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California Association Of Realtors Newsline 2006
C.A.R. Newsline Archive, 2006
Wednesday, February 28, 2007
Brought to you by David Breidenbach, 619.888.3322, and the CALIFORNIA ASSOCIATION OF REALTORS®
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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
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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
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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
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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=
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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
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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=
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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
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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
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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
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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.)
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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
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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
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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
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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
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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
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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
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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=
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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)
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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.)
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Wednesday, February 14, 2007
Brought to you by David Breidenbach, 619-888-3322 and the CALIFORNIA ASSOCIATION OF REALTORS®
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TEXAS, CALIFORNIA POST MOST NEW FORECLOSURE FILINGS
MORTGAGE LOAN APPLICATIONS RISE
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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®
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TEXAS, CALIFORNIA POST MOST NEW FORECLOSURE FILINGS
MORTGAGE LOAN APPLICATIONS RISE
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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
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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
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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
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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
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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
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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.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, December 27, 2006
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
Wednesday, December 27, 2006
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
and David Breidenbach, Realtor® 619-888-3322, www.BreidyPropertiesInc.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. REPORTS HOME SALES DECREASE 22.2 PERCENT IN NOVEMBER
STATE'S SECOND LARGEST HOME INSURER REQUESTS RATE DECREASE
ONLINE VIDEO CLIP: LEGAL CHALLENGES IN A CHANGING MARKET
LEADING INDEX SIGNALS SLOW ECONOMIC GROWTH IN COMING MONTHS
CALIFORNIA REMAINS THE MOST POPULOUS STATE
ECONOMISTS TO DISCUSS CHANGING ECONOMY AT JAN. 31 SUMMIT
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. REPORTS HOME SALES DECREASE 22.2 PERCENT IN NOVEMBER
The median price of an existing single-family home in California increased 1.4 percent in November and sales decreased 22.2 percent compared with the same period a year ago, C.A.R. recently reported. "After fairly steep declines in sales during the first half of the year, the market appears to have stabilized at about 450,000 sales on a seasonally adjusted annualized basis," said C.A.R. President Colleen Badagliacco. "The median price is holding steady in the $545,000 to $550,000 range, and increased just 1.4 percent last month compared with a year ago."
According to the report, the median price of an existing, single-family detached home in California during November 2006 was $555,290, a 1.4 percent increase over the revised $547,870 median for November 2005. Also last month, closed escrow sales of existing, single-family detached homes in California totaled 450,930 at a seasonally adjusted annualized rate, down 22.2 percent compared with the sales pace recorded one year earlier and up 1.7 percent from home resale activity in October.
"Although the statewide median price is on track to post just under a 7 percent increase for the year, there is a mixed picture across the state, with more regions reporting year-to-year declines than increases at this point," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "We've seen three or more months of year-to-year price declines in areas where there was a lot of home-building activity and in those areas that are popular for second-home purchases."
http://www.car.org/index.php?id=MzY4ODc
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
STATE'S SECOND LARGEST HOME INSURER REQUESTS RATE DECREASE
Farmers Insurance, the state's second largest provider of homeowners insurance, has requested an 18 percent decrease in homeowner rates, according to today's announcement from the Calif. Dept. of Insurance. Nearly 1 million Californians will be affected by the rate cuts, saving nearly $171 million. Several other insurance companies, including Safeco, State Farm, Hartford, USAA, Nationwide, and Kemper filed homeowner premium reductions earlier this year, reducing homeowners' insurance premiums by more than $439 million.
http://www.insurance.ca.gov/0400-news/0100-press-releases/0070-2006/release-145-2006.cfm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
ONLINE VIDEO CLIP: LEGAL CHALLENGES IN A CHANGING MARKET
Foreclosure, mortgage fraud, contract disputes--the housing market has changed, and so have the legal challenges that REALTORS® face in their everyday business. Through a short video posted on C.A.R. Online (www.car.org), you can learn practical tips and advice on how to avoid legal pitfalls from experts such as C.A.R. Assistant General Counsel Gov Hutchinson and attorneys from C.A.R.'s Strategic Defense Program. To view the video, visit http://www.car.org/index.php?id=MzY4OTc.
http://www.car.org/index.php?id=MzY4OTc
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
LEADING INDEX SIGNALS SLOW ECONOMIC GROWTH IN COMING MONTHS
The U.S. leading index increased for the third consecutive month in November and now stands at 138.2 (1996=100), The Conference Board recently reported. Despite its recent upward trend, the index remains 0.6 percent below the high of 139.1 reached in January and continues to signal slow economic growth in the near term. Throughout 2006, declining housing permits have negatively impacted the leading index.
