Buyers Grow Resistant to Higher Home Prices:

Buyers are pushing back against higher home prices, according to the latest Credit Suisse monthly survey of real estate professionals. Overall, agents in 37 of the 40 markets surveyed in September reported lower-than-expected buyer traffic, up from 31 markets in August.

Some housing analysts are concerned that the sudden rise in home prices could ma...ke homes more unaffordable again if the price increases outpace income growth.

“Many buyers have shifted from a negotiation mindset toward a willingness to sit on the sidelines and wait for lower prices,” according to the survey. “The resistance of buyers to higher home prices was broad-based with comments from agents suggesting that affordability and the future trajectory of home prices was a particularly large part of conversations with buyers.”

The median price of existing-homes has risen by 25 percent in the past five years to $219,800 in August. The median price of new homes has increased even more, up 33 percent, to $275,600 during that time period.

Real estate professionals in several of the largest housing markets are complaining about lackluster growth heading into the fall. For example, the Credit Suisse report showed that in Phoenix, Ariz., many real estate professionals report that housing demand is being challenged by sluggish job growth. They say many sellers have over-priced their homes and are unwilling to negotiate. In Atlanta, real estate professionals blamed dropping buyer traffic on the lack of quality inventory.

“To purchase a house you have to have confidence in the future and the buyers are very uncertain about the future,” the Atlanta agents surveyed said in the report.

Even in Dallas, where the housing market is strong and more buyer traffic has been reported since the spring, real estate professionals say low inventories are hampering growth. Dallas real estate professionals are “relying on new builds much of the time but even that inventory remains low,” according to the survey.

In Houston, another strong market, agents reported that relocation activity has slowed in September, but the market there is returning to normal levels after more than three years of price increases and high home sales.
Source: “Here’s how the top 5 Housing Markets Look for Fall Homebuying,” HousingWire (Oct. 3, 2014) and “Home Prices Sapped Home-Buyer Traffic in September,” iMarketReports.com (Oct. 3, 2014)

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Rick Funk Century 21 Alpha for over 34 years of Real Estate Excellence!
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(408)629-6099

 

 

6 Cities Where Incomes Are Rising Most:

 

The real per capita GDP rose a modest 3.8 percent from 2010 through 2013, according to Bureau of Economic Analysis data. But in a few metro areas — mainly those that have large technology sectors or ...are in energy-boom areas — incomes have risen much faster, by up to 13.2 percent in the same timeframe.

What's more, much of the gains are in the nation's "long-distressed industrial heartland metro areas, as the combination of energy development and a resurgent automobile industry have boosted regional GDP," Forbes.com reports.

Many analysts have called wage growth the key behind a more heated housing market. Could these income-rising markets see big gains coming? An analysis by urban expert Aaron Renn at Forbes.com shows some of the cities where per-capita income is rising the most.
1. Houston-The Woodlands-Sugar Land, Texas
Rise in real per capita GDP (2010-2013): 13.2%
2013 per capita GDP: $72, 258
2. San Jose-Sunnyvale-Santa Clara, Calif.
Rise in real per capita GDP: 11.5%
2013 per capital GDP: $100,115
3. Portland-Vancouver-Hillsboro, Ore.-Wash.
Rise in real per capita GDP: 9.2%
2013 per capital GDP: $68,810
4. Columbus, Ohio
Rise in real per capita GDP: 8.2%
2013 per capital GDP: $54,493
5. Grand Rapids-Wyoming, Mich.
Rise in real per capita GDP: 7.8%
2013 per capital GDP: $44,482
6. Charlotte-Concord-Gastonia, N.C.-S.C.
Rise in real per capita GDP: 7.7%
2013 per capital GDP: $55,802
Source: “The Cities That Are Benefiting the Most from the Economic Recovery,” Forbes.com (Oct. 6, 2014)

Rick Funk and Century 21 Alpha over 34 years of Real Estate excellence producing Record Breaking Sales and Awarding Winning Service to my clients.
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(408)629-6099

 

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My Clients, fans and followers ROCK!
Thank you so very much for the Over 3000 Facebook likes on my page. You continue to amaze me with your business and support!

Rick Funk Century 21 Alpha with over 34 years of excellences in Real Estate! Producing Record Breaking Sales and Awarding Winning Service!
(408)629-6099 C21Funk@aol.com WWW.RickFunk.com

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  229 Manley Court, San Jose CA 95139
Just reduced: $749,900 Lowest price per Sq. Ft. of any home in Santa Teresa Area!

Welcome home to this beautifully updated and custom foothill home.
This fine h...ome boast 5 good size bedrooms including two generous Master bedrooms, one on the upper level and one downstairs, and 2 master baths., plus a guest bath. Newer central A/C & heating make this home warm in the winter and cool in the summer. Cozy and warm fireplace in the family room. Good size 2 car garage, with extra storage is an added bonus. Added benefit of solar panels and solar heating for endless pool Great schools, neighbors, shopping, dining, with access to nearby 2500 acre Santa Teresa country park & Golf course. The separate living, family room / kitchen areas, make for a wonderful floor plan for the young family or anyone that just likes living in style.

