For eight years licensed realtor in California.
Currently licensed realtor in Florida
Specializing in New Construction and Land Investment.
I can help you find the best location in Palm Coast and choose the right construction company for your future home or investment. I am working with the best construction companies and all my services for home buyers are absolutely free.
A few years ago, when the housing market was flooded with foreclosures and short sales, the average construction cost was two - three times higher, than the market price for previously owned properties. Even though there are a lot of pitfalls in buying foreclosures, at that time it was worth to take the risk.
Today things have changed. Now a newly built house costs only a few percent more than a previously owned one. Even though it takes 9 months to build, it is worth it.
There are a lot of advantages building a new home. You can get the exact house you want and in the exact place you want it. You even can build the house on two adjacent lots and get full privacy. Your house will be brand new (with warranty) - no unexpected kitchen appliances, heater, air conditioner, garage door, roof or any other repairs. No unexpected mold, termites, leaks or any other problems.
During the 2003 - 2007 construction material shortage, a lot of houses were built from low quality and even health threatening materials from China. Now a lot of new building codes are imposed that are meant to improve the safety, energy efficiency and construction of new residential homes.
A new house is also a much better investment than an old one. You will most likely make a good profit if you would decide to sell it.
One of Florida's newest cities, Palm Coast is also known as a Florida Paradise. Over 70 miles of saltwater and freshwater canals, Intracoastal Waterway and just minutes from pristine Atlantic Ocean beaches.
Dozens of beautiful parks, more than 125 miles of connecting trails and paths for walking, running, roller skating or bicycling, abundant fishing and boating, world-class golf and tennis courts.
Palm Coast is located on Florida's northeast coast, midway between St. Augustine and Daytona Beach.
The location of Palm Coast is very unique. Just a 25 minute drive south to Daytona Beach , home of the famous "Daytona International Speedway" and "Bike Week" - the World's Largest Motorcycle Event. Just a 25 minute drive north to Saint Augustine , the oldest city in America with hundreds of museums, historic landmarks and other attractions.
Only a one hour drive to Orlando – paradise for children and adults, one of the biggest entertainment centers in the world.
Disney World , Universal Studios , Wet’n Wild, Sea World , Aquatica, Gatorland , Legoland and many more parks, museums, restaurants and other attractions are in Orlando.
Jacksonville , the largest city in the United States is less than a one hour drive from Palm Coast.
Compared to big cities, life in Palm Coast is the exact opposite – clean streets and beaches, clean and warm ocean water, no traffic, no pollution, even no parking meters. Bike trails are all over the city and some people even go shopping by bike.
There are so many pine trees here, so you feel like you live in a forest. At the same time Palm Coast has everything you need for comfort living – all major American supermarkets and restaurants, farmers markets, hospitals, churches etc.
Palm Coast has a movie theater and an endless chain of small local businesses, like beauty salons, coffee shops, medical offices, fish restaurants, grocery stores, bakeries and many more.
My services for new construction buyers are absolutely free. Buying a land or building a house is a bussiness that has a lot of unpredictable pitfalls. For the buyers I am simply a free adviser. I can help you choose the right location, expain the differences between construction companies, for foreign buyers i can be a free translator. Sure, you don't need me if you know exactly what kind of house you want, which construction company is best for you and where exactly you want to build your new house.
Yes. We specialize in the management of single family homes, duplex's, multi-unit dwellings and condos. We operate our business with integrity, ethics and professionalism while providing outstanding property management services. Our office has the years of experience it takes to get the job done right, protecting you from the liabilities that surround the management of rental properties.
Let us manage your rental and/or investment property and forget your worries.
Yes. We provide all services for selling your property:
Overview of current market conditions and projections.
Take additional photos for upload into MLS and use in flyers.
Create print and Internet ads with seller's input
Coordinate showings with owners, tenants, and other Realtors. Return all calls - weekends included.
Install electronic lockbox if authorized by owner.
Review comparable MLS listings regularly to ensure property remains competitive in price, terms, conditions and availability.
Provide marketing data to buyers coming from referral network.
