The S&P/Case-Shiller Home Price Index (HPI) released Tuesday presented solid evidence that the housing industry is continuing to recover. Ryan Serhant, of Million Dollar Listing Fame, discusses the Case Shiller home price increase, homeownership in America and the health of the housing market on the CNBC’s Kudlow Report, and even offers Larry Kudlow a job! Click here to watch to the full interview.
According to the Case-Shiller report, home prices grew by 12.20 percent on a year-over year basis in May, falling slightly short of expectations of 12.40 percent, but moving slightly ahead of April’s reading of a 12.10 percent year-over year increase. The Case-Shiller 20-City Index showed increasing home prices for all 20 cities.
The Case-Shiller HPI is based on a three-month rolling year-over-year average of home prices in the cities surveyed.
Highest Year-Over-Year Gains Included Theses Cities:
- San Francisco, CA 24.50 percent
- Las Vegas, NV 23.30 percent
- Phoenix, AZ 20.60 percent
- Atlanta, GA 20.10 percent
- Los Angeles, CA 19.20 percent
In surprising news, Dallas, TX and Denver, CO posted record year-over-year price gains that surpassed their pre-crisis peaks.
Cities Post Month-To- Month Price Gains
On a seasonally-adjusted month-to-month basis, home prices rose by 1.00 percent in May as compared to April. Expectations were for a 1.40 percent increase over April’s reading, which came in at 1.70 percent.
Top Gains From April To May Were Posted By These Cities:
- San Francisco, CA 4.30 percent
- Chicago, IL 3.70 percent
- Atlanta, GA 3.40 percent
- San Diego, CA 3.10 percent
- Seattle, WA 3.10 percent
Rising Mortgage Rates Could Slow Price Momentum
It’s important to understand that the data in the Case-Shiller HPI lags a couple of months behind current market conditions; the latest numbers were compiled prior to mortgage rates spiking by about 1 percent. Economists expect that the impact of higher mortgage rates won’t be seen in home prices until fall.
Higher mortgage rates are expected by some economists to slow home sales. If the demand for homes falls due to higher mortgage rates, inventories of available homes would expand, which would create competition among home sellers and potentially lead to lower home prices.
Other economists believe that the looming further increase in interest rates could actually push some buyers to jump into the market now. I tend to agree with them: increasing interest rates have a huge impact on purchasing power and most buyers are doing the math. Here is a chart from KCM showing the change in monthly payments with increasing interest rates.
For any questions regarding the Marin County real estate market and whether now is a good time to buy for YOU, feel free to contact me.
About the Author: The above Real Estate information on Marin County Real Estate was provided by Sylvie Zolezzi. I can be reached via email at Sylvie@YourPieceOfMarin.com or by phone/text at 415.505.4789. I am an award winning Realtor specializing in luxury residential real estate in beautiful Marin County, just north of the Golden Gate Bridge.
I offer a wide range of real estate solutions for buyers, sellers and investors, attracting clients who demand excellence—in marketing, negotiations, market knowledge—and a genuine concern for their needs. My association with Decker Bullock Sotheby’s International Realty allows me to provide a high-end luxury experience to all my clients at every single price point. It also enables me to leverage our unique combination of local knowledge and global resources, providing highly personalized service and unmatched exposure to my clients’ properties locally and worldwide.
I view it as a great privilege to be of assistance to people at very important stages of their lives—whether they are newlywed, starting a family, relocating, retiring, divorcing or mourning a loved one—because I view my job as much more than facilitating the sale or purchase of a property, but rather as helping them find their new sanctuary or part with the home where they have raised their children and created so many memories. In addition, I am always excited to help my clients discover Marin County, our stunning sceneries and unmatched lifestyle and find the right home in one of our charming towns: Sausalito, Tiburon, Belvedere, Mill Valley, Corte Madera, Larkspur, Greenbrae, Kentfield, Ross, San Anselmo, San Rafael, Fairfax, and Novato.