SFV June Home Sales Slightly Behind A Year Ago - Realtors closed escrow on 671 single-family homes during June, off 19 sales or 2.8 percent below the 669 sales of June 2007. A total of 230 condominiums also changed owners last month, off 15 sales or 6.1 percent below last year’s 245 transactions. A total of 6,935 properties were listed for sale at the end of June, up 1.6 percent from a year ago, but down 2.0 percent from May. At the current pace of sales, the inventory represents a 7.7-month supply, only slightly higher than the 5- to 6-month supply deemed to represent a balanced market. For comparison, at the height of the recent sellers’ boom market the inventory frequently hovered at a less than 1-month supply. And, in the early 1990s, when a recession wracked the nation and California rebuilt its economy, the supply often soared above a 20-months, hitting a record 23-month inventory in January 1993 with total listings at nearly 15,000 in July of 1992 – double the number of properties on the market today. The median price of single-family homes sold last month was $431,000, down 34.2 percent from a year ago when the record high of $655,000 was set. The condo median price of $295,000 was off 26.2 percent. The condo record high of $415,000 was set in February 2006. Statistics support the notion that a growing number of people are entering the market. Pending sales – a measure of future resale statistics – increased 20.6 percent from a year ago and were up slightly from May. There were 1,128 open escrows at the end of June, the third consecutive month that pending sales have increased and topped the 1,000 benchmark. – Southland Regional Association of REALTORS, 7/29/08
Hooray Santa Clarita!
- SANTA CLARITA LIFEGUARDS WIN CALIFORNIA SWIM COMPETITION - Third Consecutive Year of Wins for Santa Clarita Lifeguards
- MAJOR CRIME DOWN OVER 16% IN SANTA CLARITA - First Six Months of 2008 Reveal Downward Trend for Part I Crimes --City of Santa Clarita, 8/8/08
Big Gain in Pending Home Sales Index - A hike of almost 10 percentage points in NAR's forward-looking sales indicator suggests strong prospects later this year. - National Association of REALTORS, 8/8/08
More Unmarried Couples Buying Homes - Unmarried couples made up 7 percent of home buyers last year, making up the second-fastest growing buyer segment. Experts recommend that each buyer have a will stating that their share of the property goes to the surviving owner upon his or her death, but they also should consider including joint tenancy with the right of survivorship in the deed. They also must understand that obtaining a mortgage requires full financial disclosure, meaning that their past credit histories will be out in the open. Moreover, buyers must understand that in the event of a breakup, the mortgage must be refinanced for it to be removed from one's credit report. -- National Association of REALTORS, Atlanta Journal-Constitution, 8/3/08
New Housing Bill 1st Time Buyer Tax Credit - Under the new housing bill, home buyers who have not owned a home in the last three years will be eligible for a tax credit equal to 10 percent of the property up to a maximum of $7,500.
· The credit is $3,750 for married couples filing separately. Unmarried people who jointly purchase a home will be able to divide the $7,500 credit.
· This program is actually a loan, which home buyers must repay over 15 years at zero percent interest beginning in the second year after they purchase the home. A home buyer who qualified for the whole credit would pay $500 for 15 years or about $41.67 per month.
· The credit applies only to homes purchased on or after April 9, 2008, and before July 1, 2009.
· High-income home buyers don’t qualify: Eligibility begins phasing out for single filers with adjusted income of more than $75,000 and $150,000 for joint filers. It completely phases out at $95,000 for singles and $170,000 for married couples filing jointly.
Alex Calder writes that you read this act at http://banking.senate.gov/public/_files/HousingandEconomicRecoveryActSummary1.pdf -- Washington Post, 8/3/08; Alex Calder, 8/6/08.
NEW STUDY SUGGESTS HOME LOAN LIMITS, NOT SUBPRIME BORROWERS, LED TO MORTGAGE CRISIS - A new study from the UC Irvine Paul Merage School of Business Center for Real Estate suggests that the private mortgage industry, not subprime borrowers who took out risky adjustable rate loans, led to the current lending crisis that resulted in the dramatic rise and fall of home prices across the country and mounting foreclosures. According to the study, had loan limits for Fannie Mae and Freddie Mac, the nation's two largest mortgage lenders, been lifted ahead of the current housing crisis, the two agencies would have been able to provide more loan products for borrowers, and the private mortgage sector would not have pushed as many subprime loan products-- loans that, for many homeowners, became unaffordable as their initial adjustable interest rates reset at higher amounts. –California Association of REALTORS 8/6/08.
McCain vs. Obama on Real Estate – third in a series summarizing the stance between the leading presidential candidates regarding topics associated with real estate:
Mortgage Giant Rescue – Both candidates say they want to go after predatory lenders. Obama introduced the STOP FRAUD Act in the Senate and now it's a part of his platform. McCain called for creating a task force to investigate criminal wrongdoing in the mortgage lending and securitization industry. For greater details, check http://money.cnn.com/galleries/2008/news/0806/gallery.election_issues/8.html. -- CNNMoney
Fast Facts:
- Calif. median home price - June 08: $368,250 (Source: C.A.R.)
- Calif. highest median home price by C.A.R. region June 08: Santa Barbara So. Coast $1,035.000 (Source: C.A.R.)
- Calif. lowest median home price by C.A.R. region June 08: High Desert $180,570 (Source: C.A.R.)
- Calif. First-time Buyer Affordability Index - First Quarter 08:44 percent (Source: C.A.R.)
- Mortgage rates - week ending 07/31/08 30-yr. fixed: 6.52 Fees/points: 0.7% 15-yr. fixed: 6.07 Fees/points: 0.6% 1-yr. adjustable: 5.27 % Fees/points: 0.6% (Source: Freddie Mac)
Sources: Southland Association of REALTORS®, California Association of REALTORS®, Freddie Mac, CNNMoney, Washington Post, Alex Calder, Atlanta Journal-Constitution, City of Santa Clarita, National Association of REALTORS®.
1235
No comments:
Post a Comment