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Sluggish home sales activity continued throughout much of the Bay Area in October, though median sale prices rose on a year-over-year basis.

That’s the upshot of a new report from CoreLogic, the real estate information service. Sales of single-family homes, condos and townhouses in the nine-county region were down 5.4 percent from September 2016 and down 1.5 percent from October 2015. It was the third consecutive month of relatively flat year-over-year sales — up or down less than 2 percent.

The October data gives “a final look at activity unaffected by … the recent presidential election,” said Andrew LePage, research analyst with CoreLogic. Sales were “the lowest for any October in five years and were about 11 percent below the average October sales tally over the last 30 years. With buyers still struggling with affordability and inventory constraints, total San Francisco Bay Area home sales so far this year — through October — are down about 3 percent from the same period last year.”

The median price of a home in the Bay Area in October was $675,000, up 3.8 percent from the previous month and up 6.1 percent from October 2015 — but below the region’s all-time high of $710,000 set in June. Median prices rose 12 percent year-over-year to $512,500 in Contra Costa County; 7.5 percent to $1 million in San Mateo County; 6 percent to $835,000 in Santa Clara County; and 5.5 percent to $670,000 in Alameda County.

“What happens next in the housing market is far from clear,” LePage added. “The post-election jump in mortgage rates has encouraged some would-be homebuyers who’ve been ‘on the fence’ to buy sooner rather than later out of fear that rates will continue to rise. Others will hold off if they believe rates will eventually drift lower because investors overreacted to perceived inflationary pressures.

“A sustained increase in mortgage rates would generate a headwind for sales, especially in markets where affordability is already stressed or economic growth is weak.”

Article source: http://www.santacruzsentinel.com/article/NE/20161130/BUSINESS/161139980

A new report by a national real estate listing website predicts Sacramento will be a top market in the nation to buy a home in 2017.

Realtor.com Chief Economist Jonathan Smoke analyzed data from the nation’s 100 largest metropolitan markets. Smoke’s research shows as unemployment rates drop in those markets, consumer confidence is growing.

Cities topping the list are Phoenix, Los Angeles, and Boston — The Pacific West leads in growth with 11 cities on the top 20 list, five of those cities being in California.

The research estimates the Sacramento market median home price to be $420,000, to show a price growth a 7.18 percent, and a sales growth of 4.92 percent.

Like millions of Americans, Jason Banta, was effected by the 2008 real estate market crash. He was forced to short-sell his home. He has been renting a home in Roseville with his wife and two children ever since.

“So, now that the market’s rebounding, interest rates are so low, it’s just a great time to buy,” Banta said.

Nearly a decade later, with fallen interest rates and home prices on the rise, Banta is ready to buy another home.

“We’re starting to see homes to be investments once again,” Banta said.

Coldwell Banker real estate agent, Cara Ryan, said she is seeing two groups major groups of people looking to buy in the Sacramento market — Those from the San Francisco Bay Area and those like Banta who were negatively effected during the recession and are now looking to get back into the market.

“Clients from San Jose, Santa Cruz, saying that now’s the time that we want to come over here to get a little bit bigger house,” Ryan said.

However, demand for homes remains high because inventory is low, Ryan said.

“I do have buyers that are cautious, I do. But at the same time it’s been several years so it’s not something that happened last year and they’re still feeling it,” Ryan said.

George Jouganatos with Sacramento State University has worked as an economist for more than 25 years. He describes the growth in the market as a win, lose scenario.

“Demand for these properties, higher price of these properties,” Jouganatos said. “But the demand on our infrastructure cannot withstand it.”

The Sacramento region has hit its population cap, Jouganatos said. The area’s roads, schools, and other public infrastructure would need to expand to adequately serve the population.

People moving to the area will likely benefit, especially those coming from places like the San Francisco Bay with salaries above the Sacramento average who also recently sold their home in the Bay Market where real estate values are much higher.

The effect of these bay area buyers relocating to Sacramento could mean an increase in the cost of living such as rent and property prices, Jouganatos said.

If you are concerned about another potential real estate crisis, Jouganatos said we’re far away from that.
 

