 |
 |
|
Article
Article
I can help you market or locate any home in San Diego, Orange, Riverside or Los Angeles county...Let's start now! (619) 888-3322
|
|
California Association of Realtors Newsline, ARCHIVE, 2007
C. A. R. Newsline ARCHIVE, 2007
Wednesday, August 01, 2007
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
CALIFORNIA HOUSING STARTS FELL 14 PERCENT IN JUNE
NEW SURVEY SHOWS ONLY SMALL PERCENTAGE OF LOAN ORIGINATIONS ARE SUBPRIME
CONSUMER CONFIDENCE LEVELS REACH SIX-YEAR HIGH IN JULY
CONSTRUCTION OF RESIDENTIAL PROJECTS DIPPED 0.7 PERCENT IN JUNE
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CALIFORNIA HOUSING STARTS FELL 14 PERCENT IN JUNE
Total housing starts across California slipped 14 percent in June from the previous month, according to the California Building Industry Association (CBIA), based on data supplied by the Construction Industry Research Board.
Single-family home permits pulled totaled 6,533 statewide in June, reflecting an 11 percent drop from May, and a 50 percent decline from June 2006. The number of permits pulled for multi-family housing, including condominiums and apartments, was 3,003, down 18 percent from the previous month and 54 percent below June 2006 figures.
Housing starts for the first half of 2007 fell 33 percent to 64,153, compared to the same period in 2006. Single-family permits dipped 36 percent, while multi-family starts fell 26 percent for the first half of this year.
"Major declines were noted in the San Francisco/Oakland/San Jose area," said CBIA Chief Economist Alan Nevin. "Multi-family permits there were down 42 percent for the first six months of the year. Multi-family declines in Los Angeles were only 13 percent."
Economists suggested home buyers could take advantage of lower production levels as developers continue to focus on reducing inventories during the market slowdown. "If there is a silver lining in this cloud, it is for homebuyers," said CBIA President and CEO Robert Rivinius. "It is a great time to be out shopping and making an excellent deal on a new home."
http://www.cbia.org/
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
NEW SURVEY SHOWS ONLY SMALL PERCENTAGE OF LOAN ORIGINATIONS ARE SUBPRIME
A new survey by the National Association of Mortgage Brokers (NAMB) says subprime loans continue to account for only a small percentage of loans originated this year, despite their alleged role as the leading factor in the current housing slump.
A recent survey of more than 200 brokers across the country shows that although prime loan activity in April fell to 56 percent compared to 61 percent in March, only 11 percent of the loans originated in April were subprime. In 2006, only 13 percent of all loans originated were subprime or non-traditional loans created for home buyers with credit scores lower than 620, NAMB says.
"This data shows that brokers are anticipating and meeting the changing needs of their customers," said NAMB President George Hanzimanolis. "The shift in the market toward more traditional loan products is yet another reason we have cautioned Congress not to overreact to existing concerns and allow the market to adjust."
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CONSUMER CONFIDENCE LEVELS REACH SIX-YEAR HIGH IN JULY
The Consumer Confidence Index reached a six-year high in July after falling off in June, a rebound economists view as a sign of gathering economic momentum focused away from the slowdown in the housing market and on job growth, according to The Conference Board.
The Consumer Confidence Index climbed to a 112.6 in July, up from 105.3 in June.
"An improvement in business conditions and the job market has lifted consumers' spirits in July," said Lynn Franco, director of The Conference Board Consumer Research Center. "Looking ahead, consumers are more upbeat about short-term economic prospects, mainly the result of a decline in the number of pessimists, not an increase in the number of optimists. This rebound in confidence suggests economic activity may gather a little momentum in the coming months."
http://www.conference-board.org/
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
CALIFORNIA HOUSING STARTS FELL 14 PERCENT IN JUNE
NEW SURVEY SHOWS ONLY SMALL PERCENTAGE OF LOAN ORIGINATIONS ARE SUBPRIME
CONSUMER CONFIDENCE LEVELS REACH SIX-YEAR HIGH IN JULY
CONSTRUCTION OF RESIDENTIAL PROJECTS DIPPED 0.7 PERCENT IN JUNE
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CALIFORNIA HOUSING STARTS FELL 14 PERCENT IN JUNE
Total housing starts across California slipped 14 percent in June from the previous month, according to the California Building Industry Association (CBIA), based on data supplied by the Construction Industry Research Board.
Single-family home permits pulled totaled 6,533 statewide in June, reflecting an 11 percent drop from May, and a 50 percent decline from June 2006. The number of permits pulled for multi-family housing, including condominiums and apartments, was 3,003, down 18 percent from the previous month and 54 percent below June 2006 figures.
Housing starts for the first half of 2007 fell 33 percent to 64,153, compared to the same period in 2006. Single-family permits dipped 36 percent, while multi-family starts fell 26 percent for the first half of this year.
"Major declines were noted in the San Francisco/Oakland/San Jose area," said CBIA Chief Economist Alan Nevin. "Multi-family permits there were down 42 percent for the first six months of the year. Multi-family declines in Los Angeles were only 13 percent."
Economists suggested home buyers could take advantage of lower production levels as developers continue to focus on reducing inventories during the market slowdown. "If there is a silver lining in this cloud, it is for homebuyers," said CBIA President and CEO Robert Rivinius. "It is a great time to be out shopping and making an excellent deal on a new home."
http://www.cbia.org/
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
NEW SURVEY SHOWS ONLY SMALL PERCENTAGE OF LOAN ORIGINATIONS ARE SUBPRIME
A new survey by the National Association of Mortgage Brokers (NAMB) says subprime loans continue to account for only a small percentage of loans originated this year, despite their alleged role as the leading factor in the current housing slump.
A recent survey of more than 200 brokers across the country shows that although prime loan activity in April fell to 56 percent compared to 61 percent in March, only 11 percent of the loans originated in April were subprime. In 2006, only 13 percent of all loans originated were subprime or non-traditional loans created for home buyers with credit scores lower than 620, NAMB says.
"This data shows that brokers are anticipating and meeting the changing needs of their customers," said NAMB President George Hanzimanolis. "The shift in the market toward more traditional loan products is yet another reason we have cautioned Congress not to overreact to existing concerns and allow the market to adjust."
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CONSUMER CONFIDENCE LEVELS REACH SIX-YEAR HIGH IN JULY
The Consumer Confidence Index reached a six-year high in July after falling off in June, a rebound economists view as a sign of gathering economic momentum focused away from the slowdown in the housing market and on job growth, according to The Conference Board.
The Consumer Confidence Index climbed to a 112.6 in July, up from 105.3 in June.
"An improvement in business conditions and the job market has lifted consumers' spirits in July," said Lynn Franco, director of The Conference Board Consumer Research Center. "Looking ahead, consumers are more upbeat about short-term economic prospects, mainly the result of a decline in the number of pessimists, not an increase in the number of optimists. This rebound in confidence suggests economic activity may gather a little momentum in the coming months."
http://www.conference-board.org/
~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CONSTRUCTION OF RESIDENTIAL PROJECTS DIPPED 0.7 PERCENT IN JUNE
Residential construction spending across the country dipped 0.7 percent in June compared to May, while total construction spending fell 0.3 percent, according to new data from the U.S. Census Bureau.
Residential construction spending for June was $544.2 billion, down from $548.3 billion in May, representing a 16-month consecutive decline. Total private construction spending for June fell by 0.3 percent from May to $890.9 billion, which includes nonresidential and commercial projects.
Construction spending across the board in June also fell by 0.3 percent to $1.18 trillion, despite expectations for a 0.2 percent increase from May. The June figure represents a 2.4 percent drop from $1.20 trillion in June 2006.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - June 07: $594,260(Source: C.A.R.)
Calif. highest median home price by C.A.R. region June 07: Santa Barbara So. Coast $1,375,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region June 07: High Desert $306,310 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - First Quarter 07: 25 percent (Source: C.A.R.)
Mortgage rates - week ending 7/26: 30-yr. fixed: 6.69%; Fees/points: 0.4% 15-yr. fixed: 6.39%; Fees/points: 0.4% 1-yr. adjustable: 5.71%; Fees/points: 0.5% (Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing nearly 200,000 REALTORS® statewide.
Edited by Mark Giberson
Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
CONSTRUCTION OF RESIDENTIAL PROJECTS DIPPED 0.7 PERCENT IN JUNE
Residential construction spending across the country dipped 0.7 percent in June compared to May, while total construction spending fell 0.3 percent, according to new data from the U.S. Census Bureau.
Residential construction spending for June was $544.2 billion, down from $548.3 billion in May, representing a 16-month consecutive decline. Total private construction spending for June fell by 0.3 percent from May to $890.9 billion, which includes nonresidential and commercial projects.
Construction spending across the board in June also fell by 0.3 percent to $1.18 trillion, despite expectations for a 0.2 percent increase from May. The June figure represents a 2.4 percent drop from $1.20 trillion in June 2006.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - June 07: $594,260(Source: C.A.R.)
Calif. highest median home price by C.A.R. region June 07: Santa Barbara So. Coast $1,375,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region June 07: High Desert $306,310 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - First Quarter 07: 25 percent (Source: C.A.R.)
Mortgage rates - week ending 7/26: 30-yr. fixed: 6.69%; Fees/points: 0.4% 15-yr. fixed: 6.39%; Fees/points: 0.4% 1-yr. adjustable: 5.71%; Fees/points: 0.5% (Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing nearly 200,000 REALTORS® statewide.
Edited by Mark Giberson
Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, July 11, 2007
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
REALTOR® ACTION ON PRIVATE TRANSFER TAX LEGISLATION MAKES A DIFFERENCE
U.S. LEADING INDEX SUGGESTS SLOW ECONOMIC GROWTH
NAR FORECAST: HOME SALES, PRICES TO PICK UP IN 2008
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
NATIONAL FORECLOSURE RATE DRIVEN BY JUMPS IN FOUR STATES
A record number of homeowners entered the foreclosure process during the first quarter of 2007, despite a decline in foreclosure starts in 24 states, according to a recent report from the Mortgage Bankers Association (MBA). "While foreclosure starts increased slightly from last quarter, thus setting another record, most of the increase was due to only four states: California, Florida, Nevada, and Arizona. Without these four states, foreclosure starts would have declined," said MBA Chief Economist Doug Duncan.
According to the MBA's "National Delinquency Survey," 1.28 percent of mortgage loans were in the foreclosure process last quarter, up from 0.98 percent a year earlier. The delinquency rate for mortgage loans, which does not include loans in the foreclosure process, rose to 4.84 percent during the first quarter of 2007. For subprime loans, the delinquency rate increased to 13.77 percent from 11.5 percent a year ago.
http://www.mortgagebankers.org/NewsandMedia/PressCenter/55132.htm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - April 07: $597,640 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region April 07:
Santa Barbara So. Coast $1,475,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region April 07:
High Desert $317,420 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - First Quarter 07:
25 percent (Source: C.A.R.)
Mortgage rates - week ending 6/14:
30-yr. fixed: 6.74%; Fees/points: 0.4%
15-yr. fixed: 6.43%; Fees/points: 0.4%
1-yr. adjustable: 5.75%; Fees/points: 0.7%
(Source: Freddie Mac)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing nearly 200,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins,
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CALIFORNIA VOTERS COMPLACENT ABOUT STATE BUDGET, KEY POLICY ISSUES
A significant drop in public anxiety over California's budget deficit may stem from a lack of voter knowledge about the state's key policy issues, according to a survey from the Public Policy Institute of California (PPIC). The 23rd edition of PPIC's "Californians and Their Government" series describes voters who support large bond proposals and other costly initiatives yet admit they know very little about state spending on major programs. For instance, the percentage of residents who view the state budget as a problem has decreased from 73 percent to 44 percent since May 2004, despite an ongoing gap between state spending and revenues. Only 37 percent of voters correctly identify personal income taxes as the state's largest revenue source, and just one-third of voters are aware that K-12 education absorbs the most state spending.
"Because voters don't know the basic facts about state spending on major programs, it is very difficult for them to evaluate the budget and make decisions about where to spend more or less," said PPIC President and CEO Mark Baldassare.
http://www.ppic.org/main/pressrelease.asp?i=690
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
REALTOR® ACTION ON PRIVATE TRANSFER TAX LEGISLATION MAKES A DIFFERENCE
U.S. LEADING INDEX SUGGESTS SLOW ECONOMIC GROWTH
NAR FORECAST: HOME SALES, PRICES TO PICK UP IN 2008
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
REALTOR® ACTION ON PRIVATE TRANSFER TAX LEGISLATION MAKES A DIFFERENCE
With the help of REALTORS® who contacted their senators to voice concerns about AB 1574 (Houston), the bill legitimizing private transfer taxes was withdrawn from yesterday's agenda for the Senate Transportation and Housing Committee, apparently lacking sufficient support among committee members. A hearing to be held after the Legislature adjourns for the year is being planned to further investigate the practice of using private transfer taxes.
C.A.R. opposes AB 1574, which legitimizes the use of private transfer taxes without any real safeguards to protect home buyers, because these "taxes" add to the cost of owning a home and may encourage developers, private entities, and others hoping to profit from increased sales prices that may not add value to the property. Developers who currently employ a "private transfer tax" define it as a "mitigation fee," implying that the funds somehow improve the property or the development. However, that is not necessarily the case because it is not required by law.
Also at the capitol yesterday, AB 980 (Calderon) passed the Senate Judiciary Committee. The C.A.R.-sponsored bill requires that existing private transfer taxes are clearly disclosed to home buyers so they are not surprised by an additional expense at the close of escrow.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
U.S. LEADING INDEX SUGGESTS SLOW ECONOMIC GROWTH
The U.S. leading index continued its mixed performance in May, increasing 0.3 percent following a significant decrease one month earlier. A key barometer of economic conditions, the index now stands at 138 (1996=100), the same level reported at the beginning of the year and 0.3 percent above the May 2006 level. Positive contributors to the May index include claims for unemployment insurance, stock prices, and housing permits.
The coincident index, a measure of current economic activity, increased 0.2 percent to 124 in May. The lagging index, a reflection of past economic activity, also rose 0.2 percent and stands at 128.6. According to the report, the behavior of the three composites indicates slow economic growth in the coming months.
http://www.conference-board.org/economics/bci/pressRelease_output.cfm?cid=1
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
NAR FORECAST: HOME SALES, PRICES TO PICK UP IN 2008
Lower levels of home-building activity throughout the nation will help existing home sales improve later this year and into 2008, according to NAR's most recent forecast. "Buyers now have an overwhelming advantage given the wide selection of homes available in many markets," said NAR Senior Economist Lawrence Yun. "But with profit margins coming under pressure, home builders will limit new construction well into 2008. This should help the overall inventory level to move steadily into a more balanced state." Existing-home sales are projected to total 6.11 million in 2007 and 6.37 million in 2008, down from last year's total of 6.48 million.
According to the report, prices also are expected to pick up in 2008 as inventory levels decrease. The median price of an existing single-family home is expected to drop 1.4 percent to $218,800 this year but increase 1.8 percent to $222,700 in 2008.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - May 07: $591,180 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region May 07:
Santa Barbara So. Coast $1,325,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region May 07:
High Desert $313,550 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - First Quarter 07:
25 percent (Source: C.A.R.)
Mortgage rates - week ending 7/5:
30-yr. fixed: 6.63%; Fees/points: 0.4%
15-yr. fixed: 6.3%; Fees/points: 0.4%
1-yr. adjustable: 5.71%; Fees/points: 0.4%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing nearly 200,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
REALTOR® ACTION ON PRIVATE TRANSFER TAX LEGISLATION MAKES A DIFFERENCE
With the help of REALTORS® who contacted their senators to voice concerns about AB 1574 (Houston), the bill legitimizing private transfer taxes was withdrawn from yesterday's agenda for the Senate Transportation and Housing Committee, apparently lacking sufficient support among committee members. A hearing to be held after the Legislature adjourns for the year is being planned to further investigate the practice of using private transfer taxes.
C.A.R. opposes AB 1574, which legitimizes the use of private transfer taxes without any real safeguards to protect home buyers, because these "taxes" add to the cost of owning a home and may encourage developers, private entities, and others hoping to profit from increased sales prices that may not add value to the property. Developers who currently employ a "private transfer tax" define it as a "mitigation fee," implying that the funds somehow improve the property or the development. However, that is not necessarily the case because it is not required by law.
Also at the capitol yesterday, AB 980 (Calderon) passed the Senate Judiciary Committee. The C.A.R.-sponsored bill requires that existing private transfer taxes are clearly disclosed to home buyers so they are not surprised by an additional expense at the close of escrow.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
U.S. LEADING INDEX SUGGESTS SLOW ECONOMIC GROWTH
The U.S. leading index continued its mixed performance in May, increasing 0.3 percent following a significant decrease one month earlier. A key barometer of economic conditions, the index now stands at 138 (1996=100), the same level reported at the beginning of the year and 0.3 percent above the May 2006 level. Positive contributors to the May index include claims for unemployment insurance, stock prices, and housing permits.
The coincident index, a measure of current economic activity, increased 0.2 percent to 124 in May. The lagging index, a reflection of past economic activity, also rose 0.2 percent and stands at 128.6. According to the report, the behavior of the three composites indicates slow economic growth in the coming months.
http://www.conference-board.org/economics/bci/pressRelease_output.cfm?cid=1
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
NAR FORECAST: HOME SALES, PRICES TO PICK UP IN 2008
Lower levels of home-building activity throughout the nation will help existing home sales improve later this year and into 2008, according to NAR's most recent forecast. "Buyers now have an overwhelming advantage given the wide selection of homes available in many markets," said NAR Senior Economist Lawrence Yun. "But with profit margins coming under pressure, home builders will limit new construction well into 2008. This should help the overall inventory level to move steadily into a more balanced state." Existing-home sales are projected to total 6.11 million in 2007 and 6.37 million in 2008, down from last year's total of 6.48 million.
According to the report, prices also are expected to pick up in 2008 as inventory levels decrease. The median price of an existing single-family home is expected to drop 1.4 percent to $218,800 this year but increase 1.8 percent to $222,700 in 2008.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - May 07: $591,180 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region May 07:
Santa Barbara So. Coast $1,325,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region May 07:
High Desert $313,550 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - First Quarter 07:
25 percent (Source: C.A.R.)
Mortgage rates - week ending 7/5:
30-yr. fixed: 6.63%; Fees/points: 0.4%
15-yr. fixed: 6.3%; Fees/points: 0.4%
1-yr. adjustable: 5.71%; Fees/points: 0.4%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing nearly 200,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Tuesday, July 03, 2007
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
FED HOLDS FUNDS RATE AT 5.25 PERCENT
TIGHTER LENDING STANDARDS CONTINUE TO IMPACT HOUSING ACTIVITY
SEVEN CALIFORNIA CITIES AMONG NATION'S FASTEST GROWING
HOUSING STARTS, CONSTRUCTION SPENDING DECLINE IN MAY
FED HOLDS FUNDS RATE AT 5.25 PERCENT
Citing moderate economic growth during the first six months of the year, the Federal Reserve's Open Market Committee last week decided to leave its short-term interest rate at 5.25 percent, where it has stood since June 2006. The federal funds target rate is the interest rate charged by banks when they borrow funds "overnight" from each other. While the federal funds rate has no direct impact on other rates, such as those for mortgages, it can alter them indirectly.
In a prepared statement, the Fed acknowledged that while readings on core inflation have improved in recent months, risk remains that inflation will fail to moderate in the coming months as expected. "A sustained moderation in inflation pressures has yet to be convincingly demonstrated," according to the statement.
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
FED HOLDS FUNDS RATE AT 5.25 PERCENT
TIGHTER LENDING STANDARDS CONTINUE TO IMPACT HOUSING ACTIVITY
SEVEN CALIFORNIA CITIES AMONG NATION'S FASTEST GROWING
HOUSING STARTS, CONSTRUCTION SPENDING DECLINE IN MAY
FED HOLDS FUNDS RATE AT 5.25 PERCENT
Citing moderate economic growth during the first six months of the year, the Federal Reserve's Open Market Committee last week decided to leave its short-term interest rate at 5.25 percent, where it has stood since June 2006. The federal funds target rate is the interest rate charged by banks when they borrow funds "overnight" from each other. While the federal funds rate has no direct impact on other rates, such as those for mortgages, it can alter them indirectly.
In a prepared statement, the Fed acknowledged that while readings on core inflation have improved in recent months, risk remains that inflation will fail to moderate in the coming months as expected. "A sustained moderation in inflation pressures has yet to be convincingly demonstrated," according to the statement.
http://federalreserve.gov/boarddocs/press/monetary/2007/20070628/default.htm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
TIGHTER LENDING STANDARDS CONTINUE TO IMPACT HOUSING ACTIVITY
Home sales should remain stable in the months ahead, despite a lack of buyer confidence and the continued impact of tighter lending criteria, NAR today reported. The Association's Pending Home Sales Index (PHSI), a forward-looking indicator that gauges home sales activity for upcoming months, declined for the third consecutive month in May, falling 13.3 percent from a year ago to a reading of 97.9. A PHSI of 100 is equal to the average contract level in 2001, the first of five consecutive years of record home sales.
"Better supervised lending will put housing in a fundamentally healthier state of the long term," said NAR Senior Economist Lawrence Yun. "Mortgage purchase applications are trending up, with some of the rise due to buyers reapplying for alternatives to subprime financing. Nonetheless, home sales should stay close to present levels in the months ahead given an accumulating pent-up demand."
While the West and Northeast regions both saw modest increases on a month-to-month basis, the PHSI declined across the nation in May compared with the readings a year ago. On a regional basis, the PHSI dropped 15.4 percent to 107.2 in the South; 13.7 percent to 95.4 in the West; 9.6 percent to 93.1 in the Northeast; and 11.7 percent to 89.4 in the Midwest.
http://www.realtor.org/press_room/news_releases/2007/phs_may07_some_regions_up.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
SEVEN CALIFORNIA CITIES AMONG NATION'S FASTEST GROWING
Seven cities in the Golden State rank among the top 25 cities with the fastest growth rates in the nation, according to a recent report from the U.S. Census Bureau. North Las Vegas, Nev., led the nation with an 11.9 percent population increase between July 2005 and July 2006. The fastest-growing city in California during the same time period was Lancaster, which experienced a 5 percent population increase. Other California cities listed in the top 25 include Bakersfield (14), Visalia (19), Irvine (20), Fontana (21), Elk Grove (24), and Palmdale (25).
California also is home to four of the nation's largest cities, according to the Census Bureau's report. With 3.8 million residents, Los Angeles remains the nation's second most populous city, while San Diego, San Jose, and San Francisco rank eighth, 10th, and 14th, respectively.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
TIGHTER LENDING STANDARDS CONTINUE TO IMPACT HOUSING ACTIVITY
Home sales should remain stable in the months ahead, despite a lack of buyer confidence and the continued impact of tighter lending criteria, NAR today reported. The Association's Pending Home Sales Index (PHSI), a forward-looking indicator that gauges home sales activity for upcoming months, declined for the third consecutive month in May, falling 13.3 percent from a year ago to a reading of 97.9. A PHSI of 100 is equal to the average contract level in 2001, the first of five consecutive years of record home sales.
