It’s not breaking news that Snohomish County has very little real estate inventory, resale and REO properties. In my opinion, the low inventory levels are steadily forcing home prices up. Great news for sellers and with the home values rising can it be a sign of a rebounding market?
In a recent blog post from RealEstate.com, Riding the Trillion-Dollar Real Estate Recovery Roller Coaster, breaks out the 9 trillion real estate market loss . That’s is a lot of commas. That being said, RealEstate.com points out a encouraging statistic: “Your home’s value has increased $2,700 per month in the nine months since Nov. 2011.”
Is this the sign everyone has been looking for: Low inventory and rising prices? Could it be over?
Don’t bet on it.
According to ForeclosureRadar.com, Foreclosure Filings are on steep incline and with a single month’s increase of 30.54% you can bet there will be an increase is REO properties in early-to-mid 2013.
Another graph showing homes Scheduled for Sale has increased significantly over previous months – 25.59%. I’ll be curious to see how the presidential candidates handle questions, manage expectations, and recommended solutions to curb the foreclosure issue.
Another reason the home values increase is a false indicator of a rebounding market is Washington State’s unemployment rate. As of August 2012, the unemployment rate was a high 8.6%. A healthy economy is essential to the real estate market’s long term stability and if jobs can’t be created, or hiring encouraged, then this little surge will fall flat after the elections.
The economy needs real solutions and not just political talk of tax credits and home buying incentives. The solution needs to be concrete and long term – jobs! Make it easy for business owners want to do business in your State and the region will prosper.