

September 2013

MORE DOUBLE-DIGIT PRICE INCREASES

In numerous major metropolitan markets across the United States, there have been double-digit home price increases since the start of the year.  The latest National Association of Realtors® news releasestates that home prices have climbed 13.7 percent in July when compared to the same time last year. This marks 17 consecutive months of year-over-year price increases. The last time this occurred was January 2005 to May 2006, the peak of the housing bubble. This begs the question; is there another housing bubble underway?  Industry insiders don’t think so.

The reality is, home prices are still undervalued across most of the country. Essentially, the market overshot on the way down and the dramatic price increases are in fact a correction. 

Also, not all markets are witnessing a significant rise in prices.  Those areas that experienced minimal price declines during the recession, are now seeing a less dramatic climb during the recovery.  Look to the graph to see how home prices are rising in the communities that most interest you. 

With the rise in home prices, homebuyers are anxious to take advantage now. In the same release, NAR states that the median time on market for all homes was 42 days in July, which is 39 percent faster than in July 2012. Forty-five percent of homes sold in July were on the market for less than a month.

Continue to look on the bright side buyers. Though competition is fierce, homes are still more affordable than years past and interest rates are still historically very low. Since prices have risen, more potential home sellers are now above water and can finally make their move.  With more home sellers in the market, more inventory and selection will offer you even more opportunity.

If you want to learn more about price increases and how they will impact your home buying and selling goals, please contact one of our agents today.  For home sellers, we will run a competitive market analysis. Similar to the graph, the analysis will provide you with in-depth details such as median price and time on market.

For homebuyers, we can help you find your dream home in your price range, negotiate on your behalf, and walk you through the sales process.

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