Receive and review all Offer to Purchase contracts submitted by buyers or buyers’ agents.
Counsel seller on offers. Explain merits and weakness of each component of each offer.
When Offer to Purchase Contract is accepted and signed by seller, deliver to buyer’s agent.
Record and promptly deposit buyer’s earnest money in escrow account.
Coordinate buyer’s professional home inspection with seller.
Review home inspector’s report.
Negotiate payment and oversee completion of all required repairs on seller’s behalf, if needed.
Assist seller in questioning appraisal report, if questions arise.
Coordinate closing process with buyer’s agent and lender.
Confirm closing date and time and notify all parties.
Receive and carefully review closing figures to ensure accuracy of preparation and all other services needed to sell your property.
If you can't find your answer here,
feel free to contact us
by phone: 1 386 225 5687 Victor Vega
GREENSBORO, N.C. – Oct. 24, 2017 – U.S. housing markets are expected to remain healthy through at least the end of 2018, with no housing bubble in sight and no projection of home prices falling, according to the Fall 2017 edition of The Housing and Mortgage Market Review (HaMMR), released by Arch Mortgage Insurance Company.
The HaMMR features the Arch MI Risk Index, a statistical model based on recent housing market indicators. The index suggests that over the next two years, the probability of home price declines in America's 401 largest cities averages just 4 percent – an unusually low number.
The trend reflects broad-based favorable fundamentals, such as a tightening job market, relatively low interest rates, a low number of homes for sale and an overall housing shortage.
"People waiting for home prices to fall before buying may want to change their strategy, as the overall housing market is expected to stay strong for the foreseeable future," says Dr. Ralph G. DeFranco, Global Chief Economist, Mortgage Services of Arch Capital Services Inc. "Our research shows no housing bubble is forming in the United States, with prices overall near historic norms compared to incomes."
The HaMMR also finds that some recent concern about U.S. home prices hitting all-time highs is overblown because, after adjusting for inflation, national home prices are still 10 percent below their prior peak.
However, recovery from the housing crash is not universal. While prices have increased in Colorado, Idaho, North Dakota and the Pacific Northwest (Washington and Oregon), areas like New England and energy-extraction states like Alaska, West Virginia and Wyoming are growing more slowly.
Source: © 2017 Florida Realtors
ORLANDO, Fla. – Aug. 24, 2017 – Just like the weather, Florida's housing market was hot in July with more closed sales, higher median prices, increased pending sales and more new listings, according to the latest housing data released by Florida Realtors®. Sales of single-family homes statewide totaled 24,546 last month, up 2 percent compared to July 2016.
"Florida's housing market gained momentum in July," says 2017 Florida Realtors President Maria Wells, broker-owner with Lifestyle Realty Group in Stuart. "More owners decided to put their homes up for sale. However, even with the increase in new listings, inventory remains tight and buyer demand is great. New listings for single-family existing homes rose 6.1 percent year-over-year, while new listings for existing condo-townhouse properties rose 5.5 percent. Homes continue to sell quickly, resulting in increased pending sales – up 3.3 percent for single-family homes and up 3.6 percent for condo-townhouse units.
"In such a fast-paced, tight-inventory market, consumers' best resource is a local Realtor, who is there to help successfully guide them through the complexities of buying or selling a home."
The statewide median sales price for single-family existing homes last month was $240,000, up 7.1 percent from the previous year, according to data from Florida Realtors Research department in partnership with local Realtor boards/associations. Thestatewide median price for townhouse-condo properties in July was $170,950, up 6.8 percent over the year-ago figure. July marked the 68th month-in-a-row that statewide median prices for both sectors rose year-over-year. The median is the midpoint; half the homes sold for more, half for less.
According to the National Association of Realtors®(NAR), the national median sales price for existing single-family homes in June 2017 was $"Florida's rate of employment growth continues to outpace the nation's, and a substantial number of Florida's millennials have started looking for their first home. At the same time, however, rents are still quite high, so homes in these price ranges remain attractive to investors, as well."
