Positive News: U.S. homebuilders had their biggest weekly gain since 1995 as investors and analysts say the market for new homes may have hit bottom. (Bloomberg, 1/25)
The Fed cut interest rates by 3/4 point this past Tuesday, the largest adjustment in recent memory. They meet this coming Tuesday and Wednesday. Some suspect they will cut interest rates a further 1/4-1/2 points. Remember that these rate cuts affect short-term loans, such as credit cards and lines of credit, but don’t have a direct effect on home mortgage rates, which is usually correlated with the bond market. (CNNMoney, AP, 1/22, personal interviews during this week)
Economic Stimulus Package: Leaders of the House of Representatives have struck an agreement with Treasury Secretary Paulson on the structure of this package. Now, bills need to be created in the House and the Senate for the President to sign and become law. The stimulus deal may face some resistance in the Senate. Some Democratic senators are unhappy that their House colleagues gave up on the party's push to extend unemployment benefits in addition to offering consumer rebates and business tax breaks. No matter, the earliest we will see these checks will likely be May or June. And until the bills are passed and signed, we won’t know exactly how much money we’ll get back. (CNNMoney, 1/26)
State of the Union Address: The President on Monday will likely spend a bit of time talking about the state of the slowing economy and how to energize it - now and beyond. "Look for a pitch for tax-related provisions, such as opening the door for states to use tax-free bonds to help homeowners refinance out of unaffordable subprime [adjustable-rate mortgages]," said Jaret Seiberg, senior vice president at the Stanford Group, a Washington policy research firm. Seiberg added that he believes Bush may endorse a real estate industry plan to offer $5,000 tax credits to first-time home buyers. (CNNMoney, 1/26)
Increasing Conforming Loan Limits: As part of the Economic Stimulus Package, they agreed to increase conforming loan limits from $417,000 to as high as $729,750 for one year. If this passes, some homeowners with loans within this range might want to refinance to take advantage of interest rate savings of up to 1% on their mortgages. (CAR, 1/23)
IRS Provides Tax Information on Home Foreclosures: The Internal Revenue Service has recently provided information to taxpayers about the possible tax consequences resulting from a home foreclosure. The general rule is that when a lender forgives a portion of a loan, the amount of debt cancelled constitutes taxable income for the taxpayer. The IRS highlights the exceptions to this rule, so taxpayers can consider their options before their property is foreclosed by the lender. Please contact me at changhomes@gmail.com for a copy of this information.
Save on your property taxes: Because home prices have gone down quite a bit since its highs, the LA County Assessors office is sponsoring several meetings to help homeowners who would like to reduce their property taxes on their homes due to the falling values. The meeting is at the Lancaster Public Library at 10am this Wednesday, January 31.
Jobless Claims Drop: The number of U.S. workers applying for jobless benefits fell unexpectedly last week to the lowest level in four months. This may be taken as a sign that the downturn in the economy is stabilizing. (Reuters, 1/24)
Home Loan Applications still rising: Applications for home mortgages soared for a third consecutive week Jan. 18 on top of plunging interest rates, resulting in a 16.9 percent spike in the number of refinancings. Refinancings accounted for two-thirds of all applications. The rise followed a drop in the average 30-year fixed mortgage rate to 5.49 percent last week from 5.62 percent in the previous week and 6.18 percent in mid-December. The 10-year Treasury yield that roughly guides long-term mortgage rates declined by more than 0.2 percentage point since the MBA survey was conducted, suggesting 30-year mortgage rates are below levels measured on Friday. Rates on short-term loans also fell. The average rate on a one-year adjustable mortgage declined to 5.51 percent last week from 5.77 percent in the prior period. (Reuters, 1/23)
California Foreclosure Activity still rising too: The number of mortgage default notices filed against California homeowners jumped last quarter to its highest level in more than 15 years. (unknown source, CAR?, 1/22)
Existing-home sales dropped in December: The median home price dropped for the entire year, the first time that has occurred in four decades. The National Association of Realtors reported that sales of single-family homes and condominiums dropped by 2.2 percent in December to a seasonally adjusted annual rate of 4.89 million units. For the year, sales of single-family homes were down by 13 percent, the biggest drop since a 17.7 percent plunge in 1982. The median price for a single-family home dropped 1.8 percent to $217,000. (AP, 1/24)
Fast Facts:
* Calif. median home price - November 07: $488,640 (Source: C.A.R.)
