Todd & Lisa Sheppard
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BRE # 01154225

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Archive for September 2017

U.S. Foreclosure Rate Falls to 10-Year Low

September 20th, 2017   by lisasheppard

The current real estate market in the U.S., with home shortages, price appreciation and a thriving job market, have pushed down the number of foreclosures and mortgage delinquencies.  California and the Bay Area are reporting lower numbers than the national average.

CoreLogic’s recent Loan Performance Insight Report, which tracks the health of the mortgage market through June 2017, has the national foreclosure rate at an all-time low of 0.7%, the lowest in 10 years.  The number of borrowers delinquent on their mortgages by 30 days or more dropped to 4.5%.  The drop is being attributed to an increase in home pricing, up 6% since June 2016 and the addition of 2.2 million jobs over the last year.

California’s foreclosure rate was 0.3% as of June down from 0.4% a year earlier.  The number of 30+ day delinquencies also dropped to 2.8%.

The Santa Rosa, San Francisco and Napa areas had slightly lower foreclosure rates than the state average, all at 0.2%, while San Jose fell in line with the state average of 0.4%.

Home price appreciation and a thriving job market have pushed down foreclosures and mortgage delinquencies across the country, with California and the Bay Area posting lower numbers than the national average.

Mortgage delinquency rates are expected to decrease further over the next year due to continued job growth and projected home price appreciation of 5%.

Sonoma County Median Home Price Hits New Record

September 5th, 2017   by lisasheppard
July saw a dip in the number of home sales from June (from 512 homes in June to 406 in July). The dip in home sales didn’t affect home appreciation, which managed to climb 3% from June to July.  Brokers are blaming the home appreciation to persistent low inventory which has been plaguing Sonoma County for the last 4 years.  Lower-priced homes tend to garner multiple offers which typically results in the home selling over asking price.
Buyers, in an effort to compete and secure a home in this tight market, are seeking out agents who have clients that are looking to list their home, but have not yet put the home on the market.  Many of these buyers are willing to pay 10% or more over asking price for these homes.
Sellers, unfortunately, have become reluctant to sell their home because of the challenge of finding a suitable replacement home.  With a tight rental market also in place, sellers are increasingly resistant to listing their home knowing they will likely be faced with trying to find affordable temporary housing.
While the number of new builds in the County has increased during the last 18 months, the number of units under construction will still fall short of demand.
With the current market factors in place, it appears home prices will continue to go up!