Six Weeks Until December 31
November 19, 2012
It is hard to believe that the year 2012 will end in six weeks. In many ways it has been a transitional year for real estate. We have seen inklings of a stabilizing market with median prices no longer declining. We have seen the inventory of properties for sale shrink to all time lows.We have seen an influx of buyers eager to make a purchase. We have seen more properties with accepted contracts than there are properties available for purchase. We have seen interest rates continue to be at all time lows.
What will these final six weeks bring?
For prospective buyers, six weeks is enough time to make an offer and to close an escrow.
For sellers, especially short sellers, completing a sale in 2012 allows them to know that the forgiven debt will not be subject to income tax. Next year this may be extended, but uncertainty about its continuation reigns.
Unfortunately, the banks still hold the upper hand in the timing for a short sale closure.
For sellers, the small amount of inventory allows them to attract multiple offers which can be beneficial in obtaining the best possible selling price.
There is much that is positive for both buyers and sellers. For sellers, buyers are plentiful. For buyers, interest rates remain low and prices have not risen substantially.
While holiday times are not often active times for real estate, it will be interesting to watch how the next six weeks unfold. Will folks lay back and wait for the new year or will they continue the increased activity of the past two months?
It is hard to believe that the year 2012 will end in six weeks. In many ways it has been a transitional year for real estate. We have seen inklings of a stabilizing market with median prices no longer declining. We have seen the inventory of properties for sale shrink to all time lows.We have seen an influx of buyers eager to make a purchase. We have seen more properties with accepted contracts than there are properties available for purchase. We have seen interest rates continue to be at all time lows.
What will these final six weeks bring?
For prospective buyers, six weeks is enough time to make an offer and to close an escrow.
For sellers, especially short sellers, completing a sale in 2012 allows them to know that the forgiven debt will not be subject to income tax. Next year this may be extended, but uncertainty about its continuation reigns.
Unfortunately, the banks still hold the upper hand in the timing for a short sale closure.
For sellers, the small amount of inventory allows them to attract multiple offers which can be beneficial in obtaining the best possible selling price.
There is much that is positive for both buyers and sellers. For sellers, buyers are plentiful. For buyers, interest rates remain low and prices have not risen substantially.
While holiday times are not often active times for real estate, it will be interesting to watch how the next six weeks unfold. Will folks lay back and wait for the new year or will they continue the increased activity of the past two months?
posted by shirley harry at 8:14 AM
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