Blog - Stovall Team, Fountain Valley, CA, Real Estate

How Much Has Your Home Increased In Value?

By Micah Stovall | Published: September 25, 2018

Home values have risen dramatically over the last twelve months. In CoreLogic’s most recent Home Price Index Report, they revealed that national home prices have increased by 6.2% year-over-year.

CoreLogic broke down appreciation even further into four price ranges, giving us a more detailed view than if we had simply looked at the year-over-year increases in national median home price.

The chart below shows the four price ranges from the report, as well as each one’s year-over-year growth from July 2017 to July 2018 (the latest data available).

It is important to pay attention to how prices are changing in your local market. The location of your home is not the only factor which determines how much your home has appreciated over the course of the last year. Lower-priced homes have appreciated at greater rates than homes at the upper ends of the spectrum due to demand from first-time home buyers and baby boomers looking to downsize.

If you are planning to list your home for sale in today’s market, call me today at 714.343.9294. I can explain exactly what’s going on in your area and your price range.

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Home Prices: The Difference 5 Years Makes

By Micah Stovall | Published: September 18, 2018

CoreLogic recently released their Home Price Index Report. One of the key indicators used in the report to determine the health of the housing market was home price appreciation. CoreLogic focused on appreciation from July 2013 to July 2018 to show how prices over the last five years have fared.

The graph below was created to show the 5-year change in price from July 2013 to July 2018 by price range.

As you can see in the graph, the highest price appreciation occurred in the lowest price range with 48% growth, while the highest priced homes appreciated by 25%. This has been greatly fueled by the lack of inventory of homes available at the lower price ranges and high demand from first-time buyers looking to enter the market.

Where were prices expected to go?

Every quarter, Pulsenomics surveys a nationwide panel of over 100 economists, real estate experts, and investment and market strategists and asks them to project how residential home prices will appreciate over the next five years for their Home Price Expectation Survey (HPES).

According to the Q3 2014 survey results, national homes prices were projected to increase cumulatively by 19.5% by December 2018. The bulls of the group predicted home prices to rise by 27.8%, while the more cautious bears predicted an appreciation of 11.2%.

Where are prices headed in the next 5 years?

Data from the most recent HPES shows that home prices are expected to increase by 20.0% over the next 5 years. The bulls of the group predict home prices to rise by 31.2%, while the more cautious bears predict an appreciation of 9.3%.

Bottom Line

Every day, thousands of homeowners regain positive equity in their homes. Some homeowners are now experiencing values even greater than those before the Great Recession. If you’re wondering if you have enough equity to sell your house and move on to your dream home, contact the Stovall Team today at 714.343.9294! We can help.

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Micah Stovall

By Micah Stovall | Published: September 15, 2018

We understand that everyone one of us has a unique situation to themselves as we tread forward on our own race in life. At Stovall Team we know that understanding others needs and requirements are paramount to our culture. Together we promise that our vision, core values, and mission statement will align with your own future real estate goals. Regardless of your situation or future plans, let us provide the experienced guidance and expertise in making your real estate plans. At Stovall Team no detail is overlooked. In addition to providing interior design consultation- staging, we leverage a network of trusted professionals to bring out the best in any property and ensure our sellers receive the highest possible return on their Investment. We will educate you on what needs to be done to have a successful sale of your home. There are many components to a successful real estate transaction; you can count on us to be there every step of the process and make sure no detail is overlooked. Call us today at 714.343.9294 and visit stovallteam.com

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Are Homebuyers Starting To Hit The ‘Pause’ Button?

By Micah Stovall | Published: September 13, 2018

For the last several years, buyer demand has far exceeded the housing supply available for sale. This low supply and high demand have led to home prices appreciating by an average of 6.2% annually since 2012.

With this being said, three of the four major reports used to measure buyer activity have revealed that purchasing demand may be softening. Here are the four indices, how they measure demand (methodology), what their latest reports said, and a quick synopsis of the report.

The Foot Traffic Report
by the National Association of Realtors

Methodology: Every month SentriLock, LLC provides NAR Research with data on the number of properties shown by a REALTOR®. Lockboxes made by SentriLock, LLC are used in roughly a third of home showings across the nation. Foot traffic has a strong correlation with future contracts and home sales, so it can be viewed as a peek ahead at sales trends two to three months into the future.

