Home Prices On The Rise

What do you think? Is the housing market on the verge of recovery?

Don't look now, but the housing market might actually be ready to rebound after a seven-year slump.

An article in the Los Angeles Times reports that a leading index showed home prices in the United States' 20 largest cities rose 1.6 percent in July to their highest level in two years.

The rise was the fourth straight monthly increase and the third straight month prices rose in all 20 cities, according to the Case-Shiller Price Index.

That trend is also apparent in the East Bay.

Wayne Gregori of The Gregori Group real estate company said home prices in various parts of the East Bay have shown improvement recently.

"It's happening all across the board," Gregori said.

Gregori said prices in general did show a bump in July, then slid a little in August and are back on the upswing this month.

In San Leandro, for example, the median price for a single-family home is $385,000, up from $350,000 in July.

In Pleasanton, the median price has increased from $960,000 in July to $1.01 million this month.

In Oakland's Rockridge area, the median price has jumped from $705,000 in July to $745,000 today.

There are some exceptions. In Danville, the median price has slipped from $1.05 million to $1.03 million.

In Livermore, it has dropped from $685,000 to $676,000.

Gregori, however, said the seven-day trend is showing an uptick in East Bay home prices.

He said the biggest problem is a lack of homes for sale. Banks are limiting the number of houses they put back on the market.

"We have very little difficulty selling a house. It's a good time to sell," said Gregori. "There just isn't a lot of inventory."

Gregori said there are low interest rates, pent-up demand and still reasonable prices to fuel the market.

He noted he believes the housing market is heading for recovery, but it may take as long as 10 years for the backlog of foreclosures to be cleared.

David September 28, 2012 at 02:20 AM
Home prices can and do rise during recessions. Again, what matters is price/rent here, or if you're in Texas/Nebraska/Ohio etc, price/income. Or the past 30 years (and likely more) are no guide, and "this time it's different."* By all means make up your own mind. *: The most expensive words in the English language.
Mona Taplin November 12, 2012 at 07:22 AM
libertus, I have relatives who are finding the same situation that you are. They are looking for a home to buy, and many are gone before anyone gets a chance to look at them and were told the same thing as you were. The couple they were able to look at and were interested in turned out to be a bidding war,- prospective buyers offering more than the asking price because there are so few homes on the market,- and they couldn't match their bids.
Mona Taplin March 12, 2013 at 03:46 AM
One way of doing that is to put extra money on that mortgage and pay it off as fast as you can to bring the cost of interest down.
Mona Taplin March 12, 2013 at 03:51 AM
When the housing bubble burst and foreclosures were overwhelming, rentals were hard to come by so of course that bubble didn't burst.
Mona Taplin March 12, 2013 at 03:55 AM
Time was when people bought a home, instead of a house to live in for a few years then flip for a profit. That's what we did.


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