This year home prices are on track to register their first yearly gains since 2006 and the strongest year since the housing market fell off a cliff. The rise is due in part to stronger demand, a fall in inventories, and continued low home loan rates.
Pushed up by rising sales and a decline in supply, home prices climbed more than forecast in the last quarter of the year, indicating a rebounding real estate market will bolster the U.S. economy for the first time in seven years.
While the California housing market continued to show strong sales growth since early 2012, the lack of inventory remained an issue throughout the year.
With an imbalance between supply and demand, home buyers have been fiercely competing with each other. The market competitiveness is evident in the increase in the number of sales with multiple offers, as reported in my blog from November http://www.marinmodern.com/blog/housing-inventory-in-marin-county-and-nationwide-leads-to-prices-rising.html
Nearly six of ten home sales (57 percent) received multiple offers, and the percent of sales with multiple offers was the highest in the last 12 years according to the California Association of Realtors (CAR).
The intense market competition led to more properties being sold above the asking price. In 2012, the share of homes sold with a price above the list price increased to 33.1 percent. It was the highest since 2005 when the housing market was extremely competitive, CAR stated this week.
Properties also stay on the market for a much shorter time than they did in 2011. A residential property typically stayed on a multiple listing service (MLS) for five weeks in 2012. That's a significant drop from 10.5 weeks in 2011, and was the lowest since 2005.
WHAT'S IN STORE FOR 2013?
Recovery will continue in 2013, with both Sales and the Median Price Up, according to CAR's December report.
With the tight supply conditions are not expected to disappear anytime soon, the intense market competition is here to stay. Multiple offers and above- asking-price offers most likely will continue to be the norm of the market in the upcoming year. But as always - this is what to expect when you price your home at Market Value. The key to success is to determine the correct list price. The old saying: "You only have one chance to make a first impression" is as true for homes as it is for humans.
NATIONWIDE FORECAST LOOKING GOOD TOO
Nationwide looks equally promising. Reuter reported today that the pending home sales report pointed to a strengthening in the housing market recovery. Contracts were up 9.8 percent in the 12 months through November.
Home sales and prices are rising, encouraging builders to undertake new construction projects. Home resale contracts were up in three of the country's four regions.
It definitely seems like the housing market has turned the corner after a dramatic collapse.
Now, cheers to 2013. I'm excited and I look forward to assisting you with your real estate sales and purchases in Marin!