Sunday, March 30, 2008
A Week Off...
This blog will return next week due to personal issues that require my attention. Rest assured that I am currently safe, but I need to work through the legal process to secure my safety. Please keep me in your thoughts and prayers. This blog will return next week. Thank you.
Sunday, March 23, 2008
SPECIAL REPORT-When You're Getting Your Stimulus Check!
If you filed your 2007 taxes and got a refund by direct deposit...and the last 2 digits of your SSN are...
If you filed your 2007 taxes and you didn't get a refund or got a refund by a mailed check...and the last 2 digits of your SSN are...
http://changhomesnews.blogspot.com/2008/02/special-economic-stimulus-bill-awaits.html
Source: Bob McCormick, KCAL 9 News, 3/23, 8pm newscast.
- 00-20, you will get the money by direct deposit around May 2
- 21-75, ... May 9
- 76-99, ... May 16
If you filed your 2007 taxes and you didn't get a refund or got a refund by a mailed check...and the last 2 digits of your SSN are...
- 00-09, you will get a mailed check sent out by the IRS around May 16
- 10-18, ... May 23
- 19-25, ... May 30
- ... goes on and on until...
- 88-99, ... July 11
http://changhomesnews.blogspot.com/2008/02/special-economic-stimulus-bill-awaits.html
Source: Bob McCormick, KCAL 9 News, 3/23, 8pm newscast.
Buyers Fair Galore: Week in Review, March 17-23
Thoughts on the Current Market:
Prospective borrowers worried about the foreclosure crisis should obtain pre-purchase homeownership counseling. A Harvard University analysis found that borrowers who received classroom and individual counseling were, respectively, 23 percent and 41 percent less likely to become 60 days delinquent than equivalent borrowers who did not undergo counseling.
Calling the market low is a difficult task, and it's most often spotted in the rear-view mirror, according to MSN. While prices in many markets may have not yet hit their lowest point, the bottom may be near. And in other areas, only the pace of sales has been affected; prices have held firm or increased. Waiting for the absolute bottom puts consumers at risk of missing the best prices and getting caught up in a market on the upswing. (CAR, 3/20)
AV Home Show – the REALTOR® Association that covers the AV will have a booth for homebuyers and sellers March 28-30 in the Eliopulos Pavillon/Booth #46. Bring unwanted electrical items to be recycled and receive free parking. AVFair.com. (GAVAR, 3/17)
Home Buyer Fair – Southern California Home Buyer’s Fair will occur April 12-13 at the Los Angeles Convention Center in downtown Los Angeles. The REALTOR® Association that covers the SCV and SFV will help buyers access one of 20 $4000 grants and understand issues around purchasing homes in the valley. Educational seminars too. Entrance is free. HomeBuyersFair.com. (SRAR, CAR, 3/23)
Homeowners have filed suit against KB Home and Countrywide Financial Corp. alleging the companies inflated home prices through fraudulent appraisals. (SF Chronicle, 3/21)
Vast numbers of the country’s small and midsize home builders are feeling the pain form the credit crunch and housing downturn. (Wall Street Journal, 3/21)
Los Lomas Development Rejected – this 5,553-home development at the Newhall Pass was rejected by the Los Angeles City Council. (LA Times, 3/20)
California Leads US in Defaults, Price Drop, Slowing Growth - California leads the nation in foreclosures, home-price drops, and slowing economic growth. (Bloomberg, 3/20)
State Breaks Up Alleged Sub-prime Fraud Ring - Five people have been arrested and more are being sought in connection with an alleged mortgage fraud ring suspected of victimizing thousands of Californian homeowners. (LA Times, 3/19)
Capital Requirements Eased for Freddie & Fannie - Federal regulators on Wednesday eased capital requirements for Fannie Mae and Freddie Mac allowing them to pump an expected $200 billion into the troubled U.S. mortgage market. (Reuters, 3/19)
Central Valley Builders rely on the Internet to auction homes in hopes of drawing more buyers. (Fresno Bee, 3/18)
Auction firms are busy, especially in the Inland Empire region, where the number of homes repossessed by lenders in February increased nearly 21-fold in Riverside County and 15-fold in San Bernardino County compared with a year ago. (Riverside Press-Enterprise, 3/17)
Mortgage Rates Harder to Figure Out – Mortgage rates did, in fact, fall this week after the Fed cut rates again and took other steps to ease credit. But if recent history is any guide, the decline in mortgage rates may not last long. On mortgages, banking industry leaders say rate sheets often change several times during the course of a day, making the current situation all the more urgent for borrowers. Mortgages are moved by a variety of factors, with the most important in recent months being the spread, or difference, between 10-year Treasury bond rates and securities issued by secondary mortgage agencies. The difference is a direct reflection of the market's appetite for risk, and the closer the spread gets the more likely mortgage rates are likely to fall. Since the central bank lowered its Fed funds rate by three-quarters of a point Tuesday, rates for 30-year mortgages dropped from 5.96 percent to 5.66 percent, according to Bankrate.com. That's down from 6.37 percent four weeks ago. (CNBC, 3/21)
Mortgage Applications Drop - number of people applying for a home loan fell nearly 3% last week. Refinance volume fell 4.6%, while purchase volume declined 1% during the week. Refinance applications accounted for 49.7% of total applications, the first time all year that purchase application volume was larger than refinance volume. (CNBC, AP, 3/19)
Interest Rates Below 6% - Rates continued their wild swings. Fixed-rate mortgage rates plummeted, while adjustable-rates continued to skyrocket. The average interest rate for traditional, 30-year fixed-rate mortgages fell to 5.98% from 6.37% the previous week. The average rate for 15-year fixed-rate mortgages, which are often used in refinance applications, plummeted to 5.24% from 5.72%. The average rate for one-year adjustable-rate mortgages rose to 6.95% from 6.72%, more than one percent higher than they were just two weeks ago. (CNBC, AP, 3/19)
Perspectives: S&P sees end to subprime mortgage writedowns (CNBC, per CAR, 3/20)
Standard & Poor's said subprime write-downs for large financial institutions are likely past the halfway mark, but they could still hit $285 billion.
S&P's statement gave a boost to financial stocks and helped Wall Street indexes pare losses.
The purging of bad loans in the subprime market through foreclosure or refinancing ultimately will strengthen everyone's ability to obtain mortgages.
Fewer foreclosures mean fewer vacant homes, which may make a neighborhood a more desirable place in which to live. That, in turn, could increase the demand for housing.
Perspectives: Commercial real estate market is running strong (Bakersfield Californian, per CAR, 3/20)
Bakersfield's housing market is facing tough times, but commercial real estate in the area remains relatively strong, due partly to demand from the agriculture and oil industries.
Demand for multifamily housing has surged as potential home buyers face tougher mortgage requirements, higher debt payments, and declining home values.
The office market is solid, but warehouse and distribution sectors may slow if the economy weakens further.
