Home prices on the rise

Just wanted to share some inportant information on California Real Estate. These two articles show that the trand for this year is a positive one and that this is the time to buy.
Enjoy.
Spring home buying season off to strong start
California home sales and median price both jumped in April, with sales shooting up to their highest level in more than two years, and the median price rising above $300,000 for the first time in 16 months, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) recently reported.

Closed escrow sales of existing, single-family detached homes in California rose to a seasonally adjusted annualized rate of 555,300 units in April, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.  Sales in April were 10 percent higher than March’s pace and 11 percent higher than in April 2011.  The statewide sales figure represents what would be the total number of homes sold during 2012 if sales maintained the April pace throughout the year.  It is adjusted to account for seasonal factors that typically influence home sales.

The statewide median price of an existing, single-family detached home climbed 5.7 percent in April to $308,050, up from March’s revised $291,330 median price and 4.7 percent from a revised $294,140 recorded in April 2011. 

Firms Sound Off on Rising Case-Shiller Index

06/26/2012 By: Tory Barringer

Following the news from Case-Shiller that home prices rose in April for the first time in seven months, IHS Global Insight and Capital Economics both released commentaries speculating on the unexpected news and the housing market's future.

IHS attributed the uptick in prices to three factors: Current low mortgage rates, strong investor demand, and a drop in homeowners listing their homes for sale. The third force, IHS said, was caused by an erosion in equity from the collapse in home prices, reducing the pool of homeowners able to sell.

Calling the price stabilization "welcome news," IHS said that the rise in prices is beneficial in two ways. First, higher prices will bring down the number of underwater homeowners, in turn reducing the number of future foreclosures. Second, a positive gap between home prices and inflation will cause wealth to rise and give a boost to consumer spending.

According to The Kiplinger Letter Vol. 89 No. 21

The Real Estate Market forecast is looking good, the say:

"Housing Market's strongest spring showing in 5 years.."

" Sales of existing homes will rise about 3% in 2012, to 4.5 million. A similar improvement is likely for new-homes sales, which will reach 340,000 or so.."

"Low mortgage rates continue to lure buyers, though lending standards remain tight. The average 30- year fixed rate mortgage is down to 3.78%, the lowest since record keeping started to track rates in 1971"

" Home prices will be flat or slightly up this year and rise about 3% in 2013."

So what does all this mean, well in one small sentence " that this is the time to buy. "