Existing Homes Sales Predicted to Increase in 2012

Based on somewhat uneven, but consistently increasing sales so far this year, the National Association of Realtors is forecasting 2012 sales of existing homes will increase by 7 to 10 percent over last year.  Both pending and completed sales were down slightly in February compared to January, but they were significantly higher than the year before.  One factor contributing to the uneven rise is the high number of contracts (31%) that were reported to have been canceled because either the Buyer's loan application was rejected or the property did not appraise for the contract amount.

Increasing Demand for Upscale Homes

Some prospective homebuyers have been sitting on the fence waiting to see if prices have truly hit bottom.  And, while it's true that economists are still predicting that nationally prices will continue to fall through 2012, those statistics are heavily weighted by distressed properties at the lower end of the market (73% of the homes sold in January were under $250,000 and of those, 43% were considered "distressed").  Nationwide, sales of homes priced between $250,000-$500,000 actually rose in January.

Investors, inluding the famous Warren Buffett, were quoted in a recent CNBC article as saying that now is the time to buy.

Looking at our local market, we're actually seeing an increase in demand for homes in good condition in the $200,000+ price range, even with multiple offers in some cases!  There is a shortage of inventory as the number of properties on the market are at a seven-year low across the country.

If you've been holding off selling your home, now may be the time to start getting your property in tip-top condition to attract buyers who are looking for a home that's move-in ready.

Those of you who've been considering buying a home should take that first step in getting yourselves pre-approved by a mortgage lender so that you're ready to make a move when you find the property that's just right for you.