* Calif. highest median home price by C.A.R. region November 07: Santa Barbara So. Coast $1,075,000 (Source: C.A.R.)
* Calif. lowest median home price by C.A.R. region November 07: High Desert $262,650 (Source: C.A.R.)
* Calif. First-time Buyer Affordability Index - Third Quarter 07: 24 percent (Source: C.A.R.)
Sources: Associated Press, CNNMoney, California Association of REALTORS, National Association of REALTORS, Reuters
Sunday, January 27, 2008
Sunday, January 20, 2008
Mortgage applications skyrocket with falling rates! - Week in Review: January 14-20
Good News: Mortgage application volume skyrocketed for the second consecutive week, rising 28.4 percent during the week ending Jan. 11, according to the Mortgage Bankers Association's weekly application survey. Application volume jumped 39 percent during the same week a year ago. Refinance volume rose 43.4 percent, while purchase volume jumped 11.4 percent. Refinance volume accounted for 62.7 percent of total application volume, compared with 57.7 percent the previous week. (via CNNmoney, 1/16)
Applications rose as interest rates continued to fall to the lowest rates since 2005 – the average interest rate for traditional, 30-year fixed-rate mortgages fell to 5.62 percent from 5.73 percent. The average interest rate for 15-year fixed-rate mortgages -- which are typically used to refinance loans -- fell to 5.07 percent from 5.21 percent. Rates for one-year adjustable-rate mortgages fell to 5.77 percent from 6.04 percent. These numbers are different from what I see from CAR and the Baltimore Sun (CNNmoney, 1/16, Baltimore Sun, 1/18))
Sales of existing homes in the U.S. probably fell in December, capping the biggest yearly slump in almost a generation, economists said before a report this week. (Bloomberg, 1/20)
Business Week in an article predicts a home equity crisis coming up because borrowers who tapped into the equity of their properties will have their properties decrease to less than they owe. (1/18)
I mentioned before in a post 2 weeks ago, I believe, stating that homebuilders are beginning to feel positive. This week, CNNmoney reports, Home builders' confidence showed a very slight improvement in January, helped by a narrow gain in their hopes for the market early this summer, according to the latest survey. MSNBC spins this same report saying that “Home builders’ confidence near record low.” (1/16)
Commerce Department says that this past month showed the biggest drop in new homebuilding in 27 years (AP, MSNBC, 1/17)
I'm through talking about a recession - I'm seeing more interest in home buying and predict that things will pick up the 2nd half of this year. If we are/will be in a recession, it started with the home market - so the economy is slagging about 8-12 months behind the home market. As interest returns in the home market this year, it will take a while for the rest of the economy to follow. So you will continue to hear about a recession, while I'm looking beyond it.
