Hard-hit areas, such as Sacramento, Las Vegas, parts of Florida and California’s Inland Empire, appear to be among the first cities in the nation to reach the early stages of recovery, as investors and first-time buyers compete for bargain-priced foreclosures.
From New York Times:
MAKING SENSE OF THE STORY FOR CONSUMERS
By some indications, the market could be close to a bottom. Pending home sales – homes that are under contract, but have not yet closed – and construction spending rose in March.
When a market reaches bottom, foreclosures usually stop piling up and banks become more willing to issue loans, confident that the collateral backing them will not continue to decrease in value.
The first-time home buyer tax credits from the federal and state governments, coupled with favorable home prices and near record-low interest rates, led to an increase in home sales in March. Sales of existing, single-family homes rose 63.8 percent in March compared with the prior year. Monterey County reported a sales increase of 248.7 percent and the High Desert region saw sales increase 172.7 percent compared with last year, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).
The median price for the state also increased in March, rising 2.2 percent in month-to-month comparisons. March marked the first monthly increase since August 2007, while the statewide median price has remained in the $250,000 range for the past three months.
To read the full story, please click here
06 May 2009
April Consumer Confidence Jumps
Consumer confidence rose more than 12 points in April to 39.2 (1985=100), compared with 26.9 in March, according to a recent Conference Board report. The Board’s Present Situation Index increased to 23.7 in April from 21.9 for the previous month, while its Expectations Index jumped more than 19 points to 49.5 in April compared with 30.2 in March.
"Consumer confidence rose in April to its highest reading in 2009, driven primarily by a significant improvement in the short-term outlook,” said Lynn Franco, director of The Conference Board Consumer Research Center. “The Present Situation Index posted a moderate gain, a sign that conditions have not deteriorated further, and may even moderately improve, in the second quarter. The sharp increase in the Expectations Index suggests that consumers believe the economy is nearing a bottom, however, this Index still remains well below levels associated with strong economic growth."
Consumers' short-term outlook improved significantly in April. Those anticipating business conditions will worsen over the next six months declined to 25.3 percent from 37.8 percent, according to the report, while those expecting conditions to improve increased to 15.6 percent from 9.6 percent in March.
"Consumer confidence rose in April to its highest reading in 2009, driven primarily by a significant improvement in the short-term outlook,” said Lynn Franco, director of The Conference Board Consumer Research Center. “The Present Situation Index posted a moderate gain, a sign that conditions have not deteriorated further, and may even moderately improve, in the second quarter. The sharp increase in the Expectations Index suggests that consumers believe the economy is nearing a bottom, however, this Index still remains well below levels associated with strong economic growth."
Consumers' short-term outlook improved significantly in April. Those anticipating business conditions will worsen over the next six months declined to 25.3 percent from 37.8 percent, according to the report, while those expecting conditions to improve increased to 15.6 percent from 9.6 percent in March.
05 May 2009
30 April 2009
Home prices edge upward?
From Business Week:
Although it’s too early to say the market has bottomed out, there are some indicators that prices may be stabilizing.
MAKING SENSE OF THE STORY FOR CONSUMERS
· The median price for existing, single-family homes rose 2.2 percent in March in California, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). March marked the first month since August 2007 that the state’s median sales price rose in month-to-month comparisons. According to the C.A.R. sales and price report, the median price of existing, single-family homes stood at $253,040 in March.
· Sales in California have soared in recent months, with existing, single-family home sales increasing 63.8 percent in March to a seasonally adjusted rate of 522,980 on an annualized basis.
To read the full story, please click here
Although it’s too early to say the market has bottomed out, there are some indicators that prices may be stabilizing.
MAKING SENSE OF THE STORY FOR CONSUMERS
· The median price for existing, single-family homes rose 2.2 percent in March in California, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). March marked the first month since August 2007 that the state’s median sales price rose in month-to-month comparisons. According to the C.A.R. sales and price report, the median price of existing, single-family homes stood at $253,040 in March.
· Sales in California have soared in recent months, with existing, single-family home sales increasing 63.8 percent in March to a seasonally adjusted rate of 522,980 on an annualized basis.
To read the full story, please click here
Bidding wars are emerging on foreclosures
From Wall Street Journal:
Real estate industry experts are reporting that favorable home prices in many parts of the country, including California, have ignited bidding wars as first-time buyers compete with investors for many of the same foreclosed properties.