Recap of features:
Custom Santa Teresa Foothill home boasting ….
5 bedrooms. Including 2 master bedrooms
3 baths.
Newer Central Heating & Air conditions, solar electrical and pool heater
2 car garage with roll up door and opener plus tank less on demand
h2O heater 2630 Sq. Ft. per builder & county records, with tons of additional storage.
Over sized 6000 Sq. Ft. lot per county records, “S.F . not confirmed by agent.”
Separate living, kitchen/dining/ family, areas.
Located on one of the finest streets in Neighborhood & Santa Teresa Park.
"P.S. the downstairs master bedroom, now orange is being painted off white this weekend".

Let Me show you this home, neighborhood, and value that will be yours when you make this your Dream Home.
Century 21 Alpha Rick Funk (408)629-6099 C21Funk@aol.com

When Mortgage Rates Rise

 

 

 

 ...Mortgage rates have hovered around yearly lows for weeks. But with rate-hike forecasts looming, can buyers count on borrowing costs to stay low?

Many economists are now predicting the average 30-year fixed-rate... mortgage to reach 5 percent by the middle of the next year, The New York Times reports. On Friday, Freddie Mac reported the 30-year fixed-rate mortgage averaging 4.20 percent. The hike in rates is partially due to the Federal Reserve’s plan to withdraw from buying mortgage-backed securities.

Learn how interest rates and reluctant sellers are affecting housing inventory and how you can help home owners see beyond the percentage points.

Economists note that while a 5 percent mortgage rate is low by historical standards, such an increase still has the potential of reducing buying power in a home purchase. For example: According to some estimates, a 1 percent increase in interest rates can raise a monthly mortgage payment on a typical home by more than $700 in pricier parts of the country. The increase would likely be much more modest in other, less expensive markets.

But even in the case of rate hikes up to 7 percent, the analysis found that homes remain affordable overall. From 1985 to 2000, home owners’ housing costs—including the principal and interest on a median-priced home—accounted for 22 percent of a home owners’ median household income. However, for comparison, today’s households are spending about 15 percent of their median income on a median-priced home. Source: “When Mortgage Rates Rise,” The New York Times (Sept. 25, 2014)

Now is the time Buyers, don't put it off any longer, you will regret it!

Century 21 Alpha Rick Funk for 34 years of Real Estate Excellences!
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Were you one of the many that have built equity in your recent Real Estate purchase?

Where Home Prices Surged in August: Several markets that saw accelerating home prices in August reached new home price peaks, according to a new housing ...report by RealtyTrac.

Ohio markets in particular stood out. For example, Cincinnati saw a 22 percent annual appreciation in August compared to a 4 percent depreciation a year ago. Cleveland posted a 23 percent annual appreciation in August compared to a 1 percent last year, RealtyTrac reports.

With investors pulling back, conventional home buyers are finding their way back into the market.

“The Ohio markets continue to experience an increase in overall pricing, but a noticeable decline in total units sold,” says Michael Mahon, executive vice president/broker at HER REALTORS®, covering the Cincinnati, Columbus, and Dayton markets in Ohio. “The declining year-over-year sales unit numbers can be attributed to the lack of available inventory, particularly within the first-time home buyer price range. As cash sales continue to decline within the Ohio markets, the available inventory is continuing to experience improvement, which shows further stability and growth of the Ohio housing stock.”

Here’s a look at the major markets posting some of the largest home price appreciation in August compared to a year ago, according to RealtyTrac.
1. Cincinnati: 22% annual appreciation in August; 4 percent depreciation a year ago
2. Cleveland: 23% annual appreciation in August; 1 percent depreciation a year ago
3. Miami: 20% annual appreciation in August; 15 percent depreciation a year ago
4. Pittsburgh: 7% annual appreciation in August; 3 percent depreciation a year ago
5. Seattle: 8% annual appreciation in August; 7 percent depreciation a year ago.

Of the 197 major markets tracked, 22 cities—or 11 percent—reached new median home price peaks in August, notably Pittsburgh, Cincinnati, Columbus, Charlotte, and Austin, Texas, according to the RealtyTrac report.

Overall, RealtyTrac’s report showed that the median price of residential properties nationwide sold in August—including both distressed and non-distressed sales—was $195,000, up 3 percent from the previous month and up 15 percent from a year ago. It is now at the highest level since August 2008. Source: RealtyTrac

Century 21 Alpha Rick Funk C21Funk@aol.com WWW.RickFunk.com (408)629-6099
Over 34 years of Real Estate Excellence!

 

 

Consumers Aren't Losing Confidence in Home Prices:

Despite the pace of home sales and home price appreciation slowing, most Americans remain optimistic about the housing market. More than half of Americans – 53 percent -- recently surveye...d say they believe home prices will continue to rise within the next 12 months, according to Bankrate’s September Financial Security Index, a survey of more than 1,000 adults about their personal finances.

