Another Big Leap for Home Prices

20130306-092130.jpgAnother home price index is showing home prices surging: CoreLogic’s home price index shows that home prices nationwide in January rose 9.7 percent year-over-year, posting their largest percentage increase since April 2006.

It was the 11th consecutive month of month-over-month increases in existing-home sales, according to CoreLogic’s index.

“Home prices continued to gather steam across a broad swath of the country in January, continuing the positive trend we saw during most of 2012,” says Anand Nallathambi, president and CEO of CoreLogic. “Many states across the western U.S. and along the East Coast saw average price gains of more than 6 percent, which is likely to boost home sale activity into the first half of 2013.”

The states seeing the biggest year-over-year rises in home prices in January were Arizona (20.1%), Nevada (17.4%), Idaho (14.9%), and California (14.1%), according to CoreLogic’s index. The only states not seeing year-over-year price increases were Delaware (-0.1%) and Illinois (-0.4%).

Source: “Home Prices Take Biggest Leap in 7 Years,” Inman News

How did we rate: January’s housing scorecard

HousingStatsImage-wideJanuary home sales held steady and may indicate that a seller’s market is emerging, reports the National Association of Realtors. Total existing home sales went up 0.4 percent to a seasonally adjusted rate of 4.92 million, up 9.1 percent from the January 2012 level of 4.51 million units. Home prices continue to rise above last year’s levels, and sales are up in all regions except for the West, where inventory is tighter.

Total housing inventory at the end of January dropped 4.9 percent to 1.74 million existing homes on the market, or a 4.2-month supply. This marks the lowest supply rate since April 2005. NAR chief economist Lawrence Yun said that “buyer traffic is continuing to pick up, while seller traffic is holding steady.”

The number of available homes for sale is lower than the six-month supply considered to be typical of a balanced market, reports Forbes. But some experts like Stuart Hoffman, chief economist at PNC Financial Services Group, cautions against using the term “seller’s market” to sum up current housing activity. “I don’t think it is a seller’s market yet but I do think we are getting back to a more balanced market where it’s no longer simply a buyer’s market.” According to Business Insider, Bank of America economist Michelle Meyer sees a market opportunity for new construction and existing homes to add to inventories and offset undue pressure on home prices.

The national median existing-home price for all housing types was $173,600 in January, up 12.3 percent from January 2012, making the 11th consecutive month of year-over-year price increases. Distressed transactions comprised 23 percent of January sales, down from 24 percent in December and 35 percent in January 2012. And the national average commitment rate for a 30-year conventional, fixed-rate mortgage rose slightly to 3.41 percent in January from a record low 3.35 percent in December.

Buyer Urgency Expected to Drive 2013

164ASPbue973894bevHome shoppers will likely have more urgency in the new year, wanting to buy before home prices rise even more.

Home prices are edging up in most markets, and buyers are taking notice. Buyer surveys recently have shown that home shoppers expect home prices to continue to inch up, and they want to cash in before they rise too much higher.

“Every single thing about housing is flashing green” with household formation rising, inventory falling, and affordability hovering at record highs, James Dimon, chief executive of J.P. Morgan Chase told CNBC last month.

In 2013, rising rents are expected to push more renters to buy, The Wall Street Journal reports. Also, investors who’ve had a big appetite for housing in recent years may start to decrease their share in some markets that have seen prices rise, such as Phoenix, and focus on other markets still in recovery mode, like Chicago and Atlanta.

“Rising prices could eventually encourage more sellers to put their homes on the market, which would help boost demand even further,” The Wall Street Journal reports.

To meet the expected increase in demand in 2013, some real estate companies are going on a hiring spree. For example, Redfin says it plans to increase its 400 agents nationally by 50 percent by the end of January after having to send about half of its referrals to other companies earlier this year because demand outstripped its supply of agents.

Source: “2013: How Rising Prices Could Boost Housing Demand,” The Wall Street Journal

Top 10 ‘Turnaround’ Housing Markets–Seattle #5!

seattleWestern states continue to dominate, showing some of the fastest paces of recovery in the nation’s housing markets. With inventories falling, national median list prices increased 2.54 percent year-over-year during the third quarter, reports.

Anecdotally, the greater Seattle area, has seen price appreciation for months now. The lack of inventory is causing multiple offers in many areas!

The site released its rankings of the top 10 turnaround towns, based on third quarter housing data of median list price increases, inventory levels, and employment rates.

1. Oakland, Calif.

2. Sacramento, Calif.

3. San Jose, Calif.

4. San Francisco

5. Seattle-Bellevue-Everett, Wash.

6. Bakersfield, Calif.

7. Santa Barbara-Santa Maria-Lompoc, Calif.

8. Phoenix-Mesa, Ariz.

9. Fresno, Calif.

10. Miami

View more information about what is making these housing markets some of the biggest turnaround housing markets in the nation at

House Prices: Annual Appreciation for Last 25 Years


House Prices: Experts Becoming More Optimistic

projectionsEach quarter, Pulsenomics surveys a

“distinguished panel of over 100 economists, investment strategists, and housing market analysts regarding their 4-year expectations for future home prices in the United States.”