Tax rebates – you may have heard in the news that Washington is thinking about giving us money to restart the economy. Right now, the Democrats and Republicans in Congress are hashing out a compromise, which I’ve heard will be done by the end of the month. But don’t hold your breath, you might not see the check until June, once everything is settled. (KNX-AM, 1/17, CNNmoney, 1/19)
The Fed is expected to decrease interest rates by 1/2 to maybe even 3/4 points. (Washington Post, KNX-AM, 1/14)
WaMu accused of appraisal fraud - Lawsuit claims the lender told an appraiser to offer a rosier housing outlook so risky mortgages could get approved. (Money magazine, 1/17)
The median home price in a six-county region of Southern California plunged more than 13 percent in December versus a year ago - The average median price in Los Angeles, Orange, San Diego, Ventura, Riverside and San Bernardino counties hit $425,000 last month, the lowest level since February 2005, when the figure was $420,000. December's median price for the region represents a 2.4 percent dip from November and a 15.8 percent drop from the overall peak price of $505,000 posted last spring and summer. Home sales in the region dropped 45.3 percent to 13,240 from a year ago to the lowest sales total for any December in the 20 years that the firm has been keeping track. Sales were essentially unchanged from November. (DataQuick via CNNmoney, 1/15)
As if you didn’t know: Food prices have gone up a lot! (Seattle Times, 1/17, Washington Post, 1/17)
NAR still seeking loan limit increase on Fannie Mae and Freddie Mac. Currently it's at $417k, which is below the median price for California, to 625k, as part of the federal stimulus package. The FHA Reform Bill is still in committee. (NAR, 1/18)
As U.S. falters, Mexican housing booms - Lower delinquency and declining interest rates are making the market attractive to investors. (CNNMoney, 1/20)
Leaving on a foreign note: Home prices in Spain rose in the fourth quarter at the slowest pace since 1998 after higher borrowing costs damped demand. (Bloomberg, 1/18)
Fast Facts:
* Calif. median home price - November 07: $488,640(Source: C.A.R.)
* Calif. highest median home price by C.A.R. region November 07: Santa Barbara So. Coast $1,075,000 (Source: C.A.R.)
* Calif. lowest median home price by C.A.R. region November 07: High Desert $262,650 (Source: C.A.R.)
* Calif. First-time Buyer Affordability Index - Third Quarter 07: 24 percent (Source: C.A.R.)
Sources: Bloomberg.com, MSNBC, Associated Press, CNNmoney.com, California Association of REALTORS, National Association of REALTORS, Seattle Times, Washington Post, Money Magazine, KNX-AM, DataQuick, Baltimore Sun, Business Week.
Applications rose as interest rates continued to fall to the lowest rates since 2005 – the average interest rate for traditional, 30-year fixed-rate mortgages fell to 5.62 percent from 5.73 percent. The average interest rate for 15-year fixed-rate mortgages -- which are typically used to refinance loans -- fell to 5.07 percent from 5.21 percent. Rates for one-year adjustable-rate mortgages fell to 5.77 percent from 6.04 percent. These numbers are different from what I see from CAR and the Baltimore Sun (CNNmoney, 1/16, Baltimore Sun, 1/18))
Sales of existing homes in the U.S. probably fell in December, capping the biggest yearly slump in almost a generation, economists said before a report this week. (Bloomberg, 1/20)
Business Week in an article predicts a home equity crisis coming up because borrowers who tapped into the equity of their properties will have their properties decrease to less than they owe. (1/18)
I mentioned before in a post 2 weeks ago, I believe, stating that homebuilders are beginning to feel positive. This week, CNNmoney reports, Home builders' confidence showed a very slight improvement in January, helped by a narrow gain in their hopes for the market early this summer, according to the latest survey. MSNBC spins this same report saying that “Home builders’ confidence near record low.” (1/16)
Commerce Department says that this past month showed the biggest drop in new homebuilding in 27 years (AP, MSNBC, 1/17)
I'm through talking about a recession - I'm seeing more interest in home buying and predict that things will pick up the 2nd half of this year. If we are/will be in a recession, it started with the home market - so the economy is slagging about 8-12 months behind the home market. As interest returns in the home market this year, it will take a while for the rest of the economy to follow. So you will continue to hear about a recession, while I'm looking beyond it.