Banks have had trouble selling debt so financing is tight, but the federal government is stepping in aggressively with moves designed to protect large investment banks.
Perspectives: Bear Stearns Rescue Is `Finger in Dike,' Scholars Say (Bloomberg, per CAR, 3/20)
With Bear Stearns Cos.' rescue, the $200 billion subprime crisis joins a long history of government bailouts to preserve jobs, homes, and savings.
Bear Stearns failing would have reverberated well beyond the investment banking sector. Large investment bankers such as Bear Stearns provide much of the capital that eventually finds its way into the pool of money used to fund mortgage loans.
Most investment bankers are heavily leveraged. That means they fund investments by borrowing. If they invest well, they can pay off debt and still make a profit. But if no one will lend to them, investment bankers can neither pay debt nor make investments. That combination can cause an institution to fail. Bear Stearns was not the only heavily leveraged investment bank. Many other large Wall Street firms also are dependent on the ability to borrow to survive, so a loss of confidence resulting from the failure of a major player could easily have brought down several others.
The credit crunch, or consumers' difficulty obtaining mortgage loans, is one of the greatest hindrances to a real estate market rebound. In recent months, even prospective buyers with good credit have had trouble securing a loan. If financial markets stabilize, that could help boost demand for housing.
Fed Cuts Key Interest Rate in Effort to Further Boost Economy - The Federal Reserve on Tuesday lowered the federal funds rate 75 basis points to 2.25 percent citing continued concerns about the country's softening labor market, stalled consumer spending, and turmoil on the financial markets over the mortgage credit crisis. (CAR, 3/19)
New Home Sales Declines 62% - The overall pace of new home sales across California was down just over 62 percent in January compared to the same period a year ago, according to the CBIA/Hanley Wood Market Intelligence (HWMI) New Home Sales and Pricing Report. Sales of single-family homes dropped by 61 percent in January compared to 2007, while sales of town homes and duplexes were down 71 percent, and condominium sales fell 58 percent. (CAR, 3/19)
HUD Unveils Mortgage Reform Plan – As mentioned last week, the U. S. Dept. of Housing and Urban Development (HUD) last week proposed a plan for mortgage reform designed to help consumers better understand mortgage loan documents and make more informed decisions when it comes to the home purchase, in an attempt to help streamline the home-buying process and mitigate risk connected to the subprime mortgage crisis. HUD's proposal calls for revamping the 30-year old rules of the Real Estate Settlement Procedures Act (RESPA), and calls for changes in disclosure of the loan terms and closing costs consumers pay when they buy or refinance their home. HUD also is proposing that mortgage lenders and brokers provide consumers with a standard Good Faith Estimate. (CAR, 3/19)
Sources: CNBC, Associated Press, California Association of REALTORS, Riverside Press-Enterprise, Fresno Bee, Reuters, Bloomberg, Los Angeles Times, Wall Street Journal, San Francisco Chronicle, Southland Regional Association of REALTORS, Greater Antelope Valley Association of REALTORS.
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Prospective borrowers worried about the foreclosure crisis should obtain pre-purchase homeownership counseling. A Harvard University analysis found that borrowers who received classroom and individual counseling were, respectively, 23 percent and 41 percent less likely to become 60 days delinquent than equivalent borrowers who did not undergo counseling.
Calling the market low is a difficult task, and it's most often spotted in the rear-view mirror, according to MSN. While prices in many markets may have not yet hit their lowest point, the bottom may be near. And in other areas, only the pace of sales has been affected; prices have held firm or increased. Waiting for the absolute bottom puts consumers at risk of missing the best prices and getting caught up in a market on the upswing. (CAR, 3/20)
AV Home Show – the REALTOR® Association that covers the AV will have a booth for homebuyers and sellers March 28-30 in the Eliopulos Pavillon/Booth #46. Bring unwanted electrical items to be recycled and receive free parking. AVFair.com. (GAVAR, 3/17)
Home Buyer Fair – Southern California Home Buyer’s Fair will occur April 12-13 at the Los Angeles Convention Center in downtown Los Angeles. The REALTOR® Association that covers the SCV and SFV will help buyers access one of 20 $4000 grants and understand issues around purchasing homes in the valley. Educational seminars too. Entrance is free. HomeBuyersFair.com. (SRAR, CAR, 3/23)
Homeowners have filed suit against KB Home and Countrywide Financial Corp. alleging the companies inflated home prices through fraudulent appraisals. (SF Chronicle, 3/21)
Vast numbers of the country’s small and midsize home builders are feeling the pain form the credit crunch and housing downturn. (Wall Street Journal, 3/21)
Los Lomas Development Rejected – this 5,553-home development at the Newhall Pass was rejected by the Los Angeles City Council. (LA Times, 3/20)
California Leads US in Defaults, Price Drop, Slowing Growth - California leads the nation in foreclosures, home-price drops, and slowing economic growth. (Bloomberg, 3/20)
State Breaks Up Alleged Sub-prime Fraud Ring - Five people have been arrested and more are being sought in connection with an alleged mortgage fraud ring suspected of victimizing thousands of Californian homeowners. (LA Times, 3/19)
Capital Requirements Eased for Freddie & Fannie - Federal regulators on Wednesday eased capital requirements for Fannie Mae and Freddie Mac allowing them to pump an expected $200 billion into the troubled U.S. mortgage market. (Reuters, 3/19)
Central Valley Builders rely on the Internet to auction homes in hopes of drawing more buyers. (Fresno Bee, 3/18)
Auction firms are busy, especially in the Inland Empire region, where the number of homes repossessed by lenders in February increased nearly 21-fold in Riverside County and 15-fold in San Bernardino County compared with a year ago. (Riverside Press-Enterprise, 3/17)
Mortgage Rates Harder to Figure Out – Mortgage rates did, in fact, fall this week after the Fed cut rates again and took other steps to ease credit. But if recent history is any guide, the decline in mortgage rates may not last long. On mortgages, banking industry leaders say rate sheets often change several times during the course of a day, making the current situation all the more urgent for borrowers. Mortgages are moved by a variety of factors, with the most important in recent months being the spread, or difference, between 10-year Treasury bond rates and securities issued by secondary mortgage agencies. The difference is a direct reflection of the market's appetite for risk, and the closer the spread gets the more likely mortgage rates are likely to fall. Since the central bank lowered its Fed funds rate by three-quarters of a point Tuesday, rates for 30-year mortgages dropped from 5.96 percent to 5.66 percent, according to Bankrate.com. That's down from 6.37 percent four weeks ago. (CNBC, 3/21)
Mortgage Applications Drop - number of people applying for a home loan fell nearly 3% last week. Refinance volume fell 4.6%, while purchase volume declined 1% during the week. Refinance applications accounted for 49.7% of total applications, the first time all year that purchase application volume was larger than refinance volume. (CNBC, AP, 3/19)
Interest Rates Below 6% - Rates continued their wild swings. Fixed-rate mortgage rates plummeted, while adjustable-rates continued to skyrocket. The average interest rate for traditional, 30-year fixed-rate mortgages fell to 5.98% from 6.37% the previous week. The average rate for 15-year fixed-rate mortgages, which are often used in refinance applications, plummeted to 5.24% from 5.72%. The average rate for one-year adjustable-rate mortgages rose to 6.95% from 6.72%, more than one percent higher than they were just two weeks ago. (CNBC, AP, 3/19)
Perspectives: S&P sees end to subprime mortgage writedowns (CNBC, per CAR, 3/20)
Standard & Poor's said subprime write-downs for large financial institutions are likely past the halfway mark, but they could still hit $285 billion.
