May Newsletter

Mother’s Day is Sunday May 12th May 2013  Market Update As the national housing market recovers we are seeing considerable increases in demand, resulting in a strong seller's market across the country. Currently, there is more demand than there is supply available, but "the good news is home construction is rising and low mortgage rates are continuing to keep affordability conditions at historically favorable levels," states NAR Chief Economist Lawrence Yun. "Homes are selling much faster," says NAR President Gary Thomas. "Multiple bidding is becoming more common, and more homes are selling above the asking prices, so buyers need to move quickly." With historically low interest rates and rising demand, there is an urgency to buy now during one of the most favorable times in history to buy or sell a home. Home Sales Home sales decreased slightly by 0.6% from last month to 4.92 million units. Sales are up 10.3% from year-ago levels, making this month the 21st consecutive month of year-over-year sales unit increases. Distressed homes (which include short sales and foreclosures that traditionally sell for 15%-20% less on average compared to nondistressed homes) accounted for 21% of sales, which is down from 25% the previous month, and down from 29% in 2012. Regardless of the decrease in distressed sales from last year, these properties are still at above-average levels. Home Price The current median home price increased 6.4% to a seasonally adjusted $184,300, which is up 11.6% year over year, marking the 13th consecutive month of year-over-year price increases, and the strongest year-over-year increase since November 2005. Inventory- Month's Supply Inventory levels increased slightly by 1.6% to 1.93 million existing homes for sale. The number of homes on the market represents a 4.7-month supply, indicating a strong seller's market. Inventory is down 16.8% below a year ago when there was a 6.2-month supply. Interest Rates Interest rates this month are slightly lower from last month, at 3.41% for a 30-year mortgage. Low mortgage rates continue to keep affordability conditions at historically favorable levels. This Month's Video Tap Our Expertise Even if you're not ready to buy or sell a home right now, we would be happy to keep you up-to-date on developments in the real estate industry, mortgage financing and our local market. Simply reply to this e-mail or give us a call! Oh by the way, did you know you can now get an automated investment analysis of your neighborhood - complete with Active, Pending and Sold homes all mapped out - sent directly to your email inbox every month?  Now you can always know the value of your home. Try it today. It's informative, it's accurate, and it's free.  Oh, and please tell a friend or neighbor too!   Check it out and see what you think at Free Market Snapshot P.S.: Remember to visit my blogs for Local and National real estate and related information and updates! We hope you enjoy this monthly electronic newsletter. Please forward the link above to a friend who would also appreciate the information. If you have any comments, please e-mail them to us. Or, if you would like answers to your specific real estate questions, we'd be happy to help! Frank Murphy 831-457-5550 1414 Soquel Avenue Santa Cruz, California 95062 DRE License #01014048 Frank@FrankMurphy.net www.LiveInSantaCruz.com	Contact me, your local real estate expert, for information about what's going on in our area. Frank Murphy Keller Williams Realty 831-457-5550 Frank@FrankMurphy.net DRE License #01014048
Brought to you by KW Research. For additional graphs and details, please see the This Month in Real Estate PowerPoint Report. The opinions expressed in This Month in Real Estate are intended to supplement opinions on real estate expressed by local and national media, local real estate agents and other expert sources.  You should not treat any opinion expressed in This Month in Real Estate as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion.  Keller Williams Realty, Inc., does not guarantee and is not responsible for the accuracy or completeness of information, and provides said information without warranties of any kind.  All information presented herein is intended and should be used for educational purposes only.  Nothing herein should be construed as investment advice.  You should always conduct your own research and due diligence and obtain professional advice before making any investment decision.  All investments involve some degree of risk.  Keller Williams Realty, Inc., will not be liable for any loss or damage caused by your reliance on information contained in This Month in Real Estate.