Spring has Sprung!

You've heard it before, but our market has already started heating up. With record low interest rates and the lowest December-level inventory in over a decade, our area has closed out 2012 with double-digit price growth. We have a unique situation because the market is good for both buyers and sellers. Low inventory is boosting prices for sellers while the low interest rates make buying a reality for more people. Buyers beware however! We are starting to see multiple offers for properties, so don't wait too long. A property in DC received over 160 offers recently. It's time to move.

Our area was designated as the third healthiest housing market in the country for 2013 according to the real estate information site Trulia. Trulia based this analysis on three fundamental characteristics of a healthy housing market: strong job growth, low vacancy rates, and low foreclosure inventory. Our 2.8 percent job growth in the first 10 months of 2012 was one of the highest in the country. The vacancy rate is one of the country's lowest, as well as the foreclosure inventory. Our area has a very good job market, and these people need places to live. With low inventory, demand is outpacing supply.

Traditionally, the Spring brings a bump in inventory. This should reduce the "feeding frenzy" effect we are starting to see, but in reality, good houses priced correctly will continue to sell quickly. As a buyer, be ready to make a strong offer before you start looking, and then go for it. Sellers should spend the time, and if necessary some money, preparing their home for the market. It's hard to put a value on cosmetic repairs and upgrades that could produce multiple offers. "If you build it, they will come."

We would suggest you get ahead of the market. Buyers should prepare their financial positions now to take advantage of any future upswings in inventory this Spring. Sellers should get their houses ready now so they won't "miss the market". We live in a great area, and our housing market in 2013 should be great as well. Call us so we can help. In addition to real estate advice, we have a long list of lenders, contractors, landscapers, and storage people who can get the deal done. Here's to a Happy New Year!

 

Warmest Regards,
Tom, Barbara, Susan and Emily
Nalls Home Partners

Nalls Home Partners 

Information Provided by National Association of Realtors�   Daily Real Estate News | Friday, January 04, 2013  

Fixed-rate mortgages are averaging near record lows, keeping home buyer affordability high, Freddie Mac reports in its weekly mortgage market survey.

"Mortgage rates started the year near record lows, which should continue to aid the ongoing housing recovery," says Frank Nothaft, Freddie Mac's chief economist.

Freddie Mac reports the following national averages with mortgage rates for the week ending Jan. 3:

• 30-year fixed-rate mortgages: averaged 3.34 percent, with an average 0.7 point, dropping from last week's 3.35 percent average. The record low for 30-year mortgages is 3.31 percent, which was set in November. A year ago, 30-year rates averaged 3.91 percent.
• 15-year fixed-rate mortgages: averaged 2.64 percent, with an average 0.7 point, dropping from last week's 2.65 percent average. The record low for 15-year mortgages is 2.63 percent, also set in November. Last year at this time, 15-year rates averaged 3.23 percent.
• 5-year adjustable-rate mortgages: averaged 2.71 percent, with an average 0.6 point, rising from last week's 2.70 percent average. Last year at this time, 5-year ARMs averaged 2.86 percent.
• 1-year ARMs: averaged 2.57 percent, with an average 0.4 point, rising from last week's 2.56 percent average. A year ago, 1-year ARMs averaged 2.80 percent.

Source: Freddie Mac 

Regional
Sales Trends

Contracts Ratified Per Month

Montgomery County 

   
(information from GCAAR) 

Washington DC
 
 

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