Your Home: How did the 2012 real estate market fare?
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It is New Year's Eve. Where does the time go? Seriously, I want to know. Speaking of time, it's time for our annual Your Home yearend real estate wrap up. How did the housing market fair in 2012? We sat down with broker Kevin Clancy for some answers.
“2012 was a great year for real estate. The second half of the year is where we really saw the strength. Mostly right after the election. Markets don't like uncertainty. It didn't matter who won the election,” Clancy said.
The National Association of Realtors reported that home sales were up 5.9 percent for the month of November and that sales are on track for a five year high.
Clancy said, “The fall market was one of the strongest I've been involved with. Pending sales are up. Prices are starting to increase two percent to four percent. All the signs are there.
While sales are up drastically from last year, we're still short of what the National Association of Realtors considers a healthy market. Clancy cites the unprecedented, historically low interest rates as the driving force behind the market today.
“Basically, you can buy the same house you could buy in 2004 for $400 a month less. Buyers are starting to realize that homes are on sale and that it's a great time to buy,” Clancy said.
Of course we had to ask Clancy to gaze into his crystal ball and tell us what he sees for the housing market as head into 2013.
Clancy said, “The number one thing, in my opinion, is buyer sentiment. Just like consumer confidence drives economics. Same with real estate. I think we're at the beginning of a six to seven year, positive cycle for real estate values.”
He went on to remind us that lenders aren't as stingy as they were a few years ago. If you're working and paying your bills on time, money is available. And with interest rates as low as 3.5 percent, why wouldn't you?