Yet, those expected home price rises didn’t stretch to everyone: Those living in suburban and rural areas were more than twice as likely to say that prices would drop compared with urban dwellers.

"This may not be a great market, but it's a good market," says Jed Smith, managing director of quantitative research at the National Association of REALTORS®. "Prices are still increasing. The market is just stabilizing." The median expected price increase among NAR’s REALTOR® members for the next 12 months is 3.4 percent, Smith notes.

In the Bankrate.com survey, only 8 percent of respondents said they believed home prices will fall while 31 percent said they felt prices would hold steady.

"If they are confident in the housing market, they are more likely to participate and maybe put in a bid that is closer to the asking price," says Greg McBride, Bankrate's chief financial analyst. "People in a lot of markets are getting close to the asking price, if not more."

Americans’ overall optimism over home prices may stem from greater confidence over their personal finances. Americans are feeling more financially secure, in their job security and net worth, according to the index. Twenty-six percent of Americans feel more secure about their jobs compared with a year ago, and 27 percent of respondents said their net worth is higher this year than last year.

"Housing is one of two things — the stock market being the other — that consumers look to as an indicator for whether things are headed in the right direction or the wrong direction," says McBride. "The expectation of continued home-price increases underscores an expectation for continued improvement in the job market, household finances, and the overall economy." Source: “September 2014 Financial Security Index Charts,” Bankrate.com (September 2014) and “Consumers Still Expect Rising Home Prices,” Bankrate.com (September 2014)

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One more sign of Real Estate market improvement. ....

 Builder Confidence Rises Across the U.S. Builder confidence in the market for new, single-family homes rose two points in August, bringing the National Association of Home Builders/Well...s Fargo Housing Market Index to its highest score since the beginning of 2014.

NAHB surveys builders across the country and asks them to rate their sales expectations for the next six months, their confidence in current single-family home sales, and their perceptions of prospective buyer traffic.

“Each of the three components of the HMI registered consecutive gains for the past three months, which is a positive sign that builder confidence appears to be firming,” NAHB chief economist David Crowe said in a statement.

Builder confidence in current sales conditions rose to a score of 58, while expectations for future sales rose to 65. The third index, which gauges expectations for prospective buyer traffic, hit 42.

Scores rose regionally, as well, with the Midwest experiencing the biggest point increase from 48 to 55. The Northeast’s score, which is the lowest in the country, rose from 36 to 38. The HMI score in the South rose by just one point to 52, while the West’s score went up to 56.

The overall increase in the HMI index can be attributed to factors including sustained job growth, historically low mortgage rates, and affordable home prices, Crowe said. Source: NAHB

Century 21 Alpha Rick Funk 34 years of service to my clients / friends for all their Real Estate needs.
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OVER 2000 LIKES!

 

Today in San Jose, California

Amazing and wonderful response to Century 21 Alpha Rick Funk Business Page. Over 2000 Facebook Likes and so many friends and clients utilizing today's technology to stay current with the ever changing Real Estate market. Thank you again for all your support and continued business.
Rick Funk

Just listed: 472 CURIE DRIVE SAN JOSE CA 95123

OPEN HOUSE SATURDAY 12:00P.M. - 4:00 P.M. AUGUST 16TH.

Welcome home to this beautifully upgraded and customized home.
This fine home boast 3 good size bedrooms including the generous Master bedroom plus a den study, and 2&1/2 baths. Central A/C & heating make this home warm in the winter and cool in the summer. Cozy and warm fireplace in the family room, plus double pane windows through out. updated roof and 2 car garage are an added bonus. You’ll love the fact that this hme backs to foothills with neighboring homes giving you an unobstructed view of the foothills and open area. A neat and trim landscaping theme with 2 separate patios front and rear yards lends it’s self to so many peaceful activities for you and your family. Great schools, neighbors, shopping, dining, with access to nearby 2500 acre Santa Teresa country park & Golf course. The separate living, dining, breakfast nook, and completely upgraded and remodeled kitchen make for a wonderful floor plan for the large family or anyone that just likes living in style.
Recap of features:
3/4 bedrooms. Large master suite with step up setting area. Den/loft can be converted back to 4th bedroom.
Backs up to Santa Teresa foothills.
2 & 1/2 generous baths & inside utility area.
2,256 Sq. Ft. per builder & county records, “not confirmed by agent.”
2 car garage.
Sumer fun-in-the sun swimming pool
Updated central heating and central A/C.
7,410 Sq. Ft. lot per county records, “not confirmed by agent.”
Upgraded roof, heating, AC/Heating unit
Remodeled kitchen & baths
Separate living, dining, breakfast areas.
Near Buck Nord Stables/Santa Teresa Park & Golf course.
Asking price $820,000
Any questions: Call Rick Funk (408)629-6099