Jason Bernabei, TriCastle Realty
DEL MAR, August 28, 2012 –
Gooooddd glorious end-of-summer Monday Morning Sannnnn Diego!!!! School is back
in session, and my lil First Grader is all tears and wants only to go down to
15th St. Powerhouse Park here in Del Mar to continue his education
as a budding surfer. While I’d love nothing more than to join him in putting my
hands in my head at the prospect of each and every Monday morning not in the
water as well, I have important Housing news to bring you, once again.
DEL MAR, August 28, 2012 –
Gooooddd glorious end-of-summer Monday Morning Sannnnn Diego!!!! School is back
in session, and my lil First Grader is all tears and wants only to go down to
15th St. Powerhouse Park here in Del Mar to continue his education
as a budding surfer. While I’d love nothing more than to join him in putting my
hands in my head at the prospect of each and every Monday morning not in the
water as well, I have important Housing news to bring you, once again.
After analyzing
various experts’ positions over these past few quarters, the growing National
consensus is that the Housing market recovery appears to be sustainable. If so,
THAT IS GRRRREAT NEWS for San Diegans and for the American economy! Most recent to
join the choir of good tide bearers is the Federal Housing Finance Agency, or
FHFA. I’ve blogged pretty
regularly on the data of the FHFA’s Home Price Index as a trusted industry
source. Today it tells the tale of home prices having risen by a seasonally-adjusted 0.7% between
May and June 2012. The index is now up 3.0% overall in the past 12 months,
making its biggest quarterly gain since 2005 in the last quarter.
The FHFA’s Home
Price Index measures home price changes through consecutive home sales for
homes whose mortgages are backed by Fannie Mae or Freddie Mac, and for which
the property type is categorized as a “single-family residence,” or SFR. Condos,
townhomes, non-residential real estate, and homes with jumbo mortgages are
excluded from the Home Price Index, as are all-cash home sales.
The HP Index is a
trusted source as mentioned, however it is openly imperfect. Here’s the rub: like
so many other home valuation trackers the HPI uses aged data. The data I
reference speaks to June, and nothing beyond. So the question
is how much value is there to be placed on data that’s two months old? Some experts
may say that the value is in any assessment of TODAY’S housing market, that the HPI is only reflective of
the Housing market as it looked in the recent past. The truth is that if you in
search of real-time home price data, you simply won’t get it from the FHFA.
However, the HPI is a useful Housing market gauge for economists as it
highlights in great detail Housing trends that guide the next moves of the
industry in many ways, such as the making of and re-shaping of the Law in
regards to important industry issues surrounding Lending, Mortgage Insurance,
and the Short Sales Process, to name a few.
So the bottom-line
is that the news is good today in Housing, and trending in the right direction
nationally, but for the most up-to-date real time data available, you don’t
want to go to the HPI, you’ll want to call me, Jason Bernabei. J Also, feel free to contact me if you are
looking to refi, or need a purchase loan, or are looking to buy or sell
property, need a good short sale negotiator, or if you just want to shoot the
breeze on Housing. Until next time San Diego, enjoy the dog days of summer in
America’s Finest City!
Jay's Outlook: SUNNY!
Jason Bernabei, TriCastle Realty
Jason Bernabei, TriCastle Realty
