2009 vs 2010
Looking at property sales figures and comparing them from 2009 to 2010, there is an obvious increase. As much as ten percent or more higher this year, what’s promising is that this is a very normal tendency in a stable market. This year in most typical markets there was an average of 11,000 properties sold as opposed to last year’s 10,000, which means that the relatively normal movement indicates a positive, upward curve.
Higher Median Price Range
Our median prices have gone up about 25% up from what it was in 2009. Contrary to a common misconception, an increase in median price range does not mean that the prices have gone up. In fact, what it really means is that there is a significantly more activity in the higher priced properties; all very promising signs for us.
Fewer Days on Market
The average number of days on market (DOM) for many properties has significantly reduced – as much 40%! Another way of looking at this is that there is an average 40% decrease in time it takes for the usual property to sell. In other words, things are looking up!
Lower Interest Rates Stay Low
We all know they’ve been low for some time, but no one really knows how long they will stay that way. Experts are predicting that they will continue to remain low for at least the next six months, to as long as 24 months, which is great if you’re in the market for a new home. With this promising to carry into 2010, this is also a very good time to get that refinancing done, if you haven’t done so already, and lock in those great rates!
A Few Not-So-Fantastic Trends
Of course, it’s not always a bed of roses and this year’s expected hurdles are mainly centered on a slow (although definitively steady) pace of improvement, slow job growth, and an inclination toward short sales and foreclosures in the more expensive properties ranging from $1.5 million and up.
The bottom line of what to expect for 2011 is a scene of varying markets; each unique to the next, which is why you will benefit from an individual consultation with your real estate agent – to examine the trends in YOUR area.
Generally, based on 2009 versus 2010, we will see “business as usual” but with the advantage of a relatively flat range of prices and the disadvantage of slower than usual job growth. Holding on to the hope that with small incremental growth and little bits of improvement, we expect another year or two to go by as they have been and then things should eventually start smoothing over and working out.
