Home values are expected to rise

 
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Homeownership Rate Falls in Second Quarter
The national homeowner vacancy rate in the second quarter was 1.9 percent, 0.2 percentage

points lower than the second quarter 2012 rate and 0.2 percentage points lower than the rate

last quarter, according to the Dept. of Commerce’s Census Bureau.

The homeownership rate of 65 percent was 0.5 percentage points lower than the second

quarter 2012 rate of 65.5 percent and virtually unchanged from the 65 percent rate last quarter.

For the second quarter 2013, the homeowner vacancy rate was higher in the South

(2.1 percent) than in the West (1.6 percent), but not statistically different from the Northeast

(1.8 percent) or the Midwest (1.9 percent). The Northeast and Midwest were not statistically

different from each other. The homeowner vacancy rate in the West was lower than a year ago,

while the rates in the Northeast, Midwest, and South were not statistically different from the

second quarter 2012 rates.

Approximately 86.4 percent of the housing units in the United States in the second quarter

2013 were occupied and 13.6 percent were vacant. Owner-occupied housing units made

up 56.2 percent of total housing units, while renter-occupied units made up 30.2 percent

of the inventory in the second quarter 2013. Vacant year-round units comprised

10.3 percent of total housing units, while 3.3 percent were for seasonal use. More info

Survey Finds School Boundaries Play Major Role in Home-Buying Decisions
Realtor.com this week announced the results of its Back to School survey, which looks at the

impact school boundaries have on buyers looking to purchase a home within two years. Realtor.com®

found that three out of five home buyers surveyed said school boundaries will impact their home purchasing

decision.A majority of home buyers who said school boundaries will have an impact are willing to

pay 1 percent to 10 percent above budget to live within school boundaries.

Of those surveyed, 91 percent said school boundaries are “important” or “somewhat important,”

while only 7.43 percent said school boundaries are “unimportant” or “very unimportant.”

Home buyers who said school boundaries will have an impact on their decision also indicated

that they would give up several amenities to live within school boundaries of choice:

  • 62 percent would do without  a pool or spa
  • 51 percent would give up accessibility to shopping
  • 44 percent would pass on a bonus room
  • 42 percent would offer up nearby parks and trails

More info

 

Consumer Confidence Falls Slightly in June
The Conference Board Consumer Confidence Index, which had improved in June, pulled back slightly in July. The Index now stands at 80.3 (1985=100), down from 82.1 in June. The Present Situation Index increased to 73.6 from 68.7. The Expectations Index decreased to 84.7 from 91.1 last month.

Consumers’ appraisal of current conditions continues to improve. Those stating business conditions are “good” increased to 20.9 percent from 19.4 percent, while those stating business conditions are “bad” decreased to 24.5     percent from 24.9 percent. Consumers’ assessment of the job market also was more positive, with those claiming jobs are “plentiful” increasing to 12.2 percent from 11.3 percent, and those claiming jobs are “hard to get”     declining to 35.5 percent from 37.1 percent.
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Spring Selling Season Hottest Since 2004
The national housing recovery kicked into high gear in the second quarter as home value appreciation spread and accelerated after a relatively slow start to the year, according to the second quarter Zillow Real Estate Market Reports. The U.S. Zillow Home Value Index rose to $161,100 as of the end of the second quarter, up 5.8 percent year-over-year and 2.4 percent from the first quarter, the largest annual gain since August 2006 and largest quarterly gain since the fourth quarter of 2005.

National home values rose just 0.25 percent during the first quarter. The 2.4 percent quarterly rise in the second quarter was the sixth straight quarter of appreciation and represents the largest second quarter gain since 2004.

Home values are expected to rise another 5 percent over the next 12 months, according to the Zillow Home Value Forecast. Of the 30 largest metro areas, 29 are expected to show home value appreciation in the next year, with only the New York metro expected to fall (-0.8 percent). Metros expected to see the highest appreciation rates through June 2014 include Sacramento, 18.9 percent; Riverside, Calif., 16.6 percent; and Phoenix, 11 percent. But as home values continue to rise along with mortgage interest rates, and different kinds of buyers and sellers enter and exit the market, the landscape will change.
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Fast FactsCalif. median home price: June 2013:

  • California: $428,510
  • Calif. highest median home price by region/county June 2013: San Mateo, $1,001,000
  • Calif. lowest median home price by region/county June 2013: De Norte, $132,590

Calif. Pending Home Sales Index: June 2013: Decreased 6.4 percent from a revised 122.1 in May to 114.3 in     June

Calif. Traditional Housing     Affordability Index: First Quarter 2013: 44     percent (Source: C.A.R.)

Mortgage rates: Week ending 7/25/2013 (Source: Freddie Mac)

  • 30-yr. fixed: 4.31% fees/points: 0.8%
  • 15-yr. fixed: 3.39% fees/points: 0.8%
  • 1-yr. adjustable: 2.65% Fees/points: 0.4%

 

 

 

 

 

 

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