Home Prices

California Home Sales & Prices Ratchet Up in March

Posted in Atascadero, Central Coast Real Estate, Home Prices, Paso Robles, Templeton, Time to buy a Home, Time to sell a home on April 29th, 2015 by Jim – Be the first to comment

California’s housing market continued to pick up steam as existing home sales and prices propelled higher, with both posting back-to-back increases in March, C.A.R. reported this week.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 391,680 units in March, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. Sales in March were up 6.3 percent from a revised 368,400 in February and up 7.3 percent from a revised 365,120 in March 2014. The year-over-year sales increase was the first back-to-back sales gain since December 2012 and the largest observed since May 2012.

The median price of an existing, single-family detached California home jumped in March from both the previous month and year. The median home price was up 9.2 percent from $428,970 in February to $468,550 in March, the highest level in seven months. The increase was stronger than the long-run February-to-March average of 3.9 percent. March’s median price was 7.2 percent higher than the revised $437,100 recorded in March 2014.

U.S. Home Prices Are Surging 13 Times Faster Than Wages

Posted in Atascadero, Central Coast Real Estate, Home Prices, Paso Robles, Templeton, Time to buy a Home, Time to sell a home on April 11th, 2015 by Jim – 2 Comments

Source: Bloomberg

In yet another troubling sign regarding the affordability of homeownership, new data shows that the growth in U.S. home prices is beating wage increases 13 to 1. RealtyTrac found that home price appreciation has outpaced wage growth in 76 percent of U.S. housing markets during the past two years.

Making sense of the story

•Wages climbed by 1.3 percent from the second quarter of 2012 to the second quarter of 2014, compared to a 17 percent increase in home prices during that time.

•“Home prices in many housing markets across the country found a floor in 2012 and since then have rapidly appreciated, particularly in markets attracting institutional investors, international buyers or some other flavor of cash buyer not constrained by income as much as traditional buyers,” said Daren Blomquist, vice president at RealtyTrac.

•Among the 184 metro areas analyzed, the average wage growth over the two years ending Q2 2014 was 3.7 percent while the average home price appreciation in the two years ending in December 2014 was 13.4 percent.

•Metropolitan statistical areas with the highest ratio of price appreciation to wage growth included Merced, Calif. (141:1), Memphis, Tenn. (99:1), Santa Cruz, Calif. (94:1), Augusta, Ga. (78:1), and Palm Bay-Melbourne-Titusville, Fla. (62:1).

•Other metro areas where home price appreciation has outpaced wage growth by a wide margin during the housing recovery included Sacramento, Calif. (17:1 ratio), Riverside-San Bernardino, Calif. (15:1 ratio), Las Vegas, Nev. (14:1 ratio), and Detroit (12:1 ratio).

•Among the 140 markets where home price appreciation has outpaced wage growth during the housing recovery, 45 metro areas (32 percent) with a combined population of 63 million had a median home price in December that required more than 28 percent of the median income for monthly mortgage payments.

•Experts believe those markets with the biggest disconnect between price growth and wage growth during the last two years are most likely to see plateauing home prices in 2015 until wages catch up.

Consumers’ Positive Financial Attitudes a Good Sign for Housing

Posted in Atascadero, Central Coast Real Estate, Home Prices, Paso Robles, Templeton, Time to buy a Home, Time to sell a home on March 7th, 2015 by Jim – 2 Comments

Consumer optimism toward the housing market gained some momentum last month following a dip in December, according to results from Fannie Mae’s January 2015 National Housing Survey. After dropping in December, the share who said it is a good time to buy a home increased 3 percentage points to 67 percent, and the share saying they would buy rather than rent if they were to move jumped 5 percentage points to 66 percent, marking the first increase since September 2014.

Highlights from the survey include:

•The average 12-month home price change expectation rose to 2.5 percent.
•The share of respondents who say home prices will go up in the next 12 months rose to 49 percent. The share who say home prices will go down remained constant at 8 percent.
•The share of respondents who say mortgage rates will go up in the next 12 months decreased by 3 percentage points to 45 percent.
•The share of respondents who think it would be easy to get a home mortgage today fell to 50 percent, while the share saying it would be difficult to get a mortgage rose 3 percentage points to 47 percent.

California’s Housing Market Returning to Normalcy

Posted in Atascadero, Central Coast Real Estate, Home Prices, Paso Robles, Templeton, Time to buy a Home, Time to sell a home on February 12th, 2015 by Jim – 1 Comment

California’s regional housing markets ended the year with mixed results as statewide home sales inched up from a year ago for the first time in nearly a year and a half, C.A.R. recently reported.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 366,000 units in December, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. Sales in December were down 2.9 percent from a revised 376,890 in November but up a slight 0.6 percent from a revised 363,740 in December 2013. The negligible year-to-year increase was the first since July 2013.

For 2014 as a whole, a preliminary 383,320 single-family homes closed escrow in California, down 7.6 percent from a revised 2013 figure of 414,900.

Reversing a three-month decline, the median price of an existing, single-family detached California home increased 1.7 percent from November’s median price of $444,830 to $452,570 in December and was up 3.1 percent from the revised $438,790 recorded in December 2013. The statewide median home price has been higher on a year-over-year basis for more than two years, but price gains have narrowed over the past few months.

Stronger Economy, Solid Job Growth Expected to Boost Home Sales in 2015

Posted in Atascadero, Central Coast Real Estate, Home Prices, Paso Robles, Templeton, Time to buy a Home, Time to sell a home on February 1st, 2015 by Jim – Be the first to comment

Existing-home sales are forecasted to rise about 7 percent in 2015 behind a strengthening economy, solid job gains, and a healthy increase in home prices, according to NAR’s Chief Economist Lawrence Yun

Despite his forecasted increase in sales, Yun cites the anticipated rise in interest rates, lenders being slow to ease underwriting standards back to normalized levels, and homeowners unwilling to move because they are comfortable with their current low interest rate as potential speedbumps that could slow the increased pace of sales this year.

With one month of data remaining in 2014, Yun expects total existing-homes sales to finish the year around 4.94 million (down 3 percent from 2013), but then rise to 5.30 million in 2015. The national median existing-home price for 2014 will be close to $208,000, up 5.6 percent from 2013, and is expected to moderate to a pace between 4 and 5 percent in 2015.