Thursday, March 8, 2012
Doug's March Market Update
I write this month from the RE/MAX international convention in Las Vegas Nevada. Although the weather is warm and sunny, I am spending my time in class and viewing new products in the “market place”. Since I am not a gambler, the casino is just something I walk through on my way to events.
There is good news being reported at the conference.
1. The GNP (gross national product) the indicator that tracts consumer spending is up over the past 18 months. Consumer’s spending of money means they have confidence in the economy.
2. Unemployment is down and thus more consumers are spending money and housing is on their radar.
3. The recent recession is over and tracking back 40 years to 1972, after each recession there has been a recovery in the real estate market (regarding number of units sold)
These are all positive indicators to support the reports that 2012 will an “up year” in regards to the number of properties sold.
Locally, the numbers for February support this prediction. In February 2012 there were 41 sales on island. The average sales price was $1,084,786, the median price was $520,000 and the average days on market are 267. The only “negative” here is that there were 12 bank foreclosures included in the 41 sales. I am not sure why there are so many bank related sales this month but we are definitely on the downside of the pinnacle of bank foreclosures numbers.
Interest rates continue to be historically low which should help fuel the market this year.