JCL Realty - News

Hottest housing markets for 2014

February 25, 2014

From Oakland, Calif., to Memphis, Tenn., these major metro areas are expected to see the biggest increase in home prices this year, according to CoreLogic Case-Shiller's latest home price forecast.

  • Median home price : $545,000
  • Forecast gain through Sept. 2014: 9.3%

This blue-collar city and its posh surrounding suburbs benefit from neighboring San Francisco's spillover. "[Oakland] is more affordable than the rest of the Bay Area, especially at the moderate- and low-end," said Leslie Appleton-Young, chief economist for the California Association of Realtors.
Oakland-area home prices have come roaring back since the housing bust, jumping 26% for the 12 months through last September, according to CoreLogic Case-Shiller.
Home prices: Your local forecast -- 384 markets tracked
With the region's high-paying tech industry going strong, deep-pocketed workers continue to flock to the area helping to push the median home price to a whopping $545,000.
CoreLogic expects home prices to climbanother 9.3% by the end of September. Yet this hot market is expected to eventually cool. Over the next five years, CoreLogic expects home price growth to slow to 4.5% annually.

Institutional investors expected to exit market in coming years

February 14, 2014

Large-scale investors have helped prop up the housing market during the last few years by snapping up homes that otherwise might languish on the market.
But over the next few years, they are likely to unload most of the homes they've purchased, and that will have a meaningful impact on the housing market, according to a majority of forecasters polled by Zillow in its latest Home Price Expectations Survey.
When asked about the impact of a sell-off by institutional investors, 79 of respondents to Zillow's survey who expressed an opinion on the matter said it would have a "significant" or "somewhat significant" impact on the market. Fifty-seven percent of that group also projected that institutional investors would sell the bulk of their portfolios within the next three to five years.
To Zillow Chief Economist Stan Humphries, that could be a boon to everyday buyers now that the housing market appears to have stabilized.
"Buyers entering the market in the next few months will not be competing with cash-rich investors like they were last year, which should be some small solace given the higher prices and mortgage rates that they will encounter," he said. "The gradual decline of investor activity should be viewed as another sign of the market slowly returning to normal, and I agree with the panel's expectations that there will not be a rush for the exit by institutional investors."
Source: Zillow Feb 12, 2014

Sellers Upbeat in the Golden State

February 6, 2014

California was one of the hardest-hit states in the housing and foreclosure crisis, but an increase in seller optimism has the state's housing market seeing better days ahead.
With rising home prices and still historically low interest rates, sellers are much more upbeat about repurchasing a home than they've been in a long time there, according to the newly released 2013 California Home Sellers Survey by the California Association of REALTORS®. Sixty-nine percent of sellers purchased another home after selling, up from 47 percent in 2012 and 12 percent in 2011.
The top reason for selling in 2013 was a desire to trade up. In 2012, the top reason for selling was due to financial difficulties.
Sellers are having an easier time selling their homes, too. Ninety-eight percent of the sellers surveyed said they had received multiple offers on their home, with the average number of offers being 5.9 compared to 3.1 in 2012. Forty-five percent of sellers said they received offers on their home above asking price.
"Much-improved housing market conditions in the last year have given sellers more confidence to own a home rather than to rent one," says CAR President Kevin Brown. "With sellers being more positive about the future of home prices, the vast majority of sellers who are currently renting plan to buy again in the future. In fact, 70 percent of sellers who are currently renting said they would purchase another home, up from 22 percent in 2012."
Source: "Upbeat California Sellers See Prices Rising Further, Plan to Buy Again," Mortgage News Daily (Jan. 16, 2014)

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