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May 8, 2013

California home prices hit highest level in five years

Filed under: General,Real Estate Market Data — admin @ 8:35 am

Driven by strong sales in high-end coastal areas and shrinking inventory, California’s median home price hit its highest level in March since May 2008, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).

Making sense of the story

  • Closed escrow sales of existing, single-family detached homes in California totaled a revised seasonally adjusted annualized rate of 417,520, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.
  • March closings were up a slight 0.1 percent from a revised 417,310 in February but down 4.9 percent from a revised 439,260 in March 2012.  The statewide sales figure represents what would be the total number of homes sold during 2013 if sales maintained the March pace throughout the year.  It is adjusted to account for seasonal factors that typically influence home sales.
  • The statewide median price of an existing, single-family detached home climbed 13.7 percent from February’s $333,380 median price to $378,960 in March, reversing a two-month decline.
  • The month-to-month increase was the highest since C.A.R. began tracking this statistic in 1979.  The March price was up 28.2 percent from a revised $295,630 recorded in March 2012, marking the 13th consecutive month of annual price increases and the ninth consecutive month of double-digit annual gains.
  • The available supply of homes for sale fell significantly in March, falling to a 2.9-month supply, as measured by C.A.R.’s Unsold Inventory Index.  The March Unsold Inventory Index for existing, single-family detached homes was down from 3.6 months in February and down from 4.2 months in March 2012.  The index indicates the number of months needed to sell the supply of homes on the market at the current sales rate.  A six- to seven-month supply is considered normal.

Read the full story

Equity Sales in California hit Five-Year High

Filed under: General,Real Estate Market Data — admin @ 8:30 am

The share of equity sales rose to their highest level in five years in March, while California pending home sales climbed from the previous month, C.A.R. reported this week.

C.A.R.’s Pending Home Sales Index (PHSI) rose 14.8 percent from a revised 110.1 in February to 126.3 in March, based on signed contracts.  Pending sales were down 7.5 percent from the 136.5 index recorded in March 2012.  Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.

The share of equity sales – or non-distressed property sales – compared with total sales rose to their highest level since February 2008, recording a 72.1 percent share in March.  Equity sales made up 66.8 percent of all sales in February and about half (51.2 percent) of all sales in March 2012.

Housing inventory fell in all three property types in March, with the Unsold Inventory Index for short sales falling from a revised 3.2 months in February to 2.7 months in March and REOs slipping from 2 months in February to 1.8 months in March.  The index for equity sales declined from 3.8 months in February to 3 months in March.

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April 14, 2013

Why you should buy a Home in Carmel by the Sea

Filed under: General — Tags: , , — Ian Milne @ 6:14 pm

Located on the breathtaking Pacific Coast, the Monterey Bay Area offers iconic California attractions – the wonders of the Monterey Bay Aquarium, the shops of historic Cannery Row, legendary golf courses including the famous Pebble Beach Golf Links, and some of the most scenic drives in the world.

Monterey County is a haven for all things active – you can hike, kayak or bike, take in the thrills of an auto race, or golf at a course with breathtaking views of Monterey Bay. And if you are looking to relax, you can pamper yourself with a spa weekend or visit a Carmel Valley winery. The diversity of culinary styles in the region coupled with the abundance of local ingredients and a year-round growing season make Monterey a dining destination.

The Monterey Bay Area offers countless local festivals and events that celebrate art and music. Local events include the Monterey Jazz Festival, the longest continuously-running annual jazz event in the world;  and the Steinbeck Festival, which celebrates John Steinbeck, one of Monterey’s most notable residents who chronicled the region in a number of his stories. The walkable streets of Carmel are dotted with galleries and boutiques.

March 31, 2013

Are We on the Brink of a Home-Buying Frenzy?

Filed under: General,Loans,Real Estate Market Data — Tags: , — admin @ 6:34 pm

By Credit.com

Housing experts have noted that in the last few months, there has been a significant uptick in demand for homes by consumers eager to take advantage of still-low home prices and record-low interest rates. And soon that demand might spike even higher.

While there’s been considerable talk about the nation’s shadow inventory — that is, homes that are in foreclosure, or homes not being put up for sale until the market improves — being a factor that holds back home prices, it seems that something now being referred to as “shadow demand” could have a positive impact, according to new data from Altos Research. This pent-up demand from potential borrowers is due largely to the financial problems millions nationwide ran into over the course of the last several years. In general, these consumers would have liked to have entered the housing market years ago but were not able to do so for various reasons, both because of their personal finances and the uncertainty in the broader housing market.

