Top 20 Metros for Rising Home Prices
By Inman News®
Median single-family existing-home prices rose on a yearly basis in just over half of 146 markets tracked by the National Association of REALTORS® in the first quarter, indicating prices are stabilizing, the trade group said today. Nationally, the U.S. median single-family existing-home price dipped 0.4 percent from a year ago in the first quarter, to $158,100. Real estate owned (REO) and short-sale properties, typically sold at a discount, accounted for 32 percent of sales in the first quarter, down from 38 percent a year ago.
“Home prices lag sales activity because the transactions were negotiated mostly in the previous quarter,” said Lawrence Yun, NAR’s chief economist, in a statement. “Given the steadily dwindling supply of inventory and notably higher listing prices that are being negotiated today, prices are expected to show further improvements in the near future.”
At the end of the first quarter, for-sale inventory stood at 2.37 million existing homes, down 21.8 percent year over year. Inventories have been declining since a record 4.04 million in the summer of 2007, NAR said. “We now have broad shortages of lower-priced homes in much of the country, with very tight supply in Western states for homes through the middle price ranges. This is good news for many sellers who wish to list now, or for those waiting for prices to improve,” Yun said. Total sales of existing single-family homes and condominiums in the U.S. rose 5.3 percent on an annual basis in the first quarter to a seasonally adjusted annual rate of 4.57 million. “This is the highest first-quarter sales pace since 2007. With strong market fundamentals, total home sales this year should rise 7 to 10 percent,” Yun said. Regionally, sales rose the most in the Midwest, 11.7 percent year over year, to 1.02 million. The region posted a slight annual increase in median sale price, 0.8 percent, to $125,300.
In the Northeast, sales increased 6.6 percent to 590,000. The region’s median sales price dropped 3.2 percent from a year ago to $226,300.
The South saw a 4.1 percent jump in sales, to 1.76 million, and 1.2 percent rise in median price, to $143,600.
The West saw the smallest sales increase, 1.4 percent, to 1.2 million. Median price in the region fell slightly, 0.9 percent, to $196,200. First-time buyers accounted for a third of sales nationwide in the first quarter, a slight year-over-year increase. Cash buyers, mostly investors, made up 32 percent of sales last quarter, while investors made up 22 percent. Of 146 metro areas, 74 saw median sales prices increase year over year in the first quarter, compared to only 29 in the fourth quarter. Of the 20 metro areas to see the highest year-over-year jumps in sales prices in the first quarter, five were in Florida. Cape Coral-Fort Myers, Fla., saw the biggest price jump, 28.1 percent, to $117,600.
Nonetheless, half of the 20 metros were in the Midwest, with Grand Rapids, Mich., posting the biggest increase in that region, 19 percent, to $96,500.
Among the top 20 metros with the sharpest annual price decreases, eight were in the Northeast, five were in the South, four were in the Midwest, and three were in the West.
Kingston, N.Y., saw the biggest decline, 22 percent, to $156,800, followed by Bridgeport-Stamford-Norwalk, Conn., down 18 percent to $334,000. While only four of the 20 metros that saw the biggest price increases had median sales prices above the national median in the first quarter, eight among those with the sharpest declines had medians above the national level.
With today’s report, NAR also released a new metro-by-metro analysis on the qualifying incomes to purchase a median-priced existing single-family home, assuming 5, 10 or 20 percent down payments and a mortgage interest rate of 4 percent with 25 percent of gross income devoted to mortgage principal and interest. Nationally, median family income was $61,000 in the first quarter, NAR reported. At the national median home price, a buyer making a 5 percent down payment would need a $34,700 income; that drops to $32,900 and $29,300, respectively, for those making 10 or 20 percent down payments, the association said. “Qualifying incomes are well below median incomes in most of the country, which means homebuyers generally can stay well within their means,” Yun said. “For example, a buyer in Indianapolis making a 10 percent down payment would need an annual income of $24,004 to purchase a median-priced home, while in Seattle it would be $55,300. For now, buyers are facing an extraordinarily advantageous situation if they can obtain a mortgage.”
Real Estate @ a Glance: May 2012 Edition
Here is the most recent information on the California and San Diego housing markets. For specific information on your neighborhood or a market analysis on your home, please send me an email or call me at 619-325-4192.
