The Monarch Group Real Estate Blog

A look at the 2013 Real Estate Market

The 2013 Real Estate Market is in full swing! If you haven’t heard the news, this year is shaping up to be the best year in real estate since the market fell in 2007-2008.

Here’s some brief insight on how the year is shaping up:

  1. Demand is up, supply is down. What does this mean? Home prices are rising! According the National Association of Realtors, the median home price is up 10.1% for an average of $180,600.  Since interest rates are still historically low, buyers are acting fast to purchase their dream home.
  2. Speaking of interest rates… 2012 was a great year for the home loan borrower, and 2013 won’t be too bad either. Although interest rates are forecasted to rise in the next year, the rates are still lower than we’ve seen in previous “hot” markets.  According to Bankrate.com, rates are expected to fluctuate between 3.5% and 4%.
  3. We mentioned supply is down, and we mean way down.  The national listed inventory is down 22.5% from 2012.  Completed foreclosures have been decreasing for 16 straight months now.  With low interest rates and fast acting buyers, if you’ve considered selling your home you may want to act fast too!
  4. Even though foreclosures have slowed, they’re still in the works.  According to Corelogic, the overall number of distressed homes is down to about 2.3 million. Yes, the number is down but the reason is due to processing delays. Wonder why this is good news? Two words: Property Value.  A “pause” in foreclosed homes being purchased gives property value a chance to battle back. More good news for sellers!
  5. New Construction is on the Rise! And we mean that literally. New building permits for single-family homes and condominiums are 27% from last year. According to the Census Bureau, new home sales are up 15.3% since last year and the prices are rising quicker than existing homes.  If buyers can’t find the home they want, they’re willing to build it!

 

If you would like a free competitive market analysis for your neighbor, call today! You can search all the homes for sale in the Louisville area at www.ElizabethMonarchGroup.com.

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