Inventory remained tight in July with a 3.9-months' supply for single-family homes and a 5.6-months' supply for townhouse-condo properties, according to Florida Realtors.
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.97 percent in July 2017; it averaged 3.44 percent during the same month a year earlier.
Source: © 2017 Florida Realtors®
ORLANDO, Fla. – June 21, 2017 – Florida's housing market reported more closed sales, higher median prices, more new listings and more pending sales in May, according to the latest housing data released by Florida Realtors®. Sales of single-family homes statewide totaled 27,850 last month, up 7.6 percent compared to May 2016.
"Buyer demand continues to fuel Florida's housing market this month," said 2017 Florida Realtors President Maria Wells, broker-owner with Lifestyle Realty Group in Stuart."As for-sale inventory continues to be tight, prospective buyers are responding by being prepared, pre-qualified and ready to make an offer when they find the right home. Realtors across the state report that many newly listed homes are selling quickly. In May, sellers of existing single-family homes received 96.4 percent (median percentage) of their original listing price, while those selling townhouse-condo properties received 94.7 percent – a signal that the listed price is extremely close to market value.
"In this competitive and complex market, it is vital for consumers to work with a Realtor who will provide them expert guidance in the homebuying or selling process."
The statewide median sales price for single-family existing homes last month was $239,000, up 7.7 percent from the previous year, according to data from Florida Realtors research department in partnership with local Realtor boards/associations. The statewide median price for townhouse-condo properties in May was $178,000, up 8.1 percent over the year-ago figure. May was the 66th consecutive month that statewide median prices for both sectors rose year-over-year. The median is the midpoint; half the homes sold for more, half for less.
According to the National Association of Realtors® (NAR), the national median sales price for existing single-family homes in April 2017 was $246,100, up 6.1 percent from the previous year; the national median existing condo price was $234,600. In California, the statewide median sales price for single-family existing homes in April was $536,750; in Massachusetts, it was $362,500; in Maryland, it was $285,023; and in New York, it was $235,000.
Looking at Florida’s townhouse-condo market, statewide closed sales totaled 11,538 last month, up 8 percent compared to May 2016. Closed sales data reflected fewer short sales and last month: Short sales for townhouse-condo properties declined 44.8 percent while short sales for single-family homes dropped 30.8 percent. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
“Closed sales of existing homes in the Sunshine State not only rebounded from a relatively flat April, they positively surged to record highs in May of 2017,” said Florida Realtors® Chief Economist Dr. Brad O’Connor. “To be more specific, May’s sale totals of 27,850 existing single family homes and 11,538 existing condos and townhomes were the most ever recorded (by Florida Realtors) for a single month in either property type category. In both cases, these totals were also markedly higher than the very strong number of sales racked up in May of 2016.”
Inventory remained tight in May with a 4-months’ supply for single-family homes and a 6-months’ supply for townhouse-condo properties, according to Florida Realtors.
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.01 percent in May 2017; it averaged 3.60 percent during the same month a year earlier.
Source: © 2017 Florida Realtors®
NEW YORK – May 26, 2017 – Investment companies are betting big that the rental boom will continue, which is why they're still snatching up properties even as foreclosures dry up.
Following the financial crisis, investors purchased foreclosures on the cheap and then rented these single-family homes out for profit. It's a move that worked for several years, but now there are fewer foreclosures to buy, home prices are on the rise, and there's fewer homes overall on the market. That has prompted more investors to turn their focus to build-to-rent: If they can't find a home to rent, they'll build one themselves.
Indeed, American Homes 4 Rent, the largest publicly traded landlord by number of homes, is buying up lots and houses. U.S. Colony Starwood Homes says it plans to buy at least 600 just-built properties over the next year from more than a dozen builders. AHV Communities LLC says it's planning to buy entire neighborhoods of single-family residences that would be available for renting.
Landlord companies believe there are a lot of people who want single-family homes but still can't afford to buy them. They believe the rental market will stay strong for the foreseeable future.
Buying new costs investment firms more than acquiring an existing home, however. Companies are searching for discounts from builders. They're also able to put less into maintenance and repairs on the new homes to cover some of the added costs of buying new.
