In 2012, the market turned with a vengeance and grew very hot very quickly. Now in 2013 it has grown even hotter. Recent deal-making stories almost make the seemingly crazy, multiple-offer tales of last year appear sedate. The supply of listings is drastically low against buyer demand, and the pace of price appreciation looks to be accelerating. Some city neighborhoods appear to be surpassing the previous peak values reached in 2007-2008. As seen below, the first quarterâ€™s numbers reveal big increases in home values year over year. And the month of March alone saw a particularly big jump of almost 9% above Februaryâ€™s median price.
March sales prices reflect the heat of the market 4-8 weeks earlier, when the offers were actually negotiated. Much of the first quarterâ€™s sales data reflects offers negotiated in late 2012. In a rapidly changing market, weâ€™re always looking in the rearview mirror.