Copyright 2016 KXTV

Article source: http://www.abc10.com/news/local/sacramento/sacramento-projected-to-be-a-top-real-estate-market-in-2017/362244069

Anecdotally, real estate agents say some buyers have exited the market since the election because their loan got too expensive, they became unsure of their immigration status or just got cold feet. But so far, no data suggest that the election is having an impact on the local real estate market.

The median price paid for all homes sold in the nine-county Bay Area in October was $675,000, according to a CoreLogic report released Wednesday. That was up 3.8 percent from the previous month and up 6.1 percent year over year. The data include new and existing homes and condos that closed in October.

Year over year, the median price has risen for 55 consecutive months — since April 2012, CoreLogic said. October’s median, however, was 4.9 percent below the Bay Area’s all-time high of $710,000 set in June.

The number of Bay Area homes sold in October fell to 7,505, down 5.4 percent from the previous month and down 1.5 percent year over year. October sales were the lowest in five years and about 11 percent below the historical average for October.

Median prices can go up because of appreciation, a shift in the mix of homes sold toward higher-priced ones, or some combination thereof. In October, there was a definite shift to high-end homes in most parts of the Bay Area, said CoreLogic research analyst Andrew LePage.

This was especially true in San Francisco, where the median price jumped almost 20 percent since September to $1,225,000 in October. The city’s all-time high was $1.3 million, set in April.

Paragon Real Estate Group noted in an earlier report that a record number of single-family homes priced at $3 million and above hit the San Francisco Multiple Listing Service in September, which led to a surge in luxury home sales in October. Paragon’s data exclude most new construction.

CoreLogic, which includes new construction, said that 39 San Francisco homes and condos sold for $3 million or more in October. “That was the highest on record for any month,” LePage said.

It’s too soon to say what, if any, impact the election and rising interest rates are having on the market, because it typically takes a month or more for deals to close and get recorded with the county.

The average rate on a 30-year fixed-rate loan has risen to 4.13 percent, up from 3.62 percent on election day and a low of 3.34 percent in July, according to Mortgage News Daily. However, a year ago the rate was 4.05 percent, not much lower than today.

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Zach Griffin, a loan adviser with LaSalle Mortgage Services in Oakland’s Montclair neighborhood, said he has not had any loans fall through since the election. “I don’t know that rates have moved enough to change the affordability (for buyers). It has gotten some people off the fence, saying we better move now before rates go any higher.”

Dave Walsh, a branch manager with Alain Pinel Realtors in San Jose, said an agent in his office had one potential deal “go south” because of rising rates. The agent represented a buyer who was interested in a Los Gatos home listed at $1,268,000 that had been on the market more than 60 days.

“Our buyer offered $1,180,000 because that was all he could qualify for,” and it was nearer to fair market value, Walsh said. The buyer was willing to go up to $1,198,000, but the seller would not go below $1.2 million. “After three weeks of negotiations, the seller said no,” Walsh said.

However, the house remained unsold, and this week the seller’s agent asked if the buyer would resubmit his original offer of $1,180,000. But interest rates had risen a half point and the buyer could no longer qualify for the financing. “It should have come together, it didn’t come together, and now it can’t come together,” he said.

Jeanne Garde, co-owner and managing broker of Today Sotheby’s International Realty in San Carlos, said in an email: “We have not had any deals fall out because of interest rates. However, we have had one deal collapse because the buyer was unsure of what his immigration status might be in the future.” Her office also had a few buyers back out of the market because they were not sure what would happen to home prices after the election.

“We are starting to see sellers who will have substantial capital gains looking to close in 2017 hoping that the tax laws will be adjusted in their favor,” Garde added.

It’s impossible to tally how many deals have fallen through since the election, but there does not seem to be any increase in the number of listings that have been pulled off the market without selling.

MLSListings, which handles multiple listing services for the Peninsula and South Bay counties, said a total of 619 listings have been canceled, withdrawn or fallen through since the election. That compares with 685 in the same period last year. However, the number of new listings has also fallen since the election, to 687 versus 987 in the same period last year.

Other listing services show similar results. In San Francisco, 83 listings were withdrawn from the MLS since the election, compared with 102 last year. Likewise, only 234 new listings have hit the market since the election, down from 285 last year.

