Chuck Barberini Blog

Chuck Barberini Realtor – Home Prices Rise in Nearly Every U.S. Metro

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

“Life begins at the end of your comfort zone.”

Neale Donald Walsch

 

DAILY REAL ESTATE NEWS | WEDNESDAY, AUGUST 12, 2015

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The nationwide inventory crunch has pushed up home prices year-over-year in 93 percent of the country’s 176 major metro areas during the second quarter, according to the National Association of REALTORS®. Nineteen percent of those metros, or 34, saw double-digit increases in the second quarter.

 

“Steady rent increases, the slow rise in mortgage rates, and stronger local job markets fueled demand throughout most of the country this spring,” says NAR Chief Economist Lawrence Yun. “While this led to a boost in sales paces not seen since before the downturn, overall supply failed to keep up and pushed prices higher in a majority of metro areas.”

 

For renters considering home ownership, affordability is becoming a growing problem, Yun says. “With home prices and rents continuing to rise and wages showing only modest growth, declining affordability remains a hurdle for renters considering home ownership — especially in higher-priced markets,” Yun says.

The national median price for an existing single-family home in the second quarter was $229,400 — an 8.2 percent increase from a year ago. “The ongoing rise in home values in recent years has greatly benefited home owners by increasing their household wealth,” says Yun. “In the meantime, inequality is growing in America because the downward trend in the home ownership rate means these equity gains are going to fewer households. “The median household income in the U.S. rose slightly to $66,637 in the second quarter, but it would still take annual earnings of $49,195 to buy a home at the national median price with a 5 percent down payment; $46,605 for a 10 percent down payment; and $41,427 for a 20 percent down payment, according to NAR.

 

Regional Snapshot on Home Sales

Here’s a look at how home sales fared across the country in the second quarter:

  • Northeast: Total existing-home sales rose 10.3 percent and are 8.6 percent ahead of this time last year. Median single-family price: $269,300, up 5.2 percent from a year ago.
  • Midwest: Existing-home sales climbed 13.4 percent and are 12.7 percent higher than a year ago. Median single-family price: $182,000, a year-over-year increase of 8.7 percent.
  • South: Existing-home sales dropped 1.1 percent but are 6.3 percent above the second quarter of 2014. Median single-family home price: $202,900, up 8.7 percent compared to a year ago.
  • West: Existing-home sales climbed 8.1 percent and are 8.1 percent above a year ago. Median single-family home price: $325,200, up 9.6 percent over year-ago levels.

 

5 Priciest Housing Markets

  1. San Jose, Calif.: $980,000 (median single-family price)
  2. San Francisco: $841,600
  3. Anaheim-Santa Ana, Calif.: $685,700
  4. Honolulu: $698,600
  5. San Diego: $547,800

5 Most Affordable 

  1. Cumberland, Md.: $82,400 (median single-family price)
  2. Youngstown-Warren-Boardman, Ohio: $85,000
  3. Rockford, Ill.: $94,700
  4. Decatur, Ill.: $96,000
  5. Elmira, N.Y.: $98,300

Source: National Association of REALTORS®

 

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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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One Cool Thing … Chuck Barberini Realtor

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®

Credit Knowledge and Confidence-page-001 (2)

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Happy Independence Day 2015 – Chuck Barberini Realtor

4th of July

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.

Happy Independence Day 2015 US

6 Myths about credit scores – Chuck Barberini Realtor

CAR

 

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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