|
News and Happenings in the Area
|
| California home sales rise in December, posting 11-month sales high, C.A.R. reports - 1/18/2012 8:32:00 PM | LOS ANGELES (Jan. 17) – California home sales rose for the third consecutive month in December, marking the highest level since January 2011, according to data from the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). Sales also were up from a year ago, marking the sixth consecutive annual increase.
“With the economy slowly improving, home buyers – investors and first-time buyers alike – took advantage of affordable interest rates and made a push to close escrow by the end of year,” said C.A.R. President LeFrancis Arnold. “Robust sales over the past few months signal the housing market is treading above water on its own in the first full year without the government stimulus that has helped housing in the last couple of years.”
Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 520,940 in December, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. December’s sales were up 3.3 percent from November’s revised pace of 504,420 and were up 0.1 percent from the revised 520,330 sales pace recorded in December 2010. The statewide sales figure represents what would be the total number of homes sold during 2011 if sales maintained the December pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
The statewide median price of an existing, single-family detached home posted its second consecutive monthly gain, increasing 1.8 percent to $285,920 in December, up from a revised $280,960 in November. However, the median price was down 6.2 percent from the revised $304,770 median price recorded in December 2010.
“Fourth quarter sales were stronger than we expected, thanks to recent improving consumer confidence and an economy that’s slowly showing signs of growth. As a result, sales came in slightly above our fall projection,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “For 2011 as a whole, sales reached a preliminary 497,860 homes sold statewide, up 1.1 percent from the 492,290 homes sold in 2010. However, the statewide median price declined 6.3 percent for the year, to reach a preliminary $285,950, down from the revised $305,010 recorded in 2010.
“Home prices are stabilizing for the distressed market, where we see robust demand, but we continue to see downward pressure on home prices in some higher end markets,” said Appleton-Young.
Other key facts of C.A.R.’s December 2011 resale housing report include:
Housing inventory remains tight throughout California, with the Unsold Inventory Index for existing, single-family detached homes declining to 4.2 months in December, down from 5.0 months in November and down from a 5.0-month supply in December 2010. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.
Thirty-year fixed-mortgage interest rates averaged 3.96 percent during December 2011, down from 4.71 percent in December 2010, according to Freddie Mac. Adjustable-mortgage interest rates averaged 2.79 percent in December 2011, compared with 3.31 percent in December 2010.
The median number of days it took to sell a single-family home edged up to 58.7 days in December 2011, compared with a revised 58.0 days for the same period a year ago.
| | C.A.R. releases Q3 Housing Affordability Index - 11/22/2011 12:36:00 PM | LOS ANGELES (Nov. 10) – Lower home prices and record-low interest rates in the third quarter of 2011 contributed to an improvement in housing affordability for California home buyers, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.
The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California rose to 52 percent in the third quarter of 2011, up from 51 percent in second-quarter 2011 and was up from 46 percent in the third quarter of 2010, according to C.A.R.’s Traditional Housing Affordability Index (HAI).
C.A.R.’s HAI measures the percentage of all households that can afford to purchase a median-priced, single-family home in California. C.A.R. also reports affordability indices for regions and select counties within the state. The Index is considered the most fundamental measure of housing well-being for home buyers in the state.
“While housing affordability has improved in most areas of the state, would-be buyers, especially first-timers, are having difficulty getting loans,” said C.A.R. President Beth L. Peerce. “When affordability is high, first-time buyers typically make up a large share of the market, such as in the mid-90s, when first-timers made up half of the market. First-timers have made up just a third of the market this year, illustrating the hurdles many home buyers are experiencing in qualifying for a home loan.”
Home buyers needed to earn a minimum annual income of $61,530 to qualify for the purchase of a $292,120 statewide median-priced, existing single-family home in the third quarter of 2011. The monthly payment, including taxes and insurance, would be $1,540, assuming a 20 percent down payment and an effective composite interest rate of 4.63 percent. The effective composite interest rate in second-quarter 2011 was 4.85 percent and 4.78 percent in the third quarter of 2010.
