Core Logic: Los Angeles House Prices Up 21%, Phoenix Up 17% (The West Of The Rockies Rebound)

Confounded Interest ^ | 08/06/2013 | Anthony B. Sanders

[whitedog57]

According to Core Logic, house prices in Los Angeles rose 20.7% Year-over-year. Phoenix rose 19.8%. Texas cities (Houston, Dallas) were up 10%.

clcities

Excluding distressed sales, the recovery is largely west of the Rockies and Georgia/Florida.

clmap

The large year-over-year gains occurred when the 30 year mortgage rate was 3.80% (but has risen since late May to 4.37%).

br30080613

Rising mortgage rates and 70% of jobs being created are part-time. Throw in nationally flat-to-falling mortgage purchase applications, and we have an INVESTOR-FUELED HOUSE PRICE RECOVERY.

lambs

Hope those investors keep buying!!!! Sadly, it is difficult for part-time workers to purchase a home.

billygoat

[whitedog57]

Hope those investors stay in the game!

[A CA Guy]

Realtors are expecting another crash soon, but if you like the house and can pay the loan, so what?

From the market.

[upchuck]

According to Core Logic, house prices in Los Angeles rose 20.7% Year-over-year. Phoenix rose 19.8%. Texas cities (Houston, Dallas) were up 10%.

Excluding distressed sales, the recovery is largely west of the Rockies and Georgia/Florida.

The large year-over-year gains occurred when the 30 year mortgage rate was 3.80% (but has risen since late May to 4.37%).

Rising mortgage rates and 70% of jobs being created are part-time. Throw in nationally flat-to-falling mortgage purchase applications, and we have an INVESTOR-FUELED HOUSE PRICE RECOVERY.

Hope those investors keep buying!!!! Sadly, it is difficult for part-time workers to purchase a home.

[BunnySlippers]

Yes, here in LA prices are soaring. I thought I bought my current home high 2 years ago.

I’m looking for a new place and can’t believe what the prices are right on my own block!

[yefragetuwrabrumuy]

Purchasing homes as investments at inflated prices holds little prospect for a good return. Before the crunch, houses were perhaps three times their real value. Betting on them to return to that price is wishful thinking.

About the only sane way to get a quality house today is to contract it yourself and hire your own subcontractors to build it from below the ground up. Almost every part of it should be upgraded from current standards, as they are pretty low, and are oriented to external appearance, not quality work, durability or low maintenance.

[sixgunjer]

Just sold my house in SoCal for 19.75% more than what I was going to ask in January. I should close in 2 weeks. I bought 16 years ago and will retire in three years to another state. Sell the frenzy.

[Jeff Chandler]

Phoenix rose 19.8%

But Maricopa County, which encompasses the entire Phoenix metropolitan area, rose 30.3%.

[riri]

Yup, I bought last June in Gilbert. The house I bought is now selling for 70k more.

It was insane. I needed a 30 day close. I had exactly 4 new builds to choose from. Only one came close in any way to filling my wants. (I wanted to be in S. Chandler but had to settle for SW Gilbert). a resale was out of the question, homes were getting 10 offers before anyone even walked in the door to look at them.

My good friend just moved back and it's even worse this year. She finally got a new build spec but they told her she couldn't make any changes--if she couldn't live with that move over, there are 10 people in line behind you literally. She signed the paperwork that morning.

[Lmo56]

Things are not so rosy as they would have you believe.

For example, in AZ, home values plummeted approximmately 50% during the last few years.

So, a home bought for $200K was suddenly marketable at $100K, or 50% of previous value.

A 17% increase in home price makes it marketable at $117K - or 58.5% of the original value.

You are still 41.5% in the hole ...

[HerrBlucher]

Correct, it is only rosy for those who bought very recently. Anyone who bought in 06 to 09 lost a lot of value that is just now beginning to creep back up. It is going to have keep going up for a few more years in order to get back to the price they paid for it. We will see.

[lurk]

Homes listed just north of Salt Lake City are now on the list an average of 5 days before they receive an offer. Offers are an average of 102% of the asking price. Seller’s market, at the moment.

[BunnySlippers]

II’m an LA native ... close to retirement. I would like to consider another city [I’m a city girl] but can’t think of a place I like better in terms of what it offers and weather.

I do very much like Santa Barbara and San Diego but they are comparable to LA in cost.

Every other place out of state has bad weather or is too far from the city.