S&P's statement gave a boost to financial stocks and helped Wall Street indexes pare losses.
The purging of bad loans in the subprime market through foreclosure or refinancing ultimately will strengthen everyone's ability to obtain mortgages.
Fewer foreclosures mean fewer vacant homes, which may make a neighborhood a more desirable place in which to live. That, in turn, could increase the demand for housing.
Perspectives: Commercial real estate market is running strong (Bakersfield Californian, per CAR, 3/20)
Bakersfield's housing market is facing tough times, but commercial real estate in the area remains relatively strong, due partly to demand from the agriculture and oil industries.
Demand for multifamily housing has surged as potential home buyers face tougher mortgage requirements, higher debt payments, and declining home values.
The office market is solid, but warehouse and distribution sectors may slow if the economy weakens further.
Banks have had trouble selling debt so financing is tight, but the federal government is stepping in aggressively with moves designed to protect large investment banks.
Perspectives: Bear Stearns Rescue Is `Finger in Dike,' Scholars Say (Bloomberg, per CAR, 3/20)
With Bear Stearns Cos.' rescue, the $200 billion subprime crisis joins a long history of government bailouts to preserve jobs, homes, and savings.
Bear Stearns failing would have reverberated well beyond the investment banking sector. Large investment bankers such as Bear Stearns provide much of the capital that eventually finds its way into the pool of money used to fund mortgage loans.
Most investment bankers are heavily leveraged. That means they fund investments by borrowing. If they invest well, they can pay off debt and still make a profit. But if no one will lend to them, investment bankers can neither pay debt nor make investments. That combination can cause an institution to fail. Bear Stearns was not the only heavily leveraged investment bank. Many other large Wall Street firms also are dependent on the ability to borrow to survive, so a loss of confidence resulting from the failure of a major player could easily have brought down several others.
The credit crunch, or consumers' difficulty obtaining mortgage loans, is one of the greatest hindrances to a real estate market rebound. In recent months, even prospective buyers with good credit have had trouble securing a loan. If financial markets stabilize, that could help boost demand for housing.
Fed Cuts Key Interest Rate in Effort to Further Boost Economy - The Federal Reserve on Tuesday lowered the federal funds rate 75 basis points to 2.25 percent citing continued concerns about the country's softening labor market, stalled consumer spending, and turmoil on the financial markets over the mortgage credit crisis. (CAR, 3/19)
New Home Sales Declines 62% - The overall pace of new home sales across California was down just over 62 percent in January compared to the same period a year ago, according to the CBIA/Hanley Wood Market Intelligence (HWMI) New Home Sales and Pricing Report. Sales of single-family homes dropped by 61 percent in January compared to 2007, while sales of town homes and duplexes were down 71 percent, and condominium sales fell 58 percent. (CAR, 3/19)
HUD Unveils Mortgage Reform Plan – As mentioned last week, the U. S. Dept. of Housing and Urban Development (HUD) last week proposed a plan for mortgage reform designed to help consumers better understand mortgage loan documents and make more informed decisions when it comes to the home purchase, in an attempt to help streamline the home-buying process and mitigate risk connected to the subprime mortgage crisis. HUD's proposal calls for revamping the 30-year old rules of the Real Estate Settlement Procedures Act (RESPA), and calls for changes in disclosure of the loan terms and closing costs consumers pay when they buy or refinance their home. HUD also is proposing that mortgage lenders and brokers provide consumers with a standard Good Faith Estimate. (CAR, 3/19)
Sources: CNBC, Associated Press, California Association of REALTORS, Riverside Press-Enterprise, Fresno Bee, Reuters, Bloomberg, Los Angeles Times, Wall Street Journal, San Francisco Chronicle, Southland Regional Association of REALTORS, Greater Antelope Valley Association of REALTORS.
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Sunday, March 16, 2008
Fed Drops Rates Sunday Night! - Week in Review: March 10-16
This blog is a little late...that’s because I had word of late-breaking news!
JP Morgan Chase to buy Bear Stearns for $2/share. (CNNMoney, 3/16)
The US Federal Reserve cut to its lending rate Sunday night to financial institutions to 3.25% from 3.50% and created another lending facility for big investment banks to secure short-term loans. (CNBC, 3/16)
Feds propose home-loan disclosure reform - President Bush on Friday is expected to announce a plan aimed at making the mortgage application process easier for prospective buyers and lowing closing costs. Require new disclosures by summer in the buying and selling of homes. (AP, 3/14)
Foreclosures up 60% in February - The number of filings jumps year over year but decreases modestly over last month. (CNNMoney, 3/12)
Mortgage Application Fees Rise on appraisal reform - A new agreement between the NY Attorney General and Fannie and Freddie should promote independence and accuracy of appraisals. But it's going to cost buyers. (CNNMoney, 3/12)
US to simplify mortgage process - Buyers would get easier-to-understand mortgage terms and save about $700 in closing costs under a new proposal. (CNNMoney, 3/14)
Mortgage Applications Fall - Volume dropped 1.9% in the week ending March 7. Refinance volume dropped 4.7% while purchase volume increased 1.6%. Refinance applications accounted for 50.6% of total applications. Refinance volume has steadily declined since January, when it accounted for 73% of total applications. (CNNMoney, 3/13)
Mortgage Rates Rise – Mortgage rates rose across the board this week as lower home prices and mortgage rates contributed to a more affordable market for homebuyers. The government-sponsored loan buyer said 30-year fixed-rate loans averaged 6.13% for the week ending Thursday, up from 6.03% last week. Freddie Mac also said 15-year fixed-rate loans averaged 5.60%. Rates on five-year adjustable-rate mortgages (ARMs) averaged 5.58%, up from 5.34% last week. One-year Treasury-indexed ARMs averaged 5.14%, up from 4.94% last week. (CNNMoney, 3/13)
January Pending Home Sales Index Unchanged in December – contrary to consensus expectation of 1% slide. (CNNMoney, 3/13)
Calirfornia February Sales up 7.1% - A total of 20,513 new and resale houses and condos were sold statewide last month. That makes it the slowest February in DataQuick's records, which go back to 1988. Sales were up 7.1 percent from 19,145 in January and down 34.3 percent from 31,228 for February last year. (DQNews, 3/14)
Commercial real estate market fundamentals are fairly stable, although investment is waning following a record year in 2007. (NAR, 3/12)
Fed is poised to cut interest rates further, by possibly as much as 75-basis points when they meet later this month, says Economist Danielle Hale. (NAR 3/14)
Sources: National Association of REALTORS, DQNews, CNNMoney, CNBC, AP.