Regionally, housing affordability rose in most counties in the San Francisco Bay Area but was down in Los Angeles County and Fresno County. At 77 percent, San Bernardino County was the most affordable, while San Mateo County was the least affordable, with only 25 percent of households able to purchase the county’s median-priced home.
| | C.A.R. applauds reinstatement of FHA loan limits - 11/22/2011 11:56:00 AM | C.A.R. applauds reinstatement of FHA loan limits; urges longer extension of flood insurance
LOS ANGELES (Nov. 18) – The U.S. Congress late yesterday passed a “minibus” appropriations measure that will continue to fund the government and includes a provision to reinstate the Federal Housing Administration (FHA) loan limit in high-cost areas for two years. President Obama signed the measure into law today.
The higher Fannie Mae, Freddie Mac, and FHA conforming loan limits of $729,750 expired Oct. 1, when it was reduced to $625,500. The passage of H.R. 2112 provides for an extension of FHA-insured mortgages at the higher level through December 2013. It also provides for a short-term extension of the National Flood Insurance Program (NFIP) through Dec. 16, 2011. C.A.R. and NAR strongly urge Congress to work on a five-year NFIP reauthorization bill to provide certainty and avoid further disruption to real estate markets.
“C.A.R. is pleased the Senate and House were able to come to a reasonable compromise on extending the FHA loan limit to ensure affordable home financing for middle-class buyers,” said 2012 C.A.R. President LeFrancis Arnold. “However, we are disappointed that the Senate and House could not agree on increasing the loan limits for Fannie Mae- and Freddie Mac-insured loans, especially since the Senate bill included a premium on high-cost loans that protected U.S. taxpayers from footing the costs.”
The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) and the NATIONAL ASSOCIATION OF REALTORS® (NAR) have long advocated making permanent higher loan limits.
A continued government role in housing financing will ensure stability in mortgage markets and that home buyers in high-cost areas will be able to refinance and obtain FHA financing for new home purchases more easily. However, it will cost these home buyers more to finance their homes either through jumbo mortgages or with FHA than it would have through Fannie Mae or Freddie Mac.
The conforming loan limit determines the maximum size of a mortgage that government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac can buy or “guarantee.” Non-conforming or “jumbo loans” typically carry higher mortgage interest rates than conforming loans, increasing monthly payments and hampering the ability of families in California to purchase homes by making them less affordable.
| | October Sales and Price Reoprt - 11/22/2011 11:54:00 AM | LOS ANGELES (Nov. 15) – California home sales posted a marginal increase in October and also were above year-ago levels, according to figures released today from the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).
Closed escrow sales of existing, single-family detached homes in California edged up to a seasonally adjusted 493,240 units in October, up 0.9 percent from a revised 488,700 in September, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. October home sales also were up 8.5 percent from the revised 454,740 units sold during the like period a year ago. The statewide sales figure represents what would be the total number of homes sold during 2011 if sales maintained the October pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
“Based on preliminary analysis, it appears that the lower conforming loan limits has had a cooling effect on home sales in October, particularly in the higher cost markets across the state, such as the San Francisco Bay Area and coastal regions of Southern California,” said C.A.R. President LeFrancis Arnold. “This evidence supports the need for reinstating the higher loan limits while the housing market is in transition to recovery.”
The October statewide median price of an existing, single-family detached home sold in California was $278,060, down 3.3 percent from $287,440 in September and down 8.9 percent from the $305,150 median price recorded for October 2010.
“While October’s sales were on track with expectations, the month-to-month drop in the median price was larger than usual for this time of year,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “Because of the lower Fannie, Freddie, and FHA conforming loan limits, some buyers purchased less expensive homes so that their mortgages would meet the criteria for the lower limit, while others were unable to qualify for nonconforming loans that typically have higher down payment requirements and higher mortgage rates. The resulting change in the mix of sales drove down October’s median price.”
Other key facts of C.A.R.’s resale housing report for October 2011 include:
*The Unsold Inventory Index for existing, single-family detached homes was 5.3 months in October, up from 5.1 months in September but down from a revised 6.2-month supply in October 2010. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.
*Thirty-year fixed-mortgage interest rates averaged 4.07 percent during October 2011, down from 4.23 percent in October 2010, according to Freddie Mac. Adjustable-mortgage interest rates averaged 2.92 percent in October 2011, compared with 3.36 percent in October 2010.
