The year-end statistics are in from the Spokane Association of Realtors and I believe 2012 will go down in the history books as the year the market turned around in Spokane. Here are the numbers for the end of the year:
• 2012 year-end sales were up 12.3% (4,521 vs. 4,025)
• the average sales price was up 5.9% ($177,279 vs. $167,456)
• median sales price is up 3.7% ($160,000 vs. $154,300)
• new construction sales are up 8.3%.
• inventory is down 14.2% (1,994 listed at the end of 2012) – lowest inventory since
So, in a classic decreasing supply and increasing demand scenario, the market is improving and prices are on the rise. Prices started falling in July, 2005 and five years to the month, prices starting climbing back up in July, 2012. After a few months of this slow but steady climb in prices, I predict the market is in a slow, but sure recovery mode. I do not believe we will see prices skyrocket any time soon, but they will continue to climb. By the end of 2013, I believe sales will be up again 10-15% and prices will be up
Home mortgage interest rates are still at all time lows with many loan programs offering less than 4% interest. With a still healthy inventory (albeit shrinking), historic low interest rates, low prices (albeit on the rise), this will likely go down in history as the perfect time to purchase real estate. As they say, you should buy low and sell high . . . we are at the low of the real estate market. We often say that you don’t know when you have hit the peak of the market, nor come out of the trough lows of the market until you are past them. We are definitely past the trough. Now is the time to buy! And because many buyers are figuring this out, now is the time to sell, as well. Well priced homes that show well are selling quickly.
Don’t forget to check out my website at SabrinaSellsSpokane.com and please let me know if I can ever help you with your real estate needs.
Have a great week everyone!