HomeServices of America, a Berkshire Hathaway affiliate.
Housing Lifts Post-election Economic Outlook
With the election behind us, most of the uncertainty that held U.S. markets in suspense is gone. Much of the good news lifting consumer confidence is in the housing sector, which is showing strong signs of stability and recovery.
The rate of home ownership has returned to a more sustainable 65.4%, the same as the mean set in 1997, according to the U.S. Census. “National credit scores are the highest they’ve been in 12 years,” says David M. Cabot, CEO of Prudential California Realty. “The housing market is returning to normal, with more qualified borrowers adding stability and increasing demand.” Benchmark 30-year fixed rate mortgage interest rates hovered near all-time lows in November, making borrowing costs for housing compared to other forms of credit irresistible. Home prices have risen nationwide for seven straight months and housing inventories are below six-month levels, found the National Association of REALTORS®. In California, housing supplies arecritically short. September sales volume was down 5.2% from August on a tight 3.7-months’ supply, reported the California Association of REALTORS® (C.A.R.).
David M. Cabot CEO
The median price of a single-family detached home in California was $345,000 in September 2012, up 19.5% from $288,700 the previous year, according to DataQuick. Median California home prices peaked at $484,000 in 2007, hit bottom at $221,000 in 2009 and are currently at $287,000, the highest level since August 2008. “There’s still good news for buyers,” observes Leeann Iacino, COO of Prudential California Realty. “While California prices were rising rapidly, the typical mortgage payment for borrowers remains 63.9 percent lower than the 2006 peak. It’s an excellent time to buy a home.”
Prudential California Realty is proud to be a member of the Berkshire Hathaway family of companies, with a network of offices spanning Orange County. Prudential California Realty offers the backing of an industry leader, combined with the benefits of a team of local experts strategically positioned throughout Orange County, proven marketing systems and a nationwide referral network. Innovative services for agents, including the online seller’s advantage and client for life programs, and continuous, in-person training opportunities, which coverthe latest legal updates and marketing strategies, are provided with a goal of matching buyers and sellers together. To contact the best qualified Realtor, visit www.prudentialcal.com. An independently owned and operated member of BRER Affiliates Inc.
