Chuck Barberini Blog

Chuck Barberini Realtor – ‘Prices Are Rising Just Too Fast’

DAILY REAL ESTATE NEWS | TUESDAY, AUGUST 11, 2015

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The tight supply of available homes is prompting more house hunters to bid up home prices, housing analysts say.Read moreHome Prices Reach an All-Time High

“Prices are rising just too fast,” says Lawrence Yun, chief economist with the National Association of REALTORS®. “And certainly far ahead of people’s income.” NAR recently reported that the limited number of homes for sale was pushing the national median sales price above its 2006 peak. In its latest existing-home sales report, NAR noted that the median home price for all housing types reached $236,400 in June – 6.5 percent above year ago levels and surpassing the peak median sales price set in July 2006 at $230,400.

Housing’s inventory problem is occurring across housing types. Condos made up just 5.5 percent of all multifamily building in the first quarter of this year, the lowest on record for the Commerce Department, which has been tracking such information for more than four decades. Single-family construction is also about half of what it should be, according to Bob Denk, senior economist at the National Association of Home Builders.

As for what’s hindering the new-home supply, Denk points to a skilled labor shortage in the building industry as well as a shortage in the number of lots to build on. “We are having these supply chain headwinds,” Denk says. “It’s hard to just double overnight. But the other part of that is we have produced at this level before, so it’s not impossible.”

Source:A Lack of Supply Drives Up Housing Prices,” Market Place (Aug. 10, 2015)

 

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Chuck Barberini Realtor – Contra Costa County Real Estate – Intero Walnut Creek

One Cool Thing … Check out some interesting information from the CALIFORNIA ASSOCIATION OF REALTORS®

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Happy Independence Day 2015 – Chuck Barberini Realtor

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As we celebrate our countries independence, let’s remember those that have fought and gave their all for us.

Remember our national pride – Remember who we are – Let’s take our country back.

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Some interesting information from the California Association of Realtors…

Chuck Barberini Realtor – Loan Demand Is on the Upswing for Spring

Chuck Barberini Realtor – Contra Costa County Real Estate – Intero Walnut Creek

In every walk with nature one receives far more than he seeks. John Muir

DAILY REAL ESTATE NEWS | WEDNESDAY, APRIL 01, 2015

Mortgage applications for home purchases and refinancings continue to rebound, with volume rising 4.6 percent on a seasonally adjusted basis last week compared to the week prior, the Mortgage Bankers Association reports in its latest index reading for the week ending March 27.

“This week’s mortgage application survey falls right into line with recent indications that home sales – new, existing, and pending – are on the rise, as is consumer sentiment,” says Lynn Fisher, the MBA’s vice president of research and economics.

Broken out, loan applications for home purchases, viewed as a gauge of future home sales, increased 6 percent week over week. Purchase applications are 8 percent higher than year-ago levels. Refinancing applications increased 4 percent during the week. Refinancing applications are 44 percent higher than they were a year ago, according to the MBA.

Federal Housing Administration loans, a big draw to first-time buyers, and Veterans Administration loans continue to post a strong performance with volume of these government-insured loans growing by 19 percent compared to last year.

The average 30-year fixed-rate mortgage fell to 3.89 percent last week, from 3.90 percent the week prior, the MBA reports.

Source: “Mortgage Applications Surge on Spring Demand,” 

While appreciate what the article has to say regarding loan apps and I think that it bods well for market strength in the upcoming months, it seems to me that it is only one side of the equation, at least here in the Bay Area. The rates are low and holding, which by itself has increased the activity in the market, the problem that I am finding as a man out on the streets is that there is a dramatic lack of inventory and the available homes are going up in price at a rapid rate. This is a twofold problem as it is knocking investors out of the market, because they are not able realize a return on their investment and the young buyers are getting priced out of the market. So who does that leave in the market, the more traditional home buyers that have a sudden increase in home equity which they can leverage into buying a larger family home and investors that are able to buy and hold to take advantage of the very restricted rental market.

It seems like the strategy for both young buyers and investors alike is patience, but be prepared to pull the trigger when the right opportunity comes along.

 

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