http://www.car.org/index.php?id=MzY4ODc
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
STATE'S SECOND LARGEST HOME INSURER REQUESTS RATE DECREASE
Farmers Insurance, the state's second largest provider of homeowners insurance, has requested an 18 percent decrease in homeowner rates, according to today's announcement from the Calif. Dept. of Insurance. Nearly 1 million Californians will be affected by the rate cuts, saving nearly $171 million. Several other insurance companies, including Safeco, State Farm, Hartford, USAA, Nationwide, and Kemper filed homeowner premium reductions earlier this year, reducing homeowners' insurance premiums by more than $439 million.
http://www.insurance.ca.gov/0400-news/0100-press-releases/0070-2006/release-145-2006.cfm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
ONLINE VIDEO CLIP: LEGAL CHALLENGES IN A CHANGING MARKET
Foreclosure, mortgage fraud, contract disputes--the housing market has changed, and so have the legal challenges that REALTORS® face in their everyday business. Through a short video posted on C.A.R. Online (www.car.org), you can learn practical tips and advice on how to avoid legal pitfalls from experts such as C.A.R. Assistant General Counsel Gov Hutchinson and attorneys from C.A.R.'s Strategic Defense Program. To view the video, visit http://www.car.org/index.php?id=MzY4OTc.
http://www.car.org/index.php?id=MzY4OTc
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
LEADING INDEX SIGNALS SLOW ECONOMIC GROWTH IN COMING MONTHS
The U.S. leading index increased for the third consecutive month in November and now stands at 138.2 (1996=100), The Conference Board recently reported. Despite its recent upward trend, the index remains 0.6 percent below the high of 139.1 reached in January and continues to signal slow economic growth in the near term. Throughout 2006, declining housing permits have negatively impacted the leading index.
According to the report, the coincident and lagging indexes, which measure current and past economic activity, respectively, also increased in November. The coincident index edged up 0.2 percent to 124, while the lagging index rose 0.5 percent to 124.9.
http://www.conference-board.org/economics/bci/pressRelease_output.cfm?cid=1
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CALIFORNIA REMAINS THE MOST POPULOUS STATE
The population of the U.S. grew by 2.9 million people between July 1, 2005, and July 1, 2006, according to a recent report by the U.S. Census Bureau. More than 299 million people reside in the nation, and the five most populous states, led by California with 36.5 million residents, account for 37 percent of the country's population. Regionally, the West comprises 23 percent of the nation's total population.
http://www.conference-board.org/economics/bci/pressRelease_output.cfm?cid=1
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CALIFORNIA REMAINS THE MOST POPULOUS STATE
The population of the U.S. grew by 2.9 million people between July 1, 2005, and July 1, 2006, according to a recent report by the U.S. Census Bureau. More than 299 million people reside in the nation, and the five most populous states, led by California with 36.5 million residents, account for 37 percent of the country's population. Regionally, the West comprises 23 percent of the nation's total population.
Five of the 10 fastest-growing states between 2005 and 2006 are in the West, including Arizona, Nevada, Idaho, Utah, and Colorado. With a growth rate of 3.6 percent, Arizona became the nation's fastest-growing state, a title previously held by Nevada for 19 consecutive years.
http://www.beverlyhillschamber.com/events.asp?id=11&eventsid=522
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
ECONOMISTS TO DISCUSS CHANGING ECONOMY AT JAN. 31 SUMMIT
A panel of experts will discuss what's next for the nation's economy with regard to real estate, oil prices, interest rates, and consumer spending at the "The Economic Summit 2007," an informative and educational panel discussion hosted by the Beverly Hills Chamber of Commerce and the Milken Institute. Moderated by Donald Straszheim, vice chairman of Roth Capital Partners LLC, the event will focus on "The Economy in Transition." Panelists include Christine K. Augustine, managing director, Bear, Stearns & Co.; Ron Insana, senior analyst, CNBC; Tobias Levkovich, chief U.S. equity strategist, Smith Barney; and Kathleen Stephansen, head of global economics, Credit Suisse Securities (USA), LLC.
