|
Prepare for 2012 to be a year of ((Opportunity,)) tough competition and sluggish but moderate growth,
Bright spots will increasingly break through the gray skies of 2012. “It will be stronger than 2011,” “Barring a meltdown in Europe, the U.S. should do well in 2012.”
Below is our outlook of our local market after selling real estate for the past 15 years combined. We believe that we have a very good feel for the market, but, again, you are the one that makes the final decision on your own home, whether selling or buying. We do hope the information will be of some help. Keep in mind, looking at some National statistics, attitudes, and feelings can affect our local market somewhat.
1. Home sales across America in November 2011 were up by 7.3%, which is the highest in 18 months; this is a very good sign!
2. Home Builder stock on the stock market rose 30% in 2011. (Investors should know what is happening with their research.)
3. Public sentiment is way up compared to the past, which normally breeds good times.
4. Nationwide inventory of resale homes is at its lowest since May of 2005. Do we need to say more what will likely happen to pricing?
5. Projection for jobs in 2012 is very positive compared to the recent past.
6. A national election year does help the rates. With interest rates lower than most people have ever seen, and prices lower than they’ve been in years, the current marketplace has created a unique environment that may not be repeated for decades.
“Informed and savvy consumers and investors recognize there’s great opportunity in this market and they are leading the way to recovery,”
7. Bank foreclosures and short sales are down considerably compared to the past 6 years. Now for our local market; Brighter days!
8. Sears and K-Mart have announced they will be closing 79 stores with only 9 scheduled closings in the Western half of the United States. The higher number being closed in the Eastern half of the United States does indicate that they have a more positive outlook for the Western Region.
It looks like a very positive market year ahead for local real estate. We have been in a buyer's market for about 7 years, which, in most cases, is converting to a neutral market. Some price ranges are in a sellers’ market now because the inventory is down and, in some cases, an increase in prices. The market and supply for upper end homes, lots and/or acreage still have plenty of inventory and will remain that way for quite some time with prices starting to stabilize in some areas.
Many parts of the Southern California market have bottomed out making it easier for people to sell their homes. That market should be coming back. Phoenix and Las Vegas still have a long time for a market correction; possibly a couple of years in some areas. Northern California has appeared to have bottomed out in most areas.
|
