Despite Slowdown California Home Prices Set New Record
Keywords: real estate, california real estate, real estate market, investment
For the month of June 53,700 homes and condos were sold statewide in California in June. The pace of resales has picked up a little from May and has increased 3.8% in one month. In the broad picture home sales have decreased 20.7% from the same period last year.
The median home price for the state has hit a new high and weighed in at $478,000 in June. Home prices in the state have increased 1.9% in one month and 7.4% over one year ago. The rate of home price increase has slowed, however home prices are still rising overall in the state. Some areas of the country such as Phoenix, AZ have seen average home prices decline, but the strong demand for housing in California have kept prices on the move upward.
Mortgage payments for new home buyers in California continue to rise. The typical mortgage payment in June was $2362 which is up $64 in one month. The average mortgage payment is up $130 from June of last year.
The prices continue to rise despite a slump in sales. A number of Real Estate agents are confirming it is a buyers market for the first time in many years. The days a home is on the market has increased significantly. Most homes are on the market now between 60 and 90 days. In the past several years homeowners have gotten used to selling their homes in less then 30 days.
Buyers are becoming more careful in their purchasing decisions. As strange as it sounds, homes need to be priced right and be in pristine condition in order to sell. During the buying frenzy this was not the case. Homes were not always priced right. Teardowns were being sold at what would be called unreasonable prices now. When the buying frenzy was on, homes were purchased with the feeling they would increase rapidly within months.
So does the slowdown indicate the market is ready to crash? Looking at the market indicators, it appears the market is returning to more normal conditions in California and is not on the brink of calamity. To determine this we need to look at market stress indicators. Down payments remain stable. Speculation in the market remains at moderate levels and although rising, default rates are still low. Non owner occupied housing and flipping of properties has leveled off. The use of adjustable rate mortgages is also dropping. All this points to a slowing market, not one that is ready to fall apart.
Andrew Goldman is president of Metal Rabbit media services, the operator of www.carealestateinvest.com. Andrew has contributed articles on finance and environment to severl publications over the last ten years.
Previous Articles Highlighter:
California Foreclosure Activity Up By The Biggest Margin In 14 Years- Is The Bust Starting? (1)
The biggest drop in sales was seen in Ventura and Orange counties Price appreciation slowed to its smallest rate in six years. For the past year the rate of appreciation in southern California was 4.9%.
New Powershare ETFs Give Exchange Traded Fund Investors New Ways To Profit In Down Markets (2)
Investors need to take into consideration that these funds move inversely at twice the rate of the indexes they track. If over the period of one month the NASDAQ is down 5%, the QID will gain 10%.
Exchange Traded Funds Venture Further Into Foreign Currency Markets (3)
There are other European Funds that are up for the year. Their increase is clearly due to currency gains and not growth of equities. The markets are currently very volatile.
A New Exchange Traded Fund May Have A Major Impact On Long Term Silver Prices (4)
Silver however, is not driven by day to day news, like many equities. It is driven by long term trends. This particular trend started with the introduction of the gold standard and the end of the use of silver as money.
Another Way Of Looking At The Gold Price Meltdown (5)
China has not had a strong interest in investing in gold for anything but jewelry. That may be about to change. The government is easing regulations that may encourage more investment in gold products.
Let's All Stand Up And Give Soaring Gas Prices A Big Hand Of Applause! (6)
2007: Chevy Tahoe, GMC Yukon, up to 35 percent mpg boost. Chevrolet Malibu, 15 percent increase. 2008: Chevy Silverado and GMC Sierra pickups that get up to 35 percent mpg increase.
A Foreign Exchange Traded Fund Investors Should Consider (7)
As the profit taking occurs, for those already invested in this fund, this should not be of major concern unless you see the price drop below 13.80. For those who are not invested in this fund, you may want to consider buying during the price corrections.
Will Long Term Home Ownership Lead To Profits Or Declining Values? (8)
In the Dallas market trends were seen that were not seen in other markets. After 5 years of home ownership, homeowners saw their gains max out at 22%. Families who owned homes for 10 years or more did not see losses, but they did not always see gains either.
A Risky Investment Becomes Commonplace (9)
Andrew Goldman is president of Metal Rabbit media services, the operator of www.exchangetradedfundinvesting.com. He has written a number of articles on finance and investment over the last ten years.
Powerful New Two-Mode Hybrid System For Full-Sized SUV's (10)
Coming this summer is the Saturn Vue Green Line SUV Implementation of continuing technological advances in fuel and environment saving vehicles are giving customers more choices that better fit individual needs, and help lessen our dependence on foreign oil.
Newer Articles Highlighter:
New Fund For Indian Investors Can Benefit U.S. Investors (1)
The amount of gold held by U.S. Investors in these funds is over 600 tonnes. Now the popularity of these ETF funds is spreading. Until recently investors of gold in India would invest primarily in gold jewelry.
Real Estate Schemes Prey On Homeowners And Lenders (2)
The outcome is predictable, the homeowner goes into foreclosure. A typical scenario that occurred in Pueblo Colorado is being played out all over the country. An appraiser overvalued a home by using fraudulent comparable home values so buyers can purchase a home with no down payment.
California Real Estate Market Gives Mixed Messages (3)
The default rates are up, however these rates are still low. Andrew Goldman is president of Metal Rabbit media services, the operator of www.carealestateinvest.com and www.Exchangetradedfundinvesting.com. He has written a number of articles on finance and investment over the last ten years.
Beginner's Guide To Resell Rights (4)
If you have purchased a group of web site templates with master resell rights, you can sell these templates and allow buyers to sell them to others. Since you're offering an opportunity for making extra income, people will be interested in purchasing your package of web site templates.
Starting Model Helicopter As A Hobby - What You Should Know (5)
It is powered by a battery that is connected to a machine that makes the rotor spin to get lift. The electric rc is sometimes regarded to as the beginner's rc since it is easy to fly and less complicated to operate.
The Journey To End Compulsive Hair Pulling (6)
If you do this, it will ultimately give you power. And the more power you gain, the more your addiction will lose its power over you. Your urges will gradually decrease and when they do come, you will easily and confidently be able to manage them.
How To Get The Right Document Scanner (7)
Otherwise you will get a distorted image. Good document scanners are endowed with 40 bits or more. When checking out a document scanner, make sure you take a look at its type of connection.
The 5 Best Jobs For The Next 10 Year Part II (8)
Take advantage from this information and choose wisely. When you choose a college major, you obviously want to choose a major that will not only utilize your passions, interests, and skills, but also one that will give you a great chance to earn a good-earning income.
Real Estate Bird-dogs: How To Invest In Real Estate With Zero Risk (9)
By being in the right circuit of real estate professionals, you will be able to get the most lucrative deals available in the market Discover exactly how Sal Vannutini combined two of the easiest (yet brutally powerful)real estate investing strategies and made an insane $31,510 Profit In Just 49 Days...
Hot 2007 Mercedes SL Roadster (10)
This amazing car has, however, a few drawbacks, the most important of which being the relatively high degree of difficulty when it comes to operating control panels for air conditioning and the audio system.
Permalink to Despite Slowdown California Home Prices Set New Record