This Month in Real Estate

September 2013 Market Update

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September Newsletter 2013

The annual rate of home sales rose to the highest level since 2009 in July, the jump likely boosted by formerly reluctant buyers being pushed off the sidelines by the anticipation of rising mortgage rates. As speculation continues on the date and extent of the Federal Reserve’s reduction in its purchases of unconventional assets, mortgage rates have already begun to rise and are unlikely to return to the historic lows witnessed early in the year. With rates on the move, prospective buyers would do well to take advantage of low rates while home affordability remains at historically high levels. Prices moderated slightly in July from their peak in June, likely due to seasonal variation, but maintained high year-over-year growth rates. Sellers are still well-positioned in the national market with inventory still relatively tight in many areas.

Interest Rates interest-rates-sep-2013

Interest rates have moved up this month: 30-year fixed-rate mortgages are currently 4.58% with 15-year rates at 3.60% and 5-year adjustable rates at 3.21%. These are the highest rates we have seen in the last two years.

Home Sales

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Total existing home sales in July were up 6.5% from June to a seasonally adjusted annual rate of 5.39 million homes. Year-over-year home sales were up 17.2% from the July 2012 rate of 4.6 million homes. The housing market recovery is still well under way with 25 consecutive months of year-over-year growth in home sales heading into this fall.

Home Price
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The median existing home price in the United States in July was $213,500, down slightly from the previous month but up 13.7% from the same month last year. The median price level released by the National Association of Realtors is not seasonally adjusted and the small dip we experienced from June to July is consistent with those we have seen in the past. This is the seventeenth consecutive month of year-over-year price increases, which last occurred from January 2005 to May 2006.

Inventory

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A slight rise in inventory levels was evenly offset by the increase in the pace of home sales, causing the months of supply for existing homes to hold steady at 5.1 months. Total housing inventory rose by 5.6% in July to a level of 2.28 million homes. Inventory is 5% below levels reported for July of last year, which represented 6.3 months of supply at the time.

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NAHREP: Immigration Reform Could Generate $500 Billion

If current legislation that creates a path to legalization for 11 million undocumented immigrants is passed, the nation’s Hispanic real estate leaders estimate that it would create a new pool of 3 million homeowners and pump more than $500 billion in sales, income and spending into the U.S. housing economy. According to the National Association of Hispanic Real Estate Professionals (NAHREP), the chain reaction triggered by home purchases would drive demand for more than $500 billion in real estate transactions and an additional $233 billion in origination fees, real estate commissions and consumer spending associated with home-ownership.

Based on previous estimates from analysts, NAHREP officials calculate that as many as 6 million undocumented immigrants are likely to pursue legalization and possibly citizenship under the bill and up to 3 million would pursue homeownership based on the patterns of naturalized Latinos.

“Foreign-born householders have a high value and strong desire for homeownership,” says Juan Martinez, NAHREP president. “They have been here in our midst for years, working and participating in our economy. Legitimizing them through immigration reforms would finally give them the access and the confidence to buy homes.”

• Assuming past purchase trends among foreign-born householders remain consistent, half or up to 
3 million of the 6 million undocumented immigrants that are expected to pursue legalization, will also buy a home once they have legal status;

• Many of the undocumented foreign-born householders have age and income characteristics associated with potential homeownership with household incomes of about $40,000;

• Up to 3 million undocumented foreign-born householders could potentially afford a home worth $173,600, the national median sales price of a home. This would generate more than $500 billion in new mortgages, and about $25 billion in mortgage origination and refinance income;

• Assuming an average of 5.5 percent in sales commissions for these home sales, these purchases would create $28 billion in income within the real estate community;

• Home purchases by 3 million legitimized immigrants would create $180 billion in additional consumer spending within local communities based on the average $60,000 in associated purchases estimated by the National Association of REALTORS® in 2012.

Other housing and corporate leaders that work closely with the underserved market agree that legalization will spark swift interest in homeownership among these Latinos because they are already established in communities here in the U.S.

“Homeownership is an integral part of the American Dream in the undocumented immigrant community.
“Immigration reform would unleash pent-up demand for homeownership by millions of undocumented immigrants. It would help re-establish homeownership as a driving force in building wealth and accelerate the recovery of the nation’s economy,” says Alejandro Becerra, a former senior housing fellow, researcher, author and recipient of the 2011 HOPE Award.Our estimates in 2004 were very conservative and we received many calls from consumers who wanted to know what lenders were offering these loans,” says Gary Acosta, NAHREP co-founder and a veteran housing leader who was chairman of NAHREP when the study was conducted. “With the possibility of a legitimate path to residency and citizenship, we expect this group to be eager to buy homes.”

In its annual policy statement issued last March, NAHREP leaders advocated for immigration reform at the federal level that would create a path to citizenship for undocumented immigrants and their children and bring them out of the shadows.

Posted By Susanne On May 20, 2013

May Real Estate Newsletter for San Diego, CA

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May 2013 Newsletter

California’s Home Price Boom Sparked by Tight Inventories

sudden surge in single family home prices in California coupled with flat sales are both attributed by the California Association of Realtors® (C.A.R.) to a scarcity of available homes for sale, especially in the lower price ranges.  The median price is at a five year high after an unprecedented spike in March.

Existing single-family homes sold at a seasonally adjusted annual rate of 417,520 in March, up a scant 0.1 percent from a rate of 417,310 in February but down 4.9 percent from the March 2012 rate of 439,260 units.

Inventories fell to a 2.3 month supply on C.A.R.’s Unsold Inventory Index from 3.6 months in February and 4.2 months in March 2012.  The index indicates the number of months needed to sell the available homes at the current rate of sales.  A six to seven month supply is considered normal.

“While home sales were essentially flat from February, sales declined moderately from last year, as an extreme shortage of available homes continued to dictate the market,” said C.A.R. President Don Faught.  “Statewide inventory dropped 36 percent from last March and was below 3 months for the second time in the past few months.  Supply conditions are particularly tight in the lower-priced segment of the market, as inventory for homes priced below $300k plunged more than 50 percent from the previous year.”

The median price of a single-family detached home rose 13.7 percent from February to March, the highest month-to-month hike since C.A.R. began tracking the number in 1979 and was 28.2 percent higher than one year earlier.  The median price in February was $333,380, in March it was $378,960.  March was the 13th month in which the annual median price increased and the ninth consecutive month the increase was in double digits.  However March’s surge was the first increase after two straight months when prices declined.

“No doubt the dearth of home listings is driving the upsurge in the median price, as is an increase in sales in the higher-priced segments,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.   “Sales of homes priced $500,000 and higher are up more than 34 percent from last year, and have been on a rising trend since early 2012. Sales growth in the coastal regions – Marin, Orange, San Diego, and San Luis Obispo, in particular – helped push the statewide median price up to the highest level in more than four years.”

The median days on the market for a home sold in March was 29.4 days, down from 34.2 days in February and 52.2 days in March 2012. Jann Swanson

 

April Real Estate Newsletter

April Real Estate Newsletter

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March 2013 Newsletter / Market Updates

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March Newsletter 2013 Real Estate Market Updates

California Home Prices: A History

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one cool thing ca home prices