Wednesday, December 17 2014
Market Watch December 2014
I realize that Thanksgiving has passed us this year but I wanted to mention several real estate specific results and other factors for which we should all be thankful.
Although 2014 is not yet finished, our local market is certain to close more real estate volume than we did in 2013 and that is on top of the huge recovery we made in 2012. In fact, our multiple listing service will close more dollar volume in sales than the previous year for the 4th consecutive year and sales volume will be 36% higher than it was in 2010. In addition, our average sales price has increased 6.2% this year and will be a whopping 15% higher than it was in 2010.
I believe that this slow, but steady, recovery is a result of both increased consumer confidence and a similar slow, but gradually improving job environment. The housing market is tied directly to qualified homeowners. A job is the first step in qualification and with over 300,000 net new jobs created last month, I’m confident that some will soon be first time buyers.
Another positive development is that the Federal Housing Finance Authority recently issued new more clear rules which will allow lenders to be more confident about the types of residential mortgage loans they make. I expect more buyers will qualify for loans in the future than the recent past. Clearly this helps the housing market.
From a strictly local perspective, I’m very excited about the new convention hotel and the Medical Center coming to Southwest Indiana. Both of these projects will provide a significant economic boost to our area for years to come. All of these give me plenty of reasons to be thankful and optimistic about real estate.
Finally, I can’t wait to give you a taste of what’s coming in January! Although FCTuckerEmge.com is already the area’s dominant real estate website we are launching a newer upgraded FCTuckerEmge.com next month. The enhanced site will have bigger, brighter pictures, a really cool mapping function and lots of other features I’m sure you will like.
Kathy and I extend our best wishes for a joyous holiday season.