Currently on sale in Ladera Ranch: 101 Single Family Homes with an average of $387.32/sqft price tag. Check out our Ladera Ranch Real Estate statistics page.
Before the housing bust, many buyers were driven by the fear of being out-priced by increasing property prices. For 80 years, with a few minor downturns in between, real estate prices have constantly risen.
“Buy now or be priced out forever” has been a real problem in California real estate for the better part of 40 years. It has been a rational fear because waiting often meant buying less or not buying at all. A strong economy and job growth often outpaces construction, pushing real estate prices higher and higher.
The housing bust changed all that. People now understand the house prices could go down, substituting down in quality just to own is not a wise decision, and priced out can quickly turn to priced in. The urgency is gone, people buy when it is right for their family. Sellers have to be aware and make sure they are pricing accordingly to generate interest from wary buyers.
Now is a good time to buy a home or list your home for sale. The national housing market trends show an increase in home sales and a decrease in home inventory. National existing-home sales increased in September to the second-highest pace since February 2007. Interest rates are holding steady near 4 percent, and job growth—while modest in comparison with the first half of the year—is still strong. Rent prices have climbed to an eight-year high, making it less affordable to rent and more affordable to own a home.
National Home Sales Increase
Total existing-home sales reached 5.5 million in September, a 4.7 percent increase from August and an 8.8 percent rise above a year ago. What’s more, for the past 12 months, year over year existing-home sales have increased, according to NAR. Gains were recorded in every region of the country. In the Midwest, existing-home sales climbed 2.3 percent in September; sales are 12 percent higher than September 2014. Sales in the South rose 3.8 percent month over month and 5.7 percent year over year. The largest sales gains in September were seen in the Northeast, with an increase of 8.6 percent, and the West, with an increase of 6.7 percent. Year over year, sales rose in the Northeast and West 11.8 percent and 9.5 percent, respectively.
National Inventory Dips
By the end of September, there was a total of 2.21 million existing homes on the market, a decrease of 2.6 percent. This is 3.1 percent lower than a year ago. At the current sales pace, this level of inventory represents a 4.8-month supply—a drop from August’s 5.1-month supply. Persistent inventory shortages have plagued the housing market all year, yet the market has still posted gains. This is thanks in large part to sellers taking advantage of rising home prices to release equity in their current home and either sell up or downsize. First-time buyers, however, are still struggling to find a way into the housing market. First-time buyers represented only 29 percent of the market in September; this is down from August’s yearly high of 32 percent and unchanged from September 2014’s.
Source: Alliance West Mortgage, INC
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Housing production reached the highest levels since November 2007. And the gains could continue in the coming months, as low interest rates and affordable home prices encourage more buyers to enter the market. In April, housing starts rose to 1.135 million units, an increase of 20.2 percent from March. The South was the only region to see housing starts drop, with a decrease in production of 1.8 percent. Housing production was booming in the Northeast with an 85.9 percent gain. In the Midwest and West production increased 27.8 percent and 39 percent, respectively. When it comes to projects still in the planning stages, 1.143 million permits were issued in April, a climb of 10.1 percent. The Midwest saw a 1.3 percent decline in the number of permits issued. But all other regions reported permit gains―of 38.8 percent in the Northeast, 9.9 percent in the South, and three percent in the West.
National Pending Home Sales Increase
April’s Pending Home Sales Index, which measures contract signings, climbed to the highest level since May 2006. What’s more, the index has been on a steady climb every month this year. According to the National Association of Realtors, buyer demand is strong despite inventory shortages in many metropolitan areas across the country. With more buyers competing for fewer homes, it is quickly becoming a seller’s market, and home prices are increasing as a result. Contract signings were up in every region of the country, with the Northeast and the Midwest posting the largest gains. A 10.1 percent climb in the Northeast put the index 9.4 percent higher than a year earlier. In the Midwest, the index increased five percent month-over-month and 13.3 percent year-over-year. The South saw contract activity rise by 2.3 percent from a month earlier and 14.8 percent year-over-year. In the West, the index climbed a slight 0.1 percent, but was 16.4 percent higher than April 2014.