*The median number of days it took to sell a single-family home was 55.2 days in October 2011, compared with 51.5 days for the same period a year ago.
| | C.A.R. releases September sales and price report - 10/19/2011 6:33:00 PM | LOS ANGELES (Oct. 14) – Heightened economic uncertainty contributed to a decrease in California home sales in September, according to data from the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). However, September home sales posted higher on a year-to-year basis for the third consecutive month and remain at stable levels.
Closed escrow sales of existing, single-family detached homes in California fell to a seasonally adjusted 487,940 units in September, down 2.1 percent from a revised 498,320 in August, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. However, September home sales were up 4.1 percent from the revised 468,700 units sold during the like period a year ago. The statewide sales figure represents what would be the total number of homes sold during 2011 if sales maintained the September pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
“September’s sales decline was not a surprise, given the run of economic events that occurred during the time these sales were initiated, such as the debt debate, weakened stock market, and pending changes to the conforming loan limit,” said C.A.R. President Beth L. Peerce. “This heightened uncertainty, coupled with the lower conforming loan limit, which some large lenders began implementing in early July, had an adverse impact on September sales.”
The September statewide median price of an existing, single-family detached home sold in California was $287,440, down 3.2 percent from a revised $297,060 in August and down 8.3 percent from the $313,460 median price recorded for September 2010.
“While the median price declined in September, we’ve seen nominal month-to-month changes in the statewide median price since February, indicating some stability in home prices,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “Additionally, September home sales remained on track with expectations for this year, and sales for all of 2011 should be about even with last year, slightly above 490,000 units.”
Other key facts of C.A.R.’s resale housing report for September 2011 include:
-The Unsold Inventory Index for existing, single-family detached homes was 5.1 months in September, essentially unchanged from 5.0 months in August but down from a revised 5.9 months in September 2010. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.
-Thirty-year fixed-mortgage interest rates averaged 4.11 percent during September 2011, down from 4.35 percent in September 2010, according to Freddie Mac. Adjustable-mortgage interest rates averaged 2.84 percent in July 2011, compared with 3.46 percent in September 2010.
-The median number of days it took to sell a single-family home was 54.4 days in September 2011, compared with 50.3 days for the same period a year ago.
| | Shadow Inventory Continues to Decline––July Supply Falls to 1.6 Million Units–– - 9/29/2011 10:16:00 AM | CoreLogic (NYSE: CLGX), a leading provider of information, analytics and
business services, reported today that the current residential shadow inventory
as of July 2011 declined slightly to 1.6 million units, representing a supply of
5 months. This is down from 1.9 million units, a supply of 6 months, from a year
ago, and follows a decline from April 2011 when shadow inventory stood at 1.7
million units. The moderate decline in shadow inventory is being driven by a
pace of new delinquencies that is slower than the disposition pace of distressed
assets. Highlights from the report:
- Of the 1.6 million properties currently in the shadow inventory, 770,000
units are seriously delinquent, 430,000 are in some stage of foreclosure, and
390,000 are already in REO.
- As of July 2011 the shadow inventory is 22 percent lower than the peak in
January 2010 at 2 million units, 8.4-months’ supply.
| | C.A.R. releases its California Housing Market Forecast for 2012 - 9/21/2011 7:13:00 PM | SAN JOSE (Sept. 20) – California home sales and median price are predicted to
improve only slightly in 2012, as the continuation of the tepid economic
recovery, uncertainty about the future, and funding challenges for residential
mortgages are expected to keep the market moving sideways, with little
foreseeable momentum in either direction, according to the CALIFORNIA
ASSOCIATION OF REALTORS®’ (C.A.R.) “2012 California Housing Market Forecast”
released today.
The forecast for California home sales next year is for a slight 1 percent
increase to 496,200 units, following essentially flat sales of 491,100 homes
this year compared to the 491,500 homes sold in 2010.
“Despite the run of unforeseen global events in the first half of this year
that slowed the overall economy, 2011 home sales are projected to essentially
remain unchanged from last year,” said C.A.R. President Beth L. Peerce.
“Looking ahead, the fundamentals of the housing market – such as low mortgage
rates, high housing affordability, and favorable home prices – are expected to
continue, but at this point, a strong housing recovery will depend on consumer
confidence, job creation, and the availability and cost of home loans.
“Discretionary sellers will play a larger role in next year’s housing
market,” said Peerce. “Those who held off selling in 2011 may list their homes
in 2012, thereby improving the mix of homes for sale compared with the last few
years. Additionally, distressed sales will remain an important segment of the
overall market as lenders continue to work through the foreclosure process.”
