Was 2012 the Year the Housing Market Recovered?

Hey all you Homeowners out there, we know it's very important to have a solid grasp on where the Housing Market is and what that means for you as a Owner. This morning we came across this great article, definitely a must read. The article discusses what happened to the Housing Market in 2012 and the state of the Housing Market as we move into 2013. Click here to read the entire article.

Was 2012 the Year the Housing Market Recovered?

By: Daniel Carroll and Samuel Chapman

On many occasions during the past few years, housing market conditions have been cited as a key factor contributing to the slow recovery. For a typical household, the largest component of wealth is house value. As house prices fell and sales were depressed, household wealth shrank. The decline in house values has been indicted as leading cause of restrained consumption, as households saved from current income to recoup the loss in housing wealth. The decline in house values has also been suggested as partly responsible for stubbornly high unemployment due to “lock-in,” where a household that is underwater on its mortgage limits its job search because it cannot afford to move.

Fortunately, over this past year there have been signs of modest, yet sustained, improvement in the housing market. According to the latest report, sales of single-family units, both of new and existing, have been up year-over-year from January to November. The latest month shows new and existing sales up by 15.3 and 12.4 percent, respectively, compared to their values in November 2011. Since April 2012, monthly sales of existing multifamily units have also been positive relative to the previous year, with the November data turning in a whopping 33 percent increase.


After several years of weakness in the home construction sector, 2012 has also been marked by large increases in home starts. For single-family units, the change each month from its counterpart in 2011 has averaged 23.6 percent; for multifamily units the average is 38.0 percent.


The descent of home prices has leveled off, and prices have begun to move upward again.


During 2011, home price indexes reported negative year-over-year changes each month; however in 2012, these changes have been increasing each month. As of October, house prices were roughly 5 percent greater than the previous year. Price increases are a welcome sign as they point to a steady return of demand and suggest household conditions are improving both in terms of income and credit. The recovery also has a positive implication for general aggregate activity as it increases household net worth, thereby stimulating consumption.


Finally, while the good news discussed above is certainly encouraging, it should be noted that it is unclear at what point we should declare the housing market “fully recovered.” The data on sales, starts, and prices were all well above trend before they began to plummet in 2005. Therefore, the previous peak level is not likely the correct baseline by which to judge recovery. Nevertheless, any recovery must begin with a sustained increase in housing activity, and 2012 has, so far, appeared to deliver just that.

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Keep your home at tip top value

As a homeowner you are constantly looking at ways to make sure your home maintains the highest value possible. There are many things you can look out for to try and achieve this goal that you just might not know about, and who better to ask about this than real estate professionals. We came across this article by freshome.com that discusses 10 things real estate professionals say to keep in mind when considering the value of your home. Definitely a must read for homeowners. Click here to read the entire article.

10 Easily Avoidable Factors Real Estate Professionals Say Devalue A Home

Buyers have an upper hand when purchasing a home in a down market with limited inventory. As they survey the market, it’s important, as sellers to have the best possible product available. In order do to that, you need to avoid factors that will devalue your home. Many times, it is the buyer’s perception that influences whether they walk away or offer a seller less than an asking price. Before you decide to list your home for sale note these ten factors that will devalue your house and make changes as you can.


1. Lack of Curb Appeal

The first thing any prospective buyer will see as they approach your home is the front of the home. Everyone wants to live in a home that is beautiful on the outside as well as the inside. A poorly kept landscape, whether overgrown, or non-existent will turn a buyer off. They may fear the cost of redoing landscaping, or be overwhelmed at the thought of it. This undoubtedly will affect the perceived value of your home. By planting a few annuals, keeping the grass cut and weeding the flowerbeds regularly you will improve your curb appeal. Front landscaping that is welcoming and has good visual appeal will keep a buyer interested in your home.

2. Exterior of the House

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