Tax rebates – you may have heard in the news that Washington is thinking about giving us money to restart the economy. Right now, the Democrats and Republicans in Congress are hashing out a compromise, which I’ve heard will be done by the end of the month. But don’t hold your breath, you might not see the check until June, once everything is settled. (KNX-AM, 1/17, CNNmoney, 1/19)
The Fed is expected to decrease interest rates by 1/2 to maybe even 3/4 points. (Washington Post, KNX-AM, 1/14)
WaMu accused of appraisal fraud - Lawsuit claims the lender told an appraiser to offer a rosier housing outlook so risky mortgages could get approved. (Money magazine, 1/17)
The median home price in a six-county region of Southern California plunged more than 13 percent in December versus a year ago - The average median price in Los Angeles, Orange, San Diego, Ventura, Riverside and San Bernardino counties hit $425,000 last month, the lowest level since February 2005, when the figure was $420,000. December's median price for the region represents a 2.4 percent dip from November and a 15.8 percent drop from the overall peak price of $505,000 posted last spring and summer. Home sales in the region dropped 45.3 percent to 13,240 from a year ago to the lowest sales total for any December in the 20 years that the firm has been keeping track. Sales were essentially unchanged from November. (DataQuick via CNNmoney, 1/15)
As if you didn’t know: Food prices have gone up a lot! (Seattle Times, 1/17, Washington Post, 1/17)
NAR still seeking loan limit increase on Fannie Mae and Freddie Mac. Currently it's at $417k, which is below the median price for California, to 625k, as part of the federal stimulus package. The FHA Reform Bill is still in committee. (NAR, 1/18)
As U.S. falters, Mexican housing booms - Lower delinquency and declining interest rates are making the market attractive to investors. (CNNMoney, 1/20)
Leaving on a foreign note: Home prices in Spain rose in the fourth quarter at the slowest pace since 1998 after higher borrowing costs damped demand. (Bloomberg, 1/18)
Fast Facts:
* Calif. median home price - November 07: $488,640(Source: C.A.R.)
* Calif. highest median home price by C.A.R. region November 07: Santa Barbara So. Coast $1,075,000 (Source: C.A.R.)
* Calif. lowest median home price by C.A.R. region November 07: High Desert $262,650 (Source: C.A.R.)
* Calif. First-time Buyer Affordability Index - Third Quarter 07: 24 percent (Source: C.A.R.)
Sources: Bloomberg.com, MSNBC, Associated Press, CNNmoney.com, California Association of REALTORS, National Association of REALTORS, Seattle Times, Washington Post, Money Magazine, KNX-AM, DataQuick, Baltimore Sun, Business Week.
Sunday, January 13, 2008
Short & Sweet: Get Ready to Buy! This Week’s Real Estate News, January 7-13
Positive News: Over the next few months, existing-home sales are expected to hold fairly steady as indicated by pending sales activity, and then rise later in the year and continue to improve in 2009, according to NAR’s Pending Home Sales Index (NAR, 1/11)
Pending Homes Sales Index - fell 2.6 percent to a reading of 87.6 from a strong upward revision of 89.9 in October, but remains above the August and September readings and indicates a broad stabilization. The index was 19.2 percent below the November 2006 level of 108.4. In the west, the index fell 2.1 percent to 86.6, which is 18.5 percent below November 2006 levels. (NAR, 1/11, CAR, 1/9)
Stable Existing-Homes Sales in Early 2008, then Gradual Rise - Existing-home sales for 2007 will probably total 5.66 million, the fifth highest on record, then edge up to 5.7 million this year and 5.91 million in 2009, compared with 6.48 million in 2006. Existing-home prices for 2007 are likely to be down 1.9 percent to a median of $217,600, hold even this year and then rise 3.1 percent in 2009 to $224,400. Notice that this forecast expects this to occur no matter who becomes President. (NAR, 1/11)
