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Inventories Hover at Historic Lows

by Ashlie DuCros

 

While buyer demand is picking up, many consumers increasingly are finding fewer choices in housing these days. The number of homes for sale continues to remain at record lows with the nationwide inventory of for-sale single-family homes, condos, townhomes, and co-ops is about 19 percent below inventory levels from a year ago, Realtor.com reports in its analysis of July housing data of 146 markets.

“Low inventories, combined with rising list prices and lower times on market, are positive signs that the overall market is in a stabilization mode,” Realtor.com reports.

Median asking prices were 2.63 percent above list prices in July, and the median age of the housing inventory has fallen about 9 percent in that time period, Realtor.com reports.

California cities have seen some of the largest drops in inventory levels in the past year, as well as some of the largest price increases.

13 Metros With Largest Inventory Drops

The following metro areas have seen the largest drops in inventories of for-sale homes in the past year (July 2012 compared to July 2011):

1. Oakland, Calif.: -59.30 percent

2. Fresno, Calif.: -47.81 percent

3. Bakersfield, Calif: -44.71 percent

4. Seattle-Bellevue-Everett, Wash.: -42.23 percent

5. San Jose, Calif.: -41.76 percent

6. San Francisco, Calif.: -40.26 percent

7. Stockton-Lodi, Calif.: -40.24 percent

8. Riverside-San Bernardino, Calif.: -40.03 percent

9. Atlanta, Ga.: -38.27 percent

10. Sacramento, Calif: -36.43 percent

11. Santa Barbara-Santa Maria-Lompoc, Calif.: -34.89 percent

12. San Diego, Calif.: -34.55 percent

13. Phoenix-Mesa, Ariz.: -34.37 percent

By Melissa Dittmann Tracey, REALTOR® Magazine Daily News

 

 

 

Ashlie DuCros and Associates

Prudential California Realty

Direct: 714-743-9778

ADuCroshomes@gmail.com

www.AshlieDuCros.com

 

 

 

Here is the recent market trends for Kerrigan Ranch, Manor Homes, and San Antonio Estates in Yorba Linda:

July 2012

Homes for sale : There are total of 6 homes on the market which are all normal, standard sales. They average $347.30 per sqft. and 173 average days on the market in the month of July.

Homes in escrow: There are currently 2 homes in escrow right now. Both are short sale homes with $240.29 per sqft., with average of 46 days on the market.

Closed homes in the month of July: There were total of 3 homes closed/SOLD  in Kerrigan Ranch community. all of these homes were regular, standard sales. No distressed sales were sold. They averaged $328.19 per sqft, and average days on the market was 58.

Do you have any questions about Kerrigan Ranch, Manor homes, and San Antonio homes in Yorba Linda? Please contact Ashlie DuCros at 714-743-9778, www.AshlieDuCros.com

Curious about your Yorba Linda home's value? Go to http://www.YorbaLindahomevalue.com to find out recent home value today!

4 Strong Reasons to Buy a Home Now

by Ashlie DuCros

4 Strong Reasons to buy a home Now!

“It’s hard to argue against buying a house now, assuming you can get a loan,” writes John Waggoner, a columnist with USA Today. Sure, Waggoner says that getting a credit check for approval of a mortgage can be a “only slightly less intrusive than a CIA background check,” but for those who are able to qualify, a lot of analysts say that now can be a good time to purchase a home.

1. The price is right. The median single-family home price hit its lowest in more than a decade when it reached $154,600 in January, according to the National Association of REALTORS®. That was the lowest since October 2001. During the height of the housing market in July 2006, the median home price for a single-family home was $230,900.

2. It’s cheaper to buy than rent. In nearly every major metro market, it is cheaper to buy a home than rent. Rents have been on the rise the last few years and are predicted to continue to rise. Meanwhile, home affordability is at record highs, which means that buying a home is more within reach to the median income family.

3. Inventories of for-sale homes are shrinking. Ned Davis Research estimates that excess inventories of homes to be eliminated by the end of next year. “When excess supply dries up, people start building more new houses, which has the virtuous effect of reducing the unemployment rate and increasing the economy generally,” according to the USA Today article.

4. Mortgage rates are at record lows. Mortgage rates have hovered near record lows for weeks, which has helped pushing housing affordability higher. For example, the average 30-year fixed-rate mortgage, which is the most popular among home buyers, is 3.59 percent, according to Freddie Mac—just above its record low set on July 26 of 3.49 percent average. “It’s conceivable that at some point in the next 30 years, your interest rate would be less than the rate of inflation,” writes Waggoner for USA Today.

