Our index showed the smallest monthly gain of the year in September, and it seals our fate – we’re not going to have double-digit appreciation this year. But the 8.2% gain we are tracking year-over-year still looks pretty good!
“Most economic indicators suggest that home prices can see further gains,” S&P Dow Jones indexes managing director David Blitzer said, before adding the index is rising “at the fastest annual rate since June 2014.”
Seasonally adjusted, 13 of the 20 cities in the composite reported price increases in the year ending September 2017. Seattle, Las Vegas, and San Diego reported the highest year-over-year gains among the 20 cities.
San Diego Non-Seasonally-Adjusted CSI changes:
| January ’17 | |||
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The highest reading of the San Diego NSA CSI was 250.34 in November, 2005.
The most-recent low point was 144.43 in April, 2009.
Seattle appears firmly planted in first place among the 20 cities, reporting a 12.9 percent increase in home prices for the year ended in September. Las Vegas followed with a 9.0 percent, and San Diego was up 8.2 percent.
Thirteen cities reported greater price increases in the year ending September 2017 versus the year ending in August.
http://www.mortgagenewsdaily.com/11282017_fhfa_case_shiller_prices.asp
The part that confuses me, well not confuses but more interests me is why so very many “winners” are “letting it ride.” Sure Prop 13 is part of the issue as it allows you to “let it ride” for a lower carrying cost but there are still carrying costs and with Props 60 & 90 why not use those? A good friend will be retiring soon and moving to Clinton, Washington. The city of Los Angeles will be sending a monster retirement check every month there for thirty or more years.
why so very many “winners” are “letting it ride.”
It has been very unusual, historically, for prices to be so high and yet so few are moving. Grandkids? Hassle factor? Reverse mortgages?
It may be as simple as idiots like me that went/leapfrogged straight from first house to last house.
Getting personal as an example. We had two extra cats and two extra couples plus our youngest here for Thanksgiving. No one was inconvienced at all. Giving up the modestrambling California ranch home is not a step up or forward.
Giving up the modestrambling California ranch home is not a step up or forward.
Agreed, and I’ll concede that any boomer who is already in a single-level house is likely to stay put – if for no other reason, it’s too hard to find another one that’s better.
Maybe there aren’t enough boomers stuck in a two-story that are inconvenienced to the point that they NEED to move. They somehow get by instead, and because of the capital-gains tax on their profit over the first $500,000, they die in place and kids sell tax free.
I had relatives who had an acre spread in the Anaheim Hills. They made it to their late eighties, and both died there, at different times. They stuck to that place like glue. They could have lived anywhere in the world, easily. If they wanted to buy a 10M house in cash, they could have done it without blinking. Their reasons for not moving by order of importance:
Proximity to:
1. Accountant
2. Doctors/Specialists
3. Kids/Grandkids
Accountant is no longer a “local” consideration. By accountant we all understand accountant financial advisor stock broker et al.
I just did one with my mom’s who is based in western Massachusetts but lives in NYS and mom is in FL while I am in CA.
“Accountant is no longer a “local” consideration. By accountant we all understand accountant financial advisor stock broker et al.”
Not for this guy. Accountant was full time, for good reason. Many dynamic assets of considerable heft. His hobby wasn’t the stock market. It was how to manage obscenely high yearly donations to assorted charities. He was great at keeping a low profile, while being outlandishly well-to-do. He was one of those conservatives who were secretly bleeding heart liberals. His donations offended me. “you’re supposed to be conservative! what the hell’s wrong with you?!” I never said that to him, but I thought it a lot. I’m not against charity. If it’s safe and sane. He was always safe, but not always sane, imo.
Anyway, I’ve always suspected there’s more of him out there than we’re aware. His Anaheim hills spread, which was impressive, was a joke compared to what he could afford. But that’s where he plopped, and he never left, while keeping many charities lights on all over the world.
Rob
Folks are not letting it “ride”, they just cannot find anything better with a reasonable costs. Your movements from SFR/CONDO UP in price have been restricted by outrageous government fees, lawsuits by neighbors preventing building etc. So the normal flow to a new property is limited to “custom” build to cover the costs. I don’t see them getting any smaller, with the government reducing the ability to move especially if property taxs are not deductible anymore.
Why move: its all about $ and avoiding the hassle. Look for lower inventory if all these tax laws pass.