The Jackson County real estate market is strong right now. Sales have increased in December, January and February when compared to the same period a year ago. Our John L Scott agenda yesterday listed more closed transactions than new listings.
“Prices are bottoming now,” according to a Bank of America Merrill Lynch forecast, released this week. In the long-term, analysts see a big rise in housing prices. From 2012 through 2020, they forecast a cumulative growth of 42 percent in home prices.”
While prices aren’t likely to rise for a while, this might not necessarily mean the housing market isn’t on the mend. “Perhaps we’re looking at the recovery all wrong, says Paul Dales … Higher prices won’t be the sign that tells us there’s areal recovery under way. Rather, the recent pick-up in sales is what we should pay attention to.”
“Capital Economics expects the housing crisis to end this year, according to a report released Tuesday. One of the reasons: loosening credit. … Other market indicators point not just to a stabilization of mortgage lending standards, but also a loosening of credit availability.” I jumped out of my chair when I read this article. Small, steady steps win the race every time.
While we have good news to celebrate, some more sobering sides of the housing recovery remain. With the $25B settlement that federal and state officials recently reached with five banks to end investigations into abusive foreclosures practices, we will be seeing more foreclosure properties coming on the market. Problem is, no one knows how many such properties remain or how long it will take for our market to reabsorb them. And interest rates won’t remain this low forever.
In the meantime, my phone is ringing and buyers are looking. I need more listings. If you’re waiting for the bottom, don’t wait much longer or you may miss it. I would love to help you, your friends, family and colleagues. Now is the time to move forward. Call me.
