We hear rumors that things are getting better, but are they really? Pete Weaver thinks so. Hello, I'm Gary Edelbrock, and I am much encouraged by what Pete has to say. Let's see what you think:
Signs of an Improving Quad City Housing Market
By Pete Weaver
In October of 2011, Gary asked me for my analysis of the Quad City Housing Market. At that time, I felt that we had hit the bottom of the housing slide that began back in late 2007. 2011 was a year of stabilization in our market and the sales data backed it up. The article was titled “What’s Up with the Quad City Housing Market?” So where are we now? Let’s take a look at the trends for 2012. I believe that what the 2012 home sales data shows for the 1st half of 2012, is good news for homeowners who have been waiting for some positive signs.
My approach to analyzing the 1st half of 2012 is simple. Look at the data to determine the current market conditions and look at the trends to determine where we are heading. To do this, let’s analyze the residential sales data from the Quad Cities of Prescott, Prescott Valley, Chino Valley and Dewey / Humboldt.
The graph below contains sales data that I used for part of the analysis. In comparing the 1st half of 2011 to the 1st half of 2012, average home sales prices are up from the previous year. This trend started in April and has continued for 3 straight months. 2012 is stacking up to be the first year since the crash began to see average home prices increasing over the previous year. That’s a great trend after 5 years of decline.
- Average home sales prices are increasing.
- Inventory levels are down.
- Supply levels are down from a high in 2008 of 22 months vs 8 months in 2012.
- Distressed home sales (Bank Owned & Short Sales) are down. 51% in 2011 vs 40% in 2012.
- New home construction is back all over the Quad City area.
- Interest rates today on a 30-year fixed mortgage are the lowest in history at 3.70% (Source: Bankrate.com). Qualified buyers will have no problems getting a mortgage home loan in today’s market. Most will get processed in 30 days or less.
My Final Thoughts:
I believe our market is now in recovery. The bottom was reached in 2011 and we are now seeing a slow, but improving trend in the Quad City. If buyers are still waiting for the bottom before buying, it has already happened. It’s not too late however. Home prices are still the lowest in years.
With record low interest rates, low home prices and a decent inventory, now is the time to consider purchasing a home.
West USA Realty of Prescott
Pete Weaver, Associate Broker, Certified Commercial Sales Specialist
Cindy Weaver, Realtor, Escrow Specialist & Broker Assistant
928-710-5223 ............Pete's cell
928-710-8054 ............Cindy's cell