The Pace Of Home Prices: Still Going Strong

Maybe you’ve been waiting… and waiting… and waiting for Bay Area home price pacing to slow down. But for better (for sellers!) or worse (for buyers…), home prices are moving  in ONE direction: UP. The tech blog of The Mercury News, The Silicon Beat, reports “fat appreciation” based on just-released data from Core Logic’s Home Price Index. Year-over-year home prices grew 10.1% in our surrounding 9-county region, with Santa Clara County year-over-year prices up 11% for a single-family home.

Similarly, Mortgage News Daily reports that the Case-Shiller Home Price Index suggests this strong housing performance shows NO signs of stopping. Per usual, tight supply, high demand and overall positive employment indicators continue to drive prices to ‘new’ highs, a trend that is slightly comforting knowing it’s not limited to the Bay Area.

Home price appreciation is growing even faster in Washington and Utah, where double digit annual increases have posted. Seattle year-over-year gains came in at over 13%, while over a dozen other cities experienced home price increases nearly equivalent to or greater than San Francisco. (See graph here).

The silver lining for homeowners is increased home equity and a solid return on investment if you’ve been thinking of selling. While you might be tempted to wait for things to go even higher, the impact to your own purchasing power is likely to be impacted – especially if rates rise along with home prices.

The good news (yes there is some!) for buyers is that rates are currently pushing 2017 lows, so you can maximize your buyers' bucks while purchasing in a market that’s projected to experience continued price increases. (Last Wednesday was the 2^nd best day of the year for rates!) Why pay more for the same home and for the same interest rate in 3, 6 or 9 months? And why Not start building equity today?

We know this may not be the news you’ve wanted… but data is something we just can’t invent! We can, however, invent strategies that guide you through the market to reach your personal, financial and lifestyle goals. Buying in the Bay Area isn’t easy, but the rewards for home ownership here are financially rewarding and personally fulfilling.

***Wondering what your homre is worth?! Call us at 408-596-5526 or click HERE.***

All our best,

Mark & Jason

Resources Used:

Bay Area Housing Prices: Up, Up, And Up Again

Don't Bet On A Home Price Reversal Just Yet

Higher Today, But Still 2nd Best Day of 2017 For Rates