Ever heard of the Spring Market? Well it is back in full force and looks to be stronger than ever this year when pegged against recent memory. Many reasons account for this great optimism about the Spring of 2012. For one, the mild weather has been a massive factor contributing to the heightened interest in property. In another blog post we recently discussed Cape Cod real estate, where the warm winter season has not only made houses show better but has also made people more willing and able to house hunt.
According to Forbes, warmer temperatures during the months of April, May, June and July frequently result in over 40% of all real estate transactions for a year. Contract offers this year have already skyrocketed, and even though the numbers from February were down from January, both months easily surpassed the same comparative numbers realized from the months of 2011. Moreover, this was a 9.2% increase for signed contracts that have yet to close in February of 2012 over the same month for 2011, while an 8.8% increase for existing-home sales or closed contracts in the same month in 2012 over 2011 occured.
As we recently discussed, the low inventory levels, especially in Boston, have caused properties to fly off of the market due to the pent up demand levels. Across the nation for the current day in 2012, a 19% decrease in the level of inventory is a drastic change from the availability of homes a year prior. This all results in a five-year low to when the markets were prospering before the economic downturn.
Other notable numbers were that building permits have increased already 5.1% from January to February of 2012. This past February brought forth a staggering 34.3% increase from February, 2011, which also was a 34.7% jump in housing starts. The affordability of housing is also quite attractive in todays market. Of course, this largely depends on which locale we are referring to nationwide, however at large there have been extremely low interest rates making purchasing a home now seem even more like the fantastic investment that it already is. Foreclosures are also at a high, with 2012 expected to bring roughly a million of these transactions which in turn would be a rise of 25% from 2011 with investors looking to seize as much distressed property as possible.
Boston was even mentioned as one of only three notable cities nationwide that Forbes is certain will experience growth in their home prices. The improving economy and expanding and new businesses settling in The Greater Boston Area will also have a large effect on the real estate market. People securing jobs and a future in and around our city will greatly contribute to the prices and frequency of properties being sold. GDP growth from the housing sector is something that has not come to fruition since 2005, although even this perhaps may change in the coming year. This all summates to 2012 being one where real estate markets not only in Boston but the whole nation begin to flourish once again.
More information: Forbes.com