CoreLogic just published their March Home Price Index & Forecast which is reflecting a consistent price increase for homes. With a low inventory, slow rising incomes, yet a high demand for home purchases are factors driving this increase.
Inside the Nation’s #’s
Over the past 7 years, home prices have increased year-over-year at 7%, and 1.4% month-over-month. 37% of the 100 largest metropolitan markets (incl. Los Angeles) are overvalued. This number is further broken down to average metropolitan homes are at 35% value, and 28% undervalued. The good news for homeowners (& potential sellers), is these price increases are on the average above what they were in early 2006. The flipside to this news, as home prices go upward, new construction homes are still lagging behind normal levels. This further drives upward. CoreLogic is forecasting home prices to increase another 5.2% by March of 2019. As prices head upward inventory shortage is going to be the primary issue.
SoCal Real Estate
Along with the nations home prices annual increases, Southern California home prices headed upwards between 6-9% (See Corelogic’s chart below). L.A County & the IE (Inland Empire) prices increased at their fastest pace in 3.5 years. Further proof, in SoCal the housing market, is strong. Overall L.A. county homes jumped in March 8.8%. CAR (California Association of Realtors) reported Los Angeles metro area increased by 9%.
What Does This Mean for Homebuyers
Due to pricing variances, not only across the nation but here in Southern California, many 1st-time homebuyers are searching for affordably-priced starter homes. It can be a challenge since 1 in 3 homes this past summer were at starter home prices and the competition is overwhelming with the lack of housing inventory. For buyers in the middle & upper tiers, it’s a good market, and time to purchase. Overall, it’s still great time to purchase and rates are still historically low.
We continue to beat multiple offer situations by leveraging our knowledge, creativity, and resources without compromising our client’s interest. If you’re a first-time homebuyer and finding it a challenge to find and purchase your starter home or just a homebuyer looking for your next home you will want to connect with me!