April :: CALIFORNIA ASSOCIATION OF REALTORS®
• Existing Home Sales 10% higher than March and 11% higher than one year ago
• Median Home Price 5.7% higher than March and 4.7% higher than one year ago
• Median Days on the Market = 49.3 Days: 7.2% lower than March and 7.3% lower than one year ago
• Housing Affordability Index = 56% ~ Up 1% since March and 3.0% higher than one year ago
April :: SAN DIEGO ASSOCIATION OF REALTORS®
Attached Homes
- Total Sales Volume: $256,547,254 = 3.615% higher than March and 0.73% lower than one year ago
- Average Sales Price: $276,750 = down 1.862% since March and the 1.733% higher than one year ago
- Average days on the Market: 91 Days = 5.208% lower than March and 7.143% lower than one year ago
Detached Homes
- Total Sales Volume: $984,638,184 = 8.26% higher than March and 10.429% higher than one year ago
- Average Sales Price: $485,761 = 1.05% higher than March and 2.864% lower than one year ago
- Average days on the Market: 84 Days = 3.448% lower than March and 1.205% higher than one year ago
San Diego County market statistics provided by CAR and SDAR.
For up-to-date information on the market, please contact me.
How Much of Your Income Goes to Housing?
Information courtesy of the California Association of REALTORS (CAR)
A new study by the Center for Housing Policy, entitled Housing Landscape 2012, found that the share of working households paying more than half their income for housing rose significantly between 2008 and 2010 for both renters and owners. This annual report explored the latest Census date on housing costs and income, including housing cost burden data from the 50 largest U.S. metropolitan ares, all 50 states, and the district of Columbia. The report found that nearly one in four working households in the U. S. spends more than half of total income on housing.
The percentage grew between 2008 and 2010, largely due to a drop in incomes and a rise in the price of rent. According to report author Laura Williams, rents rose due to increased demand for rental housing, which has exceeded supply.
California was the state with the highest share of working households with a severe housing cost burden (34 percent) in 2010.
Among the 50 largest metropolitan areas, three of the top five most burdened areas were in California. In the Los Angeles-Long Beach-Santa Ana area, 38 percent or working households had a severe housing cost burden; the San Diego-Carlsbad-San Marcos area had 37 percent of households in this boat, and the Riverside-San Bernadino-Ontario area came in at 35 percent.
For information on how owning can cost you less than renting please contact me!
Foreclosures Tale of Two Legal Systems
By Inman News®
Trends in serious delinquencies and foreclosures continue to be a tale of two legal systems.
According to loan data aggregator CoreLogic, in the 24 states where courts handle the foreclosure process, 13 saw foreclosure inventory rates increase in March when compared to a year ago. In contrast, the percentage of homes in the foreclosure process during March posted annual increases in only three of 26 nonjudicial foreclosure states.
The picture was much the same for serious delinquencies of 90 days or more — 15 of 24 judicial foreclosure states saw an annual increase in serious delinquency rates during March, compared with just five of 26 nonjudicial foreclosure states.
“Nonjudicial foreclosure markets like Nevada, Arizona and California are experiencing significant improvements in their shares of delinquent borrowers,” said CoreLogic Chief Economist Mark Fleming in a statement. “Some judicial foreclosure states are also improving, like Florida, but not to the extent of nonjudicial markets.”
Nine out of 10 states with the highest foreclosure inventory rates were judicial foreclosure states: Florida (12.1 percent), New Jersey (6.6 percent), Illinois (5.4 percent), New York (4.9 percent), Connecticut (4.5 percent), Maine (4.4 percent), Hawaii (4.3 percent), South Carolina (3.8 percent) and Indiana (3.5 percent).
The exception was Nevada, a nonjudicial foreclosure state with a 4.9 percent foreclosure inventory rate, the fourth highest in the nation. The three nonjudicial foreclosure states that saw increases in foreclosure inventory rates were Oregon (up 0.4 percent, to 3.1 percent), Mississippi (up 0.2 percent, to 2.8 percent), and North Carolina (up 0.4 percent, to 2.6 percent). Washington D.C., also saw foreclosure inventory rates climb by 0.2 percent, to 2.5 percent.