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JP Morgan Chase to buy Bear Stearns for $2/share. (CNNMoney, 3/16)
The US Federal Reserve cut to its lending rate Sunday night to financial institutions to 3.25% from 3.50% and created another lending facility for big investment banks to secure short-term loans. (CNBC, 3/16)
Feds propose home-loan disclosure reform - President Bush on Friday is expected to announce a plan aimed at making the mortgage application process easier for prospective buyers and lowing closing costs. Require new disclosures by summer in the buying and selling of homes. (AP, 3/14)
Foreclosures up 60% in February - The number of filings jumps year over year but decreases modestly over last month. (CNNMoney, 3/12)
Mortgage Application Fees Rise on appraisal reform - A new agreement between the NY Attorney General and Fannie and Freddie should promote independence and accuracy of appraisals. But it's going to cost buyers. (CNNMoney, 3/12)
US to simplify mortgage process - Buyers would get easier-to-understand mortgage terms and save about $700 in closing costs under a new proposal. (CNNMoney, 3/14)
Mortgage Applications Fall - Volume dropped 1.9% in the week ending March 7. Refinance volume dropped 4.7% while purchase volume increased 1.6%. Refinance applications accounted for 50.6% of total applications. Refinance volume has steadily declined since January, when it accounted for 73% of total applications. (CNNMoney, 3/13)
Mortgage Rates Rise – Mortgage rates rose across the board this week as lower home prices and mortgage rates contributed to a more affordable market for homebuyers. The government-sponsored loan buyer said 30-year fixed-rate loans averaged 6.13% for the week ending Thursday, up from 6.03% last week. Freddie Mac also said 15-year fixed-rate loans averaged 5.60%. Rates on five-year adjustable-rate mortgages (ARMs) averaged 5.58%, up from 5.34% last week. One-year Treasury-indexed ARMs averaged 5.14%, up from 4.94% last week. (CNNMoney, 3/13)
January Pending Home Sales Index Unchanged in December – contrary to consensus expectation of 1% slide. (CNNMoney, 3/13)
Calirfornia February Sales up 7.1% - A total of 20,513 new and resale houses and condos were sold statewide last month. That makes it the slowest February in DataQuick's records, which go back to 1988. Sales were up 7.1 percent from 19,145 in January and down 34.3 percent from 31,228 for February last year. (DQNews, 3/14)
Commercial real estate market fundamentals are fairly stable, although investment is waning following a record year in 2007. (NAR, 3/12)
Fed is poised to cut interest rates further, by possibly as much as 75-basis points when they meet later this month, says Economist Danielle Hale. (NAR 3/14)
Sources: National Association of REALTORS, DQNews, CNNMoney, CNBC, AP.
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Monday, March 10, 2008
New Loan Limits Official & Best Time To Buy - Week In Review: March 2-9, 2008
Number One Office Again! - RE/MAX of Valencia has once again earned the award for the NUMBER ONE OFFICE, 2007 - HIGHEST TOTAL TRANSACTIONS (LARGE MARKET) FOR RE/MAX, IN THE STATE OF CALIFORNIA. #1 OFFICE IN THE WHOLE STATE, WAY TO GO !!! We will be sure everyone gets a color copy of the congratulatory letter we received from RE/MAX of California Regional Vice President Adam Contos. (Broker/Owners of RE/MAX of Valencia, 3/6)
The federal government officially raised limits on conforming loans temporarily from $417,000 to as high as $729,750 in fourteen counties in California for loans originated between July 1, 2007 and Dec. 31, 2008. These are loans that may be sold to Fannie Mae or Freddie Mac. (CAR, 3/7)
Also, the government raised FHA conforming loan limits to a maximum limit of $729,750 for 14 California counties, up from $362,790, for loans originated between now and Dec. 31, 2008. (CAR, 3/7)
Best time to buy in four years - Home values have declined across the country, giving homebuyers the best buys they've had since 2004. (CNNMoney 3/4)
Mortgage Rates Drop This Week - Freddie Mac says the 30-year fixed mortgage rate fell to 6.03 percent during the week ended March 6, from 6.24 percent the prior week. Interest on 15-year, fixed-rate mortgages also declined, falling to 5.47 percent from 5.72 percent over the same period. The five-year adjustable mortgage rate dipped to 5.34 percent from 5.43 percent, while the one-year ARM dropped to 4.94 percent from 5.11 percent. (San Diego Union-Tribune, 3/7; CNNMoney, 3/6)
Fed: Rates May Remain Low for Awhile - The Federal Reserve may need to keep a lid on interest rates for a significant length of time if the financial markets continue to be under duress, New York Fed President Timothy Geithner told the Council on Foreign Relations. (Reuters, 3/6)
Mortgage applications up slightly – Refinance and purchase volume increased in latest week as fixed-rate mortgage rates tumbled. Mortgage application volume increased 3% for the week ending Feb. 29, according to a weekly application survey by the Mortgage Bankers Association. Refinance volume increased 4.5% during the week, while purchase volume grew 1.4%. Refinance applications accounted for 52.4% of all mortgage applications during the week ending Feb. 29. (MBA via CNNMoney, 3/6)
FBI begins investigation of Countrywide – Calabasas-based mortgage lender being investigated for possible securities fraud. (KNX-AM, CBS Radio, 3/9)
Home Equity Falls to Record Low – The percentage of equity Americans with mortgages have in their homes fell below 50 percent in the second quarter of 2007 and declined further through the fourth quarter to 47.9 percent, the Federal Reserve reported yesterday. This is the first time that home owners’ debt exceeds their equity since the Federal Reserve first began keeping records in 1945. Economists expect this figure to drop even further as home prices continue to decline. (AP, NY Times, 3/7)
Moody's Economy.com estimates that 8.8 million U.S. home owners, or about 10.3 percent of homes, will have zero or negative equity by the end of the month. Even more disturbing, about 13.8 million households, or 15.9 percent, will be "upside down" if prices fall 20 percent from their peak. (3/8)
The Mortgage Bankers Association also reported Thursday that loans past due or in foreclosure hit 7.9 percent of the total in the fourth quarter of 2007, up from 6.1 percent in December 2006. While defaults were scattered across the country, 21 percent came from California and Florida. Nevada, Arizona, Michigan, and Ohio also had high default rates. (3/8)
Jobs plunge by 63,000, worst since 2003; Fed steps in - Employers slashed jobs for the second month in February prompting the Fed to raise auctions of short-term loans to aid lenders. (USA Today, 3/7)
Foreclosures hit all-time high - Over 900,000 borrowers are losing their homes, up 71% from a year ago, and a record number of home owners are behind on payments. (CNNMoney, 3/6)
Home sales stay weak in Realtors' report - Homes under contract flat in January but remain near record low, showing continued weakness in market. (CNNMoney, 3/6)
Flat Existing-Home Sales Likely Before Gradual Recovery - The volume of existing-home sales is expected to hold steady through late spring, with a gradual recovery in the second half of the year. (NAR, 3/6)
This Week:
* Monday – Wholesale Inventories: expected to rise
* Tuesday – International Trade Deficit: expected to widen slightly to $59.5 billion after shrinking to $58.8 billion in December
* Thursday – February Retail Sales Report: expect slight rise in sales (0.2%)
* Thursday – January Business Inventories
* Friday – February Consumer Price Index: expect rise of 0.2% in the core index. (translating to slight inflation)
* Friday – preliminary March consumer sentiment
(AP, 3/9)
Last week - Wall Street balked at the February jobs loss, banks' requests to hedge funds and other borrowers for loan paybacks, and a plan for the troubled bond insurer Ambac Financial Group Inc. that many considered insufficient. (AP, 3/9)
Ending in Foreign News:
Australian Foreclosures Set to Rise as Interest Rates Reach 12-Year High Foreclosures in New South Wales, Australia's biggest state, are set to rise to a record this year after the central bank increased rates twice in the past two months to a 12-year high. (Bloomberg, 3/10)
New Zealand House Prices Rose at Slowest Pace in Three Years in February New Zealand's house prices rose at the slowest pace in three years in February as higher interest rates curbed demand for property. (Bloomberg, 3/10)
Sources: Bloomberg, San Diego Union-Tribune, California Association of REALTORS, National Association of REALTORS, CNNMoney, Reuters, Associated Press, Moody’s Economy.com, New York Times, Mortgage Bankers Association.
