Across the nation sales rose nicely in 2012, 2013 and the first half of 2014 but lost momentum through this summer as happened here in Lake Arrowhead. Contrary to the usual summertime upswing, our sales were nearly flat while prices declined.
For encouragement, We looked at Consumer Sentiment, a successful measure of consumer’s future expectations which showed a strong, positive sentiment into Fall.
Arrowhead Woods home prices have risen to new heights through August 2014 to $365,000. This is an increase of 20% in the past 12 months. As exciting as this price rise is, the past four months tumbled 12%. The median sale price a year ago was $305,000.
Lawrence Yun, The National Association of Realtors chief economist said buyers may be getting skittish about the prospect of higher interest rates as the Federal Reserve winds down a bond-buying program that was designed to pump up the economy. Lenders are still imposing tight credit underwriting standards, Yun said.
He estimated that sales would be roughly 15% higher if lending standards were as they were in 2000, a year he considers “normal” because it occurred before the housing bubble and collapse. Then, he said, the average credit score of someone taking out a loan backed by the FHA was 660; today it is roughly 700.