"Better supervised lending will put housing in a fundamentally healthier state of the long term," said NAR Senior Economist Lawrence Yun. "Mortgage purchase applications are trending up, with some of the rise due to buyers reapplying for alternatives to subprime financing. Nonetheless, home sales should stay close to present levels in the months ahead given an accumulating pent-up demand."
While the West and Northeast regions both saw modest increases on a month-to-month basis, the PHSI declined across the nation in May compared with the readings a year ago. On a regional basis, the PHSI dropped 15.4 percent to 107.2 in the South; 13.7 percent to 95.4 in the West; 9.6 percent to 93.1 in the Northeast; and 11.7 percent to 89.4 in the Midwest.
http://www.realtor.org/press_room/news_releases/2007/phs_may07_some_regions_up.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
SEVEN CALIFORNIA CITIES AMONG NATION'S FASTEST GROWING
Seven cities in the Golden State rank among the top 25 cities with the fastest growth rates in the nation, according to a recent report from the U.S. Census Bureau. North Las Vegas, Nev., led the nation with an 11.9 percent population increase between July 2005 and July 2006. The fastest-growing city in California during the same time period was Lancaster, which experienced a 5 percent population increase. Other California cities listed in the top 25 include Bakersfield (14), Visalia (19), Irvine (20), Fontana (21), Elk Grove (24), and Palmdale (25).
California also is home to four of the nation's largest cities, according to the Census Bureau's report. With 3.8 million residents, Los Angeles remains the nation's second most populous city, while San Diego, San Jose, and San Francisco rank eighth, 10th, and 14th, respectively.
http://www.census.gov/Press-Release/www/releases/archives/population/010315.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HOUSING STARTS, CONSTRUCTION SPENDING DECLINE IN MAY
While California's home builders continued to scale back on production in May, the California Building Industry Association (CBIA) anticipates a stabilizing housing market through the remainder of the year, according to a recent report. In May, builders started 10,738 new housing units, up 2.4 percent from April but down 31.3 percent from a year ago. Single-family homes accounted for 67 percent of the starts, with production stable through most of the state. The Riverside/San Bernardino area has accounted for nearly 50 percent of the state's decline in single-family housing construction, according to the report.
In a separate report, the U.S. Census Bureau also released data showing a similar decline in construction activity nationwide. The annual pace of construction spending slowed for the 14th consecutive month in May, falling 2.8 percent from a year ago to a seasonally adjusted annual rate of $1.18 trillion. Residential construction spending declined 17.3 percent to a rate of $556 billion, while the value of nonresidential construction activity rose 15.4 percent to a rate of $620.5 billion, according to the report.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HOUSING STARTS, CONSTRUCTION SPENDING DECLINE IN MAY
While California's home builders continued to scale back on production in May, the California Building Industry Association (CBIA) anticipates a stabilizing housing market through the remainder of the year, according to a recent report. In May, builders started 10,738 new housing units, up 2.4 percent from April but down 31.3 percent from a year ago. Single-family homes accounted for 67 percent of the starts, with production stable through most of the state. The Riverside/San Bernardino area has accounted for nearly 50 percent of the state's decline in single-family housing construction, according to the report.
In a separate report, the U.S. Census Bureau also released data showing a similar decline in construction activity nationwide. The annual pace of construction spending slowed for the 14th consecutive month in May, falling 2.8 percent from a year ago to a seasonally adjusted annual rate of $1.18 trillion. Residential construction spending declined 17.3 percent to a rate of $556 billion, while the value of nonresidential construction activity rose 15.4 percent to a rate of $620.5 billion, according to the report.
http://www.cbia.org/index.cfm?pageid=1439&preview=yes
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - May 07: $591,180 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region May 07:
Santa Barbara So. Coast $1,325,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region May 07:
High Desert $313,550 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - First Quarter 07:
25 percent (Source: C.A.R.)
Mortgage rates - week ending 6/28:
30-yr. fixed: 6.67%; Fees/points: 0.4%
15-yr. fixed: 6.34%; Fees/points: 0.4%
1-yr. adjustable: 5.65%; Fees/points: 0.5%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing nearly 200,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - May 07: $591,180 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region May 07:
Santa Barbara So. Coast $1,325,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region May 07:
High Desert $313,550 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - First Quarter 07:
25 percent (Source: C.A.R.)
Mortgage rates - week ending 6/28:
30-yr. fixed: 6.67%; Fees/points: 0.4%
15-yr. fixed: 6.34%; Fees/points: 0.4%
1-yr. adjustable: 5.65%; Fees/points: 0.5%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing nearly 200,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, June 27, 2007
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
CONSUMER CONFIDENCE FALLS AMID CONCERNS ABOUT JOB MARKET
CALIFORNIA HOME SALES DECREASE 25 PERCENT IN MAY
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CONSUMER CONFIDENCE FALLS AMID CONCERNS ABOUT JOB MARKET
After rebounding in May, consumer confidence took a downward turn this month, according to yesterday's report from The Conference Board. The organization's Consumer Confidence Index decreased to 103.9 (1985=100) in June, down from 108.5 in May. The Present Situation and Expectations indexes also declined, falling to 127.9 and 87.9, respectively.
According to the report, consumers' remain cautious about current business conditions and the labor market. The percentage of consumers who claim jobs are "hard to get" increased to 21.1 percent in June, while those claiming current economic conditions are "good" declined to 27.4 percent. "A perceived softening in present-day business and employment conditions are the major reasons behind this month's pull-back in confidence," said Lynn Franco, director of The Conference Board Consumer Research Center. "Looking ahead, consumers remain rather subdued about short-term economic prospects. All in all, the glass remains half empty and half full."
http://www.conference-board.org/economics/consumerConfidence.cfm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CALIFORNIA HOME SALES DECREASE 25 PERCENT IN MAY
The median price of an existing single-family home in California increased 4.8 percent in May and sales decreased 25 percent compared with the same period a year ago, C.A.R. reported this week. "The decline in sales continues to be driven by both tighter underwriting standards since the start of the year and the adverse psychological impact of news regarding foreclosures and the subprime situation," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "In particular, the lower end of the market â€" which is the part of the market that is most affected by the subprime situation â€" has seen greater declines in sales and weaker prices than the higher end of the market. This will likely be a recurring theme in the coming months."
According to the report, the median price of an existing, single-family detached home in California during May was $591,180, a 4.8 percent increase over the revised $563,860 median for May 2006. Also last month, closed escrow sales of existing, single-family detached homes in California totaled 366,370 at a seasonally adjusted annualized rate, down 25 percent compared with the sales pace recorded one year earlier and down 1.9 percent from home resale activity in April 2007.
http://www.car.org/index.php?id=Mzc1NTM=
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - May 07: $591,180 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region May 07:
Santa Barbara So. Coast $1,325,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region May 07:
High Desert $313,550 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - First Quarter 07:
25 percent (Source: C.A.R.)
Mortgage rates - week ending 6/21:
30-yr. fixed: 6.69%; Fees/points: 0.5%
15-yr. fixed: 6.37%; Fees/points: 0.5%
1-yr. adjustable: 5.66%; Fees/points: 0.7%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing nearly 200,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
CONSUMER CONFIDENCE FALLS AMID CONCERNS ABOUT JOB MARKET
CALIFORNIA HOME SALES DECREASE 25 PERCENT IN MAY
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CONSUMER CONFIDENCE FALLS AMID CONCERNS ABOUT JOB MARKET
After rebounding in May, consumer confidence took a downward turn this month, according to yesterday's report from The Conference Board. The organization's Consumer Confidence Index decreased to 103.9 (1985=100) in June, down from 108.5 in May. The Present Situation and Expectations indexes also declined, falling to 127.9 and 87.9, respectively.
According to the report, consumers' remain cautious about current business conditions and the labor market. The percentage of consumers who claim jobs are "hard to get" increased to 21.1 percent in June, while those claiming current economic conditions are "good" declined to 27.4 percent. "A perceived softening in present-day business and employment conditions are the major reasons behind this month's pull-back in confidence," said Lynn Franco, director of The Conference Board Consumer Research Center. "Looking ahead, consumers remain rather subdued about short-term economic prospects. All in all, the glass remains half empty and half full."
http://www.conference-board.org/economics/consumerConfidence.cfm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CALIFORNIA HOME SALES DECREASE 25 PERCENT IN MAY
The median price of an existing single-family home in California increased 4.8 percent in May and sales decreased 25 percent compared with the same period a year ago, C.A.R. reported this week. "The decline in sales continues to be driven by both tighter underwriting standards since the start of the year and the adverse psychological impact of news regarding foreclosures and the subprime situation," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "In particular, the lower end of the market â€" which is the part of the market that is most affected by the subprime situation â€" has seen greater declines in sales and weaker prices than the higher end of the market. This will likely be a recurring theme in the coming months."
According to the report, the median price of an existing, single-family detached home in California during May was $591,180, a 4.8 percent increase over the revised $563,860 median for May 2006. Also last month, closed escrow sales of existing, single-family detached homes in California totaled 366,370 at a seasonally adjusted annualized rate, down 25 percent compared with the sales pace recorded one year earlier and down 1.9 percent from home resale activity in April 2007.
http://www.car.org/index.php?id=Mzc1NTM=
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - May 07: $591,180 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region May 07:
Santa Barbara So. Coast $1,325,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region May 07:
High Desert $313,550 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - First Quarter 07:
25 percent (Source: C.A.R.)
Mortgage rates - week ending 6/21:
30-yr. fixed: 6.69%; Fees/points: 0.5%
15-yr. fixed: 6.37%; Fees/points: 0.5%
1-yr. adjustable: 5.66%; Fees/points: 0.7%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing nearly 200,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, June 20, 2007
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
BUILDER CONFIDENCE FALLS TO LOWEST LEVEL IN 16 YEARS
C.A.R.-SPONSORED LEGISLATION MOVES FORWARD
U.S. HOUSING PERMITS, STARTS FALL IN MAY
NATIONAL FORECLOSURE RATE DRIVEN BY JUMPS IN FOUR STATES
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
BUILDER CONFIDENCE FALLS TO LOWEST LEVEL IN 16 YEARS
Concerns about rising interest rates, increased sales cancellations, and sizable inventory levels continue to negatively impact builder confidence, which declined for the fourth consecutive month in June, according to the National Association of Home Builders (NAHB). The Association's Housing Market Index (HMI), which gauges builders' perceptions of current and future home sales, now stands at 28, down two points from May and down 14 points from a year ago. The HMI has not fallen below 30 since February 1991. An HMI below 50 indicates more builders view sales conditions as poor versus good.
"It's clear that the crisis in the subprime sector has prompted tighter lending standards in much of the mortgage market, and interest rates on prime-quality home mortgages have moved up considerably during the past month along with long-term Treasury rates," said NAHB Chief Economist David Seiders. "Home sales most likely will erode somewhat further in the months ahead and improvements in housing starts probably will not be recorded until early next year. As a result, we expect housing to exert a drag on economic growth during the balance of 2007."
All three HMI components decreased this month. The indexes gauging current and future sales each declined two points to 29 and 39, respectively, while the component measuring buyer traffic edged down one point to 21.
http://www.nahb.org/news_details.aspx?newsID=4790&print=true
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
U.S. HOUSING PERMITS, STARTS FALL IN MAY
The seasonally adjusted annual rate for privately owned housing starts declined to 1.47 million units in May, according to a report released by the U.S. Dept. of Commerce. May's construction pace was down 24.2 percent from a year ago. Single-family housing starts decreased 26 percent from May 2006, to a rate of 1.17 million units, while starts for buildings with five or more units fell 13.1 percent to 271,000. The number of building permits issued, which can be an indicator of future building activity, declined 21.7 percent from one year earlier to a seasonally adjusted annual rate of 1.5 million permits.
The rate of new residential construction decreased across the nation in May. Compared with a year ago, the rate for privately owned housing starts declined 2.5 percent in the Northeast, 17.9 percent in the Midwest, 23.1 percent in the South, and 38 percent in the West.
http://www.census.gov/const/newresconst.pdf
Wednesday, June 20, 2007
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
BUILDER CONFIDENCE FALLS TO LOWEST LEVEL IN 16 YEARS
C.A.R.-SPONSORED LEGISLATION MOVES FORWARD
U.S. HOUSING PERMITS, STARTS FALL IN MAY
NATIONAL FORECLOSURE RATE DRIVEN BY JUMPS IN FOUR STATES
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
BUILDER CONFIDENCE FALLS TO LOWEST LEVEL IN 16 YEARS
Concerns about rising interest rates, increased sales cancellations, and sizable inventory levels continue to negatively impact builder confidence, which declined for the fourth consecutive month in June, according to the National Association of Home Builders (NAHB). The Association's Housing Market Index (HMI), which gauges builders' perceptions of current and future home sales, now stands at 28, down two points from May and down 14 points from a year ago. The HMI has not fallen below 30 since February 1991. An HMI below 50 indicates more builders view sales conditions as poor versus good.
"It's clear that the crisis in the subprime sector has prompted tighter lending standards in much of the mortgage market, and interest rates on prime-quality home mortgages have moved up considerably during the past month along with long-term Treasury rates," said NAHB Chief Economist David Seiders. "Home sales most likely will erode somewhat further in the months ahead and improvements in housing starts probably will not be recorded until early next year. As a result, we expect housing to exert a drag on economic growth during the balance of 2007."
All three HMI components decreased this month. The indexes gauging current and future sales each declined two points to 29 and 39, respectively, while the component measuring buyer traffic edged down one point to 21.
http://www.nahb.org/news_details.aspx?newsID=4790&print=true
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
U.S. HOUSING PERMITS, STARTS FALL IN MAY
The seasonally adjusted annual rate for privately owned housing starts declined to 1.47 million units in May, according to a report released by the U.S. Dept. of Commerce. May's construction pace was down 24.2 percent from a year ago. Single-family housing starts decreased 26 percent from May 2006, to a rate of 1.17 million units, while starts for buildings with five or more units fell 13.1 percent to 271,000. The number of building permits issued, which can be an indicator of future building activity, declined 21.7 percent from one year earlier to a seasonally adjusted annual rate of 1.5 million permits.
The rate of new residential construction decreased across the nation in May. Compared with a year ago, the rate for privately owned housing starts declined 2.5 percent in the Northeast, 17.9 percent in the Midwest, 23.1 percent in the South, and 38 percent in the West.
http://www.census.gov/const/newresconst.pdf
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
NATIONAL FORECLOSURE RATE DRIVEN BY JUMPS IN FOUR STATES
A record number of homeowners entered the foreclosure process during the first quarter of 2007, despite a decline in foreclosure starts in 24 states, according to a recent report from the Mortgage Bankers Association (MBA). "While foreclosure starts increased slightly from last quarter, thus setting another record, most of the increase was due to only four states: California, Florida, Nevada, and Arizona. Without these four states, foreclosure starts would have declined," said MBA Chief Economist Doug Duncan.
According to the MBA's "National Delinquency Survey," 1.28 percent of mortgage loans were in the foreclosure process last quarter, up from 0.98 percent a year earlier. The delinquency rate for mortgage loans, which does not include loans in the foreclosure process, rose to 4.84 percent during the first quarter of 2007. For subprime loans, the delinquency rate increased to 13.77 percent from 11.5 percent a year ago.
http://www.mortgagebankers.org/NewsandMedia/PressCenter/55132.htm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - April 07: $597,640 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region April 07:
Santa Barbara So. Coast $1,475,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region April 07:
High Desert $317,420 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - First Quarter 07:
25 percent (Source: C.A.R.)
Mortgage rates - week ending 6/14:
30-yr. fixed: 6.74%; Fees/points: 0.4%
15-yr. fixed: 6.43%; Fees/points: 0.4%
1-yr. adjustable: 5.75%; Fees/points: 0.7%
(Source: Freddie Mac)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing nearly 200,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins,
Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, June 13, 2007
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. FORECASTS 14 PERCENT SALES DECLINE IN 2007
CFA SURVEY REVEALS FAVORABLE VIEW OF REAL ESTATE INDUSTRY
HOUSING AFFORDABILITY A LONG-TERM CHALLENGE, HARVARD REPORTS
CALIFORNIA VOTERS COMPLACENT ABOUT STATE BUDGET, KEY POLICY ISSUES
LUXURY HOME MARKETS REMAIN STRONG
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. FORECASTS 14 PERCENT SALES DECLINE IN 2007
The rate of home price appreciation will post a modest increase this year, while the sales pace for single-family homes will decrease 14 percent, according to C.A.R.'s "2007 Midyear Housing Market Forecast," presented last week during the California REALTOR® Showcase in Sacramento. Sales are expected to fall to 410,500 units in 2007, a 14 percent decline from the 477,460 pace recorded in 2006, according to the forecast. The median price of a home will reach $566,500 this year, a 1.8 percent increase from the $556,640 median for 2006.
"Sales have declined in all areas of the state, but higher-end markets have experienced somewhat smaller declines," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "Sales are weakest in areas that had a lot of new home building in recent years or those areas that had been popular for second home purchases.
"Prices tend to be softer in those areas as well," she said. "This pattern is likely to continue throughout the rest of the year, particularly in areas that were popular among first-time home buyers, which experienced the greatest run-up in prices. Similarly, higher-end markets have seen greater price stability, with the median price of a home declining slightly, if at all. The sales mix, with slower sales in the entry and lower-end of the market and relatively stronger sales in the high end, has helped stabilize the median price."
http://www.car.org/index.php?id=Mzc1Mjk=
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ CFA SURVEY REVEALS FAVORABLE VIEW OF REAL ESTATE INDUSTRY
Most Americans view real estate brokers, agents, and services in a positive light but also admit they do not understand the real estate industry very well, according to a recent survey conducted by the Consumer Federation of America (CFA). Consumers are more likely to view the industry favorably if they have worked with a broker in the last five years. Nearly 75 percent of consumers who had recently worked with a broker viewed real estate's "consumer practices" favorably, compared with 68 percent of the total respondents. Additionally, participants report they find many of the services provided by brokers and agents useful, including price negotiations (50 percent), helping buyers visit homes (64 percent), and closing the sale (58 percent).
While most respondents hold agreeable views about agents and the services they provide, only 36 percent claim to know "a lot" or "a fair amount" about consumer services in the real estate industry. For instance, 41 percent of consumers believe commissions are determined by agents and the industry and only 34 percent are aware that their local multiple listing service is the most complete source of information about homes for sale.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HOUSING AFFORDABILITY A LONG-TERM CHALLENGE, HARVARD REPORTS
The nation's housing market is struggling to recover from a drop in demand, an oversupply of homes for sale, and the tightening of lending standards, according to the "State of the Nation's Housing," a report from the Harvard University Joint Center for Housing Studies. The number of vacant homes for sale rose by more than 500,000 from the fourth quarter of 2005 to the fourth quarter of 2006, and the number of homes entering foreclosure increased by 75,000 during the same period.
With 17 million households spending more than half their income housing, the nation's largest housing challenge is housing affordability, according to the report. "Even if prices or rents soften for a period of time, the nature of the U.S. labor market, the regulatory restrictions imposed on residential development, and the fiscal limits of government assistance to cost-burdened households make affordability a long-term challenge," said Rachel Drew, a research analyst with the Joint Center.
The report also notes that the housing market will recover in time. "While it will take time to work out current loan problems and work off the oversupply of homes, the long-term outlook for residential investment remains strong," said Executive Director of the Joint Center Eric Belsky.
http://www.jchs.harvard.edu/media/son_release_2007.html
Wednesday, June 13, 2007
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. FORECASTS 14 PERCENT SALES DECLINE IN 2007
CFA SURVEY REVEALS FAVORABLE VIEW OF REAL ESTATE INDUSTRY
HOUSING AFFORDABILITY A LONG-TERM CHALLENGE, HARVARD REPORTS
CALIFORNIA VOTERS COMPLACENT ABOUT STATE BUDGET, KEY POLICY ISSUES
LUXURY HOME MARKETS REMAIN STRONG
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. FORECASTS 14 PERCENT SALES DECLINE IN 2007
The rate of home price appreciation will post a modest increase this year, while the sales pace for single-family homes will decrease 14 percent, according to C.A.R.'s "2007 Midyear Housing Market Forecast," presented last week during the California REALTOR® Showcase in Sacramento. Sales are expected to fall to 410,500 units in 2007, a 14 percent decline from the 477,460 pace recorded in 2006, according to the forecast. The median price of a home will reach $566,500 this year, a 1.8 percent increase from the $556,640 median for 2006.
"Sales have declined in all areas of the state, but higher-end markets have experienced somewhat smaller declines," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "Sales are weakest in areas that had a lot of new home building in recent years or those areas that had been popular for second home purchases.
"Prices tend to be softer in those areas as well," she said. "This pattern is likely to continue throughout the rest of the year, particularly in areas that were popular among first-time home buyers, which experienced the greatest run-up in prices. Similarly, higher-end markets have seen greater price stability, with the median price of a home declining slightly, if at all. The sales mix, with slower sales in the entry and lower-end of the market and relatively stronger sales in the high end, has helped stabilize the median price."
http://www.car.org/index.php?id=Mzc1Mjk=
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ CFA SURVEY REVEALS FAVORABLE VIEW OF REAL ESTATE INDUSTRY
Most Americans view real estate brokers, agents, and services in a positive light but also admit they do not understand the real estate industry very well, according to a recent survey conducted by the Consumer Federation of America (CFA). Consumers are more likely to view the industry favorably if they have worked with a broker in the last five years. Nearly 75 percent of consumers who had recently worked with a broker viewed real estate's "consumer practices" favorably, compared with 68 percent of the total respondents. Additionally, participants report they find many of the services provided by brokers and agents useful, including price negotiations (50 percent), helping buyers visit homes (64 percent), and closing the sale (58 percent).
While most respondents hold agreeable views about agents and the services they provide, only 36 percent claim to know "a lot" or "a fair amount" about consumer services in the real estate industry. For instance, 41 percent of consumers believe commissions are determined by agents and the industry and only 34 percent are aware that their local multiple listing service is the most complete source of information about homes for sale.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HOUSING AFFORDABILITY A LONG-TERM CHALLENGE, HARVARD REPORTS
The nation's housing market is struggling to recover from a drop in demand, an oversupply of homes for sale, and the tightening of lending standards, according to the "State of the Nation's Housing," a report from the Harvard University Joint Center for Housing Studies. The number of vacant homes for sale rose by more than 500,000 from the fourth quarter of 2005 to the fourth quarter of 2006, and the number of homes entering foreclosure increased by 75,000 during the same period.
With 17 million households spending more than half their income housing, the nation's largest housing challenge is housing affordability, according to the report. "Even if prices or rents soften for a period of time, the nature of the U.S. labor market, the regulatory restrictions imposed on residential development, and the fiscal limits of government assistance to cost-burdened households make affordability a long-term challenge," said Rachel Drew, a research analyst with the Joint Center.
