2012 Could Be The Year You Buy or Sell a Home!

Will 2012 be the year we climb out of the real estate market ditch? Could this finally be the time to sell your home or buy a new one? Members of The Holmquist Team are hearing a lot of optimism out there.

Several economists and observers of homes for sale are sounding some cautiously optimistic notes. Even the jaded news media is beginning to sound optimistic. Amanda Gengler of CNN Money, even said, “If you’re gearing up to buy a home, 2012 will be a great year.”

Experts say home values are great

Experts are saying:

  • Housing prices, which are still falling, could stabilize by mid-2012.
  • The annual pace of home sales has already been heading up, and experts expect that trend to continue.
  • Home value, expressed as affordability, has reached record levels. Mortgage payments are now only 13 percent of family median income.

There is sound reasoning behind this. Jeff Otteau, aNew Jerseyappraiser who has earned a sterling reputation as an accurate observer and predictor ofNew Jersey’s housing markets, is among those dipping his toes in optimism. He points out:

  • Pending contract sales inNew Jerseyhave risen for six of the last seven months.
  • Consumer sentiment has been improving since summer.
  • Unsold inventory is down, especially in certain segments of the market.
  • Job creation is up, even inNew Jersey, although our state lags behind the rest of the nation.
  • There is a shortage of rental housing. That has two implications for home sales. First, it’s driving up the price of rentals, making buying a home more attractive. Second, expect new construction on multifamily homes, generating jobs and more money being spent with those supplying builders and renters.

Yes, this recovery, if it is one, is fragile. Yes, we still have a lot of foreclosures and short sales in the pipeline that have to work their way through the market. Yes, there are a lot of people in trouble with their homes.

Good time to list your home

Nevertheless, this information means that if you’ve been thinking about listing your home or looking for a new home, it could be a good time to do so. Demand has been building up, so these optimistic reports are liable to bring people and homes to the market.

Is the time right for you? That’s something you should discuss with your financial counselor and a Realtor. If you’re buying, you need to feel secure and somewhat stable with your financial situation, have the income to make a purchase and be realistic about what you want. If you’re selling, your home needs to be ready and, again, you need to be realistic about what you can get for your home.

The bottom line is that current tone of the experts – cautiously optimistic – means that if you’ve been waiting for the right time to sell or buy a home, that time is likely here. If members of the Holmquist Team can help you with your decision, please don’t hesitate to call us.

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