The housing recovery that began in 2012 accelerated in 2013- and, we all breathed a sigh of relief! 2012 felt good, but shaky. The beginning of 2013 held promise, but uncertainty. In end (because, heck, we are almost there!) 2013 proved to be a solid performer that seems to be creating more momentum for 2014. Thank you, 2013.
Here are a few of the signs that pointed to recovery:
- Housing prices rose faster than anticipated. The national median home price went from $180,000 in Dec 2012 to $199,500 by Sept 2013. The Hanover/Lebanon results were not as dramatic primarily due to the lack of Hanover inventory.
- Mortgage rates remained low. Sure, mortgage rate rose in 2013, but they still remain close to historical lows, keeping housing affordable to buyers.
- Bidding wars became part of the buying process again. We certainly saw this in the Hanover market in particular. Inventory was low, demand was increasing so quality homes on the market received multiple offers, often for more than the asking price.
- Cash was king. Nationally, approximately one third of the home purchases were completed with cash. That’s a healthy percentage of sales that were finalized without the use of a mortgage or mortgage lender. That doesn’t happen frequently in “bad times”.
- Going mobile. Buyers are relying more on their smartphones and tablets to search for homes, making it faster than ever to connect with realtors, buyers and sellers. Time is money and faster is always better when you are searching for something!
- Rents soared. As I mentioned in my last post, about half the renters in the US spend more than 30 % of their income on rent. When that happens, home purchase is much more attractive allowing the buyer the opportunity to build equity. (Not all home purchases result in equity gain, but the possibility is there.)
We are anticipating a strong 2014!
If you would like to search for housing in the Upper Valley, be sure to visit our website and take a look around. If you would like to schedule a showing, or simply have a question about a property, please contact Matt or Carol at 603.643.4800.