The Real Estate Market in November 2012
Real Estate Market in November
According to the National Association of Realtors the median home value is on its way up. The chief economists suggest that it will increase by about 15% over the next 3 years. Although there has been recent improvement in the real estate market, most cities will find that property appraisal prices will fall more this year than last. In October, the median list price for a home had declined and settled at $189,900. This is exactly where it was last year at the same time. Experts also noted that the numbers of homes that are being listed for sale are down about 17% when compared to the same time of the year. This can help raise home prices in many regions across the US even though demand may be slowing down significantly.
Good News for the Real Estate Market
According to the US Department of Housing and Urban Development there was good news for the real estate market in November 2012 as they are still seeing the housing market in an optimistic light despite these seemingly small setbacks. This is due partly because they anticipate home prices and property appraisal prices to continue to rise. Even in the latest housing crunch, they never dipped as low as they did in 2009. Instead, for the last three years prices have continued in an upward trend although they rose and fell all along the way. It seems that now they have created a bottom and housing experts expect them to continue on the upward trend of price appreciation.
Even though the prices for single family homes have continued to rise the growth has slowed considerably since the summer months. Here are four main housing trends:
· Building permits for multifamily dwellings rose nearly 10 percent. And multifamily housing starts rose 7 percent in September. These are presently at a level that has not been seen since November 2008.
· There is still a positive streak for developers of single family dwellings and the number of permits has continued to increase for 17 consecutive months. In September they were up 3.6 percent. This is the highest level that we have seen in four years. However, even with the positive gains, single family dwelling starts are still 69 percent beneath the pre-recession numbers in November 2005.
· For 6 consecutive months existing single family dwelling prices have increased a small bit. In August they were up just .88 percent. Even though the price of new construction of single family dwellings dipped by 3.2 percent in September, it is still 1 percent above where it was in September 2011.
· New single family dwellings sales increased in September by about 5.7 percent. Although the volume in September was up 27 percent from the same time last year, it is still sitting at 72 percent below the highs in the pre-recession market of July 2005.
The bottom line is good news and bad news. On one hand, the housing market just keeps showing signs of growth. But on the other hand, we are nowhere close to where we were pre-recession. However, the housing market in the US is steadily making a slow recovery.
Job Reports and the November Housing Market
Job reports had some good news as well as some bad news for the real estate market. The bad news is that job growth was below the average in some of the toughest metro areas. These are the areas that had the largest decreases in housing prices during the bust and more recently have the highest vacancy rates as well. The good news is that in October, 2012, 75% of all 25 to 34 year olds were employed. This has risen slightly from 74.9 in September. The unemployment for this very important group to the housing market fell to 8.3% in October. This is down from 9.7% from this time last year. With this groups’ greater participation in the labor force, the housing industry grows.
Good News for the Real Estate Market
According to the US Department of Housing and Urban Development there was good news for the real estate market in November 2012 as they are still seeing the housing market in an optimistic light despite these seemingly small setbacks. This is due partly because they anticipate home prices and property appraisal prices to continue to rise. Even in the latest housing crunch, they never dipped as low as they did in 2009. Instead, for the last three years prices have continued in an upward trend although they rose and fell all along the way. It seems that now they have created a bottom and housing experts expect them to continue on the upward trend of price appreciation.
Even though the prices for single family homes have continued to rise the growth has slowed considerably since the summer months. Here are four main housing trends:
· Building permits for multifamily dwellings rose nearly 10 percent. And multifamily housing starts rose 7 percent in September. These are presently at a level that has not been seen since November 2008.
· There is still a positive streak for developers of single family dwellings and the number of permits has continued to increase for 17 consecutive months. In September they were up 3.6 percent. This is the highest level that we have seen in four years. However, even with the positive gains, single family dwelling starts are still 69 percent beneath the pre-recession numbers in November 2005.
· For 6 consecutive months existing single family dwelling prices have increased a small bit. In August they were up just .88 percent. Even though the price of new construction of single family dwellings dipped by 3.2 percent in September, it is still 1 percent above where it was in September 2011.
· New single family dwellings sales increased in September by about 5.7 percent. Although the volume in September was up 27 percent from the same time last year, it is still sitting at 72 percent below the highs in the pre-recession market of July 2005.
The bottom line is good news and bad news. On one hand, the housing market just keeps showing signs of growth. But on the other hand, we are nowhere close to where we were pre-recession. However, the housing market in the US is steadily making a slow recovery.
Job Reports and the November Housing Market
Job reports had some good news as well as some bad news for the real estate market. The bad news is that job growth was below the average in some of the toughest metro areas. These are the areas that had the largest decreases in housing prices during the bust and more recently have the highest vacancy rates as well. The good news is that in October, 2012, 75% of all 25 to 34 year olds were employed. This has risen slightly from 74.9 in September. The unemployment for this very important group to the housing market fell to 8.3% in October. This is down from 9.7% from this time last year. With this groups’ greater participation in the labor force, the housing industry grows.