As the end of the year approaches, we can’t help but reflect on the ups and downs of the Real Estate Market. We have seen historically low mortgage interest rates, lower home prices and recently, a bidding frenzy that almost rivaled the market of yesterday due to a lower than average home inventory. An inventory that is not able to keep up with the constantly increasing amount of home sales. According to the latest Realtors Confidence Index, thirty-two percent of homes on the market sold within one month. A whopping fifty-nine percent were sold within three months.
The latest Realtors Index also reports that home prices are projected to increase in the forthcoming year by three percent. The October 2012 Economic Survey by the Wall Street Journal panel of economists forecasted home prices as increasing at an annual rate of 3.25 percent in the forthcoming year. Rents in residential properties have also been reported higher than the previous year.