- Sales continue to keep rising. This means more buyers are entering the market place. Also important to note, that if buyers enter the market and buy, that means lenders and banks are actually making more loans. Which was part of the sluggish past 5 years, they were issuing more declines than before. It takes 1 year to recover from bad credit. It takes 2-3 years to recover from a short sale. It takes 4-7 years to recover from foreclosure.
Could we now be seeing buyers re-enter the home buying market that perhaps were some of the first casulties of the recession?
- Less listings again this month. As this supply and demand ratio continues it will put pressure on prices. It didn't affect prices much for 2011. Mostly because the trending didn't begin until 4th quarter. I think what we are also seeing is short sales being approved. And the short sales are being approved at lower prices, and as the bank owned enter the market they put their value based on what the short sales sell for. Short sales take 3 months to a year to approve. So many of them have had their prices set more than 3 months ago. It's hard to see movement in current prices when we have stale listings such as short sales firmly holding on to yesterday's prices
- Lastly, well, prices have decided to bump up after all the supply and demand talk. The average sales price in Feb 2012 was 4.3% higher than Feb 2011. The year to date average sales price is up 1.8% over the same time frame 2011. And, finally, a month to month increase from Jan 2012 to Feb 2012 of 2.4%
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