The report also notes that the housing market will recover in time. "While it will take time to work out current loan problems and work off the oversupply of homes, the long-term outlook for residential investment remains strong," said Executive Director of the Joint Center Eric Belsky.
http://www.jchs.harvard.edu/media/son_release_2007.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CALIFORNIA VOTERS COMPLACENT ABOUT STATE BUDGET, KEY POLICY ISSUES
A significant drop in public anxiety over California's budget deficit may stem from a lack of voter knowledge about the state's key policy issues, according to a survey from the Public Policy Institute of California (PPIC). The 23rd edition of PPIC's "Californians and Their Government" series describes voters who support large bond proposals and other costly initiatives yet admit they know very little about state spending on major programs. For instance, the percentage of residents who view the state budget as a problem has decreased from 73 percent to 44 percent since May 2004, despite an ongoing gap between state spending and revenues. Only 37 percent of voters correctly identify personal income taxes as the state's largest revenue source, and just one-third of voters are aware that K-12 education absorbs the most state spending.
"Because voters don't know the basic facts about state spending on major programs, it is very difficult for them to evaluate the budget and make decisions about where to spend more or less," said PPIC President and CEO Mark Baldassare.
http://www.ppic.org/main/pressrelease.asp?i=690
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
LUXURY HOME MARKETS REMAIN STRONG
High-end home values remained strong in Los Angeles, San Diego, and San Francisco during the first quarter of 2007, according to the First Republic Prestige Home Index™, which tracks homes valued at more than $1 million in key California markets. Last quarter the market for homes priced above $10 million remained particularly strong, while the market for the homes in the $2 million to $6 million range continued to normalize, according to the report.
Boosted by strength in the entertainment industry and a diversified economy, luxury home values remained the strongest in Los Angeles, where first quarter luxury home prices were up 6.5 percent from a year ago and the average luxury home is now valued at $2.44 million. High-end homes in San Diego also recorded modest annual gains last quarter, rising 3.2 percent to $2.17 million, while luxury home values in the San Francisco Bay Area remained unchanged from a year ago. The average price of a luxury home in San Francisco remained at $2.92 million, according to the report.
http://firstrepublic.com/lend/residential/prestigeindex/index.html
LUXURY HOME MARKETS REMAIN STRONG
High-end home values remained strong in Los Angeles, San Diego, and San Francisco during the first quarter of 2007, according to the First Republic Prestige Home Index™, which tracks homes valued at more than $1 million in key California markets. Last quarter the market for homes priced above $10 million remained particularly strong, while the market for the homes in the $2 million to $6 million range continued to normalize, according to the report.
Boosted by strength in the entertainment industry and a diversified economy, luxury home values remained the strongest in Los Angeles, where first quarter luxury home prices were up 6.5 percent from a year ago and the average luxury home is now valued at $2.44 million. High-end homes in San Diego also recorded modest annual gains last quarter, rising 3.2 percent to $2.17 million, while luxury home values in the San Francisco Bay Area remained unchanged from a year ago. The average price of a luxury home in San Francisco remained at $2.92 million, according to the report.
http://firstrepublic.com/lend/residential/prestigeindex/index.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - April 07: $597,640 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region April 07:
Santa Barbara So. Coast $1,475,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region April 07:
High Desert $317,420 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - First Quarter 07:
25 percent (Source: C.A.R.)
Mortgage rates - week ending 6/7:
30-yr. fixed: 6.53%; Fees/points: 0.4%
15-yr. fixed: 6.22%; Fees/points: 0.4%
1-yr. adjustable: 5.65%; Fees/points: 0.7%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing nearly 200,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins,
Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
Fast Facts
Calif. median home price - April 07: $597,640 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region April 07:
Santa Barbara So. Coast $1,475,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region April 07:
High Desert $317,420 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - First Quarter 07:
25 percent (Source: C.A.R.)
Mortgage rates - week ending 6/7:
30-yr. fixed: 6.53%; Fees/points: 0.4%
15-yr. fixed: 6.22%; Fees/points: 0.4%
1-yr. adjustable: 5.65%; Fees/points: 0.7%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing nearly 200,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins,
Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, June 06, 2007
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
PENDING HOME SALES INDICATE STABILIZING MARKET
CONSTRUCTION SPENDING CONTINUES SLOWDOWN FROM A YEAR AGO
CELEBRATE NATIONAL HOMEOWNERSHIP MONTH
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
PENDING HOME SALES INDICATE STABILIZING MARKET
CONSTRUCTION SPENDING CONTINUES SLOWDOWN FROM A YEAR AGO
CELEBRATE NATIONAL HOMEOWNERSHIP MONTH
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
PENDING HOME SALES INDICATE STABILIZING MARKET
While pending home sales continued to edge down this month amidst the subprime fallout, NAR expects activity in the housing market to stabilize in the near-term, according to a recent report. The Association's Pending Home Sales Index (PHSI), a forward-looking indicator that gauges home sales activity for upcoming months, declined for the second consecutive month in April, falling 10.2 percent from a year ago to a reading of 101.4. While a PHSI of 100 or more generally indicates a high level of home sales activity, the April PHSI was the lowest reading in four years. "It looks like we may be leaving a period of market disruptions, and for the past two months the pending home sales index has been similar in year-ago comparisons, which means home sales might ease but should be fairly stable in the months ahead," said NAR Senior Economist Lawrence Yun.
While pending home sales continued to edge down this month amidst the subprime fallout, NAR expects activity in the housing market to stabilize in the near-term, according to a recent report. The Association's Pending Home Sales Index (PHSI), a forward-looking indicator that gauges home sales activity for upcoming months, declined for the second consecutive month in April, falling 10.2 percent from a year ago to a reading of 101.4. While a PHSI of 100 or more generally indicates a high level of home sales activity, the April PHSI was the lowest reading in four years. "It looks like we may be leaving a period of market disruptions, and for the past two months the pending home sales index has been similar in year-ago comparisons, which means home sales might ease but should be fairly stable in the months ahead," said NAR Senior Economist Lawrence Yun.
The PHSI declined across the nation in April compared with the readings a year ago. On a regional basis, the PHSI was highest in the South, where it declined 10.4 percent to 116. In the West, the index fell 11.7 percent to 91.4. The PHSI also declined in the Midwest and Northeast regions, decreasing to 98.1 and 89.3, respectively.
http://www.realtor.org/press_room/news_releases/2007/phs_april07_pending_home_sales_stabilization.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CONSTRUCTION SPENDING CONTINUES SLOWDOWN FROM A YEAR AGO
The annual pace of construction spending slowed for the 13th consecutive month in April, falling 2 percent from a year ago to a seasonally adjusted annual rate of $1.19 trillion, according to a recent report from the U.S. Census Bureau. Construction spending totaled $345.1 billion during the first four months of 2007, down 2.5 percent from construction spending during the same period in 2006. The annual pace of total construction spending has remained above $1 trillion since July 2004.
http://www.realtor.org/press_room/news_releases/2007/phs_april07_pending_home_sales_stabilization.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CONSTRUCTION SPENDING CONTINUES SLOWDOWN FROM A YEAR AGO
The annual pace of construction spending slowed for the 13th consecutive month in April, falling 2 percent from a year ago to a seasonally adjusted annual rate of $1.19 trillion, according to a recent report from the U.S. Census Bureau. Construction spending totaled $345.1 billion during the first four months of 2007, down 2.5 percent from construction spending during the same period in 2006. The annual pace of total construction spending has remained above $1 trillion since July 2004.
Spending on residential construction in April 2007 decreased 14.1 percent from the previous year to a rate of $573.1 billion. The value of nonresidential construction activity in April rose 12.7 percent to a rate of $616.9 billion, according to the report.
http://www.census.gov/const/C30/release.pdf
http://www.census.gov/const/C30/release.pdf
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CELEBRATE NATIONAL HOMEOWNERSHIP MONTH
For the sixth consecutive year, President Bush has proclaimed June "National Homeownership Month." Throughout the month, organizations across the nation, including REALTOR® associations, will participate in activities that help raise awareness of homeownership and encourage more Americans to consider the benefits of owning their own home. To support the initiative, NAR provides REALTORS® with resources to support homeownership opportunities and strong communities. To access these materials, visit www.realtor.org/homeownership.
CELEBRATE NATIONAL HOMEOWNERSHIP MONTH
For the sixth consecutive year, President Bush has proclaimed June "National Homeownership Month." Throughout the month, organizations across the nation, including REALTOR® associations, will participate in activities that help raise awareness of homeownership and encourage more Americans to consider the benefits of owning their own home. To support the initiative, NAR provides REALTORS® with resources to support homeownership opportunities and strong communities. To access these materials, visit www.realtor.org/homeownership.
Nearly 70 percent of Americans currently own homes, and the rate of homeownership among minorities is above 50 percent. In his proclamation, President Bush stated: "During National Homeownership Month and throughout the year, I urge citizens to consider homeownership opportunities in their communities, and I applaud American homeowners for helping fuel the economy."
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - April 07: $597,640 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region April 07:
Santa Barbara So. Coast $1,475,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region April 07:
High Desert $317,420 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - First Quarter 07:
25 percent (Source: C.A.R.)
Mortgage rates - week ending 5/31:
30-yr. fixed: 6.42%; Fees/points: 0.4%
15-yr. fixed: 6.12%; Fees/points: 0.4%
1-yr. adjustable: 5.57%; Fees/points: 0.6%
(Source: Freddie Mac)
Fast Facts
Calif. median home price - April 07: $597,640 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region April 07:
Santa Barbara So. Coast $1,475,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region April 07:
High Desert $317,420 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - First Quarter 07:
25 percent (Source: C.A.R.)
Mortgage rates - week ending 5/31:
30-yr. fixed: 6.42%; Fees/points: 0.4%
15-yr. fixed: 6.12%; Fees/points: 0.4%
1-yr. adjustable: 5.57%; Fees/points: 0.6%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing nearly 200,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, May 30, 2007
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CALIFORNIA HOME SALES DECREASE 27.8 PERCENT IN APRIL
CONSUMER CONFIDENCE IMPROVES, SUGGESTS SLOW ECONOMIC GROWTH
HUD SUES CALIFORNIA HAZARD REPORTING COMPANY FOR RESPA VIOLATION
NEW HOME CONSTRUCTION CONTINUES TO DECLINE IN CALIFORNIA
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
NEW HOME CONSTRUCTION CONTINUES TO DECLINE IN CALIFORNIA
California housing starts fell for the 14th consecutive month in April 2007, declining 30.4 percent compared with the construction pace recorded one year earlier, the California Building Industry Association (CBIA) recently reported. Based on the number of building permits issued, 10,355 new housing units were started throughout the state in April, with single-family units accounting for 69.3 percent of the starts.
During the first four months of 2007, California housing starts totaled 43,418, a 28.2 percent decline compared with housing starts during the same period one year earlier. Construction activity is lagging across most of the state, with big declines in a few select areas. According to CBIA Chief Economist Alan Nevin, nearly 50 percent of this year's decline in single-family housing production stems from the Riverside/San Bernardino and Sacramento markets, while the decline in multifamily construction is in Los Angeles County and the Bay Area.
http://www.cbia.org/index.cfm?pageid=1427&preview=yes
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CALIFORNIA HOME SALES DECREASE 27.8 PERCENT IN APRIL
CONSUMER CONFIDENCE IMPROVES, SUGGESTS SLOW ECONOMIC GROWTH
HUD SUES CALIFORNIA HAZARD REPORTING COMPANY FOR RESPA VIOLATION
NEW HOME CONSTRUCTION CONTINUES TO DECLINE IN CALIFORNIA
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CALIFORNIA HOME SALES DECREASE 27.8 PERCENT IN APRIL
The median price of an existing single-family home in California increased 6.2 percent in April and sales decreased 27.8 percent compared with the same period a year ago, C.A.R. recently reported. "April sales fell in part because of tighter credit standards and growing concerns about the impact of subprime loans on the market," said C.A.R. President Colleen Badagliacco. "Throughout the state inventory levels have increased to their highest levels in recent years, giving buyers more time to view a greater variety of homes and sellers who set realistic prices an edge in the market."
According to the report, the median price of an existing, single-family detached home in California during April was $597,640, a 6.2 percent increase over the revised $562,820 median for April 2006. Also last month, closed escrow sales of existing, single-family detached homes in California totaled 373,280 at a seasonally adjusted annualized rate, down 27.8 percent compared with the sales pace recorded one year earlier and down 13.3 percent from home resale activity in March 2007.
"Although the median price of a home in California continues to rise, this reflects the fall-off in sales in the lower-priced markets of the state where new home inventories and foreclosures are competing with the existing home market," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "Fewer sales from these regions coupled with modest gains in some of the stronger coastal markets are pushing the median price for the state up slightly."
http://www.car.org/index.php?id=Mzc0ODY
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
The median price of an existing single-family home in California increased 6.2 percent in April and sales decreased 27.8 percent compared with the same period a year ago, C.A.R. recently reported. "April sales fell in part because of tighter credit standards and growing concerns about the impact of subprime loans on the market," said C.A.R. President Colleen Badagliacco. "Throughout the state inventory levels have increased to their highest levels in recent years, giving buyers more time to view a greater variety of homes and sellers who set realistic prices an edge in the market."
According to the report, the median price of an existing, single-family detached home in California during April was $597,640, a 6.2 percent increase over the revised $562,820 median for April 2006. Also last month, closed escrow sales of existing, single-family detached homes in California totaled 373,280 at a seasonally adjusted annualized rate, down 27.8 percent compared with the sales pace recorded one year earlier and down 13.3 percent from home resale activity in March 2007.
"Although the median price of a home in California continues to rise, this reflects the fall-off in sales in the lower-priced markets of the state where new home inventories and foreclosures are competing with the existing home market," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "Fewer sales from these regions coupled with modest gains in some of the stronger coastal markets are pushing the median price for the state up slightly."
http://www.car.org/index.php?id=Mzc0ODY
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CONSUMER CONFIDENCE IMPROVES, SUGGESTS SLOW ECONOMIC GROWTH
The confidence level of U.S. consumers improved this month, buoyed by a more favorable assessment of current economic conditions, according to yesterday's report from The Conference Board. Following a two-month decline, the Board's Consumer Confidence Index increased to 108 in May, up from 106.3 in April. The Present Situation and Expectations indexes also improved, rising to 136.1 and 89.2, respectively. Despite the gain in consumer confidence, "The short-term outlook remains cautious, and rising gasoline prices are having a negative impact on consumers' inflation expectations," said Lynn Franco, director of The Conference Board Consumer Research Center. "Confidence levels continue to suggest growth, albeit at a slow pace."
While Americans showed more optimism about present-day conditions this month, concerns about the job market continued. According to the report, the proportion of consumers anticipating more jobs to open up remained unchanged at 13.3 percent, and the percentage of consumers anticipating their incomes to increase in the near-term edged down to 17.7 percent from 18.4 percent in April.
http://www.conference-board.org/economics/consumerConfidence.cfm
The confidence level of U.S. consumers improved this month, buoyed by a more favorable assessment of current economic conditions, according to yesterday's report from The Conference Board. Following a two-month decline, the Board's Consumer Confidence Index increased to 108 in May, up from 106.3 in April. The Present Situation and Expectations indexes also improved, rising to 136.1 and 89.2, respectively. Despite the gain in consumer confidence, "The short-term outlook remains cautious, and rising gasoline prices are having a negative impact on consumers' inflation expectations," said Lynn Franco, director of The Conference Board Consumer Research Center. "Confidence levels continue to suggest growth, albeit at a slow pace."
While Americans showed more optimism about present-day conditions this month, concerns about the job market continued. According to the report, the proportion of consumers anticipating more jobs to open up remained unchanged at 13.3 percent, and the percentage of consumers anticipating their incomes to increase in the near-term edged down to 17.7 percent from 18.4 percent in April.
http://www.conference-board.org/economics/consumerConfidence.cfm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HUD SUES CALIFORNIA HAZARD REPORTING COMPANY FOR RESPA VIOLATION
The U.S. Dept. of Housing and Urban Development (HUD) last week brought a federal lawsuit against a natural hazard reporting company located in California under the premise that the firm paid illegal kickbacks to four real estate brokerages in exchange for referrals, the Dept. announced. The four brokerages--Realogy Corporation, NRT/Coldwell Banker Residential Brokerage Corporation, Mason-McDuffie Real Estate, and Pickford Realty Ltd.--also were named in the lawsuit.
Property I.D. Corporation and the brokerages allegedly violated the Real Estate Settlement Procedures Act (RESPA) through illegal referral arrangements and sham joint ventures that existed solely to funnel payments to the brokerages in exchange for referral business. Among the methods used to generate the illegal referrals was the use of preprinted listing contracts with Property I.D. pre-selected as the provider of the required natural hazard disclosure report. The company also paid portions of agent liability insurance when the Property I.D. hazard disclosure reports were used. The Real Estate Settlement Procedures Act (RESPA), enacted in 1974, prohibits illegal kickbacks and excessive fees in the home-buying process.
http://www.hud.gov/news/release.cfm?content=pr07-071.cfm
HUD SUES CALIFORNIA HAZARD REPORTING COMPANY FOR RESPA VIOLATION
The U.S. Dept. of Housing and Urban Development (HUD) last week brought a federal lawsuit against a natural hazard reporting company located in California under the premise that the firm paid illegal kickbacks to four real estate brokerages in exchange for referrals, the Dept. announced. The four brokerages--Realogy Corporation, NRT/Coldwell Banker Residential Brokerage Corporation, Mason-McDuffie Real Estate, and Pickford Realty Ltd.--also were named in the lawsuit.
Property I.D. Corporation and the brokerages allegedly violated the Real Estate Settlement Procedures Act (RESPA) through illegal referral arrangements and sham joint ventures that existed solely to funnel payments to the brokerages in exchange for referral business. Among the methods used to generate the illegal referrals was the use of preprinted listing contracts with Property I.D. pre-selected as the provider of the required natural hazard disclosure report. The company also paid portions of agent liability insurance when the Property I.D. hazard disclosure reports were used. The Real Estate Settlement Procedures Act (RESPA), enacted in 1974, prohibits illegal kickbacks and excessive fees in the home-buying process.
http://www.hud.gov/news/release.cfm?content=pr07-071.cfm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
NEW HOME CONSTRUCTION CONTINUES TO DECLINE IN CALIFORNIA
California housing starts fell for the 14th consecutive month in April 2007, declining 30.4 percent compared with the construction pace recorded one year earlier, the California Building Industry Association (CBIA) recently reported. Based on the number of building permits issued, 10,355 new housing units were started throughout the state in April, with single-family units accounting for 69.3 percent of the starts.
During the first four months of 2007, California housing starts totaled 43,418, a 28.2 percent decline compared with housing starts during the same period one year earlier. Construction activity is lagging across most of the state, with big declines in a few select areas. According to CBIA Chief Economist Alan Nevin, nearly 50 percent of this year's decline in single-family housing production stems from the Riverside/San Bernardino and Sacramento markets, while the decline in multifamily construction is in Los Angeles County and the Bay Area.
http://www.cbia.org/index.cfm?pageid=1427&preview=yes
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - April 07: $597,640 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region April 07:
Santa Barbara So. Coast $1,475,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region April 07:
High Desert $317,420 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - First Quarter 07:
25 percent (Source: C.A.R.)
Mortgage rates - week ending 5/24:
30-yr. fixed: 6.37%; Fees/points: 0.4%
15-yr. fixed: 6.06%; Fees/points: 0.4%
1-yr. adjustable: 5.64%; Fees/points: 0.6%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing nearly 200,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
Fast Facts
Calif. median home price - April 07: $597,640 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region April 07:
Santa Barbara So. Coast $1,475,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region April 07:
High Desert $317,420 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - First Quarter 07:
25 percent (Source: C.A.R.)
Mortgage rates - week ending 5/24:
30-yr. fixed: 6.37%; Fees/points: 0.4%
15-yr. fixed: 6.06%; Fees/points: 0.4%
1-yr. adjustable: 5.64%; Fees/points: 0.6%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing nearly 200,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, May 16, 2007
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
SUBPRIME CONCERNS CONTINUE TO AFFECT BUILDER CONFIDENCE
HUD ANNOUNCES $1.8 BILLION FOR AFFORDABLE HOUSING
FLORIDA, CALIFORNIA POST MOST NEW FORECLOSURE FILINGS
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
SUBPRIME CONCERNS CONTINUE TO AFFECT BUILDER CONFIDENCE
Builder confidence continued to diminish this month amidst concerns about subprime lending and its impact on the mortgage market, according to yesterday's report from the National Association of Home Builders (NAHB). For the third consecutive month, the Association's Housing Market Index (HMI), which gauges builders' perceptions of current and future home sales, declined three points. The HMI now stands at 30, the lowest level since September 2006. An HMI below 50 indicates more builders view sales conditions as poor versus good.
"The crisis in the subprime sector has infected other parts of the mortgage market as well as consumer psychology, and as a result the housing outlook has deteriorated," said NAHB Chief Economist David Seiders. "We're now projecting that home sales and housing production will not begin improving until late this year, and we're expecting the early stages of the subsequent recovery to be quite sluggish."
All three HMI components decreased this month. The component measuring sales expectations for the next six months declined three points to 41, while the components gauging current sales and buyer traffic decreased to 31 and 23, respectively.
http://www.nahb.org/news_details.aspx?newsID=4675&print=false
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HUD ANNOUNCES $1.8 BILLION FOR AFFORDABLE HOUSING
The U.S. Dept. of Housing and Urban Development (HUD) last week announced that communities throughout the nation will receive grants amounting to nearly $1.8 billion to help promote affordable housing and assist first-time home buyers. The funding will support HUD's HOME Investment Partnerships Program (HOME), which is designed to produce affordable housing for low-income families, and the American Dream Downpayment Initiative (ADDI), a program aimed at helping first-time buyers with their down payment and closing costs.
The additional funding for both programs was granted in order to build economically stronger communities throughout the U.S. Since the programs began, HOME has produced more than 781,000 affordable housing units in 645 different communities and ADDI has assisted 23,000 first-time home buyers.
http://www.hud.gov/news/release.cfm?content=pr07-058.cfm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
FLORIDA, CALIFORNIA POST MOST NEW FORECLOSURE FILINGS
The number of foreclosure filings across the nation exceeded 100,000 for the ninth consecutive month in April, with foreclosure activity increasing in all but 12 states, according to RealtyTrac's "April 2007 U.S. Foreclosure Market Report." Florida and California led the country with the most foreclosure filings last month, with 30,505 and 14,318 foreclosures, respectively. In California, foreclosures decreased 3 percent from the previous month but were up more than 200 percent from April 2006.
On a month-to-month basis, foreclosure activity may subside during the upcoming summer months, according to the report. However, slower home appreciation and tighter lending standards in the mortgage market are likely to push the number of defaults above last year's levels for the remainder of 2007. The national foreclosure rate in April 2007 was one new filing for every 783 households.
http://www.realtytrac.com/ContentManagement/pressrelease.aspx?ChannelID=9&ItemID=2445&accnt=64847
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - March 07: $580,090 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region March 07:
Santa Barbara So. Coast $1,200,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region March 07:
High Desert $320,830 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Fourth Quarter 06:
25 percent (Source: C.A.R.)