Investors are betting that newer homes will bring in higher yields than existing properties. A new single-family rental tends to fetch a higher rent – 5 percent to 8 percent more than an older, renovated home – according to Alex Sifakis, president of JWB Real Estate Capital, which has built around 450 rental homes in Jacksonville, Fla., since 2011.
Still, some industry analysts warn that landlord companies may be miscalculating how long the rental boom will really stick around. True, the homeownership rate in the U.S. has been hovering near a 51-year low. However, the number of owner-occupied homes increased faster than the number of renting households for the first time since 2006 in the first quarter of this year, Census data shows.
Source: "Foreclosures Dry Up and a Hot Wall Street Trade Gets New Look," Bloomberg (May 22, 2017)
WASHINGTON – May 22, 2017 – U.S. real estate markets are becoming increasingly international. Two trends – changing demographics from immigration and a growing interest from foreigners – are positioned to bolster home sales activity and prices, according to speakers at an international real estate forum organized by Realtor® University's Richard J. Rosenthal Center for Real Estate Studies at the 2017 Realtors Legislative Meetings & Trade Expo.
NAR's Danielle Hale, managing director of housing research, was joined by Alex Nowrasteh, immigration policy analyst at the Center for Global Liberty and Prosperity at the Cato Institute, to share insights on the current and future impact of foreign buyers and immigration on the U.S. housing market.
According to Nowrasteh, the rising U.S. population is being bolstered by a growing number of immigrant households, and their presence will continue to transform the housing market. Referring to data from the 2015 American Community Survey, Nowrasteh said of the roughly 321.4 million residents in the U.S., 278.1 million were born here (natives), and the remaining 43.3 million – 20.7 million naturalized citizens and 22.6 million non-citizens – are foreign-born.
"Immigration affects rents and home prices far more than it affects the labor market," said Nowrasteh. "An expected 1 percent increase in a city's population produces a 1 percent uptick in rents, while an unexpected increase results in a 3.75 percent rise." Nowrasteh, pointing to studies conducted on immigration and housing, said that the effects of immigration on real estate are localized, with most of the impact felt where immigrants tend to reside: low-to-middle-income counties. Each immigrant adds 11.6 cents to housing value within that county. In 2012, 40 million immigrants added roughly $3.7 trillion to U.S. housing wealth.
Referencing the Legal Arizona Workers Act that went into effect on Jan. 1, 2008, Nowrasteh said a decline in population resulting from that law likely exacerbated the home price drop the state saw during the downturn. Fewer households purchasing or renting property subsequently lead to higher vacancies and lower prices.
"Immigration is the best way to increase population, housing supply and prices," he said. Hale referenced NAR's 2016 Profile of International Activity in U.S. Residential Real Estate released last July. She said foreigners increasingly view the U.S. as a great place to buy and invest in real estate. She noted the upward trend in sales activity from resident and non-resident foreign buyers, in the past seven years, with total foreign buyer transactions increasing from $65.9 billion in 2010 to $102.6 billion in the latest survey.
"A majority of foreign buyers in recent years come from China, which surpassed Canada as the top country by dollar volume of sales in 2013 and total sales in 2015," said Hale. "Foreign buyers on average purchase more expensive homes than U.S. residents and are more likely to pay in cash."
Where will future foreign buyers settle? Hale said that in NAR's latest survey, roughly over half of all foreign buyers purchased property in Florida (22 percent), California (15 percent), Texas (10 percent), Arizona or New York (each at 4 percent). Latin Americans, Europeans and Canadians – who tend to buy for vacation purposes in warm climates – mostly sought properties in Florida and Arizona. Asian buyers were most attracted to California and New York, while Texas mostly saw sales activity from Latin American, Caribbean and Asian buyers.
NAR's 2017 Profile of International Activity in U.S. Residential Real Estate survey is scheduled for release this summer. Looking at the past year, Hale said monthly data from the Realtors Confidence Index revealed a rise in responses from Realtors indicating they worked with an international buyer.
"Chinese buyers are once again expected to top all countries in both total dollar volume and overall sales," said Hale.