http://www.beverlyhillschamber.com/events.asp?id=11&eventsid=522
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
ECONOMISTS TO DISCUSS CHANGING ECONOMY AT JAN. 31 SUMMIT
A panel of experts will discuss what's next for the nation's economy with regard to real estate, oil prices, interest rates, and consumer spending at the "The Economic Summit 2007," an informative and educational panel discussion hosted by the Beverly Hills Chamber of Commerce and the Milken Institute. Moderated by Donald Straszheim, vice chairman of Roth Capital Partners LLC, the event will focus on "The Economy in Transition." Panelists include Christine K. Augustine, managing director, Bear, Stearns & Co.; Ron Insana, senior analyst, CNBC; Tobias Levkovich, chief U.S. equity strategist, Smith Barney; and Kathleen Stephansen, head of global economics, Credit Suisse Securities (USA), LLC.
The Economic Summit 2007 will take place on Jan. 31 from 11 a.m. to 2 p.m. at the Beverly Hilton Hotel in Beverly Hills. Tickets are $68 for members of the Beverly Hills Chamber of Commerce and $75 for non-members. Click on the link below to register.
http://www.beverlyhillschamber.com/events.asp?id=11&eventsid=522
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - November 06: $555,290 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region November 06:
Santa Barbara So. Coast $1,083,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region November 06:
High Desert $332,340 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Third Quarter 06:
24 percent (Source: C.A.R.)
Mortgage rates - week ending 12/21:
30-yr. fixed: 6.13%; Fees/points: 0.4%
15-yr. fixed: 5.89%; Fees/points: 0.4%
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.
http://www.beverlyhillschamber.com/events.asp?id=11&eventsid=522
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - November 06: $555,290 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region November 06:
Santa Barbara So. Coast $1,083,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region November 06:
High Desert $332,340 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Third Quarter 06:
24 percent (Source: C.A.R.)
Mortgage rates - week ending 12/21:
30-yr. fixed: 6.13%; Fees/points: 0.4%
15-yr. fixed: 5.89%; Fees/points: 0.4%
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 © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, December 20, 2006
Wednesday, December 20, 2006
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
and David Breidenbach, Realtor® 619-888-3322, www.BreidyPropertiesInc.com
The number of Americans turning to the Internet for real estate information has more than doubled since 2000, according to a recent study by the Pew Internet & American Life Project. During the past six years, the number of online users who have searched for a place to live via the Internet has grown to 39 percent, up from 27 percent in 2000. This translates to more than one quarter of all adults in the U.S.
According to the study, online users ages 18 to 29 are the most likely to have searched the Internet for housing information compared with older adults, and youth is the strongest characteristic associated with the likelihood an Internet user would do so. Adults with more than six years of online experience and those with broadband connections at home also are more likely to explore online resources for housing information compared with users who have been online for shorter time spans or those who rely on dial-up connections.
http://www.pewinternet.org/pdfs/PIP_Place_to_Live_2006.pdf
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HOUSING STARTS UP BUT PERMITS DECLINE IN NOV.
Total housing starts in November increased 6.7 percent to a seasonally adjusted annual rate of 1.588 million units due to unseasonably warm weather, according to a U.S. Dept. of Commerce report released yesterday. November's rise in housing starts followed a 13.8 percent drop in October when weather conditions were unusually harsh, according to the report. On a year-over-year basis, total housing starts were down 25.5 percent in November.
Regionally, housing starts increased in two of four regions in November. Construction of new homes and apartments rose 8.6 percent in the Northeast and 18.5 percent in the South. Housing starts declined in the Midwest by 6.3 percent for the month and in the West by 8.1 percent. All four regions reported a pace of construction well below a year earlier.
Builders reduced the pace of permit issuance 3 percent in November to 1.506 million units, a 31.3 percent decline compared to the same period a year ago, according to a National Association of Home Builders (NAHB) report. "Builders are acutely aware of the large inventory of unsold homes that overhangs the market. While they believe that home buyer demand has stabilized, builders continue to be cautious," said NAHB President David Pressly. "The ongoing drop in permits shows that builders are keeping a close eye on market conditions and working to control their inventories."
Single-family permit issuance was down 3.1 percent on a national basis to a pace of 1.144 million units for the month. This was 33.3 percent below a year earlier. The pace of multifamily permit issuance was down 2.7 percent to 362,000 units for the month and 23.8 percent below November 2005, according to the report.
http://www.nahb.org/news_details.aspx?newsID=3798
According to the study, online users ages 18 to 29 are the most likely to have searched the Internet for housing information compared with older adults, and youth is the strongest characteristic associated with the likelihood an Internet user would do so. Adults with more than six years of online experience and those with broadband connections at home also are more likely to explore online resources for housing information compared with users who have been online for shorter time spans or those who rely on dial-up connections.
http://www.pewinternet.org/pdfs/PIP_Place_to_Live_2006.pdf
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HOUSING STARTS UP BUT PERMITS DECLINE IN NOV.