Mortgage rates - week ending 5/10:
30-yr. fixed: 6.15%; Fees/points: 0.5%
15-yr. fixed: 5.87%; Fees/points: 0.5%
1-yr. adjustable: 5.48%; Fees/points: 0.7%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing nearly 200,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
SUBPRIME CONCERNS CONTINUE TO AFFECT BUILDER CONFIDENCE
HUD ANNOUNCES $1.8 BILLION FOR AFFORDABLE HOUSING
FLORIDA, CALIFORNIA POST MOST NEW FORECLOSURE FILINGS
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
SUBPRIME CONCERNS CONTINUE TO AFFECT BUILDER CONFIDENCE
Builder confidence continued to diminish this month amidst concerns about subprime lending and its impact on the mortgage market, according to yesterday's report from the National Association of Home Builders (NAHB). For the third consecutive month, the Association's Housing Market Index (HMI), which gauges builders' perceptions of current and future home sales, declined three points. The HMI now stands at 30, the lowest level since September 2006. An HMI below 50 indicates more builders view sales conditions as poor versus good.
"The crisis in the subprime sector has infected other parts of the mortgage market as well as consumer psychology, and as a result the housing outlook has deteriorated," said NAHB Chief Economist David Seiders. "We're now projecting that home sales and housing production will not begin improving until late this year, and we're expecting the early stages of the subsequent recovery to be quite sluggish."
All three HMI components decreased this month. The component measuring sales expectations for the next six months declined three points to 41, while the components gauging current sales and buyer traffic decreased to 31 and 23, respectively.
http://www.nahb.org/news_details.aspx?newsID=4675&print=false
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HUD ANNOUNCES $1.8 BILLION FOR AFFORDABLE HOUSING
The U.S. Dept. of Housing and Urban Development (HUD) last week announced that communities throughout the nation will receive grants amounting to nearly $1.8 billion to help promote affordable housing and assist first-time home buyers. The funding will support HUD's HOME Investment Partnerships Program (HOME), which is designed to produce affordable housing for low-income families, and the American Dream Downpayment Initiative (ADDI), a program aimed at helping first-time buyers with their down payment and closing costs.
The additional funding for both programs was granted in order to build economically stronger communities throughout the U.S. Since the programs began, HOME has produced more than 781,000 affordable housing units in 645 different communities and ADDI has assisted 23,000 first-time home buyers.
http://www.hud.gov/news/release.cfm?content=pr07-058.cfm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
FLORIDA, CALIFORNIA POST MOST NEW FORECLOSURE FILINGS
The number of foreclosure filings across the nation exceeded 100,000 for the ninth consecutive month in April, with foreclosure activity increasing in all but 12 states, according to RealtyTrac's "April 2007 U.S. Foreclosure Market Report." Florida and California led the country with the most foreclosure filings last month, with 30,505 and 14,318 foreclosures, respectively. In California, foreclosures decreased 3 percent from the previous month but were up more than 200 percent from April 2006.
On a month-to-month basis, foreclosure activity may subside during the upcoming summer months, according to the report. However, slower home appreciation and tighter lending standards in the mortgage market are likely to push the number of defaults above last year's levels for the remainder of 2007. The national foreclosure rate in April 2007 was one new filing for every 783 households.
http://www.realtytrac.com/ContentManagement/pressrelease.aspx?ChannelID=9&ItemID=2445&accnt=64847
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - March 07: $580,090 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region March 07:
Santa Barbara So. Coast $1,200,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region March 07:
High Desert $320,830 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Fourth Quarter 06:
25 percent (Source: C.A.R.)
Mortgage rates - week ending 5/10:
30-yr. fixed: 6.15%; Fees/points: 0.5%
15-yr. fixed: 5.87%; Fees/points: 0.5%
1-yr. adjustable: 5.48%; Fees/points: 0.7%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing nearly 200,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~0
U.S. AGENCIES RELEASE REPORT ON COMPETITION IN THE REAL ESTATE INDUSTRY
The U.S. Dept. of Justice (DOJ) and Federal Trade Commission (FTC) yesterday released a joint report focused on competition in the real estate industry that covers issues such as virtual office Web sites, multiple listing services, and minimum service requirements. The report follows an October 2005 public workshop hosted by the DOJ and FTC that also addressed competition in the industry through a panel comprising traditional real estate brokers, brokers offering nontraditional business models, state regulators, and members of academia.
U.S. AGENCIES RELEASE REPORT ON COMPETITION IN THE REAL ESTATE INDUSTRY
The U.S. Dept. of Justice (DOJ) and Federal Trade Commission (FTC) yesterday released a joint report focused on competition in the real estate industry that covers issues such as virtual office Web sites, multiple listing services, and minimum service requirements. The report follows an October 2005 public workshop hosted by the DOJ and FTC that also addressed competition in the industry through a panel comprising traditional real estate brokers, brokers offering nontraditional business models, state regulators, and members of academia.
Wednesday, May 09, 2007
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
U.S. AGENCIES RELEASE REPORT ON COMPETITION IN THE REAL ESTATE INDUSTRY
FED HOLDS FUNDS RATE AT 5.25 PERCENT
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
The report concludes with several recommendations to help protect consumers from industry practices that may limit consumer choice regarding brokerage services. For instance, the DOJ and FTC recommend for state legislators and industry regulators to repeal existing minimum-service laws that limit consumer choice and avoid enacting such laws in the future; promote consumer understanding of marketplace options, including the negotiability of fees; and undertake a new study examining how commission rates and fees vary based on market conditions, home prices, and regulation. To view the report, visit http://www.usdoj.gov/atr/public/reports/223094.pdf.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
FED HOLDS FUNDS RATE AT 5.25 PERCENT
The Federal Reserve's Federal Open Market Committee today reported that moderate economic growth is likely in the coming months, despite ongoing concerns about core inflation. The Committee also announced its decision to keep the target for the federal funds rate at 5.25 percent, where is has stood since June 2006. The federal funds target rate is the interest rate charged by banks when they borrow funds "overnight" from each other. While the federal funds rate has no direct impact on other rates, such as those for mortgages, it can alter them indirectly.
FED HOLDS FUNDS RATE AT 5.25 PERCENT
The Federal Reserve's Federal Open Market Committee today reported that moderate economic growth is likely in the coming months, despite ongoing concerns about core inflation. The Committee also announced its decision to keep the target for the federal funds rate at 5.25 percent, where is has stood since June 2006. The federal funds target rate is the interest rate charged by banks when they borrow funds "overnight" from each other. While the federal funds rate has no direct impact on other rates, such as those for mortgages, it can alter them indirectly.
In a prepared statement, the Fed acknowledged slower economic growth in recent months, including ongoing adjustments in the housing market. Should inflation fail to moderate as expected, the Committee may raise the Fed Funds rate as necessary.
http://www.federalreserve.gov/boarddocs/press/monetary/2007/20070509/
Fast Facts
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Calif. median home price - March 07: $580,090 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region March 07:
Santa Barbara So. Coast $1,200,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region March 07:
High Desert $320,830 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Fourth Quarter 06:
25 percent (Source: C.A.R.)
Mortgage rates - week ending 5/3:
30-yr. fixed: 6.16%; Fees/points: 0.5%
15-yr. fixed: 5.87%; Fees/points: 0.5%
1-yr. adjustable: 5.42%; Fees/points: 0.7%
(Source: Freddie Mac)
http://www.federalreserve.gov/boarddocs/press/monetary/2007/20070509/
Fast Facts
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Calif. median home price - March 07: $580,090 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region March 07:
Santa Barbara So. Coast $1,200,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region March 07:
High Desert $320,830 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Fourth Quarter 06:
25 percent (Source: C.A.R.)
Mortgage rates - week ending 5/3:
30-yr. fixed: 6.16%; Fees/points: 0.5%
15-yr. fixed: 5.87%; Fees/points: 0.5%
1-yr. adjustable: 5.42%; Fees/points: 0.7%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing nearly 200,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, May 02, 2007
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
HOUSING STARTS DECLINE AS BUILDERS REVERT TO "JUST IN TIME" APPROACH
PENDING HOME SALES INDEX HITS LOWEST LEVEL IN FOUR YEARS
EDUCATED AMERICAN ADULTS MORE LIKELY TO VISIT WIKIPEDIA
MAY "CALIFORNIA REAL ESTATE" MAGAZINE HIGHLIGHTS
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HOUSING STARTS DECLINE AS BUILDERS REVERT TO "JUST IN TIME" APPROACH
Housing starts in the Golden State continue to lag behind last year's production levels as the state's home builders reduce existing inventory and follow a "just in time" building strategy to meet demand, according to a recent report from the California Building Industry Association (CBIA). While housing starts were up 38.8 percent in March compared with February, total production fell 22.2 percent from a year ago. During the first three months of the year, builders started 32,646 new housing units, down 28 percent from the same period last year.
In a separate report, the U.S. Census Bureau also released data showing a similar decline in construction activity nationwide. The annual pace of construction spending slowed for the 12th consecutive month in March, falling 2 percent from a year ago to a seasonally adjusted annual rate of $1.19 trillion. Residential construction spending declined 14.2 percent to a rate of $577.8 billion, while the value of nonresidential construction activity rose 13.2 percent to a rate of $610 billion, according to the report.
http://www.cbia.org/index.cfm?pageid=1419&preview=yes
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
PENDING HOME SALES INDEX HITS LOWEST LEVEL IN FOUR YEARS
Activity in the housing market will remain slow during second quarter as consumers continue to react to tighter lending standards and a decline in subprime lending, according to a recent report from NAR. The Association's Pending Home Sales Index (PHSI), a forward-looking indicator that gauges home sales activity for upcoming months, continued to decline in March, falling 10.5 percent from a year ago to a reading of 104.3. While a PHSI of 100 or more generally indicates a high level of home sales activity, the March PHSI was the lowest reading since March 2003. Despite the decline, NAR economists expect home sales to pick up during the second half of the year.
The PHSI declined across the nation in March compared with the readings a year ago. On a regional basis, the PHSI was highest in the South, where it declined 10.6 percent to 115.2. In the West, the index fell 8.6 percent to 104. The PHSI also declined in the Midwest and Northeast regions, decreasing to 95.9 and 94.2, respectively.
http://www.realtor.org/press_room/news_releases/2007/phs_mar07_pending_home_sales.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
EDUCATED AMERICAN ADULTS MORE LIKELY TO VISIT WIKIPEDIA
Wikipedia, a user-generated online encyclopedia, has gained popularity with online American adults, especially those who are well-educated, according to a recent study by the Pew Internet & American Life Project. Attracted by the breath of articles available as well as the convenience of using Wikipedia to conduct online research, more than one-third of online adults consult with Wikipedia. According to the study, despite claims that the content posted on the site is unreliable, Wikipedia is most popular among adults with higher levels of education. More than 50 percent of college graduates use the site, compared with 22 percent of those with a high school diploma.
The study also found that on a typical day, the use of Wikipedia has become more popular than other online activities, including online purchasing and dating Web sites. Eight percent of online Americans visited Wikipedia on a typical day during the first few months of 2007, according to the report.
http://www.pewinternet.org/pdfs/PIP_Wikipedia07.pdf
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - March 07: $580,090 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region March 07:
Santa Barbara So. Coast $1,200,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region March 07:
High Desert $320,830 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Fourth Quarter 06:
25 percent (Source: C.A.R.)
Mortgage rates - week ending 4/26:
30-yr. fixed: 6.16%; Fees/points: 0.5%
15-yr. fixed: 5.87%; Fees/points: 0.5%
1-yr. adjustable: 5.43%; Fees/points: 0.7%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing nearly 200,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, April 25, 2007
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® and David Breidenbach, www.BreidyPropertiesInc.com, 619-888-3322
RISING ENERGY COSTS HELP ERODE CONSUMER CONFIDENCE
C.A.R. REPORTS HOME SALES DECREASE 20.8 PERCENT IN MARCH
FORECLOSURE ACTIVITY IN THE GOLDEN STATE HITS 10-YEAR HIGH
NEW LEADING INDICATOR SUGGESTS DIMINISHED REMODELING ACTIVITY IN 2007
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
RISING ENERGY COSTS HELP ERODE CONSUMER CONFIDENCE
For the second consecutive month, the confidence level of the nation's consumers took a downward turn in April, according to yesterday's report from The Conference Board. With rising gas prices dampening consumers' short-term outlook, the organization's Consumer Confidence Index declined to 104 (1985=100) in April, down from 108.2 in March. Also this month, the Present Situation Index decreased for the first time in six months, falling to 131.3, while the Expectations Index declined to 85.8.
Wednesday, April 25, 2007
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® and David Breidenbach, www.BreidyPropertiesInc.com, 619-888-3322
RISING ENERGY COSTS HELP ERODE CONSUMER CONFIDENCE
C.A.R. REPORTS HOME SALES DECREASE 20.8 PERCENT IN MARCH
FORECLOSURE ACTIVITY IN THE GOLDEN STATE HITS 10-YEAR HIGH
NEW LEADING INDICATOR SUGGESTS DIMINISHED REMODELING ACTIVITY IN 2007
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
RISING ENERGY COSTS HELP ERODE CONSUMER CONFIDENCE
For the second consecutive month, the confidence level of the nation's consumers took a downward turn in April, according to yesterday's report from The Conference Board. With rising gas prices dampening consumers' short-term outlook, the organization's Consumer Confidence Index declined to 104 (1985=100) in April, down from 108.2 in March. Also this month, the Present Situation Index decreased for the first time in six months, falling to 131.3, while the Expectations Index declined to 85.8.
According to the report, consumers are less positive about current conditions and the labor market. The percentage of consumers who claim jobs are "hard to get" increased to 20.4 percent in April, while those claiming current economic conditions are "good" declined to 26.5 percent. "Unlike the decline in March, which was solely the result of apprehension about the short-term outlook, this month's decline was a combination of weakening expectations and a less favorable assessment of present-day conditions. The decline in the Present Situation Index â€" the first decline in six months â€" warrants monitoring in the months ahead, as further declines would suggest a softening in growth," said Lynn Franco, director of The Conference Board Consumer Research Center.
http://www.conference-board.org/economics/ConsumerConfidence.cfm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. REPORTS HOME SALES DECREASE 20.8 PERCENT IN MARCH
The median price of an existing single-family home in California increased 3.2 percent in March and sales decreased 20.8 percent compared with the same period a year ago, C.A.R. recently reported. "March sales fell below the levels of recent months in reaction to an uptick in mortgage rates earlier this year along with tighter underwriting standards. The year-to-year decline in March was larger than in recent months in part because sales in March 2006 were the strongest in all of last year," said C.A.R. President Colleen Badagliacco. "Moreover, recent news regarding foreclosures and the subprime situation had an adverse impact on the market psychology of many buyers, leading some to delay their home-purchase decisions."
http://www.conference-board.org/economics/ConsumerConfidence.cfm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. REPORTS HOME SALES DECREASE 20.8 PERCENT IN MARCH
The median price of an existing single-family home in California increased 3.2 percent in March and sales decreased 20.8 percent compared with the same period a year ago, C.A.R. recently reported. "March sales fell below the levels of recent months in reaction to an uptick in mortgage rates earlier this year along with tighter underwriting standards. The year-to-year decline in March was larger than in recent months in part because sales in March 2006 were the strongest in all of last year," said C.A.R. President Colleen Badagliacco. "Moreover, recent news regarding foreclosures and the subprime situation had an adverse impact on the market psychology of many buyers, leading some to delay their home-purchase decisions."
According to the report, the median price of an existing, single-family detached home in California during March was $580,090, a 3.2 percent increase over the $562,130 median for March 2006. Also last month, closed escrow sales of existing, single-family detached homes in California totaled 427,110 at a seasonally adjusted annualized rate, down 20.8 percent compared with the sales pace recorded one year earlier.
http://www.car.org/index.php?id=MzcyNDY
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
FORECLOSURE ACTIVITY IN THE GOLDEN STATE HITS 10-YEAR HIGH
The number of mortgage default notices sent to California homeowners increased during the first quarter of 2007, rising 23.1 percent from the fourth quarter of 2006 to the highest level since the second quarter of 1997, according to a recent report by DataQuick Information Systems. Lending institutions sent default notices to 46,760 homeowners between Jan. 1 and March 31, up 148 percent when compared with the 18,856 default notices sent during the same period one year earlier. The median age of the loans that went into default last quarter was 15 months.
http://www.car.org/index.php?id=MzcyNDY
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
FORECLOSURE ACTIVITY IN THE GOLDEN STATE HITS 10-YEAR HIGH
The number of mortgage default notices sent to California homeowners increased during the first quarter of 2007, rising 23.1 percent from the fourth quarter of 2006 to the highest level since the second quarter of 1997, according to a recent report by DataQuick Information Systems. Lending institutions sent default notices to 46,760 homeowners between Jan. 1 and March 31, up 148 percent when compared with the 18,856 default notices sent during the same period one year earlier. The median age of the loans that went into default last quarter was 15 months.
Declining home appreciation rates and mortgage rate resets impacted the rise in default activity during the first quarter, according to the report. While all regions of California experienced an increase in foreclosures, mortgage loans were least likely to go into default in the Marin, San Francisco, and San Mateo counties and most likely in Sacramento, Riverside, and San Joaquin counties.
http://dqnews.com/RRMain.shtm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
NEW LEADING INDICATOR SUGGESTS DIMINISHED REMODELING ACTIVITY IN 2007
Home improvement spending is expected to grow at a slower pace for the remainder of 2007, following three years of double-digit growth, according to a recent report from Harvard University's Joint Center for Housing Studies. The Center last week released a new leading indicator for the remodeling industry that is designed to estimate national remodeling activity for the coming three quarters. The new index, called the Leading Indicator for Remodeling Activity (LIRA), projects home improvement spending to grow 3.6 percent for the remainder of 2007, with home improvement expenditures totaling $191.4 billion.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
NEW LEADING INDICATOR SUGGESTS DIMINISHED REMODELING ACTIVITY IN 2007
Home improvement spending is expected to grow at a slower pace for the remainder of 2007, following three years of double-digit growth, according to a recent report from Harvard University's Joint Center for Housing Studies. The Center last week released a new leading indicator for the remodeling industry that is designed to estimate national remodeling activity for the coming three quarters. The new index, called the Leading Indicator for Remodeling Activity (LIRA), projects home improvement spending to grow 3.6 percent for the remainder of 2007, with home improvement expenditures totaling $191.4 billion.
According to the report, the slowdown in existing home sales has contributed to the decline in remodeling activity, though recent increases in energy costs may prompt consumers to undertake energy efficiency improvements this year. "While remodeling activity continues to weaken, the easing should not be nearly as severe as that anticipated for the home building industry," said Kermit Baker, director of the Remodeling Futures Program of the Joint Center. "Once home sales and prices begin to stabilize, owners will resume their home improvement plans."
http://www.jchs.harvard.edu/media/lira/lira_07_1.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - March 07: $580,090 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region March 07:
Santa Barbara So. Coast $1,200,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region March 07:
High Desert $320,830 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Fourth Quarter 06:
25 percent (Source: C.A.R.)
Mortgage rates - week ending 4/19:
30-yr. fixed: 6.17%; Fees/points: 0.5%
15-yr. fixed: 5.89%; Fees/points: 0.5%
1-yr. adjustable: 5.45%; Fees/points: 0.7%
(Source: Freddie Mac)
http://www.jchs.harvard.edu/media/lira/lira_07_1.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - March 07: $580,090 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region March 07:
Santa Barbara So. Coast $1,200,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region March 07:
High Desert $320,830 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Fourth Quarter 06:
25 percent (Source: C.A.R.)
Mortgage rates - week ending 4/19:
30-yr. fixed: 6.17%; Fees/points: 0.5%
15-yr. fixed: 5.89%; Fees/points: 0.5%
1-yr. adjustable: 5.45%; Fees/points: 0.7%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing nearly 200,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, April 18, 2007
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® and David Breidenbach, 619-888-3322
L.A. TIMES OPINES IN FAVOR OF SB670; HEARING POSTPONED TO APRIL 24
SUBPRIME CONCERNS CONTINUE TO AFFECT BUILDER CONFIDENCE
DRE CLARIFIES MORTGAGE BROKER'S DUTY TO EXPLAIN LOAN TERMS
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
L.A. TIMES OPINES IN FAVOR OF SB670; HEARING POSTPONED TO APRIL 24
SB 670 (Correa), C.A.R.'s sponsored legislation that will stop the future imposition of private transfer taxes, was scheduled to be voted on yesterday by the Senate Transportation and Housing Committee. Sen. Correa and C.A.R., in deference to Sen. Lowenthal, chair of the committee, agreed to wait a week for the bill to be considered for a vote to allow adequate time to review amendments to the legislation suggested by committee staff. SB 670 now will be considered for a vote on Tuesday, April 24.
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 200,000 REALTORS® statewide.
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® and David Breidenbach, 619-888-3322
L.A. TIMES OPINES IN FAVOR OF SB670; HEARING POSTPONED TO APRIL 24
SUBPRIME CONCERNS CONTINUE TO AFFECT BUILDER CONFIDENCE
DRE CLARIFIES MORTGAGE BROKER'S DUTY TO EXPLAIN LOAN TERMS
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
L.A. TIMES OPINES IN FAVOR OF SB670; HEARING POSTPONED TO APRIL 24
SB 670 (Correa), C.A.R.'s sponsored legislation that will stop the future imposition of private transfer taxes, was scheduled to be voted on yesterday by the Senate Transportation and Housing Committee. Sen. Correa and C.A.R., in deference to Sen. Lowenthal, chair of the committee, agreed to wait a week for the bill to be considered for a vote to allow adequate time to review amendments to the legislation suggested by committee staff. SB 670 now will be considered for a vote on Tuesday, April 24.
On Monday, April 16, the "Los Angeles Times" became the latest newspaper to publish an editorial supporting SB 670. Calling private transfer taxes a "costly clause" the Times said, "State lawmakers should put an end to a perpetual fee that can snowball each time a property is sold."
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
SUBPRIME CONCERNS CONTINUE TO AFFECT BUILDER CONFIDENCE
Increased sales cancellations resulting from rising concerns about the subprime mortgage market continue to lower the confidence level of the nation's home builders, which declined for the second consecutive month in April, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The seasonally adjusted HMI stands at 33 this month, down three points from March and down 18 points from a year ago. The HMI has remained between 30 and 39 since July 2006. An HMI below 50 indicates more builders view sales conditions as poor versus good.
SUBPRIME CONCERNS CONTINUE TO AFFECT BUILDER CONFIDENCE
Increased sales cancellations resulting from rising concerns about the subprime mortgage market continue to lower the confidence level of the nation's home builders, which declined for the second consecutive month in April, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The seasonally adjusted HMI stands at 33 this month, down three points from March and down 18 points from a year ago. The HMI has remained between 30 and 39 since July 2006. An HMI below 50 indicates more builders view sales conditions as poor versus good.
"The tightening of mortgage lending standards in connection with the subprime crisis has shaken the confidence of both consumers and builders," said NAHB Chief Economist David Seiders. "While we still expect to see some improvements in housing market activity beginning later this year, the downside risks and uncertainties surrounding that forecast are considerable."
