Redefy Housing News 11-7-2016
What’s driving third quarter home price growth?
The National Association of REALTORS® (NAR) quarterly report showed that persistent supply shortages led to faster home price appreciation in the third quarter of 2016. The median single-family existing home price increased in 87 percent of the markets surveyed. Double-digit increases were seen in 25 markets, up from 21 from last year. The most expensive homes continue to be in the West region, including San Francisco, San Jose, and Seattle, WA.
“Mortgage rates around historical lows and solid local job creation created a winning formula for sustained homebuying demand all summer long,” NAR Chief Economist Lawrence Yun said. “Unfortunately for house hunters in several of the top job producing metro areas around the country, deficient supply levels limited their options and drove prices higher — especially in markets in the West and South.”
Will home prices rise or fall in 2017?
The latest CoreLogic Home Price Index report for September 2016 showed a 6.3 increase from September 2015 and a 1.1 percent increase over August 2016. The HPI Forecast calls for a 5.2 percent increase from September 2016 to September 2017.
“Home-equity wealth has doubled during the last five years to $13 trillion, largely because of the recovery in home prices,” said Dr. Frank Nothaft, chief economist for CoreLogic. “Nationwide during the past year, the average gain in housing wealth was about $11,000 per homeowner, but with wide geographic variation.”
More sellers cutting prices
Although home prices have shown overall increases year over year and are forecasted to rise in 2017, a recent Trulia study showed that more landlords and home sellers cut prices. Does this suggest prices are declining? No, says Trulia. It’s a combination of overpriced homes being reduced to meet the market and seasonal changes.
“Price reductions exhibit seasonality… The percentage of listings experiencing price reductions on the for-sale side decreases from October through December, but it does increase steadily January through September,” Trulia said.
Tesla gets into the roofing biz
Innovative green auto maker Tesla Motors set up a climate change presentation in the Hollywood neighborhood set that was home to ABC’s Desperate Housewives. Founder Elon Musk explained what everyone was wondering: “Why are we here?”
“The interesting thing is that the houses you see around you are all solar houses,” Musk said. “Did you notice?” Pretty much everyone said no. Because there were no bulky solar panels, just nice slate and Spanish clay roofs. The big surprise was that the shingles themselves were cleverly disguised solar panels.
The roof tiles are made of textured glass and allow light to pass through to a standard flat solar cell, which will be manufactured by Panasonic. They’re touted to be “tough as steel” and can be fitted with heating elements to melt snow. Tesla also reinvented home battery for more than double the current kilowatt hours now available.
Installs will happen through SolarCity, which Tesla is currently scheduled to acquire on Nov. 17. They hope to begin a product roll out in about nine months, and no, they haven’t revealed the cost yet. Tesla says it will be “affordable” but Bloomberg says you should probably expect premium pricing in the first releases (maybe they’ll come out with a “Model 3” version).
Beagles draw vacationers
The Dog Bark Park Inn, a bed and breakfast in Cottonwood, Idaho, offers travelers a unique lodging experience inside one of two beagles onsite. The two-bedroom-one-bath “Sweet Willy” house is accompanied by little Toby, the chainsaw-art dog sculpture (made by the owner) and a red fire hydrant housing (you guessed it) a portable toilet. The current rate is $100/night and pets are welcome. You can also buy chainsaw sculptures at the owners’ shop next door.
Demand is still up for houses, so sell now and save thousands with Redefy Real Estate. Bet you can think of more important things to save your money for than real estate commissions – like slick solar tiles and vacations with beagles! #flatfeefullservice works!
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