Demand is forcing home prices out West to keep ticking up, even though the home-buying and -selling season is winding down, according to the September Zillow® Real Estate Market Report. Appreciation is highest in the San Jose, Calif., and Seattle, Wash., metropolitan areas, where prices have rocketed (in order) 10.3 percent, to a median $1,052,500, and 12.4 percent, to a median $455,800, year-over-year. Appreciation nationally is 6.9 percent, to a median $202,700.
Rents out West are also on a swift upswing. Rents in Riverside, Calif. have climbed 6.0 percent year-over-year—the most of the metro areas in the report—to a median $1,833. Rents in Seattle have gone up 5.5 percent to a median $2,189; rents in Portland, Ore., have increased 4.7 percent to a median $1,863; and rents in Los Angeles, Calif., have risen 4.5 percent to $2,714. Appreciation nationally is 2 percent, to a median $1,430.
“In these West Coast markets, heightened demand is being met with limited supply of homes for sale, which naturally causes prices to rise,” says Dr. Svenja Gudell, chief economist at Zillow. “That limited supply and high demand dynamic is a widespread phenomenon impacting high-growth metros like Seattle, as well as slower-moving markets, like Indianapolis.
“It might be easy to assume another bubble is emerging, with home values growing 10 or 12 percent per year, but don’t worry—the market is reacting to basic economic laws, and is behaving exactly the way we would expect it to given good overall growth, limited supply of homes for sale and decent housing affordability thanks to low mortgage interest rates,” Gudell says.
Nationally, there are now 12 percent fewer homes for sale compared to one year ago, the report shows.
article written by Suzanne De Vita, RISMedia’s online news editor.
Colorado Home Prices Predicted to Climb
Veros Real Estate Solutions, a leading private forecaster for the mortgage industry, projects home prices will appreciate in Colorado over the next 12 months. Helping boost this projection is was Freddie Mac reported new record lows for fixed U.S. mortgage rates. The average on the 30-year loan dropped to 3.62 percent- the lowest since long-term mortgages began in the 1950s. This will provide prospective buyers with more incentive to brave a modestly recovering housing market.
Veros predictions bolster a rule of thumb that every housing market is different and is contingent upon its own specific economic factors. A look at Veros’ forecasts of the top five major U.S. metropolitan housing markets in the coming year:
1. Phoenix-Mesa-Scottsdale, Ariz., 6.4%
2. Boise City-Nampa, Idaho, 3.8%
3. Boulder, Colo., 3.6%
4. Bismark, N.D., 3.5%
5. Denver-Aurora, Colo., 3.3%
read the full article here- Colorado Association of Realtors.
Boulder/Longmont is #8!
10 Metros Where List Prices Are Rising the Most
Prices of for-sale homes are on the rise in several metro areas. According to Realtor.com, which tracks 146 metro markets, the following areas have seen their median list prices increase the most from March to April:
1. Minneapolis-St. Paul, Minn.-Wis.
Monthly median list price increase: 7.90 percent
Median list price: $199,500
2. Santa Barbara-Santa Maria-Lompoc, Calif.
Monthly median list price increase: 7.07 percent
Median list price: $545,000
Monthly median list price increase: 4.66 percent
Median list price: $89,900
4. San Francisco
Monthly median list price increase: 4.62 percent
Median list price: $679,000
5. Seattle-Bellevue-Everett, Wash.
Monthly median list price increase: 4.46 percent
Median list price: $328,950
6. Boise City, Idaho
Monthly median list price increase: 4.40 percent
Median list price: $162,374
7. Trenton, N.J.
Monthly median list price increase: 4.26 percent
Median list price: $259,450
8. Boulder-Longmont, Colo.
Monthly median list price increase: 4.20 percent
Median list price: $375,000
9. Orange County, Calif.
Monthly median list price increase: 4.19 percent
Median list price: $448,000
10. Colorado Springs, Colo.
Monthly median list price increase: 4.09 percent
Median list price: $229,000
Fluctuating home prices: What causes this?
When your property appreciates you have more equity to borrow against, and you’ll create a greater profit when you sell. Property values in the area shift for many different reasons, so how do you know what you’re buying right now won’t depreciate the day after you close? The most important thing is that you select a real estate agent in your area who knows the factors that influence local prices.
Location in a community – Most people want homes in the areas with the easiest access to features, such as our work and schools. So when it comes to retaining their value, these regions often appreciate better than others.
Recent sales – Your real estate agent should provide you with figures on the recent real estate sales in the districts that you’re asking about. You’ll want to know average time on market, selling versus listing price and more.
History of appreciation – In the last 5 to 10 years, have home prices increased or decreased? Does location or affordability affect how desirable the neighborhood is believed to be?
Local economy – Is there a good blend of job types in an area, or does it count on just one industry? Have businesses moved into or away from an area? Are local businesses hiring? Each of these items plays a part.