All three HMI components decreased this month. The component measuring sales expectations for the next six months declined six points to 44, while the components gauging current sales and buyer traffic decreased to 33 and 27, respectively. Builder confidence declined throughout the country in April, and the HMI in the West posted a two-point decline to 35.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
DRE CLARIFIES MORTGAGE BROKER'S DUTY TO EXPLAIN LOAN TERMS
The California Department of Real Estate (DRE) this week revised a recent article in its "Real Estate Bulleti"n to clarify that mortgage brokers, not real estate brokers, are obligated to discuss loan terms with their clients. Prior to the revision, the article "Understanding Loan Terms is Essential to Borrowers" intimated that buyers' agents have a fiduciary duty to completely explain payment option ARMs and similar loan products to their clients. C.A.R. contacted the DRE to raise concern with this position, and the DRE revised its article accordingly. In the revised version released on April 12, 2007, the DRE clarified that it "is the fiduciary duty of each licensee who represents the borrower in obtaining a loan to completely explain the terms and discuss the relative merits and risks of these loan products well before the point of signing loan documents."
DRE CLARIFIES MORTGAGE BROKER'S DUTY TO EXPLAIN LOAN TERMS
The California Department of Real Estate (DRE) this week revised a recent article in its "Real Estate Bulleti"n to clarify that mortgage brokers, not real estate brokers, are obligated to discuss loan terms with their clients. Prior to the revision, the article "Understanding Loan Terms is Essential to Borrowers" intimated that buyers' agents have a fiduciary duty to completely explain payment option ARMs and similar loan products to their clients. C.A.R. contacted the DRE to raise concern with this position, and the DRE revised its article accordingly. In the revised version released on April 12, 2007, the DRE clarified that it "is the fiduciary duty of each licensee who represents the borrower in obtaining a loan to completely explain the terms and discuss the relative merits and risks of these loan products well before the point of signing loan documents."
Also in the previous version of this article, the DRE stated that a buyer's agent "should be aware of the type of loan being used to finance the purchase," and for payment option ARMs or similar loans, "the licensee should confirm that all of the terms and possible effects (both positive and negative) have been explained by the mortgage broker or lender." These statements have now been deleted from the article by the DRE. To view the "Real Estate Bulletin," visit http://www.dre.ca.gov/pdf_docs/rebSpring07.pdf.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price -
February 07: $564,700
(Source: C.A.R.)
Calif. highest median home price by C.A.R. region
February 07: Santa Barbara So. Coast $1,000,000
(Source: C.A.R.)
Calif. lowest median home price by C.A.R. region
February 07: High Desert $319,860 (
Source: C.A.R.)
Calif. First-time Buyer Affordability Index -
Fourth Quarter 06: 25 percent
(Source: C.A.R.)
Mortgage rates - week ending 4/12:
30-yr. fixed: 6.22%; Fees/points: 0.4%
15-yr. fixed: 5.9%; Fees/points: 0.4%
1-yr. adjustable: 5.47%; Fees/points: 0.5%
(Source: Freddie Mac)
Fast Facts
Calif. median home price -
February 07: $564,700
(Source: C.A.R.)
Calif. highest median home price by C.A.R. region
February 07: Santa Barbara So. Coast $1,000,000
(Source: C.A.R.)
Calif. lowest median home price by C.A.R. region
February 07: High Desert $319,860 (
Source: C.A.R.)
Calif. First-time Buyer Affordability Index -
Fourth Quarter 06: 25 percent
(Source: C.A.R.)
Mortgage rates - week ending 4/12:
30-yr. fixed: 6.22%; Fees/points: 0.4%
15-yr. fixed: 5.9%; Fees/points: 0.4%
1-yr. adjustable: 5.47%; Fees/points: 0.5%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 200,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins,
Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, April 11, 2007
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
HELP PASS C.A.R.-SPONSORED BILL TO STOP PRIVATE TRANSFER TAXES
NAR FORECAST: TIGHTER LENDING STANDARDS WILL SLOW HOUSING RECOVERY
FASTEST-GROWING METRO AREAS CONCENTRATED IN WEST AND SOUTH
SPF COMMITTEE READING RECOMMENDATIONS
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HELP PASS C.A.R.-SPONSORED BILL TO STOP PRIVATE TRANSFER TAXES
C.A.R. is sponsoring SB 670 (Correa), "Private Transfer Tax Prohibition," to prevent the imposition of point-of-sale private transfer taxes, which add to the cost of owning a home. Because of a loophole in existing law, developers legally can impose private transfer taxes on home buyers at the time of purchase, with no oversight from government, no accountability on how the money is spent, and no limit on who can impose the tax or how many private transfer taxes can be added to a home when it's sold. While the developers currently employing this scheme try to define it as a mitigation fee, implying that the funds will always improve the property or the development, this is simply not the case. SB 670 is scheduled to be heard by the California Senate Transportation and Housing Committee on April 17.
On Monday, April 9, C.A.R. Governmental Affairs sent a "Red Alert" to REALTORS® who live in districts represented by the following state senators: Senator Ellen Corbett (Bay East, Santa Clara County AORs); Senator Joe Simitian (San Mateo County AOR); Senator Roy Ashburn (Bakersfield and Orange Belt AORs);Senator Gil Cedillo (Greater Los Angeles/Beverly Hills AOR); Senator Alan Lowenthal (Pacific West and Downey AORs); Senator Bob Dutton (Big Bear, East Valley and Inland Valleys AORs); Senator Christine Kehoe (San Diego AOR); Senator Jenny Oropeza (South Bay); and Senator Tom Torlakson (Contra Costa and West Contra Costa).
If you received the Red Alert or you live in one of these districts, please call (800) 961-3302 and enter your NRDS ID number. The simplest way to find your nine-digit NRDS ID is to log on to C.A.R. Online (www.car.org) and click on "Sign In," located at the top of the screen. The sign-in box that appears gives you the option to search for your member number by first and last name. If you still have trouble determining your unique ID, you also can look at the address label of your "California Real Estate" magazine; the nine digits located above your name make up your NRDS number. Once you have entered your NRDS ID number, follow the prompts to be connected to your state senator office and leave a message encouraging them to vote "yes" on SB 670.
http://www.car.org/index.php?id=MzcyMjQ
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
NAR FORECAST: TIGHTER LENDING STANDARDS WILL SLOW HOUSING RECOVERY
The push for higher loan standards may slow home sales in the coming months, while median prices will remain flat, according to NAR's most recent forecast. "Tighter lending standards will dampen home sales a bit, but by less than a couple of percentage points from initial projections," said NAR Chief Economist David Lereah. Existing-home sales are projected to total 6.34 million nationwide in 2007, while new-home sales are forecasted at 904,000, down from 1.05 million in 2006. The national median existing-home price is expected to decline 0.7 percent this year to $220,300.
Changes in lending standards will lead to a healthier housing market, according to the report. "We want people to be able to stay in their homes with mortgage terms they understand and can handle," said Lereah. In California, C.A.R. is projecting existing-home sales to decrease 7 percent to 443,900 in 2007, down from 477,400 in 2006. Additionally, the median price of an existing single-family home is expected to drop 2 percent to $550,000 compared with $556,600 last year.
http://www.realtor.org/press_room/news_releases/2007/april_forecast_tighter_lending_standards_good.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
FASTEST-GROWING METRO AREAS CONCENTRATED IN WEST AND SOUTH
All but two of the nation's 50 fastest-growing metropolitan areas between April 1, 2000, and July 1, 2006, are located in West and South regions, according to a recent report from the U.S. Census Bureau. St. George, Utah, was the fastest-growing metro area in the U.S., experiencing nearly 40 percent growth during the six-year period, according to the report. In California, nine metro areas were among the top 50 list, including Riverside-San Bernardino-Ontario (23.7 percent), Stockton (19.4 percent), Madera (18.9 percent), Bakersfield (17.9), Merced (16.7 percent), Yuba City (16.3 percent), Sacramento-Arden-Roseville (15 percent), Modesto (14.6 percent), and Visalia-Porterville (14.1 percent).
With 13 million residents, the Los Angeles metropolitan continues to be the second most populous metro area in the nation, according to the report. The Los Angeles-Long Beach-Santa Ana region gained more than 584,500 people during the six-year period between April 1, 2000, and July 1, 2006.
http://www.census.gov/Press-Release/www/releases/archives/population/009865.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - February 07: $564,700 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region February 07:
Santa Barbara So. Coast $1,000,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region February 07:
High Desert $319,860 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Fourth Quarter 06:
25 percent (Source: C.A.R.)
Mortgage rates - week ending 4/5:
30-yr. fixed: 6.17%; Fees/points: 0.4%
15-yr. fixed: 5.87%; Fees/points: 0.5%
1-yr. adjustable: 5.44%; Fees/points: 0.6%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 200,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Wednesday, April 11, 2007
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
HELP PASS C.A.R.-SPONSORED BILL TO STOP PRIVATE TRANSFER TAXES
NAR FORECAST: TIGHTER LENDING STANDARDS WILL SLOW HOUSING RECOVERY
FASTEST-GROWING METRO AREAS CONCENTRATED IN WEST AND SOUTH
SPF COMMITTEE READING RECOMMENDATIONS
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HELP PASS C.A.R.-SPONSORED BILL TO STOP PRIVATE TRANSFER TAXES
C.A.R. is sponsoring SB 670 (Correa), "Private Transfer Tax Prohibition," to prevent the imposition of point-of-sale private transfer taxes, which add to the cost of owning a home. Because of a loophole in existing law, developers legally can impose private transfer taxes on home buyers at the time of purchase, with no oversight from government, no accountability on how the money is spent, and no limit on who can impose the tax or how many private transfer taxes can be added to a home when it's sold. While the developers currently employing this scheme try to define it as a mitigation fee, implying that the funds will always improve the property or the development, this is simply not the case. SB 670 is scheduled to be heard by the California Senate Transportation and Housing Committee on April 17.
On Monday, April 9, C.A.R. Governmental Affairs sent a "Red Alert" to REALTORS® who live in districts represented by the following state senators: Senator Ellen Corbett (Bay East, Santa Clara County AORs); Senator Joe Simitian (San Mateo County AOR); Senator Roy Ashburn (Bakersfield and Orange Belt AORs);Senator Gil Cedillo (Greater Los Angeles/Beverly Hills AOR); Senator Alan Lowenthal (Pacific West and Downey AORs); Senator Bob Dutton (Big Bear, East Valley and Inland Valleys AORs); Senator Christine Kehoe (San Diego AOR); Senator Jenny Oropeza (South Bay); and Senator Tom Torlakson (Contra Costa and West Contra Costa).
If you received the Red Alert or you live in one of these districts, please call (800) 961-3302 and enter your NRDS ID number. The simplest way to find your nine-digit NRDS ID is to log on to C.A.R. Online (www.car.org) and click on "Sign In," located at the top of the screen. The sign-in box that appears gives you the option to search for your member number by first and last name. If you still have trouble determining your unique ID, you also can look at the address label of your "California Real Estate" magazine; the nine digits located above your name make up your NRDS number. Once you have entered your NRDS ID number, follow the prompts to be connected to your state senator office and leave a message encouraging them to vote "yes" on SB 670.
http://www.car.org/index.php?id=MzcyMjQ
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
NAR FORECAST: TIGHTER LENDING STANDARDS WILL SLOW HOUSING RECOVERY
The push for higher loan standards may slow home sales in the coming months, while median prices will remain flat, according to NAR's most recent forecast. "Tighter lending standards will dampen home sales a bit, but by less than a couple of percentage points from initial projections," said NAR Chief Economist David Lereah. Existing-home sales are projected to total 6.34 million nationwide in 2007, while new-home sales are forecasted at 904,000, down from 1.05 million in 2006. The national median existing-home price is expected to decline 0.7 percent this year to $220,300.
Changes in lending standards will lead to a healthier housing market, according to the report. "We want people to be able to stay in their homes with mortgage terms they understand and can handle," said Lereah. In California, C.A.R. is projecting existing-home sales to decrease 7 percent to 443,900 in 2007, down from 477,400 in 2006. Additionally, the median price of an existing single-family home is expected to drop 2 percent to $550,000 compared with $556,600 last year.
http://www.realtor.org/press_room/news_releases/2007/april_forecast_tighter_lending_standards_good.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
FASTEST-GROWING METRO AREAS CONCENTRATED IN WEST AND SOUTH
All but two of the nation's 50 fastest-growing metropolitan areas between April 1, 2000, and July 1, 2006, are located in West and South regions, according to a recent report from the U.S. Census Bureau. St. George, Utah, was the fastest-growing metro area in the U.S., experiencing nearly 40 percent growth during the six-year period, according to the report. In California, nine metro areas were among the top 50 list, including Riverside-San Bernardino-Ontario (23.7 percent), Stockton (19.4 percent), Madera (18.9 percent), Bakersfield (17.9), Merced (16.7 percent), Yuba City (16.3 percent), Sacramento-Arden-Roseville (15 percent), Modesto (14.6 percent), and Visalia-Porterville (14.1 percent).
With 13 million residents, the Los Angeles metropolitan continues to be the second most populous metro area in the nation, according to the report. The Los Angeles-Long Beach-Santa Ana region gained more than 584,500 people during the six-year period between April 1, 2000, and July 1, 2006.
http://www.census.gov/Press-Release/www/releases/archives/population/009865.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - February 07: $564,700 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region February 07:
Santa Barbara So. Coast $1,000,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region February 07:
High Desert $319,860 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Fourth Quarter 06:
25 percent (Source: C.A.R.)
Mortgage rates - week ending 4/5:
30-yr. fixed: 6.17%; Fees/points: 0.4%
15-yr. fixed: 5.87%; Fees/points: 0.5%
1-yr. adjustable: 5.44%; Fees/points: 0.6%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 200,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, April 04, 2007
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
HOUSING STARTS, CONSTRUCTION SPENDING DECLINE IN FEBRUARY
WINTER WEATHER MAY DAMPEN APRIL HOME SALES
C.A.R. CONTINUES PUSH TO PROTECT CALIFORNIANS FROM PRIVATE TRANSFER TAXES
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HOUSING STARTS, CONSTRUCTION SPENDING DECLINE IN FEBRUARY
California's home builders continued to scale back on production in February, citing an effort to reduce existing inventory, according to a recent report from the California Building Industry Association (CBIA). In February, builders started just 9,325 new housing units, down 6 percent from January and down 42 percent from a year ago. Throughout the state, single-family homes accounted for 67 percent of the starts, with the Riverside-San Bernardino-Ontario and Sacramento-Arden-Roseville regions reporting the highest number of single-family starts.
In a separate report, the U.S. Census Bureau also released data showing a similar decline in construction activity nationwide. The annual pace of construction spending slowed for the 11th consecutive month in February, falling 2.4 percent from a year ago to a seasonally adjusted annual rate of $1.17 trillion. Residential construction spending declined 15 percent to a rate of $570.9 billion, while the value of nonresidential construction activity rose 13.6 percent to a rate of $599.9 billion, according to the report.
http://www.cbia.org/index.cfm?pageid=1409&preview=yes
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
WINTER WEATHER MAY DAMPEN APRIL HOME SALES
Inclement weather in many parts of the country continues to impact the Pending Home Sales Index (PHSI), a forward-looking indicator developed by NAR to gauge home sales activity for upcoming months, according to a recent report. In February, the PHSI stood at 109.3, up 0.7 percent from January's revised reading of 108.5 and down 8.5 percent from a year ago. A PHSI of 100 or more generally indicates a high level of home sales activity
"If it wasn't for the unusually bad weather in February, we'd be seeing a better performance in pending home sales," said NAR Chief Economist David Lereah. "We also may be seeing some fallout from a decline in subprime lending, but a slight improvement in the more volatile month-to-month index is encouraging-the data suggest an underlying stabilization is taking place in the housing market."
The PHSI declined across the nation in February compared with the readings a year ago. On a regional basis, the PHSI was highest in the South, where it declined 8 percent to 121.9. In the West, the index fell 8.2 percent to 104.1. The PHSI also declined in the Midwest and Northeast regions, decreasing to 103 and 99.1, respectively.
http://www.realtor.org/press_room/news_releases/2007/phs_feb07_show_effects_of_weather.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. CONTINUES PUSH TO PROTECT CALIFORNIANS FROM PRIVATE TRANSFER TAXES
Because of a loophole in existing law, developers legally can impose private transfer taxes on home buyers at the time of purchase, with no oversight from government, no accountability on how the money is spent, and no limit on who can impose the tax or how many private transfer taxes can be added to a home when it's sold. Earlier this year, C.A.R. announced its sponsorship of SB 670 (Correa), "Private Transfer Tax Prohibition," to eliminate this unfair tax on Californians. The bill is scheduled to be heard by the California Senate Transportation and Housing Committee on April 17.
Last month, the "Orange County Register" published an editorial supporting SB 670. Titled "Private tax both wrong and sneaky - Homebuyers get ambushed at closing by a builder levy to fund whatever it wants," the March 2 editorial characterized private transfer taxes as "a scheme by builders to surreptitiously offload their costs to buyers (and) encumber future buyers." A second opinion piece published on March 11 also supported the bill, stating "Republicans, who hate tax increases, and Democrats, who often complain about corporate profiteering and a lack of affordable housing, ought to quickly make this tax disappear."
top
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - February 07: $564,700 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region February 07:
Santa Barbara So. Coast $1,000,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region February 07:
High Desert $319,860 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Fourth Quarter 06:
25 percent (Source: C.A.R.)
Mortgage rates - week ending 3/29:
30-yr. fixed: 6.16%; Fees/points: 0.4%
15-yr. fixed: 5.86%; Fees/points: 0.4%
1-yr. adjustable: 5.43%; Fees/points: 0.6%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 200,000 REALTORS® statewide.
Edited by Mark Giberson,and Amanda Hopkins,
Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
Wednesday, April 04, 2007
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
HOUSING STARTS, CONSTRUCTION SPENDING DECLINE IN FEBRUARY
WINTER WEATHER MAY DAMPEN APRIL HOME SALES
C.A.R. CONTINUES PUSH TO PROTECT CALIFORNIANS FROM PRIVATE TRANSFER TAXES
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HOUSING STARTS, CONSTRUCTION SPENDING DECLINE IN FEBRUARY
California's home builders continued to scale back on production in February, citing an effort to reduce existing inventory, according to a recent report from the California Building Industry Association (CBIA). In February, builders started just 9,325 new housing units, down 6 percent from January and down 42 percent from a year ago. Throughout the state, single-family homes accounted for 67 percent of the starts, with the Riverside-San Bernardino-Ontario and Sacramento-Arden-Roseville regions reporting the highest number of single-family starts.
In a separate report, the U.S. Census Bureau also released data showing a similar decline in construction activity nationwide. The annual pace of construction spending slowed for the 11th consecutive month in February, falling 2.4 percent from a year ago to a seasonally adjusted annual rate of $1.17 trillion. Residential construction spending declined 15 percent to a rate of $570.9 billion, while the value of nonresidential construction activity rose 13.6 percent to a rate of $599.9 billion, according to the report.
http://www.cbia.org/index.cfm?pageid=1409&preview=yes
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
WINTER WEATHER MAY DAMPEN APRIL HOME SALES
Inclement weather in many parts of the country continues to impact the Pending Home Sales Index (PHSI), a forward-looking indicator developed by NAR to gauge home sales activity for upcoming months, according to a recent report. In February, the PHSI stood at 109.3, up 0.7 percent from January's revised reading of 108.5 and down 8.5 percent from a year ago. A PHSI of 100 or more generally indicates a high level of home sales activity
"If it wasn't for the unusually bad weather in February, we'd be seeing a better performance in pending home sales," said NAR Chief Economist David Lereah. "We also may be seeing some fallout from a decline in subprime lending, but a slight improvement in the more volatile month-to-month index is encouraging-the data suggest an underlying stabilization is taking place in the housing market."
The PHSI declined across the nation in February compared with the readings a year ago. On a regional basis, the PHSI was highest in the South, where it declined 8 percent to 121.9. In the West, the index fell 8.2 percent to 104.1. The PHSI also declined in the Midwest and Northeast regions, decreasing to 103 and 99.1, respectively.
http://www.realtor.org/press_room/news_releases/2007/phs_feb07_show_effects_of_weather.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. CONTINUES PUSH TO PROTECT CALIFORNIANS FROM PRIVATE TRANSFER TAXES
Because of a loophole in existing law, developers legally can impose private transfer taxes on home buyers at the time of purchase, with no oversight from government, no accountability on how the money is spent, and no limit on who can impose the tax or how many private transfer taxes can be added to a home when it's sold. Earlier this year, C.A.R. announced its sponsorship of SB 670 (Correa), "Private Transfer Tax Prohibition," to eliminate this unfair tax on Californians. The bill is scheduled to be heard by the California Senate Transportation and Housing Committee on April 17.
Last month, the "Orange County Register" published an editorial supporting SB 670. Titled "Private tax both wrong and sneaky - Homebuyers get ambushed at closing by a builder levy to fund whatever it wants," the March 2 editorial characterized private transfer taxes as "a scheme by builders to surreptitiously offload their costs to buyers (and) encumber future buyers." A second opinion piece published on March 11 also supported the bill, stating "Republicans, who hate tax increases, and Democrats, who often complain about corporate profiteering and a lack of affordable housing, ought to quickly make this tax disappear."
top
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - February 07: $564,700 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region February 07:
Santa Barbara So. Coast $1,000,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region February 07:
High Desert $319,860 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Fourth Quarter 06:
25 percent (Source: C.A.R.)
Mortgage rates - week ending 3/29:
30-yr. fixed: 6.16%; Fees/points: 0.4%
15-yr. fixed: 5.86%; Fees/points: 0.4%
1-yr. adjustable: 5.43%; Fees/points: 0.6%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 200,000 REALTORS® statewide.
Edited by Mark Giberson,and Amanda Hopkins,
Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, March 28, 2007
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® and David Breidenbach, 619-88-3322
CALIFORNIA HOME SALES DECREASE 9.6 PERCENT IN FEBRUARY
CONSUMERS' SHORT-TERM OUTLOOK TURNS CAUTIOUS
FLORIDA, CALIFORNIA POST MOST NEW FORECLOSURE FILINGS
MORE AMERICANS INCORPORATE GREEN BUILDING INTO REMODELING PROJECTS
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CALIFORNIA HOME SALES DECREASE 9.6 PERCENT IN FEBRUARY
The median price of an existing single-family home in California increased 5.7 percent in February and sales decreased 9.6 percent compared with the same period a year ago, C.A.R. recently reported. "Sales in February were at their highest level in eight months, posting their smallest year-to-year decline in 14 months," said C.A.R. President Colleen Badagliacco. "Next month's report could tell a different story since sales last year peaked in March. Looking forward, we are likely to see smaller year-to-year declines as we enter the traditional buying season. Homes that are well maintained and are priced to reflect the realities of today's market will continue to sell."
According to the report, the median price of an existing, single-family detached home in California during February was $564,700, a 5.7 percent increase over the revised $534,400 median for February 2006. Also last month, closed escrow sales of existing, single-family detached homes in California totaled 464,560 at a seasonally adjusted annualized rate, down 9.6 percent compared with the sales pace recorded one year earlier and up 6.2 percent from home resale activity in January 2006.
