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Homebuyers Growing More Optimistic.

	A new homebuyer/Agent sentiment survey by Coldwell Banker Residential Brokerage’s parent company has found a growing sense of optimism among buyers as the nation’s housing market continues to improve. In particular, buyers are becoming more confident about the stabilizing and increasing value of home prices. The annual homebuyer survey, which drew 5,865 responses, was designed to discover what was behind the recent increases in buyer demand. The key finding here seems to be a growing optimism about improving prices, which appears to be driven by an extreme shortage of homes for sale in many markets. While low interest rates and change in life situation were cited as the two highest factors motivating buyers, expectation that home prices will rise – a very new sentiment among buyers – came in a very close third. This optimism over values grew the most over the last 12 months (61 percent) closely followed by “increased optimism around selling” (51 percent). Dan Barnett, senior vice president of marketing for Coldwell Banker Residential Brokerage’s parent company, said there is a very clear correlation between a growing optimism over prices and buyer frustration over the lack of homes for sale. The graph below depicts results by various NRT local operating companies:

	Despite increased buyer and seller optimism overall, there still does not seem to be a big increase in move up buyers. About 42 percent of Agents said move-up buying was increasing “modestly” and only 7 percent said it was increasing significantly. Below are the results of the survey: What is motivating buyers to look now (factor is “very motivating” or “motivating”): 83% Low interest rates 60% Change in life situation 57% Expectation that home prices will rise 51% Job relocation 46% Real estate investment value 43% Confidece in personal economic outlook 42% Increased optimism around selling 37% Rising rental prices Which factors have become more important now than a year ago: 61% Expectation that home prices will rise 51% Increased optimism around selling 44% Low interest rates 35% Real Estate investment value 34% Confidence in personal economic outlook 28% Rising rental prices 27% Change in life situation 22% Job relocation What are buyers complaining about: (% saying “frequently” or both frequently and “more often than not”) 41% (69%) Lack of inventory 19% (52%) Uncertainty in economy 11% (44%) Home affordability 19% (43%) Difficulty with mortgage appraisal 18% (42%) Difficulty qualifying for a mortgage How do buyers cope with limited inventory (Agent could pick more than one): 87% considered expanding the geography they would consider 85% prepared to pay more 74% considered distressed properties 70% stopped looking 54% considered buying new construction 54% considered foregoing a move What is happening in the overall market: Prices: 63% of our Agents found that home prices were increasing, with larger increases identified on the west coast. Half of the San Francisco Agents described home prices as increasing significantly. Inventory: 78% of our Agents found inventory to be decreasing. Atlanta, Florida, Hawaii and Sacramento are feeling the most constrained by low inventory. Transaction volume: Agents report that transactions are up somewhat – 40% - with the most activity being reported in the Midwest and West. Buyer confidence: 60% of Agents report that buyer confidence is increasing, across the board. Sacramento and Harrisburg, while generally positive, lag the nation. So what does all this mean for you? Every day, both buyers and sellers are growing more confident as the housing market continues its steady rebound. If you have been thinking about buying a home, you shouldn’t wait too long. We have a good window of opportunity right now when interest rates are low and prices are still very affordable. But that won’t last forever, as history has shown us. Even a small jump in mortgage rates could significantly change how much you’ll end up spending on a home. If you’ve been considering buying a home, there may not be a better time than now. I’m ready to help you find the home of your dreams today. Let’s get started!

	©2013 Coldwell Banker Real Estate LLC. All Rights Reserved. Coldwell Banker® is a registered trademark licensed to Coldwell Banker Real Estate LLC. An Equal Opportunity Company. Equal Housing Opportunity. Each Coldwell Banker Residential Brokerage Office Is Owned by a Subsidiary of NRT LLC. If your property is listed with a real estate broker, please disregard. It is not our intention to solicit the offerings of other real estate brokers. We are happy to work with them and cooperate fully. DRE License #01908304

Reality Check: That was Then, This is Now!!