[Related Article: The First Thing to Do Before Buying a Home]

Between 2008 and 2010, there were as many as 2 million people who might have wanted to form their own households but didn’t because of the effects of the recession, the report said. On average, between 1997 and 2007, about 1.3 million new households were created annually, due to both immigration and young people becoming financially independent. But after the housing bubble burst and the economy took a hit, that number shrank to about 600,000 per year.

Now, with the various improvements seen nationwide not only in housing but the broader economy, it may be that these people who fell behind in the past are getting ready to flood the market and significantly increase demand for what is currently a rather limited number of available properties, the report said. In some areas, they may have already started to trickle in. That, in turn, will likely lead to even more price increases that could help to bring more underwater homeowners back out from under negative equity; the Federal Reserve Board recently estimated that if home prices were to gain 10 percent of their current values, it would bring about 40 percent of these borrowers back to being right side up.

[Related Article: 10 Mistakes New Homebuyers Make]

However, all these buyers coming back into the market might not be a positive for other buyers. Recent polls show that many are already growing frustrated with their difficulties in closing deals because of already-high competition for listed properties.
More from Credit.com

Fed to Keep Rates Low, But for How Much Longer?

Filed under: General,Loans,Real Estate Market Data — admin @ 6:22 pm

The Federal Reserve’s policy-making committee announced it will continue to hold down short-term interest rates, which in turn will help keep mortgage rates low. But there is question of how much longer the central bank will do this.

The Fed said it will continue to buy $85 billion a month in Treasuries and mortgage-backed securities, but would reduce its asset purchase — known as “quantitative easing” — if job growth continues at its current pace.

Last year, the Fed committed to holding short-term interest rates near zero for as long as unemployment remained above 6.5 percent. In February, the unemployment rate was 7.7 percent. Many economists don’t expect unemployment to drop to levels around 6.5 percent until 2015.

However, Fed Chairman Ben Bernanke noted Wednesday that there is not consensus among the policy-making committee on how much longer to continue quantitative easing.

The committee recognized progress in the economy and job growth in recent months, noting “a return to moderate economic growth following a pause late last year.”

Bernanke has testified to Congress that quantitative easing has helped revive the housing market. Mortgage rates have fallen near all-time lows, with the average 30-year fixed-rate mortgage averaging 3.63 percent on March 14, according to Freddie Mac. In November 2012, 30-year rates fell as low as 3.31 percent.

Housing is “coming back, it’s real, and it’s going to be a positive driver,” said Jeff Fettig, the chief executive officer of Whirlpool Corp., the world’s largest appliance maker. “For every 6 percent increase in existing-home sales you see a 1 percent demand increase in appliances.”

Source: “Fed to Maintain Stimulus Efforts Despite Job Growth,” The New York Times (March 20, 2013) and“Bernanke Seen Keeping Up Pace of QE Until Fourth Quarter,” Bloomberg (March 20, 2013)

January 3, 2013

California home prices rise 25 percent

Filed under: Carmel-by-the-Sea Real Estate,General,Pebble Beach Real Estate,Real Estate Market Data — admin @ 8:59 am

This article originally appeared in the San Francisco Chronicle

California’s median price continued to register double-digit gains from year-ago levels and strong sales of higher-priced homes led to a year-over-year increase in sales in California during November, the CALIFORNIA ASSOCIATION OF REALTORS® reported this week.

Making sense of the story

  • The statewide median price of an existing, single-family detached home increased 2.3 percent from October’s $341,370 median price to $349,300 in November.
  • November’s price was up 24.8 percent from a revised $279,910 recorded in November 2011, marking the ninth consecutive month of annual price increases and the fifth consecutive month of double-digit annual gains.  The year-to-year percentage increase was the largest since June 2004.
  • Sales of existing, single-family detached homes in California were down 4.9 percent from October, but up 2.7 percent compared with the previous year.
  • “California’s median home price continued to strengthen in November, marking its highest point since August 2008,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.  “The significant increase in price was due in part to the change in the mix of sales. Coastal markets, which tend to have high-end properties, accounted for a larger share of total sales and led to strong price gains overall.”

Read the full story

October 24, 2012

California home prices rise in September; sales fall

Filed under: General — admin @ 7:54 am

A continued shortage of available homes for sale lowered California home sales in September, while the median price reached the highest level in more than four years, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported this week.

