Tag Archives: inventory

May 2017 – Market at a Glance

May 2017 real estate statistics

Thanks to the CALIFORNIA ASSOCIATION OF REALTORS, you can view a succinct pdf on the market statistics for last month.

In short, it only takes a listing an average of 22.4 days on the market before it’s in escrow, at the median price of $550,200. View more information below:

Click to view the pdf from CAR.org

Homebuyer Challenges

Potential homebuyers can face challenges to buying a home.

What difficulties to they face?

  • Saving for a down payment (need help on saving/not spending as much? Check out my Money Monday posts!)
  • Lack of houses for sale (real estate inventory)
  • Difficulty getting financing and credit
  • Personal debt (I have some tips in my past Money Monday posts!)

BuyerRoadblocks

 

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

March home sales and price increase

March existing home sales and median price accelerate from previous month and year

Source: C.A.R.

urban real estate prices, most live in suburbsCalifornia home sales rose from both the previous month and year to post the highest sales pace in six months, while strained housing supplies continued to push home prices higher, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).

Making sense of the story

  • Existing, single-family home sales totaled 415,220 in March on a seasonally adjusted annualized rate, up 5.5 percent from February and 5.7 percent above March 2015.
  • March’s statewide median home price was $483,280, up 8.9 percent from February and up 4 percent from March 2015.
  • The median number of days it took to sell a single-family home declined in March to 29.9 days, compared with 41.4 days in February and 34.2 days in March 2015.
  • March’s sales level rose above the 400,000 level for the first time in three months.
    C.A.R. President Pat “Ziggy” Zicarelli commented, “California’s housing market is moving in the right direction as we enter the spring home-buying season, but sales growth will likely be isolated in areas where inventory is more abundant and housing affordability is less of an issue. For example, in the Bay Area, where inventory is extremely tight, annual sales are down in the double-digits in seven of the region’s nine counties.”
  • The number of active listings increased slightly for the third consecutive month after declining for five straight months, but was not enough to boost housing supplies. Active listings increased 3.9 percent from February on a statewide basis.
  • The increase in active listings was outpaced by the rate of home sales, causing C.A.R.’s Unsold Inventory Index to drop from 4.6 months in February to 3.6 months in March.

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

Existing-Home Sales Were up in May

urban real estate prices, most live in suburbsExisting-home sales went up in May and inventory gains continued to help moderate price growth, according to the National Association of Realtors®. All four regions of the country experienced sales gains compared to a month earlier.

Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, rose 4.9 percent to a seasonally adjusted annual rate of 4.89 million in May from an upwardly-revised 4.66 million in April, but remain 5.0 percent below the 5.15 million-unit level in May 2013. The 4.9 percent month-over-month gain in May was the highest monthly rise since August 2011 (5.5 percent).

To read the rest of this article, visit here.

Values Are Soaring Again in San Diego

home prices up in real estateWith the property tax hike for 2014 predicted to be “tiny” because of low inflation, that means a 0.45 percent increase, the county assessor said. It appears to me that this is a very conservative postulate. This is actually a good thing, because everyone’s tax bill will remain below increasing values.

Inventory continues to be low, with 6,228 active listings last December 2013, which is down about 620 from November, but up from the 4,636 listed in December 2012. That said, inventory or supply will Continue reading

California home prices are at a 4-year high

Persistently declining for-sale home inventory helped push the median price of California homes up to its highest level in four years in August, according to a report by the CALIFORNIA ASSOCIATION OF REALTORS®.

Closed sales of existing single-family homes in the Golden State also saw gains, rising 2.3 percent on an annual basis in August to a seasonally adjusted annualized rate of 511,240 units. That’s a 3.4 percent decline from July, but the fifth straight month to see a year-over-year increase.

“A lack of inventory remains an issue, as the housing supply fell more than 30 percent from last year,” said LeFrancis Arnold, the Association’s president, in a statement.

“Inventory levels are at the lowest levels we’ve seen in seven years, and we are starting to see the supply shortage conditions having a negative impact on sales in the Central Valley and the Inland Empire, where REO (real estate owned) properties are in short supply.”

For-sale inventory fell to a supply of 3.2 months at the current sales pace in August, down from a revised 3.5 months in July and a revised 5.2 months in August 2011, C.A.R. said. A supply of six months is considered to be a “normal” market where buyer and seller demand is roughly equal. Last month, only homes selling for more than $1 million were in normal territory with a supply of 6.1 months. Homes under $300,000 had the lowest inventory, with a supply of 2.8 months.

home prices up in real estateIt took a median 41.1 days to sell a single-family home in August, down from 43.2 days in July and a revised 52.5 days a year ago.

