Home Sales Up 20% for August 2012 compared to August 2011
WOW! Great tag line to make everyone feel good about the real estate market in Wilmington by the Wilmington StarNews.. Being a Residential Appraiser and Broker, I deal with many Buyers, Sellers and Borrowers which are dealing with the current market environment. Wilmington Regional Association of REALTORS indicated that August sales were 20% higher than August sales in 2011. The article later states that prices have declined to 2004 price range which is before the bubble started. In my book, this is a good sign and maybe those in the market can see the light at the end of the tunnel.
The REALTOR is now coming out by saying it is a great time to buy unless your crystal ball is saying more foreclosures are on the way. Interest rates are still at all time lows, prices are back to pre-bubble prices and in some neighborhoods still plenty of properties to choose from.
Now the Appraiser comes out in me. I state in every appraisal now that most market areas are showing that prices are becoming stable since most of the foreclosures are now gone. There are still some areas within the Wilmington area that still have an abundance of foreclosures/short sales but overall most have been purchased. So will the banks flood the markets with their REO properties before or after the election? I feel that some banks are holding on to their REO properties and/or delaying foreclosures which has given us this false stable market condition. If banks allow too many properties to enter the market too quickly, we will be back into a 2008/2009 price decline. As I tell borrowers re-financing is to give it another 3 years, then we should finally be out of this mess as long as our elected people do what is right to clean up and solve this mess.
For this to happen, I feel that interest rates must go up but hopefully the FED/Bankers will keep them in signal digits. We need jobs including in the Wilmington area. While we have great restaurants, small entrepreneurial companies, beaches and movie industry, they do not provide enough income to support our current price level of homes. So does this mean prices will continue to fall as the end of 2012 approaches or at the beginning of 2013? I love to hear for you and your thoughts. Either way we will see as time passes.