MAKING SENSE OF THE STORY FOR CONSUMERS
· While the inventory of homes for sale still outpaces demand in many areas, inventory is shrinking and some middle class neighborhoods are running into shortages of moderately priced homes. C.A.R.’s Unsold Inventory Index (UII) stood at 5 months in March in California, compared with 12.2 months in March 2008.
· Although home prices in most areas of the country are still lower than a year ago, the Federal Housing Finance Agency (FHFA) reported last week that home prices nationwide rose a seasonally adjusted 0.7 percent in February from January, led by gains on the West Coast. While this is a positive sign for the market, it could mean that the window of opportunity for first-time home buyers is narrowing.
· Many economists and housing analysts predict that the most hard-hit areas of the country, such as Sacramento and San Diego, will be among the first to recover. According to an executive with Lyon Real Estate, if sales of foreclosed homes in Sacramento maintain its current pace, the supply will be exhausted in about one month. For non foreclosures, the executive at Lyon Real Estate speculates that the inventory will be exhausted in about eight months.
· It is important to note that many banks and sellers favor all-cash bids or offers from buyers who seem certain to qualify for financing. In some cases, sellers may choose the offer least likely to fall through rather than the highest bid.
· In some instances, buyers should make offers that are at or above the asking price of a home. If the home is extremely desirable or in a neighborhood that previously was out of many buyers’ price ranges, putting in an offer slightly higher than the asking price may help to seal the deal.
To read the full story, please click here
Real estate industry experts are reporting that favorable home prices in many parts of the country, including California, have ignited bidding wars as first-time buyers compete with investors for many of the same foreclosed properties.
MAKING SENSE OF THE STORY FOR CONSUMERS
· While the inventory of homes for sale still outpaces demand in many areas, inventory is shrinking and some middle class neighborhoods are running into shortages of moderately priced homes. C.A.R.’s Unsold Inventory Index (UII) stood at 5 months in March in California, compared with 12.2 months in March 2008.
· Although home prices in most areas of the country are still lower than a year ago, the Federal Housing Finance Agency (FHFA) reported last week that home prices nationwide rose a seasonally adjusted 0.7 percent in February from January, led by gains on the West Coast. While this is a positive sign for the market, it could mean that the window of opportunity for first-time home buyers is narrowing.
· Many economists and housing analysts predict that the most hard-hit areas of the country, such as Sacramento and San Diego, will be among the first to recover. According to an executive with Lyon Real Estate, if sales of foreclosed homes in Sacramento maintain its current pace, the supply will be exhausted in about one month. For non foreclosures, the executive at Lyon Real Estate speculates that the inventory will be exhausted in about eight months.
· It is important to note that many banks and sellers favor all-cash bids or offers from buyers who seem certain to qualify for financing. In some cases, sellers may choose the offer least likely to fall through rather than the highest bid.
· In some instances, buyers should make offers that are at or above the asking price of a home. If the home is extremely desirable or in a neighborhood that previously was out of many buyers’ price ranges, putting in an offer slightly higher than the asking price may help to seal the deal.
To read the full story, please click here
03 April 2009
Mortgage rates drop to record low
Rates on 30-year, fixed-rate mortgages averaged 4.85 percent for the week ending March 26, following an announcement by the Federal Reserve that it is launching a new effort to assist the U.S. housing market. The rate marked a record low in the history of the Freddie Mac survey. The previous low was 4.96 percent set during the week of Jan. 15.
02 April 2009
Fast Facts for April 2009
Calif. median home price - February 09: $247,590(Source: C.A.R.)
Calif. highest median home price by C.A.R. region February 09: Santa Barbara So. Coast $715,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region February 09: High Desert $121,970(Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Fourth Quarter 08: 59 percent (Source: C.A.R.)
Mortgage rates - week ending 3/26/09 30-yr. fixed: 4.85% Fees/points: 0.7% 15-yr. fixed: 4.58% Fees/points: 0.7% 1-yr. adjustable: 4.85% Fees/points: 0.6% (Source: Freddie Mac)
Calif. highest median home price by C.A.R. region February 09: Santa Barbara So. Coast $715,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region February 09: High Desert $121,970(Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Fourth Quarter 08: 59 percent (Source: C.A.R.)
Mortgage rates - week ending 3/26/09 30-yr. fixed: 4.85% Fees/points: 0.7% 15-yr. fixed: 4.58% Fees/points: 0.7% 1-yr. adjustable: 4.85% Fees/points: 0.6% (Source: Freddie Mac)
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