The next twelve months should see yet more improvements in the nation’s housing markets, propelled by record-breaking low mortgage rates and improving unemployment statistics, according to several real estate experts.
Steve Storti, Prudential Fox & Roach REALTORS’ senior vice president of marketing, told the Philadelphia Inquirer that by the time we look back on 2012, many people will see it as a transitional year:
“Just as you can only declare a recession after the fact, maybe we’ll be able to say this is when it changed over.”
Storti cites the fact that home prices are on the up across the nation, and most markets are expected to see this trend continue for the near future at least. Phoenix, Arizona, which was one of the hardest hit markets in the housing crisis, has seen home prices jump by an incredible 21.7% over the last twelve months. Meanwhile, the National Association of Realtors said that nationwide, sales of previously owned homes soared by 5.9% in November compared to the previous month, with sales increasing by a whopping 14.5% compared to November 2011.
One of the biggest factors behind these rising prices is thought to be the decline in inventory. Across the nation, inventories have fallen to just 4.8 month supply on average, the lowest level since December 2011.
Another area showing promise is that of new home sales. Last month, total sales of new homes reached their highest level in two years, while the median sales price rose to $246,200, up from $237,500 the month before. However, IHS Global Insight warns that while the new home market is improving, it still has a long way to go before we can reach what is considered a ‘normal’ level of sales, and will not likely do so until 2015 at the earliest.
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