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.

FOOD FOR THOUGHT

Whether you rent or own...you're paying a mortgage...it's just that it may not be yours.  How much sense does that make?  Rents are escalating at such a rapid pace, that you may be better off purchasing a home and getting equity building and interest deduction, in the process.  In fact, after those deductions factor in, your net nut, may be less than you're currently paying in rent.  Don't make someone else a millionaire... make yourself one.

CONSUMER CONFIDENCE AT ALL TIME HIGH

Don't take this column's word for it, read the recent quotes by Housing Wire, Bloomberg, Yahoo Finance and Market Watch.  Americans are feeling better about the economy.  Having said that, affordability remains an issue.  But, as mentioned earlier, there are well paying jobs that are fueling the economy and that consumer confidence.  Local employment since the bubble burst a decade ago hit 1.6 million workers at the end of 2016, up 250,000 jobs since the start of 2010.