1. Interest Rates Will Remain Below 5%. Correct! Even better for buyers – rates were between 3-4% on a 30-year fixed loan. That’s the lowest annual mortgage rate in 65 years.
2. Prices and Sales Will Increase. Correct! Sales YTD (through November at the time of this writing) were up 19% over last year. With inventory levels down 1.5% from 2011, median sale price increased 4.9% from 2011. The average sale price in November was up 9% from 2011.
3. Foreclosures and Short Sales Will Decrease, Slightly. Correct! My prediction was less than a 6% market share and we end the year at 5.5% (which is actually only 146 sales for the year, compares to 188 last year).
4. The market will be “stable.” Half right. Here’s what I said: I don’t think we’ll have a double dip, nor do I believe it will remain a buyers or sellers market, although we will continue to see multiple offers on some properties. A stable market means our supply and demand will be evenly matched. Here’s what happened: The market is now a sellers market after months of decreasing inventory. We saw multiple offers all over the market more often than not. We started the year off in a buyers market and quickly flipped to a sellers market.
5. More New Construction Will Go For Approval, Financing, and Construction. Correct! A few new buildings broke ground and began sales in 2012. For a full list, click here.
Standby for my 2013 prediction list coming soon.
Wishing you a very happy new year!