Did an Unseasonably Warm Winter Cause Spring Home Prices to Escalate?
We experienced an unseasonably warm winter, at the same time housing prices pushed higher, according to Clear Capital’s recently released Home Data Index (HDI) report, showing national quarterly home price growth at 0.9 percent.
The Spring market boom started early this year and stronger than usual. Spring home prices are up in almost every major housing market throughout the U.S. Regionally here in the Phoenix Valley buyers are scrambling, as inventory is stagnant and homes in the first-time-buyer range are flying off the shelf.
Regional quarterly price growth, per the report, was mixed: 0.7 percent in the Northeast, an increase; 0.8 percent in the Midwest, a decrease; and 1.0 percent in the South and West, unchanged. Home prices in 16 of the top 50 largest metropolitan areas—which contain one-third of the nation’s housing stock—have moved past bubble-era peaks. The result, according to Clear Capital Vice President of Research and Analytics Alex Villacorta, is a majority-shift toward positive equity.
Short Sales are rare and the availability of bank-owned properties has been reduced to a trickle. Investors looking for a bargain are wisely making purchase offers sight-unseen, then using the contracted inspection period to asses needed updates and repairs. This is actually a shrewd strategy for any home buyer shopping in the 200’s and under price range as homes within the entire ‘affordable’ spectrum are nowadays the subject of multiple offers.
“Following several rounds of healthy, peak-season summer growth, winter gains remained relatively healthy across much of the country,” says Villacorta. “As prices have continued to climb in the long term during the post-housing crash, the large portion of the housing market that has been frozen in negative equity has shrunk significantly—meaning that an increasingly large portion of previously underwater homeowners may now have the option of entering the market.”
The market in Portland, Ore., which saw the highest home price growth in the nation in 2016, continues to rank at the top of metropolitan areas measured in the report, growing 2 percent quarter-over-quarter. Another booming market, however—San Jose, Calif.—saw negative quarterly price growth, down 0.3 percent. Hartford, Conn., saw identical negative growth.
Forty percent of homeowners who bought a house during the bubble will regain equity by the end of this year, according to the report, provided prices mirror 2016 movement.
With the current Spring growth, the majority of homeowners in the Greater Phoenix Metro Region have recovered equity, and many have even gained equity over and above the height of the bubble. There does seem to be residual hesitation however, as home sellers are still tentative. My best advice if you are considering selling your home, is to contact your local Realtor for detailed market statistics and an analysis of your property so you have the facts and figures to make an informed decision. As a policy, I never charge for a comprehensive market analysis and there is, as always, no obligation, you would be free to list your home with whomever you choose.
For more information, Call or Text: 602-999-0952
eMail: email@example.com Bill Salvatore / Arizona Elite Properties
Residential Sales, Marketing, and Property Management
Source: Clear Capital Reprinted with permission from RISMedia. ©2017. All rights reserved.
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