Prices Rising (and Expected to Go Higher)

Today on HousingWire, Christina Mlyinski reports that “California home prices increased by the most in 33 years as a result of strong sales growth in higher-priced markets and continued housing supply shortage, pushing up median home prices in May.” It’s lead to whispers about another housing bubble, but as Megan Hopkins writes, not so fast. “Standard & Poor’s Ratings Services states that, although double-digit gains are ultimately unsustainable, we may not have reached bubble status quite yet.”

Home price expectations

“Home price appreciation can be attributed to a number of factors, including historically low rates, property purchases by investors who are renting homes out and a shortage in home inventory… S&P states that U.S. home prices are relatively low compared to historical values… Additionally, housing remains undervalued about 8% based on the price-to-income ratio, which takes into account the median sales price of a home relative to median annual incomes…”

“Overall, S&P expects that the current pace of home prices gains will not last for long; however, it’s too soon to call this a bubble. In fact, as home values are still below their pre-recession peaks, home prices could continue to rise throughout the year.”

For help selling or buying your home in this active market, contact the people who have a successful track record and a long list of satisfied clients: the friendly, local professionals at Tracy Do Real Estate.

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As Prices Rise, Here’s One Reason Why

Real-Estate-Investing-On-the-Rise-articleInlineThe LA Times Alejandro Lazo reports that U.S. home prices climbed 12.1% in April. Low inventory remains an impetus, and the NY Times’ Nathaniel Popper points out that Wall Street is playing a not-so-minor role. “Large investment firms have spent billions of dollars over the last year buying homes… The influx has been so great, and the resulting price gains so big, that ordinary buyers are feeling squeezed out.”

It’s worth noting that this investor-backed buying spree has not been particularly prevalent in the greater LA area, where the number of foreclosures was small by national standards. However, we’re still feeling the effects. Popper continues, “While these investors have not touched many healthy real estate markets, they are among the biggest buyers in struggling areas of the country where housing prices have been increasing the fastest. Those gains, in turn, have been at the leading edge of rising home prices nationwide.”

For more information, and advice on how to stay ahead of this competitive market, contact Tracy Do Real Estate.

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Prices ⇡ Again

la-fi-case-shiller-20130528-gHousing remains hot. In today’s LA Times, Alejandro Lazo reports that a “tight housing supply and strong demand continued to fuel a robust market recovery in March, with the Standard & Poor’s/Case-Shiller index of 20 U.S. cities recording a 10.9% year-over-year increase (see chart, left). That was the strongest increase since April 2006.”

Over at HousingWire, Christina Mlynski talked to David Blitzer of the S&P Dow Jones. His take is that “other housing market data reported in recent weeks confirm these strong trends… At the same time, the larger than usual share of multifamily housing, a large number of homes still in some stage of foreclosure and buying-to-rent by investors suggest that the housing recovery is not complete.”

The upshot? This surging market has yet to run its course – and might not for some time. For help staying ahead of things, contact Tracy Do Real Estate. Our sellers get top-shelf representation, with maximum exposure for your property and ace transaction management. For our buyers, we’re having tremendous success connecting people to the beautiful homes they want and deserve.  Don’t wait for the market to price you out or pass you by. Get in business with the very best: the friendly, experienced professionals at Tracy Do Real Estate.

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Home Appraisals No Longer Derailing Sales

From Les Christie at CNN Money… “Consider this one more sign that the housing market is heating up: Appraisers are putting higher values on homes again, allowing for more deals to go through.” Read the full story here.

 

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Prices Surged Last Month

From Alejandro Lazo at the LA Times: “Homes sold at the fastest clip for (April) in seven years, as regular buyers and investors snapped up more than 21,000homes in the six-county region, real estate firm DataQuick reported Tuesday. That was a 4.1% increase from March and a 9.5% jump from a year earlier.” Full story here.

 

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Listen: LA Housing Market Tightens Up

Inventory is down, heralding the return of bidding wars, all-cash offers… it can tough to be a buyer these days. On KPCC’s “Take Two” this morning, host Tess Vigeland spoke about the housing market with Chris Thornberg of Beacon Economics. Says Thornberg, “We knew this was coming. I just don’t think anyone expected it to be quite as dramatic as it has turned out to be.” Their 7-minute conversation is worth your time. Find it here, and be sure to click the “listen now” button on the left.

 

There are several takeaways here, among them the fact that in a tight marketplace like this you need a competitive edge. Put yourself in business with the people who will work hardest for you: the experienced, approachable and always professional team at Tracy Do Real Estate.

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Cost to Rent in LA County Heading ⇡

From our friend Eve Bachrach at Curbed: “A new report predicts that LA County will see average rents jump 4.5 percent this year, a record increase and more than double last year’s. The brokerage firm Marcus & Millichap blames low inventory and a rebounding job market.” Her full story can be found here.

 

For some people, renting makes sense. For others, their desire to buy is hampered either by finances, a lack of “affordable” homes — or a lack of homes in general in this tight LA real estate market. If any of those sound familiar, we encourage you to connect with us at Tracy Do Real Estate. Your search for a “rent alternative” gets a lot easier when you’ve got professionals working for you; we do this all day, every day. Whether it’s exploring emerging neighborhoods, alerting you to under-the-radar “pocket” listings, or connecting you with lenders and loan programs that suit your needs, we’re here to help. There’s no obligation, no up-front costs. Just advice and guidance from friendly, knowledgeable people who are very good at listening.

Rents keep rising. Yet the cost of taking out a mortgage loan is near an all-time low. Let’s kick your home search into high gear. Call, text or email anytime to Tracy Do Real Estate.

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FYI Quick Read: “Smarter” Smart Growth

Kaid Benfield is the director of the Sustainable Communities program at the Natural Resources Defense Council and co-founder of the Smart Growth America coalition. An authority on cities and sprawl, he’s written an article that’s worth a read. You might not agree with all these ideas, but they’re certainly worth considering as our urbanized LA region plots its course ahead.

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March Home Sales = Highest in 3 Years

Per Jim Puzzanghera of the LA Times: “New contracts signed for home sales rose 1.5% last month to the highest level in nearly three years, though limited supply is causing the market to level off.” Full story here.

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