Total housing starts in November increased 6.7 percent to a seasonally adjusted annual rate of 1.588 million units due to unseasonably warm weather, according to a U.S. Dept. of Commerce report released yesterday. November's rise in housing starts followed a 13.8 percent drop in October when weather conditions were unusually harsh, according to the report. On a year-over-year basis, total housing starts were down 25.5 percent in November.
Regionally, housing starts increased in two of four regions in November. Construction of new homes and apartments rose 8.6 percent in the Northeast and 18.5 percent in the South. Housing starts declined in the Midwest by 6.3 percent for the month and in the West by 8.1 percent. All four regions reported a pace of construction well below a year earlier.
Builders reduced the pace of permit issuance 3 percent in November to 1.506 million units, a 31.3 percent decline compared to the same period a year ago, according to a National Association of Home Builders (NAHB) report. "Builders are acutely aware of the large inventory of unsold homes that overhangs the market. While they believe that home buyer demand has stabilized, builders continue to be cautious," said NAHB President David Pressly. "The ongoing drop in permits shows that builders are keeping a close eye on market conditions and working to control their inventories."
Single-family permit issuance was down 3.1 percent on a national basis to a pace of 1.144 million units for the month. This was 33.3 percent below a year earlier. The pace of multifamily permit issuance was down 2.7 percent to 362,000 units for the month and 23.8 percent below November 2005, according to the report.
http://www.nahb.org/news_details.aspx?newsID=3798
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
and David Breidenbach, Realtor® 619-888-3322, www.BreidyPropertiesInc.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
MORE AMERICANS TURN TO INTERNET FOR REAL ESTATE INFORMATION
HOUSING STARTS UP BUT PERMITS DECLINE IN NOV.
ORANGE COUNTY MAN GUILTY OF MORTGAGE, BANKRUPTCY FRAUD
BUILDER CONFIDENCE POSTS SLIGHT DECLINE IN DEC.
MORTGAGE LOAN APPS DECLINE
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
MORE AMERICANS TURN TO INTERNET FOR REAL ESTATE INFORMATION
MORE AMERICANS TURN TO INTERNET FOR REAL ESTATE INFORMATION
HOUSING STARTS UP BUT PERMITS DECLINE IN NOV.
ORANGE COUNTY MAN GUILTY OF MORTGAGE, BANKRUPTCY FRAUD
BUILDER CONFIDENCE POSTS SLIGHT DECLINE IN DEC.
MORTGAGE LOAN APPS DECLINE
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
MORE AMERICANS TURN TO INTERNET FOR REAL ESTATE INFORMATION
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
ORANGE COUNTY MAN GUILTY OF MORTGAGE, BANKRUPTCY FRAUD
Earlier this month, Lorenzo Espinoza of Newport Coast, Calif., pleaded guilty to mortgage fraud, bankruptcy fraud, money laundering, and willfully failing to pay income taxes, according to a recent release from the U.S. Dept. of Justice. The actions caused more than $2.7 million in losses to the federal government and mortgage lenders. As a consequence of the guilty plea, Espinoza faces a maximum penalty of 26 years in federal prison.
Between April 1995 and May 2001, Espinoza and his associates fraudulently obtained mortgage loans that went into default by providing down payments and false documentation on behalf of phony buyers. Once the homes were purchased, the "buyers" would default on the mortgages, leaving lenders with properties valued lower than the amounts funded through the fraudulent mortgages. During the same time span, Espinoza also failed to pay income taxes, engaged in bankruptcy fraud, and participated in a money laundering scheme.
http://www.usdoj.gov/usao/cac/pr2006/165.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
BUILDER CONFIDENCE POSTS SLIGHT DECLINE IN DEC.
Heading into the holidays, builders of new single-family homes continue to believe that the worst of the downswing in home buying is behind them, according to a report from the National Association of Home Builders (NAHB). The NAHB/Wells Fargo Housing Market Index (HMI) for December stood at 32, one point below November's reading but above the recent low of 30 in September.
