The data’s in! 2010 finished the year with the average month-to-month home price actually HIGHER than it was in 2008 and 2009! Hard to believe, isn’t it? Everyone’s complaining because their house isn’t worth what it was, and in most areas, neighbors watch anxiously each time a new “For Sale” sign goes up. “How much less will THIS one sell for?”, they worry. .
The good news is that despite our freezing weather, in January, active listings got more showings than they had on average in the dismal months after the expiration of the tax credit. Lots more! The number of showings is typically a pre-cursor to the number of sales, so if showings increase, sales won’t be far behind. There’s comparatively fewer homes on the market too, than at this point a year ago, so this should contribute to an overall upward pressure on prices. This doesn’t mean we’re going to experience a huge jump in values.
After all, home prices are down an average of 16% from the peak in 2006. (This is an AVERAGE – some neighborhoods experienced huge drops of 70-80%, while others stayed relatively stable.)
Each neighborhood has its own special characteristics, and therefore, its own price trends. Here at Your Castle, we generate a price change map for most Denver Metro area neighborhoods. Let me know if you’d like one for your area – you can tell exactly what’s gone on. The maps include price changes, short sales & foreclosure stats.
There’s one more factor that will shape the future of the housing market. Interest rates have begun to creep north. In April, mortgage insurance monthly payments will take a big jump also. This means homebuyers will need to figure more interest and a higher mortgage insurance premium into their housing budgets and will have to search for a lower priced home than they might have been able to buy last year.
All signals point to a GREAT time to buy! Prices are still comparatively low. Interest rates are still fairly low, and the new mortgage insurance requirements haven’t kicked in yet. This is an unbeatable combination for buyers!
Facebook
LinkedIn
Blogger
Trulia
Zillow
Twitter
Active Rain
