The housing market is going back to how it was before the market crashed. There are those who believe that recovery of the housing market means that prices will go back to what they were in 2005 – 2006.
Prices may indeed go back to those levels but it will take another decade for that to happen. Right now home prices on average are lower than they were in 2003 but they are slowly rising and in 2013 I anticipate prices will be about where they were in 2003. I guess that is my new year prediction.
Inventory levels are like they were before the housing crash which means there are now fewer homes on the market, about a three month supply.
Buyers should get pre-approved and be ready to buy. The days of wait and see are over and there is no reason to wait for prices to go down because they are going up. The “bottom” we were all waiting for hot the twin cities in 2011.
There are homes on the market that are over priced and savvy buyers know that it is better to offer less than to wait for a price decrease.
Back in 2003 when the right home came on the market my buyers sometimes had to see it at inconvenient times, like during their lunch hour or during a football game.
Last year I saw a lot of multiple offer situations and I’ll go out on a limb and say that we will see multiple offers this year too.