submitted by Lynne Kelleher, Prudential Fox & Roach, Realtors – Newtown Office

SHHH….Can you hear it? For the first time since the real estate market hit the skids, 2012 brought the first signs of a long awaited recovery.

Conversations have slowly but surely changed from the gloom and doom we heard on a daily basis, to a sense of hope and concrete signs of stability. The worst is behind us and we’ve turned the corner for sure.

Bucks County reported an increase in Pending Sales in every month of 2012, with a resounding 27% increase in December.

Settled properties followed suit, ending December with a 3% increase.  Inventory levels were down 8% at year end, both median and average sale prices are up and the months supply of inventory – the time it would take to sell current inventory levels at the current rate of sale – is down 20%.

Hallelujah Chicken Little – the sky is no longer falling! 

Another record that was set in 2012 was the Affordability Index. According to the National Association of Realtors, a score of 100 means a median-income household has exactly enough income to qualify for a median-priced single family home. In November 2012, the number clocked in at an incredible 198 – which busted the 2011 record of 186. 

The bottom line is this – the worst is over and we’re on our way back.  Not a reversion to the days of old – we’re talking slow and steady here, not off to the races. The bulk of the activity is in the lower end of the market – most indications are that this will be a bottom up recovery, with high end properties taking longer than average to sell.

Home prices have stabilized and appreciation is expected to continue into 2013.

It truly IS an ideal time to buy or sell a home!

submitted by Lynne Kelleher, Prudential Fox & Roach, Realtors – Newtown Office

How many times have you looked back and said “Dagnabbit, I should have…” or “Jeez-o-man, why didn’t I….” or “If only…” when thinking about a missed opportunity?

Well, if you’ve been thinking about buying, selling or investing in real estate, you’ll be kicking yourself once again if you don’t get off the fence and take some action, as the current environment of low prices, low interest rates and large selection is slowly but surely starting to change.

As we all know, hindsight is 20-20 and the only way to know when the market has hit bottom is when it starts going back up. Once that happens, the advantage slowly starts to shift from buyers to sellers and the opportunity is lost.

We’re currently in that first phase, where excess inventory levels are starting to tighten and the number of pending sales are on the rise. Depending on where you live, prices are starting to rise ever so slightly and will continue to do so, although very, very slowly.

So, if you’re a buyer – even if you have a house to sell first – do so before the end of the best era to buy a home in a generation is over.

If you’re an investor, or considering becoming one – you should be jumping up and down! Money is cheap, prices are low and the rental market is HOT – it’s a landlords market for sure.

What else are you going to invest in – Facebook?

Even if you’re a seller – if life dictates a move is in order, don’t hold out another year or two because you think you’ll get more money.

The anticipated 1%-3% appreciation most experts are predicting may not be worth it when you factor in continued living expenses, repairs and the impact the delay may have on your life.

Don’t be the one saying, “Gosh darn, why didn’t we do this sooner,” whether it’s about being close to your grandkids, moving to that vacation or retirement home or buying the house of your dreams.

submitted by Lynne Kelleher, Prudential Fox & Roach, Realtors – Newtown Office

“The housing market has turned – at last. The U.S. finally has moved beyond attention-grabbing predictions from housing “experts” that housing is bottoming. The numbers are now convincing.”

This from the July 11th Wall Street Journal article by David Wessel.

“The housing market is starting to recover. Prices are rising. Sales are increasing. Home builders are clearing lots and raising frames.” So says Binyamin Applebaum in the June 29th issue of the New York Times.

That certainly seems to be the case here in Bucks County, where inventory levels in June were down 11.7% and sales were up 11%.  Year-to-date sales are up 15%, while the average sale price is down 2.5% to $317,000.

It would seem that at least for now, the housing market is slowly gaining a bit of momentum, despite the recent slow down in the already sluggish economy. According to the WSJ article, their survey of forecasters found 44 of 47 believe the housing market has finally reached the bottom.

Several key factors will determine whether housing continues its fragile recovery.

The pace of the overall economic recovery, the unemployment rate, consumer confidence and the size of the so-called “shadow inventory” of unsold homes – those not yet on the market because they are worth less than what’s owed on them, those to be foreclosed upon, and those already owned by lenders.

Uncle Sam has taken steps to delay foreclosures and assist in re-financing, but if that changes, this inventory could flood the market and stall any recent growth.

Is the housing market still walking on eggshells? Heck yes! But at least it’s back on it’s feet and moving forward…for now.