Despite national news or even the local news stories (shadow inventory, prices dropping, foreclosure wave coming, etc.) the fact of the matter is prices have been marching upwards at a record pace the last 3 months. The price per square foot since February 16th has jumped from $85.62 to $98.81. In three short months that is an appreciation of 15.4%. On an annualized basis that would equate to 61.6%. Yikes! This jump can be attributed to the scarcity of inventory – which had been dropping dramatically since the beginning of the year.
Do we think the market will continue appreciating at that clip? No. Inventory appears to be stabilizing – and price appreciation seem poised to do the same in June. But appreciation seems to be the theme for this year – so although we don’t expect the rate to hit a dramatic 61% we do expect it to continue its upward climb.