2012 was the start of the “turnaround” market. The buying climate in the latter half of the year signaled for many it was a sellers’ market. The unemployment numbers started to move down and the mortgage rates remained around a low of 4%. Many savvy buyers became new home owners in 2012.
Sellers were excited to see their home selling in multiple offers. Some of those were all-cash buyers who were willing to close in just a few days.
According to the MLS data reported that single family homes in Albany increased in 2012. The average sales price was $645,919 during the 2nd half of 2012, as compared to the average sales price of $602,237 during the 2nd half of 2011. The list price to sell price ratio in the 2nd half of 2012 was +107.51%. Those are positive numbers.
Further data provided by the California Association of Realtors, 2013's forecast is a bright one. Job growth in our state is predicted to be 1.6 percent, and the statewide median home price is expected to increase 5.7 percent. This follows a 10.9 percent rise last year, which reflected absorption of much of the distressed properties.
The Albany market will continue to shine in terms of appreciation in property value. Jobs are increasing, the schools are terrific, and the shops and restaurants are highly regarded throughout the Bay.
Once the lost property values from the mid 2000’s have been regained by rapidly appreciating property values during the “turnaround” they should most likely be cooled by rising interest rates and the increase of more homes for sale. It’s only a matter for time for interest rates to start moving up.
Once the market settles down with this new interest expect a "normal" annual property value appreciation of 4.5 to 7 percent per year, which is seemingly sustainable for the Albany market.
Anne Feste, The Grubb Co, 510-757-4787