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The federal government officially raised limits on conforming loans temporarily from $417,000 to as high as $729,750 in fourteen counties in California for loans originated between July 1, 2007 and Dec. 31, 2008. These are loans that may be sold to Fannie Mae or Freddie Mac. (CAR, 3/7)
Also, the government raised FHA conforming loan limits to a maximum limit of $729,750 for 14 California counties, up from $362,790, for loans originated between now and Dec. 31, 2008. (CAR, 3/7)
Best time to buy in four years - Home values have declined across the country, giving homebuyers the best buys they've had since 2004. (CNNMoney 3/4)
Mortgage Rates Drop This Week - Freddie Mac says the 30-year fixed mortgage rate fell to 6.03 percent during the week ended March 6, from 6.24 percent the prior week. Interest on 15-year, fixed-rate mortgages also declined, falling to 5.47 percent from 5.72 percent over the same period. The five-year adjustable mortgage rate dipped to 5.34 percent from 5.43 percent, while the one-year ARM dropped to 4.94 percent from 5.11 percent. (San Diego Union-Tribune, 3/7; CNNMoney, 3/6)
Fed: Rates May Remain Low for Awhile - The Federal Reserve may need to keep a lid on interest rates for a significant length of time if the financial markets continue to be under duress, New York Fed President Timothy Geithner told the Council on Foreign Relations. (Reuters, 3/6)
Mortgage applications up slightly – Refinance and purchase volume increased in latest week as fixed-rate mortgage rates tumbled. Mortgage application volume increased 3% for the week ending Feb. 29, according to a weekly application survey by the Mortgage Bankers Association. Refinance volume increased 4.5% during the week, while purchase volume grew 1.4%. Refinance applications accounted for 52.4% of all mortgage applications during the week ending Feb. 29. (MBA via CNNMoney, 3/6)
FBI begins investigation of Countrywide – Calabasas-based mortgage lender being investigated for possible securities fraud. (KNX-AM, CBS Radio, 3/9)
Home Equity Falls to Record Low – The percentage of equity Americans with mortgages have in their homes fell below 50 percent in the second quarter of 2007 and declined further through the fourth quarter to 47.9 percent, the Federal Reserve reported yesterday. This is the first time that home owners’ debt exceeds their equity since the Federal Reserve first began keeping records in 1945. Economists expect this figure to drop even further as home prices continue to decline. (AP, NY Times, 3/7)
Moody's Economy.com estimates that 8.8 million U.S. home owners, or about 10.3 percent of homes, will have zero or negative equity by the end of the month. Even more disturbing, about 13.8 million households, or 15.9 percent, will be "upside down" if prices fall 20 percent from their peak. (3/8)
The Mortgage Bankers Association also reported Thursday that loans past due or in foreclosure hit 7.9 percent of the total in the fourth quarter of 2007, up from 6.1 percent in December 2006. While defaults were scattered across the country, 21 percent came from California and Florida. Nevada, Arizona, Michigan, and Ohio also had high default rates. (3/8)
Jobs plunge by 63,000, worst since 2003; Fed steps in - Employers slashed jobs for the second month in February prompting the Fed to raise auctions of short-term loans to aid lenders. (USA Today, 3/7)
Foreclosures hit all-time high - Over 900,000 borrowers are losing their homes, up 71% from a year ago, and a record number of home owners are behind on payments. (CNNMoney, 3/6)
Home sales stay weak in Realtors' report - Homes under contract flat in January but remain near record low, showing continued weakness in market. (CNNMoney, 3/6)
Flat Existing-Home Sales Likely Before Gradual Recovery - The volume of existing-home sales is expected to hold steady through late spring, with a gradual recovery in the second half of the year. (NAR, 3/6)
This Week:
* Monday – Wholesale Inventories: expected to rise
* Tuesday – International Trade Deficit: expected to widen slightly to $59.5 billion after shrinking to $58.8 billion in December
* Thursday – February Retail Sales Report: expect slight rise in sales (0.2%)
* Thursday – January Business Inventories
* Friday – February Consumer Price Index: expect rise of 0.2% in the core index. (translating to slight inflation)
* Friday – preliminary March consumer sentiment
(AP, 3/9)
Last week - Wall Street balked at the February jobs loss, banks' requests to hedge funds and other borrowers for loan paybacks, and a plan for the troubled bond insurer Ambac Financial Group Inc. that many considered insufficient. (AP, 3/9)
Ending in Foreign News:
Australian Foreclosures Set to Rise as Interest Rates Reach 12-Year High Foreclosures in New South Wales, Australia's biggest state, are set to rise to a record this year after the central bank increased rates twice in the past two months to a 12-year high. (Bloomberg, 3/10)
New Zealand House Prices Rose at Slowest Pace in Three Years in February New Zealand's house prices rose at the slowest pace in three years in February as higher interest rates curbed demand for property. (Bloomberg, 3/10)
Sources: Bloomberg, San Diego Union-Tribune, California Association of REALTORS, National Association of REALTORS, CNNMoney, Reuters, Associated Press, Moody’s Economy.com, New York Times, Mortgage Bankers Association.