"The HMI has come off September's low point, and other recent indicators confirm that buying conditions have improved and that demand is stabilizing, including improvements in measures of housing affordability, strengthening consumer assessments of home buying conditions, and an upswing in applications for mortgages to buy homes," said NAHB Chief Economist David Seiders. "Builders sense that the tide is turning in terms of buyer demand for their product and are feeling somewhat better about the prospects for home sales."
Derived from a monthly survey that NAHB has been conducting for 20 years, the NAHB/Wells Fargo Housing Market Index (HMI) gauges builder perceptions of current single-family home sales and sales expectations for the next six months as either "good," "fair," or "poor," where any number above 50 indicates that more builders view sales conditions as good than poor. The survey also asks builders to rate traffic of prospective buyers as either "high to very high," "average," or "low to very low." Scores for each component are then used to calculate a seasonally adjusted index.
Regionally, the HMI posted the biggest gain in the Midwest, which has shown the greatest weakness in this measure for many months. That region posted a 7-point gain to 22 on the confidence scale, while the Northeast was unchanged at 37, the South dropped a point to 39, and the West declined four points to 31, according to the report.
http://www.nahb.org/news_details.aspx?newsID=3768
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
MORTGAGE LOAN APPS DECLINE
The Market Composite Index, a measure of mortgage loan application volume, declined 10.2 percent to 647.6 on a seasonally adjusted basis for the week ending Dec. 15 compared with 721.2 one week earlier, according to a report released today by the Mortgage Bankers Association (MBA). On an unadjusted basis, the Index decreased 11.6 percent for the week ending Dec. 15 compared with the previous week and was up 13.9 percent compared with the same week one year earlier.
The refinance share of mortgage activity decreased to 50.8 percent of total applications for the week ending Dec. 15 from 52.6 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 23.6 for the week ending Dec. 15 from 24.9 percent of total applications from the previous week. The ARM share is at its lowest level since October 2003.
The average contract interest rate for 30-year, fixed-rate mortgages increased to 6.10 for the week ending Dec. 15 from 6.02 percent, with points decreasing to 0.93 from 1 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The average contract interest rate for 15-year, fixed-rate mortgages increased to 5.82 percent for the week ending Dec. 15 from 5.75 percent, with points decreasing to 0.99 from 1 (including the origination fee) for 80 percent LTV loans. The average contract interest rate for one-year ARMs increased to 5.82 percent for the week ending Dec. 15 from 5.76, with points increasing to 0.83 from 0.81 (including the origination fee) for 80 percent LTV loans, according to the report.
http://www.mortgagebankers.org/NewsandMedia/PressCenter/47105.htm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - October 06: $548,680
(Source: C.A.R.)
Calif. highest median home price by C.A.R. region October 06:
Santa Barbara So. Coast $1,115,000
(Source: C.A.R.)
Calif. lowest median home price by C.A.R. region October 06:
High Desert $328,650
(Source: C.A.R.)
Calif. First-time Buyer Affordability Index -
Third Quarter 06: 24 percent
(Source: C.A.R.)
Mortgage rates - week ending 12/14:
30-yr. fixed: 6.12%; Fees/points: 0.4%
15-yr. fixed: 5.86%; Fees/points: 0.5%
1-yr. adjustable: 5.45%; Fees/points: 0.8%
(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 © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
ORANGE COUNTY MAN GUILTY OF MORTGAGE, BANKRUPTCY FRAUD
Earlier this month, Lorenzo Espinoza of Newport Coast, Calif., pleaded guilty to mortgage fraud, bankruptcy fraud, money laundering, and willfully failing to pay income taxes, according to a recent release from the U.S. Dept. of Justice. The actions caused more than $2.7 million in losses to the federal government and mortgage lenders. As a consequence of the guilty plea, Espinoza faces a maximum penalty of 26 years in federal prison.
Between April 1995 and May 2001, Espinoza and his associates fraudulently obtained mortgage loans that went into default by providing down payments and false documentation on behalf of phony buyers. Once the homes were purchased, the "buyers" would default on the mortgages, leaving lenders with properties valued lower than the amounts funded through the fraudulent mortgages. During the same time span, Espinoza also failed to pay income taxes, engaged in bankruptcy fraud, and participated in a money laundering scheme.
http://www.usdoj.gov/usao/cac/pr2006/165.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
BUILDER CONFIDENCE POSTS SLIGHT DECLINE IN DEC.
