The Mayans Didn’t Get Us in 2012, So What Will Happen in 2013?

While uncertainties over the “fiscal cliff” and the impact of Hurricane Sandy are predicted to impact the national housing market in 2012’s fourth quarter, predictions for 2013 still are positive. Recently published reports on the outlook for the housing market in 2013 suggest continued improvement. Falling inventories, increasing demand, and improved availability of mortgages at historically low rates all suggest 2013 will be a great year in the housing market. Fannie Mae’s Economic & Strategic Research Group’s chief economist agrees housing continues to show signs of a strong recovery, saying, “For the first time since 2005, residential investment is poised to contribute to annual economic growth this year”. Internet real estate giant Zillow also just released it’s prediction that housing prices will go up 3.1% in 2013.

Locally, home sales and home prices are trending positively toward a great new year as well. Let’s take a look at what’s going on in Smyrna. Although October was a record month, home sales and prices have dipped during the seasonally weak fall and winter seasons. That’s okay. We expect that and the spring selling season will be upon us all too soon. Overall, year-over-year gains have strengthened significantly above 2011 levels. I expect that trend to continue.

The latest numbers for December are not in yet, of course, but if we look at the data for the first 11 months of 2012 just for Smyrna zipcode 30080, we see some nice numbers. The inventory for detached (single-family) homes on the market in 30080 in November was at the lowest level for the year. The amount of single-family homes sold dropped from previous months, but the amount of pended homes is steady. That means the inventory that is available is moving. Attached homes like condos and town houses in 30080 in the month of November have good news to report as well. The amount of pending contracts for attached homes went down since October’s high, but the average sold price went up 17%.

Across Cobb County, the numbers are impressive. I looked at the Smyrna/Vinings/Mableton/Austell area over the course of 2012 and compared it to the last 3 years. In the last 3 years, the inventory of both attached and detached homes has dramatically declined. Comparing November of this year to the three years ago, the inventory of detached went up 40% and the number of pending contracts went up 34%. For attached homes, the numbers compared to 3 years ago are equally impressive. Pending contracts are up 26.5%, sold properties went up 19% and inventory is down an amazing 55%. Prices show some fluctuation over the last 3 years, but overall they are trending upward positively. Look at the attached graphs to see how the last 3 years compare.

I’m a REALTOR because I enjoy helping people find a place to call home. Seeing the housing market really start to come back thrills me because I love this area and I love seeing happy neighbors. If you or someone you know is interested in receiving a detailed market report for your neighborhood at no obligation to keep you informed about the latest trends and issues in the real estate market, please let me know. Better information leads to better real estate decisions! To all of you, I wish you all the best in 2013! May it be a year full of laughter, love, successes and memories for you and yours to celebrate!