August Newsletter

Reminder: We are not printing newsletters to mail out so if you want a hard copy of this great little piece you can print out the PDF. Enjoy!

http://teampatereau.files.wordpress.com/2013/08/over-the-fence-august-2013.pdf

Pending Sales Slip in June, but Soar Above Last Year's Levels

 

By Gino Blefari, President and CEO, Intero Real Estate Services, Inc.

 

Pending home sales, a key indicator pointing to short-term market projections, eased back from a six-year high in June as rising interest rates and restricted supply began to impact buyers.

 

The National Association of Realtors' latest Pending Home Sales Index was down 0.4% in June from 111.3% in May, but still 10.9% above the same month a year ago when it was 100%.

 

Regionally, the pending sales index fared the best in the West where it jumped 3.3% to 114.2% and is 4.4% above where it was a year ago. The index remained unchanged in the Northeast at 87.2, while coming in 12.2% higher than year ago levels.

 

In the Midwest, the index fell 1% to 114.3%, but was 19.5% higher than it was a year ago. And pending sales in the South fell 2.1% to an index of 118.3% in June, which was 9.5% higher than the same month last year.

 

Does this mean summer is over and markets will ease through the end of the year? Not necessarily.

 

The fact that pending sales are still notably higher across the U.S. than they were at this time last year bodes well. What we're seeing in the month-to-month slippage is more likely to be from the recent rise in interest rates, as well as continued low supply in markets where there is healthy demand.

In some places, buyers are either getting outbid due to excessive competition or they simply cannot find a home that suits their needs.

Because of this, new construction is another indicator we all should watch closely. I expect to see much more aggressive building in the next five years in markets where land is abundant.

 

With demand so high and interest rates still incredibly attractive, many markets could probably see sales increase substantially if there were more opportunities to buy.

 

Pending sales may have slipped, but the fact is the market is still moving pretty well in many areas. Supply is the wildcard this year.

 

Watch the video on the NAR's Pending Home Sales Index by clicking below:

 

 

Prize Drawing at Open House

2 Homes on 1 Lot - For Sale - 328 4th Street, Gilroy

As you can see from the pictures, this property needs some work. This is an AS IS sale so we got all the inspections (Property, Roof, Termite) and have the reports, along with the title report at the property and available to email to you. We’re going to have 328 open on Saturday & Sunday because it is vacant. The other house, 324, is rented so we’ll make an appointment for you to see that one. Just contact us. This is a probate sale, but it does not require court approval.

Property Flyer.

Summer's "Life Hacks"

We like most of these ideas. We think you might like a few of them too. However, about #2: Really? A great big bottle of shampoo at the beach. We think that's a dead giveaway that something's in that bottle besides shampoo.

 



New House New Yard

Friday Night in Gilroy

Had a great dinner last night at a wonderful new burger café in Gilroy – Café 152 Burger Co. Locally owned by Bruce Haller, this restaurant offers burgers with a capital B. We enjoyed several different hamburgers including this month’s garlic-laced special, the Big Roy, and the mushroom burger. We added fries and onion rings and had a feast. Their chipotle ketchup kicked it up a little too. What a fun family time we had. It’s good to live in Gilroy!

Some Markets Get a Summer Boost in Available Homes for Sale

By Gino Blefari, President & CEO, Intero Real Estate Services, Inc.

Remember that much-needed housing inventory we've been discussing here? It's raising its head above the fold.

The number of homes listed for sale nationwide climbed 4.3% in June to 1.9 million homes, according to data in the Wall Street Journal pulled this week from Realtor.com. It was the highest level we've seen in a year.

Does this mean we're over the hump? Potentially.

Even with the improvement in monthly gains, inventory levels continue to be below year-ago comparisons. The number of homes listed for sale nationwide in June was 7.3% below levels of last year. But note the improvement from February, when inventories were 18.6% below the year before.

Inventories were up in 20 cities in June compared to May, with a notable spike in Southern California where available home listings jumped 51.5% in Orange County, 45.7% in Los Angeles, and 18.1% in San Diego.

The data pointed out four markets of the nation's largest 30 where the number of listings was above last year's levels. They were: Sacramento (up 11%), Atlanta (up 10.9%), Phoenix (up 6.2%), and Miami (2.2%).

On the opposite end of the spectrum, five cities had inventory levels that were well below last year's levels, including Boston (down 35.1%), Denver (down 30.1%), Detroit (down 25.7%), Seattle (down 23.2%), and San Francisco (down 21.7%).

The falling numbers in these cities isn't a good sign for buyers. Markets will continue to be tight, at least in the short term, as demand remains high. We may see further price increases as a result.

On the other side, however, a tightened supply and healthy demand could help more homeowners in these markets jump off the fence and list their homes for sale if they've been waiting for more signs the market is back.

It's a tough balancing act. But all in all, inventories appear to have reversed their freefall in some markets, while continuing to be scarce in others. As with all things real estate, it's all about location. That's why it's always so difficult to answer the question everyone wants to ask, "How's the market?"

Stay tuned as we continue to watch these numbers closely.

Real Estate Prices Going Up - Infographic

It’s all about recovery, and it appears our area is well on the way. If you’re buying in one of these areas there are challenges. If your selling in one of these areas there are different challenges. We can guide you through your challenging real estate transaction.

 

 

Hot Spring Leads to a Hot Summer Ahead

By Gino Blefari, President & CEO, Intero Real Estate Services, Inc.

  The rise in prices means more homeowner equity, which could lead to more available inventory if more people jump off the fence and list their homes for sale. It could also lead to more buyers – especially first-timers – being priced out.

The positive pending home sales report means that the hot spring will spill into summer in many parts, since pending sales are an indicator of things to come. These are sales that are under contract but haven't closed.