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Tri-Valley Housing Markets at a Glance
As promised in my monthly newsletter, here are the latest trends in the 3 Valleys.
San Fernando Valley Sales Down 35%, While Prices Post a Modest Increase
Home sales in the San Fernando Valley during 2007 declined a record 34.9 percent from the prior year, while the annual median price posted its smallest increase in many years, the Southland Regional Association of Realtors reported.
A total of 6,271 homes closed escrow compared to the 9,632 sales of 2006. The peak of the recent boom came in 2003 when Realtors completed 13,878 sales, but the record high was set in 1988 with 15,263 single-family transactions. Annual home sales in the San Fernando Valley have been slowing since 2004.
Realtors managed and negotiated home and condominium sales during 2007 that generated $1.76 billion for buyers, sellers and the local economy. That figure does not include the added millions of dollars home sales yield for related services, such as contractors, landscaping specialists, home improvement companies and manufacturers of furniture and appliances.
Condominium resale activity throughout the San Fernando Valley during 2007 fell for the fifth consecutive year, down 33.2 percent drop to 2,443 condo sales. However, annual condo sales have been lower - below 2,000 transactions from 1993 to 1995, including the record low of 1,607 set in 1993. The record high of 5,041 transactions was set in 2002.
The annual single-family median price came in at $61 1,933 -the highest on record. The increase of 1.0 percent was the lowest gain on record with each year posting slightly smaller gains since the 26.3 percent increase of 2003. This year's annual median price beat the prior record of $605,917 set in 2006.
The annual condominium median price of $385,967 was down 2.3 percent from 2006 when the record high $394,917 annual condo median was posted. It was the first drop in the annual median since 1996. From 2000 to 2005 the annual condo median posted double-digit increases with the largest one of 28.7 percent coming in 2003.
There were 5,671 active listings throughout the San Fernando Valley at the end of December, an increase of 8.8 percent over a year ago. At the current pace of sales, the inventory represents a 10.9-month supply - a buyers' market, but a clear improvement from recent months when it went as high as a 16-month supply. For perspective, the record high was a 23-month supply set in February 1993. A balanced market is in the 5- to 6-month range.
December single-family sales plunged 51.6 percent compared to the prior year while condo sales were off 55.6 percent. Declines in the median price of homes and condos were 12.4 percent for homes and 16.5 percent for condos. Prices are still sticky, not dropping nearly as fast as sales would indicate they should.
Santa Clarita Valley Home Sales At An Impasse
Home sales in the Santa Clarita Valley during January posted a record low of 99 transactions, down 42.4 percent from a year ago when 172 single-family homes changed owners, the Southland Regional Association of Realtors reported.
The prior record low of 105 home sales was recorded in September of 2007 while, for comparison, the record high of 405 sales was set in June 2005.
Likewise, a total of 31 condominiums closed escrow last month, down 57.7 percent from January 2007 and the lowest tally on record. The prior record low of 38 sales came in November 2007 while the record high of 204 sales was set in April 2003.
The median price of single-family homes sold during January fell below the $500,000 for the first time in three and a half years. The median price of $460,000 was down 21.8 percent from a year ago and well below the record high of $643,000 set in April of 2006.
Similarly, the condominium median price fell below $300,000 for the first time in three and a half years with the $284,900 January median down 20.9 percent from the prior year. The record high of $397,000 came two years ago in January 2006.
Statistics produced by the Association indicated that the pending escrow total increased 21.9 percent on a month-to-month basis. That supports the contention that next month's sales numbers may be slightly higher.
However, pendings were down 48.7 percent compared to a year ago.
A total of 2,163 active listings were reported at the end of January, up 22.9 percent from a year ago.
At the current pace of sales, that represents a 16.6-month inventory - a buyers' market by any definition, especially since experts believe a balanced market appears with an inventory of 5- to 6-months.
While statistics are unavailable to support the conclusion, Association executives believe the inventory was much higher during the recession of the early 1990s, a fact reflected by today's relatively modest price declines and one which weighs in against steep price discounts.
Antelope Valley
Greater Antelope Valley Association of REALTORS notes that as of 3/2/2008, there were 4575 active residential listings with an average price of $294,350.
San Fernando Valley Sales Down 35%, While Prices Post a Modest Increase
Home sales in the San Fernando Valley during 2007 declined a record 34.9 percent from the prior year, while the annual median price posted its smallest increase in many years, the Southland Regional Association of Realtors reported.
A total of 6,271 homes closed escrow compared to the 9,632 sales of 2006. The peak of the recent boom came in 2003 when Realtors completed 13,878 sales, but the record high was set in 1988 with 15,263 single-family transactions. Annual home sales in the San Fernando Valley have been slowing since 2004.
Realtors managed and negotiated home and condominium sales during 2007 that generated $1.76 billion for buyers, sellers and the local economy. That figure does not include the added millions of dollars home sales yield for related services, such as contractors, landscaping specialists, home improvement companies and manufacturers of furniture and appliances.
Condominium resale activity throughout the San Fernando Valley during 2007 fell for the fifth consecutive year, down 33.2 percent drop to 2,443 condo sales. However, annual condo sales have been lower - below 2,000 transactions from 1993 to 1995, including the record low of 1,607 set in 1993. The record high of 5,041 transactions was set in 2002.
The annual single-family median price came in at $61 1,933 -the highest on record. The increase of 1.0 percent was the lowest gain on record with each year posting slightly smaller gains since the 26.3 percent increase of 2003. This year's annual median price beat the prior record of $605,917 set in 2006.
The annual condominium median price of $385,967 was down 2.3 percent from 2006 when the record high $394,917 annual condo median was posted. It was the first drop in the annual median since 1996. From 2000 to 2005 the annual condo median posted double-digit increases with the largest one of 28.7 percent coming in 2003.
There were 5,671 active listings throughout the San Fernando Valley at the end of December, an increase of 8.8 percent over a year ago. At the current pace of sales, the inventory represents a 10.9-month supply - a buyers' market, but a clear improvement from recent months when it went as high as a 16-month supply. For perspective, the record high was a 23-month supply set in February 1993. A balanced market is in the 5- to 6-month range.
December single-family sales plunged 51.6 percent compared to the prior year while condo sales were off 55.6 percent. Declines in the median price of homes and condos were 12.4 percent for homes and 16.5 percent for condos. Prices are still sticky, not dropping nearly as fast as sales would indicate they should.
Santa Clarita Valley Home Sales At An Impasse
Home sales in the Santa Clarita Valley during January posted a record low of 99 transactions, down 42.4 percent from a year ago when 172 single-family homes changed owners, the Southland Regional Association of Realtors reported.
