Happy New Year!
I wanted to share with you the latest information of the South Bay new home sales from 2016. Also, see what 2017-2018 holds for new home pipeline.
Happy New Year!
CoreLogic reported in late December that home buying saw the fastest November in more than four years even though the month’s sales totaled 7.5% below 1988 month average. The surge in sales increased what buyers paid. Our relatively robust local job market created more job opportunities along with pay hikes nationwide. Fewer absentee buyers were reported. Mortgage financing was not used in 21% of the deals.
For full report, click HERE!
After falling to the lowest level in 50 years, the U.S. homeownership rate bounced up slightly in the third quarter of this year. Corelogic reports that the amount of equity homeowners now have has doubled in the last five years sales.
For the full article & market report, click HERE!
“Existing-home sales rebounded strongly in September and were propelled by sales from first-time buyers reaching a 34 percent share, which is a high not seen in over four years, according to the National Association of Realtors®. All major regions saw an increase in closings last month, and distressed sales fell to a new low of 4 percent of the market.”
Click HERE for complete article, plus inside market info!
This South Bay Beach Cities market video shows new construction sales, new home pipeline, and a year over year comparison from the early 2000s.
Market insight is the essential ingredient in all of the services I offer. I answer the question “How is the market?” By monitoring real estate trends and statistics, I’m able to help you make critical decisions…all while giving you valuable information on an ever changing housing market!
Federal Reserve officials have reduced estimates of how much they expect to raise short-term interest rates in 2016 and beyond. All signs are leaning toward two increases this year compared to four in 2015. *
You will see from the reports below our Beach Cities are showing strong increases in pending sales as well as active listings.
Should your plans include real estate purchase and sales, please call or email with questions – and as always, thanks for your referrals! The Sotheby’s International Realty® network provides access to luxury real estate and homes for sale worldwide.
Click HERE for more info!
*Source: Wall Street Journal March 16 2016
We are seeing the first quarter of 2016 coming to a relatively strong close with expectations of a strong Spring Housing Market as noted in articles below due to a decrease in unemployment along with a lower supply of homes on the market. At the current pace, there is a four month supply of homes on the market – lower than the norms of six – seven months on the market in past months.
See More: http://goo.gl/oFXDvp
Wishing you and your families a wonderful Easter Holiday.
Should your plans include real estate purchase and sales, please call or email with questions – and as always, thanks for your referrals!
The Sotheby’s International Realty® network provides access to luxury real estate and homes for sale worldwide.
Interest rates on mortgages moved slightly lower this week ahead of the Thanksgiving holiday. Meanwhile, markets are anticipating a move from the Federal Reserve at next month’s policy-setting meeting. One of the uncertainties that the housing market will face for the rest of the year and the upcoming 2016 is timing and size of the federal funds rate increase. With the economy picking up steam this year and the unemployment rate falling, a rate hike was widely anticipated last month. Instead the Federal Reserve has decided to hold off on raising interest rates. The Fed’s move was not a complete suprise, but there were many that belieed that the economy has improved enough to compel the Fed to raise rates.
The likelihood of a December rate hike received a bump when, according to Reuters, San Francisco Fed President John Williams said Saturday that as long as economic data continue to be favorable, “there’s a strong case to be made in December to raise rates.” The Fed’s goal is to have stable inflation and full unemployment. Inflation has not been a problem so far. But the labor market is a concern despite the fact that the unemployment rate is approaching the Fed’s goal of full employment. Recent signs of global economic slowdown is the primary reason for not implementing a rate hike.
There is a strong possibility that the Federal Reserve will begin the rate normalization in December. The words “next meeting” were in a sentence about determining whether or not it will be appropriate to raise rates when the Fed meets again. These two words were surrounded by decidedly tempered economic rationale that said we are not where we need to be and may not be there anytime soon, but the odds makers interpreted “next meeting” as rate hike ready. In fact, Bloomberg reported that traders had increased the odds for a December rate hike form 37% to 48% following the release of the Fed statement. The odds makers at Goldman Sachs see a 60% chance for a Fed rate hike at the December meeting.
Here’s the thing; if you are buying a house or planning on buying a house, if refinancing your current mortgage is in your near term plans, these Fed rate hike odds makers are playing with your money. Not because rates are higher, but because market makers are trying to guess when they will be, even when they are wrong. Clearly the markets and market participants want and need interest rates to begin to ascend to real world norms. If the normalization process takes place gradually throughout the next two years, modestly higher interest rates should not present much of a direct challenge for our real estate market which remains strong although signs of cooling trend are begining to appear.
The pace of sales continue to grow faster than the number of homes on the market. Our coastal cities are showing double digit increases in sales since the beginning of the year. Even though our U.S. economy as a whole appears to have gotten off to a slow start in the first quarter consumer confidence doesn’t appear to be wavering significantly and employment shows signs of improvement. Economic reports continue to point to home sales finishing the year at their highest pace since 2006 although accelerating price growth and rising mortgage rates could have the potential to slow sales.
Please enjoy. Should your plans include real estate purchase and sales, please call or email with questions – and as always, thanks for your referrals!
Ryan Hardin, my Realty Times May 2015
RISMedia The Leader in Real Estate Information May 2015
CLICK HERE for full graphs and stats.