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Inside Real Estate |
Linknet-News.com features news articles and news items in various categories including Health News, Real Estate News, Finance News, Marketing News, Business News, Entertainment News, Travel News, and more... California Real Estate Continues to Sizzle Dec 30, 2005 - Linknet Real Estate News
California Real Estate Continues to Sizzle by Rick Hendershot, Linknet Real Estate News December 30, 2005 California Real Estate overpriced says housing report The latest third quarter housing market analysis conducted by National City Corp analyses the 299 largest real estate markets in the U.S. In this installment, 24 of the top 50 overpriced markets were in California. National City's estimates of what the typical house in these markets should cost by looking at the town's population densities, local interest rates, and income levels. Historical premiums and discounts for areas are also considered. According to the report, homes in areas that are either over- or underpriced are more open to significant price corrections in the future. Naples, Florida topped the list as the most overpriced of all housing markets in the U.S. According to the analysis a media-priced home in Naples is currently $329,970, 84% more than the "correct" value according. Top California "overpriced" markets included Merced (77%), Salinas (75%), Stockton (72%), Madera (70%), and Santa Barbara (70%). California housing market breaks previous records The California residential real estate market set new records in 2005. Previous records for median home price and annual sales were set last year, and these were both broken in 2005, according to the California Association of REALTORS® (C.A.R.). * Sales of detached existing single-family homes grew by 1.8 percent to 635,000 * Single-family home media price smashed through $500,000 to $523,150. This represented an annual increase of "only" 16%, down from 18-21% the previous three years. * Unsold housing inventory remained at only 3.3 months in 2005, well below historic standards, fuelling continued price appreciation. * For 2005, fixed rate mortgages remained below 6%, while one-year adjustable mortgage rates averaged 4.5%. More than 40% of buyers used adjustable-rate loans for the first time since 1994. * The Fannie Mae / Freddie Mac single-family conforming mortgage loan limit went up to $417,000, but this is still 29% below the median-price for single-family homes. * Internet use by home buyers continued to climb in 2005 to 62%. Internet use by home sellers went to 57%. For 2006 total sales are expected to decline by 2 percent. The median-price for single family homes is expected to increase by about 10%. Real Estate Online Promotion
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