This Month in Real Estate

April 2012 Market Update

Now four months into 2012, both the housing market and the overall economy are improving at modest rates.  These improvements have inspired confidence in consumers, demonstrated by a 9.2% increase in pending homes sales in February from the year prior.

Both home prices and sales are expected to increase in 2012.  Lawrence Yun, chief economist for NAR, stated, "Falling visible and shadow inventory <Bank held properties>, combined with a dearth of new-home and apartment construction during the past three years, assure that rents will continue to rise, with likely home price increase in 2012.

As rents continue to rise, buying becomes a more and more attractive option as home affordability, or the percent of income it takes to pay the mortgage, continues to be among the most favorable in history.  Trulia's Winter 2012 Buy vs. Rent Index, which measures the relative cost of renting compared to asking prices of homes found that in 98% major metropolitan areas sampled, it was more affordable to buy than to rent.

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Home sales dipped 0.9% in February to 4.59 million units, yet are 8.8% higher from a year ago.  A strengthening confidence with an increasing amount of people in the market.  Additionally, as the market shows signs of improvement, more people are feeling the urgency to buy while prices and interest rates are still at some of the most affordable levels in history.

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Housing inventory rose 4.3% in February to 2.43 million homes, representing a 6.4 month supply, up from 6 in January.  There are several factors driving this increase in the inventory of homes.  First, banks have settled major lawsuits regarding fraudulent foreclosure practices with state governments, which has enabled them to start moving many foreclosures off their balance sheets and into the market.  Pending sales are up, and home building is starting to show signs of life again after three years of low new-housing construction.

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Don't miss the boat!  If you've been waiting to see values keep dropping you've missed that window.  Now is the time to jump on board and purchase your home before the prices increase more....

visit www.homesintulsa.org to start your home search today or call G. Streeter (918) 809-0713

I look forward to helping you find your NEW home!