The year ends with low inventory. For December 2012, contract activity for every price bracket over $300,000 was higher compared to the same period in 2011. The full year activity for 2012 was up 6.4% over 2011.Of the properties going under contract in December 2012, roughly 51% were on the market for 30 days or less. The Interest rates on a 30 year fixed mortgage at the end of December was 3.35%, which is .6% lower than the end of 2011 at 3.95%. There has been a slight increase in rates since then and the story is the same; buyers who don’t take advantage of the low rates may regret it. With low interest rates, homes are quite affordable. As prices go up, that affordability factor goes down.
The real story of the market continues to be the incredibly low inventory. Low inventory and high demand will make home prices increase. We have been experiencing increases in home values in many market segments year over year. So much so that some communities are seeing properties for sale that have multiple offers, competing contracts, escalation clauses, reminding us of the fast paced selling market of the last decade. This is good for buyers and sellers who could take advantage of great market opportunities to meet their real estate needs. Owners who are thinking of selling in the next couple of years should really consider selling now; there’s little competition and plenty of demand.
We are here to help. If you are interested in buying or selling a home in any of the lovely Alexandria communities, get started by calling us, Alexandria Realtors. You may also search for all homes for sale in Alexandria directly from our website!