Heading into the holidays, builders of new single-family homes continue to believe that the worst of the downswing in home buying is behind them, according to a report from the National Association of Home Builders (NAHB). The NAHB/Wells Fargo Housing Market Index (HMI) for December stood at 32, one point below November's reading but above the recent low of 30 in September.
"The HMI has come off September's low point, and other recent indicators confirm that buying conditions have improved and that demand is stabilizing, including improvements in measures of housing affordability, strengthening consumer assessments of home buying conditions, and an upswing in applications for mortgages to buy homes," said NAHB Chief Economist David Seiders. "Builders sense that the tide is turning in terms of buyer demand for their product and are feeling somewhat better about the prospects for home sales."
Derived from a monthly survey that NAHB has been conducting for 20 years, the NAHB/Wells Fargo Housing Market Index (HMI) gauges builder perceptions of current single-family home sales and sales expectations for the next six months as either "good," "fair," or "poor," where any number above 50 indicates that more builders view sales conditions as good than poor. The survey also asks builders to rate traffic of prospective buyers as either "high to very high," "average," or "low to very low." Scores for each component are then used to calculate a seasonally adjusted index.
Regionally, the HMI posted the biggest gain in the Midwest, which has shown the greatest weakness in this measure for many months. That region posted a 7-point gain to 22 on the confidence scale, while the Northeast was unchanged at 37, the South dropped a point to 39, and the West declined four points to 31, according to the report.
http://www.nahb.org/news_details.aspx?newsID=3768
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
MORTGAGE LOAN APPS DECLINE
The Market Composite Index, a measure of mortgage loan application volume, declined 10.2 percent to 647.6 on a seasonally adjusted basis for the week ending Dec. 15 compared with 721.2 one week earlier, according to a report released today by the Mortgage Bankers Association (MBA). On an unadjusted basis, the Index decreased 11.6 percent for the week ending Dec. 15 compared with the previous week and was up 13.9 percent compared with the same week one year earlier.
The refinance share of mortgage activity decreased to 50.8 percent of total applications for the week ending Dec. 15 from 52.6 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 23.6 for the week ending Dec. 15 from 24.9 percent of total applications from the previous week. The ARM share is at its lowest level since October 2003.
The average contract interest rate for 30-year, fixed-rate mortgages increased to 6.10 for the week ending Dec. 15 from 6.02 percent, with points decreasing to 0.93 from 1 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The average contract interest rate for 15-year, fixed-rate mortgages increased to 5.82 percent for the week ending Dec. 15 from 5.75 percent, with points decreasing to 0.99 from 1 (including the origination fee) for 80 percent LTV loans. The average contract interest rate for one-year ARMs increased to 5.82 percent for the week ending Dec. 15 from 5.76, with points increasing to 0.83 from 0.81 (including the origination fee) for 80 percent LTV loans, according to the report.
http://www.mortgagebankers.org/NewsandMedia/PressCenter/47105.htm
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Fast Facts
Calif. median home price - October 06: $548,680
(Source: C.A.R.)
Calif. highest median home price by C.A.R. region October 06:
Santa Barbara So. Coast $1,115,000
(Source: C.A.R.)
Calif. lowest median home price by C.A.R. region October 06:
High Desert $328,650
(Source: C.A.R.)
Calif. First-time Buyer Affordability Index -
Third Quarter 06: 24 percent
(Source: C.A.R.)
Mortgage rates - week ending 12/14:
30-yr. fixed: 6.12%; Fees/points: 0.4%
15-yr. fixed: 5.86%; Fees/points: 0.5%
1-yr. adjustable: 5.45%; Fees/points: 0.8%
(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 © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, December 13, 2006
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
and David Breidenbach, Realtor® 619-888-3322, www.BreidyPropertiesInc.com
FED HOLDS FEDERAL FUNDS RATE AT 5.25 PERCENT
WOMEN MORE LIKELY THAN MEN TO RECEIVE SUBPRIME HOME MORTGAGES
CALIFORNIA VOTERS CONCERNED ABOUT STATE'S FUTURE
MOST U.S. HOUSING MARKETS TO EXPERIENCE SLUGGISH EXPANSION IN 2007
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
FED HOLDS FEDERAL FUNDS RATE AT 5.25 PERCENT
The Federal Reserve's Open Market Committee this week announced it would maintain the target for the federal funds rate at 5.25 percent. This is the fourth consecutive month the committee opted not to raise the target rate, which increased from 1 percent to 5.25 percent between June 2004 and July 2006. The federal funds target rate is the interest rate charged by banks when they borrow funds "overnight" from each other.
