With 2011 Real Estate Market unknown, we have to look at the results of 2010 to get a sense of our direction and in the current conditions to know where we are headed.
In a great Rose & Womble meeting today, we learned that the New Homes division was up over 4% in units last year and there is only 3.5 months inventory at present. In addition, the New Homes division saw:
11% Increase in sales of home in $350,000-$400,000 range
31% Increase in sales of homes in $400,000-$450,000 range
As Van Rose, President New Homes, these results are a great indication that the market is turning a corner as buyers are feeling the improvements in the market and are confident about moving forward to purchase that new home they have wanted.
With the pent up demand for home purchases caused by the uncertainty and anxiety of the past three years, there are people the need and will buy homes in 2011. Buyers have begun to peak their heads out with the growing confidence and the new homes data shows it.
Both New Homes and Resale will benefit in 2011 from:
- Low New Home Inventory
- Good Inventory of Homes Priced to Sell(Values are at 2004/2005 levels)
- Low, low interest rates
- Improved Buyer Confidence
A recent survey cited by Van, noted 90% of people said it was a great time to buy real estate. In addition, Van showed a chart noting that a home purchased in 2001 was still valued higher in 2011($50,000 on average) than it would have been if growth rate was 4% over the 10 year period. Thus, numerous home owners have amply equity in his/her home to act on his/her interest to buy a new home.
In addition, this home owner and renters looking to buy their 1st home can realize that though home values have softened in the past three years, real estate remains an excellent long term investment.
So if you are one of the millions that have wanted to know the right time to buy...YOU FOUND IT!
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