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2013 numbers – a year in review

2013 numbers – a year in review

It’s that time of year again! The time where I take a look at the numbers and see if we can make any predictions as to where things are going for 2014.

One question that I get quite frequently is whether you should wait until spring to sell or not. Let’s look at the numbers and get a feel for that. This will help me answer the question as to if you get more money by waiting until spring.

In 2013 the month that the most homes went under contract was May with 1,494 homes selling. Contrast this with the month that the least contracts were written, the month of December with 681. This makes it seem like a no brainer, right? Well, what about your competition? In May there were 4,331 residential homes for sale and in December only 3,693. When you calculate this into months of inventory the number for May is 2.9 months and December is 5.4. So, if you have needs for your family where you need to sell in the winter I wouldn’t shy away from that, but the market is more favorable in the spring.

As far as market trends, 2013 seemed slightly more volatile than other years from the standpoint that the market is getting better and so as it emerges it goes up and down a bit. For the majority of the year 2013 was an improved market over 2012. January through September were all higher than 2012, which made for annual number that were much higher. An additional 882 units were sold, a 7% increase. What I’ll be interested to see the impact of is that the last quarter the numbers were all down. Now, this is the time of year that is typically down and 2013 was unusually busy. Was that just the beginning of the market correction and now it’s settling back down but still increasing? That’s what I am hoping. I have a feeling that 2014 will be very similar to 2013.

This is considered a balanced market, just on the verge of being a seller’s market. There are definitely market conditions that make it a good time to buy: prices haven’t come up considerably because appraisals have limited appreciation (to understand this, read this blog post) and rates are still low. As a seller the time is right because inventory is lower and the market is hotter than it’s been in the last few years. Many people have a desire to move but haven’t wanted to compete against foreclosures and short sales. While this issue is not gone, it is decreased.

Of course, all real estate is local. Your school district, community, neighborhood, and street has it’s own fluctuations within this greater context. I would be happy to let you know how this affects your situation. Give us a call!