Here are the latest survey results.

Price appreciation/depreciation expected over the next four years:

  • 2012: 2.31%
  • 2013: 2.44%
  • 2014: 3.25%
  • 2015: 3.43%

Fiserv also released a report projecting home prices to appreciate at an average of 3.7% annually over the next five years.

The average pre-bubble (1987-1999) annual appreciation was 3.6%

source: THE KCM CREW

A Good Week for Housing

monopoly-houseThe housing recovery showed signs of strengthening this week, as two new reports showed home sales and prices on the upswing.

Existing-home sales have soared nearly 8 percent from a year ago, the National Association of REALTORS® reported this week. Meanwhile, the new-home market also is showing signs of recovery, with starts rising 29.1 percent over year-ago levels, according to the Census Bureau.

What’s more, home builders are getting more confident about the market with recent sales, future sales, and buyer traffic. Homebuilder confidence reached its highest level since the housing-boom time of June 2006, according to this month’s index of homebuilder sentiment.

Also this week, fixed-rate mortgages this week were at all-time record lows or near it, helping to keep home buyer affordability high, Freddie Mac reported in its weekly mortgage market survey.

With a drop in inventory of for-sale homes nationwide, many markets are also seeing an increase in home prices. The median home price is $187,400, a 9.5 percent increase over year-ago levels. Also, “that marked the sixth consecutive month of price increases, the first time that has happened since May 2006, near the very peak of the housing price boom,” CNNMoney reports.

“We have a real housing recovery taking root, and that has positive implications for the broader economy,” Sal Guatieri, senior economist at BMO Capital Markets, told the Associated Press. “If home prices continue to rise, so, too, will household wealth and consumer confidence.”

Source: “Housing Recovery Blossoms,” CNNMoney (Sept. 19, 2012) and “Housing Recovery Stirs in August,” Associated Press (Sept. 19, 2012)

Top 10 Reasons To Buy 6607 116th Ave NE, Kirkland, WA


10 – The Lot: At just over a third of an acre, this large lot puts all 13,503 square feet to its best use.

9 – Places To Play: The back yard features a generous grassy area for hours of play, while the front of the home has an enormous space for a competitive game of hoops.

8 – The Location: Close to multiple bus stops (238 / 245 / 265 / 277 / 889), if carpooling is your gig, the park and ride is just over a block and a half away.

windows7 – The Master Suite: Situated in its own wing of the home, the master suite has a large walk-in closet with built-in armoire along with a Jacuzzi tub, granite counter double sinks and glass shower.

6 – The Floor Plan: The gourmet kitchen is decked out in granite and walnut. Eat in the nook or at the bar.  When a more formal atmosphere is desired, or for those large events, the inviting dining room, that comfortably sits twelve, is at the ready.

5 – Let There Be Light: With 16’ ceilings and windows galore, there is always light in main livings space.

Trail Map4 – Bridle Trails State Park: One block to the south is an amazing place to explore. The park is 482 forested acres with 28 miles of equestrian/pedestrian trails. There are three marked trail loops of varying distance. See the trail map for details.

3 – Plenty Of Room: With 5 large bedrooms, there is plenty of room to configure a variety of schemes. If a home office is needed, there’s a place. A craft room? You got it!

Theater-TOP-GUN2 – The Entertainment Room: The home theater /game room has a 12.5’ foot screen for huge visuals and the sound effects are provided by the 7.1 surround sound, all the while comfortably seated in plush leather theater seats.

The #1 reason to live here… This house was custom built in 2001! It has been meticulously maintained and enhanced.  Ready to move right in and enjoy a better than new home with nothing to update!

For all you need to know about this home, go to:

Is It 2007 All Over Again?!

back-to-the-future-deloreanMay of 2007 was a hot month for real estate, 7311 units went pending that month. May 2012, 7295 units went pending and was the second hottest month since then, just off the peak month of April 2011.

All of King county is crying for more inventory and median prices are creeping and in some areas leaping up! Area 530 saw an increase of nearly 20%. Countywide median prices bumped up 4.93% and Eastside 1.22%

Some outlying areas are not feeling the boost. As always real estate prices are neighborhood specific.

Multiple offers continue to be the trend while 48.25% of listings sold in the first month during April. Both buyers and sellers require preparation, not everyone is aware the bottom was hit last fall and most of the screaming deals are gone. Several sellers who could not sell last year or in 2010 have been pleasantly surprised with quick sales this year enabling them to move up.

June sales may tick down in units, typical most years but the current pace does not feel typical so stay tuned.

  Residential Condo

Current Residential Active Eastside/King County Listings



New Eastside/King Listings in The Month



% of change in Active Listings 2011-2012 East/King



Pending Eastside 2012

1012 +25.71%

291 +21.25%

Closed Eastside 2012

651 +19.01%

222 +18.72%

Closed King 2012

2056 +24.3%

562 +24.89%

Median Sales Price Eastside/King



% Change in Median Price Eastside/King

1.22 /4.93

1.1 /-2.33

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