The truism has it that real estate is the most local of assets. If you exclude California-style earthquakes, the land a home is built upon tends to stay pretty much in one place. That being the case, Brooklyn home prices tend to reflect our local Brooklyn conditions: when business is popping and everyone feels confident about the future, Brooklyn home prices tend to move upward.
Even so, as the complete numbers roll in from last yearâ€™s national real estate market, anyone with a rooting interest in Brooklyn home prices has to be cheered.
The fact is, American home prices climbed 5.9% last year â€“ the greatest yearly gain since 2006. Calling that only a â€˜sharpâ€™ rise is like calling the Super Bowl an â€˜interestingâ€™ football game. So, even though Brooklyn home prices reflect local conditions, that kind of jump indicates the kind of national movement that is bound to echo through every corner of the country.
The U.S. Census Bureau and the Department of Housing and Urban Development also report that new national housing starts rose in 2012â€™s final month to an annual seasonally-adjusted rate of 954,000 (way more than the experts expected).Â It sounds like a big number, and it is - an increase of 12% from the revised November rate of 851,000, and a gain of 36.9% over the previous yearâ€™s 697,000!Â Â
The National Association of Homebuilders also reported a third consecutive six-year high in its builder confidence index. Itâ€™s still below the point NAHB considers builder â€œoptimismâ€ balances with builder â€œpessimism,â€ but moving strongly in the right direction.
Now that weâ€™re at a point where we can look back over last yearâ€™s performance, itâ€™s easy to look back and say â€œThat year sure would have been a good time to buy or sell!â€ To me, it looks likely that this time next year, weâ€™ll have more of the same.
If 2013 is the year youâ€™re considering making a move, I would be genuinely delighted to put together a plan of action that fits your goals and your timetable.Â I hope youâ€™ll give me a call!