Home Price Appreciation Up Significantly
Price Increases Moderating
You’ll love the private, gated courtyard entry into this Gorgeous single level home. Immaculate and meticulously maintained inside & out.
Awesome solar pool & spa with cascading water flowing into the pool.
Enjoy entertainer patio areas, large living room & family room with dual faced fireplace and built-in cabinets.
Open kitchen with granite counter tops, large center island plus breakfast area. Formal dining room.
The master suite is 20 X 16 with fireplace & walk in closets.
Walk to Poway High School & Lake Poway. No Mello Roos
Currently offered at $1,225,000
Please call me today if you or someone you know is interested in seeing the home.
As if you didn’t know, lack of housing inventory has been cited over and over (and over) as hampering homebuying. To a lesser extent, consumer confidence has been a drag both on homebuying and the economy. This week there were green shoots of hope for both.
A National Association of Realtors (NAR), survey broke down homebuying trends by generation. Gen X, currently aged 37 to 51, (NAR appears to have “disappeared” the quite small Gen Y into this cohort), never gets much attention, but they presented some of the survey’s more interesting findings. They appear to have delayed homebuying (usually of a “move-up” house) longer than Millennials and are the generation to have most often lost a distressed home or been locked out of the market by debt or being underwater in their existing home. They also carry the most student debt, $35K against $25K for Millennials.
NAR says that generation has now recovered enough equity to sell and buy another home. Xers accounted for 28% of sales last year, up 2 points from the previous year. Millennials had a 35% share, but there are a lot more of them.
NAR chief economist Lawrence Yun says that Gen Xers who bought last year had been in their existing homes a median of 10 years; many of them buying when “home values were on the precipice of declining.” He said more of the generation are expected to sell this year and that should help ease the inventory shortages in much of the country. That these are likely to be mostly starter homes is even better news.
Fannie Mae’s National Housing Survey has tracked homeowner and renter attitudes toward homeownership and the economy since 2011. The survey has 100 questions, six of which are distilled into a single number, the Home Purchase Sentiment Index (HPSI).
The February survey blew the roof off. The HPSI jumped 5.6 points to 88.3, an all-time high. Five of the six components were higher than the previous month, and three set records of their own.
Asked if it was a good time to buy a house, 66% said yes, 26% said no, a net of 40%, 11 points higher than in January. A net of 22% think it is a good time to sell, a survey high.
Financial confidence is also on the rise. The net of those unconcerned about losing their job jumped 9 points to 78% while a net of 19% reported their household income higher over the last 12 months. Both were survey highs.
Doug Duncan, Fannie Mae’s chief economist said, “Millennials showed especially strong increases in job confidence and income gains, a necessary precursor for increased housing demand from first-time homebuyers.”
Lots of housing news next week–including a resumption of the Fed Watch–will they or won’t they raise rates?
Tune-in next week to find out.
Sales of new homes in January were every bit as good as those released last week for existing homes. There were an estimated 41,000 newly built homes sold during the month compared to 38,000 in December. On a seasonally adjusted annual basis that works out to a pace of 555,000 units, up 3.7% from December and 5.5% higher than in January 2016. Sales of existing homes had risen by 3.2% for the month and 3.8% year over year so the two reports together bode well for a strong spring market.
If we could, we would just leave it there. Our sense of duty, however, compels us to also mention pending home sales. They sort of took the bloom off the rose. The National Association of Realtors’ (NARs’) Pending Home Sales Index, a leading indicator of existing home sales for the upcoming two months, slipped 2.8% to the lowest level since last January and the December number was revised down to half its previously announced 1.6% gain. Because? Inventories of course.
The West is also looking a little weak and worrisome. Existing sales were up a strong 6.6% for the month although they had fallen in both November and December, but new home sales, strong in the other three regions, were down more than 4% and pending sales plunged by nearly 10% and were fractionally lower than a year earlier. Hopefully, it is just a blip.
That home prices are continuing to escalate was confirmed by the last two of the December reports. Case Shiller’s National Index was up 5.8% year-over-year compared to a 5.6% annual gain in November. Black Knight Financial Services said the annual increase of 5.7% in December tied with November for the largest of the year. Again, no question about what is behind this appreciation.
Inventories are now news beyond the real estate industry. This week the Washington Post headlined the difficulties millennials are having with competition and shortages now that they have finally decided to enter the housing market. Among the stories about failed offers and multiple bids, the Post does offer some encouraging words from the director of Harvard’s Joint Center for Housing. Christopher E. Herbert reminds us that Baby Boomers entered the market in the early 1980s, faced with a double-digit recession and double-digit interest rates. “But then homeownership rates and housing prices boomed in the 1990s. That group started out on a slower trajectory, then caught up. When you’re young you have some time to make up for a slower start.”
Please call or email if you have any questions.
Just Sold this gorgeous 3 bedroom model with loft office/study. Ideal location with privacy & garden views.
Open kitchen with granite counter center island off family room with fireplace & lots of kitchen cabinets. Spacious living room with dining adjacent to it.
Spacious master suite with walk-in closet, dual vanity & views.
Sought after gated community with multi-million dollar clubhouse with 2 pools, BBQ area, lighted tennis courts, exercise room, banquet room and more! No Mello Roos. Poway School District.
I can get the same results for you! If you are having thoughts of buying or selling (sell early in 2017) then call me now!
Don’t forget that new loan limits kicked in on January 1. The increases were not huge–conventional limits went from $417,000 to $424,100 with limits in “high cost areas” rising proportionally–but maybe up just enough to make your purchase or refi more doable.
Gorgeous 3rd floor corner unit with views. Freshly painted interior including baseboards & crown molding. New upgraded carpeting throughout. Private patio balcony off living room.
Stainless steel appliances, breakfast nook, granite counters throughout kitchen & plenty of cabinets. Interior laundry room & open living room.
Spacious master bedroom & 2nd bedroom. Two full baths with tubs.
One car garage at entry level & parking space close by. Close to pool & BBQ area.
Sold for all Cash at $410,000!
I can get the same results for you! If you are interested in seeing this home, please contact me today!
We will not publish during the two weeks leading up to Christmas and New Years. We wish all of you a wonderful holiday season!