With 2013 off to a start and interest rates as low as 3.5%, buyers are in the market. This is the busiest market I have seen since 2005. Inventory is down, with buyers having fewer choices in the market. The year ended with our Ashland market sales price increasing 5.82% over 2011. Our market is still down 32% or so from 2005 levels but the bleeding has stopped. There are many good solid deals and buyers are responding.

People need to be aware that the Quantatative Easing that began in September 2012 that started pumping $40 billion monthly into the economy is giving the feds some of what they want. The low rates are keeping the market moving in an upward direction. And with prices inching higher buyers want to buy now. This buyer demand could mean higher interest rates, still for now, they are at 60 year lows!

Spring is the time of year that most folks believe is the beginning of the real estate market. New inventory comes on the market, buyers come out to make their decisions and the weather is beautiful. However, this past fall and winter were very strong in our local market. During the fall of 2012 we began to see homes not only in the lower ranges sell quickly, but buyers moved into the mid range and we saw the beginning of renewed activity in the high-end market.

2013 should be a very strong market. The low rates allow more buying power for buyers and they will take advantage of that and the low prices. Buyers are aware that prices will go up with demand. Do not expect prices to shoot up, but we will see modest price increases. Sellers will be able to get more for their homes than they have been able to for years. But don't let greed creep in. That's what got us into this in the first place. For a home to sell it will still have to be in good condition and be priced for the market.