Mortgage Rates Below 6% - Freddie Mac reports a drop in the 30-year fixed mortgage rate from 6.07 percent to 5.87 percent during the week ended Jan. 10, in response to a recent government report revealing a boost in the unemployment rate to 5 percent in December from 4.7 percent in November. The 15-year fixed mortgage rate fell to 5.43 percent from 5.68 percent over the same period. Meanwhile, the five-year adjustable mortgage rate sank to 5.63 percent from 5.78 percent; and the one-year ARM dropped to 5.37 percent from 5.47 percent. (1/11)
Mortgage Rates Expected to Rise - The 30-year fixed-rate mortgage is expected to rise slowly to the 6.3 percent range by the end of this year, but an additional cut in the Fed funds rate would lower short-term interest rates. (NAR, 1/11)
Bank of America buys Countrywide – this is considered a good situation from the real estate markets. It stabilizes the uncertainty due to the subprime mess. BoA will be punished in the short term as these loans may default, but in the long term, they get the well-established Countrywide network. (KNX-AM, personal interview with NAR President, 1/11)
Cleveland sues Lenders – the City of Cleveland, Ohio, which has been hit hard during this housing slowdown, says 21 banks and mortgage companies signed off of deals they shouldn’t have made (CNNMoney, 1/13)
The “R” Word – As predicted in last week’s blog, there was continued talk about recession this week. I gave the definition that a recession is 2 consecutive quarters of negative growth, but are we currently in that 1st quarter? Merrill Lynch and Goldman Sachs say we are. Goldman further predicts that the recession will be mild, lasting only 2 quarters, the minimum to formally consider it a recession. Others still state that we will squeek by without being in a recession. (CNNMoney, 1/10, KNX-AM, unknown date)
Fed expected to drop rates again – Fed expected to drop rates by 1/2 a point, that’s the push anyway, based on reports I’m hearing, when they meet January 29-30. Their concerns with high energy prices and inflation may prompt them to cut only 1/4 point. Transcript from last month’s meeting where they cut rates 1/4 point show a disagreement between the Fed regional banks with 2 regions saying rates should stay stable, and the rest split between a 1/4 and 1/2 point cut. (CNNMoney, NAR, unknown dates)
World Home Spotlight: New Zealand - New Zealand's home-building approvals fell for a third month in November adding to signs that record- high interest rates are damping demand for property, particularly apartments. New Zealand's house prices rose at the slowest pace in nine months as record-high interest rates and moderating immigration curbed demand for property. (Bloomberg, 1/11)
Fast Facts:
* LA is the 5th most expensive city to rent at $1452 per month, behind NYC ($2922), San Francisco ($1904), Boston ($1658), and San Jose ($1612). (Forbes, 1/7)
* Calif. median home price - November 07: $488,640 (Source: C.A.R.)
* Calif. highest median home price by C.A.R. region November 07: Santa Barbara So. Coast $1,075,000 (Source: C.A.R.)
* Calif. lowest median home price by C.A.R. region November 07: High Desert $262,650 (Source: C.A.R.)
* Calif. First-time Buyer Affordability Index - Third Quarter 07: 24 percent (Source: C.A.R.)
I probably meet hundreds of people a week, but this week I had the privilege to talk with two leaders in the real estate industry: Richard (Dick) Gaylord, the current president of the National Association of REALTORS and a RE/MAX broker, and Gov Hutchinson, the lead attorney for the California Association of REALTORS. Mr. Gaylord discussed the current news of the day I saw him, about BoA buying Countrywide. Both reviewed current legal issues and contract changes that occurred with the new year. They were both very enlightening, and I look forward to meeting with them again!
Sources: National Association of REALTORS, California Association of REALTORS, Associated Press, CNN Money, Freddie Mac, KNX-AM, Richard Gaylord.
P.S. Just some figures I’m tracking from the NAR report...
Meanwhile, growth in the U.S. gross domestic product (GDP) is seen at 2.1 percent in 2007, below the 2.9 percent growth rate in 2006; GDP growth will probably be 2 percent this year.
