(Wallyhood sponsor and local realtor Kris Murphy provided this summary of real estate activity in our neighborhood)
Home prices have increased a whopping 12.3 percent from a median sales price of $512,000 in 2012 to $575,000 in 2013. Homes sold faster (12 days less between 2012 – 2013), and often in multiple offers. Sales prices in 2013 were on average 2.86% higher than list prices as opposed to 2012 where sales prices came in 1.54% lower than list price. As real estate brokers, we certainly felt that surge in the late Spring to mid-Summer time frame of 2013. It was not uncommon to have 5 or more offers on a property and many buyers were frustrated after losing out on multiple properties.
Mortgage rates have increased slightly from their lowest point of about 3.5% and seem to be hovering in the 4.5% range at this juncture.
Statistics in table above are based on home sales outlined in map area below and are derived from the Northwest Multiple Listing Service data.
Wallingford started the year in January with extremely low housing inventory, and although the number of homes for sale began to rise as the year progressed into Spring, buyer demand continued to outpace supply all the way into August. In September there was a dramatic spike up in inventory following the Labor Day Holiday, but once again all inventory was bought up by October. The usual seasonal holiday reduction in available homes for sale occurred but we are now seeing more homes come on the market and anticipate a continued hot sellers’ market in 2014, barring any unanticipated developments.
Factors contributing to the home buying frenzy are limited inventory of housing, historically low interest rates, and pent up buyer demand from our dramatic economic downturn. People are finally feeling more confident in the economy, thus revisiting their plans and in turn re-entering the housing market. Also, many homeowners who found themselves underwater while prices were lower have regained much of their equity allowing them buy that next move-up home.
(Sponsor Note: Kris Murphy and Daniela Dombrowski specialize and conduct a majority of their real estate business in the Wallingford Green Lake neighborhoods, and have 17 years of combined experience. They have a deep understanding of the neighborhoods’ cultures and activities, as they live and raise their families here.)