Metro Area Home Prices and Affordibility
Some leading housing and economic experts are questioning whether the housing momentum we experienced in 2013 began to slow later in the year. Other real estate market experts have claimed the housing market is still trying to find its footing, blaming the housing market slowdown on rising interest rates.
The National Association of Realtors (NAR) just released their 2013 4th Quarter Housing Report. The report revealed that home sales numbers barely outperformed (an .08% increase) those in the 4th quarter of 2012. There were less rising markets than seen in the third quarter, when price increases were recorded in 88 percent of metro areas from a year earlier, with 33 percent rising at double-digit rates, reflecting a slowdown in price growth. But this is actually not bad news. Because there are more buyers than sellers in the current real estate market, lower home sales will actually HELP to relieve some of the pressure of home price growth. It will also allow home prices to rise slowly at a single-digit growth rate in 2014.
According to NAR’s recent report, total existing-home sales, including single-family and condo, fell 7.8 percent to a seasonally adjusted annual rate of 4.94 million in the fourth quarter from 5.36 million in the third quarter, but were 0.8 percent above the 4.90 million level during the fourth quarter of 2012. In the Western part of the United States, the housing market saw existing home sales drop to 12.7 percent in the fourth quarter and 8.1 percent below a year ago. Because of notably low inventory, especially in Southern California housing markets, the median existing single-family home price jumped 15.5 percent to $286,200 in the fourth quarter from the fourth quarter of 2012.
In the fourth quarter of 2013, the five most expensive housing markets were as follows:
- San Jose metro area – median existing single-family price was $775,000
- San Francisco – $682,400
- Honolulu – $670,800
- Anaheim- Santa Ana- $666,300
- San Diego – $476,800.
The national figures from NAR is useful in that it provides a background, but what is comes down to is supply and demand in a given neighborhood. Although metropolitan area figures can paint a good picture of local housing markets, there can be widely varying conditions within a metro area. This is why it is best to work with a qualified local realtor who has the resources available to them and can provide greater detail on specific locations.
Thinking of buying or selling a home in the La Jolla area? As consistent Top Producers in real estate, Linda Daniels and The Daniels Group are your La Jolla housing specialists. Working with The Daniels Group will give you with the advantage of having local experts to ensure that you have a successful real estate transaction. From buying, selling and investing to financing options and more, we have the expertise and resources to help you achieve your goals. Call us today at (858) 361-5561 or email us anytime by clicking here.