Since 2012, we’ve seen a dramatic turnaround in the housing market. With a few minor ups and downs so far this year, the market has been favorable. As of June, we see a rise in inventory across the nation for a second month in a row. This is good news, as for months, conditions were pointing towards a seller’s market. Home buyers now have more houses on the market, and less competition.
June inventory rose by 3,574 homes on the market than that of May 2013. Inventory isn’t the only thing up, price per square foot also is. This is more good news as it means that the rise in inventory hasn’t stopped home values from rising. In May, the price per square foot was $179, and in June the figure rose to $181.
Interest rates have risen but are still low at 4.38 percent for a 30 year fixed rate mortgage. While for buyers things are good, let’s take a look at the conditions for sellers.
It looked as though 2013 would be a low inventory year- putting sellers in a great advantage. Home values rose in many areas, and conditions were primed for sellers. While housing inventory is up for the second month in June, the market is still primed for sellers in many areas. Sacramento, California remains a particularly hot market, as well as Boston, Massachusetts and Detroit, Michigan.
More home buyers are coming in from around the nation, heating things up, which is another great sign. The US real estate spirit is being felt around the world, and it is long overdue. Many experts say there is not risk of a housing bubble burst and if that is the case (which we can safely assume) housing prices will continue to rise, and we can expect to see a steady improvement over the next 10 to 15 years.
For buyers and investors, now is the time. We are approaching a time in the market that things are on the upswing, interest rates are still low, but going up, and home values are still reasonable, but going up. Equity will be built much faster, and those that don’t get involved will likely look back in 10 years from now and realize just what a great opportunity they missed.