Sales are way up. According the NAR's chief economist Lawrence Yun, the number of existing homes sales nationally for the month of November 2012 was a seasonally adjusted 5.04 million unit pace.?Up from 5.9% from last month and higher by 14.5% compared to last year's existing home sales.
Inventory is way down. According to Yun, the number of homes available for sale nationally in November 2012 is 2.03 million , down 3.8% from the previous month, and down 23% from last year.? At the current sales pace it would take 4.8 months supply to exhaust the national inventory.
Inventory in Santa Clara County is even lower. According to MLS data, November 2012 inventory was at only 1 month supply. This means that if we were to freeze the market right now and not allow any more listings, we would sell out all the homes?in 30 days!
Home prices have gone up. According to Yun, the national? median existing-home prices for all housing types was $180,600 in November 2012. This was up 10.1% from a year ago.
On the local front, the median sales price for SFH in Santa Clara County in November 2012 was $675,000. At the?beginning of the year in January, the median sales price was $485,000 according to data from MLS Listings, Inc. Our local SFH median sales price has increased 39% so far this year.
Our home values?did not go up 39% this year, so why does the median sales price show such a huge gain in the sales prices?? I believe that the sales in the more expensive areas like Los Altos Hills, Palo Alto, Saratoga, and Los Gatos have definitely skewed the numbers higher. In fact, this is a national trend.? According to?the latest national housing?statistics,?the number of transactions of homes priced over $750,000 has increased approximately 50% compared to last year. This was a great year to buy a more expensive home by using cheap money. Jumbo rates were at a historic all-time low.
It's interesting to study who the buyers are in this market, and also look at what they are buying. Recent national data shows that distressed property sales?made up?22% of all sales transactions (12% were Foreclosures and Short sales made up 10%), all cash buyers were 30%, investors made up 19% of all transactions, first time buyers represented 30% of all transactions. Last year first time buyers made up 35%. This may reveal that on a national scale, first time buyers are participating less in this recovery market compared to last year.
What about next year? Here's what NAR's economist Lawrence Yun said on December 20, 2012 in a Washington DC press conference. He said,?"2012 clearly shows a breakout in terms of both the home sales as well as home prices and we think that this trend will continue into next year. Because the factors that are driving improvement in the housing sector will continue to remain: job creation, household formation, low mortgage rates...?We expect continuing housing improvement going into 2013."
I believe that 2013 should be a?good year to buy a home. Interest rates may increase a bit next year and the price appreciation may not be?as extraordinary as 2012, but?it should be a good year to buy.?I think that it's safe to say that the local Santa Clara County real estate market will recover faster than than the national housing market. The numbers prove that. We have a stronger demand and a lower supply. This only places pressure squarely on home price appreciation. Our rents have increased close to 20% the past couple years and they will go up next year until new construction catches up. This is a great time to own property!
Source: http://sanjoserealestateagent.blogspot.com/2012/12/december-2012-update-and-outlook-for.html
pope joan paul pierce strawberry festival knicks strikeforce tate vs rousey ciaa the monkees
No comments:
Post a Comment