Home Values Increasing

Market Conditions
by Carla L. Davis
Realty Times

Many investors have been hoping that what was a seasonal slowdown in the last quarter of 2005 will turn into quick, consistent drops in home value.

But even when appreciation rates slow by several percentage points, homes are still increasing in value at rates near 10 percent -- and sellers know it.

Blending old with new, San Diego County, California, has become what experts call one of the most desirable places in the country to live.

Even with the real estate market slowing in the area, average home price for the area was 4.9 percent above what it was last year. The median home price in the area is currently $571,300. Consider those numbers and the fact that the County offers miles of beach access, mountains, and desert and a booming economy and it is no wonder people flock to the area.

Experts warn, however, that while you can still get amazing returns when selling your home, sellers need to be prepared for their homes to sit on the market longer than usual. This is a direct result of what our experts refer to as a "moderate market," where slowing rates of appreciation, a growing inventory, and higher interest rates cause the negotiating tables to be more even, instead of in strong favor of sellers.

This is a far cry from early 2003, where, according the National Association of Realtors, 21 percent of all houses went into contract less than one week after going on the market. CNN Money adds that on average, houses sold in just five weeks -- nearly half the time it took throughout the 1990s.

Another area of interest for investors is further up the western coast, in Portland, Oregon. Portland, home to an increasing diverse half a million population, saw a substantial downturn in the month of December. New listings fell by 6 percent -- and accepted offers dropped almost 10 percent. Theses figures may be more the norm now, but earlier in 2005 the market in Portland was thriving. On average there was a 15 percent increase in sales price -- which brought the 2005 average to $289,000.

These increases have some thinking the market is forming a bubble, but our experts note that these prices simply demonstrate that Portland's market is finally catching up with other major west coast cities.

Has the real estate fever experienced in the United States over the last few year been caught by our northern neighbor. Our real estate experts in Edmonton, Alberta, think so.

Edmonton is home to over a million residents and is the capital city of Alberta. With supply down by 20 to 30 percent -- prices are set to rise -- and quickly. The number of sales were up 14.5 percent last year alone. The average price for a residential property last year was $196,000 -- that is a 7 percent increase.

And finally today, we travel east, to the great state of Pennsylvania. Pittsburgh, Pennsylvania, known for old world architecture and historical landmarks, has seen a steady movement to the real estate market. Appreciation rates have ranges anywhere from 3 to 5 percent a year -- consistent with, if not slightly under, the national average. Time will tell if this trend continues in 2006. Warm temperatures have started Pittsburgh's market off early this year -- perhaps giving it the jump start it needs.

Regardless of the area you live in, there is no sure-fire prediction of what the market will do. Experts urge that consumers look to patterns in their area's real estate past and pay close attention to the state of the local economy.

Realty Times