La Quinta, California

La Quinta, California
Desert Luxury

Desert Luxury Realty

Thank you for visiting my blog. When you choose Mary Williams, as your real estate agent, you are working with a team of seasoned professionals who cater to your every real estate need. Buying or Selling your home does not need to be full of hassels or needless pressure. Take it easy and enjoy the luxury of the desert. I look forward to assisting you with your search or sell of your home. Contact me today!

Friday, January 18, 2013

Real Estate Trends for 2013

After a seven-year downturn, 2013 is expected to be the year of a turnaround, as experts forecast home sales and prices to go up. If you’re wondering whether or not you should buy, sell, or stay put, follow our guide for the biggest real estate trends of the year.

Home Prices to Rise

In April 2012, after receiving the first quarterly sales reports of the year, real estate analytics company Trulia reported that home price depreciation had finally slowed and bottomed out. In fact, throughout 2012, prices actually began to rise in a manner not seen for two years. For 2013, Trulia heralds more good tidings, with prices expected to rise even further than they did in 2012. “Price gains picked up steam in 2012,” said Trulia Chief Economist Jed Kolko. “In 2013, rising prices will encourage more new construction and some homeowners to sell, which will help alleviate the current inventory shortage.”

Foreclosures Falling

In Phoenix, Az., one of the hardest hit cities in the housing crash, foreclosures created a bottleneck for home sales. However, experts say that the foreclosure inventory is attenuating. Keller Williams realtor Kelly Cook says foreclosures are quickly moving through the market. “Foreclosures have almost completely fallen off,” Cook says. “They are less than ten percent of the market right now.” Because of the $25 billion federal settlement last year, banks have more incentive to speed up the foreclosure process. As homes auctioned in foreclosure exit the market, local real estate values will rise, and a smaller inventory will fuel greater demand.

Buyer Turnout

Because mortgage rates are at historically low levels and homes are still affordable, buyers are turning out in droves. However, as inventory shores dry up, buyers will struggle to find the perfect home, and they may have to settle for less than they were hoping. “You're seeing a lot of people having to settle for a house they don’t really want,” Cook says. “That’s because 3 months ago they could have had this, for that, but it’s not available anymore; it’s gone. It's a thing of the past.”

Rent Hikes

For the past three years, rental fees at major apartment complexes have risen by $155 a month, and experts agree that rents are expected to soar even higher in 2013. The National Association of Realtors projects rents to increase by more than 4 percent on average. Reis, Inc., another market researcher, predicts that rents will rise by 4 percent or more annually until 2015. The increase in rent will be driven by growing demand for rental units, as boomerang kids decide to move out of their parents’ basements for more independence.

Wednesday, January 2, 2013

Home Prices Jump in 3rd Quarter

Once again, all signs point to a housing recovery. Following the pattern of housing construction starts and rising demand, home prices jumped to values not seen in three years. According to the most recent quarterly reports, home prices jumped 3.6 percent from the previous quarter.

“Home prices rose in the third quarter, marking the sixth consecutive month of increasing prices,” said David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices.
One of the factors contributing to the reinvigorated housing market includes improved jobs numbers, with unemployment falling 1.2 percent over the last 24 months. Experts also attribute the nascent housing recovery to record low mortgage rates, which compel more homeowners to refinance, freeing up cash just in time for the holiday shopping frenzy.
Across the country, 17 of 20 cities saw home price gains compared to this time last year. Phoenix led the price jump with home prices growing more than 20 percent annually.

“With six months of consistently rising home prices, it is safe to say that we are now in the midst of a recovery in the housing market,” Blitzer said.

Even though home prices seem to be improving nationally, some cities are left out. Compared to last year, home prices in New York and Chicago declined 1.5 and 2.3 percent, respectively. Home price levels in Atlanta remained the same year-over-year.

With the news of improved housing prices, economists are saying that the housing industry will recover at a sustainable rate, unlike the skyrocketing housing market of the 90s and early 2000s. “All the signs point toward a continued housing recovery,” says Rick Sharga, executive vice president of Carrington Mortgage Holdings in Santa Ana, Calif. “Pending sales are up, existing sales are up, along with housing starts, and home prices are down.”

However, experts warn that the economy is one catastrophic event away from spiraling back into declining housing numbers. One such event specifically mentioned is the looming fiscal cliff crisis. Three factors in the fiscal cliff debate could implode the housing recovery: the expiration of the mortgage tax deduction, the expiration of the mortgage debt relief exemption, and the capital gains tax on families earning more than $250,000.

These new taxes could freeze up extra cash, turning away potential and second-time homebuyers. They could also fuel more foreclosures for families already struggling to make mortgage payments, besides adding unanticipated tax bills come January.

Despite the looming financial storm, economists expect Congress to reach some sort of patchwork agreement to prevent the aforementioned taxes from stalling the housing recovery. All signs point to a continued recovery in 2013.

Particularly for areas hardest hit by the 2008 housing crash, improving home prices indicate a more stable real estate market, similar to that seen in 2003. “Home price gains are becoming more widespread across cities, and some of the largest rebounds have been in areas that were most heavily affected during the initial housing slump,” said Barclays Capital’s Cooper Howes. “We expect this trend to persist into next year as part of a broad-based housing recovery that includes starts, sales, and prices.”