The Year Everyone Was Wrong (Again) About Home Prices

The great thing about predictions is that, after some time has passed, it’s possible to see which ones were right, and which ones weren’t. For several years, economists and housing analysts have predicted a housing bottom, but few forecasts at the beginning of 2012 foresaw the magnitude of the rebound that the housing sector enjoyed…

2012 home sales up over 2011

39,760 homes sales closed escrow in December 2012. This is up 6% from November 2012, and up 5% from one year earlier. A total of 447,573 homes sales closed in 2012. This is up 8% from 2011. Home sales rose in the latter half of 2012, mainly due to speculator/cash activity. In turn, 2013 will likely see…

To buy in 2013: Homebuyer sentiment on the rebound

Consumer sentiment remains high in the fourth quarter (4Q) of 2012. Surveyed consumers are slightly less optimistic about future economic conditions in 4Q 2012 than in the prior quarter, according to Chapman University’s California Consumer Sentiment Survey. However, planned spending on big-ticket purchases was at its highest since before the recession.   Chart updated 1/15/2013…

Boomers Embrace Urban Living

A burgeoning trend for Baby Boomers: re-locating to cities. These retirees are, in part, abandoning their suburban homes to become caregivers for their grandchildren and be closer to their own children. However, instead of sacrificing privacy by moving in with their children, they are re-locating to their own apartments or condos nearby. In a role reversal,…

Renting and owning across counties

Homeownership rates declined across the state in 2011, according to the most recent U.S. Census data. Riverside had the highest rate of homeownership at 59%, despite its swift decline since the height of the boom. San Francisco County had the lowest homeownership rate, at 36%. Statewide, 55% of residents owned their home in 2011. As…

Press Release: Buyer purchasing power index remains high

The buyer purchasing power index (BPI) decreased slightly to 7.7 in December 2012. This represents a 7.7% increase in mortgage funds available to today’s buyers over one year earlier. December’s BPI was down from 8.66 in December 2011. All figures remain positive for short-term upward price movement. The BPI will drop to zero by mid-2013 and remain there throughout…

High anxiety over the Fed’s exit

The Federal Reserve (the Fed) has promised to continue its expansionary efforts of pumping more money into the economy well into 2015. The Fed has vowed to continue buying mortgage-backed bonds (MBBs) to the tune of $40 billion a month. At this rate, their balance sheet will tip the scales at $4 trillion by the end of 2013. Many…

Home Prices Poised for Growth in 2013

In stark contrast to this time last year, the housing market is chugging into 2013 with a head of steam. Home-listing prices were up 5.1% nationally in December on a year-over-year basis, according to data released Thursday by real-estate listings and data company Trulia. Out of the 100 major metro markets covered by the report,…

Are buyers ready to buy?

How many buyer-occupants do you now represent who are pre-qualified in writing by a lender based on a verified source of funds? 0-1; (41%, 35 Votes) 2-3; (36%, 31 Votes) 6 or more (13%, 11 Votes) 4-5; or (10%, 8 Votes) Total Voters: 85   The housing market, as with all open markets, is driven by demand – so why…