Source: National Association of Realtors® (NAR)
WASHINGTON – April 25, 2017 – Combining two reports – a listing average from the National Association of Realtors® (NAR) and a days-to-closing by Ellie Mae, the average time it takes for a home to go from first day on the market to the closing table is 73 days. Listing days Forty-eight percent of homes sold in March were on the market for less than a month, according to NAR. The average for all sold properties, though, was a little higher, at 34 days. Still, that's down significantly from 47 days a year ago. Non-distressed homes spent a median of 32 days on the market, which is the shortest length of time since NAR began tracking the data in May 2011. With strong buyer demand supporting shorter times on the market, home prices are rising as well. The median existing-home price for all housing types was $236,400 in March, up 6.8 percent from a year ago. "Last month's swift price gains and the remarkably short time a home was on the market are directly the result of the homebuilding industry's struggle to meet the dire need for more new homes," says NAR Chief Economist Lawrence Yun. "A growing pool of all types of buyers is competing for the lackluster amount of existing homes on the market. Until we see significant and sustained multi-month increases in housing starts, prices will continue to far outpace incomes and put pressure on those trying to buy." Days to closing The average time to close on all home loan types dropped to 43 days in March – the quickest pace since February 2015, according to Ellie Mae's Origination Insight Report. A year ago, the average closing time was 46 days. Broken out, loans to purchase a home took 43 days to close, and refinance loans took 43 days in March, down from 45 and 47 days, respectively, month to month. The share of purchase loans last month rose to 63 percent of total originations, up from 57 percent in February, according to Ellie Mae's report. That marks their highest share since July 2016. "The purchase market continued to heat up in March," says Ellie Mae President and CEO Jonathan Corr. He also attributed the drop in closing times to Ellie Mae lenders who are automating more mortgage processes "to improve efficiency, quality, and compliance." More borrowers are opting for adjustable-rate mortgages as well, according to Ellie Mae's report. ARMs increased from 5.3 percent to 5.6 percent in March, which is the highest percentage in three years.
Source: "Lenders Speed Up Loan Processing: Ellie Mae," Mortgage News Daily (April 21, 2017); National Association of Realtors® (NAR)
WASHINGTON (AP) – March 23, 2017 – Americans shrugged off higher mortgage rates and snapped up new homes in February at the fastest pace since July.
The Commerce Department says new home sales rose 6.1 percent last month to a seasonally adjusted annual rate of 592,000. That is nearly 13 percent higher than a year ago.
Builders have ramped up the construction of new homes, which helps meet strong demand and boosts sales. That could provide a crucial lift to the overall housing market: The supply of existing homes for sale has dwindled, preventing many potential buyers from purchasing homes.
There were 266,000 new homes for sale last month, the most since July 2009 – a month after the recession ended – and up nearly 10 percent from a year earlier.
Source: National Association of REALTORS®
IRVINE, Calif. – March 9, 2017 – Home flipping last year was 3.1 percent higher than it was in 2015, according to ATTOM Data Solutions' 2016 Year-End U.S. Home Flipping Report. The report finds that 193,009 single family homes and condos were flipped – resold in an arms-length transfer for the second time within a 12-month period – in 2016.
In 2006 with a recession on the horizon, 276,067 single family homes and condos were flipped. In 2005, 338,207 single family homes and condos were flipped – 8.2 percent of all sales. The study included 950 U.S. counties that cover 80 percent of the population.
In addition, the number of buyers flipping homes has increased. In 2016, 126,256 entities – a number that includes both individuals and institutions – flipped homes in 2016. That's less than a 1 percent increase of 2015 but the highest number since 2007.
Meanwhile, the share of flipped homes purchased by the flipper with financing increased to an eight-year high of 31.5 percent in 2016. The median age of homes flipped increased to 37 years – a new high going back to 2000, as far back as data is available – and the median square footage of flips decreased to 1,422 – a new record low going back to 2000.