After averaging 4.6 percent for both 2006 and 2007, the unemployment rate is estimated to rise to 5.3 percent in the second half of 2008. Inflation, as measured by the Consumer Price Index, is projected at 2.9 percent for 2007 and 3.1 percent this year; it was 3.2 percent in 2006.
Inflation-adjusted disposable personal income is forecast to grow 3.1 percent for 2007, the same as in 2006, and then grow 1.6 percent this year
Pending Homes Sales Index - fell 2.6 percent to a reading of 87.6 from a strong upward revision of 89.9 in October, but remains above the August and September readings and indicates a broad stabilization. The index was 19.2 percent below the November 2006 level of 108.4. In the west, the index fell 2.1 percent to 86.6, which is 18.5 percent below November 2006 levels. (NAR, 1/11, CAR, 1/9)
Stable Existing-Homes Sales in Early 2008, then Gradual Rise - Existing-home sales for 2007 will probably total 5.66 million, the fifth highest on record, then edge up to 5.7 million this year and 5.91 million in 2009, compared with 6.48 million in 2006. Existing-home prices for 2007 are likely to be down 1.9 percent to a median of $217,600, hold even this year and then rise 3.1 percent in 2009 to $224,400. Notice that this forecast expects this to occur no matter who becomes President. (NAR, 1/11)
Mortgage Rates Below 6% - Freddie Mac reports a drop in the 30-year fixed mortgage rate from 6.07 percent to 5.87 percent during the week ended Jan. 10, in response to a recent government report revealing a boost in the unemployment rate to 5 percent in December from 4.7 percent in November. The 15-year fixed mortgage rate fell to 5.43 percent from 5.68 percent over the same period. Meanwhile, the five-year adjustable mortgage rate sank to 5.63 percent from 5.78 percent; and the one-year ARM dropped to 5.37 percent from 5.47 percent. (1/11)
Mortgage Rates Expected to Rise - The 30-year fixed-rate mortgage is expected to rise slowly to the 6.3 percent range by the end of this year, but an additional cut in the Fed funds rate would lower short-term interest rates. (NAR, 1/11)
Bank of America buys Countrywide – this is considered a good situation from the real estate markets. It stabilizes the uncertainty due to the subprime mess. BoA will be punished in the short term as these loans may default, but in the long term, they get the well-established Countrywide network. (KNX-AM, personal interview with NAR President, 1/11)
Cleveland sues Lenders – the City of Cleveland, Ohio, which has been hit hard during this housing slowdown, says 21 banks and mortgage companies signed off of deals they shouldn’t have made (CNNMoney, 1/13)
The “R” Word – As predicted in last week’s blog, there was continued talk about recession this week. I gave the definition that a recession is 2 consecutive quarters of negative growth, but are we currently in that 1st quarter? Merrill Lynch and Goldman Sachs say we are. Goldman further predicts that the recession will be mild, lasting only 2 quarters, the minimum to formally consider it a recession. Others still state that we will squeek by without being in a recession. (CNNMoney, 1/10, KNX-AM, unknown date)
Fed expected to drop rates again – Fed expected to drop rates by 1/2 a point, that’s the push anyway, based on reports I’m hearing, when they meet January 29-30. Their concerns with high energy prices and inflation may prompt them to cut only 1/4 point. Transcript from last month’s meeting where they cut rates 1/4 point show a disagreement between the Fed regional banks with 2 regions saying rates should stay stable, and the rest split between a 1/4 and 1/2 point cut. (CNNMoney, NAR, unknown dates)
World Home Spotlight: New Zealand - New Zealand's home-building approvals fell for a third month in November adding to signs that record- high interest rates are damping demand for property, particularly apartments. New Zealand's house prices rose at the slowest pace in nine months as record-high interest rates and moderating immigration curbed demand for property. (Bloomberg, 1/11)
Fast Facts:
* LA is the 5th most expensive city to rent at $1452 per month, behind NYC ($2922), San Francisco ($1904), Boston ($1658), and San Jose ($1612). (Forbes, 1/7)
* Calif. median home price - November 07: $488,640 (Source: C.A.R.)
