Blog :: 07-2012

Prudential Real Estate Outlook

 

IRVINE, Calif. - Brookfield Real Estate and Relocation Affiliates Inc., owner of the Prudential Real Estate franchise network, today released the quarterly Prudential Real Estate Outlook Survey showing that Americans' confidence in homeownership and real estate continues climbing from the first quarter and a year earlier.

Signs of growing confidence are widespread, according to the national survey. For instance:

  • 69% believe that real estate is a good investment despite the market volatility of the past few years, up 6 percentage points from the first-quarter 2012 survey and 17 percentage points from first quarter 2011.
  • 72% expressed confidence that the real estate market and property values will improve during the next two years, including a 6-point jump among those "very confident" or "confident" vs. the first quarter 2012, and a 14-point gain in this subset over first quarter 2011.
  • Nearly two-thirds (64%) of respondents have a favorable perception of the U.S. housing market, up from 60% in first quarter 2012 and 52% in first quarter 2011).

"The American Dream is clearly on the mend," said Earl Lee, president, Prudential Real Estate. "Americans are feeling better about homeownership and the ongoing recovery taking place in residential real estate. Many are increasingly optimistic about their personal circumstances and, with housing affordability near all-time highs, they want to act on the opportunity."

Factors driving homeownership  

Homeownership remains the central component to the American Dream, as 78% of respondents said owning a home was still "very important" - the same percentage reported in the first-quarter 2012 study. A full 98% said homeownership was at least somewhat important.

In addition, with interest rates at historically low levels, 96% of respondents at least "somewhat agree" that now is a great time to buy a home - the same percentage reported in the first-quarter 2012 study.

More than the financial reasons to buy a home, respondents placed higher priority on the emotional reasons for homeownership. "Control over living space," "more space for family," "safer neighborhood" and "good place to raise a family" rated higher than "a good investment," "financial security" and "tax benefits."

"Normalcy is returning to the U.S. real estate market and more people are buying homes for traditional reasons - to raise a family, feel secure and build a future," said Lee. "Every last emotion is rolled up into owning a home - it's where life happens - so it's no surprise that the emotional side outweighs financial reasons for owning a home among respondents."

Caution remains

The survey also shows that consumers remain cautious about the real estate market and process, as a full 30% "strongly agree" that the housing crisis reminds them to be more careful about buying or selling a home; up two percentage points from the first-quarter 2012 survey. In addition:

  • Nearly two-thirds (65%) of respondents indicated that financing or getting a mortgage is more challenging than it was before the market crisis, which is up from 58% in the first-quarter 2012 survey.
  • Among those considering a real estate transaction, 39% expressed concern they won't be able to sell their current home, up 11 points from the first-quarter 2012 survey and 10 points from first quarter 2011.
  • Given the dynamics and challenges of today's real estate market, nearly three out of four (74%) respondents think it is more important than ever to work with a good real estate agent for the best success in buying or selling a home (up from 71% in first-quarter 2012 and 67% in first quarter 2011).

"Real estate markets are improving around the country and consumers face many choices," concluded Lee. "Consumers should seek out a real estate professional who can help them make the best choices to suit their needs."

Prudential Real Estate Outlook Survey Methodology

Interviews with 1,250 Americans who are "in the market" to buy or sell a home were conducted online by Palisades Media Ventures and Penn Schoen Berland, between May 22 and June 1, 2012. Respondents are aged 25-64 with a household income of at least $50,000, and either recently bought/sold a home or are considering buying/selling a home. The margin of error is ± 2.8% for all respondents and higher for subgroups.

About Brookfield Residential Property Services

Brookfield Residential Property Services is a leading global provider of real estate and relocation services, technology and knowledge. The company's portfolio consists of leading brands, including Brookfield Global Relocation Services, the second largest provider of global relocation services, Prudential Real Estate, Brookfield Real Estate Services, Royal LePage, Real Living, Via Capitale and Centract. Through its real estate brands, it has nearly 80,000 real estate professionals in more than 2,800 locations, who transact over $150 billion annually. Its global footprint spans North America, the United Kingdom, France, China, Singapore, India, Brazil and Australia, and includes more than 2,500 employees worldwide. It is a division of Brookfield Asset Management, a global asset manager with approximately $150 billion of assets under management.

Brookfield Real Estate and Relocation Affiliates Inc. is a part of Brookfield Residential Property Services' integrated real estate brokerage franchise company. Its Prudential Real Estate franchisees are independently owned and operated. Companies are selected based upon outstanding performance records and high levels of customer service.

Prudential Real Estate provides franchisees with business strategies using Operation Reviews. Other benefits include access to Prudential Real Estate's Online Seller Advantage® program, designed to provide real-time information to sellers with the touch of a keystroke, and Online Buyer Advantage®, which enables consumers to easily search for properties in all 50 states and the District of Columbia. Prudential Real Estate is one of the largest real estate brokerage franchise networks in North America, with more than 1,500 franchise offices and 50,000 sales professionals as of December 31, 2011.

Prudential, the Prudential logo and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities and are used under license, with no other affiliation with Prudential.

Windham NH Real Estate Market First Half 2012

First Half of 2012 Windham Real Estate Market in Review

The spring market of 2012 is officially over so it's time to look back and see what happened in Windham. During the first half of this year, there were 69 single family homes sold vs. 64 in 2011 during the same period. This is a 7.81% increase in the number of sales for the half year period. The big news is the average days on market decreased from 153 to 114. The average sales price increased from $387,400 to $399,900 or an increase of 3.22%. The median sales price increased from $367,625 to $393,000 or a 6.9% increase. As discussed previously, average and median sales prices often reflect what price ranges are having the most activity and may not necessarily reflect an actual increase in prices. Overall though, things are really active in Windham and the current pending sales (homes currently under agreement) volume bodes well for an excellent second half of the year.

The most active price range for single family homes in Windham was the $300,000-$399,999 price range with 22 closed sales. The second highest sales range was $400,000-$499,999 with 13 closed sales and third was the $200,000-$299,999 with 12 sales. There were only 5 closed sales under $200,000. The $500,000-$599,999 range saw 8 closed sales and the $600,000-$699,900 range saw 5 closed sales.   The upper price range has seen three sales above $900,000 so far in 2012.

Historically, this market is both much better and weaker in comparison to previous years. In the first six months of 2009 there were just 57 home sold but in 2010 during the first half 92 homes had closed. For the full year of 2009 there ended up being 136 single family closed sales compare to 183 in 2010. Of course the peak year for sales was 2002 when there were 259 single family closed sales, with an average sales price of $395,435, for the full year.

In the condominium market, the first half of the year saw closed sales increase form 14 in 2011 to 18 in 2012 or an increase of over 28%. The average selling price decreased from $249,938 in 2011 to $238,472 in 2012. Of the 18, 5 were priced over $300,000. The largest price range was $200,000-299,999 where there were 7 units sold.  There were 6 units sold for under $200,000. Again, it is hard to say that prices are declining because the average sales price is impacted by the fact that a couple of new condominium projects in the upper price range are nearing completion with fewer sales.

If you're thinking about selling your home or condominium, why not get an accurate picture of pricing and see how Prudential Dinsmore Associates, REALTORS will use their innovative marketing and real estate skills to get your home sold not matter what the current  condition of the market.

 

This representation is based in whole or in part on data supplied by the Multiple Listing Service of the Granite State South Board of REALTORS, Inc. Neither the board or its M.L.S. guarantees or is in any way responsible for its accuracy. Data maintained by the Board or its M.L.S. may not reflect all activity in the market. Sales of Windham Homes and Condominiums from 01-01-2012 to 07-03-12