Posted on January 22, 2016 - 08:50 AM
by Melson Realty
U.S. HOUSING DATA SIGNALS STRENGTH
WHILE STOCK MARKET PLUNGES
As 2015 drew to a close, the Commerce Department reported that building permits in November vaulted 11 percent to a 1.29 million-unit rate, the highest level since June.
Groundbreaking jumped 10.5 percent to a seasonally adjusted annual pace of 1.17 million units. With permits running ahead of starts, home building is likely to remain supported in the months ahead.
This is good news at a time that the stock market is plunging in triple digits one day and jumping back up the next. With this unstable fiscal situation on Wall Street Americans especially Californians are turning to the housing market for more stability.
November marked the eighth straight month that housing starts remained above 1 million units, the longest stretch since 2007. Even with the recent slight increase in mortgage rates with a quarter point raise, Valley home buyers are still moving to purchase new homes in steady numbers.
Here in Visalia, Tulare and Porterville inventories remain steady now and are expected to increase as springtime nears.
Overall California pending home sales retreated in November primarily due to seasonal factors and delayed escrow closings caused by new loan disclosure rules, according to the California Association of Realtors (CAR).
On an annual basis, California pending home sales remained strong and continued to improve from 2014 with double digit gains. Statewide pending sales were up 13.6 percent from the recorded index in November 2014. Pending sales have been increasing on a year-over-year basis since November 2014.
Regionally, pending sales were higher on a year-over-year basis in all areas, with the Central Valley, Southern California and the San Francisco Bay Area all increasing at a double-digit rate.
Mortgage rates are remaining steady and with the volatility in the stock market home buyers are moving into the real estate market here in the Valley knowing that real estate is a safer long term investment.
With home prices leveling off in recent months, more sellers are adjusting their listing price to become more in line with buyers expectations. About one-third of properties had price reductions in November.
Your local lender can help you get the mortgage rate best for you and your family. Don’t wait, now is the time to call your local lender to get prequalified before you talk to a Realtor and start the search for the home of your dreams.
Country Club Mortgage
559.734.5000 Central Valley Phone
805.544.2775 Central Coast Phone
400 E. Main St. Suite 120 Visalia, CA 93291
6795 N. Palm, Suite 101 Fresno CA 93711
4211 Spring Tree Ln. Bakersfield CA 93314
1204 Nipomo St. San Luis Obispo CA 93401
NMLS # 293517 | DRE # 01474957
Apply online 24/7 @ www.jeremyengle.com