The End of 2012 – The Story of a Seller’s Market

The real story of The Woodlands real estate market in 2012 has a great deal to do with lack of inventory and extremely high buyer demand.  Throughout the year, active buyers saw fewer and fewer choices available to them as they looked diligently for their next home.  If you were one of those buyers, you likely experienced being in a multiple offer situation, competing with sometimes more than one other buyer for the same home.  Of course, this also meant that you probably paid list price, or maybe even more!

The following graphs illustrate the trends in inventory (“Homes on the Market”) and sales (“Homes Sold”) over the past 6 years in The Woodlands real estate market.

 

Highlights to note for this past year –  at the end of 2012, closed sales in The Woodlands market were up 13.5%, while year-end inventory was down 43% compared to the prior year.  Average days on the market for sold homes reached a low of 47 days in the Fall of 2012, down from a high of 102 days in February of 2011.

It’s nice to be a seller in this environment!  That’s why experts call it a seller’s market.  Scarce inventory and high buyer demand, obviously lead to fewer days on the market and eventually an up-tick in closed sales prices.

So then, what is the take-away for buyers?  Don’t forget that interest rates are still very low.  The average 30-year fixed rate quoted by Freddie Mac today is still at 3.38%.  Be prepared to react quickly in this fast-paced market.  Meet with your lender and obtain a pre-approval or pre-qualification letter that can be presented with your purchase offer.  Buyers in today’s market must be assertive when making an offer.  Reacting quickly and assertively may be the difference in being able to purchase a home you truly love!

 

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