Prospects of Condominiums Comeback Are High

Condo sales have been on a roller coaster ride in recent years, as the recession hit the sector hard. But is the country ready for a condo revival?

“Condo sales moved sideways several years after the recession before picking up steam again in 2013,” CoreLogic Deputy Chief Economist Sam Khater writes on the company’s blog. “This year, it continues to rebound and currently accounts for 12.3 percent of all sales in 2014.”

As of June 2013, 22 of the 25 top condo markets reported rises in sales compared to prior years. But interest-rate rises in the second half of 2013 caused sales to cool off somewhat, similar to what occurred in the overall market. By June 2014, only 14 of those same markets were showing increases year-over-year, CoreLogic reports.

Housing analysts are optimistic the condo market is poised for a big rebound, particularly since the largest cohort in the U.S. is the 20-to-24 age group.

“This specific age cohort might currently be driving today’s rental market, but they will likely be driving the first-time home buyer and condo markets over the next five to 10 years, driving demand for newly built condos,” Khater notes. “That demand is heavily needed in the market now, given that newly built condos were hit harder in the last housing downturn than newly constructed homes overall.”

Source: “The Long-Term Rising of Condo Sales,” CoreLogic (Sept. 30, 2014)

‘Short Sales Fall Sharply’ as Home Prices Rise!

Short sales are on the decline, as home prices inch up and more home owners stay current on their mortgages. Daren Blomquist, vice president at RealtyTrac, says short sales started to trend lower in the second half of 2013.

Four percent of December sales were short sales, selling for an average discount of 13 percent below market value, according to the National Association of REALTORS®’ latest existing-home sales report.

Overall, distressed homes — which includes both foreclosures and short sales — accounted for 14 percent of sales in December, unchanged from November but down from 24 percent from December 2012, NAR’s data shows.

Source: REALTOR® Magazine.   More at:www.houselogic.com and http://retradio.com

Existing-Home Sales Continue to Climb!

The latest monthly data shows total existing-home sales, which are completed transactions that include single-family, townhomes, condominiums, and co-ops, increased 4.0 percent to a seasonally adjusted annual rate of 4.42 million in November from 4.25 million in October, and are 12.2 percent above the 3.94 million-unit pace in November 2010.

Full article at: http://bit.ly/trTuv9 via @AddThis

More news from Placerville and the El Dorado, Placer, Amador or Sacramento Counties regions of California at: www.sierraproperties.com or www.dougandbudzeller.com