November California Housing Data: Volume up 14%; 11 Strait Months of year-over-year Price Increases; Cash Buyers 32.5% of All Sales; 30-Year Mortgage Down to 3.32%

  • December 14, 2012
  • devinlucas
November property prices were up 2.1% from October and 19.3% from November 2011, making this past November the 11th straight month of year-over-year increases, according to the real estate information firm DataQuick. Volume was up over 14%, making November the highest month of volume in six years. “More buyers feel confident about their jobs, the economy and the likelihood housing prices have bottomed,” said John Walsh, president of research firm DataQuick. 

Partially driving the volume and pricing, the 30-Year Fixed Mortgage Rates are down again according to the latest Freddie Mac survey, to an average of 3.32%.

All cash purchases continued to rise: 32.5% of all California sales in November were all cash, more than double the long-term average. There is mixed analysis and emotion as to the influx of cash investors. Some see another “speculation” market brewing; while others, such as Ed Leamer, director of the UCLA Anderson Forecast of the economy, was quoted in the Los Angeles Times stating, “I am inclined to think that what [others] call speculators know more about the market than [they do]… It’s a good thing for professionals to be putting a floor under home prices.”

Foreclosures only made up 16.6% of all sales, down almost half from November 2011 and the lowest level since October 2007. “Distress sales have been declining, especially in California,” where foreclosures are processed rapidly outside of the court system and investor interest is high, housing analyst Celia Chen said.

Is it the right time to buy? That of course is a personal decision and the long-term future of housing is anyone’s guess. But for those who can qualify, interest rates remain at all-time lows. A shortage of supply, ample competition (including cash buyers) and other factors make the market for desirable homes in good locations likely to continue to escalate over the short term.

Looking to buy? Obtain your pre-approval from a local reputable lender and consult a local respectable REALTOR®. All real estate is local and only a local REALTOR® has expertize in the local market you’re searching.

-Devin Lucas

Author Devin R. Lucas is a Real Estate Attorney, Broker and REALTOR®, specializing in Newport Beach, Costa Mesa and Orange County, serving individual, investor and small business interests in real estate.  Active with the Newport Beach Association of REALTORS® and Costa Mesa Chamber of Commerce, Devin R. Lucas Real Estate is an independent real estate brokerage and law practice located in Newport Beach, California.

Devin R. Lucas Real Estate
Real Estate Attorney | Real Estate Broker | REALTOR® | | BRE No. 01912302
949.478.1623 office | 888.667.6038 fax

2901 West Coast Highway Suite 200
Newport Beach | California | 92663-4023

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