Showing posts with label homes. Show all posts
Showing posts with label homes. Show all posts

Thursday, March 16, 2017

Which Homes Have Appreciated the Most?

Which Homes Have Appreciated the Most?


Which Homes Have Appreciated the Most? - Home values have risen dramatically over the last twelve months. The latest Existing Home Sales Report from the National Association of Realtors puts the annual increase in the median existing-home price at 7.1%. CoreLogic, in their most recent Home Price Insights Report, reveals that national home prices have increased by 6.9% year-over-year.
The CoreLogic report broke down appreciation even further into four different price categories:
  1. Lower Priced Homes: priced at 75% or less of the median
  2. Low-to-Middle Priced Homes: priced between 75-100% of the median
  3. Middle-to-Moderate Priced Homes: priced between 100-125% of the median
  4. High Price Homes: priced greater than 125% of the median
Here is how each category did in 2016:
Which Homes Have Appreciated the Most? | MyKCM

Bottom Line

The lower priced homes (which are more in demand) appreciated at greater rates than the homes at the upper ends of the spectrum.

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Wednesday, March 15, 2017

A Tale of Two Markets: Inventory Mismatch Paints a More Detailed Picture

A Tale of Two Markets: Inventory Mismatch Paints a More Detailed Picture


A Tale of Two Markets: Inventory Mismatch Paints a More Detailed Picture - The inventory of existing homes for sale in today’s market was recently reported to be at a 3.6-month supply according to the National Association of Realtors latest Existing Home Sales Report. Inventory is now 7.1% lower than this time last year, marking the 20th consecutive month of year-over-year drops.
Historically, inventory must reach a 6-month supply for a normal market where home prices appreciate with inflation. Anything less than a 6-month supply is a sellers’ market, where the demand for houses outpaces supply and prices go up.
As you can see from the chart below, the United States has been in a sellers’ market since August 2012, but last month’s numbers reached a new low.
A Tale of Two Markets: Inventory Mismatch Paints a More Detailed Picture | MyKCM
Recently Trulia revealed that not only is there a shortage of homes on the market in general, but the homes that are available for sale are not meeting the needs of the buyers that are searching.
Homes are generally bucketed into three groups by price range: starter, trade-up, and premium.
Trulia’s market mismatch score measures the search interest of buyers against the category of homes that are available on the market. For example: “if 60% of buyers are searching for starter homes but only 40% of listings are starter homes, [the] market mismatch score for starter homes would be 20.”
The results of their latest analysis are detailed in the chart below.
A Tale of Two Markets: Inventory Mismatch Paints a More Detailed Picture | MyKCM
Nationally, buyers are searching for starter and trade-up homes and are coming up short with the listings available, leading to a highly competitive seller’s market in these categories. Ninety-two of the top 100 metros have a shortage in trade-up inventory.
Premium homebuyers have the best chance of less competition and a surplus of listings in their price range with an 11-point surplus, leading to more of a buyer’s market.
“It leaves Americans who are in the market for a home increasingly chasing too fewer options in lower price ranges, and sellers of premium homes more likely to be left waiting longer for a buyer.”
 Lawrence YunNAR’s Chief Economist doesn’t see an end to this coming any time soon: 
“Competition is likely to heat up even more heading into the spring for house hunters looking for homes in the lower- and mid-market price range.”

Bottom Line

Real estate is local. If you are thinking about buying OR selling this spring, let’s get together to discuss the exact market conditions in your area.

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Tuesday, February 28, 2017

Where Are the Home Prices Heading in the Next 5 Years?

Where Are the Home Prices Heading in the Next 5 Years?



Where Are the Home Prices Heading in the Next 5 Years? - Today, many real estate conversations center on housing prices and where they may be headed. That is why we like the Home Price Expectation Survey.
Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts, and investment & market strategists about where they believe prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.

The results of their latest survey:

Home values will appreciate by 4.4% over the course of 2017, 3.4% in 2018, 2.8% in 2019, 2.7% in 2020, and 2.8% in 2021. That means the average annual appreciation will be 3.22% over the next 5 years.

The prediction for cumulative appreciation fell from 21.4% to 17.3% by 2021. The experts making up the most bearish quartile of the survey are projecting a cumulative appreciation of 6.3%.

Bottom Line

Individual opinions make headlines. We believe this survey is a fairer depiction of future values.

To See Your Home Value Click The Link Below

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Friday, January 13, 2017

Is The California Drought Over? Will The Drought Last? What Does This Mean For SoCal?

Is The California Drought Over? What Does this Mean for SoCal?

2017 Californias Drought epidemic has taken a big hit by Pacific storms this beginning year. Since December, a strong storm packed in with moisture has been pushing one storm after the other into the state. Rain and snow have been coming down to our communities and mountains, which has been causing some flooding, but with that, the storms have been adding a significant amount of water to soil, streams, and rivers, as well as a good amount of water freezing to make snow up in out mountains.
The Extreme drought situations that some areas of SoCal have been experiencing over the past years, is not as intense now as it was a year ago. a significant improvement has been showing in the northern part of the Golden State. Despite the relief in that area over the last month, a large portion of SoCal still remains in that dark shade of red on the map. Which indicates that much more water is still needed to improve the water shortage happening in our area.
Will It Last?
2016 did end on a good note in the matter of receiving rain, although it ended with more rain than snow given from the previous year. However, things turned around on the 3rd of January, which has been exceptional for both rain and snow. The Higher the Snow Water Content gets, the better things will look later on in the season. Which means that all that snow will take another strong hit to our drought situation.
As Of Now Where are We?
Speaking now on January 13th, 2017, all three of the river basins areas of the state have been improving with the Snow Water Content than in the end of December 2016. The Central and South Basins have been improving significantly due to the storm coming down south. Cold Temps. have also helped increase snowfall cover the overall volume of snowpack in the state. As mentioned in the Weather Network, here is a statistic given by them, "The snow pack volume has improved considerably over the past week, and as of January 10th snow water equivalent values look very promising. All three, the Northern Sierra/Trinity (111%), Central Sierra (130%) and Southern Sierra (171%) are well above the normal values for this date and rapidly adding percentage values towards achieving the April 1st average, a date used to mark the start of the runoff season in the California Sierra Nevada's."
So What Should We Do?
So this is what we do know, We go out and take our families to enjoy this gift of snow we have been waiting for, for the past 5 years. Go out in your rain boots and jump in the huge puddles being formed, go out and take your motocross dirtbike and ride those muddy ramps. Get yourself a pair of snowboots out and learn how to ski or snowboard. Rent that cabin your family has been asking about and enjoy a nice cup of chocolate by the fireplace. Build that snowman you haven't built since you were a kid, have that snowball fight with your kids, and just go out and enjoy this winter.