Home prices can be expected to rise this year if the real estate market would follow the historical trend. This would happen when it is coupled with low interest rates and a lower number of homes that are up for sale.
Statistics for December actually reveal that the number of homes that are for sale on Mercer Island hit a record low and this is according to the Northwest Multiple Listing Service (NWMLS). Together with rock-bottom interest rates, the market should be expected to have home prices be on the rise this year.
According to E.J. Bowlds, Coldwell Banker Bain Mercer Island Managing Broker, the inventory of local homes that were up for sale in 2012 was the lowest that he had seen during this past decade.
“People usually take their homes off the market at the end of the year, but inventory all last year lagged behind other years.” Bowlds said. “It’s a classic supply and demand squeeze. There will be upward demand on prices.”
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