Source: “If You Can Pull it Off, a House is a Smart Investment,” USA Today (Aug. 9, 2012)

For more information, please contact Ashlie DuCros at 714-743-9778, or go to www.AshlieDuCros.com

 

 

 

August 2012 Orange County Home Stats

by Ashlie DuCros

August 2012 Stats in Orange County

Check out these numbers of homes for sale vs. in escrow... In most cities, the homes in escrow is greater than the homes for sale.  Low inventory in most markets... Thinking of selling? Now is the time to put your home on the market! For more information, go to www.AshlieDuCros.com

August 2012 Orange County Home Stats:
Homes For Sale VS Homes in Escrow
  For Sale In Escrow
Anaheim 192 576
Anaheim Hills 93 157
Brea 42 86
Fullerton 154 265
Irvine 390 495
Laguna Beach 225 76
Newport Coast 100 48
Orange 178 320
Tustin 77 181
Yorba Linda 175 202

 

Housing Isn't a Horror Show Anymore-by Wall Street Journal

by Ashlie DuCros
Associated Press
Home builders have benefited from a drop in the number of homes listed for sale.

Housing is finally contributing to economic growth in a sustained way.

Residential investment, which includes home building, renovations and brokers’ commissions, added 0.22 of a percentage point to gross domestic product during the second quarter, when the economy grew at an annual rate of 1.5%, the Commerce Department said Friday. Housing added 0.43 of a percentage point in the first quarter, when the economy grew by 2%.

While housing usually plays a leading role lifting the economy in a recovery, that didn’t happen during the current modest expansion because of the housing bust, which left millions of Americans saddled with mortgage debt that exceeded the falling values of their homes. Meanwhile, an excess of foreclosures and heavy overbuilding during the housing bubble forced home builders to pare back construction to its lowest levels since World War II.

Those construction cutbacks shaved as much as a full percentage point from GDP in 2007 and 2008, and housing didn’t provide any oomph to economic growth in 2010 and 2011. In the two years following most postwar recessions, housing has added around 0.5 percentage points, according to an analysis by the Federal Reserve Bank of St. Louis.

This year, housing should add around 0.3 of a percentage point to GDP, according to estimates by Moody’s Analytics, before adding 0.5 of a percentage point in 2013 and 0.8 in 2014.

Home builders have benefited from a sharp fall in the overall number of homes listed for sale and a modest uptick in demand. As a result, “we’ve seen a few instances where people are once again lining up to buy new homes because they want quality—higher ceilings, wireless homes, custom finishes,” says Ivy Zelman, chief executive of research firm Zelman & Associates.

Housing analysts like Ms. Zelman say sentiment towards housing has also turned positive because rents are rising and investors are buying up homes, stabilizing prices. “That all creates a sense of urgency that wasn’t there before,” she says. Housing starts in June hit their highest level in four years, and while new home sales were down by 8.4% in June from May, they still were up 15.1% from last year’s dismally low level.

But even if new home construction and renovation is picking up, housing will still drag on the economy in an important way: households have high mortgage debt and many may feel “house poor” and therefore are not inclined to spend very much. Home values are down by $7 trillion from their 2006 peak, and more than 11 million Americans owe about $700 billion more than their homes are worth.

During the last economic recovery in 2003, homeowners were able to spend easily by tapping housing equity to invest in small businesses and pay for everything from flat screen TVs to college tuitions. Today, by contrast, Americans feel poorer in part because the largest asset for many families has fallen in value by one third.

Moody’s Analytics expects that the negative “wealth effect” from housing—where people spend money based on the value of their home—subtracted around 0.25 of a percentage point from GDP last year and that it will shave 0.05 percentage point from GDP this year. In 2002 and 2003, by contrast, it added between 0.2 and 0.3 of a percentage point.

Low levels of household equity will also drag on home sales for years. Many households who are underwater won’t be able to sell their homes unless the bank is willing to approve a short sale, where it agrees to sell at a loss. But millions of other homeowners have too little equity to sell their house and make a down payment on their next house. That will take time to turn around, and until then, the housing market will rely heavily on investors who are scouring for bargains and first-time home-buyers looking for starter homes.

** For more information, of if you have any questions regarding real estate, please contact us at Aducroshomes@gmail.com or 714-743-9778**

www.AshlieDuCro.com

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Ashlie DuCros & Associates
Coldwell Banker Previews Global Luxury
21580 Yorba Linda Blvd.
Yorba Linda CA 92887
714-743-9778
Fax: 714-849-5489