This time last year, the market was so hot that some people might have put their homes on the market just to see what they could get. Today, agents “are telling clients to be a little more cautious. Make sure you have your price right,” said Jay Cheng, a spokesman for the San Francisco Association of Realtors. People who list their homes “are convinced they really want to sell.” That makes for fewer listings, and fewer withdrawals.

In Alameda and Contra Costa counties, 194 listings have been canceled since the election, compared with 222 the same time last year. A total of 1,080 homes and condos were added to the market since the election, roughly equal to the 1,040 in the period last year, according to the Bay East Association of Realtors.

Article source: http://www.sfchronicle.com/business/networth/article/Bay-Area-home-sales-fall-but-prices-rise-10646005.php

A new report by a national real estate listing website predicts Sacramento will be a top market in the nation to buy a home in 2017.

Realtor.com Chief Economist Jonathan Smoke analyzed data from the nation’s 100 largest metropolitan markets. Smoke’s research shows as unemployment rates drop in those markets, consumer confidence is growing.

Cities topping the list are Phoenix, Los Angeles, and Boston — The Pacific West leads in growth with 11 cities on the top 20 list, five of those cities being in California.

The research estimates the Sacramento market median home price to be $420,000, to show a price growth a 7.18 percent, and a sales growth of 4.92 percent.

Like millions of Americans, Jason Banta, was effected by the 2008 real estate market crash. He was forced to short-sell his home. He has been renting a home in Roseville with his wife and two children ever since.

“So, now that the market’s rebounding, interest rates are so low, it’s just a great time to buy,” Banta said.

Nearly a decade later, with fallen interest rates and home prices on the rise, Banta is ready to buy another home.

“We’re starting to see homes to be investments once again,” Banta said.

Coldwell Banker real estate agent, Cara Ryan, said she is seeing two groups major groups of people looking to buy in the Sacramento market — Those from the San Francisco Bay Area and those like Banta who were negatively effected during the recession and are now looking to get back into the market.

“Clients from San Jose, Santa Cruz, saying that now’s the time that we want to come over here to get a little bit bigger house,” Ryan said.

However, demand for homes remains high because inventory is low, Ryan said.

“I do have buyers that are cautious, I do. But at the same time it’s been several years so it’s not something that happened last year and they’re still feeling it,” Ryan said.

George Jouganatos with Sacramento State University has worked as an economist for more than 25 years. He describes the growth in the market as a win, lose scenario.

“Demand for these properties, higher price of these properties,” Jouganatos said. “But the demand on our infrastructure cannot withstand it.”

The Sacramento region has hit its population cap, Jouganatos said. The area’s roads, schools, and other public infrastructure would need to expand to adequately serve the population.

People moving to the area will likely benefit, especially those coming from places like the San Francisco Bay with salaries above the Sacramento average who also recently sold their home in the Bay Market where real estate values are much higher.

The effect of these bay area buyers relocating to Sacramento could mean an increase in the cost of living such as rent and property prices, Jouganatos said.

If you are concerned about another potential real estate crisis, Jouganatos said we’re far away from that.
 

Copyright 2016 KXTV

Article source: http://www.abc10.com/news/local/sacramento/sacramento-projected-to-be-a-top-real-estate-market-in-2017/362244069

Anecdotally, real estate agents say some buyers have exited the market since the election because their loan got too expensive, they became unsure of their immigration status or just got cold feet. But so far, no data suggest that the election is having an impact on the local real estate market.

The median price paid for all homes sold in the nine-county Bay Area in October was $675,000, according to a CoreLogic report released Wednesday. That was up 3.8 percent from the previous month and up 6.1 percent year over year. The data include new and existing homes and condos that closed in October.

Year over year, the median price has risen for 55 consecutive months — since April 2012, CoreLogic said. October’s median, however, was 4.9 percent below the Bay Area’s all-time high of $710,000 set in June.

The number of Bay Area homes sold in October fell to 7,505, down 5.4 percent from the previous month and down 1.5 percent year over year. October sales were the lowest in five years and about 11 percent below the historical average for October.