Nationally, CoreLogic said about 1.4 million homes, or 3.4 percent of all homes with a mortgage, were in some stage of the foreclosure process during March, compared with 1.5 million homes at the same time a year ago.
CoreLogic counted 852,591 completed foreclosures in the 12 months ending in March, and 3.5 million since the start of the financial crisis in September 2008.
Lenders don’t repossess or sell every home that begins the foreclosure process — some borrowers are able to get current on their loans again, or negotiate a short sale or loan modification.
Loan servicers grew their inventory of “real estate owned” or REO properties more slowly, as the pace of REO sales picked up. CoreLogic calculated the “distressed clearing ratio” — REO sales divided by completed foreclosures — as 0.81 in March, up from 0.76 in February. The higher the distressed clearing ratio, the faster the pace of REO sales relative to completed foreclosures.
Compared to a year ago, the number of completed foreclosures has slowed,” said CoreLogic CEO Anand Nallathambi. “Since the foreclosure inventory is also coming down, this suggests that loan modifications, short sales, deeds-in-lieu are increasingly being used as an alternative to foreclosures to clear distressed assets in our communities,” as some industry observers had predicted would happen in the aftermath of the robo-signing settlement.
Among the top 100 metro markets by population, 35 showed an increase in the year-over-year foreclosure inventory rate in March 2012.
Foreclosure inventory rates for the United States and San Diego, March 2012
Foreclosure inventory Yr-over-yr change Completed foreclosures last 12 mos.
United States
3.40% -0.10% 852,591
San Diego-Carlsbad-San Marcos, Calif.
2.00% -0.40% 9,405
Source: CoreLogic, March 2012.
For more information on San Diego’s inventory, please contact me!
Light For Less With Tech-Savy Twists on Tradition
Thanks SDG&E for these money-saving tips!
There is an easy way to save money every time you flip a light switch. Simply replace traditional incandescent light bulbs with energy-efficient ones.
The incandescent bulb converts only 10% of the electricity it uses to visible light. The other 90% is wasted as heat. Thanks to advances in lighting technologies, you will find many more efficient alternatives stocked by local retailers. Here are some tips:
- Get discounts automatically when you buy ENERGY STAR (R) qualified lighting products that are displayed with signs or stickers showing SDG&E’s sponsorship or “promotional price”.
- A new “Lighting Facts” label now required on packages for most bulbs make it easier to compare brightness, yearly energy cost, expected life and other facts.
- Compact fluorescent lamps (CFLs) produce the same amount of light using about 75% less energy than comparable incandescent bulbs, and they last up to 10 times longer. CFLs typically save enough energy to offset their somewhat higher purchase price within the first year of use and last more than five years.
- Light-emitting diodes (LEDs) can save you 75% or more of the energy needed by incandescent light bulbs, and are remarkably durable, lasting up to 25 years. LEDs produce a focused, directional light and stay cool- a great choice for task, accent and landscape lighting.
For information on recycling light bulbs or for more energy saving tips don’t hesitate to contact me!
Real Estate @ a Glance: April 2012 Edition
Here is the most recent information on the California and San Diego housing markets. For specific information on your neighborhood or a market analysis on your home, please send me an email or call me at 619-325-4192.
March 2012 :: CALIFORNIA ASSOCIATION OF REALTORS®
- Existing Home Sales 4.5% lower than February and 2.3% lower than one year ago
- Median Home Price 9.2% higher than February and 1.6% higher than one year ago
- Median Days on the Market = 53.1 Days: 9.8% lower than February and 6.8% lower than one year ago
- Housing Affordability Index = 55%: Up 3.0% since February and 5.0% higher than one year ago
March 2012 :: SAN DIEGO ASSOCIATION OF REALTORS®
Attached Homes
- Total Sales Volume 33.122% higher than February and 1.653% lower than one year ago
- Median Sales Price 10.83% higher than February and 4.76% higher than one year ago
- Average days on the Market = 96 Days: 4.95% lower than February and 2.041% lower than one year ago
Detached Homes
- Total Sales Volume 32.853% higher than February and 2.853% higher than one year ago
- Median Sales Price 1.23% higher than February and 5.33% lower than one year ago
- Average days on the Market = 87 Days: 3.333% lower than February and 3.571% higher than one year ago
For up-to-date information on the market, please contact me.
