2012 – First Half Wash Park Market Stats
Happy Days Are Here Again!
We have not seen this many sales in the first half of the year since 2007. Since 1999, we have only had one other June that was better than 2012. That was in 2004. I think that our numbers would be even higher if we had houses to sell. Inventory has not been this low in 13 years. I am working with buyers who are ready to buy and just can’t find anything. What a difference a year makes!
Some of the numbers are affected by the residual of the housing bust. For example, the Downing to Ogden numbers include a foreclosure on Alameda that sold for $88.03/sf. When you pull that one out of the mix, the average and median price per square foot rise to $314.07 and $322.42 respectively.
Interest rates remain amazingly low. They are hovering in the 3.5% range. One thing a lot of buyers don’t understand is how dramatically that affects the principal pay down of a mortgage. I had a closing this week where the buyer was borrowing the conforming maximum of $417,000 and they were paying over $600 to principal with their first mortgage payment – and over $8,000 in the first year. They will be building equity quickly!
All of this makes it a fantastic time to buy or sell a home in Washington Park. The inventory is badly needed. You might have to wait a bit for the right house to come up on the buying side. When you find it, you will get a great interest rate that will allow you to build equity quickly. For the first time ever, I am seeing mortgage payments substantially below rental rates. This makes buying investment property attractive also.
