Santa Cruz County Market Barometer

Recently released figures indicate real estate nationwide and Santa Cruz real estate are continuing to steadily improve. Here are seven signs that demonstrate the upturn:

1. Housing affordability has risen dramatically. This is due to a combination of reduced real estate prices and record-low mortgage rates.

2. Housing starts are increasing, driven mostly by multifamily starts.

3. Existing home sales increased in January. That means we’ve now had three months of gains out of the past four months.

4. Total housing inventory fell to a 6.1 month supply at the end of January. This means that on average it now takes just over 6 months to sell a home, which is an improvement. According to Lawrence Yun, NAR chief economist, "The broad inventory…

The latest statistics indicate that the U.S. real estate market is at or very close to the bottom right now.

On January 18, Bloomberg News reported, "Confidence Among U.S. Homebuilders Climbs to Highest Since 2007." Bloomberg said, "The confidence measure, which increased for a fourth straight month, improved in all four regions of the U.S. This is ‘yet another indication of the gradual but steady improvement that is beginning to take hold in an increasing number of housing markets nationwide,’ Bob Nielsen, chairman of the National Association of Home Builders and a builder from Reno, Nevada, said in a statement.”

The official data on home prices might not show the recovery yet, because they are always months behind, but most other data…

From national and Santa Cruz County real estate to the U.S. economy, the predictions for 2011 are in.  Like any predictions, they vary from gloomy to cheery.  Overall, the U.S. forecasts for national and Santa Cruz County real estate are more positive than negative for 2011.

1. Real Estate Economy Watch predicts:  People are interested in buying a foreclosure.  Nearly half (49 percent) of U.S. adults are at least somewhat likely to consider purchasing a foreclosed property, up from 45 percent in May, 2010. Despite the rising interest in buying a foreclosed home, an increasing number of U.S. adults also recognize negative aspects to buying a foreclosure.

2. Bill Redfern, CEO of A Buyer’s Choice Home Inspections says:  Presale inspections are on the…

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The news is everywhere – and it’s good! Those who own or want to own Santa Cruz homes can take a deep breath.  Home equity is on the rise, according to a recent study by Zillow.com, an online real estate valuation researcher.  And, Federal Reserve economists agree. Although home equity isn’t what it was three years ago, it’s on the rise.

The Fed’s most recent “flow of funds” survey indicates that the net equity of national homeowners grew by almost $1 trillion over the first three quarters of 2009, and rose further by $418 billion between June and September of last year. Compared to before the bubble popped, that’s really not that impressive. However, after three straight years of steadily dropping equities, it could signify the long awaited end of the…