Wednesday, November 28, 2012

Four Big Questions

With the elections behind us, I wanted to share the following article that offers some topics that will be of interest in the months and years to come.

Four big questions about real estate market

Philadelphia Business Journal by Natalie Kostelni, Reporter

With the election over, several real estate issues continue to face the national and local economy. It will take the next year to two years to see how things ultimately shake out and much of that depends on how politicians handle them.
Here are some of topics to track:
• One: The housing recovery and whether it will continue. Recent national and local data indicate that sales are up, prices steady, inventory down and the number of days a house is staying on the market before selling is on the decline. A new poll by FindLaw.com shows that Americans are feeling better about the housing market and the percentage of those who are more likely to buy a house has risen 11 percent from 8 percent.
• Two: Will the construction industry continue its sluggish but steady recovery and what, if any impact, will Hurricane Sandy have on the sector and economy? A Hanley Wood survey of 3,000 builders, architects, building supply distributors and others in the industry revealed that three in 10 expect a “strong economy” by the end of 2013, and over half feel the economy will be “vastly improved” by 2015.
• Three: The Housing Alliance of Pennsylvania is keenly watching what will happen to federal funding for affordable homes, community development and homelessness. The Department of Housing and Urban Development funnels much of its money to local agencies. In 2010, HUD awarded Pennsylvania $1.8 billion, according to the Housing Alliance of Pennsylvania. Both public and private property owners benefited from that money, which supports such programs as Community Development Block Grants.
• Four: Will multifamily continue to be a leading area for commercial real estate activity and what will ultimately happen with Fannie Mae and Freddie Mac? Lawmakers on both sides of the aisle, as well as the president, want to unwind and replace them.

Wednesday, November 7, 2012

La Plata County Residential Statistics Thru October 31

Good morning.
Below are the latest statistics for the La Plata County real estate market through October 31, 2012.

Please contact my office with any questions you may have or assistance we may provide.

Friday, November 2, 2012

Statewide Numbers & Home Price Increases

The Colorado Association of Realtors released the 3rd Quarter statistics for the state this week. The Colorado Real Estate market showed a 14.5% increase in home sales compared to the 3rd Quarter last year (23,987/20,943) and an increase in the median price of 12% ($224,000/$200,000). The year-to-date comparisons statewide show similar numbers with home sales showing an increase of 14.6% (64,993/56,718) and median price increasing 10.1% ($218,000/$198,000) over last year.

In La Plata County, the statistics show a 21% increase in home sales compared to the 3rd Quarter last year (253/209) and an increase in the median price of 0.6% ($310,000/$308,000). In the year-to-date comparison, the numbers are a bit different with sales showing a 15.3% increase (609/528) but the median price showing a decrease of 2.6% ($308,000/$300,000). The 3rd Quarter statistics show that the median price has begun to recover, similar to other areas of the state. Source: Colorado Real Estate Network

Home prices rise for fifth month in a row

@CNNMoney October 30, 2012: 10:50 AM ET

NEW YORK (CNNMoney) -- The housing market picked up more momentum in August, as the average home price for 20 major cities jumped 0.9%, according to the S&P/Case-Shiller home price index
The increase marked the fifth consecutive month of gains for the index with all but one city, Seattle, recording month-over-month price increases.
"The sustained good news in home prices over the past five months makes us optimistic for continued recovery in the housing market," said David Blitzer, spokesman for S&P.
The Case-Shiller report is one of many gauges of housing market health that has turned upbeat in recent months. New and existing home sales have been stronger, inventory of homes for sale has fallen and developers have stepped up building activity.
Slow improvement in the national economy has also boosted the housing market, as have record low mortgage rates. The rates for a 30-year loan have stayed below 3.7% since May. Combined with home prices that are still about a third less than they were when they hit their peak, these record-low rates have made homebuying very affordable.
Of the cities S&P's index covers, Phoenix has roared back the fastest, with a whopping 18.8% year-over-year gain in August. That marks the fourth month in a row of double-digit price hikes. Detroit prices rose 7.6% over the past 12 months and Miami's grew 6.7%.
Mike Larson, a financial analyst with Weiss Research, remains cautious about the outsized gains in Phoenix and some Florida markets. Much of the return represents "a resurgence in investor demand," he said. Investors now represent about 27% of the home purchases in the market, according to data from the National Association of Realtors.
Most of these buyers are looking to take advantage of beaten down prices so they can rent out the properties at a healthy profit, he said.
"The fly in the ointment is that these buyers lack emotional attachment," said Larson. So unlike regular homeowners, they will likely not stick with the homes should the market head South again.
Among the three cities to have year-over-year losses, Atlanta recorded the biggest decrease in home values, with prices down 6.1%. New York was down 2.3% and Chicago fell 1.6%.
Rising prices are expected to continue, leading some economists to predict the housing market has finally turned a corner.
"Looking forward, price increases will continue," said Jed Kolko, chief economist for Trulia. His company has more recent data, for September and October, that shows asking prices on homes have risen.
"Prices on Election Day will be almost the same as when Obama took office, probably just 1.7% below where they were in January 2009," he said.