May 2012 notes.
The spring 2012 real estate market has been very healthy! Prices bounced up again in April. According to the St. Paul Pioneer Press, it’s the largets jump since before the housing market meltdown. Prices were up 12.4% from April 2011, which is the largest increase since January 2004.
Fewer foreclosures help boost the market as traditional sales accounted for a higher share of the market. The number of closed sales also increased 7.1% and pending sales climbed 26.4% from April 2011 levels. “If supply goes down and demand at a minimum stays steady, we’ll see prices come up and that’s what we are starting to see” said St. Paul Asoociation of Realtors President Richard Tucker. A sense of urgency is starting to creep into the market as some Realtors reported multiple offers on their listings in April. Tucker continued “You can’t wait around. Someon else will buy that home if you don’t.”
Interest rates remain at historic lows and affordability is also very high. These are all inidicators of an active market for both sellers and buyers. A few more months of firmer prices and a strengthening economy are needed before more sellers feel confident to list, but that time seems to be approaching.