Home Prices Rise Across the Country and Here in Alamo

Existing-home sales were down a little for the month of September, but overall home prices were up across the nation. The number of homes for sale is continuing to decrease, and in turn we have experienced the seventh straight month in a row with home prices rising here in Alamo and across the country.

An existing-home sale is a completed transaction that includes single-family homes, townhomes, condominiums and co-ops. For the month of September existing-home sales dropped by 1.7 percent to a seasonally adjusted annual rate of 4.75 million. However, existing-home sales in September were up 11 percent over September 2011. Lawrence Yun, NAR chief economist, said the market trend is up. “Despite occasional month-to-month setbacks, we’re experiencing a genuine recovery,” he said. “More people are attempting to buy homes than are able to qualify for mortgages, and recent price increases are not deterring buyer interest. Rather, inventory shortages are limiting sales, notably in parts of the West.”

Historically low mortgage rates are continuing to help the housing market. According to Freddie Mac, the national average mortgage rate on a 30-year fixed-rate loan was 3.47 percent in September, down from 3.60 percent in August. September of 2011 mortgage interest rates were averaging 4.11 percent.

The national median existing-home price last month for all home types averaged $183,900.  Home prices were up 11.3 percent over this same period of time last year. We have not seen home prices increase for seven consecutive months since the time period of November 2005 to May 2006.

Decreased housing inventory and increasing home prices make now the perfect time to sell your home. If you are ready to sell or buy a home, contact me by email or call me, Brad Gothberg, at (925) 648-5326. I have been a real estate professional for 23 years, and my qualifications include the production of over $105 million in sales within the past 5 years.