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Redlands Real Estate Blog

Blog from the Lon Mapes Team at Orangehill Realty

By Lon Mapes | Broker in Redlands, CA
  • Riverside County Ranked #1 in the Nation with 2013 Projected 12.5% Home Price Increase

    Posted Under: General Area in Riverside, Market Conditions in Riverside, Home Selling in Riverside  |  March 2, 2013 7:22 PM  |  498 views  |  No comments
    The housing market is off to a good start this year. And it may finish 2013 on a good note, too. Los Angeles now ranks among the nation's best housing markets for a couple of traits, which is better than being among the worst.

    It's a California comeback.

    Stan Humphries, chief economist at Seattle-based Zillow Inc., a national real estate company, predicts that this year the Los Angeles metro area home prices will appreciate 7.1 percent from 2012, the fifth- strongest gain in the nation.

    The top market? That would be the severely affected Riverside area, where prices are expected to increase 12.5 percent. Sacramento ranks second with 11.9 percent appreciation and San Francisco is fourth with expected appreciation of 7.3 percent.

    The only top-five housing area not in California is third-ranked Phoenix, where Humphries predicts prices will rise 8.5 percent. Of course, there is a reality check. Prices fell so much during the downturn there is no place to go but up.

    "I think the key factor was the substantial decline in home values. In the L.A. metro area, it was about 33 percent from the peak," Humphries said of the price trajectory now.

    The reason is not complicated. Inventory is still at or near record-low levels in many areas, and demand has powered up. Fewer homeowners are also now struggling with homes worth less than their mortgages, but the problem is far from over.

    "The price appreciation is pulling more people back above water, but there still are a tremendous number of people below water," Humphries said.

    Sales of foreclosed properties have also diminished and sales of higher-priced properties are increasing.

    For example, market tracker DataQuick reported this week that in Southern California's move-up market - homes costing between $300,000 and $800,000 - sales soared 49.6 percent in January from a year earlier. Sales over $500,000 jumped 74 percent and sales over $800,000 rose 84.2 percent.

    Conversely, the number of homes that sold below $200,000 fell 23.5 percent while sales below $300,000 declined 12.2 percent. And this week Emoryville ZipRealty noted that a sellers market is taking hold in some areas.

    The company said that last year in Los Angeles homes sold for an average of 100 percent of the listing price. California also nailed four of the top five spots on this list. San Francisco topped the list with homes selling for an average 102.5 percent of the asking price followed by San Diego at 101.3 percent and Sacramento at 100.9 percent.

    "A limited inventory of homes on the market, combined with the extremely low cost of mortgage financing, has resulted in homes selling above asking price in many western markets," Lanny Baker, CEO and president of ZipRealty said in a statement.

    California real estate might not be golden yet, but it's starting to come out from the shadows.

    Lon Mapes - Redlands Broker/Owner & Consultant

    Multimillion Dollar Sales Producer
    (909) 726-5935

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