Thursday, January 3, 2013

Real Estate in 2013 - What has happened and what to expect.

What were the five biggest stories of 2012 and how do they effect Charlottesville Real Estate?

According the KCM blog, they are as follows:

Housing was a tailwind to the economy and not a headwind

That's right, housing helped the economy to pick up and did not drag it down. Despite claims by many experts that homes for sale  would not pick up until the overall economy picked up, housing has lead the economy and has been the only bright spot in an otherwise lethargic economy.

The Fed Remained Committed to Historically Low Mortgage Rates

If I haven't said it before, I should say it now, you will not find a better rate to purchase homes in Charlottesville! At the end of 2011 30 year mortgage rates were at 3.95% and everyone thought that there was only one way for these rates to go; up. But the Feds supported policies that kept rates down and this resulted in rates dropping to 3.4% by year's end. Truly, if you are looking to sell your Charlottesville Home, you have more potential buyers this year than you did last year, because they could afford the rates. If you are looking to buy a Charlottesville Home, you can get a lot more home for your house payment.  

Demand Remained Strong throughout the Year

Home sales numbers continued to increase throughout the year, supporting the belief that we believe in homeownership as a way to prosperity and an achievement of the American Dream. Even the last existing homes sales report of the year from the National Association of Realtors revealed that home sales were up 5.9% from the previous month and a whopping 14.5% form the same time last year. 

Inventory began Shrinking

Housing inventory dropped to its lowest level (4.8 months) since September of 2005, a 22.5% decrease compared to the same time last year. Why? Because more and more of the short sales and foreclosures are getting cleared from the market than are being added and more families are staying caught up on their mortgage payments. 

Prices first Stabilized and then Increased 

The biggest real estate story of 2012 is that Home Values as a whole turned the corner and headed upward. By the end of the year home values were up 10.1% compared to the end of 2011. Looking ot get that "stellar deal" on a Charlottesville Home for Sale? Better hurry up! 

And what should all of this makes us expect? 

Demand for Housing Will continue to Surge

The market has turned and all signs point towards buyer demand continuing to increase through 2013. Household formations have shot up to boom-time levels in 2012 and are projected to increase at an even faster rate in 2013. This could have an effect in prices as you seek to buy a home in Charlottesville and the supply is shrinking. 

Generations X and Y are proving their belief in Homeownership

Contrary to what many have hypothesized over the last few years, young adults (ages 18-35) are just as committed to homeownership as previous generations have been. Recent Studies have shown: 
- 43% already own a home
- 72% see homeownership as part of their personal American Dream
- 93% of those currently renting plan to buy a home

Move up Sellers will Return in Great Numbers

Over the last few years negative equity has prevented many from upgrading their homes to something more sizable or in a better location. However, as prices recover and the mortgage rates show no signs of skyrocketing, more and more families may realize that now is the time to pursue that bigger or better home. 

So if you are living in the Charlottesville Area, relocating or otherwise just wondering if you should continue to pay that rent that you are paying, now truly is the time to investigate becoming a homeowner and achieving all of the tax breaks and security that it provides instead of paying for someone else to own a home. 

For complete articles, go to: www.kcmblog.com

If you want to learn more about Charlottesville Homes for Sale, Buying a Home in Charlottesville or Selling a Charlottesville Home, please contact me, I am here to help! 

Quinton Beckham
Keller Williams Realty 
434.242.6212

No comments:

Post a Comment