Housing Still Affordable
Of all the new and existing homes sold in the first three months of the year, 66.5 percent of them were affordable to families earning the U.S. median income of $65,800, according to the National Association of Home Builders/Wells Fargo Housing Opportunities Index. Homes are now more affordable than they were at the end of 2014, when median-income families could only afford 62.8 percent of homes sold. With 85 percent of metropolitan areas across the country reporting an increase in housing affordability, now is a great time for consumers to purchase a home.
Source: Alliance West Mortgage, INC
This July, William Lyon Signature Home will debut new Covenant Hills homes as part of its Artisan Collection. As of this weekend, April 26th, 2015, the Sales Gallery is open to learn more about this latest development.
From dramatic ceiling beams to gorgeous stained wood windows, wide plank wood flooring to natural stone countertops, these Covenant Hills Estates will feature first class finishes combined with masterful artistry one can expect from the Artisan Collection.
For more information, please give us a call at 949.444.9694.
In December, the total housing inventory dropped 11.1 percent. Nationally there were 1.85 million existing homes on the market, which is a 4.4 month supply at the current sales pace; in November, there was a 5.1 month supply. With the strengthening economy and sub-4 percent interest rates, the demand for homes from buyers should be increasing, but a tight supply of homes available for sale could cool that demand.
Supply shortage causes home prices to increase. And according to the National Association of Realtors’ economists, home prices and rents are outpacing wages, making it difficult for buyers to save for a down payment. The national median existing-home price reached $208,500 in 2014, the highest it’s been since 2007, and a 5.8 percent increase from 2013. What’s more, every region of the country saw home prices increase. In the Northeast, prices rose by 3.2 percent from a year earlier, while the Midwest reported a climb of 5.3 percent. Prices in the South increased 6.6 percent from December 2013, while in the West, prices were up 5.6 percent.
Home Sale Numbers
In December national home sales closed out the year with 5.04 million sales, a 3.5 percent increase from December 2013. December was also the third month in a row where sales climbed above year-over-year levels. However, sales for all of 2014 were still 3.1 percent below 2013. Existing-home sales were up in the West in December; sales climbed 9.8 percent month-over-month and 2.8 percent year-over-year. The South also saw gains in their real estate market, with sales climbing 3.8 percent from November to December and 7.4 percent from a year earlier. Existing-home sales fell in the Northeast by 2.9 percent, but the news wasn’t all bad as sales are still 3.1 percent higher than a year ago. In the Midwest, sales declined both month-over-month and year-over-year, falling 3.5 percent and 2.7 percent, respectively.
First-time Buyers Decline
The number of first-time buyers making purchases last year fell to the lowest level in almost three decades, according to a NAR survey. For all of 2014, first-time buyers accounted for 29 percent of the market, tying their percentage for 2013. In December, first-time buyers represented 29 percent of all buyers, down from 31 percent in November but up from 27 percent in December 2013. Economists with NAR are optimistic that first-time buyers will be better represented in the market in the coming year. The Federal Housing Administration recently reduced annual mortgage insurance premiums, which will make buying a home more affordable for new homebuyers.
Source: Alliance West Mortgage, INC
Have you visited Covenant Hills lately? Then you sure have experienced the many lots that are currently in development.
Lyon Homes is introducing 14 uniquely distinctive luxury homes to Covenant Hills. As part of its Artisan Collection, these homes will feature luxurious, modern living in one of the most sought-after locations in Southern California: Covenant Hills.
This summer, 3 of the total 14 homes before development or under construction will be opened for showing. Lyon Homes is promising breathtaking design elements, spectacular floorplans and highly refined design throughout the in- and outside of the properties.
The team of renowned architects and designers at work are creating a living platform “for those who share an appreciation for remarkable beauty, purity of form and rich materials.”
For more information and purchasing opportunities, please contact us at 949.444.9694.