The median price of an existing single-family home rose for the sixth straight month in August, up 15.5 percent year over year to $343,820. That’s a 3 percent increase from July, the largest annual price jump in more than two years, and the highest median since August 2008.

“The median price is gaining in part because of a shift in the mix of what is selling,” said CAR Chief Economist Leslie Appleton-Young in a statement. “The increasing share of sales in higher-priced coastal markets at the expense of the inventory-scare distressed markets has been the primary factor in fueling the statewide median price.”

Higher-priced markets with a “robust economy” are experiencing strong demand and posting double-digit year-over-year price increases, but sales were stagnant or declined in lower-priced markets that rely more on distressed properties, Appleton-Young said.

Sales of homes under $200,000 saw a 13.6 percent year-over-year decrease in August, while sales in every other price range rose. Homes above $500,000 saw the biggest jump, nearly 30 percent.

San Diego home prices increase

San Diego home prices are at 4-year high

“Home prices in San Diego County, still far from their pre-recession peaks, have risen to their highest level in four years, Tuesday’s DataQuick report shows. Home sales, which went through a five-month positive streak, have dropped.

The median price for all homes sold in July was $342,000. That’s the highest it’s been since August 2008, when the economy was in the dumps and the local median price was $350,000. The county peaked at $517,500 in November 2005.

July’s median price increased 1.9 percent from $335,500 recorded in June, and up 5.2 percent from the same time last year. Price boosts were most evident among condo resales. All five regions of the county saw price increases from a year ago. The hottest area was central San Diego, where the median price rose from $226,750 to $267,000, or nearly 18 percent.

The county recorded 3,565 sales in July, marking the first sales drop in five months. Transactions fell 5.1 percent from June, but they’re 17.2 percent higher than a year ago…”

Read the original article by Lily Leung at U~T San Diego here: “San Diego home prices are at 4-year high”.

How to tell if a home will hold its resale value when buying

Six signs a home will hold its resale value

Most buyers have a wish list of features they’d like to have in a home. Often missing from that list is how salable the home will be when they later decide to sell.

Generally, buyers deal indirectly with resale value. They want a home they can buy at market value or less. They want to buy a home that will retain its value. They want to buy a home that will suit their needs. They want to buy a home they can make their own.

home hold its resale valueA listing that’s priced low to sell fast may be one that will have good resale value only if you use this marketing strategy. The low price may offset an incurable defect, such as a location on a busy street.

There’s nothing wrong with buying a home on a busy street as long as (1) you buy it at a price that reflects the location issue; (2) it suits your long-term needs; and (3) you understand that you will probably have to discount the price accordingly when you sell, depending on the market at the time.

In a hot seller’s market, buyers are desperate to buy. They often overpay, and they are more likely to overlook defects that they would shun in a sour market.

Resale value has become a bigger issue since the housing recession began five years ago. Buyers are more cautious in their home-buying decisions. They don’t want to buy just any home; they don’t want to make a mistake and end up wanting to move in a slow market in which they might lose money.

The homes that hold their resale value well are the ones that appeal to a broad cross section of buyers; offer a good floor plan that works for different lifestyles; have a good amount of space but are not enormous and expensive to maintain; and exhibit a pride of ownership. They should also be in good condition.

Location is also a critical element of resale value. There are market niches that are always in demand, in both hot and soft markets. For example houses in neighborhoods with close proximity to shops, cafés and public transportation systems.

That’s not to say that every listing in these neighborhoods sell quickly. To sell, it needs to be priced right for the market.

It’s easier to recognize a home with good resale value in the current market than it was in the bubble market of 2005 and 2006 when virtually all homes sold in many areas. In a soft market, the homes that sell within 30 to 60 days are either good homes or good deals.

Ideally, you want to buy a home that has good resale value. Not one that’s just a good deal. There’s no urgency to buy now in many areas, although it would be nice to take advantage of record-low interest rates. But you shouldn’t buy a home that won’t work for you long term just to lock in a great interest rate.

Even though there are a lot of homes for sale on the market, in many areas there is a not a surplus of quality inventory on the market. One reason for the lack of quality homes on the market is that many sellers are waiting for a better time to sell. Another reason is that homes with good resale value don’t tend to change hands that often.

THE CLOSING: There may be good news ahead. Leslie Appleton-Young, chief economist for the CALIFORNIA ASSOCIATION OF REALTORS®, predicts that sellers who have been waiting for a better time to sell may decide they’ve waited long enough and list their homes for sale in 2012.

Dian Hymer is a real estate broker with more than 30 years’ experience and is a nationally syndicated real estate columnist and author.