Citing the cooling housing market as a factor for the slower economic growth, the Fed also reported higher levels of inflation. "However, inflation pressures seem likely to moderate over time, reflecting reduced impetus from energy prices, contained inflation expectations, and the cumulative effects of monetary policy actions and other factors restraining aggregate demand," the Fed said in a prepared statement.
The Fed also indicated the possibility of future interest rate increases, acknowledging that "some inflation risks remain. The extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information."
http://www.federalreserve.gov/boarddocs/press/monetary/2006/20061212/
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WOMEN MORE LIKELY THAN MEN TO RECEIVE SUBPRIME HOME MORTGAGES
Women represent nearly 40 percent of subprime borrowers, making it more difficult for women-led households to build wealth through homeownership, according to a recent study by the Consumer Federation of America (CFA). Last year, 32 percent of women borrowers received mortgages with interest rates exceeding the average prime mortgage rate of 5.87 percent compared with 24.2 percent of men. The study, which examined 4.4 million mortgage originations throughout the country where borrowers were identified by their gender, also found that more than one in 10 women received high-cost subprime loans with interest rates above 9.66 percent.
The disparity between the rate of subprime lending for men and women grows as income levels increase, according to the study. Women earning double the median income are 46.4 percent more likely to obtain a subprime mortgage than men with similar incomes. "Evidence suggests that women have slightly higher credit scores on average than men and similar credit usage patterns, yet the fact that women are more likely to receive more expensive mortgages at all income levels undercuts the lending industries calm assurances that borrowers are priced based on their creditworthiness," said Allen Fishbein, CFA's director of housing and credit policy.
http://www.consumerfed.org/pdfs/WomenPrimeTargetsPressRelease.pdf
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CALIFORNIA VOTERS CONCERNED ABOUT STATE'S FUTURE
Voters in the Golden State last month approved the largest bond package in state history because they are concerned about California's future, according to a recent post-election survey conducted by the Public Policy Institute of California. While 53 percent of those surveyed indicated they believe the state is headed in the right direction, up from 23 percent in 2005, voters are not completely satisfied. A majority of voters view the $37.3 billion infrastructure bonds package, which authorized spending for highway rehabilitation projects, state housing initiatives, flood protection, and levee repair, to be a "down payment rather than mission accomplished," according to PPIC Survey Director Mark Baldassare. Voters do not believe state funding for such projects is adequate, and 51 percent of voters believe California will be a worse place to live twenty years from now than it is today, according to the survey.
Despite Californians' concerns about the state's condition in coming years, voters also recognized the renewed relationship between Governor Schwarzenegger and the state legislature. Thirty percent of voters said November's election made them feel better about California politics, up from 21 percent in 2005. Additionally, 53 percent approve the way the governor and state legislature are working together.
http://www.ppic.org/main/pressrelease.asp?i=659
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
MOST U.S. HOUSING MARKETS TO EXPERIENCE SLUGGISH EXPANSION IN 2007
A gradual increase in existing home sales is expected throughout 75 percent of the country in 2007, while the remaining areas will continue to see a slowdown during the first part of the year, according to NAR's year-end forecast. National existing home sales are anticipated to reach 6.40 million in 2007, down 1 percent from this year's expected 6.47 million. With rising construction costs and lower levels of builder activity, the Association projects a larger decline in new home sales, which are forecasted to fall 9.4 percent to 957,000 next year. Median home prices for both existing and new homes are expected to register slight increases in the coming year, forecasted at $224,700 and $241,700, respectively.
"Buyers, especially first-time buyers, with the combined benefits of seller flexibility and an unexpected drop in mortgage interest rates, have a window of opportunity," said NAR Chief Economist David Lereah. "These conditions will persist in many areas until early spring when inventory supplies are likely to become more balanced."
http://www.realtor.org/press_room/news_releases/2006/hef_dec06_existing_home_sales_in_2007.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - October 06: $548,680 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region October 06:
Santa Barbara So. Coast $1,115,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region October 06:
High Desert $328,650 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Third Quarter 06:
24 percent (Source: C.A.R.)
