Category Archives: Real Estate Market

Real Estate Market Update – March 2017

California Sales Report

The real estate market in California showed strong gains in both single-family sales and the median price.California real estate market update March 2017

This infographic and information is from THE CALIFORNIA ASSOCIATION OF REALTORS at CAR.org.

California’s February 2017 Sales

Compared to February 2016, 2017’s February shows strong gains in both sales and price.

This infographic is from the CALIFORNIA ASSOCIATION OF REALTORS at CAR.org.

California Real Estate Sales Dip — Except for Southern California

California pending home sales dip slightly in January; Southern California market continues to outshine other regions

Source: C.A.R.

Following relatively strong closed escrow home sales over the past few months, California
pending home sales slipped negligibly from a year ago, which suggests a softening in the
housing market in the upcoming months, the CALIFORNIA ASSOCIATION OF REALTORS®
(C.A.R.) said.

housing market forecast

Making sense of the story

  • Based on signed contracts, statewide pending home sales decreased in January on a
    seasonally adjusted basis, with the Pending Home Sales Index (PHSI)* slipping 0.2
    percent from 107.4 from January 2016 to 107.2 in January 2017. On a monthly basis,
    California pending home sales were down 9.2 percent from the December index of 118.0.
  • Only the Southern California region posted a year-over-year improvement in pending
    sales last month, rising 8.1 percent from January 2016 and increasing 10.5 percent on a
    monthly basis. Riverside County led the region in pending sales, posting a 16.2 percent
    increase from a year ago. Los Angeles, Orange, and San Diego counties also posted
    modest year-over-year increases of 7.1 percent, 8.0, and 4.0 percent, respectively. San
    Bernardino County was the only area within Southern California that saw pending sales
    lower on an annual basis by 2.8 percent.
  • For the San Francisco Bay Area as a whole, tight housing supplies and low affordability
    contributed to a fall in pending sales of 9.7 percent compared to January 2016. Only San
    Mateo County posted an annual increase, rising 5.3 percent from January 2016 after
    posting a significant double-digit annual decline (35.3 percent) in December. Pending
    home sales decreased 21.2 percent in San Francisco County, 7.1 percent in Santa Clara
    County, 24.9 percent in Monterey, and 4.8 percent in Santa Cruz County. A shortage of
    homes on the market and poor affordability will likely persist throughout the year, and
    impact Bay Area home sales.
  • Pending sales in the Central Valley fell 7.9 percent from January 2016 and were up 2.2
    percent from December. Within Central Valley, pending sales were down 14.6 percent in
    Kern County and 11.8 percent in Sacramento compared with a year ago.

Read the full story from CAR.org here.

Money Monday: California Housing Affordability

Higher wages and seasonal price declines affect California housing affordability.

housing market forecast

• “Thirty-one percent of California households could afford to purchase the $511,360 median-priced home in the fourth quarter, unchanged from third-quarter 2016 and up from 30 percent in fourth-quarter 2015.” (“4th Qtr 2016 Housing Affordability”. CAR.org. 9 Feb 2017)

• “A minimum annual income of $100,800 was needed to make monthly payments of $2,520, including principal, interest, and taxes on a 30-year fixed-rate mortgage at a 3.91 percent interest rate.”

Read all about 2016’s housing marketing in the fourth quarter, in the CALIFORNIA ASSOCIATION OF REALTORS’ article here: “4th Qtr 2016 Housing Affordability“.

 

First-Time Home Buyers Have Increased

For the first time in three years, the percentage of home buyers in the real estate market has increased.

This infographic is from the CALIFORNIA ASSOCIATION OF REALTORS.

California Pending Home Sales Increase Moderately

Led by Southern California, state’s pending home sales trends in December.

Source: CALIFORNIA ASSOCIATION OF REALTORS®

Led by the Southern California region, California pending home sales registered gains on a month-to-month and year-to-year basis, portending a moderate increase in sales in the near term, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.housing market forecast

The modest sales growth is unlikely to be sustained, however, given the severe shortage of homes for sale and affordability concerns, as indicated in C.A.R.’s December Market Pulse Survey**, which saw fewer listing appointments and less open house traffic.

Based on signed contracts, statewide pending home sales increased in December on a seasonally adjusted basis, with the Pending Home Sales Index (PHSI)* rising 1.9 percent from 115.8 from December 2015 to 118.1 in December 2016 – even with new mortgage rules that pushed sales higher December a year ago.

  • On a monthly basis, California pending home sales were up 3.3 percent from the November index of 114.4.
  • Southern California saw the largest increase in pending sales last month, rising 7.8 percent on an annual basis and decreasing 16.1 percent on a monthly basis.
  • On the flip side, in the San Francisco Bay Area as a whole, tight housing supplies and low
    affordability contributed to a fall in pending sales of 14.2 percent compared to December 2015 and 32.5 percent from November.
  • Overall pending sales in the Central Valley improved 0.9 percent from December 2015 and were down 18.4 percent from November.
  • The share of homes selling below asking price fell from 57 percent a year ago to 43 percent in December. Conversely, the share of properties selling above asking price increased to 23 percent from 18 percent in December 2015. The remaining 34 percent sold at asking price, up from 25 percent in December 2015.
  • For homes that sold above asking price, the premium paid over asking price rose to 11 percent, up from 8.4 percent in November and 9.2 percent a year ago.
  • The 43 percent of homes that sold below asking price sold for an average of 22 percent below asking price in December, double the November figure of 11 percent, and was up from 13 percent from a year ago.

Read the full story: www.car.org/newsstand/newsreleases/2017releases/dec2016pending

Improved Affordability in California

Compared to this time last year, homes are slightly more affordable in California

  • The median price for a single-family home in California in 2016’s Q3 was $515,940.
  • 31% of households could afford to purchase a median-priced home — compared to 29% of households a year ago.
  • Least-affordable counties include: San Francisco, San Mateo, and Marin.
  • Most-affordable counties include: San Bernardino, Kings, and Kern.

CAR improved real estate affordability in California

This infographic is from the CALIFORNIA ASSOCIATION OF REALTORS

What Xers Want in a Home

Gen X home buyers want specific things from and priorities for their homes, and have different desires than perhaps other generations.

Family is a top priority among this generation, and want their house to reflect this.

what_xers_want_-_hires

This infographic is from the CALIFORNIA ASSOCIATION OF REALTORS here.