Home Sweet Homes

Most of our tenants are homeowners and we are pleased that the housing numbers are looking up!  Here is some interesting info about all of the latest and greatest details regarding the housing market.

The housing market is at an all time high, with the DOW closing on March 6th at over 14,000! This is practically double the all time low back in 2009. It’s a seller’s market!

  • Home foreclosures are down, decreasing the number of inexpensive properties on the market.
  • The unemployment rate is also down, creating the possibility for more potential homebuyers.
  • Buyers want to get in on the lower interest rates before they climb back up. Long term interest rates are actually lower this year compared to last year.
  • The sale price of homes rose again for the 11th straight month.
  • Simple supply and demand: There are fewer homes, both new and pre-owned, on the market now than there have been since 1999, increasing competition and driving prices upward. There has been a 40% increase in buyer activity since this time last year. Just from December to January of this year there has been a 15% increase in home sales. That’s huge!
  • If you haven’t already, now is the time to refinance, as properties continue to be priced at 20 to 30 percent lower than they were at the peak of the market in 2006.

This fabulous window of opportunity for sellers may come to a halt if the Federal Reserve decides to raise interest rates on mortgages, ending the 30 year fixed interest rate at 3.5% trend. If in fact interest rates do increase, let’s say to 5 or 6%, due to inflation or other factors, sellers may have to settle for a lower offer on their property.

This housing market increase may help provide the U.S. economy with the bump it needs to get more money into consumers’ pockets, which may increase overall spending. Looks like 2013 isn’t off to as rough a start as some may have predicted!

For more on the current housing numbers, check out CNN and Newsday on the web.

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