	As 2013 gets underway, Northern California's housing market is poised to continue the steady recovery that began last year. Home sales and the median sale price rose in most of our markets last year, and industry economists expect more improvement this year. Foreclosures and short sales continue to decline. The only problem seems to be that many potential sellers don't realize that things have changed so dramatically since the downturn of the housing market, and they're missing out on a tremendous opportunity. There's a severe shortage of homes for sale in many areas, which means that homeowners savvy enough to list their home right now are often getting multiple offers – and sometimes at prices we haven't seen in several years! Available inventory of homes for sale in much of our region is down 50 percent or more just in the past year. Right now, there are more eager buyers out there than homes on the market to meet their demand. With an imbalance between supply and demand, homebuyers have been fiercely competing with each other, and that's great news for sellers. The California Association of Realtors announced in its November 1, 2012 report that 57 percent of home sales in California received multiple offers, the highest percentage of multiple offers in at least the past 12 years, with each home receiving an average of 4.2 offers, which was up from 3.5 offers in 2011. This seller's market is rapidly driving up prices. The median price of all homes sold in Sacramento County, for example, rose by 18 percent in December compared with the same month a year before, according to a study for the Sacramento Bee by DataQuick, the La Jolla-based information services company. According to DataQuick the price appreciation was even sharper in the Bay Area, which saw the median price in December spike by 32 percent.

	California Association of Realtors Unsold inventory index for existing single-family homes (in months)

		Source: California Association of Realtors

	The same trends that we are seeing here in Northern California are occurring in markets across the country, according to the National Association of Realtors. Home sales nationwide rose to a seasonally adjusted annual rate of 5.04 million in November, the highest level since November 2009, when the annual pace spiked at 5.44 million, NAR reported. "Momentum continues to build in the housing market from growing jobs and a bursting out of household formation," said Lawrence Yun, NAR's chief economist. "With lower rental vacancy rates and rising rents, combined with still historically favorable affordability conditions, more people are buying homes." Yun said healthy market demand and shortage of listings is driving up prices once again. “A diminishing share of foreclosed property sales is helping home values," he noted. "Moreover, an acute shortage of inventory in certain markets is leading to multiple biddings and escalating price conditions." Total housing inventory at the end of November nationwide fell 3.8 percent to 2.03 million existing homes available for sale, which represents a 4.8-month supply at the current sales pace. It was down from 5.3 months in October and is the lowest housing supply since September of 2005 when it was 4.6 months, NAR reported. Listed inventory is 22.5 percent below a year ago when there was a 7.1-month supply. Raw unsold inventory is now at the lowest level since December 2001 when there were 1.89 million homes on the market, NAR said. Compared with a year ago, home listings are down in every price category in each of the nation's 30 largest housing markets, according to a study by real estate website Zillow. The tight inventory conditions won't last forever, of course. In an interview with USA Today, Zillow economist Stan Humphries said tight inventories will push up prices, encouraging more people to list homes. So where does this all leave you? If you've been putting off selling your home, you may want to seriously consider getting back into the market now. As the new year gets under way, the pendulum has swung back into a seller's market. But there's no guarantee how long that will last. Buyers are out there looking, prices are climbing once again and there just aren't enough good home listings to go around. With such strong buyer demand and a shortage of listings, this may be the best time to sell your home. I'm ready to help you get started today! For More Details, Contact Me Today: Rob Cunha Direct: (916) 355-0202 Mobile: (916) 616-9675 Email: RobForRealEstate@gmail.com Website: http://www.RobForRealEstate.com Facebook: www.Facebook.com/RobForRealEstate  DRE# 01917997

September 2012 Home Sales Decline, Medium Home Prices Rise

September existing‐home sales declined modestly, but inventory continued to tighten and the national median home price recorded its seventh back‐to‐back monthly increase from a year earlier, according to the National Association of Realtors®.

Total existing‐home sales, which are completed transactions that include single‐family homes, townhomes,
condominiums and co‐ops, fell 1.7 percent to a seasonally adjusted annual rate of 4.75 million in September from an upwardly revised 4.83 million in August, but are 11.0 percent above the 4.28 million‐unit pace in September 2011.

Lawrence Yun , NAR chief economist, said the market trend is up. ʺDespite occasional month‐to‐month setbacks, weʹre experiencing a genuine recovery,ʺ he said. ʺMore people are attempting to buy homes than are able to qualify for mortgages, and recent price increases are not deterring buyer interest. Rather, inventory shortages are limiting sales, notably in parts of the West.ʺ

ʺThe shrinkage in housing supply is supporting ongoing price growth, a pattern that could accelerate unless home builders robustly ramp up production,ʺ Yun said. Existing‐home sales in the West fell 3.4 percent to an annual pace of 1.13 million in September but are 0.9 percent above a year ago. With continuing inventory shortages in the region, the median price in the West was $246,300, which is 18.4 percent higher than September 2011.