- Posted at 9:46, December 03, 2013
- By Russ Bleemer
A California real estate data company's new October home price report shows sales slowing in the face of rapidly rising prices, but forecasts the rising prices to result in increased sales and more investment home buying.
DataQuick of San Diego produces a monthly "Property Intelligence Report" of a sampling of 42 U.S. counties. For the second month in a row in October, prices increased in every county surveyed.
But sales slowed in 33 of them.
Locally, the survey covers Queens County, where home prices grew half a percent in October from September, and are up slightly more than 6% over the year period, and Suffolk County, where in the same periods values rose at a slower rate--respectively, .27% and 4.76%.
The only other local county included is Fairfield, Conn., which did better, with October prices rising .99% in October, from September, and 10.1% over the year.
And, unlike much of the rest of the national sampling, Queens, Suffolk and Fairfield did well in the survey of sales figures. Sales are up in October in the counties, respectively, 44.66%, 25.41%, and 17.3%, and, over the year, 14%, 36.78%, and 9.5%.
Counterintuitively, the company is saying that increasing prices will help sales nationally soon. In its press release, Gordon Crawford, DataQuick's vice president of analytics noted, "[a]s homeowners with negative equity experience home price growth, they will become more motivated to list their property because positive equity means they are in a position to sell without being required to bring cash to the closing table."
Homes listed for sale and overall sales will increase as more borrowers find themselves no longer underwater. However, we can expect purchases by investors to continue to be a large share of all purchases, as a lack of affordable properties and tight credit standards will continue to drive high rental demand and keep many entry-level home buyers out of the market.
You can see the full 42-county report HERE.