10 Home Maintenance Tips for Spring
Thanks Lowe’s and Paul Bianchina for these helpful tips!
The sun is peeking out and the plants are starting to blossom, so it must be about time for spring chores again. Here’s my annual spring checklist of important issues to tend to around the house.
1. Roofing repairs: If you suspect winter storms may have damaged your roof, it needs to be inspected. (If you’re not comfortable with the height or steepness of your roof, hire a licensed roofing contractor for the inspection.) Look for missing or loose shingles, including ridge-cap shingles.
Examine the condition of the flashings around chimneys, flue pipes, vent caps, and anyplace where the roof and walls intersect. Look for overhanging trees that could damage the roof in a wind storm, as well as buildups of leaves and other debris.
If you have roof damage in a number of areas, or if older shingles makes patching impractical, consider having the entire roof redone. Also, remember that if the shingles have been damaged by wind or by impact from falling tree limbs, the damage may be covered by your homeowners insurance.
2. Check gutters and downspouts: Look for areas where the fasteners may have pulled loose, and for any sags in the gutter run. Also, check for water stains that may indicate joints that have worked loose and are leaking. Clean leaves and debris to be ready for spring and summer rains.
3. Fences and gates: Fence posts are especially susceptible to groundwater saturation, and will loosen up and tilt if the soil around them gets soaked too deeply. Check fence posts in various areas by wiggling them to see how solidly embedded they are.
If any are loose, wait until the surrounding soil has dried out, then excavate around the bottom of the posts and pour additional concrete to stabilize them. Replace any posts that have rotted.
4. Clear yard debris: Inspect landscaping for damage, especially trees. If you see any cracked, leaning or otherwise dangerous conditions with any of your trees, have a licensed, insured tree company inspect and trim or remove them as needed.
Clean up leaves, needles, small limbs and other material that has accumulated. Do any spring pruning that’s necessary. Remove and dispose of all dead plant material so it won’t become a fire hazard as it dries.
5. Fans and air conditioners: Clean and check the operation of cooling fans, air conditioners and whole-house fans. Shut the power to the fan, remove the cover and wash with mild soapy water, then clean out dust from inside the fan with a shop vacuum — do not operate the fan with the cover removed.
Check outdoor central air conditioning units for damage or debris buildup, and clean or replace any filters. Check the roof or wall caps where the fan ducts terminate to make sure they are undamaged and well-sealed. Check dampers for smooth operation.
6. Check and adjust sprinklers: Run each set of in-ground sprinklers through a cycle, and watch how and where the water is hitting. Adjust or replace any sprinklers that are hitting your siding, washing out loose soil areas, spraying over foundation vents, or in any other way wetting areas on and around your house that shouldn’t be getting wet.
7. Check vent blocks and faucet covers: As soon as you’re comfortable that the danger of winter freezing is over, remove foundation vent blocks or open vent covers to allow air circulation in the crawl space.
While removing the vent covers, check the grade level around the foundation vents. Winter weather can move soil and create buildups or grade problems that will allow groundwater to drain through the vents into the crawl space, so re-grade as necessary. Remove outdoor faucet covers. Turn on the water supply to outdoor faucets if it’s been shut off.
8. Prepare yard tools: Replace broken or damaged handles, and clean and condition metal parts. Tighten fittings and fasteners, sharpen cutting tools and mower blades, and service engines and belts in lawn mowers and other power equipment.
9. Change furnace filters: Now is the time to replace furnace filters that have become choked with dust from the winter heating season. This is especially important if you have central air conditioning, or if you utilize your heating system’s fan to circulate air during the summer.
10. Check smoke detectors: Daylight Savings Time snuck up early again this year, and that’s usually the semi-annual reminder to check your smoke alarms. So if you haven’t already done it, now’s the time. Replace the batteries, clean the covers, and test the detector’s operation before it’s too late.
If you have gas-fired appliances in the house, add a carbon monoxide detector as well (or check the operation of your existing one). CO2 detectors are inexpensive and easy to install, and are available at most home centers and other retailers of electrical parts and supplies.
If you need referrals to reputable vendors for any of your home projects or want a new home to fix up, contact me!