"Statewide, the number of homes for sale increased slightly in February and remain just above the long-run average," said C.A.R. Vice President Leslie Appleton-Young. "The unsold inventory index stood at 8.8 months in February, compared with 8.3 months in January, with the San Francisco Bay Area continuing to experience leaner inventory levels compared with Southern California and the state as a whole."
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® and David Breidenbach, 619-88-3322
CALIFORNIA HOME SALES DECREASE 9.6 PERCENT IN FEBRUARY
CONSUMERS' SHORT-TERM OUTLOOK TURNS CAUTIOUS
FLORIDA, CALIFORNIA POST MOST NEW FORECLOSURE FILINGS
MORE AMERICANS INCORPORATE GREEN BUILDING INTO REMODELING PROJECTS
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CALIFORNIA HOME SALES DECREASE 9.6 PERCENT IN FEBRUARY
The median price of an existing single-family home in California increased 5.7 percent in February and sales decreased 9.6 percent compared with the same period a year ago, C.A.R. recently reported. "Sales in February were at their highest level in eight months, posting their smallest year-to-year decline in 14 months," said C.A.R. President Colleen Badagliacco. "Next month's report could tell a different story since sales last year peaked in March. Looking forward, we are likely to see smaller year-to-year declines as we enter the traditional buying season. Homes that are well maintained and are priced to reflect the realities of today's market will continue to sell."
According to the report, the median price of an existing, single-family detached home in California during February was $564,700, a 5.7 percent increase over the revised $534,400 median for February 2006. Also last month, closed escrow sales of existing, single-family detached homes in California totaled 464,560 at a seasonally adjusted annualized rate, down 9.6 percent compared with the sales pace recorded one year earlier and up 6.2 percent from home resale activity in January 2006.
"Statewide, the number of homes for sale increased slightly in February and remain just above the long-run average," said C.A.R. Vice President Leslie Appleton-Young. "The unsold inventory index stood at 8.8 months in February, compared with 8.3 months in January, with the San Francisco Bay Area continuing to experience leaner inventory levels compared with Southern California and the state as a whole."
http://www.car.org/index.php?id=MzcxNzY
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CONSUMERS' SHORT-TERM OUTLOOK TURNS CAUTIOUS
After reaching a five-and-a-half year high in February, consumer confidence took a downward turn this month, largely affected by concerns about the short-term outlook, according to yesterday's report from The Conference Board. The organization's Consumer Confidence Index declined to 107.2 (1985=100) in March, down from 111.2 in February. Also this month, the Present Situation Index increased to 137.6, while the Expectations Index declined to 86.9.
According to the report, consumers remain positive about current economic conditions, but recent changes have created apprehension about the months ahead. "The recent turmoil in financial markets coupled with the run-up in gasoline prices may have contributed to consumers' heightened sense of uncertainty and concern. The direction of both components over the next few months bears watching to determine whether this decline is just a bump in the road or something more substantial," said Lynn Franco, director of The Conference Board Consumer Research Center.
http://www.conference-board.org/economics/ConsumerConfidence.cfm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
FLORIDA, CALIFORNIA POST MOST NEW FORECLOSURE FILINGS
The number of foreclosure filings across the nation exceeded 100,000 for the seventh consecutive month in February, with foreclosure activity increasing in all but 17 states, according to RealtyTrac's "February 2007 U.S. Foreclosure Market Report." Florida and California led the country with the most foreclosure filings last month, with 19,144 and 16,273 foreclosures, respectively. In California, foreclosures were up 4 percent compared with the previous month and up 79 percent from February 2006.
As lenders tighten their underwriting standards and defaults in the FHA and subprime mortgage markets continue, an upward trend in foreclosure activity is expected in the coming months, according to the report. The national foreclosure rate in February 2007 was one new filing for every 884 households.
http://www.realtytrac.com/ContentManagement/pressrelease.aspx?ChannelID=9&ItemID=2123&accnt=64847
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
MORE AMERICANS INCORPORATE GREEN BUILDING INTO REMODELING PROJECTS
As green building gains popularity, many Americans are now incorporating energy efficient products and materials into their remodeling projects, according to a recent report from the National Association of Home Builders (NAHB). Last year, consumers spent more than $230 billion on home remodeling, and builders report an increased demand for items such as low-energy windows, insulated exterior doors, and high efficiency HVAC systems.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CONSUMERS' SHORT-TERM OUTLOOK TURNS CAUTIOUS
After reaching a five-and-a-half year high in February, consumer confidence took a downward turn this month, largely affected by concerns about the short-term outlook, according to yesterday's report from The Conference Board. The organization's Consumer Confidence Index declined to 107.2 (1985=100) in March, down from 111.2 in February. Also this month, the Present Situation Index increased to 137.6, while the Expectations Index declined to 86.9.
According to the report, consumers remain positive about current economic conditions, but recent changes have created apprehension about the months ahead. "The recent turmoil in financial markets coupled with the run-up in gasoline prices may have contributed to consumers' heightened sense of uncertainty and concern. The direction of both components over the next few months bears watching to determine whether this decline is just a bump in the road or something more substantial," said Lynn Franco, director of The Conference Board Consumer Research Center.
http://www.conference-board.org/economics/ConsumerConfidence.cfm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
FLORIDA, CALIFORNIA POST MOST NEW FORECLOSURE FILINGS
The number of foreclosure filings across the nation exceeded 100,000 for the seventh consecutive month in February, with foreclosure activity increasing in all but 17 states, according to RealtyTrac's "February 2007 U.S. Foreclosure Market Report." Florida and California led the country with the most foreclosure filings last month, with 19,144 and 16,273 foreclosures, respectively. In California, foreclosures were up 4 percent compared with the previous month and up 79 percent from February 2006.
As lenders tighten their underwriting standards and defaults in the FHA and subprime mortgage markets continue, an upward trend in foreclosure activity is expected in the coming months, according to the report. The national foreclosure rate in February 2007 was one new filing for every 884 households.
http://www.realtytrac.com/ContentManagement/pressrelease.aspx?ChannelID=9&ItemID=2123&accnt=64847
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
MORE AMERICANS INCORPORATE GREEN BUILDING INTO REMODELING PROJECTS
As green building gains popularity, many Americans are now incorporating energy efficient products and materials into their remodeling projects, according to a recent report from the National Association of Home Builders (NAHB). Last year, consumers spent more than $230 billion on home remodeling, and builders report an increased demand for items such as low-energy windows, insulated exterior doors, and high efficiency HVAC systems.
While more than one-fourth of the builders surveyed see an increased demand for green remodeling, it is important for consumers to remember that "installation matters as much as product." Builders recommend using a whole-room approach by installing maximum insulation in the area to be remodeled, low-flow water fixtures, and high-efficiency windows.
http://www.nahb.org/news_details.aspx?newsID=4345&print=false
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - February 07: $564,700 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region February 07:
Santa Barbara So. Coast $1,000,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region February 07:
High Desert $319,860 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Fourth Quarter 06:
25 percent (Source: C.A.R.)
Mortgage rates - week ending 3/22:
30-yr. fixed: 6.16%; Fees/points: 0.4%
15-yr. fixed: 5.90%; Fees/points: 0.4%
1-yr. adjustable: 5.40%; Fees/points: 0.7%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 200,000 REALTORS® statewide.
Edited by Mark Giberson,and Amanda Hopkins
Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
Calif. median home price - February 07: $564,700 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region February 07:
Santa Barbara So. Coast $1,000,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region February 07:
High Desert $319,860 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Fourth Quarter 06:
25 percent (Source: C.A.R.)
Mortgage rates - week ending 3/22:
30-yr. fixed: 6.16%; Fees/points: 0.4%
15-yr. fixed: 5.90%; Fees/points: 0.4%
1-yr. adjustable: 5.40%; Fees/points: 0.7%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 200,000 REALTORS® statewide.
Edited by Mark Giberson,and Amanda Hopkins
Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, March 21, 2007
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® and David Breidenbach,
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® and David Breidenbach,
619-888-3322
FED HOLDS FEDERAL FUNDS RATE AT 5.25 PERCENT
BUILDER CONFIDENCE DECLINES AMIDST SUBPRIME CONCERNS
U.S. HOUSING STARTS DROP 28.5 PERCENT IN FEBRUARY
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
FED HOLDS FEDERAL FUNDS RATE AT 5.25 PERCENT
The Federal Reserve's Federal Open Market Committee today reported that moderate economic growth is likely in the coming months, despite ongoing concerns about core inflation. The Committee also announced its decision to keep the target for the federal funds rate at 5.25 percent, where is has stood since June 2006. The federal funds target rate is the interest rate charged by banks when they borrow funds "overnight" from each other.
In a prepared statement, the Fed acknowledged mixed economic indicators in recent months, including ongoing adjustments in the housing market. Should inflation fail to moderate as expected, the Committee may raise the Fed Funds rate as necessary.
http://www.federalreserve.gov/boarddocs/press/monetary/2007/20070321/
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
BUILDER CONFIDENCE DECLINES AMIDST SUBPRIME CONCERNS
Despite favorable interest rates and growth in the job market, the confidence level of the nation's home builders receded this month among rising concerns about the subprime mortgage market, according to the National Association of Home Builders Housing Market Index (HMI). "Builders are uncertain about the consequences of tightening mortgage lending standards for their home sales down the line, and some are already seeing effects of the subprime shakeout on current sales activity," said NAHB Chief Economist David Seiders.
After rising steadily during the past five months, the seasonally adjusted HMI now stands at 36, down three points from 39 in February and down 18 points from a year ago. All three components of the index declined this month. The indexes gauging current and future sales each declined three points to 37 and 50, respectively, while the component measuring buyer traffic edged down one point to 28.
http://www.nahb.org/news_details.aspx?newsID=4258&print=false
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
U.S. HOUSING STARTS DROP 28.5 PERCENT IN FEBRUARY
The seasonally adjusted annual rate for privately owned housing starts declined for the 11th consecutive month in February, falling to a rate of 1.53 million units, according to figures recently released by the U.S. Dept. of Commerce. Last month's construction pace was up 9 percent from January but down 28.5 percent from a year ago. Single-family starts decreased 32.7 percent from February 2006, to a rate of 1.22 million units, while starts for multifamily structures declined 6.7 percent to a rate of 266,000 units.
Weather played role in last month's construction activity decline, according to a separate report from the National Association of Home Builders (NAHB). "Shifting weather conditions have created a lot of month-to-month volatility in both housing starts and building permits during recent months," said NAHB Chief Economist David Seiders. "The trend lines are still slightly downward, although we probably are now approaching a bottom in the market."
Despite favorable weather in the South and West, which allowed builders to start more homes than in previous months, the construction pace for single-family housing units declined in all four U.S. regions in February. Housing starts fell by 52.3 percent in the Midwest, 37.2 percent in the Northeast, 35.9 percent in the West, and 23.5 in the South.
More infotop
http://www.census.gov/const/newresconst_200702.pdf
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - January 07: $559,640 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region January 07:
Santa Barbara So. Coast $1,150,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region January 07:
High Desert $317,380 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Fourth Quarter 06:
25 percent (Source: C.A.R.)
Mortgage rates - week ending 3/15:
30-yr. fixed: 6.14%; Fees/points: 0.4%
15-yr. fixed: 5.88%; Fees/points: 0.4%
1-yr. adjustable: 5.42%; Fees/points: 0.7%
FED HOLDS FEDERAL FUNDS RATE AT 5.25 PERCENT
BUILDER CONFIDENCE DECLINES AMIDST SUBPRIME CONCERNS
U.S. HOUSING STARTS DROP 28.5 PERCENT IN FEBRUARY
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
FED HOLDS FEDERAL FUNDS RATE AT 5.25 PERCENT
The Federal Reserve's Federal Open Market Committee today reported that moderate economic growth is likely in the coming months, despite ongoing concerns about core inflation. The Committee also announced its decision to keep the target for the federal funds rate at 5.25 percent, where is has stood since June 2006. The federal funds target rate is the interest rate charged by banks when they borrow funds "overnight" from each other.
In a prepared statement, the Fed acknowledged mixed economic indicators in recent months, including ongoing adjustments in the housing market. Should inflation fail to moderate as expected, the Committee may raise the Fed Funds rate as necessary.
http://www.federalreserve.gov/boarddocs/press/monetary/2007/20070321/
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
BUILDER CONFIDENCE DECLINES AMIDST SUBPRIME CONCERNS
Despite favorable interest rates and growth in the job market, the confidence level of the nation's home builders receded this month among rising concerns about the subprime mortgage market, according to the National Association of Home Builders Housing Market Index (HMI). "Builders are uncertain about the consequences of tightening mortgage lending standards for their home sales down the line, and some are already seeing effects of the subprime shakeout on current sales activity," said NAHB Chief Economist David Seiders.
After rising steadily during the past five months, the seasonally adjusted HMI now stands at 36, down three points from 39 in February and down 18 points from a year ago. All three components of the index declined this month. The indexes gauging current and future sales each declined three points to 37 and 50, respectively, while the component measuring buyer traffic edged down one point to 28.
http://www.nahb.org/news_details.aspx?newsID=4258&print=false
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
U.S. HOUSING STARTS DROP 28.5 PERCENT IN FEBRUARY
The seasonally adjusted annual rate for privately owned housing starts declined for the 11th consecutive month in February, falling to a rate of 1.53 million units, according to figures recently released by the U.S. Dept. of Commerce. Last month's construction pace was up 9 percent from January but down 28.5 percent from a year ago. Single-family starts decreased 32.7 percent from February 2006, to a rate of 1.22 million units, while starts for multifamily structures declined 6.7 percent to a rate of 266,000 units.
Weather played role in last month's construction activity decline, according to a separate report from the National Association of Home Builders (NAHB). "Shifting weather conditions have created a lot of month-to-month volatility in both housing starts and building permits during recent months," said NAHB Chief Economist David Seiders. "The trend lines are still slightly downward, although we probably are now approaching a bottom in the market."
Despite favorable weather in the South and West, which allowed builders to start more homes than in previous months, the construction pace for single-family housing units declined in all four U.S. regions in February. Housing starts fell by 52.3 percent in the Midwest, 37.2 percent in the Northeast, 35.9 percent in the West, and 23.5 in the South.
More infotop
http://www.census.gov/const/newresconst_200702.pdf
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - January 07: $559,640 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region January 07:
Santa Barbara So. Coast $1,150,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region January 07:
High Desert $317,380 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Fourth Quarter 06:
25 percent (Source: C.A.R.)
Mortgage rates - week ending 3/15:
30-yr. fixed: 6.14%; Fees/points: 0.4%
15-yr. fixed: 5.88%; Fees/points: 0.4%
1-yr. adjustable: 5.42%; Fees/points: 0.7%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 200,000 REALTORS® statewide.
Edited by Mark Giberson, Amanda Hopkins, Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, March 14, 2007
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®, and David Breidenbach, BreidyProperties Inc, 619-888-3322
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
EDITORIAL CHARACTERIZES PRIVATE TRANSFER TAXES AS "BOTH WRONG AND SNEAKY"
HELP MAKE C.A.R. ONLINE A BETTER WEB SITE
LATE MORTGAGE PAYMENTS INCREASE NATIONWIDE
NAR FORECAST: HOUSING RECOVERY LIKELY THIS YEAR
ATTEND THE CALIFORNIA REALTOR® SHOWCASE IN JUNE
THIS WEEK ON C.A.R. ONLINE: PODCASTS AND VIDEO CLIPS
C.A.R. TECH HOTLINE DISCONTINUED APRIL 1
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
EDITORIAL CHARACTERIZES PRIVATE TRANSFER TAXES AS "BOTH WRONG AND SNEAKY"
The "Orange County Register" recently published an editorial supporting SB 670 (Correa), "Private Transfer Tax Prohibition," C.A.R.'s sponsored legislation eliminating a loophole in existing law allowing developers and others to impose private transfer taxes on unsuspecting home buyers. Titled "Private tax both wrong and sneaky - Homebuyers get ambushed at closing by a builder levy to fund whatever it wants," the March 2 editorial characterized private transfer taxes as "a scheme by builders to surreptitiously offload their costs to buyers … (and) encumber future buyers."
On March 11 in "A stealth tax on homeowners," "Orange County Register" columnist Steven Greenhut said "Republicans, who hate tax increases, and Democrats, who often complain about corporate profiteering and a lack of affordable housing, ought to quickly make this tax disappear." He concluded "Builders want more money to pay for things they are coerced to include in their projects. It's easier to buy off the opposition than to fight it. They know they can't always hike the price to reflect these costs, so they want to quietly offload the costs onto present and future buyers through a clever type of tax. It's time to nip this one in the bud."
http://www.car.org/index.php?id=NTgx
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
LATE MORTGAGE PAYMENTS INCREASE NATIONWIDE
More and more consumers are finding it difficult to make their mortgages payments, especially those with subprime and FHA loans, according to yesterday's report from the Mortgage Bankers Association. Across the nation, the delinquency rate for mortgage loans stood at 4.95 percent during the fourth quarter of 2006, up from 4.67 percent during the third quarter of 2006 and up from 4.7 percent one year earlier. The delinquency rate for subprime borrowers, who are more likely to be affected by increases in interest rates and slowing home price appreciation, rose to 13.33 percent last quarter from 11.63 percent during the fourth quarter of 2005. The percentage of FHA loans with payments 30 or more days past due reached a record high last quarter at 13.46 percent.
On a regional basis, the West had the lowest delinquency rate at 3.18 percent, while the South and North Central regions had delinquency rates of 5.71 percent and 5.68 percent, respectively. Forty-nine of 51 states and districts saw increases in their mortgage delinquency rate.
http://www.mortgagebankers.org/NewsandMedia/PressCenter/50974.htm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
LATE MORTGAGE PAYMENTS INCREASE NATIONWIDE
More and more consumers are finding it difficult to make their mortgages payments, especially those with subprime and FHA loans, according to yesterday's report from the Mortgage Bankers Association. Across the nation, the delinquency rate for mortgage loans stood at 4.95 percent during the fourth quarter of 2006, up from 4.67 percent during the third quarter of 2006 and up from 4.7 percent one year earlier. The delinquency rate for subprime borrowers, who are more likely to be affected by increases in interest rates and slowing home price appreciation, rose to 13.33 percent last quarter from 11.63 percent during the fourth quarter of 2005. The percentage of FHA loans with payments 30 or more days past due reached a record high last quarter at 13.46 percent.
On a regional basis, the West had the lowest delinquency rate at 3.18 percent, while the South and North Central regions had delinquency rates of 5.71 percent and 5.68 percent, respectively. Forty-nine of 51 states and districts saw increases in their mortgage delinquency rate.
http://www.mortgagebankers.org/NewsandMedia/PressCenter/50974.htm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
NAR FORECAST: HOUSING RECOVERY LIKELY THIS YEAR
Nationwide home sales are expected to reach annual levels similar to 2006, despite the recent weather patterns and challenges in subprime lending that have created ambiguity in the U.S. housing market, according to NAR's recent forecast. Existing-home sales should improve from the cyclical low experienced last fall and are projected to reach 6.42 million in 2007, according to the report. New-home sales are forecast at 950,000, down from 1.06 million in 2006.
Although the picture is somewhat unclear right now, "underlying trends point to a housing recovery in 2007," said NAR Chief Economist David Lereah. With winter storms likely to affect home sales in March, an upturn in closed transactions may not be evident until later this spring.
http://www.realtor.org/press_room/news_releases/2007/forecast_feb307_housing_recovery_likely.html
NAR FORECAST: HOUSING RECOVERY LIKELY THIS YEAR
Nationwide home sales are expected to reach annual levels similar to 2006, despite the recent weather patterns and challenges in subprime lending that have created ambiguity in the U.S. housing market, according to NAR's recent forecast. Existing-home sales should improve from the cyclical low experienced last fall and are projected to reach 6.42 million in 2007, according to the report. New-home sales are forecast at 950,000, down from 1.06 million in 2006.
Although the picture is somewhat unclear right now, "underlying trends point to a housing recovery in 2007," said NAR Chief Economist David Lereah. With winter storms likely to affect home sales in March, an upturn in closed transactions may not be evident until later this spring.
http://www.realtor.org/press_room/news_releases/2007/forecast_feb307_housing_recovery_likely.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - January 07: $559,640 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region January 07:
Santa Barbara So. Coast $1,150,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region January 07:
High Desert $317,380 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Fourth Quarter 06:
25 percent (Source: C.A.R.)
Mortgage rates - week ending 3/8:
30-yr. fixed: 6.14%; Fees/points: 0.5%
15-yr. fixed: 5.86%; Fees/points: 0.5%
1-yr. adjustable: 5.47%; Fees/points: 0.6%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 200,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins,
Fast Facts
Calif. median home price - January 07: $559,640 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region January 07:
Santa Barbara So. Coast $1,150,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region January 07:
High Desert $317,380 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Fourth Quarter 06:
25 percent (Source: C.A.R.)
Mortgage rates - week ending 3/8:
30-yr. fixed: 6.14%; Fees/points: 0.5%
15-yr. fixed: 5.86%; Fees/points: 0.5%
1-yr. adjustable: 5.47%; Fees/points: 0.6%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 200,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins,
Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, March 07, 2007
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® and David Breidenbach, BreidyProperties Inc., 619-888-3322
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
ENTRY-LEVEL HOUSING AFFORDABILITY AT 25 PERCENT IN CALIFORNIA
CONSTRUCTION SPENDING, HOUSING STARTS CONTINUE TO SLOW
WINTER WEATHER IMPACTS PENDING HOME SALES
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
ENTRY-LEVEL HOUSING AFFORDABILITY AT 25 PERCENT IN CALIFORNIA
The percentage of households that could afford to buy an entry-level home in California stood at 25 percent in the fourth quarter of 2006, compared with 27 percent for the same period a year ago, according to C.A.R.'s First-time Buyer Housing Affordability Index (FTB-HAI). The minimum household income needed to purchase an entry-level home at $477,400 in California in the fourth quarter of 2006 was $96,760, based on an adjustable interest rate of 6.36 percent and assuming a 10 percent down payment. First-time buyers typically purchase a home equal to 85 percent of the prevailing median price. The monthly payment including taxes and insurance was $3,230 for the fourth quarter of 2006.
At 41 percent, the High Desert and Sacramento regions were the most affordable C.A.R. regions in the state. Santa Barbara and Los Angeles were the least affordable regions in the state at 19 percent.
http://www.car.org/index.php?id=MzcxMjk
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CONSTRUCTION SPENDING, HOUSING STARTS CONTINUE TO SLOW
The annual pace of construction spending continued its 10-month slowdown in January, falling 1.2 percent from a year ago to a seasonally adjusted annual rate of $1.18 trillion, according to a recent report from the U.S. Census Bureau. Residential construction spending declined 12.7 percent compared with one year earlier, standing at a rate of $585 billion, while the value of nonresidential construction activity rose 13.5 percent to a rate of $595.3 billion, according to the report.