Median prices can go up because of appreciation, a shift in the mix of homes sold toward higher-priced ones, or some combination thereof. In October, there was a definite shift to high-end homes in most parts of the Bay Area, said CoreLogic research analyst Andrew LePage.

This was especially true in San Francisco, where the median price jumped almost 20 percent since September to $1,225,000 in October. The city’s all-time high was $1.3 million, set in April.

Paragon Real Estate Group noted in an earlier report that a record number of single-family homes priced at $3 million and above hit the San Francisco Multiple Listing Service in September, which led to a surge in luxury home sales in October. Paragon’s data exclude most new construction.

CoreLogic, which includes new construction, said that 39 San Francisco homes and condos sold for $3 million or more in October. “That was the highest on record for any month,” LePage said.

It’s too soon to say what, if any, impact the election and rising interest rates are having on the market, because it typically takes a month or more for deals to close and get recorded with the county.

The average rate on a 30-year fixed-rate loan has risen to 4.13 percent, up from 3.62 percent on election day and a low of 3.34 percent in July, according to Mortgage News Daily. However, a year ago the rate was 4.05 percent, not much lower than today.

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• 
  
  
  

  California high court decision favors real estate buyers

• 
  
  
  

  More car buyers upside down on their trade-ins

• 
  
  
  

  Trump win may shake up Bay Area housing market

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  Little known fact: Donald Trump owns part of SF’s iconic 555

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Zach Griffin, a loan adviser with LaSalle Mortgage Services in Oakland’s Montclair neighborhood, said he has not had any loans fall through since the election. “I don’t know that rates have moved enough to change the affordability (for buyers). It has gotten some people off the fence, saying we better move now before rates go any higher.”

Dave Walsh, a branch manager with Alain Pinel Realtors in San Jose, said an agent in his office had one potential deal “go south” because of rising rates. The agent represented a buyer who was interested in a Los Gatos home listed at $1,268,000 that had been on the market more than 60 days.

“Our buyer offered $1,180,000 because that was all he could qualify for,” and it was nearer to fair market value, Walsh said. The buyer was willing to go up to $1,198,000, but the seller would not go below $1.2 million. “After three weeks of negotiations, the seller said no,” Walsh said.

However, the house remained unsold, and this week the seller’s agent asked if the buyer would resubmit his original offer of $1,180,000. But interest rates had risen a half point and the buyer could no longer qualify for the financing. “It should have come together, it didn’t come together, and now it can’t come together,” he said.

Jeanne Garde, co-owner and managing broker of Today Sotheby’s International Realty in San Carlos, said in an email: “We have not had any deals fall out because of interest rates. However, we have had one deal collapse because the buyer was unsure of what his immigration status might be in the future.” Her office also had a few buyers back out of the market because they were not sure what would happen to home prices after the election.

“We are starting to see sellers who will have substantial capital gains looking to close in 2017 hoping that the tax laws will be adjusted in their favor,” Garde added.

It’s impossible to tally how many deals have fallen through since the election, but there does not seem to be any increase in the number of listings that have been pulled off the market without selling.

MLSListings, which handles multiple listing services for the Peninsula and South Bay counties, said a total of 619 listings have been canceled, withdrawn or fallen through since the election. That compares with 685 in the same period last year. However, the number of new listings has also fallen since the election, to 687 versus 987 in the same period last year.

Other listing services show similar results. In San Francisco, 83 listings were withdrawn from the MLS since the election, compared with 102 last year. Likewise, only 234 new listings have hit the market since the election, down from 285 last year.

This time last year, the market was so hot that some people might have put their homes on the market just to see what they could get. Today, agents “are telling clients to be a little more cautious. Make sure you have your price right,” said Jay Cheng, a spokesman for the San Francisco Association of Realtors. People who list their homes “are convinced they really want to sell.” That makes for fewer listings, and fewer withdrawals.

In Alameda and Contra Costa counties, 194 listings have been canceled since the election, compared with 222 the same time last year. A total of 1,080 homes and condos were added to the market since the election, roughly equal to the 1,040 in the period last year, according to the Bay East Association of Realtors.

Article source: http://www.sfchronicle.com/business/networth/article/Bay-Area-home-sales-fall-but-prices-rise-10646005.php