It is hard to believe that 2012 is history. In reflecting back over the year I feel that it has been a monumental one for the real estate industry overall. While the past few years have certainly had both its ups and downs, there are numerous indicators that the industry is regaining its strength and health- especially here in Denver, a leader in the nation. Here are just a few indicators that I feel are the most encouraging in reflecting back over the year and looking ahead to 2013!
Construction has been revitalized
- US builders started construction on the most homes and apartments in October 2012 since July 2008
- Builder confidence rose to its highest level in October 2012 since May 2006, right before the housing bubble burst
- Each home that is built creates an average of 3 jobs and generates about $90,000 in tax revenue (according to the home builders group)
Increase in home equity lines of credit
- By the end of this year it is estimated that the lending of home equity lines of credit (Helocs) will have risen 30% to nearly $80 billion
- Record low mortgage rates and the slowly improving job market are making it easier for real estate loans to be granted
- As home prices rise, so does home equity lending
Home sale prices continue to rise each month
- The average price of a single family home in Denver was $306,773- the highest average sale price in the metro area since 2006!
- Closings were up approximately 20% and homes under contract rose by approximately 16%
- 2013 median U.S. home prices are estimated to rise another 8%, the fastest growth since 2005
Inventory continues to decline
- The total U.S. homes for sale dropped to just over 1.6 million units in 2012. This is a 45% decrease overall since its peak in 2007.
Consumers are confident again
- The Consumer Confidence Index is a barometer of the health of the U.S. economy from the perspective of the consumer after considering a variety of factors. The Index reached 73.1 in November 2012, compared to an indexed rating of 40.9 in November 2011
Here is to continued growth and a wonderful 2013 for all!
-Courtney Ranson Licensed in the State of Colorado
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