The end of the third quarter is coming soon and articles are being written speculating what the housing market will be in the coming months.
In Arlington MA, sales have shown steady growth in 2012 when compared to the same period in 2011. Home prices were elevated in 2011, as sellers attempted to recoup value lost during the housing recession. Home buyers, however, have been careful about spending more than they could afford, given the job market and economy, thereby reflecting in a lower number of home sales.
Pricing adjustments and low mortgage interest rates continue to bring home buyers into the market in 2012. The average and median prices of Arlington single family homes dropped in early 2012 by a modest amount. Both Median and Average Price, 2nd quarter 2012 - compared to 2011, reduced by (-5%) or year-to-date (Y.T.D.) 9/14/12 compared to 2011, adjusted by (1%) as seen on the chart below (click on chart for larger view). Even with fewer properties available from mid June through mid September, home buyers continued to take advantage of historically low mortgage rates. That said, home buyers weren't looking to overpay for homes. However, when prices on existing homes began to reflect what buyers thought were true market values, the result was an increase of "40" homes sold, from January through September 14, 2012, vs. the same time period in 2011.
On a national level, housing markets in key areas of the United States also reflected improvement as reported in Bloomberg, for the first half of 2012. They reported significant improvement in "residential new construction" as builders confidence grew. As quoted, "A report from the National Association of Home Builders and Wells Fargo on Sept. 18 showed that builder confidence climbed to the highest level since February 2007, according to a Bloomberg survey." Home buyer confidence is returning after a 8 month low, as reported by Bloomberg, August 28, 2012. Additionally, with the improved housing market the number of homes purchased by "first time home buyers" has also improved. According to the National Association of REALTORS® by 2% in July 2012 vs. 2011.
A new report will be generated in October, wrapping up the end of September and the 3rd quarter 2012 home sales for Arlington MA. Included will be charts for surrounding towns, indicating quarterly and year-to-date (Y.T.D.) performance.
Individual Reports Below: