CHANGE AND THE AUTUMN EQUINOX

The autumn equinox is always a time of change. Some parts of the country begin having the great colors of the change, we in the desert can look forward to non triple digit highs. The third quarter housing reports came out this week and they have good news for the industry and the country alike. Nationally the prices have risen 9.5% this is the biggest annual gain since January 2006 at 10.2%, the west had the largest gain at 16.3%. Home resales up 7.8% for August this is the highest monthly rise since May 2010 while we were in the midst of the stimulus. Inventory and market time are shrinking if nothing else were listed it would take 6.1 months to sell our inventory. One year ago this number was 8.2 months, average market time a year ago was 92 day and now is 70 days. First time buyers comprise 31% of the market and all cash purchases nearly one quarter. This is great data but we must look at the economy as a whole. Bank owned mortgages are at a 16 year low, many banks just do not want Real Estate investments. The lending standards have tightened since the collapse from the lax standard. Historically housing demand has fueled economic recovery and will require participation from the lending community. After the recessions of the mid 70s and early 80s home prices rose nearly 20% in the next 7 years. This downturn has been deeper and most likely will take longer to recover, but could be greater. The equinox and the third quarter reports are all pointing to changes blowing in. If you have been thinking about getting in, or back in the Real Estate market this could be a great time as the winds change direction. As always consult with a Real Estate and financial professional about the market.