Scottsdale home prices increased in August, yet the pace of these gains continues to slow, helping to improve affordability for potential buyers.
Real estate data provider CoreLogic said recently that Scottsdale home prices rose 6.4 percent in August compared with a year ago. That marks a decline from an annual gain of 6.8 percent in July. Scottsdale home prices had been rising as much as 12 percent yearly toward the end of last year.
Scottsdale Home Prices Not Adjusted for Seasonality
Prices rose 0.3 percent in August from July. But CoreLogic's monthly figures aren't adjusted for seasonality, such as buying that occurs during warmer weather.
Sales struck a plateau in the middle of last year and have remained subdued for much of 2014. As sales have slowed, so have price gains. That should eventually make it easier for would-be buyers to afford a Scottsdale home.
As the pace of price gains has slowed, so have sales of existing homes.
Home Prices Dropping Nationwide Too
Nationwide, the National Association of Realtors reports that purchases fell 1.8 percent to a seasonally adjusted annual rate of 5.05 million in August. Sales fell from a July rate of 5.14 million, a figure that was revised slightly downward. Overall, the pace of home sales has dropped 5.3 percent year-over-year.
Economists associate annual sales of 5.5 million with a healthy market.
The NAR also said that median sales prices had risen 4.8 percent over the past 12 months to $219,800, but that average slipped slightly in August compared to prices in July and June.
Follow news on Scottsdale home prices and the housing recovery right here by periodically checking back in the Scottsdale Real Estate News section of our website under Scottsdale Real Estate Categories.
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Scottsdale home equity is rising once again. Home gains over the past two years have restored a lot of money to most homeowner's available fund balance through the value in their home versus what they owe on it. As a result, more and more Scottsdale homeowners are taking out HELOC's (Home Equity Lines of Credit) again.
Through July, some 449 of 884 markets or 48.9 percent of America's housing markets, have reached or exceeded median peak price levels, according to Homes.com.
RealtyTrac recently reported that the 12 months ending in June 2014 a total of 797,865 Home Equity Lines of Credit (HELOCs) were originated nationwide, up 20.6 percent from a year ago and the highest level since the 12 months ending in June 2009.
What Exactly is a Home Equity Line?
Home Equity Lines of Credit are non-purchase loans that are secured by the equity (the appraised market value of a property minus any other loans secured by that property) and can be used by homeowners to fund home improvement projects or other purchases.
This recent rise in HELOC originations indicates an increasing number of homeowners are gaining confidence in the strength of the housing recovery and, more importantly, have regained much of their home equity lost during the housing crisis. Nearly 10 million homeowners nationwide, representing 19 percent of all homeowners with a mortgage, now have at least 50 percent equity in their homes, according to RealtyTrac data. Meanwhile the percentage of homeowners with severe negative equity has decreased from 29 percent in the second quarter of 2012 to 17 percent in the second quarter of this year.
With new loans slowing to a crawl, lenders have been looking for ways to come up with products to offer homeowners who have already refinanced or gotten their primary loan. A Scottsdale home equity loan (HELOC) enables homeowners to leverage additional equity they may have gained since refinancing while still preserving the rock-bottom interest rate on their first position loan.
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