From CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
Sales of new single-family houses rose 9.6 percent in January to a rate of 468,000 from December’s rate of 427,000, according to the U.S. Census Bureau and HUD. This is 2.2 percent above the January 2013 estimate of 458,000.
The median sales price of new houses sold in January was $260,100; the average sales price was $322,800. The seasonally adjusted estimate of new houses for sale at the end of January was 184,000, representing a supply of 4.7 months at the current sales rate.
Buying a Home Still Beats Renting in 100 Major Markets
A study by Trulia found that despite rising home prices, today’s low mortgage rates have kept homeownership from becoming more expensive than renting both nationally and in each of the 100 largest housing markets. According to the study, mortgage rates would need to rise to 10.6 percent for renting to become cheaper than buying nationally – and rates haven’t been that high since 1989. However, some markets might tip in favor of renting this year if prices continue to outpace rents and if mortgage rates rise. Given current home prices and rents, Honolulu would tip at 5 percent, followed by San Jose and San Francisco.
The study looks at homes for sale and for rent and compares the average cost of renting and owning for all homes on the market within a defined metro area, and factors in all cost components, including transaction costs, taxes, and opportunity costs.
Buyers during the housing bubble made big bets that home prices would continue to rise forever – and lost. With asking prices up 11.4 percent year-over-year nationally in January 2014, today’s buyers could fall into that same trap. So to help people consider the worst-case scenario, Trulia calculated the cost of renting vs. buying a home with the assumption that prices will appreciate or depreciate as they did during each local housing market’s worst seven-year period over the last 20 years. With this assumption, if the worst does happen, renting would become cheaper than buying in 37 of the 100 largest U.S. metros. For example, buying would become 79 percent more expensive than renting in San Jose if prices fell 2.8 percent annually. This is because even small differences in price appreciation can have a big effect on the future sales price of the home.
Calif. median home price: January 2014:
- California: $410,990
- Calif. highest median home price by region/county January 2014: Marin, $960,000
- Calif. lowest median home price by region/county January 2014:
Del Norte, $130,610
Calif. Pending Home Sales Index:
December 2013: Decreased 25.2 percent from 92 in November to 68.8 in December.
Calif. Traditional Housing Affordability Index: Fourth Quarter 2013: 32 percent (Source: C.A.R.)
Mortgage rates: Week ending 2/20/2014 (Source: Freddie Mac)
- 30-yr. fixed: 4.37% fees/points: 0.7%
- 15-yr. fixed: 3.39% fees/points: 0.7%
- 1-yr. adjustable: 2.52% Fees/points: 0.4%
Selling a Home
For most families, their home is their largest financial asset, and deciding to sell it is a big decision that involves a lot of preparation and work. When you’re ready to sell it’s important to have an experienced real estate professional handle the details involved in successfully selling your home for top dollar.
As an experienced Realtor® I have helped numerous clients successfully sell their home. I know how to handle every aspect of the sales process – from strategically marketing and displaying your home, to making sure everything is signed, sealed and delivered by the closing date.
Providing you with a comprehensive, high-quality listing service is the top priority for me.
When you decide to sell your home, please contact me. And let’s get started!