Sunday, September 10, 2017

HOME PRICES UP 6.6% NATIONWIDE, EVEN HIGHER IN SO CAL...IS THERE A BUBBLE?

This is a question, previously only asked by industry insiders, until the Great Recession made "bubble" a household word. Although Southern California's overall appreciation has hit as high as 10% a year recently, local economist Jonathan Lansner comments that this market's run up has been fairly mild. His exact quote, "Please do not forget how insane last decade's real estate insanity was. One hint is that in the five-year period that ended in 2005, local home appreciation was averaging 18% a year! that's almost twice today's upswing. So the current run-up looks pretty meek, comparatively. That doesn't mean there may not be a price adjustment, likely sprung from oncoming market conditions such as year-end demand and slightly higher interest rates. In fact, 58% of current homeowners see a drop in home values coming. That knowledge or perceived knowledge doesn't seem to be slowing sales or demand for inventory. Likely because millennialsl driving the market are still entering the market and the older M Generation will be looking for move ups and larger homes due to growing families and careers, in the next 3-5 years. Inventory is in fact, nationally, according to Keeping Current Matters Blog, at a 30 year low.

MILLENNIAL GENERATION NOT THE "RENTER" GENERATION PREVIOUSLY THOUGHT

Many have overvalued the Millennial idealism and commitment to lifestyle over career to mean renting. But statistics offer the opposite view: 34% of homes purchased in 2017 were Millennial buys. Once first time younger buyers and the older Millennial start layering their purchasing look for an even more active and varied market.

WHAT WERE THE ACTUAL NUMBERS?

For the month of July, the last complete month available, the total number of sales was 3,278. Compared with month over month with the previous year, that was off just 0.6%. The median price came in at $690,000 which showed us a 7.9% appreciation from the same month of 2016. Resale single-family median price was higher at $750,000 and had a total of 2,116 in volume. Condos came in with 879 sales and the median price was $475,500. New homes are still the lightest stat in the bunch with only 283 sales and the median price a staggering $835,250. The average monthly payment rose note quite $300 year over year to $3,220.79.

ARE PEOPLE REALLY LEAVING SO CAL OVER HOUSING COSTS?

Source: OC Register 8/13

The short answer is no. Housing costs is a headache residents are willing to deal with to live in one of the nicest enclaves on the planet. Housing, lifestyle, mountains, desert, ocean, shopping, entertainment, hobbies, sports, and proximity to everything from LA to San Fran, culture and even the solace of wildflowers in Death Valley in Spring, Joshua Tree, or Yosemite...We love it here. Proportionally, no one is moving, we have less exodus that the U.S. as a whole and Texas, that state everyone loves to tell us everyone is moving to...

TOP TIPS FOR READYING YOUR HOME FOR SALE (OR EVEN COMPANY)

Yes, there are definitely things you can do that cost a minimum and could add as much as $10,000 to your net proceeds out of a home sale. Here are a few: 1) Give your entry way a facelift. How are the baseboards? Color of the walls, art work? clutter? It's the first thing people notice once inside. 2) Curb appeal - Truly the first thing people notice. How is your landscaping, mowing. Need some color? And at night, up lighting is truly the way to go. 3) Windows must be clean. Believe it or not, if buyers see deferred maintenance for simple tasks, they sometimes wonder what else hasn't been done that they can't see. 4) Garage, the windows of the soul of a house. Clean it out and organize it. 5) Super clean your house, a deep cleaning, hire a great company to come do the dirty work. 6) Finally, and most important... de-clutter. You may love all your stuff, but buyers love their stuff and they are trying to imagine where they are going to put things if they were to buy your home. They need to be able to picture themselves living there, so they need a neat, clean, pallet with which to do that. Also, professional stagers are available and will doubtless be suggested to you. Make use of their input and take advantage of their professional opinions. It could make you thousands.

Sunday, May 14, 2017

HOUSING APPRECIATION IS UP ALL OVER THE NATION

Every state had rising home appreciation for 2016 except: Wyoming, North Dakota, Alaska, Oklahoma, Vermont, Rhode Island, West Virginia and Delaware. Everywhere else, prices not only rose, but did so significantly. And this should make all Californians feel a little better about staying in California; our percentage was 6.6, while the State of Washington rose 10.2%, Oregon a whopping 11%, Colorado 10.6%, Nevada came in at 9%, and Arizona was 7.2%. Considering you head to those states you lose the weather, the ocean, or both, and a skilled work force, and it may be better to stick out our rising home prices. Even those tempted a little further east and south to Texas, will find 7.7% appreciation. These numbers are brought to you by the Federal Housing Finance Agency in their Quarterly Home Price Index. Locally, we have seen inventory about 8% tighter in the under $500,000 price range. Simply put, not as many homes have hit the market this year, compared to last year. However the spring season is young, and we may seem some sellers decide to test the market to see if it's the top or not. No one knows, but appraisers may start to rein in their valuations.

9 TRENDS TO WATCH IN 2017

An article in the OC Register by Jonathan Lansner had some great insights into 2017.  In case you missed the article, it specifically targeted these timely topics: 9) Luxury homes...never any rhyme or reason.  8) Prices - one interpretation, record highs don't necessary mean highest.  7) Affordability - A challenge in any bull market, but there are more well  paying jobs than you think.  6) Supply - the true Achilles heel.  5) Real Estate jobs - Are we at that threshold? 4) Rents - they rose 3.9% in 2015 and 4.9% in 2016.  Any guesses for 2017?  3) New Homes - pricier, less lot, but product is catching up.  2) Bargain Hunters - We have to have entry level...could be the crack.  1) Home Sales - Buyers bought 37,874 homes last year.  Hot.  Hot.  Hot.

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