Archive for February, 2012

Home Prices Poised to Rise

Friday, February 24th, 2012

The price of anything is based on the scales of “supply and demand”.  That said, January’s U.S. Housing Reports by the National Association of Realtors indicates supply  at a 7 year low while demand at the highest level since May 2010.  The end result is the long awaited increase in home prices. 

While winter (January in particular)) is a slow season in a normal year (whatever that is) – the Report shows several indicators of a healthy housing market. 

Sales are up approximately 13% over the past 6 months.  Real estate sales increased 4.3% in January to a seasonally adjusted annual rate of 4.57 million.  Important to the recovery first time home buyers made for 1/3 of all sales.  All this increased activity on the “demand” side coupled with the lowest level of “supply” since March 2005 at 2.3 million is what positions the housing market for prices increases.