Latest Report: “Foot Traffic climbed 3.2 points to 55.8 mid-summer in July. Additionally, the diffusion index is higher than last year by 13.5 points. Despite a healthy economy and labor market, supply and new construction remains unable to keep up with buyer demand.”

Synopsis: Buyer demand remains strong.

The Showing Index
by ShowingTime

Methodology: The ShowingTime Showing Index® tracks the average number of buyer showings on active residential properties on a monthly basis, a highly reliable leading indicator of current and future demand trends.

Latest Report: “Showing activity throughout the country increased by 0.3 percent year over year in July, the third consecutive month that the U.S. ShowingTime Showing Index recorded buyer interest deceleration compared to the previous year. The June 2018 figures revealed a 0.0 percent change in showing traffic from 2017, while May showed a 1.2 percent year-over-year increase. The 12-month average year-over-year increase was 4.6 percent.”

Synopsis: Buyer demand is softening

Realtors Confidence Index
by the National Association of Realtors

Methodology: The REALTORS Confidence Index is a key indicator of housing market strength based on a monthly survey sent to over 50,000 real estate practitioners. Practitioners are asked about their expectations for home sales, prices and market conditions.

Latest Report: “REALTORS reported slower homebuying activity in July 2018…The REALTORS® Buyer Traffic Index registered at 62, down from the same month one year ago (69). This is the fifth straight month (since March 2018) that Realtors reported a decline in buyer activity compared to conditions one year ago.”

Synopsis: Buyer demand is softening

Bottom Line

Numerous reliable measures of buyer activity are reporting that demand is softening. We had a strong buyers’ market directly after the housing crash which was immediately followed by a strong sellers’ market over the last six years. If demand continues to soften and supply begins to grow (as is projected to happen), we will return to a more neutral market which will favor neither buyers nor sellers. This “more normal” market will be better for real estate in the long term. Call the Stovall Team today at 714.343.9294 or email [email protected]

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Ask The Experts: STOVALL TEAM.

By Micah Stovall | Published: September 9, 2018

Q. What does the increase in the number of price reductions mean to the Real Estate Market? Is it a buyer’s market?

A. The housing market has tilted sharply in favor of sellers over the past two years, but there are very early preliminary signs that the winds may be starting to shift ever-so-slightly. In mid August, in a new report from Zillow, it was revealed that there has been a rash of price reductions across the country. According to the report: 1. There are more price cuts now than a year ago in over two-thirds of the nation’s largest metros; 2. About 14% of all listings had a price cut in June; 3. Since the beginning of the year, the share of listings with a price cut increased 1.2%; 4. This is the greatest January-to-June increase ever reported, and more than double the January-to-June increase last year. What this DOESN’T MEAN for the real estate market… This doesn’t mean home values have depreciated or are about to depreciate. A seller may put a home worth $900,000 on the market for $925,000 hoping a bidding war will occur and an overanxious buyer will pay more than its actual value. That has happened often over the last few years, especially in areas where we continue to have low-inventory. If the seller gets no offers and reduces the price to $900,000, it doesn’t mean the home dropped in value. It is still worth $900,000. We believe that home prices will continue to appreciate over the next 12 months and it’s far too soon to call this a buyer’s market but the frenetic pace of the housing market over the past few years is starting to return toward a more normal trend and healthy market. What this DOES MEAN for the real estate market… This does mean that sellers should be more conservative when it comes to the price at which they list their homes and work with agents with proven track records of success like the Stovall Team. Sellers have been listing their homes at inflated prices hoping a super-hot market will deliver a buyer willing to pay virtually any price to ensure they don’t lose the house. That strategy has worked somewhat successfully over the last two years. However, the time that strategy would have worked may have passed. Prices are not depreciating. However, if you want to sell your house quickly and with the least amount of hassles, work with a professional Realtor like Stovall Team. Call us today at 714.343.9294 We are here to invest in your family’s future with you. At Stovall Team we are focused on helping you understand the process while helping you find your dream home.

Sources: Micah Stovall, Stovall Team

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