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Tuesday, January 29, 2013

Is the housing slump finally over?

It may be for Western New York and the rest of the country for that matter. Last year marked the highest number of homes sales nationwide since 2007.  Last October alone, the number of closings in WNY was up 23 percent from just the year before!
Why, you might ask? Record-low mortgage rates paired with eager buyers taking advantage of the relative high affordability of homes (cost to potential worth ratio) in the market contributed significantly to the jump in sales. 
Sales did drop slightly in December. This can most likely be attributed to concerns of the potential "Fiscal cliff". But last year as a whole saw existing home sales hit 4.65 million, up 9.2 percent from 2011 nationally.
These trends look to continue in 2013. It is anticipated that January sales will be back up with the supportive buying conditions and the increased incentives for first-time homebuyers.
The sales boom of 2012 has left the market lacking inventory. Last years 3rd quarter saw a drop of 16 percent in the amount of homes on the market from the same period in 2011. The shallow pool of available homes could lead to increased prices. In just the last year the average home in WNY has reached $140,829, up 9.58 percent from 2011.
I wouldn't expect a drastic change in Buffalo or our surrounding commuinities though. Winter is typically a slow time for housing sales. However, the number of new listings and sales is expected to return to the volume we saw in late summer early fall of last year by Spring. The housing industry is not out of the hole completely, but locally and nationwide the market is gaining strength.
I've said it many times over the last couple years, NOW is the time to buy.  Make your American Dream come true. Call a local REALTOR® and visit to begin your search.
As always, thank you for making 2FindYourHome Western New York's choice. We will continue to be your most accurate and up-to-date source for all things real estate.

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