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Home Prices In California Are Expected To Stall in 2015.

Home Prices in California are not going to be on the rise next year.

Home Prices in California Expected to Stall in 2015

Home Prices in California Expected to Stall in 2015

Why should you list your home this fall verses next year if you are interested in selling? This is why!

According to the California Association of Realtors (C.A.R.) newly released 2015 California Housing Market Forecast, home price increases in California are expected to stall in 2015.

C.A.R. says that because of more available homes on the market for sale, California’s housing market will see fewer investors and a return to traditional home buyers as home sales rise modestly, causing home prices flatten out in 2015.
“Stringent underwriting guidelines and double-digit home price increases over the past two years have significantly impacted housing affordability in California, forcing some buyers to delay their home purchase,” said C.A.R. President Kevin Brown.  “However, next year, home price gains will slow, allowing would-be buyers who have been saving for a down payment to be in a better financial position to make a home purchase.”

“Moreover, prospective buyers should know that it’s a misperception that a 20 percent down payment is always required to buy a home.  There are numerous programs available that allow consumers to buy a home with less down payment, including FHA loans, which lets buyers put down as little as 3.5 percent,” continued Brown.

C.A.R.’s forecast projects growth in the U.S. Gross Domestic Product of 3 percent in 2015, after a projected gain of 2.2 percent in 2014.  With nonfarm job growth of 2.2 percent in California, the state’s unemployment rate should decrease to 5.8 percent in 2015 from 6.2 percent in 2014 and 7.4 percent in 2013.

The average for 30-year fixed mortgage interest rates will rise only slightly to 4.5 percent but will still remain at historically low levels.

The California median home price is forecast to increase 5.2 percent to $478,700 in 2015, following a projected 11.8 percent increase in 2014 to $455,000.  This is the slowest rate of price appreciation in four years.

WPJ News | 2015 CALIFORNIA HOUSING FORECAST“With the U.S. economy expected to grow more robustly than it has in the past five years and housing inventory continuing to improve, California housing sales and prices will see a modest upward trend in 2015,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “While the Fed will likely end its quantitative easing program by the end of this year, it has had minimal impact on interest rates, which should only inch up slightly and remain low throughout 2015.  This should help moderate the decline in housing affordability we saw occur over the past two years.”

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Residential Price Appreciation Eases in 19 of top 20 U.S. Housing Markets.

Price appreciation eases in housing market in most U.S. Markets.

Residential Price Appreciation Eases in 19 of top 20 U.S. Housing Markets.

Residential Price Appreciation Eases in 19 of top 20 U.S. Housing Markets.

 

According to the July 2014 S&P/Case-Shiller Home Price Indices, there was a significant slowdown in U.S. home price appreciation. Nineteen of the 20 cities saw lower annual returns in July. Las Vegas, Miami and San Francisco were the only cities to report double-digit annual gains. Cleveland’s rate remained unchanged at +0.9% for the 12 months ending July 2014.

In July, the 10-City and 20-City Composites increased 0.6% and the National Index 0.5%. Although all cities but one gained on a monthly basis, 17 saw smaller increases in July as compared to last month. Although New York saw a lower gain this month, it was the only city where prices rose over one percent. San Francisco posted its largest decline of 0.4% since February 2012.

Home-Price-Index-Chart-August-2014-1.jpg

The chart above depicts the annual returns of the U.S. National, the 10-City Composite and the 20-City Composite Home Price Indices. The S&P/Case-Shiller U.S. National Home Price Index, which covers all nine U.S. census divisions, recorded a 5.6% annual gain in July 2014. The 10- and 20-City Composites posted year-over-year increases of 6.7%.

The 10- and 20-City Composites gained 6.7% annually with prices nationally rising at a slower pace of 5.6%. Las Vegas, one of the most depressed housing markets in the recession, is still leading the cities with 12.8% year-over-year. Phoenix, the first city to see double-digit gains back in 2012, posted its lowest annual return of 5.7% since February 2012.

“While the year-over-year figures are trending downward, home prices are still rising month-to-month although at a slower rate than what we are used to seeing over the past couple of years. The National Index rose 0.5%, its seventh consecutive increase. At the bottom was San Francisco with its first decline this year and the only city in the red. New York tended to underperform over the past few years but it was on top for the last two months.” – See more at: http://www.worldpropertychannel.com

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California Home Sales Declined In August, Reversing Two Months Of Increases.

California home sales in August declined 9.3% from August in 2013.