"The combination of more home flips and a greater share of financing for flip purchases resulted in a 19 percent jump in the estimated dollar volume of financing for home flip purchases, up to $12.2 billion for the flips completed in 2016 – a nine-year high," says Daren Blomquist, senior vice president at ATTOM Data Solutions.
Blomquist says that more home flippers are now willing to "move to secondary and tertiary housing markets and neighborhoods with older, smaller properties that are available at a deeper discount," Blomquist says, a change that also led to "a higher share of the flipped homes sold to FHA buyers," a share that hit a four-year high of 19.6 percent in 2016."
Source: National Association of REALTORS®
WASHINGTON (February 22, 2017) — Existing-home sales stepped out to a fast start in 2017, surpassing a recent cyclical high and increasing in January to the fastest pace in almost a decade, according to the National Association of Realtors®. All major regions except for the Midwest saw sales gains last month. Total existing-home sales 1, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, expanded 3.3 percent to a seasonally adjusted annual rate of 5.69 million in January from an upwardly revised 5.51 million in December 2016. January's sales pace is 3.8 percent higher than a year ago (5.48 million) and surpasses November 2016 (5.60 million) as the strongest since February 2007 (5.79 million). Lawrence Yun, NAR chief economist, says January's sales gain signals resilience among consumers even in a rising interest rate environment. "Much of the country saw robust sales activity last month as strong hiring and improved consumer confidence at the end of last year appear to have sparked considerable interest in buying a home," he said. "Market challenges remain, but the housing market is off to a prosperous start as homebuyers staved off inventory levels that are far from adequate and deteriorating affordability conditions." The median existing-home price 2 for all housing types in January was $228,900, up 7.1 percent from January 2016 ($213,700). January's price increase was the fastest since last January (8.1 percent) and marks the 59th consecutive month of year-over-year gains. Total housing inventory 3 at the end of January rose 2.4 percent to 1.69 million existing homes available for sale, but is still 7.1 percent lower than a year ago (1.82 million) and has fallen year-over-year for 20 straight months. Unsold inventory is at a 3.6-month supply at the current sales pace (unchanged from December 2016). Properties typically stayed on the market for 50 days in January, down from 52 days in December and considerably more a year ago (64 days). Short sales were on the market the longest at a median of 108 days in January, while foreclosures sold in 51 days and non-distressed homes took 49 days. Thirty-eight percent of homes sold in January were on the market for less than a month. "Competition is likely to heat up even more heading into the spring for house hunters looking for homes in the lower- and mid-market price range," added Yun. "NAR and realtor.com®'s new ongoing research — the Realtors® Affordability Distribution Curve and Score — revealed that the combination of higher rates and prices led to households in over half of all states last month being able to afford less of all active inventory on the market based on their income." Inventory data from realtor.com® reveals that the metropolitan statistical areas where listings stayed on the market the shortest amount of time in January were San Jose-Sunnyvale-Santa Clara, Calif., 43 days; San Francisco-Oakland-Hayward, Calif., 47 days; San Diego-Carlsbad, Calif., 55 days; Seattle-Tacoma-Bellevue, Wash., 57 days; and Nashville-Davidson-Murfreesboro-Franklin, Tenn., Vallejo-Fairfield, Calif., and Greeley, Colo., all at 58 days. NAR President William E. Brown, a Realtor® from Alamo, California, cautions about another source that could possibly drag down inventory for would-be buyers in coming months. "Supply and demand imbalances continue to be burdensome in many markets, and now Fannie Mae is supporting a Wall Street firm's investment in single-family rentals," he said. "This will only further hamper tight supply and put major investors in direct competition with traditional buyers. Instead, the GSEs should lower overly burdensome fees (link is external) and help qualified borrowers become homeowners." First-time buyers were 33 percent of sales in January, which is up from 32 percent both in December and a year ago. NAR's 2016 Profile of Home Buyers and Sellers — released in late 2016 4 — revealed that the annual share of first-time buyers was 35 percent. According to Freddie Mac, the average commitment rate (link is external) for a 30-year, conventional, fixed-rate mortgage decreased slightly in January to 4.15 percent from 4.20 percent in December. The average commitment rate for all of 2016 was 3.65 percent. All-cash sales were 23 percent of transactions in January, up from 21 percent in December but down from 26 percent a year ago. Individual investors, who account for many cash sales, purchased 15 percent of homes in January, unchanged from December and down from 17 percent a year ago. Fifty-nine percent of investors paid in cash in January. Distressed sales 5 — foreclosures and short sales — were 7 percent of sales in January, unchanged from December and down from 9 percent a year ago. Five percent of January sales were foreclosures and 2 percent were short sales. Foreclosures sold for an average discount of 14 percent below market value in January (20 percent in December), while short sales were discounted 10 percent (unchanged from December).
