Buyer Hesitation Begins to Disolve
Lawrence Yun,Chief economist of the National Association of Realtors, published some interesting information about the market that we have been feeling locally over the last several weeks. After years of declines, home sales nationally seem to be turning around. Levels of closed sales, and pending contracts, are at levels above normal spring and summer increases.
First time home buyers have had an impact on the market nationally taking advantage ot the credits, discounted prices, and low mortgage rates. In some markets the rebound has been quite heated with sales doubling from year ago levels, and in some cases we have seen multiple bidding. Whats more, home prices and mortgage payments in relation to income, are at comfortable below historic levels in some markets. That suggests that home values and prices have overcorrected in the downward movement. It is estimated some markets could experience a snap back in home prices. Because consumers' view of home values is changing, the momentum of rising home sales will likely continue in 2010. Buyers are no longer hesitant about home purchases and of further price declines. This sets that stage for a steady release of pent-up housing demand.
Locally, we are seeing favorable results of the pent-up demand for condos/homes here in Provincetown. Provincetown real estate continues to be popular and desireable due to location, lifestyle, and the dynamics of the city. Between weekly themes, movie and art festivals, and the relaxation created by the Cape Cod National Seashore Park, shopping, and the diversified cuisine, there is something for everyone! Currently we have 53 properties pending to close which resulted from activity over the past few weeks, and greatly improved the numbers from the begining of the year.