Buyers’ Remorse

Did you purchase a home when inventory was low and you competed against 7 other offers?  After the 2008-2009 fantastic home prices, buyers caught on to the great opportunity.  Only in 2010-2012, home buyers were too late as EVERYONE was looking for a piece of real estate.  While some buyers are grateful for the low purchase price and opportunity of homeownership, others are filled with regret for purchasing their home without thinking about the financing.

Most buyers did not understand the financial aspect of buying a home.  It is very important to discuss your living situation and your comfort zones with your lender.  Speaking to a lender and getting pre-approved should be your first step in the home buying process.

If you are thinking about moving into something more your style, in a different neighborhood, in a different school district, or somewhere you really want to live, then call Bay Area real estate agent Kristen Jurevich who knows the local markets.  Get excited about living again…

 

BuyersRemorse

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JUST RELEASED: Bay Area Counties MLS Stats for January

San Benito, Monterey, Santa Cruz, Santa Clara, and San Mateo Counties all increased in inventory from the end of 2014 through the first month of January in 2015.  The average sales price in San Benito decreased 10% but Santa Cruz had the highest percentage decrease of 18%.  San Mateo and Santa Clara average price increased 6-7% even with residential inventory increasing 13%.  Buyers are still demanding on living in those counties and will gladly pay the price increase.   The average home stays on the market for a little more than a month before putting a JUST SOLD sign in the yard. If a home is on the market in San Jose, then it will most likely sell FAST. Great news for sellers, especially if you have a 50 year old home with no upgrades.  No worries, an investor or International buyer will gladly take it off your hands.

What can you expect with the real estate market in South County and Hollister? It surely follows the leader….Silicon Valley.  New construction are popping up in almost all vacant lots.  Permits have greatly increased across the board in 2013 compared to the earlier years.  Now buyers can expect to have a brand new home at a fraction of the Bay Area cost.

In general, don’t wait to buy a home.  The Bay Area housing is holding strong, unlike the rest of the United States.  Buyers will pay for the wonderful weather and easy access to work.  Local MLS stats show that things are looking good for real estate.  Where do you fall?

More great MLS Listing facts and reference, click here.

Data supplied is for MLSListings Inc five reported counties: Monterey, San Benito, San Mateo, Santa Clara and Santa Cruz. MLSListings data is tabulated the third of every month to the third of the following month; primarily to account for late corrections and additions by agents. These updates are often not included in most market reports. The Market Indicators Report reflects the most current information on the date the report is generated. A complete report for numbers indicated in summary can be found at mlslistings.com in the Media Center. Further media inquiry: please contact pr@mlslistings.com.

Are Homes Still Affordable in the U.S.?

By Gino Blefari
President & CEO
Intero Real Estate Services, Inc.

Who would’ve thought in 20

 

12 that just two short years later we’d be hearing talk and worry over housing affordability in the U.S.? Well it’s here. And with affordability comes the inevitable talk of housing bubbles.

A rapid growth in home prices will conjure up these worriesand debates every time. And that’s exactly what’s happening in some parts of the country – mostly the west.

The median existing single-family home price climbed in 73% of metropolitan markets in the fourth quarter of 2013 from the previous year, according to a recent National Association of Realtors report. Forty-two of the metropolitan areas tracked in the report, or 26%, had double-digit increases, while two were unchanged and 43 recorded lower median prices.
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The five most expensive housing markets in the fourth quarter were all in the west: San Jose, Calif., where the median existing single-family prices was $775,000; San Francisco at $682,400; Honolulu at $670,800; Anaheim-Santa Ana, Calif., at $666,300; and San Diego, where the median prices $476,800.

The five least expensive housing markets in the fourth quarter were Toledo, Ohio, where the median single-family home price was $80,500; Rockgord, Ill., at $81,400; Cumberland, Md., at $89,500; Elmira, N.Y., at $99,500; and South Bend, Ind., with a median price of $101,100.

Rising values in the west has been a good thing for homeowners who’ve seen significant gains in equity – in some cases enabling them the freedom to sell for the first time in several years. This housing activity is also helping to drive local economies through increased consumer spending.

But in some cases, home prices have risen faster than incomes, which impedes some buyers from getting in. That’s where affordability concerns start to come into play.

This is also the segment of the market that will be impacted the most by any spikes in mortgage rates, which could stand to price out some buyers.

What we’re looking for now in these rapidly rising markets is an increase in housing supply. A lack of available homes is the culprit behind much of the fast pace.

The average supply of homes during the fourth quarter was 4.9 months, up slightly from 4.8 months during the fourth quarter of 2012. However, NAR points out that a supply of 6-6.5 months represents a balance between buyers and sellers. So you can see why there’s such frenzy in certain markets right now.

Housing supply will continue to play a large role in affordability this year. Things to watch out for include housing starts for new construction and hopefully a big spring home buying season that spurs more owners to put their homes on the market.

Pending Home Sales Give a Peek at Spring

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Pending home sales – an indicator of how the market will fare in a few months – tell us today that there’s plenty of momentum going into spring this year.

In a widely distributed report from the National Association of Realtors, pending home sales rose in January, and have improved on an annual basis for 21 months.

NAR’s Pending Home Sales Index tracks contract signings, not closings – making it a fair indicator of number of sales coming down the pike. The index increased 4.5% to 105.9 in January from 101.3 in December and 9.5% from the same month a year ago when it was 96.7.

The index was the highest in January since April 2010, just before the deadline for the federal home buyer tax credit when it hit 110.9.

Also, California released a pending sales index last week, showing pending sales climbed 23% to 101.4 in January from the previous month, according to the California Association of Realtors.

It’s safe to say that the spring buying season will be hot in many markets this year.

In another bit of news, along with sales, asking prices seem to be following.  This past week, asking prices of homes for sale that appear on Trulia were up in 90 of the 100 largest U.S. metros in February.

Roughly 4.5 million for-sale and for-rent properties were listed on Trulia through February 28. Asking prices for those homes were up 7% from a year ago, and grew at a seasonally adjusted rate of 1.4% from January to February – the biggest month-over-month gain since the housing downturn began.

Spring historically is one of the hottest periods of the year for home sales. In 2013, we’re gearing up to see one of the most active spring seasons since the recession hit.

This is great news for sellers. For buyers, it could mean a lot more competition in the market – especially for those markets that still struggle with low inventory. My advice is to be prepared with financing so you can move fast when the right home comes along, and be persistent.

Happy spring!

By Gino Blefari, President & CEO, Intero Real Estate Services, Inc.

Photo: CasaSugar.com