The California median home price will increase 1.7 percent in 2012 to
$296,000 in 2012, according to the forecast. Following a double-digit increase
in the median price in 2010, the median home price will decrease a projected 4
percent in 2011 to $291,000.
“2012 will be another transition year for the California housing market, as
the continued uncertainty about the U.S. financial system, job growth, and the
stability of the overall economy remain in the forefront for all market
participants,” said C.A.R. Vice President and Chief Economist Leslie
Appleton-Young. “An improvement in job growth, consumer spending, and
corresponding gains in housing are essential to a broader recovery in the
economy, but would-be buyers will remain cautious as they weigh these myriad
uncertainties against the clear opportunities presented by today’s very
affordable housing market.
“The most likely scenario is for the modest recovery to continue, and this
should push sales up slightly next year by 1 percent and maintain levels that
are significantly higher than those recorded during the depths of the housing
downturn.
“The wild cards for 2012 are many, including federal, fiscal, monetary, and
housing policies; the contentious political climate during an election year; and
the strength of the U.S. economic recovery,” said Appleton-Young.
| | California home sales fell in July but were up from the previous year - 8/18/2011 11:46:00 AM | Closed escrow sales of existing, single-family detached homes in California dropped 4.1 percent to a seasonally adjusted 458,440 units in July, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. July home sales were up 4.5 percent from the 438,850 units sold in July 2010. The statewide sales figure represents what would be the total number of homes sold during 2011 if sales maintained the July pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
“Although July sales improved over last year, they were somewhat weaker than expected, given current prices and mortgage rates,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “Economic uncertainty and recent developments in financial markets have caused hesitation among buyers, the effects of which we may see in the coming months. We must see sustained job and income gains along with an increase in consumer confidence before we can expect to see consistent improvement in the housing market,” Appleton-Young added.
The statewide median price of an existing, single-family detached home sold in California dipped 0.3 percent in July to $294,230 from a revised $295,210 in June. July’s median price was down 7.6 percent from the $318,550 recorded in July 2010.
“Despite the uncertain outlook, interest rates are at near-record lows, and home prices are favorable,” said C.A.R. President Beth L. Peerce. “Well-qualified, motivated buyers who expect to own their home for more than a few years should carefully study their options now.”
Other aspects of C.A.R.’s resale housing report for July 2011 include:
The Unsold Inventory Index for existing, single-family detached homes was 5.5 months in July, up from 5.0 months in June, but essentially unchanged from July 2010’s 5.6-month supply. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.
Thirty-year fixed-mortgage interest rates averaged 4.55 percent during July 2011, virtually unchanged from 4.56 percent in July 2010, according to Freddie Mac. Adjustable-mortgage interest rates averaged 2.97 percent in July 2011, compared with 3.73 percent in July 2010.
The median number of days it took to sell a single-family home was 52.1 days in July 2011, compared with 42.4 days for the same period a year ago.
| | Manhattan Beach schools rank high on Forbes value list - 5/4/2011 6:21:00 PM | The city of Manhattan Beach might
be an expensive place to live but, according to Forbes magazine,
families who call it home get a lot of bang for their buck when it comes
to schools.
The magazine last week ranked the city sixth in the United States on its annual list of Best Schools for Your Real Estate Buck.
Forbes link: http://blogs.forbes.com/danielfisher/2011/04/26/tables-americas-best-school-districts-for-your-housing-buck/Interestingly, Manhattan Beach - where the median home price
hovers around $1.3 million - was the only high-cost town to make the top
10. (The magazine defined this category as cities where the median is
at least $800,000.)
Top honors went to Falmouth, Maine, a small town with a
population of 10,700 and a median home price of about $350,000. While
this hamlet made merely average marks on measures such as per-pupil
spending and teacher pay, its teacher retention and training levels were
off the charts, according to the magazine. Test scores have followed.
In compiling its list, the magazine analyzed standardized test scores
and real estate prices in more than 17,500 cities in 49 states.
Manhattan Beach, population 37,750, was also the most
expensive city to make the rankings. The magazine listed the city's
median household income at $130,443 - more than twice the corresponding figure for the state. --Daily Breeze
|
|
|
|
|