The origins of the frenzy began when rates slipped under 4.0% at the end of 2011, and you can see how sales started popping in April, 2012:
But now that both rates and prices are finding some equilibrium, the sales count is looking more like a regular April, than a frenzied April:
The overall pricing trend has been positive….except for those who will insist that a month-over-month decline is the end of the world:
If our April results are similar to what’s happening elsewhere, then the media is going to have a field day. But it is merely the market finding it’s way in the post-frenzy era – look at the big swings in pricing over the last 12 months.
Though the ivory-tower types will be quick to label events as good or bad, copy each other’s guesses about the causes and leave it at that, we know it’s a healthy sign when sellers have to be smart about pricing. Price will fix anything!
We’ve had 34 NSDCC closings so far in May, and they are averaging $470/sf. There is likely to be whipsaw pricing in the months ahead – get good help!