If you have been watching the news or hearing anything at all about home sales lately, you will have heard that 2013 is supposed to be a better year for sales in the Lake Granbury area, and across the entire US. The forecast nationwide, is for improved sales this year, after four down years, albeit from previous record high years. You may remember that in 2008, we first saw the gas prices balloon over $4 per gallon, the stock market took a huge nose dive, and it was an election year which typically causes a pause in any financial market including housing.
I attended a real estate conference in February of this year in which the presenter said that sales across the nation have been looking up. There seems to be an attitude of hope, but we have also seen that before. So just what are the facts for the Granbury real estate market? They say the “proof is in the pudding,” whatever that means, so let’s have a look at the “pudding.”
The following numbers represent the number of homes (with a list price of over $100,000 in Hood County) that sold and closed during the first quarter of the represented years:
2008 – 162 Homes
2009 – 111 Homes
2010 – 87 Homes
2011 – 121 Homes
2012 – 105 Homes
2013 – 140 Homes
(*From the NTREIS MLS)
The jump of 35 homes that sold during this quarter as opposed to the same time last year represents a 33% increase! Indeed, it looks like we may have turned a corner. I will continue to monitor this and keep you posted.
So what are some possible implications if this trend continues?
1. Interest rates will go up. They may not go up fast, but as the market improves, the fed will raise the rates to help monitor inflation. Rates are 3.5% for a fixed 30 year loan right now, but they won’t stay there if home sales continue to improve.
2. Buyers will face more competition in their search for homes. More home sales in Granbury mean more competition in the local housing market among those searching for their dream home. Already, I am seeing more and more homes under contract that my buyers are wanting to see. The lesson: Buyers will need to move more quickly! Buyers who wait will face a likelihood of missing out on the home they wanted.
3. Home prices may move upward. In the local market, homes prices have been fairly stagnant over the past few years. But real estate, like everything else, is driven by supply and demand. The more demand, the higher the price. Don’t expect to see a big difference, but we could start to see prices turning a bit more upward.
4. We will probably start seeing more new homes being built. As the market improves, the builders will get their hammers out once again, and we will see more “spec” homes going up. Some builders are hesitant to build during tough markets, but good times will bring them out of the woods once again.
All in all, it’s good news for the Granbury real estate market!
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