Earlier this week, the National Association of Realtors reported that in December, existing home sales rose unexpectedly while inventory declined. Over the past few months we have started to see a gradual turnaround in home sales in Northern Colorado.
So why the sudden, surge in sales? Here are a few reasons:
- A lot of people who were previously priced out of the housing market can finally buy.
- With interest rates under 5%, a buyer's purchasing power is at its best in more than three decades.
- After months of increasing or stable inventory, we are finally starting to see the numbers fall.
- Increased consumer confidence (as of late).
- We're seeing a lot more investors coming into the market in addition to first time home buyers.
So is it too early to call it a trend? Probably; we still have a lot of distressed properties to move through before we can begin to see prices stabilize. At least for the foreseeable future, buyers will probably have the edge, but with an 84.9 percent increase in sales year after year and inventories on the decline, we're finally moving in the right direction. The key to all of this: buyers are ready to buy when they perceive a good value. Until then, they wait. The bottom line is that while sales are on the rise, we still have many distressed sales that must work their way through the system.
Scott J. Lee, Realtor