Your Home: Housing market 2012

12/29/2012 04:13 PM

By: Ryan Peterson

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How did the housing market fair in 2012? We sat down with broker Kevin Clancy for some answers.

“2012 was a great year for real estate. The second half of the year is where we really saw the strength. Mostly right after the election. Markets don’t like uncertainty. It didn’t matter who won the election,” said Clancy.

The National Association of Realtors reported that home sales were up 5.9 percent for the month of November and that sales are on track for a five year high.

“The fall market was one of the strongest I’ve been involved with. Pending sales are up. Prices are starting to increase two percent to four percent. All the signs are there,” said Clancy.
While sales are up drastically from 2011. we’re still short of what the National Association of Realtors considers a healthy market. Clancy cited the unprecedented, historically low interest rates as the driving force behind the market today.

“Basically, you can buy the same house you could buy in 2004 for $400/month less. Buyers are starting to realize that homes are on sale and that it’s a great time to buy,” said Clancy.

Of course we had to ask Clancy to gaze into his crystal ball and tell us what he sees for the housing market as head into 2013.

“The number one thing, in my opinion, is buyer sentiment. Just like consumer confidence drives economics. Same with real estate. I think we’re at the beginning of a six to seven year, positive cycle for real estate values,” said Clancy.

Clancy also reminded us that lenders aren’t as stingy as they were a few years ago. If you’re working and paying your bills on time, money is available. And with interest rates as low as 3.5 percent, why wouldn’t you?