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.
Consumer confidence is almost as high as it was pre-recession. Economists predict GDP growth will see a slight year-over-year increase. And private sector job growth has been steady for the past two years, averaging 240,000 jobs per month. All of these factors led the National Association of Home Builders’ chief economist David Crowe to declare 2016 “a good year for housing and the economy.”
Mortgage Rates to Rise from Cheap to Low
This year mortgage rates are expected to climb one-quarter to one-half of a percentage point to an average of 4.5 percent. Though the days of “cheap” 4 percent mortgage rates may be over, rates in 2016 should still be “low,” according to Frank Nothaft, chief economist of CoreLogic. Buyers might be faced with slightly higher mortgage rates, but they may find it easier to qualify for their mortgages. Economists expect tight mortgage credit standards to slowly loosen in 2016—but not quite to levels seen 15 to 20 years ago.
National Sales Climb
According to the National Association of Realtors®, national existing-home sales saw a significant climb in December, due in part to the Know Before You Owe initiative. These new mortgage rules, which came into effect October 3rd, delayed some transactions from November to December as lenders adjusted to the new consumer mortgage form. But while the delays accounted for some of December’s activity, they were not the only influencing factor; warm weather and the prospect of higher mortgage rates also contributed to the sales jump. Existing-home sales climbed 14.7 percent in December, which is 7.7 percent higher than a year ago. Sales haven’t been this high since 2006; however, sales will have to climb much higher to beat 2006’s record of 6.48 million.
Regional Home Sales
• Northeast – Existing-home sales’ annual rate: 750,000, a rise of 8.7 percent. Sales are 11.9 percent above a year ago. Median price: $255,700, which is 5.3 percent higher than December 2014.
• Midwest – Existing-home sales’ annual rate: 1.22 million, a 10.9 percent increase. Sales have risen 9.9 percent above December 2014. Median price: $171,000, a 7.5 percent climb from a year ago.
• South – Existing-home sales’ annual rate: 2.27 million, up 14.6 percent. December sales are 4.6 percent higher than a year ago. Median price: $196,100, which is 6.8 percent above December 2014.
• West – Existing-home sales’ annual rate: 1.22 million, a climb of 23.2 percent. Sales are up 8.9 percent from a year ago. Median price: $321,100, an 8.2 percent increase from December 2014.
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.
Many people are hesitant to lock themselves into a mortgage or to put all of their savings into a down payment. Committing to living in one place for a long time might also seem unwise. However, there are several reasons why buying a home rather than renting remains the wiser financial choice. Here are five good reasons why buying a home is a better investment for your future.
1. Buying a home is a long-term investment.
Mortgage payments may be expensive and stressful in the short term. However, paying for a mortgage now will lead to a time when you’re not struggling to come up with monthly payments. If you rent instead of buy, you will always have to worry about making monthly rent payments.
2. Rental rates will only go up.
Mortgage rates may be subject to some increases, but never as dramatically as rental prices. For instance, if you take on a mortgage, you are only subject to fluctuation for the duration of your mortgage. If you rent, you are subject to housing price increases for the rest of your life. Buying a home now means you won’t have to worry about a sudden upswing in rental prices when you’re living off of a fixed income.
3. Monthly payments build equity.
Unlike rental payments, money put into a down payment and mortgage is never really lost to you. Instead, it goes into building your equity. In other words, it remains a financial asset in your ownership that can be liquidated, transferred to your children, or used as collateral. Rent money, however, is good for one month before it’s gone forever.
4. Homeowners can make improvements.
Renters have little control over things like outdated fixtures that waste water, in-efficient heating systems and outdated lighting, but they are usually responsible for the utility bills. Homeowners can update heating, cooling, and water systems and make their money back over the long-term by saving on energy costs.
5. Homeowners can be landlords.
Buying a house as a rental property can provide a source for monthly income. For those who are willing to share housing, renting out spare rooms can cover the cost of a monthly mortgage payment. Owning a home means having a roof overhead, and it can also be a good investment.
Source: Alliance West Mortgage
Urs Britschgi has been voted into the Board of Directors of the Ladera Rancho Chamber of Commerce with a unanimous vote.
“We are excited to have Urs aboard the chamber’s elite. Not only is he an integral part of the Ladera Ranch community, but we are happy to take advantage of his high level business expertise and marketing skills to bring the chamber to a new level of operation.”, says John Alvarez, president of the Chamber.
As Ladera is the home base of the Britschgi Real Estate Team, we look forward to a fruitful relationship with the new Ladera Rancho Chamber of Commerce. We are excited to be an integral part of its development and will work hard to make the chamber a successful community platform for all of the Ladera based businesses.