Home Prices Up!
I’ve been saying it for a while, but it is official when ASU says it. Check out this article about how home prices have gone up 5.5% since January of this year.
It reminds me of when I sold my home in Woodlea/Melrose in 2006. I just waited until I heard the news report that “we might be reaching the top of the market”, then I jumped on it and sold. I sold the house for 2.5 times what I bought it for.
So much is dependent on public opinion. A lot goes in to the data in this article, but it tells me that we are at a crucial point. Shrinking inventory is starting to spur prices upward and people are starting to feel comfortable getting back in to the market. This is as cheap as it is going to be again for years to come.
Things to note:
1) The article says that more expensive foreclosures are on the market and that helps drive prices up. This is true for two reasons. First, some higher priced homes have been lost to the bank. Second, most of the really cheap foreclosures have been snapped up, leaving the others.
2) Condos are really very cheap right now because of the changes in the FHA rules. If you can come in with 15% down, you can pick up an incredible property for under $100,000! See my article from yesterday here.
3) Have a look at the charts. The trend is clear. The number of months that a home sits on the market came down and is stabilizing at (can we say it?) equilibrium! In the market 5 months of supply is usually considered healthy. Also the average monthly prices have gone up over the past months, now comfortably over $130,000. Much better than 2008 and 2009!
If you have been holding off, don’t do it any more! Now is the time. Give me a call at 602-456-9388.
