How Will the Housing Market Fare This Spring?

Real estate pros often anxiously await for the spring selling season, a time known for an uptick in home sales. But will spring be as hot for the housing market this year as it has been in the past?

Since the end of last year, home sales have slowed (a decline of 10 percent in December compared to a year prior), and properties have been sitting on the market for longer (46 days compared to 30 days a year ago).

Nevertheless, Lawrence Yun, chief economist at the National Association of REALTORS®, says that “multiple data show definitively improving conditions” heading into the spring selling and buying season.

Consumer sentiment about home buying is turning more upbeat, and there have been greater reports of foot traffic at open houses, according to recent NAR surveys. The number of openings of lock boxes—which real estate pros use to access a key prior to unlocking a home for a showing—is “measurably higher” in January and February compared to the second half of 2018, according to NAR SentriLock data.

Further, the number of consumers applying for a mortgage to purchase a home is on the rise. “After the weak conditions of late last year, mortgage applications have picked up notably in 2019 with more consumers evidently searching for a home compared to one year ago,” Yun writes in his latest real estate column at Forbes.com. Also, contract signings to purchase a home rose 4.6 percent in January—another healthy sign about the market Yun points to.

With mortgage rates staying low, Yun expects more home buyers and sellers this spring. So far this year, the 30-year fixed-rate mortgage has fallen to under a 4.5 percent average. That means a typical home buyer could save nearly $100 per month due to the drop. In addition, wages are up 3.4 percent year-over-year on average, the highest rate in a decade.

“The slump is over” in the housing market, Yun notes. “Better times are ahead for home buyers.”

Source: “Boom or Bust for Spring Homebuying?” Forbes.com (March 14, 2019)

Posted on March 27, 2019 at 7:09 pm
Kimberly Parrish | Category: Uncategorized

Favorite Home

Featured In New York Times!

1225-Laurant.jpg

I LOVE this home. Showed it to my buyers who LOVED it too! It just feels like HOME.

1225 Laurent Street is a ranch style home in upper West Side Santa Cruz that was recently featured in a New York Times article. Listed by David Lyng’s Bacorn Group this 3 bed, 2 bath features arched doorways, exposed ceiling beams, floor to ceiling windows and was recently chosen as the setting of an upcoming television show on the birthplace of the modern tech industry. For more information visit:

1225 Laurent Street

New York Times Article

Photo credit Reside Visuals

Posted on February 4, 2019 at 10:35 pm
Kimberly Parrish | Category: Uncategorized

Market Minute From C.A.R.

Housing/Real Estate Market

California Home Sales Close Year on Downward Trend: California home sales declined for the eighth straight month in December, and pushed sales lower in 2018 for the first time in four years. Sales of existing, single-family detached homes in California were down 2.4% from November and down 11.6% from home sales in December 2017. The statewide median home price for the year was $570,010, up 6.0% from $537,860 in 2017, but slowed to a 1.5% annual pace in November and December.

Lower Rates Encourage Builders: After a steep decline in December, homebuilder sentiment ticked back up in January amidst lower interest rates. Expectations for current sales rose as did foot traffic through new model homes. However, despite this reprieve, builder sentiment remains near its lowest level is over two years. We should expect ongoing construction on the residential side, but growth is likely to continue to disappoint—especially in California.

Macro Economy

California Labor Market Remains Robust in December: California added another 24,500 jobs to nonfarm payrolls to close out the 2018 year. This represents a 284,300 job increase for the year, or a 1.7% expansion. This strength in the current state of the underlying economy in the state is encouraging given that sentiments have declines and uncertainty has risen.

Consumers Continue to Show Signs of Fatigue: Consumer sentiments dipped to their lowest level since 2016 in December—falling by 7.7%. This is worrisome for overall economic growth because consumers have largely been responsible for the bulk of our momentum this cycle. It is also troubling given that consumer confidence plays a large role in real estate transactions/home purchases, and California has already begun to see demand wan. These latest figures suggest that the market will continue to face headwinds during the first half of 2019.

Lower Energy Prices Tame Producer Inflation: Producer Prices fell by their largest margin in two years as energy and gas prices reduced the burden on suppliers. This suggests that the Fed will be more moderate in raising interest rates this year with one additional rate hike seeming likely, rather than the two rate hikes initially envisioned.

Manufacturing Sector Rebounding Modestly: After several difficult months, the nation’s manufacturing sector had a bit of a bounce as 2018 ended. The overall index rose 0.3% in December following a 0.4% increase during November. New cars continue to drive both production and consumption on the durable goods side, which has caused more industrial capacity to be utilized. However, there is still slack in the system that may preclude a big acceleration in business investments this year.

 

Posted on February 1, 2019 at 7:36 pm
Kimberly Parrish | Category: Uncategorized

Madeline’s New Home!

⭐️⭐️⭐️Rave Reviews⭐️⭐️⭐️

“I couldn’t imagine finding my first home of my own without Kimberly’s guidance, hard work, dedication and authentic perspective. In a tough market and with specific requirements, she worked with me as a true partner in finding my new home. She went the extra mile to find the answers to the many questions this first-time home buyer had, and made what many could consider a stressful process, one full of fun and adventure. I trusted Kimberly with helping me make one of my biggest life decisions, and she truly came through.”
– Madeline M.
Posted on January 30, 2019 at 9:20 pm
Kimberly Parrish | Category: Uncategorized

Market Shifting…but Don’t Panic!

The Market seems to be shifting, but for many buyers and sellers, there is still plenty of reason to be in the market.

Buyers have the benefit of more options to choose from given the significant number of new properties on the market. Longer days on market and increasing discounts mean that buyers can begin to negotiate again, or at least enjoy a less competition from other buyers.

For sellers, things are not as bad as they seem. Prices are slowing down, and homes are taking longer to sell. However, with the median number of days on market at just 23, sellers can still sell quickly—just slightly slower than they could have 6 months ago. If you have been thinking of selling,  there is still plenty of reason to be in the market.

Here is the latest Market Update from the California Association of Realtors®

Market Snapshot

KimberlyParrish_MarketSnapshot

Posted on November 13, 2018 at 10:41 pm
Kimberly Parrish | Category: Uncategorized

Indie Biz Expo – showcasing local businesses

indie biz expo

 Think Local First’s

Indie Biz Expo 2018

Growing local Businesses

Wed, Oct 10, 2018

At the Santa Cruz Civic Auditorium

Presented by Santa Cruz Community Credit Union
For more info or to sign up to attend:
Posted on October 9, 2018 at 11:08 pm
Kimberly Parrish | Category: Uncategorized

Categories