AUGUST 2013

Monthly News & Tips for the Dickerson & Nieman REALTOR

THE MARKET REBOUND ISSUE

Rockford Market/Monthly Year-to-Year Total Housing Sales Increase, August 2012 July 2013:

MONTHS

10/12

Rockford Market/Monthly Year-to-Year Average Sales Price Increase, August 2012 July 2013:

WILL INTEREST RATES STALL THE RECOVERY?

The monthly average commitment rate on a 30-year xed-rate mortgage rose from 3.55% in July 2011 to 4.37% this past July, according to Freddie Mac. Still, three months after Federal Reserve Chairman Ben Bernanke gave the rst hints of rising interest rates, the impact has been small. Real, but small. From Moodys Analytics to big real estate brokers such as Century 21, the housing markets condition is steady to rising. As the Rockford market experienced this past month, there are more buyers out there, and most are serious. Lets hope rising rates wont dampen their enthusiasm.

MONTHS

9/12

As you can see, the Rockford housing market is red hot. Rockford Area Realtors have seen total monthly sales beat the previous years monthly sales in 10 of the last 12 months. And prices are gaining, too. The three-month average rolling sales price increased year-over-year in nine months in the last year. And increasing prices equal increased equity to spark overall sales.

ROCKFORD IN FULL-FLEDGED REBOUND

A signicant jump in July home prices and a leap in housing inventory have put the Rockford real estate market in a full throttle rebound! Just check out these amazing stats! The three-month rolling average price hit its highest level in 31 months at $113,178 in July, thats the highest monthly average since January 2011. Also, year-over-year monthly sales have been up 10 out of the last 12 months. And if that wasnt enough, the Rockford area housing inventory hit the 2,000 level for the rst time this year, the highest since last November. Overall the absorption rate is 6.49 months or less this year, matching 2007, the year before the housing recession hit, and new listings, which have been anemic to say the least, are up 7 of 12 months year over year. And perhaps the best news of all, as the housing market recovers, Dickerson & Nieman is gaining a bigger percentage of the pie with more sales than the market average.

RETURN OF THE SELLER

With the housing recovery in full swing, the Rockford real estate market is seeing the return of home sellers. Housing inventory jumped from 1,965 in June to 2,093 properties in July. The result: 128 more potential buyers on the market. Driving sales are two key homebuyer groups: rst-time homebuyers and move-up buyers. Almost a quarter of millennials purchased a home with their current spouse before their wedding, according to Coldwell Bankers new Mortgage and Homebuying study. Rising home prices are also fueling the selling market as existing homeowners become more condent about potential home prots and the prospect of moving up to bigger houses. So its all good news, and we hope a harbinger of much more to come!

CONSUMER CONFIDENCE IN HOUSING RISING

While nancial conditions are strong for housing recovery, the other half of the equation consumer condence is rebounding as well. New national research conrms that nearly half of Americans (47 percent) say they feel more comfortable purchasing a home today than at any other time in the past ve years. The data reects an easing of the wariness Americans have felt in recent years following the housing bubble. The top two Dickerson & Nieman Sales Volume 2013 reasons for a delay, economic instability and declining real estate market, are becoming less and less relevant. In short, Americans faith in the housing market is on the rise.
260 250 240 230 220 210 200 190 180 170 160 150 140 130 120 110 100 90 80 70 60 50 40 30 20 10 0 2013 GOAL! JUL 2013 JUN 2013 APR 2013

AT A GLANCE Snapshot of key market statistics

STAT JUNE 2013 JUNE 2012 DIFFERENCE

Residential Properties Sold Average Selling Price New Listings Interest Rates 30 Year Fixed

RAR DN RAR DN RAR DN Freddie Mac

374 184 $113,178 $127,490 659 132 4.37

364 135 $112,679 $129,590 608 114 3.55

2.7% Increase 36.3 Increase 0.4% Increase 1.6% Decrease 8.4% Increase 15.7% Increase 23% Increase

MAY 2013

MAR 2013 FEB 2013 JAN 2013