Are you happy that prices continue to rise?
In today’s real estate market, prices continue to rise as inventories continue to fall. Over the past several weeks there have been a number of articles from various sources, including my blog on that subject with good cause. In a recent survey by Realtor.com of 146 markets nationwide inventories of for-sale single family homes, condos, townhomes and co-ops were down more than 19% in June. Of the 146 markets surveyed only 3 did not see a fall in inventory levels year over year, Denver, Philadelphia and Shreveport-Bossier City, LA.
Combined with this there was a 2.68% year over year increase in medium national list price with some markets posting over 30% gains in the medium list price. The 3 highest metro areas with the biggest gains were:
- Santa Barbara, California 33.14%
- Phoenix-Mesa. Arizona 32.19%
- San Fransisco, California 15.44%
When you also look at the metro areas with the biggest drop in inventory levels, with 8 out of the top 12 being in California, it is easy to see why the continued upward pressure on the market is continuing. The 5 highest metro areas with the biggest drops are;
- Oakland, CA -57.92%
- Fresno, CA -49.10%
- Bakersfield, CA – 47.37%
- Seattle, WA -42.85%
- San Jose, CA – 41.98%
There is also a secondary factor that is driving home prices. Homeowners who are underwater aren’t bringing their homes to market. In the past while many homeowners have simply not been able to hold onto the real estate, those that have, are not selling their homes, and this too is creating a tightening of the supply of properties available to buyers as homeowners with negative equity ride out the storm in the hope of recapturing some of the lost equity.
So while prices continue to rise & inventories continue to fall, we can ask ourselves the question “is the housing crisis over?” I don’t think anyone knows for sure but in a recent survey of 44 forecasters by The Wall Street Journal, 41 said their opinion is that the bottom has been reached and with the number of vacant homes at its lowest levels since 2006 it may be hard to argue otherwise.
If you would like an analysis of your current real estate portfolio please contact me at cristal@montecito-estate.com