Dear Friends and Clients,
Last year I ended this letter with a quote of “Onward & Upward” for 2012 and for real estate that was an understatement. The market is as if someone turned the lights on in February and they are still on! I personally had my best year ever in real estate and the office as a whole definitely saw an improvement.
Interest rates are still lower than ever. 30 year fixed rates can be found at 3.5%. 2010 ended with a 6 month supply of homes. 2011 ended with a 2-3 month supply. This year the inventory has shrunk to the point of less than a month supply in many areas. This year a well priced home sold in less than 10 days with multiple offers; often selling for above asking price. And in November 2012 the number of mutually accepted offers was the highest that it’s been since 2006.
Not only has the inventory shrunk, but prices are now headed up. System wide in the Northwest MLS prices jumped 14.9% from a year ago making it the largest year over year increase since July 2006 when prices surged 15.5%. I saw many cases where a home that would not sell in 2011 sold with multiple offers this year. If you would like more information about your home specifically I would be happy to chat with you about how your neighborhood is doing and what price you could expect to sell.
Similar to last year the rental market remains very strong. Even commercial rentals are coming back. All the store fronts that were empty around our office have filled up in the last couple of months. It’s a great time to own rental property.
I truly hope that 2012 was a great year for each of you and wish you a healthy, happy and wonderful 2013.