Nevada City Virtual Tour

Monday, October 28, 2013

Apartment Demand Soars Rents Constrained

Apartment Demand Soars, Rents Constrained

Apartment vacancies fell by 10 basis points in the third quarter to 4.2 percent, according to a preliminary look of the third-quarter market report for the apartment, office, and retail sectors.
Asking rents increased by 0.9 percent in the third quarter. But the high demand won't automatically mean rent increases.
“Despite the persistent strength of the apartment market recovery, rent growth is being held in check by a still-weak recovery in the economy and the labor market,”  “Too few jobs, many of dubious quality, and too little income growth are constraining landlords’ ability to raise rents.”
The office sector also posted declines in vacancies, falling by 10 basis points in the third quarter to 16.9 percent. The struggle in the labor market continues to constrain demand for office space, the report notes.
Meanwhile, Reis data backed up recent media reports of a sluggish recovery in the retail sector. Vacancies for neighborhood and community shopping centers were at 10.5 percent in the third quarter, falling 30 basis points year-over-year.
“Neighborhood and community center rents lost a lot of ground given the severity of the recession and the sluggish recovery,” the report notes.
Some submarkets in retail are showing signs of growth, but they tend to be insulated in wealthy neighborhoods. Other neighborhoods are still facing empty, older spaces from businesses that closed or moved elsewhere.
In general, malls are posting a stronger recovery than shopping centers. National vacancies in shopping malls are falling at a faster pace than neighborhood and community shopping centers.  Mall vacancies stood at 8.2 percent in the third quarter, dropping 10 basis points from the second quarter.

Friday, October 25, 2013

Home Sales Down, BUT Prices Up

Home Sales Down, BUT Prices Up

After hitting the highest level in nearly four years, existing-home
sales declined in September, but limited inventory conditions
continued to pressure home prices in much of the county.

Time to sell?

Saturday, October 5, 2013

Home Value Appreciation Rate Hits 6 Percent in July

Home Value Appreciation Rate Hits 6 Percent in JulyNational home value appreciation rose again in July, up 0.4 percent from June to a Zillow Home Value Index of $161,600, according to the July Zillow Real Estate Market Reports. Home values were up 6 percent year-over-year in July, the 14th consecutive month of annual appreciation and the first time year-over-year appreciation rates have reached 6 percent since 2006.

Monthly home values have risen in 20 of the past 21 months, beginning in November 2011 after the U.S. market bottomed in October of that year. The 6-percent national rate of annual appreciation is the highest since August 2006.

Of the 393 metros covered in July, 289 (73.5 percent) registered month-over-month appreciation, and 303 (77.1 percent) showed annual appreciation. All 30 of the largest metro areas covered by Zillow registered both monthly and annual appreciation in July, and all have hit their bottom and are expected to show appreciation in the next 12 months. Metros with the largest annual gains in July included Sacramento (33.1 percent), Las Vegas (30.8 percent), and San Francisco (27.8 percent).

For the 12-month period from July 2013 to July 2014, U.S. home values are expected to rise another 4.8 percent to approximately $169,308, according to the Zillow Home Value Forecast. Large metro areas expected to show the most appreciation over the next year include Sacramento (19.6 percent), Riverside (19.2 percent), and San Francisco (13.2 percent).

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