California Home Sales Declined In August, Reversing Two Months Of Increases.

California Home Sales Declined In August, Reversing Two Months Of Increases.

The California Association of Realtors (C.A.R.) reported this week California home sales declined in August, reversing two months of increases, but the median home price did rise from the previous month. Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 394,280 units in August. This past month marked the 10th straight month that sales were below the 400,000 level and the 13th straight month that sales have declined on a year-over-year basis.  Sales in August decreased 1.2 percent from 398,940 in July and were down 9.3 percent from 434,910 in August 2013.

The median price of an existing, single-family detached California home rose 3.3 percent from July’s median price of $464,750 to $480,280 in August and up 8.9 percent from the revised $441,010 recorded in August 2013.  The August 2014 price was the highest observed since 2007.  The statewide median home price has increased year over year for the previous 30 months, marking more than two full years of consecutive year-over-year price increases. The median sales price is the point at which half of homes sold for more and half sold for less; it is influenced by the types of homes selling as well as a general change in values. “California’s housing market continues to be bifurcated both geographically and demographically, with the San Francisco Bay Area and high-end housing markets outperforming other regions and market segments,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.  “A strong job market and barriers to building new housing are creating an imbalance between supply and demand in some housing markets. Buyers who are not impacted by affordability issues are fueling sales in the high-end market, which is putting upward pressure on home prices.” Other key facts from C.A.R.’s August 2014 resale housing report include:

  • Housing inventory inched up higher in August, with the available supply of existing, single-family detached homes for sale increasing from 3.8 months in August to 4 months in August. The index was a revised 3 months in August 2013.  The index indicates the number of months needed to sell the supply of homes on the market at the current sales rate.  A six- to seven-month supply is considered typical in a normal market.
  • The median number of days it took to sell a single-family home lengthened in August, up from 35.7 days in July to 39.2 days in August and up from a revised 29.3 days in August 2013.
  • Mortgage rates were down for the second straight month in August, with the 30-year, fixed-mortgage interest rate averaging 4.12 percent, down from 4.13 percent in July and down from 4.46 percent in August 2013, according to Freddie Mac.  Adjustable-mortgage interest rates in August were also down, averaging 2.37 percent, down from 2.39 percent in July and down from 2.65 percent in August 2013.

– See more at: http://www.worldpropertychannel.com

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  Homebuilder Confidence in U.S. at Record High Since 2005

 U.S. homebuilder confidence rose for a fourth consecutive month in

September.

Home Builder Confidence in U.S. At Record High Since 2005.

Home Builder Confidence in U.S. At Record High Since 2005.

The NAHB reported today that U.S. homebuilder confidence rose for a fourth consecutive month in September to a level of 59 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). This latest four-point gain brings the index to its highest reading since November of 2005.”Since early summer, builders in many markets across the nation have been reporting that buyer interest and traffic have picked up, which is a positive sign that the housing market is moving in the right direction,” said NAHB Chairman Kevin Kelly, a home builder and developer from Wilmington, Del.David Crowe”While a firming job market is helping to unleash pent-up demand for new homes and contributing to a gradual, upward trend in builder confidence, we are still not seeing much activity from first-time home buyers,” said NAHB Chief Economist David Crowe. “Other factors impeding the pace of the housing recovery include persistently tight credit conditions for consumers and rising costs for materials, lots and labore to 58. –

See more at: http://www.worldpropertychannel.com

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Woman  Home Buyers Are The Source In Emerging Countries.

Studies find Woman Home Buyers Drive the house-hunting process in most emerging markets worldwide.

Woman Are The Main House Purchasers In Emerging Countries.

Woman Are The Main House Purchasers In Emerging Countries.

Women  home buyers are the majority buyers in emerging countries including the Philippines, Bangladesh and Mexico are dispelling the myth that men drive the house-hunting process in these regions.

Lamudi’s research that shows the majority of homebuyers in these countries are women. The figures are based on an analysis of search behavior on the Lamudi website, which is active in 28 countries in the emerging markets.

The analysis reveals that more than 60 percent of homebuyers in Mexico are female, while the majority of house-hunters in the Philippines are women. In Bangladesh couples search for property together, but the final decision is most often made by the female.

Lamudi’s Global Co-Founder and Managing Director, Paul Philipp Hermann, said: “These findings dispel some of the stereotypes around who the typical buyer is in emerging markets, where men are often seen as dominating the house-hunting process. Women in these countries are becoming more active in choosing where their family settles down.”

See more at: http://www.worldpropertychannel.com

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