All signs are pointing to a real estate housing market recovery in 2012 according to recent reports. Rising rent rates, decreasing inventory, low mortgage rates, and an increase in jobs offer a glimpse of hope that both the housing market and economy as a whole are heading in the right direction. Existing and pending home sales reports for October and November 2011 indicate good signs for the new year and a positive U.S. Economic Outlook for 2012. According to NAR, pending homes sales rose again in November 2011 7.3% over October and 5.9% over November 2010. The November pending home sales increase reached the highest level in 19 months, due in part to affordability conditions including low interest rates. Pending homes sales are expected to continue in 2012. Pending Home Sales Rise in November
According to NAR, the possibility of an economic recession is looking less likely and a housing recovery is on the way. Despite external market variables, including the Eurozone, the U.S. housing market is showing strong signs of recovery. The latest pending homes sales index which reflects contract signings to purchase a home, rose more than 10% in October 2011 from the previous month and more than 9% from one year ago. There are still housing obstacles to overcome such as tight lending and high inventory issues, but banks are starting to loan and inventory is showing a consistent downward trend. The total number of homes listed for sale at the end of October was 3.3 million, down from 4.5 million in the middle of 2008. The month of October registered the lowest housing inventory since 2005. Good Signs for the 2012 Housing Market
Existing Home Sales increased in November 2011 and are expected to climb throughout 2012 according to NAR. Recent home sales data reports completed transactions, including single family, condominiums, and townhomes increased 4% to a seasonally annually adjusted rate of 4.42 milliion n November 2011 from 4.25 million in October, which is 12.2 percent above the 3.94 million pace in November 2010. Lawerence Yun, NAR chief economist, attributes the recent gain to people taking advantage of the buyer’s market and record low interest rates. Sales reached the highest mark in 10 months close to 34% above the cyclical low point in mid 2010. Lawrence Yun summarized current market conditions by saying, “A genuine sustained sales recovery appears to be developing”. Existing Home Sales Conintue to Climb in November
Another positive indicator of the increase in real estate market activity is online home searches. Realtor.com recently published results on the 10 most searched real estate markets online. The Dallas real estate market ranked #9 with a median home price of $194,900.
10 top-searched metro areas from November 2011 by Realtor.com:
1. Chicago – Median list price: $192,900
2. Detroit, Mich. – Median list price: $84,900
3. Los Angeles-Long Beach, Calif. – Median list price: $329,000
4. Phoenix-Mesa, Ariz. – Median list price: $164,700
5. Atlanta – Median list price: $156,900
6. Philadelphia, Pa.-N.J. – Median list price: $229,900
7. Tampa-St. Petersburg-Clearwater, Fla. – Median list price: $144,200
8. Las Vegas – Median list price: $122,000
9. Dallas – Median list price: $194,900
10. Riverside-San Bernardino, Calif. – Median list price: $199,000
Avg. Sales Price: 379,000
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