Housing Market Picks Up Speed for 2012

(MoneyWatch) By Ilyce Glink

It's only January, but already the latest real estate news indicate that the housing market is looking up.

CoreLogic's latest MarketPulse report, released Wednesday, suggests 2012 could be the year of the housing turnaround. Improved unemployment figures, low mortgage interest rates and inexpensive homes could be just the kick the housing market needs to begin a recovery.

Home sales are expected to rise between 2 and 5 percent year-over-year, according to Freddie Mac's U.S. Economic and Housing Market Outlook survey, also released Wednesday. That's not as much - or as quickly - as some people would like to see, but at least it didn't forecast home prices to fall further than they already have.

Foreclosures hit lowest level since 2007
FHA extends waiver to help resell foreclose homes
Freddie Mac offers a break to unemployed homeowners

This optimistic outlook is due largely to all the good economic news we're hearing about the end of 2011: Existing home sales increased in November, while the inventory of unsold homes decreased to a six-to-seven month supply. Nearly 80 percent of American households believe now is a great time to buy, and if that optimism translates to sales, the inventory could dwindle even further.

It's not just buyers who are feeling good about the 2012 real estate market. Homebuilder confidence is the highest it's been since 2007, due once again to the economic news we're hearing about the latter part of 2011.

Housing starts began to climb last year, rising to around 600,000 in 2011 from 587,000 in 2010. The latest National Association of Homebuilders (NAHB) index rose four points from December 2011, reaching 25 on the 100-point scale. The optimal score is 50 and, while we're not there yet, we could be on our way: According to the NAHB, confidence has risen four months in a row, with the latest uptick measured across each region.

WOW! Only 17 homes on the Market in Rodgers Forge!

This time last year, we had approximately 21 homes on the market in Rodgers Forge, and as the year continued, we saw higher and higher inventories of homes for sale reaching to about 35 homes at the peak. this "early" Spring is actually a great time to consider putting your house on the market while inventories are at their lowest level. Houses that are updated and in good condition sell very quickly. There are buyers out there looking for the right house.
17 Homes currently for sale:
5 -3bdrm, 2baths: $245K-$314.9K
10 -3bdrm, 1 bath: $229K-$284K
1 -4bdrm, 1 bath: $284.9K
1 -2bdrm, 2 bath: $190K (Condo)
6 Homes Under Contract
3 -3bdrm, 2 baths: $259K-$285K
1 -3bdrm, 1 bath: $200K
1 -4bdrm, 2 bath: $339.9K
1 -5bdrm, 3 bath: $599K (Victorian-short sale)
8 Homes Have Been Sold (from December 1-January 18)
5 -3 bdrm, 2 baths: $220K-$290K
2 -3bdrm, 1 bath: $219.5K-$223K
1 -5bdrm, 1bath: $305K
Of the homes sold since December 1, it took an average of 49 days to put a home in Rodgers Forge under contract.

Cost of Owning a Home More Affordable than at any Point in the Last 15 Years

Monthly mortgage payments lower than the average rent levels in 12 metro areas...
http://online.wsj.com/article/SB10001424052970203764804577060502694077494.html?KEYWORDS=NICK+TIMIRAOS

Even in this market, we have seen competing offers in Rodgers Forge!

As the year winds down it is interesting to look at the market and take stock of the good , bad and the ugly. We saw an unprecedented number of properties for sale in the neighborhood this year. At any given time this summer we were well over 30 homes for sale, which is a good 20% more than what is typical in Rodgers Forge. The number of days on market swelled as the houses that were in disrepair and/or vacant sat for months. We even had a few lanquish for more than a year while prices were cut again and again. While this did not help overall values, the neighborhood still saw brisk sales for homes that were in very good condition--especially those with 2 full bathrooms, new and open kitchens, and those coveted end-of-groups. These properties would typically be sold in under 30 days, some within 7 days. We even saw competing offers this year for homes that were in top condition and had all the things buyers are looking for.
So what is your house worth in today's market? For a 3 bdrm/2 bath that has a newer kitchen and is in top condition, you can expect $285K-$300K. We saw a 3bdrm, 1 bath with a lovely open kitchen sell a few weeks ago for $295. For an EOG in top condition, you can expect $310K-$325K. For homes with more bedrooms prices are higher.
What if your house is not perfect and needs work? As long as you purge your house of clutter, apply some fresh paint, and maybe get a little staging advice, you would be surprised how some elbow grease applied in the right areas can go a long way toward a quick sale at a good price.
As long as rates stay low, which the Fed has guaranteed for the next 2 years, buyers will be buying houses. And Rodgers Forge continues to be a neighborhood of choice for many young families, first -time home buyers, and buyers who want a stable neighborhood that they know will be easy to resell.
If you want more specific information about your own home and it's value, I would be happy to provide a market analysis. Feel free to email or call me.

November Housing Update

HAPPY THANKSGIVING!
Here is the latest activity going on in the neighborhood:
20 Homes Currently For Sale:
9-3bdrm, 2baths: $245K-$329.4K
9 -3bdrm, 1 bath: $$243.5K-$289.9K
1 -4bdrm, 1 bath: $284.9K
1 -5bdrm, 1 bath: $325K
11 Homes Under Contract
5 -3bdrm, 2 baths: $239K-$297.5K
4 -3bdrm, 1 bath: $200K-$268K
1 -4bdrm, 1 bath: $313.9K
1 -4bdrm, 2 bath: $339.9K
3 Homes Have Been Sold
1 -3 bdrm, 2 baths: $387.4 K
1 -3bdrm, 1 bath: $295K
1 -4bdrm, 2baths: $316.5K
Based on the current properties under contract, it is taking on average 107 days to get a house under contract. However, there are still plenty of homes that are taking less than 30 days to be sold. It soley depends on the condition of the property.
Information provided as of October 31, 2011.