Reports on Home Prices
It's All Good News!
In the last couple of weeks there have been several reports on housing prices, both nationally and locally. Some of the reports have a greater lag in their reporting data than others, but the general theme throughout the reports is that they have been universally positive:
The monthly HomeDex Report, created by a CSU San Marcos Professor, details housing prices for North County as well as the entire San Diego County. According to the latest report, the median housing price in North County rose from $395,000 in July to $405,000 in August. The median price for the entire county rose from $355,000 to $359,000. While not huge increases, they are in fact increases.
CoreLogic, a Santa-Ana based company that provides real estate data, reported numbers for July. In its monthly report, nationwide prices were up 3.8% over last year (the largest year-over-year gain in 6 years!) and 1.3% from June. In California, prices were up 4.4% from the same period a year ago. Live in Arizona? Housing prices there rose a remarkable 16.6% from last year!
The Case-Shiller Index, which looks at home prices in 20 metropolitan areas throughout the nation, reported that home prices in July were up 1.2% versus July of last year. This is the second straight year-over-year gain after 2 years when there were none! For the third straight month, prices in all 20 areas rose from the previous month. This is definitely a positive trend! The S&P/Case-Shiller index covers roughly half of U.S. homes. It measures prices compared with those in January 2000 and creates a three-month moving average. The July figures are the latest available.
FHFA House Price Index
FHFA, which reports on purchase prices for homes financed by loans backed by Fannie Mae and Freddie Mac, said that Nationwide prices were up 0.2% in July compared to June. For the 12 months ending in July, prices were up 3.7%.
Don’t expect a huge recovery in prices anytime soon
The news is all positive for housing prices. But, how long will it take for prices to reach the levels they hit at the peak of the market a few years ago? According to Fiserv, an analytics company, prices nationally will increase an average of 3.7% per year for the next 5 years. At that rate, prices won’t reach their highs until sometime in 2023. California may fare better – Fiserv expects prices here to increase 4.4% annually. However, we were in a deeper hole to begin with.
It’s all about baby steps – and we’ll take them!
Bryan & Allison Devore
Prudential California Realty
North San Diego County and Carlsbad Real Estate
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