The Real Estate Market Recovery of 2013
The empirical evidence we have seen here on ActiveRain in our respective markets indicates that sales are increasing irrespective of the lower inventory and that many listings are enjoying multiple counter offers not unlike the frenetic activity we observed a good six or seven years ago.
I think most would agree that at least these are the reports that we are getting from markets around the country. Heck, we can even read it in the local newspapers and that alone must make it true. ☺
So, if this true, why are we hearing from economists that this is most likely a temporary condition because most things in the economy have not righted themselves. Actually unemployment numbers have been badly skewed and the real truth is that unemployment has not bottomed out but is in fact actually increasing. The debt continues to climb even if the senate votes to ignore the debt ceiling. Taxes are increasing for all levels of taxable income and the amount of available income for most is decreasing. Incomes are not increasing, nor are small businesses in better positions for hiring. Health care costs are still increasing with some serious issues affecting the medical profession that supply the health care services. The tougher underwriting standards have not been loosened for home loans so that is not changing.
So what has created this " all of a sudden " the real estate market is back scenario? I noticed the more dramatic positive changes in the Fall of 2012 as inventory was dropping and Buyers were scrambling for the best on the market and buyers seemed to coming out of the walls. These weren't the investor types we had seen buying up the distressed properties. These were homeowner buyers. As far as I can tell, this is still going on at least locally. No less frenetic activity on good listings. And for sure this activity has to be helping the overall economy numbers as recently reported for the first month of the year.
So what are we to believe, our own short term evidence of our improving markets or the prognosticators that want to use fact and logic instead of our exited joy at what we have been seeing? I am using guarded optimism in discussions with clients but it is difficult not to fully acknowledge the positive change we are all seeing in our improving markets.