The prior record low of 105 home sales was recorded in September of 2007 while, for comparison, the record high of 405 sales was set in June 2005.
Likewise, a total of 31 condominiums closed escrow last month, down 57.7 percent from January 2007 and the lowest tally on record. The prior record low of 38 sales came in November 2007 while the record high of 204 sales was set in April 2003.
The median price of single-family homes sold during January fell below the $500,000 for the first time in three and a half years. The median price of $460,000 was down 21.8 percent from a year ago and well below the record high of $643,000 set in April of 2006.
Similarly, the condominium median price fell below $300,000 for the first time in three and a half years with the $284,900 January median down 20.9 percent from the prior year. The record high of $397,000 came two years ago in January 2006.
Statistics produced by the Association indicated that the pending escrow total increased 21.9 percent on a month-to-month basis. That supports the contention that next month's sales numbers may be slightly higher.
However, pendings were down 48.7 percent compared to a year ago.
A total of 2,163 active listings were reported at the end of January, up 22.9 percent from a year ago.
At the current pace of sales, that represents a 16.6-month inventory - a buyers' market by any definition, especially since experts believe a balanced market appears with an inventory of 5- to 6-months.
While statistics are unavailable to support the conclusion, Association executives believe the inventory was much higher during the recession of the early 1990s, a fact reflected by today's relatively modest price declines and one which weighs in against steep price discounts.
Antelope Valley
Greater Antelope Valley Association of REALTORS notes that as of 3/2/2008, there were 4575 active residential listings with an average price of $294,350.
Sunday, March 2, 2008
Buyers Have More Choices: Week In Review, February 25 – March 2, 2008
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Bullet points about today’s market:
• With more homes on the market for longer periods of time, buyers have more choices when it comes to selecting a home today.
• The foreclosure crisis has motivated the government to create more consumer protections against predatory lenders than previously existed.
• A temporary increase in the conforming loan limit means consumers should soon be able to borrow at lower interest rates for higher-priced homes. Prior to the increase, the conforming loan limit was $417,000. The spread between jumbo, or non-conforming mortgage loans and conforming mortgages is about 1.2 percentage points. (CAR, 2/28)
Facts and statistics to help keep you up to date on the market:
• Homeownership is strongly related to age and socioeconomic status. The average age of first-time home buyers is 32, according to the National Survey of Families and Households (NSFH). Thirty percent of homeowners are under 31 years of age. Ownership peaks at 76.7 percent among those age 61 to 70, and then declines slightly to 68.5 percent for that age 71 and older.
• Owners say they are happier and have higher self-esteem than renters, according to the NSFH.
• 86 percent of a national sample of Americans believe that people are better off owning than renting, according to the Fannie Mae National Housing Survey. (CAR, 2/28)
Santa Clarita Eyes Castaic for Annexation – Santa Clarita Planning Commission will consider the first steps in annexing the 1,500-home area of Castaic that includes Hasley Hills, Live Oak and North Bluff communities, as well as the Valencia Commerce Center. Last year a pro-annexation team submitted signatures showing 72% of residents and business owners support being annexed into the city. Before annexation becomes final, an application must be submitted to the county Local Agency Formation Commission, which would take 6-12 months to process the development. (Santa Clarita Signal, 3/2)
Economic Reports This Upcoming Week:
• Monday – U.S. Manufacturing February – expect it to be down after a modest uptick in January and a contraction in December
• Wednesday – Service Sector February – expect a decline after a steep plunge in January
• Friday – Jobs Report February – expect a decline. (CNNMoney, 3/2)
Economic Predictions - A recession is usually defined by two straight quarters of declines in gross domestic output, the broadest gauge of economic health. A survey released last week by the National Association for Business Economics showed that 45% of economists are predicting a recession in 2008. (CNNMoney, 3/2)
California Sales Down 29.8% in January - ...compared to January last year. Median home price fell 21.9% during the same time period. Who says they are still waiting for a “good time” to buy a home? (CAR, 2/25)
The median number of days it took to sell a single-family home was 71.6 days in January 2008, compared with 68.7 for the same period a year ago. Buyers have more choices! (CAR, 2/25)
Statewide, the 10 cities and communities with the highest median home prices in California during January 2008 were: Newport Beach, $1,250,000; Danville, $1,037,000; San Clemente, $923,500; Santa Barbara, $895,000; Yorba Linda, $807,500; Redondo Beach, $800,100; Redwood City, $757,500; San Ramon, $753,500; San Francisco, $744,500; and Sunnyvale, $708,500. Where’s Beverly Hills? (CAR, 2/25)
Statewide, the 10 cities and communities with the greatest median home price increases in January 2008 compared with the same period a year ago were: Redondo Beach, 11.1 percent; Danville, 6.9 percent; San Diego, 5.2 percent; Arcadia, 4.2 percent; San Clemente, 2 percent; Los Angeles, 1.5 percent; Sunnyvale, 1.2 percent; Walnut Creek, 0.8 percent; Thousand Oaks, 0.4 percent; and Redwood City, 0.3 percent. Home appreciation is still there in some markets! (CAR, 2/25)
CA Luxury Home Prices Decline - First Republic Bank’s Prestige Home Index show Los Angeles area values declined 1.2% from the third quarter of 2007 and rose 2.0% from the fourth quarter of 2006. The average luxury home in Los Angeles is now $2.4 million. Values in the Los Angeles area are down from a high of $2.46 million in the second quarter of 2007. The 1.2% decline in the fourth quarter of 2007 was the region's second consecutive quarterly drop. In December 2006, the average value of a luxury home in the Los Angeles area was $2.35 million. (First Republic Bank, 2/25)
“Say Goodbye to Granite Countertops” – CNN reports with a dramatic headline that most upscale renovations that used to return 80% of cost are not returning less than 70%, according to the National Association of REALTORS and Remodeling magazine. (3/1)
Talking Bailout – Democrats are pushing a bill in the Senate they argue will soften problems caused by the growing number of foreclosures. The most controversial part of the bill would let bankruptcy judges reduce the amount of principal and interest due on some residential mortgages. Under current law, only mortgages for investment properties, vacation homes and farms may be written down for those in bankruptcy. (CNNMoney, 2/29; MSNBC, 3/2)
Mortgage rates rise more - Following a January surge in refinancing activities, mortgage rates rose this week in the lackluster housing market, but are likely to decline. The government-sponsored loan buyer said 30-year fixed-rate loans averaged 6.24% for the week ending Thursday, up from 6.04% last week. Last year at this time, the 30-year rate averaged 6.18%, Freddie Mac said. Freddie Mac also said 15-year fixed-rate loans averaged 5.72%, up from 5.64% last week. A year ago, the 15-year rate averaged 5.92%. Rates on five-year adjustable-rate mortgages (ARMs) averaged 5.43%, up from 5.37% last week. A year ago, the 5-year rate averaged 5.93%. One-year Treasury-indexed ARMs averaged 5.11%, up from 4.98% last week. At this time a year ago, the 1-year ARM averaged 5.49%. (Freddie Mac via CNNMoney, 2/28)
Fast Facts
• Calif. median home price - January 08: $430,370 (Source: C.A.R.)
