Happy New Year Record-Eagle readers,
2012 was the third best year in Traverse City real estate history.
Isn’t that crazy?
Think about that.
For all of the noise, all of the struggles of the last five years, at least in the Grand Traverse area things are getting better.
At Re/Max Bayshore Properties, November and December 2012 were two of our best months in the brokerage’s nearly 30-year history, and 2012 was our best year ever. That’s a lot of Grand Traverse area buyers and sellers happily successful.
Reviewing the Traverse Area Association of Realtors’ (TAAR) MLS statistics from 2012, I was frankly surprised by the continued strength of our local real estate activity straight through year’s end. Traverse City real estate markets usually fluctuate seasonally — there are generally more transactions per month in late summer and fall than in winter months — but not last year.
The National Association of Realtors (NAR) reported this month that there were 4.65 million sales of existing homes in 2012, the best full-year national total since 2007. NAR has forecast 5.1 million existing home sales for 2013, and 5.4 million in 2014 nationwide. That is also good news.
Just as importantly, the national inventory of homes for sale has fallen below 2 million — that is the lowest inventory total since 2001. Here in the Grand Traverse area, there are acute shortages of clean, well-built homes in many price ranges. The key is that smaller supplies equal stronger home equity. That means that property values are not only no longer falling, they are actually gaining value. There, I said it!
With the flow of foreclosed property starting to slacken, interest rates still resting at the bottom of economic practicality, and many Americans adjusting to the “new economic normal,” it seems we are achieving some success in pulling ourselves back up onto our proverbial feet.
Albert Einstein said, “In the middle of difficulty lies opportunity.”
Real estate is not a discretionary purchase. We need food and shelter regardless of the state of our economy, the economy’s state just dictates how expensive it is for us to get them. So if the local real estate markets are growing stronger then the rest of the local economy must be growing stronger too, right?
What do you do for a living? What industry or role do you work in? Is it improving? Is it strengthening?
The American public got strung out on debt, crashed, and seems to be picking itself back up again. That’s not saying that everyone did, but enough of us did that it had virtually the same affect on our society and economy. If real estate activity is any indicator, it looks like the vast majority of us are going to be okay. The crisis is lifting. We’re gonna make it. It really does pay to save.
To find out what your property is worth, contact me for an in-depth market analysis of its value. Regardless of how you choose to move forward, a clear understanding of your property’s equity will give you the best opportunity to make your best decisions in 2013.
Until next time, enjoy yourselves,