In California, data from the California Building Industry Association (CBIA) report a similar decline, with new home construction falling 21 percent during January when compared with the construction pace recorded a year earlier. Based on the number of building permits issued, 9,798 new housing units were started throughout the state in January, with single-family units accounting for 68 percent of the starts. "Building permit activity for the first month of 2007 continues to show the hesitancy of home builders to build ahead of sales. Inventory statewide has been reduced substantially during the past six months and that should bode well for a return to more normal production when buyer interest returns," said CBIA Chief Economist Alan Nevin.
http://www.realtor.org/press_room/news_releases/2007/phs_jan3607_index_down_weather.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
WINTER WEATHER IMPACTS PENDING HOME SALES
Following a strong improvement in December, pending home sales declined in January, due in part to inclement weather across much of the country, according to a recent report from NAR. In January, the Pending Home Sales Index (PHSI), which gauges home sales activity for upcoming months based on the number of transactions that have signed contracts but are not yet closed, stood at 108.7, down 4.1 percent from the previous month and down 8.9 percent from a year ago. A PHSI of 100 or more generally indicates a high level of home sales activity.
"We are seeing temporary near-term weather disruptions in much of the country, but there is an underlying pattern of stabilization in the housing market," said NAR Chief Economist David Lereah of January's decline. Despite the weather's impact on pending home sales, the January PHSI was the second highest since August 2006.
http://www.realtor.org/press_room/news_releases/2007/phs_jan3607_index_down_weather.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - January 07: $559,640 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region January 07:
Santa Barbara So. Coast $1,150,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region January 07:
High Desert $317,380 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index:
Fourth Quarter 06: 25 percent (Source: C.A.R.)
Mortgage rates - week ending 3/1:
30-yr. fixed: 6.18%; Fees/points: 0.4%
15-yr. fixed: 5.92%; Fees/points: 0.5%
1-yr. adjustable: 5.49%; Fees/points: 0.6%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 200,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
Wednesday, March 07, 2007
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® and David Breidenbach, BreidyProperties Inc., 619-888-3322
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
ENTRY-LEVEL HOUSING AFFORDABILITY AT 25 PERCENT IN CALIFORNIA
CONSTRUCTION SPENDING, HOUSING STARTS CONTINUE TO SLOW
WINTER WEATHER IMPACTS PENDING HOME SALES
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
ENTRY-LEVEL HOUSING AFFORDABILITY AT 25 PERCENT IN CALIFORNIA
The percentage of households that could afford to buy an entry-level home in California stood at 25 percent in the fourth quarter of 2006, compared with 27 percent for the same period a year ago, according to C.A.R.'s First-time Buyer Housing Affordability Index (FTB-HAI). The minimum household income needed to purchase an entry-level home at $477,400 in California in the fourth quarter of 2006 was $96,760, based on an adjustable interest rate of 6.36 percent and assuming a 10 percent down payment. First-time buyers typically purchase a home equal to 85 percent of the prevailing median price. The monthly payment including taxes and insurance was $3,230 for the fourth quarter of 2006.
At 41 percent, the High Desert and Sacramento regions were the most affordable C.A.R. regions in the state. Santa Barbara and Los Angeles were the least affordable regions in the state at 19 percent.
http://www.car.org/index.php?id=MzcxMjk
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CONSTRUCTION SPENDING, HOUSING STARTS CONTINUE TO SLOW
The annual pace of construction spending continued its 10-month slowdown in January, falling 1.2 percent from a year ago to a seasonally adjusted annual rate of $1.18 trillion, according to a recent report from the U.S. Census Bureau. Residential construction spending declined 12.7 percent compared with one year earlier, standing at a rate of $585 billion, while the value of nonresidential construction activity rose 13.5 percent to a rate of $595.3 billion, according to the report.
In California, data from the California Building Industry Association (CBIA) report a similar decline, with new home construction falling 21 percent during January when compared with the construction pace recorded a year earlier. Based on the number of building permits issued, 9,798 new housing units were started throughout the state in January, with single-family units accounting for 68 percent of the starts. "Building permit activity for the first month of 2007 continues to show the hesitancy of home builders to build ahead of sales. Inventory statewide has been reduced substantially during the past six months and that should bode well for a return to more normal production when buyer interest returns," said CBIA Chief Economist Alan Nevin.
http://www.realtor.org/press_room/news_releases/2007/phs_jan3607_index_down_weather.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
WINTER WEATHER IMPACTS PENDING HOME SALES
Following a strong improvement in December, pending home sales declined in January, due in part to inclement weather across much of the country, according to a recent report from NAR. In January, the Pending Home Sales Index (PHSI), which gauges home sales activity for upcoming months based on the number of transactions that have signed contracts but are not yet closed, stood at 108.7, down 4.1 percent from the previous month and down 8.9 percent from a year ago. A PHSI of 100 or more generally indicates a high level of home sales activity.
"We are seeing temporary near-term weather disruptions in much of the country, but there is an underlying pattern of stabilization in the housing market," said NAR Chief Economist David Lereah of January's decline. Despite the weather's impact on pending home sales, the January PHSI was the second highest since August 2006.
http://www.realtor.org/press_room/news_releases/2007/phs_jan3607_index_down_weather.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - January 07: $559,640 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region January 07:
Santa Barbara So. Coast $1,150,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region January 07:
High Desert $317,380 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index:
Fourth Quarter 06: 25 percent (Source: C.A.R.)
Mortgage rates - week ending 3/1:
30-yr. fixed: 6.18%; Fees/points: 0.4%
15-yr. fixed: 5.92%; Fees/points: 0.5%
1-yr. adjustable: 5.49%; Fees/points: 0.6%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 200,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, February 28, 2007
Brought to you by David Breidenbach, 619.888.3322, and the CALIFORNIA ASSOCIATION OF REALTORS®
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. LEGISLATION TO PROTECT CALIFORNIANS FROM PRIVATE TRANSFER TAXES
CONSUMER CONFIDENCE HITS HIGHEST LEVEL SINCE 2001
PROPERLY RECORDED LIS PENDENS MAY HAVE NO LEGAL EFFECT UNTIL INDEXED
C.A.R. REPORTS HOME SALES DECREASE 12.6 PERCENT IN JANUARY
LUXURY HOME MARKETS SLOW IN CALIFORNIA
HUD RELEASES HOMELESS ASSESSMENT REPORT
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. LEGISLATION TO PROTECT CALIFORNIANS FROM PRIVATE TRANSFER TAXES
Because of a loophole in existing law, developers legally can impose private transfer taxes on home buyers at the time of purchase, with no oversight from government, no accountability on how the money is spent, and no limit on who can impose the tax or how many private transfer taxes can be added to a home when it's sold. C.A.R. today announced it will sponsor SB 670 (Correa), "Private Transfer Tax Prohibition," to eliminate this unfair tax on Californians.
"This is an alarming trend in California, one that gives non-government entities like developers the power to tax, while threatening the dream of homeownership by pushing prices higher," said C.A.R. President Colleen Badagliacco. "While the highest private transfer tax rate we are aware of currently is 1.75 percent of the home's value, under existing law there's no upper limit."
A private transfer tax of 1.75 percent on a $500,000 home skims nearly $10,000, while inflating the cost of a home. Private transfer taxes also impact affordability in California. According to C.A.R. research, for every $10,000 increase in the cost of a home, another 200,000 potential home buyers are eliminated from the marketplace. SB 670 (Correa), "Private Transfer Tax Prohibition," will next be heard in the Senate.
http://www.car.org/index.php?id=MzcxMTQ
CONFORMING LOAN LIMITS, FHA REFORM LEAD LEGISLATIVE PRIORITIES FOR 2007
Conforming loan limits and Federal Housing Administration (FHA) reform are among C.A.R.'s top federal legislative priorities for 2007. During the 109th session of Congress, which ended in December 2006, the U.S. House of Representatives passed H.R. 1461, a measure that is intended to strengthen the regulation and oversight of Fannie Mae and Freddie Mac, also known as the government-sponsored enterprises (GSEs). The legislation also would allow the new GSE regulator to set high-cost conforming loan limits by an area's median home price, up to 150 percent of the national conforming loan limit. With the U.S. Senate failing to take action on the measure, C.A.R. will work with the 110th Congress to pass final legislation for GSE oversight and raise high-cost conforming loan limits.
Also this year, C.A.R. will continue to fight for reform that will make FHA loans a more viable option for American homeowners; work with Congress to update insurance regulations so that insurance companies are better prepared for natural disasters; and work with the House Ways and Means Committee to prepare legislation that revises the need for sellers to provide their taxpayer identification numbers to buyers under the Federal Investment in Real Property Tax Act (FIRPTA).
http://www.car.org/index.php?id=NjAz
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. SCHOLARSHIP FOUNDATION AWARDS EIGHT SCHOLARSHIPS
The C.A.R. Scholarship Foundation recently awarded eight scholarships to college students planning careers in real estate. The scholarships were awarded in January at the Association's board of directors meetings in Monterey. Recipients of the award are enrolled in two- to four-year colleges or universities in California, have completed a minimum of two real estate or real estate-related college-level courses, and are currently enrolled in at least one real estate or real estate-related course.
"We are pleased that scholarships were awarded to recipients from across the state, all of whom have demonstrated a serious commitment to a career in real estate," said C.A.R. President Colleen Badagliacco. Scholarships awarded by the C.A.R. Scholarship Foundation address C.A.R.'s goal of bringing new professionals into the real estate industry and training them with the skills required to effectively meet the needs of future homeowners in California.
http://www.car.org/index.php?id=MzcwODQ=
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price
December 06: $567,690
(Source: C.A.R.)
Calif. highest median home price by C.A.R. region
December 06: Santa Barbara So. Coast $1,250,000
(Source: C.A.R.)
Calif. lowest median home price by C.A.R. region
December 06: High Desert $324,560
(Source: C.A.R.)
Calif. First-time Buyer Affordability Index
Third Quarter 06: 24 percent
(Source: C.A.R.)
Mortgage rates - week ending 2/15:
30-yr. fixed: 6.30%; Fees/points: 0.4%
15-yr. fixed: 6.03%; Fees/points: 0.4%
1-yr. adjustable: 5.52%; Fees/points: 0.6%
(Source: Freddie Mac)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 200,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 200,000 REALTORS® statewide.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, February 07, 2007
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
U.S. HOMEOWNERSHIP RATE HOLDS STEADY
SHARE OF FIRST-TIME BUYERS SECOND LOWEST ON RECORD IN 2006
U.S. HOME BUYERS WILLING TO PAY PREMIUM FOR GREEN HOMES
SUPREME COURT UPHOLDS PROTECTIONS FOR CALIFORNIA HOMEOWNERS
PENDING HOME SALES INDICATE SUSTAINABLE SALES ACTIVITY
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
U.S. HOMEOWNERSHIP RATE HOLDS STEADY
Nearly 75.8 million of 109.9 million American households were owner-occupied during the fourth quarter of 2006, maintaining a national homeownership rate that has hovered around 69 percent for 12 consecutive quarters, the U.S. Census Bureau reported last week. Regionally, the homeownership rate was lowest in the West at 64.5 percent and highest in the Midwest at 73 percent. Among age groups, the rate of homeownership was 81.2 percent for those aged 65 and up; 80.7 percent for those between 55 and 64; 76.4 percent for those between 45 and 54; 68.9 percent for those between 35 and 44; and 42.8 percent for those 35 and younger. The homeownership rate for households earning a family income equal to or greater than the median family income was 84.5 percent last quarter.
The Census also reported that more than 16.7 million housing units stood vacant nationwide at the end of 2006, up from 15.6 million vacant units at the end of 2005. The vacancy rate for owned units jumped to a record 2.7 percent, up from 2 percent a year earlier. At the end of 2006, 2.1 million vacant homes were listed for sale.
http://www.census.gov/hhes/www/housing/hvs/qtr406/q406press.pdf
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
SHARE OF FIRST-TIME BUYERS SECOND LOWEST ON RECORD IN 2006
Affordability concerns continued to impact the residential real estate market in California, with the share of first-time buyers declining to their second lowest level from 30.5 percent in 2005 to 27.1 percent in 2006, according to C.A.R.'s "The State of the California Housing Market" report, released earlier this week. Based largely on C.A.R.'s 26th Annual Housing Market Survey, the report examined trends in buyer and seller behavior during 2006, a transition year in which statewide sales of existing single-family homes decreased 23 percent, while price appreciation slowed dramatically as the year progressed.
"Over the period 2003 through 2005, inventories were lean, multiple offers were common, and buyers and sellers alike knew they needed to move quickly to consummate a transaction," said C.A.R. President Colleen Badagliacco. "But as the market began to slow in late 2005, buyers sensed that they would get a better deal if they waited, while sellers still hoped to sell their home at a premium. This drove a wedge between buyer psychology and seller psychology, creating more market friction and leading to a slowdown in activity."
The survey also found that the share of buyers who used a second mortgage climbed from 38 percent in 2005 to 43 percent in 2006, more than triple the percentage since 2001 and the highest percentage since 1982. Additionally, more than one-fifth of all homes purchased were financed with a zero-down payment mortgages, up from 19.7 percent last year. Recent use of zero-down mortgages has increased significantly since 2000, when they were used by just 4.5 percent of buyers.
http://www.car.org/index.php?id=MzcwNzU=
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
U.S. HOME BUYERS WILLING TO PAY PREMIUM FOR GREEN HOMES
Home buyers continue to show an increased interest in environmentally-friendly homes, and many are willing to pay a premium for such homes, according to a recent survey of U.S. home builders conducted by Green Builder® Media. More than half of the home builders surveyed report home buyers are willing to pay a premium of 11 to 25 percent for homes built with "green" construction practices, which include on-site energy production, careful land use, and renewable raw materials. The average "green" home buyer is between the ages of 35 and 50, has a college education, and is knowledgeable about green products.
Home buyers' rising interest in green building has prompted more home builders to adopt green-building practices, according to the report. Currently 51 percent of those surveyed report using green products or practices on a regular basis, but 96 percent plan to increase their use of green processes and materials in 2007.
http://www.imrecommunications.com/GreenBuilding.pdf
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
SUPREME COURT UPHOLDS PROTECTIONS FOR CALIFORNIA HOMEOWNERS
The Supreme Court recently ruled that insurers may not depreciate the cost of labor when paying claims for homeowners' insurance, a practice that often increases homeowners' out-of-pocket expenses when repairing damage to their homes. In 2003, the California Department of Insurance (CDI) amended the Fair Claims Settlement Practice Regulations to set more stringent standards for insurers, resulting in a lawsuit filed by insurance trade organizations. Regarding the issue of "depreciating labor costs," the Supreme Court upheld CDI's previous claim that unlike material items, the cost of labor does not lose value over time and cannot be depreciated.
http://www.insurance.ca.gov/0400-news/0100-press-releases/0060-2007/release013-07.cfm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
PENDING HOME SALES INDICATE SUSTAINABLE SALES ACTIVITY
The latest pending home sales data tracked by NAR indicate a steady pace of home sales in the coming months, according to a recent report. In December, the Pending Home Sales Index (PHSI), which gauges home sales activity for upcoming months based on the number of transactions that have signed contracts but are not yet closed, stood at 112.4, up 4.9 percent from the previous month and down 4.4 percent from a year ago. A PHSI of 100 or more generally indicates a high level of home sales activity. The year-to-year declines in the index have narrowed over the last six months.
Despite month-to-month gains, the PHSI declined across the nation in December when compared with the readings a year ago. On a regional basis, the PHSI was highest in the South, where it declined 4.2 percent to 129.8. In the West, the index fell 4.9 percent to 112.2. The PHSI also declined in the Midwest and Northeast regions, falling to 103.2 and 89.9, respectively.
http://www.realtor.org/press_room/news_releases/2007/phs_jan07_index_rises.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - December 06: $567,690 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region December 06:
Santa Barbara So. Coast $1,250,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region December 06:
High Desert $324,560 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Third Quarter 06:
24 percent (Source: C.A.R.)
Mortgage rates - week ending 2/1:
30-yr. fixed: 6.34%; Fees/points: 0.4%
15-yr. fixed: 6.06%; Fees/points: 0.4%
1-yr. adjustable: 5.54%; Fees/points: 0.7%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 200,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
Brought to you by David Breidenbach, 619.888.3322, and the CALIFORNIA ASSOCIATION OF REALTORS®
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. LEGISLATION TO PROTECT CALIFORNIANS FROM PRIVATE TRANSFER TAXES
CONSUMER CONFIDENCE HITS HIGHEST LEVEL SINCE 2001
PROPERLY RECORDED LIS PENDENS MAY HAVE NO LEGAL EFFECT UNTIL INDEXED
C.A.R. REPORTS HOME SALES DECREASE 12.6 PERCENT IN JANUARY
LUXURY HOME MARKETS SLOW IN CALIFORNIA
HUD RELEASES HOMELESS ASSESSMENT REPORT
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. LEGISLATION TO PROTECT CALIFORNIANS FROM PRIVATE TRANSFER TAXES
Because of a loophole in existing law, developers legally can impose private transfer taxes on home buyers at the time of purchase, with no oversight from government, no accountability on how the money is spent, and no limit on who can impose the tax or how many private transfer taxes can be added to a home when it's sold. C.A.R. today announced it will sponsor SB 670 (Correa), "Private Transfer Tax Prohibition," to eliminate this unfair tax on Californians.
"This is an alarming trend in California, one that gives non-government entities like developers the power to tax, while threatening the dream of homeownership by pushing prices higher," said C.A.R. President Colleen Badagliacco. "While the highest private transfer tax rate we are aware of currently is 1.75 percent of the home's value, under existing law there's no upper limit."
A private transfer tax of 1.75 percent on a $500,000 home skims nearly $10,000, while inflating the cost of a home. Private transfer taxes also impact affordability in California. According to C.A.R. research, for every $10,000 increase in the cost of a home, another 200,000 potential home buyers are eliminated from the marketplace. SB 670 (Correa), "Private Transfer Tax Prohibition," will next be heard in the Senate.
http://www.car.org/index.php?id=MzcxMTQ
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CONSUMER CONFIDENCE HITS HIGHEST LEVEL SINCE 2001
Boosted by a brighter outlook for the labor market and present day business conditions, consumer confidence rose for the third consecutive month in February and now stands at a five-and-a-half year high, according to yesterday's report from The Conference Board. The Consumer Confidence Index improved to 112.5 (1985=100) this month, up from 110.2 in January and 1.5 points below the last high of 114, reached in August 2001.
While nearly 30 percent of consumers assessed current business conditions as "good," helping lift the Present Situation Index from 133.9 to 139 this month, consumers' outlook for the next six months remained nearly unchanged from January. "All in all, it appears that the pace of economic growth exhibited in the final months of 2006 has carried over into early 2007 and may have even gained a little momentum," said Lynn Franco, director of The Conference Board Consumer Research Center.
http://www.conference-board.org/utilities/pressDetail.cfm?press_ID=3078
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. REPORTS HOME SALES DECREASE 12.6 PERCENT IN JANUARY
The median price of an existing single-family home in California increased 1.9 percent in January and sales decreased 12.6 percent compared with the same period a year ago, C.A.R. reported yesterday. "After holding steady in the range of 450,000 units on a seasonally adjusted annual basis since July of last year, home sales activity was slightly lower in January," said C.A.R. President Colleen Badagliacco. "On a regional basis, sales fell an average of 13 percent, while median prices declined in all areas except Los Angeles, the San Francisco Bay Area, and Riverside/San Bernardino."
According to the report, the median price of an existing, single-family detached home in California during January was $559,640, a 1.9 percent increase over the revised $549,460 median for January 2006. Also last month, closed escrow sales of existing, single-family detached homes in California totaled 437,580 at a seasonally adjusted annualized rate, down 12.6 percent compared with the sales pace recorded one year earlier and down 3.2 percent from home resale activity in December 2006.
"The unsold inventory of existing homes jumped to 9.1 months in January, after hovering around the long-run average of 7 months since mid-2006," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "There was a slight increase in statewide listings last month, which is characteristic of the start of the year. However, listings remained near the long-run average. As such, the increase in the unsold inventory index--the ratio of listings to sales--was driven primarily by the sales decline."
http://www.car.org/index.php?id=MzcxMDM=
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
LUXURY HOME MARKETS SLOW IN CALIFORNIA
During last year's fourth quarter, luxury home prices in Los Angeles, San Diego, and San Francisco declined on a quarter-to-quarter basis for the first time since 2004, according to the First Republic Prestige Home Index™, which tracks homes valued at more than $1 million in key California markets. Despite the quarterly decreases, limited inventories continue to drive the luxury markets, and prices appreciated by single digits on an annual basis in all three areas.
In Los Angeles, fourth quarter luxury home prices were up 2.9 from a year ago and the average luxury home is now valued at $2.35 million. High-end homes in San Diego and San Francisco also recorded modest annual gains last quarter, rising 3.3 percent and 1.5 percent, respectively. According to the index, the average luxury home in San Francisco is now valued at $2.92 million, while the average luxury home value in San Diego is $2.15 million.
http://firstrepublic.com/lend/residential/prestigeindex/index.html
CONSUMER CONFIDENCE HITS HIGHEST LEVEL SINCE 2001
Boosted by a brighter outlook for the labor market and present day business conditions, consumer confidence rose for the third consecutive month in February and now stands at a five-and-a-half year high, according to yesterday's report from The Conference Board. The Consumer Confidence Index improved to 112.5 (1985=100) this month, up from 110.2 in January and 1.5 points below the last high of 114, reached in August 2001.
While nearly 30 percent of consumers assessed current business conditions as "good," helping lift the Present Situation Index from 133.9 to 139 this month, consumers' outlook for the next six months remained nearly unchanged from January. "All in all, it appears that the pace of economic growth exhibited in the final months of 2006 has carried over into early 2007 and may have even gained a little momentum," said Lynn Franco, director of The Conference Board Consumer Research Center.
http://www.conference-board.org/utilities/pressDetail.cfm?press_ID=3078
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. REPORTS HOME SALES DECREASE 12.6 PERCENT IN JANUARY
The median price of an existing single-family home in California increased 1.9 percent in January and sales decreased 12.6 percent compared with the same period a year ago, C.A.R. reported yesterday. "After holding steady in the range of 450,000 units on a seasonally adjusted annual basis since July of last year, home sales activity was slightly lower in January," said C.A.R. President Colleen Badagliacco. "On a regional basis, sales fell an average of 13 percent, while median prices declined in all areas except Los Angeles, the San Francisco Bay Area, and Riverside/San Bernardino."
According to the report, the median price of an existing, single-family detached home in California during January was $559,640, a 1.9 percent increase over the revised $549,460 median for January 2006. Also last month, closed escrow sales of existing, single-family detached homes in California totaled 437,580 at a seasonally adjusted annualized rate, down 12.6 percent compared with the sales pace recorded one year earlier and down 3.2 percent from home resale activity in December 2006.
"The unsold inventory of existing homes jumped to 9.1 months in January, after hovering around the long-run average of 7 months since mid-2006," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "There was a slight increase in statewide listings last month, which is characteristic of the start of the year. However, listings remained near the long-run average. As such, the increase in the unsold inventory index--the ratio of listings to sales--was driven primarily by the sales decline."
http://www.car.org/index.php?id=MzcxMDM=
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
LUXURY HOME MARKETS SLOW IN CALIFORNIA
During last year's fourth quarter, luxury home prices in Los Angeles, San Diego, and San Francisco declined on a quarter-to-quarter basis for the first time since 2004, according to the First Republic Prestige Home Index™, which tracks homes valued at more than $1 million in key California markets. Despite the quarterly decreases, limited inventories continue to drive the luxury markets, and prices appreciated by single digits on an annual basis in all three areas.
