Wednesday, September 17, 2014
PLACERVILLE, CALIFORNIA
99 CENTS

Most metro areas show strong annual home-price growth

By
From page HS7 | November 22, 2013 |

Subscription Required

Thank you for reading the MtDemocrat.com digital edition. In order to continue reading this story please choose one of the following options.

Current Subscribers
If you are a current subscriber and wish to obtain access to MtDemocrat.com, please select the Subscriber Verification option below. If you already have a login, please select "Login" at the lower right corner of this box.

Subscriber Verification

Special Introductory Offer
For a short time we will be offering a discount to those who call us in order to obtain access to MtDemocrat.com and start your print subscription. Our customer support team will be standing by Monday through Friday, 8am to 5pm to assist you.

Call and Save! (530) 344-5000

If you are not a current subscriber and wish not to take advantage of our special introductory offer, please select the $12 monthly option below to obtain access to MtDemocrat.com and start your online subscription

Help?

The median existing single-family home price increased in 88 percent of measured markets, with 144 out of 163 metropolitan statistical areas(MSAs) showing gains based on closings in the third quarter compared with the third quarter of 2012. Fifty-four areas, 33 percent, had double-digit increases, while 19 had price declines.

In the second quarter, price gains were recorded in 87 percent of metro areas from a year earlier, while in the third quarter of last year, 81 percent of available areas showed annual increases, but only 18 percent of markets rose by double-digit amounts.

Lawrence Yun, NAR chief economist, said market momentum is changing. “Rising prices and higher interest rates have taken a bite out of housing affordability,” he said. “However, we have the ongoing situation of more buyers than sellers in the market, so lower sales will help to take the pressure off home price growth and allow them to rise slowly at a single-digit growth rate in 2014.”

Even with the erosion in affordability, a companion breakout in this report on income requirements to buy a median-priced home on a metro area basis shows most buyers can afford a home, but less so in pricier areas.

The five most expensive housing markets were the San Jose metro area, where the median existing single-family price was $805,000; San Francisco, $705,000; Honolulu, $679,800; Anaheim-Santa Ana $670,700; and San Diego, where the median price was $485,000.

The five most affordable metro areas were Toledo, Ohio, with a median single-family price of $87,500; Rockford, Ill., at $88,900; Decatur, Ill., $91,000; Ocala Fla., $103,600; and Topeka, Kan., with a median price of $106,900.

The national median existing single-family home price was $207,300 in the third quarter, up 12.5 percent from $184,300 in the second third of 2012, which is the strongest year-over-year increase since the fourth quarter of 2005 when it jumped 13.6 percent. In the second quarter the median price rose 12.2 percent from a year earlier.

The median price is where half of the homes sold for more and half sold for less. A smaller market share of lower priced homes accounts for some of the price growth. Distressed homes — foreclosures and short sales generally sold at discount — accounted for 14 percent of third quarter sales, down from 24 percent a year ago.

At the end of the third quarter there were 2.21 million existing homes available for sale, modestly higher than the third quarter of 2012, when 2.17 million homes were on the market. However, with higher sales, the average supply during the quarter was 5.0 months, down from 5.9 months in the third quarter of 2012.

Total existing-home sales, including single-family and condo, rose 5.9 percent to a seasonally adjusted annual rate of 5.36 million in the third quarter from 5.06 million in the second quarter, and were 13.0 percent above the 4.74 million level during the third quarter of 2012. Sales were at the highest pace since the first quarter of 2007, when they reached 5.66 million.

According to Freddie Mac, the national commitment rate on a 30-year conventional fixed-rate mortgage averaged 4.44 percent in the third quarter, up from 3.69 percent in the second quarter and 3.54 percent in the third quarter of 2012; the commitment rate is at the highest level since the second quarter of 2011 when it averaged 4.66 percent.

NAR President Gary Thomas, broker-owner of Evergreen Realty in Villa Park, said continued access to safe, affordable financing is critical. “NAR firmly believes that hardworking, creditworthy consumers should be able to achieve their dreams of owning a home,” he said. “As legislators and regulators consider reforms to the secondary mortgage market, they must ensure that mortgage capital is available under all economic conditions so that qualified homebuyers have access to safe, affordable loan products.”

A separate breakout of qualifying incomes to purchase a median-priced existing single-family home on a metropolitan area basis generally shows potential buyers had adequate income in most areas to purchase in the third quarter. Income requirements are determined using several scenarios on down-payment percentages, which assume 25 percent of gross income is devoted to mortgage principal and interest, with a mortgage interest rate of 4.4 percent.

The national median family income of $63,800 would readily qualify a buyer to purchase a median-priced home in the third quarter. However, to purchase a home at the national median price, a buyer making a 5 percent down payment would only need an income of $47,800. With a 10 percent down payment the required income would be $45,300, while with 20 percent down, the necessary income is $40,200.

In the condo sector, metro area condominium and cooperative prices — covering changes in 55 metro areas — showed the national median existing-condo price was $205,400 in the third quarter, up 15.1 percent from the third quarter of 2012. Forty-nine metros showed increases in their median condo price from a year ago and six areas had declines.

Regionally, total existing-home sales in the Northeast jumped 10.5 percent in the third quarter, and are 15.9 percent above the third of 2012. The median existing single-family home price in the Northeast was $256,800 in the third quarter, up 4.5 percent to from a year ago.

In the Midwest, existing-home sales rose 8.8 percent in the third quarter, and are 17.4 percent higher than a year ago. The median existing single-family home price in the Midwest increased 8.9 percent to $164,700 in the third quarter from the same quarter last year.

Existing-home sales in the South increased 4.3 percent in the third quarter, and are 12.2 percent above the third quarter of 2012. The median existing single-family home price in the South was $181,300 in the third quarter, up 12.2 percent from a year earlier.