* Calif. highest median home price by C.A.R. region November 07: Santa Barbara So. Coast $1,075,000 (Source: C.A.R.)
* Calif. lowest median home price by C.A.R. region November 07: High Desert $262,650 (Source: C.A.R.)
* Calif. First-time Buyer Affordability Index - Third Quarter 07: 24 percent (Source: C.A.R.)
I probably meet hundreds of people a week, but this week I had the privilege to talk with two leaders in the real estate industry: Richard (Dick) Gaylord, the current president of the National Association of REALTORS and a RE/MAX broker, and Gov Hutchinson, the lead attorney for the California Association of REALTORS. Mr. Gaylord discussed the current news of the day I saw him, about BoA buying Countrywide. Both reviewed current legal issues and contract changes that occurred with the new year. They were both very enlightening, and I look forward to meeting with them again!
Sources: National Association of REALTORS, California Association of REALTORS, Associated Press, CNN Money, Freddie Mac, KNX-AM, Richard Gaylord.
P.S. Just some figures I’m tracking from the NAR report...
Meanwhile, growth in the U.S. gross domestic product (GDP) is seen at 2.1 percent in 2007, below the 2.9 percent growth rate in 2006; GDP growth will probably be 2 percent this year.
After averaging 4.6 percent for both 2006 and 2007, the unemployment rate is estimated to rise to 5.3 percent in the second half of 2008. Inflation, as measured by the Consumer Price Index, is projected at 2.9 percent for 2007 and 3.1 percent this year; it was 3.2 percent in 2006.
Inflation-adjusted disposable personal income is forecast to grow 3.1 percent for 2007, the same as in 2006, and then grow 1.6 percent this year
Sunday, January 6, 2008
Nearing Bottom, Positive Signs and a Short and Sweet Blog! This Week's Real Estate News, Dec 31, 2007- Jan 6, 2008
Positive News: Existing-home sales INCREASED 10.3 percent in November in the western U.S. (NAR, see more below)
More Positive News: Despite all you hear in the news, we are NOT in a Recession right now! No matter how it feels like, a Recession is defined by 2 consecutive quarters of negative growth, as measured by the country’s Gross Domestic Product (GDP). The last two available quarters the GDP grew by 3.8% in the 2nd quarter of 2007 and 4.9% in the 3rd quarter. Economists expect GDP for the quarter that just ended to be about 2%. I know this sounds technical, but it refutes many of the pundits you hear and see. (KNX-AM, 1/5/2008)
Economics News: Consumer confidence up slightly, job growth stalls, and unemployment rises. These numbers make it more likely that the Federal Reserve will once again cut interest rates when they meet later this month. (CNNMoney, 1/4, CAR 1/2)
Sales of new, single-family homes declined 9.0 percent in November 2007 according to new data from the U.S. Census Bureau and the Dept. of Housing and Urban Development. (CAR, 1/2)
But, Existing-home sales rose slightly in November, indicating a stabilization in housing in the wake of mortgage disruptions earlier this year, according to the National Association of REALTORS®. In the West, home sales increased 10.3 percent to a level of 960,000, but are 25 percent below a year ago. Median price: $325,800, which is 6.8 percent lower than November 2006. (NAR, 12/31)
California Builders state the worst is over: California Building Industry Association is predicting that the state's housing slump is near bottom and business will rise steadily. (SF Chronicle, 1/4)
Bush Advisor states that Housing Slump will end by mid-year (CNBC, 1/6)
Lastly, comparing foreign housing markets, as we did in prior weeks. As the Fed has recently decreased the benchmark interest rates, Australia’s central bank has raised its benchmark interest rate to an 11-year high. This has impacted their homebuilding market. In England, U.K. mortgage approvals fell to a three-year low in November, a sign demand from homebuyers is waning as banks provide less access to credit. Manhattan prices are “still crazy” (CNNMoney 1/6, Bloomberg, 1/4)
January’s Newsletter, which will be emailed Monday morning to subscribers, will feature 3 signs of predatory lending and learn the pros and cons of buying in today’s market. That along with the FAQ on how to decrease your property tax bill (legally!) this year and a summary of the housing statistics in the Tri-Valley area of Northern Los Angeles County in the Newsletter. If you wish to subscribe, please send me an email: changhomes@gmail.com. It is free of charge.
