A couple of storylines have dominated national real estate news outlets for more than a year. St. Cloud homeowners who are less industry-focused have been hearing the same thing from the national news media, too. Last week, they both staged a partial about-face.
The storylines are interconnected. The dominant one dealt with the national trend toward a weakening in the number of homes being sold. About a year ago, both new and existing home sales numbers began to falter. This wasn’t enough of a drop to cause genuine consternation—but it was persistent enough to generate headlines.
The reason that potential St. Cloud home buyers and sellers weren’t overly concerned was partially due to the second storyline, which focused on the fact that fewer homes were being offered for sale. That seemed to be a reasonable explanation for the falloff in the number of closings, rather than an underlying loss of public confidence in the value of residential real estate. More evidence was the continued rise in prices paid.
Last week came word that, for the first time in a long while, a change of direction was in the wind. On a month-to-month basis, both trends reversed. According to the press release from the National Association of Realtors®, the Pending Home Sales Index for January registered “a strong rebound”—rising 4.6% above December’s levels.
“Homebuyers are now returning and taking advantage of lower interest rates,” according to the NAR’s Chief Economist. This was noteworthy—for months, Dr. Yun’s pronouncements had sounded considerably less optimistic.
The same release registered the first apparent reversal of the inventory pinch. Gauged by the number of properties tallied nationally by realtor.com, in January, the number of residential properties listed for sale grew by more than 14,000.
Neither of the two turnarounds was gigantic from a statistical point of view, yet they did portend good things to come, at least in the NAR’s view. It’s hard not to agree with that opinion. Incomes are rising faster than home prices in many areas. If mortgage rates hold steady and job creation continues, all trends should combine “to boost home buying.” All in all, these could be enough to nudge undecided St. Cloud homeowners into joining what is traditionally St. Cloud’s most active home sales season. If that’s your inclination, I hope you’ll give me a call!
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My objective is simple; to do for you what I would wish someone in the same position to do for me which means always acting in your best interests in order to achieve the goals that you have set for yourself. I have been in the real estate business for over 20 years and began when I started in the construction of homes. I have built homes from the ground up (pouring footings to setting the last finishing nail) which is a huge benefit for you as I can share that knowledge about home construction with you. I have successfully negotiated hundreds of contracts and fully understand the process as well as every line of a contract that you will be signing your name to. We are the only entity that can work with legally binding contracts w hile not holding a law degree and as such we have very specific fiduciary responsibilities to our clients and I take them very seriously. My goal is to make the process not only informative and educational thereby removing the fear or anxiety that some experience but also to make the process both exciting and fun and I strive for 5 stars in every transaction. The bottom line is if you're not happy, then neither will I be!