Zillow: California, Phoenix and Nevada House Prices Booming! Coincident Growth In 45 States

Confounded Interest ^ | 05/21/2013 | Anthony B. Sanders

[whitedog57]

Recently I asked if housing was in a bubble. Today, Zillow released their house price data by metro area to get a closer glimpse of a potential housing bubble … again.

According to Zillow, Phoenix AZ, Sacramento CA, San Jose CA, San Francisco CA, Modesto CA, Vallejo CA, Las Vegas NV, Reno NV, Stockton CA and Santa Rosa CA all grew over 20% Year over year in terms of house prices. Even Detroit rose 13.97%.

While California housing is on fire, not all US cities are rising. Rockford IL is the biggest loser in terms of house prices. And Chicago is down slightly.

Are California, Arizona and Nevada on fire in terms of their economies? Not according to the Philadelphia Fed. While State coincident indexes increased in 45 states in April, California, Arizona and Nevada are not among the leading states.

Illinois is one of the few states with negative coincident growth which helps explain the relatively poor performance of Rockford and Chicago.

Investors are still a major driving force in the west for housing. A by product of The Fed’s easy money policies.

Here is the FNC house 30 metro area house price index against the Fed Funds rate.

[whitedog57]

Bernanke blowing hot air into California housing.

[MrEdd]

Prices booming, sales not so much. Until there is much more correction both won’t be coinciding.

[NormsRevenge]

not good to use ‘ on fire’ to describe real estate.. imho ;-]

[Fast Moving Angel]

Stockton and Vallejo ... two bankrupt cities. Yeah, I want to live there. Not.

[wyowolf]

I have a doctor couple looking in Vegas... its crazy!! you have ten offers on a property before noon!! and the want you waive the apprasail!

Not that way here in Atl... its picking up a bit... but not like Vegas.

[Cyman]

“I have a doctor couple looking in Vegas... its crazy!! you have ten offers on a property before noon!! and the want you waive the apprasail!

My buddy bought a condo that sold for $480K in 2007 for $124k in 2012. Units are now going for $230-250k IF you can find one.

[wyowolf]

they couldnt even find a house in the 300s... had to move to the 4-500 range... even then demand is soaring...

[semantic]

Well, we're right in the middle of it, and the neighbors couldn't be happier. Of course, no one seems to realize why it's specifically Chinese and why they're paying cash.

Hmmm, print $multi-trillions, send a lot of to China for goods no longer made in the USA. And oh, by the way, keep printing $billions more so that those very same Chinese now holding cash want to get rid of it as soon as possible?

Gee, where should it go?

[yorkiemom]

Prices booming, sales not so much. Until there is much more correction both won’t be coinciding.

Prices and sales here in the CA central valley are both booming. Last year, it took about a year to sell a house. Now they are selling in weeks.

It's not all good news - this new boom has been too much, too fast. We've seen it all before. It will be followed by another bust if it isn't tempered soon.

[FightforFreedomCA]

Honestly, it is really pretty crazy in CA for housing, but it appears to be investors that are doing much of the bidding up. A couple people I work with had trouble finding homes - being outbid, competing against cash offers, etc. It’s weird.

[buckalfa]

"---appears to be investors that are doing much of the bidding up.---competing against cash offers, etc."

Fed-res cash is abundant, rates are low, pent up demand, and prices still somewhat reasonable at least in the hinterlands. The perfect formula for an investor/family driven real estate boom. Of course we all know what will follow in this bizarro world.

[Ribeye]

If he can blow that hot air long enough for me to sell 22 acres in Santa Clarita I say blow away. I need a developer to buy it. If I never have to look at that piece of land again I’ll be happy. I want to buy more land here in North Idaho where it’s still cheap.

[humblegunner]

Here is the FNC house 30 metro area house price index against the Fed Funds rate.

Where? I don't see it.

[riri]

I have twenty in Southern Colorado I have been trying to sell for a few years. It's been off the market for the past year. Thinking maybe I should try again now. However, the house needs repainting and I just don't have the energy to put into it anymore.

Anyhow, I moved back to AZ from NC last June and bought a new house. Now this house is selling for 60k more than last June. I can't see how it can last. Seems like the bottom will fall out again.

[familyop]

...say commies who are dependent on government for incomes (most folks in politics). They want property taxes to go up instead of down, so they lie and steal to get more.