Next week's Blog will start the first in a series of Tax Tips! Have a housing-related tax question? Send it to changhomes@gmail.com to have it answered in the series by a tax professional. You might get a $25 discount on your tax return this year from H&R Block.
One of my New Years Resolutions is to keep this blog informative, yet short and sweet. How did I do to start the year off? Send your responses to changhomes@gmail.com.
Sources: National Association of REALTORS, California Association of REALTORS, CNNMoney.com, Bloomberg, CNBC, San Francisco Chronicle, KNX-AM
More Positive News: Despite all you hear in the news, we are NOT in a Recession right now! No matter how it feels like, a Recession is defined by 2 consecutive quarters of negative growth, as measured by the country’s Gross Domestic Product (GDP). The last two available quarters the GDP grew by 3.8% in the 2nd quarter of 2007 and 4.9% in the 3rd quarter. Economists expect GDP for the quarter that just ended to be about 2%. I know this sounds technical, but it refutes many of the pundits you hear and see. (KNX-AM, 1/5/2008)
Economics News: Consumer confidence up slightly, job growth stalls, and unemployment rises. These numbers make it more likely that the Federal Reserve will once again cut interest rates when they meet later this month. (CNNMoney, 1/4, CAR 1/2)
Sales of new, single-family homes declined 9.0 percent in November 2007 according to new data from the U.S. Census Bureau and the Dept. of Housing and Urban Development. (CAR, 1/2)
But, Existing-home sales rose slightly in November, indicating a stabilization in housing in the wake of mortgage disruptions earlier this year, according to the National Association of REALTORS®. In the West, home sales increased 10.3 percent to a level of 960,000, but are 25 percent below a year ago. Median price: $325,800, which is 6.8 percent lower than November 2006. (NAR, 12/31)
California Builders state the worst is over: California Building Industry Association is predicting that the state's housing slump is near bottom and business will rise steadily. (SF Chronicle, 1/4)
Bush Advisor states that Housing Slump will end by mid-year (CNBC, 1/6)
Lastly, comparing foreign housing markets, as we did in prior weeks. As the Fed has recently decreased the benchmark interest rates, Australia’s central bank has raised its benchmark interest rate to an 11-year high. This has impacted their homebuilding market. In England, U.K. mortgage approvals fell to a three-year low in November, a sign demand from homebuyers is waning as banks provide less access to credit. Manhattan prices are “still crazy” (CNNMoney 1/6, Bloomberg, 1/4)
January’s Newsletter, which will be emailed Monday morning to subscribers, will feature 3 signs of predatory lending and learn the pros and cons of buying in today’s market. That along with the FAQ on how to decrease your property tax bill (legally!) this year and a summary of the housing statistics in the Tri-Valley area of Northern Los Angeles County in the Newsletter. If you wish to subscribe, please send me an email: changhomes@gmail.com. It is free of charge.
Next week's Blog will start the first in a series of Tax Tips! Have a housing-related tax question? Send it to changhomes@gmail.com to have it answered in the series by a tax professional. You might get a $25 discount on your tax return this year from H&R Block.
One of my New Years Resolutions is to keep this blog informative, yet short and sweet. How did I do to start the year off? Send your responses to changhomes@gmail.com.
Sources: National Association of REALTORS, California Association of REALTORS, CNNMoney.com, Bloomberg, CNBC, San Francisco Chronicle, KNX-AM
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