In Los Angeles, fourth quarter luxury home prices were up 2.9 from a year ago and the average luxury home is now valued at $2.35 million. High-end homes in San Diego and San Francisco also recorded modest annual gains last quarter, rising 3.3 percent and 1.5 percent, respectively. According to the index, the average luxury home in San Francisco is now valued at $2.92 million, while the average luxury home value in San Diego is $2.15 million.
http://firstrepublic.com/lend/residential/prestigeindex/index.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HUD RELEASES HOMELESS ASSESSMENT REPORT
The U.S. Dept. of Housing and Urban Development (HUD) today released a report evaluating the scope of homelessness in America. The first report of its kind in more than 20 years, HUD's "Annual Homeless Assessment Report to Congress" estimates than 754,000 people nationwide live in emergency shelter, transitional housing, or on the streets on any given night. In California, the homeless population contains an estimated 188,300 people, including more than 24,000 veterans and more than 17,700 children under the age of 18.
"Understanding homelessness is a necessary step to ending it, especially for those persons living with a chronic condition such as mental illness, an addiction, or a physical disability," said HUD Secretary Alphonso Jackson. According to the report, 65 percent of the adult homeless population are men, 41 percent are between 31 and 50 years of age, and 75 percent are in central cities.
HUD RELEASES HOMELESS ASSESSMENT REPORT
The U.S. Dept. of Housing and Urban Development (HUD) today released a report evaluating the scope of homelessness in America. The first report of its kind in more than 20 years, HUD's "Annual Homeless Assessment Report to Congress" estimates than 754,000 people nationwide live in emergency shelter, transitional housing, or on the streets on any given night. In California, the homeless population contains an estimated 188,300 people, including more than 24,000 veterans and more than 17,700 children under the age of 18.
"Understanding homelessness is a necessary step to ending it, especially for those persons living with a chronic condition such as mental illness, an addiction, or a physical disability," said HUD Secretary Alphonso Jackson. According to the report, 65 percent of the adult homeless population are men, 41 percent are between 31 and 50 years of age, and 75 percent are in central cities.
http://www.hud.gov/news/release.cfm?content=pr07-020.cfm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - January 07: $559,640 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region January 07:
Santa Barbara So. Coast $1,150,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region January 07:
High Desert $317,380 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Third Quarter 06:
24 percent (Source: C.A.R.)
Mortgage rates - week ending 2/22:
30-yr. fixed: 6.22%; Fees/points: 0.5%
15-yr. fixed: 5.97%; Fees/points: 0.5%
1-yr. adjustable: 5.49%; Fees/points: 0.7%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 200,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - January 07: $559,640 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region January 07:
Santa Barbara So. Coast $1,150,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region January 07:
High Desert $317,380 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Third Quarter 06:
24 percent (Source: C.A.R.)
Mortgage rates - week ending 2/22:
30-yr. fixed: 6.22%; Fees/points: 0.5%
15-yr. fixed: 5.97%; Fees/points: 0.5%
1-yr. adjustable: 5.49%; Fees/points: 0.7%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 200,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, February 21, 2007
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
HOUSING STARTS DROP 38 PERCENT NATIONWIDE
BUILDER CONFIDENCE HITS EIGHT-MONTH HIGH
CONFORMING LOAN LIMITS, FHA REFORM LEAD LEGISLATIVE PRIORITIES FOR 2007
C.A.R. SCHOLARSHIP FOUNDATION AWARDS EIGHT SCHOLARSHIPS
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HOUSING STARTS DROP 38 PERCENT NATIONWIDE
The seasonally adjusted annual rate for privately owned housing starts declined for the 10th consecutive month in January, falling to a rate of 1.4 million units, according to figures recently released from the U.S. Dept. of Commerce. Last month's construction pace was down 14.3 percent from December and down 37.8 percent from a year ago. Single-family starts decreased 38.9 percent from January 2006, to a rate of 1.1 million units, while starts for multifamily structures declined 34.9 percent to a rate of 276,000 units.
Builders are working to reduce their inventory levels before starting new single-family homes, according to a National Association of Home Builders (NAHB) report. "Home sales apparently stabilized late last year, but the overhang of unsold housing inventory still is quite heavy," said NAHB Chief Economist David Seiders. "Builders have been cutting back on starts of new units to bring supply and demand back into balance."
The construction pace for single-family housing units declined across the nation in December, falling 47.8 percent in the West, 45.5 percent in the Midwest, 35.1 percent in the South, and 25.7 percent in the Northeast.
http://www.census.gov/const/newresconst_200701.pdf
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
BUILDER CONFIDENCE HITS EIGHT-MONTH HIGH
The confidence level of the nation's home builders continued to improve this month, reaching its highest level since June 2006, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The increase reflects the continued stabilization of buyer demand, driven in part by lower energy prices, favorable mortgage rates, and employment growth. The seasonally adjusted HMI stands at 40 this month, up five points from 35 in January but down 16 points from a year ago. An HMI below 50 indicates more builders view sales conditions as poor versus good.
According to the report, builder confidence improved across the country in February, with builders in the Northeast demonstrating the largest jump in confidence. "Builders are becoming increasingly convinced that the abrupt downslide in home sales is in their rear view mirrors and they see better times as they look at the road ahead," said NAHB Chief Economist David Seiders.
Each of the HMI's three components increased this month, including a seven-point gain to 55 in the sales expectations index. The component measuring current sales improved six points to 42, while the confidence gauge for buyer traffic increased five points to 31.
Wednesday, February 21, 2007
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
HOUSING STARTS DROP 38 PERCENT NATIONWIDE
BUILDER CONFIDENCE HITS EIGHT-MONTH HIGH
CONFORMING LOAN LIMITS, FHA REFORM LEAD LEGISLATIVE PRIORITIES FOR 2007
C.A.R. SCHOLARSHIP FOUNDATION AWARDS EIGHT SCHOLARSHIPS
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HOUSING STARTS DROP 38 PERCENT NATIONWIDE
The seasonally adjusted annual rate for privately owned housing starts declined for the 10th consecutive month in January, falling to a rate of 1.4 million units, according to figures recently released from the U.S. Dept. of Commerce. Last month's construction pace was down 14.3 percent from December and down 37.8 percent from a year ago. Single-family starts decreased 38.9 percent from January 2006, to a rate of 1.1 million units, while starts for multifamily structures declined 34.9 percent to a rate of 276,000 units.
Builders are working to reduce their inventory levels before starting new single-family homes, according to a National Association of Home Builders (NAHB) report. "Home sales apparently stabilized late last year, but the overhang of unsold housing inventory still is quite heavy," said NAHB Chief Economist David Seiders. "Builders have been cutting back on starts of new units to bring supply and demand back into balance."
The construction pace for single-family housing units declined across the nation in December, falling 47.8 percent in the West, 45.5 percent in the Midwest, 35.1 percent in the South, and 25.7 percent in the Northeast.
http://www.census.gov/const/newresconst_200701.pdf
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
BUILDER CONFIDENCE HITS EIGHT-MONTH HIGH
The confidence level of the nation's home builders continued to improve this month, reaching its highest level since June 2006, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The increase reflects the continued stabilization of buyer demand, driven in part by lower energy prices, favorable mortgage rates, and employment growth. The seasonally adjusted HMI stands at 40 this month, up five points from 35 in January but down 16 points from a year ago. An HMI below 50 indicates more builders view sales conditions as poor versus good.
According to the report, builder confidence improved across the country in February, with builders in the Northeast demonstrating the largest jump in confidence. "Builders are becoming increasingly convinced that the abrupt downslide in home sales is in their rear view mirrors and they see better times as they look at the road ahead," said NAHB Chief Economist David Seiders.
Each of the HMI's three components increased this month, including a seven-point gain to 55 in the sales expectations index. The component measuring current sales improved six points to 42, while the confidence gauge for buyer traffic increased five points to 31.
http://www.nahb.org/news_details.aspx?newsID=4062&print=false
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CONFORMING LOAN LIMITS, FHA REFORM LEAD LEGISLATIVE PRIORITIES FOR 2007
Conforming loan limits and Federal Housing Administration (FHA) reform are among C.A.R.'s top federal legislative priorities for 2007. During the 109th session of Congress, which ended in December 2006, the U.S. House of Representatives passed H.R. 1461, a measure that is intended to strengthen the regulation and oversight of Fannie Mae and Freddie Mac, also known as the government-sponsored enterprises (GSEs). The legislation also would allow the new GSE regulator to set high-cost conforming loan limits by an area's median home price, up to 150 percent of the national conforming loan limit. With the U.S. Senate failing to take action on the measure, C.A.R. will work with the 110th Congress to pass final legislation for GSE oversight and raise high-cost conforming loan limits.
Also this year, C.A.R. will continue to fight for reform that will make FHA loans a more viable option for American homeowners; work with Congress to update insurance regulations so that insurance companies are better prepared for natural disasters; and work with the House Ways and Means Committee to prepare legislation that revises the need for sellers to provide their taxpayer identification numbers to buyers under the Federal Investment in Real Property Tax Act (FIRPTA).
http://www.car.org/index.php?id=NjAz
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. SCHOLARSHIP FOUNDATION AWARDS EIGHT SCHOLARSHIPS
The C.A.R. Scholarship Foundation recently awarded eight scholarships to college students planning careers in real estate. The scholarships were awarded in January at the Association's board of directors meetings in Monterey. Recipients of the award are enrolled in two- to four-year colleges or universities in California, have completed a minimum of two real estate or real estate-related college-level courses, and are currently enrolled in at least one real estate or real estate-related course.
"We are pleased that scholarships were awarded to recipients from across the state, all of whom have demonstrated a serious commitment to a career in real estate," said C.A.R. President Colleen Badagliacco. Scholarships awarded by the C.A.R. Scholarship Foundation address C.A.R.'s goal of bringing new professionals into the real estate industry and training them with the skills required to effectively meet the needs of future homeowners in California.
http://www.car.org/index.php?id=MzcwODQ=
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price
December 06: $567,690
(Source: C.A.R.)
Calif. highest median home price by C.A.R. region
December 06: Santa Barbara So. Coast $1,250,000
(Source: C.A.R.)
Calif. lowest median home price by C.A.R. region
December 06: High Desert $324,560
(Source: C.A.R.)
Calif. First-time Buyer Affordability Index
Third Quarter 06: 24 percent
(Source: C.A.R.)
Mortgage rates - week ending 2/15:
30-yr. fixed: 6.30%; Fees/points: 0.4%
15-yr. fixed: 6.03%; Fees/points: 0.4%
1-yr. adjustable: 5.52%; Fees/points: 0.6%
(Source: Freddie Mac)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 200,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, February 14, 2007
Brought to you by David Breidenbach, 619-888-3322 and the CALIFORNIA ASSOCIATION OF REALTORS®
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
TEXAS, CALIFORNIA POST MOST NEW FORECLOSURE FILINGS
MORTGAGE LOAN APPLICATIONS RISE
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
TEXAS, CALIFORNIA POST MOST NEW FORECLOSURE FILINGS
The number of foreclosure filings across the nation exceeded 100,000 for the sixth consecutive month in January, with foreclosure activity increasing in all but 17 states, according to RealtyTrac's "January 2007 U.S. Foreclosure Market Report." Texas and California led the country with the most foreclosure filings last month, with 14,728 and 14,430 foreclosures, respectively. In California, foreclosures were up 14.3 percent compared with the previous month and up 54.3 percent from January 2006.
Wednesday, February 14, 2007
Brought to you by David Breidenbach, 619-888-3322 and the CALIFORNIA ASSOCIATION OF REALTORS®
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
TEXAS, CALIFORNIA POST MOST NEW FORECLOSURE FILINGS
MORTGAGE LOAN APPLICATIONS RISE
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
TEXAS, CALIFORNIA POST MOST NEW FORECLOSURE FILINGS
The number of foreclosure filings across the nation exceeded 100,000 for the sixth consecutive month in January, with foreclosure activity increasing in all but 17 states, according to RealtyTrac's "January 2007 U.S. Foreclosure Market Report." Texas and California led the country with the most foreclosure filings last month, with 14,728 and 14,430 foreclosures, respectively. In California, foreclosures were up 14.3 percent compared with the previous month and up 54.3 percent from January 2006.
According to the report, foreclosures were up 25 percent from a year ago across the nation in January, with a national foreclosure rate of one new filing for every 886 U.S. households.
http://www.realtytrac.com/ContentManagement/pressrelease.aspx?ChannelID=9&ItemID=1907&accnt=64847
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
MORTGAGE LOAN APPLICATIONS RISE
The Market Composite Index, a measure of mortgage loan application volume, increased 1.5 percent to 639.8 on a seasonally adjusted basis for the week ending Feb. 9 compared with 630.1 one week earlier, according to a report released today by the Mortgage Bankers Association (MBA). On an unadjusted basis, the Index increased 4.5 percent for the week ending Feb. 9 compared with the previous week and was up 10.9 percent compared with the same week one year earlier.
http://www.realtytrac.com/ContentManagement/pressrelease.aspx?ChannelID=9&ItemID=1907&accnt=64847
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
MORTGAGE LOAN APPLICATIONS RISE
The Market Composite Index, a measure of mortgage loan application volume, increased 1.5 percent to 639.8 on a seasonally adjusted basis for the week ending Feb. 9 compared with 630.1 one week earlier, according to a report released today by the Mortgage Bankers Association (MBA). On an unadjusted basis, the Index increased 4.5 percent for the week ending Feb. 9 compared with the previous week and was up 10.9 percent compared with the same week one year earlier.
The refinance share of mortgage activity remained unchanged at 46.1 percent of total applications for the week ending Feb. 9. The adjustable-rate mortgage (ARM) share of activity decreased to 21.2 for the week ending Feb. 9 from 22.3 percent of total applications from the previous week.
http://www.mortgagebankers.org/NewsandMedia/PressCenter/48508.htm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - December 06: $567,690 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region December 06:
Santa Barbara So. Coast $1,250,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region December 06:
High Desert $324,560 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Third Quarter 06:
24 percent (Source: C.A.R.)
Mortgage rates - week ending 2/8:
30-yr. fixed: 6.28%; Fees/points: 0.3%
15-yr. fixed: 6.02%; Fees/points: 0.3%
1-yr. adjustable: 5.49%; Fees/points: 0.7%
(Source: Freddie Mac)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - December 06: $567,690 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region December 06:
Santa Barbara So. Coast $1,250,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region December 06:
High Desert $324,560 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Third Quarter 06:
24 percent (Source: C.A.R.)
Mortgage rates - week ending 2/8:
30-yr. fixed: 6.28%; Fees/points: 0.3%
15-yr. fixed: 6.02%; Fees/points: 0.3%
1-yr. adjustable: 5.49%; Fees/points: 0.7%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 200,000 REALTORS® statewide.
Edited by Mark Giberson, Amanda Hopkins
Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, February 07, 2007
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
U.S. HOMEOWNERSHIP RATE HOLDS STEADY
SHARE OF FIRST-TIME BUYERS SECOND LOWEST ON RECORD IN 2006
U.S. HOME BUYERS WILLING TO PAY PREMIUM FOR GREEN HOMES
SUPREME COURT UPHOLDS PROTECTIONS FOR CALIFORNIA HOMEOWNERS
PENDING HOME SALES INDICATE SUSTAINABLE SALES ACTIVITY
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
U.S. HOMEOWNERSHIP RATE HOLDS STEADY
Nearly 75.8 million of 109.9 million American households were owner-occupied during the fourth quarter of 2006, maintaining a national homeownership rate that has hovered around 69 percent for 12 consecutive quarters, the U.S. Census Bureau reported last week. Regionally, the homeownership rate was lowest in the West at 64.5 percent and highest in the Midwest at 73 percent. Among age groups, the rate of homeownership was 81.2 percent for those aged 65 and up; 80.7 percent for those between 55 and 64; 76.4 percent for those between 45 and 54; 68.9 percent for those between 35 and 44; and 42.8 percent for those 35 and younger. The homeownership rate for households earning a family income equal to or greater than the median family income was 84.5 percent last quarter.
The Census also reported that more than 16.7 million housing units stood vacant nationwide at the end of 2006, up from 15.6 million vacant units at the end of 2005. The vacancy rate for owned units jumped to a record 2.7 percent, up from 2 percent a year earlier. At the end of 2006, 2.1 million vacant homes were listed for sale.
http://www.census.gov/hhes/www/housing/hvs/qtr406/q406press.pdf
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
SHARE OF FIRST-TIME BUYERS SECOND LOWEST ON RECORD IN 2006
Affordability concerns continued to impact the residential real estate market in California, with the share of first-time buyers declining to their second lowest level from 30.5 percent in 2005 to 27.1 percent in 2006, according to C.A.R.'s "The State of the California Housing Market" report, released earlier this week. Based largely on C.A.R.'s 26th Annual Housing Market Survey, the report examined trends in buyer and seller behavior during 2006, a transition year in which statewide sales of existing single-family homes decreased 23 percent, while price appreciation slowed dramatically as the year progressed.
"Over the period 2003 through 2005, inventories were lean, multiple offers were common, and buyers and sellers alike knew they needed to move quickly to consummate a transaction," said C.A.R. President Colleen Badagliacco. "But as the market began to slow in late 2005, buyers sensed that they would get a better deal if they waited, while sellers still hoped to sell their home at a premium. This drove a wedge between buyer psychology and seller psychology, creating more market friction and leading to a slowdown in activity."
The survey also found that the share of buyers who used a second mortgage climbed from 38 percent in 2005 to 43 percent in 2006, more than triple the percentage since 2001 and the highest percentage since 1982. Additionally, more than one-fifth of all homes purchased were financed with a zero-down payment mortgages, up from 19.7 percent last year. Recent use of zero-down mortgages has increased significantly since 2000, when they were used by just 4.5 percent of buyers.
http://www.car.org/index.php?id=MzcwNzU=
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
U.S. HOME BUYERS WILLING TO PAY PREMIUM FOR GREEN HOMES
Home buyers continue to show an increased interest in environmentally-friendly homes, and many are willing to pay a premium for such homes, according to a recent survey of U.S. home builders conducted by Green Builder® Media. More than half of the home builders surveyed report home buyers are willing to pay a premium of 11 to 25 percent for homes built with "green" construction practices, which include on-site energy production, careful land use, and renewable raw materials. The average "green" home buyer is between the ages of 35 and 50, has a college education, and is knowledgeable about green products.
Home buyers' rising interest in green building has prompted more home builders to adopt green-building practices, according to the report. Currently 51 percent of those surveyed report using green products or practices on a regular basis, but 96 percent plan to increase their use of green processes and materials in 2007.
http://www.imrecommunications.com/GreenBuilding.pdf
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
SUPREME COURT UPHOLDS PROTECTIONS FOR CALIFORNIA HOMEOWNERS
The Supreme Court recently ruled that insurers may not depreciate the cost of labor when paying claims for homeowners' insurance, a practice that often increases homeowners' out-of-pocket expenses when repairing damage to their homes. In 2003, the California Department of Insurance (CDI) amended the Fair Claims Settlement Practice Regulations to set more stringent standards for insurers, resulting in a lawsuit filed by insurance trade organizations. Regarding the issue of "depreciating labor costs," the Supreme Court upheld CDI's previous claim that unlike material items, the cost of labor does not lose value over time and cannot be depreciated.
http://www.insurance.ca.gov/0400-news/0100-press-releases/0060-2007/release013-07.cfm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
PENDING HOME SALES INDICATE SUSTAINABLE SALES ACTIVITY
The latest pending home sales data tracked by NAR indicate a steady pace of home sales in the coming months, according to a recent report. In December, the Pending Home Sales Index (PHSI), which gauges home sales activity for upcoming months based on the number of transactions that have signed contracts but are not yet closed, stood at 112.4, up 4.9 percent from the previous month and down 4.4 percent from a year ago. A PHSI of 100 or more generally indicates a high level of home sales activity. The year-to-year declines in the index have narrowed over the last six months.
Despite month-to-month gains, the PHSI declined across the nation in December when compared with the readings a year ago. On a regional basis, the PHSI was highest in the South, where it declined 4.2 percent to 129.8. In the West, the index fell 4.9 percent to 112.2. The PHSI also declined in the Midwest and Northeast regions, falling to 103.2 and 89.9, respectively.
http://www.realtor.org/press_room/news_releases/2007/phs_jan07_index_rises.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - December 06: $567,690 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region December 06:
Santa Barbara So. Coast $1,250,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region December 06:
High Desert $324,560 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Third Quarter 06:
24 percent (Source: C.A.R.)
Mortgage rates - week ending 2/1:
30-yr. fixed: 6.34%; Fees/points: 0.4%
15-yr. fixed: 6.06%; Fees/points: 0.4%
1-yr. adjustable: 5.54%; Fees/points: 0.7%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 200,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
AOL now offers free email to everyone. Find out more about what's free from AOL at AOL.com.
Contact Info
David Breidenbach
DRE license # 01297253
California
DRE license # 01297253
California
Phone
(619) 888-3322
Fax
(858) 547-4433
(619) 888-3322
Fax
(858) 547-4433
CENTURY 21 Award
2355 Northside Drive Suite 300
San Diego, CA 92108
San Diego, CA 92108
Articles & Links
- Getting Your Finances in Order
- Saving for the Down Payment
- Your Credit History
- How Mortgage Loans Work
- Closing Costs
- Free Reports
- Different Types of Loans
- Refinancing
- Length of Your Mortgage
- Leveraging Your Money
- When To Pay Points
- Adjustable-Rate Mortgages
- How Much Can You Afford?
- Free Moving Quote
- Mortgage Glossary
- California Association of Realtors
- The Offical Travel Resource For The San Diego Region
- San Diego Convention Center
- U. S. Environmental Protection Agency, Mold Resources
- City of San Diego, Recreation
- Carmel Valley, San Diego
- City of Del Mar Webpage
- El Cajon
- Encinitas
- Escondido Ca.
- Fallbrook Ca.
- City of La Mesa
- Cardiff-by-the -Sea
- City of Carlsbad
- City of Chula Vista
- City of National City
- City of Oceanside
- Rancho Bernardo
- Santee CA
- City of Solana Beach
- San Diego County Webpage
- San Diego Chargers
- Salvation Army
- San Diego Padres
- San Diego Zoo
- Sea World San Diego
- San Diego Sports Arena (sports and much more)
- San Diego U-T, (Sign On San Diego)
- United States Airforce
- United States Coast Guard
- United States Marines
- United States Navy
- Easter Seals
- MICHIGAN R L Brown
Other Links
- Home Advice
Get the answers on home selling
and buying. - Real Estate News
Find out what's happening in real
estate. - Business Partners Check out the best in local home-related services.
- Automated E-mail Listings
Service Sign up to automatically receive new listings today!
 Website Design and hosting by AgentAdvantage, official agent and broker website provider of Homes.com
Copyright ©2000-2010 Homes.com, Inc. All Rights Reserved. Privacy Policy. Full Terms and Conditions.  
|