Single-family home sales grew 2.6 percent to a seasonally adjusted annual rate of 5.04 million in January from 4.91 million in December 2016, and are now 3.7 percent above the 4.86 million pace a year ago. The median existing single-family home price was $230,400 in January, up 7.3 percent from January 2016. Existing condominium and co-op sales leapt 8.3 percent to a seasonally adjusted annual rate of 650,000 units in January, and are now 4.8 percent higher than a year ago. The median existing condo price was $217,400 in January, which is 6.2 percent above a year ago. January existing-home sales in the Northeast jumped 5.3 percent to an annual rate of 800,000, and are now 6.7 percent above a year ago. The median price in the Northeast was $253,800, which is 2.5 percent above January 2016. In the Midwest, existing-home sales decreased 1.5 percent to an annual rate of 1.29 million in January, and are 0.8 percent below a year ago. The median price in the Midwest was $174,900, up 6.5 percent from a year ago. Existing-home sales in the South in January rose 3.6 percent to an annual rate of 2.31 million, and are now 3.1 percent above January 2016. The median price in the South was $201,400, up 9.2 percent from a year ago. Existing-home sales in the West ascended 6.6 percent to an annual rate of 1.29 million in January, and are now 8.4 percent above a year ago. The median price in the West was $332,300, up 6.8 percent from January 2016.
Source: National Association of REALTORS®
Home price appreciation picked up speed in the final three months of 2016, prompting the majority of metro areas to soar to new record highs with home prices, the National Association of REALTORS®’ latest quarterly report reveals. Of the 150 markets NAR has tracked since 2005, 52 percent – or 78 – now have a median sales price that is at or above its previous all-time high. The fourth quarter of 2016 proved to be a strong one for home price appreciation. The median existing single-family home price rose in 89 percent of the measured markets. Thirty-one metro areas out of 178 saw double-digit gains.
“Buyer interest stayed elevated in most areas thanks to mortgage rates under 4 percent for most of the year and the creation of 1.7 million new jobs edging the job market closer to full employment,” says Lawrence Yun, NAR’s chief economist. “At the same time, the inability for supply to catch up with this demand drove prices higher and continued to put a tight affordability squeeze on those trying to reach the market.” In the fourth quarter, the national median existing single-family home price was $235,000 – up 5.7 percent from the fourth quarter of 2015 ($222,3000).
Inventories of homes for-sale remain tight. At the end of the fourth quarter, 1.65 million existing homes were available for sale, which is 6.3 percent below year ago levels and the lowest level since NAR began tracking the supply of all housing types in 1999. “Depressed new and existing inventory conditions led to several of the largest metro areas seeing near or above double-digit appreciation, which has pushed home values to record highs in a slight majority of markets,” Yun says. “The exception for the most part is in the Northeast, where price growth is flatter because of healthier supply conditions.”
Nationwide, a boost in home prices and mortgage rates at the end of the year slightly weakened affordability compared to a year ago. That came despite a solid uptick in the national family median income. To buy a single-family home at the national median price, a buyer making a 5 percent down payment would need an income of $51,017; they would need an income of $48,332 for a 10 percent down payment; and they would need an income of $42,962 for a 20 percent down payment, according to NAR. “Even a pick-up in wage growth may be insufficient to compensate the impact of higher mortgage rates and home prices,” Yun says. “Increased homebuilding will be crucial to alleviate supply shortages and stave off the affordability hit.”
Source: National Association of REALTORS®