During the past year we have frequently commented that it is a good time to shop for, if not buy a new home. Interested shoppers are increasingly becoming buyers after seeing the great affordable homes on the market. Undoubtedly, there are still plenty of overpriced properties to avoid, but more and more homes are finding buyers.
Over the past couple of months local home sales have increased 19% over last year’s figures. What makes these numbers so encouraging is that the increase in activity has happened without artificial stimulus in the form of the home buyer tax credits offered over the last few years. The tax credits expired April 30, 2010.
Other encouraging news is that the pace of foreclosure filings has slowed over the past six months. In 2010, our market averaged more than 30 foreclosure filings per week. This year there have been fewer than 23 filings per week.
We are watching this trend carefully as these properties add significantly to the supply of homes on the market, and that oversupply slows the recovery. The trends, however, are good. Given the volume of foreclosure and short sales that have occurred over the past four years, it is safe to say the worst is well behind us.
In fact, a look at sales over the past year shows that some people who purchased over the last year are actually experiencing price appreciation. While quite modest, these gains are a welcome sign that our market is slowly returning to more sustainable times.
Today’s buyers are certainly feeling great about purchasing; and that confidence has a positive impact on everyone, whether they are currently buying or not.
