February 13th, 2013 11:23 AM by Rob Robbins
We are 44 days into 2013 and sales are up about 10% for housing over 2012 during the same time period. Pretty good for this time of year. We got through the fiscal cliff and people are feeling better about 2013. Housing will drive our market to recovery over time.
We are seeing a few builders willing to take the risk and start building a few new homes. They will be cautious over the next few months but this is a good sign. Most of the new spec homes are under contract by the time they are finished. The builders do not have the same profit margin they had 4 years ago but the lot prices are much cheaper making room for profit while reducing cost per square foot. There are also some custom homes being built which is putting construction workers back to work. This labor force was the hardest hit in our market over the last 4 years.
Days on market is still a guessing game but a home priced right for the current market conditions is selling in less than 90 days with many on the market less than 2 months. That is a good sign. We still have those that have been on the market 6-24 months and it tells you one thing. They are over priced.
Inventory is still the lowest it has been since 2006 which is great news for sellers. This is also helping the new construction homes and they look pretty good after looking at several older homes needing updates.
The next 90 days will tell us a lot about the rest of the year. I am optimist.
If you are planning on selling your home this year it is time to prepare it for the market. All those updates, repairs and touch ups need to be done before it goes on the market.
Have a great year!