In the West, existing-home sales rose 3.6 percent in the third quarter, and are 8.6 percent above a year ago. With ongoing regional inventory shortages, the median existing single-family home price in the West surged 17 percent to $289,100 in the third quarter from the third quarter of 2012.

Comments

comments

.

News

Fire burns CP house

By Cole Mayer | From Page: A1 | Gallery

 
Firefighters, evacuees transform Pollock Pines

By Dawn Hodson | From Page: A1 | Gallery

 
Volcanoville man shot

By Cole Mayer | From Page: A1

Italy on Wheels a hidden gem

By Larry Weitzman | From Page: B1

 
King Fire nearing 19,000 acres burned, only 5% contained

By Cole Mayer | From Page: A1 | Gallery

‘Fire in Sierra Nevada Forest’ topic at Forest Forum

By Amador-El Dorado Forest Forum | From Page: A3

 
Volunteer driver ‘Meet and Greet’ at Senior Center

By Health and Human Services Agency | From Page: A3

Fairgrounds Park n’ Ride temporarily closed

By News Release | From Page: A3

 
Be disaster aware, take action to prepare

By Health and Human Services Agency | From Page: A7

 
Disaster preparedness presentation Sept. 23

By Health and Human Services Agency | From Page: A7

Base camp a place of support and logistics

By Cole Mayer | From Page: A11 | Gallery

 
.

Opinion

Thoroughly modern

By Mountain Democrat | From Page: A4

 
My turn: Small businesses deserve more from healthcare reform

By Special to the Democrat | From Page: A4

My turn: Watershed issues and natural resource management

By Special to the Democrat | From Page: A4

 
.

Letters

Senior awareness

By Letters to the Editor | From Page: A5

 
Vote no on Measures M, N, and O

By Letters to the Editor | From Page: A5

Alger and impeachment

By Letters to the Editor | From Page: A5, 1 Comment

 
Voting

By Letters to the Editor | From Page: A5

.

Sports

Fast starts catalyst for Cougar wins

By Jerry Heinzer | From Page: A8 | Gallery

 
Old Greenwood a classic Jack Nicklaus design

By Jeffrey Weidel | From Page: A8

Ponderosa picks up first conference victory

By Mike Bush | From Page: A8 | Gallery

 
First and goal: Go-to guy

By Mike Bush | From Page: A8

Sports Scene: Sept. 16, 2014

By Democrat Staff | From Page: A9

 
Roundup: Sept. 16, 2014

By Democrat Staff | From Page: A9

.

Prospecting

Learn about Sierra Foothill perennials and shrubs

By Tripp Mikich | From Page: B2 | Gallery

 
Couple honors country, celebrates community

By Julie Samrick | From Page: B2 | Gallery

At a glance: Enjoy life

By Mimi Escabar | From Page: B2

 
TechTrek makes a difference

By American Association Of University Women | From Page: B3

Senior Day Care celebrates anniversary

By Senior Day | From Page: B3

 
FLC speaker series continues this fall

By Folsom Lake College | From Page: B4 | Gallery

 
Grow For It! Growing olives in the foothills

By Deborah Nicolls | From Page: B4

Life as I know it: Senior year — gone fishing

By Robert F. Boggus | From Page: B5 | Gallery

 
Senior Room announces speakers

By Cameron Park Community Services District | From Page: B5

.

Essentials

Building permits 9/8-12/2014

By Michael Raffety | From Page: A2

 
Crime log: Sept. 3-4

By Cole Mayer | From Page: A2

Weather stats 9-16-14

By Michael Raffety | From Page: A2

 
Correction

By Cole Mayer | From Page: A2

Lake levels 9-15-14

By Michael Raffety | From Page: A2

 
.

Obituaries

Barbara Jean Eades

By Contributor | From Page: A2

 
Ethel Fern Forsyth

By Contributor | From Page: A2

.

Real Estate

.

Comics

Sudoku

By Contributor | From Page: A10

 
Rubes

By Contributor | From Page: A10

New York Times Crossword

By Contributor | From Page: A10

 
Long Story Short

By Contributor | From Page: A10

Flying McCoys

By Contributor | From Page: A10

 
Speed Bump

By Contributor | From Page: A10

Tundra

By Contributor | From Page: A10

 
Horoscope, Thursday, September 18, 2014

By Contributor | From Page: A10

Horoscope, Wednesday, September 17, 2014

By Contributor | From Page: A10

 
TV Listings

By Contributor | From Page: A10

Shoe

By Contributor | From Page: A10

 
.

Medical Profiles

Rahimi’s dental practice built on strong roots

By Peter Tyner | From Page: MP4 | Gallery

Eskaton Village offers various living arrangements for seniors

By Peter Tyner | From Page: MP4 | Gallery

Marshall attracts nationally sought-after gastroenterologist

By Marshall Medical | From Page: MP8 | Gallery

Engineer-turned-doc enjoys Marshall Hospital’s patients

By Peter Tyner | From Page: MP8 | Gallery

Compassionate care found at Shingle Springs Health & Wellness Center

By Rachael A. McCoy | From Page: MP10 | Gallery

Four levels of assisted living available at New West Haven

By Charlotte Sanchez-Kosa | From Page: MP10 | Gallery

Trust your gut with a visit to Dr. Cummings’ office

By Pat Lakey | From Page: MP15 | Gallery

Sleep apnea specialist Dr. Bughao a ‘gentle dentist’

By News Release | From Page: MP15 | Gallery

It’s all about relationships for oral surgeon Dr. McIntire

By Jessica Cyphers | From Page: MP17 | Gallery

Family serves families at El Dorado Hills Dental

By Charlotte Sanchez-Kosa | From Page: MP17 | Gallery