The Housing Market Finds Its Strength

Watch on your mobile device >>

The real estate market is certainly gaining strength. According to national year-end reports, we’re clearly seeing a turnaround. One sign is the days it takes for a home to sell is down by 29.6% nationally over the previous year. Top that off with a shift in the amount of inventory—from an overabundance to an actual shortfall of homes available for buyers—and you can see why the housing market has strengthened. The inventory shift from too many homes on the market to a shortfall was due to two main reasons: investors purchasing foreclosures and people taking advantage of interest rates that hovered at record lows during 2012. These factors, as well as a lack of new construction, are leading the country to a turnaround in real estate. We’re seeing these factors in many markets across the U.S.  

What’s happening locally in our region is all very positive. Our actual number of transactions was 113 sales—an 11.15 % increase over last year. That’s a big increase. In State College, home sales were up 17% which means the largest school district within our region is doing as well as or better than the rest of the region. The days a home is on the market is down a medium of 40% in our region compared to 29.6% nationally, so homes are selling much more rapidly in State College than last year. We’re also shifting from an absolute buyers’ market to a much more balanced market which is healthier for both buyers and sellers.

Keep in mind that interest rates are still low, but the rates won’t last forever. These rates have helped make home-buying more affordable. We’re also seeing “shovels turning” with new construction making a comeback so that gives buyers another option.  

There’s reason to be cheerful in 2013. We’re starting the year off right with an overall confidence in the real estate market that we haven’t seen in the last couple of years. The mood has changed—and it’s great!  

If you’re interested in buying or selling your home, contact me today at 814.234.4000 or christurleykbb@comcast.net. I would be happy to assist you.