Home sales spike nearly a decade after great recession, report says
UPDATE 6/22/2016 6 PM: The housing market is booming. New numbers show existing home sales are at levels that we haven’t seen in nearly a decade.
The National Association of Realtors said existing home sales grew 1.8 percent in May, the highest level since February 2007. Economists say low interest rates sparked the buying frenzy; also, homeowners who have built up equity in their current homes are trading up or downsizing.
The report shows the national median home price is only $239,700. However the idea of home sweet home is still pretty sour on the Central Coast. The median home price in Monterey County is $539,000. It’s a figure that can be misleading.
“We have such a diverse amount of housing stock,” said Jeff Davi, a real estate agent with Monterey Peninsula Home Team. “We have things in the Salinas Valley as low as $100,000 and we have things in Pebble Beach, $10 million to $20 million. So you end up with a real diversity, so the median or average home price accurate for the peninsula, higher priced areas.”
Santa Cruz County is reporting an even higher median home price. According to Real Options Realty, it’s more than $800,000.
“Santa Cruz County has a higher median home price range because they don’t have the lower priced stock,” Davi said.
But there are more affordable options in Watsonville, which is a hot area for homebuyers. In Monterey County, there are a number of communities welcoming homebuyers.
“For an affordability standpoint and from a first-time homebuyer standpoint, Salinas is a great opportunity,” said Kevin Stone, CEO of the Monterey County Association of Realtors. “Marina, some of our other peninsula cities like Seaside, are also seeing some real good opportunities for first-time homebuyers.”
It’s getting into that home that can be troublesome. Thirty percent of homebuyers in May were first-timers, down from April’s figures.
“Saving for a down payment, that’s the biggest challenge we’re seeing right now,” Stone said. “That’s probably nationwide and statewide as well. First-time homebuyers, especially those getting out of school, are encumbered with debt associated with schooling. Because of the high cost of housing and rentals, the low vacancy rate in this area specifically, it’s hard to save that much money when you’re spending on rent and other things.”
ORIGINAL POST:
The National Association of Realtors reports home sales in the U.S. are reaching a new high, not seen since 2007.
The median home price across the country is $239,000, but homes on the Central Coast carry a much higher price tag. The median home price in Monterey County is $550,000.
KION’s Mariana Hicks takes a look at what that national average will get you.