• Calif. highest median home price by C.A.R. region January 08: Santa Barbara So. Coast $1,135,000 (Source: C.A.R.)
• Calif. lowest median home price by C.A.R. region January 08: High Desert $234,310 (Source: C.A.R.)
• Calif. First-time Buyer Affordability Index - Third Quarter 07: 33 percent (Source: C.A.R.)
Sources: California Association of REALTORS (CAR), Freddie Mac, CNNMoney, Santa Clarita Signal, First Republic Bank, MSNBC.
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Bullet points about today’s market:
• With more homes on the market for longer periods of time, buyers have more choices when it comes to selecting a home today.
• The foreclosure crisis has motivated the government to create more consumer protections against predatory lenders than previously existed.
• A temporary increase in the conforming loan limit means consumers should soon be able to borrow at lower interest rates for higher-priced homes. Prior to the increase, the conforming loan limit was $417,000. The spread between jumbo, or non-conforming mortgage loans and conforming mortgages is about 1.2 percentage points. (CAR, 2/28)
Facts and statistics to help keep you up to date on the market:
• Homeownership is strongly related to age and socioeconomic status. The average age of first-time home buyers is 32, according to the National Survey of Families and Households (NSFH). Thirty percent of homeowners are under 31 years of age. Ownership peaks at 76.7 percent among those age 61 to 70, and then declines slightly to 68.5 percent for that age 71 and older.
• Owners say they are happier and have higher self-esteem than renters, according to the NSFH.
• 86 percent of a national sample of Americans believe that people are better off owning than renting, according to the Fannie Mae National Housing Survey. (CAR, 2/28)
Santa Clarita Eyes Castaic for Annexation – Santa Clarita Planning Commission will consider the first steps in annexing the 1,500-home area of Castaic that includes Hasley Hills, Live Oak and North Bluff communities, as well as the Valencia Commerce Center. Last year a pro-annexation team submitted signatures showing 72% of residents and business owners support being annexed into the city. Before annexation becomes final, an application must be submitted to the county Local Agency Formation Commission, which would take 6-12 months to process the development. (Santa Clarita Signal, 3/2)
Economic Reports This Upcoming Week:
• Monday – U.S. Manufacturing February – expect it to be down after a modest uptick in January and a contraction in December
• Wednesday – Service Sector February – expect a decline after a steep plunge in January
• Friday – Jobs Report February – expect a decline. (CNNMoney, 3/2)
Economic Predictions - A recession is usually defined by two straight quarters of declines in gross domestic output, the broadest gauge of economic health. A survey released last week by the National Association for Business Economics showed that 45% of economists are predicting a recession in 2008. (CNNMoney, 3/2)
California Sales Down 29.8% in January - ...compared to January last year. Median home price fell 21.9% during the same time period. Who says they are still waiting for a “good time” to buy a home? (CAR, 2/25)
The median number of days it took to sell a single-family home was 71.6 days in January 2008, compared with 68.7 for the same period a year ago. Buyers have more choices! (CAR, 2/25)
Statewide, the 10 cities and communities with the highest median home prices in California during January 2008 were: Newport Beach, $1,250,000; Danville, $1,037,000; San Clemente, $923,500; Santa Barbara, $895,000; Yorba Linda, $807,500; Redondo Beach, $800,100; Redwood City, $757,500; San Ramon, $753,500; San Francisco, $744,500; and Sunnyvale, $708,500. Where’s Beverly Hills? (CAR, 2/25)
Statewide, the 10 cities and communities with the greatest median home price increases in January 2008 compared with the same period a year ago were: Redondo Beach, 11.1 percent; Danville, 6.9 percent; San Diego, 5.2 percent; Arcadia, 4.2 percent; San Clemente, 2 percent; Los Angeles, 1.5 percent; Sunnyvale, 1.2 percent; Walnut Creek, 0.8 percent; Thousand Oaks, 0.4 percent; and Redwood City, 0.3 percent. Home appreciation is still there in some markets! (CAR, 2/25)
CA Luxury Home Prices Decline - First Republic Bank’s Prestige Home Index show Los Angeles area values declined 1.2% from the third quarter of 2007 and rose 2.0% from the fourth quarter of 2006. The average luxury home in Los Angeles is now $2.4 million. Values in the Los Angeles area are down from a high of $2.46 million in the second quarter of 2007. The 1.2% decline in the fourth quarter of 2007 was the region's second consecutive quarterly drop. In December 2006, the average value of a luxury home in the Los Angeles area was $2.35 million. (First Republic Bank, 2/25)
“Say Goodbye to Granite Countertops” – CNN reports with a dramatic headline that most upscale renovations that used to return 80% of cost are not returning less than 70%, according to the National Association of REALTORS and Remodeling magazine. (3/1)
Talking Bailout – Democrats are pushing a bill in the Senate they argue will soften problems caused by the growing number of foreclosures. The most controversial part of the bill would let bankruptcy judges reduce the amount of principal and interest due on some residential mortgages. Under current law, only mortgages for investment properties, vacation homes and farms may be written down for those in bankruptcy. (CNNMoney, 2/29; MSNBC, 3/2)
Mortgage rates rise more - Following a January surge in refinancing activities, mortgage rates rose this week in the lackluster housing market, but are likely to decline. The government-sponsored loan buyer said 30-year fixed-rate loans averaged 6.24% for the week ending Thursday, up from 6.04% last week. Last year at this time, the 30-year rate averaged 6.18%, Freddie Mac said. Freddie Mac also said 15-year fixed-rate loans averaged 5.72%, up from 5.64% last week. A year ago, the 15-year rate averaged 5.92%. Rates on five-year adjustable-rate mortgages (ARMs) averaged 5.43%, up from 5.37% last week. A year ago, the 5-year rate averaged 5.93%. One-year Treasury-indexed ARMs averaged 5.11%, up from 4.98% last week. At this time a year ago, the 1-year ARM averaged 5.49%. (Freddie Mac via CNNMoney, 2/28)
Fast Facts
• Calif. median home price - January 08: $430,370 (Source: C.A.R.)
• Calif. highest median home price by C.A.R. region January 08: Santa Barbara So. Coast $1,135,000 (Source: C.A.R.)
• Calif. lowest median home price by C.A.R. region January 08: High Desert $234,310 (Source: C.A.R.)
• Calif. First-time Buyer Affordability Index - Third Quarter 07: 33 percent (Source: C.A.R.)
Sources: California Association of REALTORS (CAR), Freddie Mac, CNNMoney, Santa Clarita Signal, First Republic Bank, MSNBC.
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