Salient to Investors:

Zillow expects 5 percent mortgages by year-end and the 10 places where the percentage of monthly income will be pushed furthest above the average are, in order:

  1. Stockton, Ca – where the median price of a home will rise 22.8 percent by September.
  2. Honolulu, Ha – where the median price will rise 4.2 percent by the end of September.
  3. Portland – where the median price will rise 4.6 percent by September.
  4. Sacramento, Ca – where the median price will rise 16.7 percent by the end of Q3.
  5. Riverside, Ca – where the median price will rise 23.9 percent by September.
  6. San Jose, Ca – where the median price will rise 7.4 percent gain by the end of Q3.
  7. San Diego, Ca – where the median price will rise 8.4 percent by September.
  8. Santa Rosa, Ca – where the median price will rise 9.5 percent by September.
  9. San Francisco, Ca – where the median price will rise 8.1 percent by September.
  10. Los Angeles, Ca – where the median price will rise 10.6 gain by September.

If mortgage rates rise to 6 percent by year-end, the 10 places where the percentage of monthly income will be pushed furthest above the average are, in order:

  1. Fresno, Ca – where the median price will rise 10.8 percent by September.
  2. Phoenix, Az – where the median price will rise to rise 9 percent by the end of Q3.
  3. Bakersfield, Ca – where the median price will rise 18.2 percent by September.
  4. Visalia, Ca – where the median price will rise 16.4 percent by September.
  5. Miami, Fl – where the median price will rise 2.1 percent by September.
  6. Seattle, Wa – where the median price will rise 8.1 percent by September.
  7. Denver, Co – where the average price will rise 1.3 percent by September.
  8. Sarasota, Fla – where the average price will rise 0.7 percent by the end of September.
  9. Virginia Beach, Va – where the average price will fall slightly by the end of September.
  10. Modesto, Ca – where the average price will rise 23.7 percent by September.

Read the full article at http://www.bloomberg.com/money-gallery/2014-01-09/priced-out-where-higher-rates-could-hurt-home-buyers-most.html

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On January 9, 2014   /   Borrowing, Homebuilding, US Economy, US Real Estate