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I am very pleased to announce that we have been seeing a lot of exciting new things happening in our real estate market – things that are pointing to a very positive upward trend of better days, months and hopefully years ahead. Here is an overview of what we have been seeing in the first quarter of 2012: stronger sales, continued low interest rates and plenty of available financing for buyers.
Sales
For the first time in a long time, our sales figures are showing an increase year over year. In fact, the increase is significant when you look at the exact numbers. Last year at this time we had sold 115 homes as compared to the same time this year with 274 pending sales. This is a great sign for sellers because with increased demand there is more likelihood of sellers obtaining their asking price or at least very close to it. Plus as sales continue to increase there is a greater chance of sellers receiving multiple offers on their property.
Interest Rates
The cost of buying a home is lower than ever before and these record-setting low interest rates do not seem to be going anywhere just yet. We are currently seeing rates in the 4% range or even lower depending on the type of financing and credit outlook of applicants. When buying, a home a buyer should consider both the actual purchase price of the home as well as the cost of the mortgage. In other words, what may have yielded monthly payments of $675 on a $100,000 property several years ago would cost only $476 per month on the same $100,000 amount today. This is because of the low cost of interest on the mortgage.
Financing
Leading up to the settlement recently reached between banks and regulators, the robo-signing scandal that hit the mortgage industry had impacted buyers’ ability to obtain financing in a relatively quick and simple manner. With long lists of requirements that needed to be fulfilled, many buyers were finding it difficult to get financing for their prospective purchases. But now lenders are loosening up a bit and financing is more readily available. The requirements are still there but they are not as vigilant in a lot of cases. Also, government programs that have recently been introduced are also out there to assist existing homeowners with refinances without too much hassle or verification.
Another positive trend that we have been seeing is the decreasing number of days that homes in our marketplace remain on the market before selling. What once may have been far longer to sell a home is now whittled down to as little as 45 days or less. This is a result of good amount of pent-up demand that is beginning to surface with the approaching warmer months and stronger outlook across the real estate market.
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To get in on this exciting market and either find the perfect home from our great selection of homes for sale or to explore your options in terms of selling your property as demand is on the rise – contact us today! We look forward to serving all your real estate needs!