Making sense of the story

  • “Sales in the inland and coastal markets continue to move in different directions.  Low inventory – especially in distressed areas – is dampening sales activity,” said C.A.R. President LeFrancis Arnold.  “In many of these areas, there is a one- to two-month supply of REO homes on the market. “The Inland Empire and the Central Valley have experienced double-digit sales declines compared with last year.  Meanwhile, sales were higher in San Diego and most Bay Area counties, where the economies appear to be growing faster than the rest of the state.”
  • Sales in September were down 5.2 percent compared with August and down 1.2 percent from September 2011.
  • The statewide median price of an existing, single-family detached home inched up 0.3 percent from August’s $343,820 median price to $345,000 in September.
  • California’s housing inventory eased slightly in September, with the Unsold Inventory Index for existing, single-family detached homes edging up to 3.7 months, up from a revised 3.2 months in August and 5.3 months in September 2011.  The index indicates the number of months needed to sell the supply of homes on the market at the current sales rate.  A six- to seven-month supply is considered normal.
  • Homes sold faster in September, with the median number of days it took to sell a single-family home falling to 39.3 days in September 2012 from 41.1 days in August and down from a revised 54.2 days for the same period a year ago.

Read the full story

October 12, 2012

The high price of “forced” insurance

Filed under: General,Loans — Tags: , — admin @ 4:11 pm

This article originally appeared in the New York Times

Borrowers who allow their homeowners’ insurance to lapse will often get stuck with a bill for much more expensive coverage, courtesy of their lenders.

Called force-placed or lender-placed insurance, these policies protect banks’ interests when borrowers fail to follow through on the standard loan requirement that they maintain continuous coverage on their home.

Read the full story

Short sale fraud “heating up,” expert says

Filed under: General,Loans — Tags: , — admin @ 3:53 pm

This article originally appeared in Orange county Register .

A panel of short sale experts presenting at CALIFORNIA REALTOR® EXPO 2012 in Anaheim last week said that “fraud is heating up like a wildfire right now …” and “we’ve got to be aware that this fraud is changing directions, jumping containment lines.”

Making sense of the story

  • Short sales involve the selling of a home for less than is owed on its mortgage.
  • Among the most common forms of fraud are: Flopping, non-arm’s length transaction, side agreements, and false information.
  • Flopping: Scammers arrange to buy a home at an artificially deflated price intending to flip it immediately at its actual value.
  • Non-arm’s length transactions: The buyer in a short sale is related to the seller by blood, marriage, or some type of business or personal affiliation.  This istypically arranged by an underwater borrower to regain ownership of the property free from the mortgage debt.
  • Side agreements: In addition to payments included in a lender’s “approval letter,” the buyer and seller have side agreements to pay off junior liens, short sale negotiators’ fees, or other third-party fees.
  • False information: The transaction includes phony details in the closing settlement statement, or HUD-1, to hide buried costs and fees.

Read the full story

October 8, 2012

When will the housing market be “corrected?”

Filed under: General,Loans,Real Estate Market Data — admin @ 6:37 pm

San Diego Union Tribune

The housing recovery in California is expected to continue through to 2013, but the market won’t be “corrected” until as far off as 2017, according to the California Housing Market Forecast released by the CALIFORNIA ASSOCIATION OF REALTORS.

 

Making sense of the story

 

  • Homes sales and prices are expected to keep rising, but lower-than-normal inventory levels and underwater mortgages are key hindrances to a faster recovery, according to Leslie Appleton-Young, chief economist with the CALIFORNIA ASSOCIATION OF REALTORS®.
  • Home sales are forecasted to rise 1.3 percent to 530,000 units next year, based on the projected tally of 523,300 units this year. That’s a slower growth than that of 2011 to 2012, which is roughly 5 percent.
  • The momentum in prices also is expected to carry through to 2013, a result of pent-up demand for a limited housing supply. The median price could rise 5.7 percent to $335,000 in 2013. That’s lower than the projected price growth from 2011 to 2012, an estimated 11 percent. The state has a 3.2 months’ worth of housing inventory, significantly lower than the 16 months’-plus supply of saw roughly four years ago.
  • “Pent-up demand from first-time buyers will compete with investors and all-cash offers on lower-priced properties, while multiple offers and aggressive bidding will continue to be the norm in mid- to upper-price range homes,” said Appleton-Young in the report.
  • Appleton-Young says what underwater borrowers throughout the state will do — be it selling or holding — will have a big effect on next year’s housing recovery.
  • Other things to watch next year that will have a bearing on the housing market include: policies related to the state,local and federal governments; and housing and monetary policies, Appleton-Young said.

Read the full story

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