Mortgage rates - week ending 12/7:
30-yr. fixed: 6.11%; Fees/points: 0.5%
15-yr. fixed: 5.84%; 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 more than 200,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins, Copyright © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
WOMEN MORE LIKELY THAN MEN TO RECEIVE SUBPRIME HOME MORTGAGES
Women represent nearly 40 percent of subprime borrowers, making it more difficult for women-led households to build wealth through homeownership, according to a recent study by the Consumer Federation of America (CFA). Last year, 32 percent of women borrowers received mortgages with interest rates exceeding the average prime mortgage rate of 5.87 percent compared with 24.2 percent of men. The study, which examined 4.4 million mortgage originations throughout the country where borrowers were identified by their gender, also found that more than one in 10 women received high-cost subprime loans with interest rates above 9.66 percent.
The disparity between the rate of subprime lending for men and women grows as income levels increase, according to the study. Women earning double the median income are 46.4 percent more likely to obtain a subprime mortgage than men with similar incomes. "Evidence suggests that women have slightly higher credit scores on average than men and similar credit usage patterns, yet the fact that women are more likely to receive more expensive mortgages at all income levels undercuts the lending industries calm assurances that borrowers are priced based on their creditworthiness," said Allen Fishbein, CFA's director of housing and credit policy.
http://www.consumerfed.org/pdfs/WomenPrimeTargetsPressRelease.pdf
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CALIFORNIA VOTERS CONCERNED ABOUT STATE'S FUTURE
Voters in the Golden State last month approved the largest bond package in state history because they are concerned about California's future, according to a recent post-election survey conducted by the Public Policy Institute of California. While 53 percent of those surveyed indicated they believe the state is headed in the right direction, up from 23 percent in 2005, voters are not completely satisfied. A majority of voters view the $37.3 billion infrastructure bonds package, which authorized spending for highway rehabilitation projects, state housing initiatives, flood protection, and levee repair, to be a "down payment rather than mission accomplished," according to PPIC Survey Director Mark Baldassare. Voters do not believe state funding for such projects is adequate, and 51 percent of voters believe California will be a worse place to live twenty years from now than it is today, according to the survey.
Despite Californians' concerns about the state's condition in coming years, voters also recognized the renewed relationship between Governor Schwarzenegger and the state legislature. Thirty percent of voters said November's election made them feel better about California politics, up from 21 percent in 2005. Additionally, 53 percent approve the way the governor and state legislature are working together.
http://www.ppic.org/main/pressrelease.asp?i=659
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
MOST U.S. HOUSING MARKETS TO EXPERIENCE SLUGGISH EXPANSION IN 2007
A gradual increase in existing home sales is expected throughout 75 percent of the country in 2007, while the remaining areas will continue to see a slowdown during the first part of the year, according to NAR's year-end forecast. National existing home sales are anticipated to reach 6.40 million in 2007, down 1 percent from this year's expected 6.47 million. With rising construction costs and lower levels of builder activity, the Association projects a larger decline in new home sales, which are forecasted to fall 9.4 percent to 957,000 next year. Median home prices for both existing and new homes are expected to register slight increases in the coming year, forecasted at $224,700 and $241,700, respectively.
"Buyers, especially first-time buyers, with the combined benefits of seller flexibility and an unexpected drop in mortgage interest rates, have a window of opportunity," said NAR Chief Economist David Lereah. "These conditions will persist in many areas until early spring when inventory supplies are likely to become more balanced."
http://www.realtor.org/press_room/news_releases/2006/hef_dec06_existing_home_sales_in_2007.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - October 06: $548,680 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region October 06:
Santa Barbara So. Coast $1,115,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region October 06:
High Desert $328,650 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Third Quarter 06:
24 percent (Source: C.A.R.)
Mortgage rates - week ending 12/7:
30-yr. fixed: 6.11%; Fees/points: 0.5%
15-yr. fixed: 5.84%; 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 more than 200,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins, Copyright © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, December 06, 2006
Wednesday, December 06, 2006
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
and David Breidenbach, Realtor® 619-888-3322, www.BreidyPropertiesInc.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CONSTRUCTION SPENDING, HOUSING STARTS CONTINUE TO SLOW
INFORMATION REGARDING MORTGAGE FRAUD AVAILABLE ON C.A.R. ONLINE
PENDING HOME SALES REFLECT STABILIZING MARKET
QUICK READ OF REAL ESTATE NEWS HEADLINES FROM ACROSS THE NATION
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CONSTRUCTION SPENDING, HOUSING STARTS CONTINUE TO SLOW
INFORMATION REGARDING MORTGAGE FRAUD AVAILABLE ON C.A.R. ONLINE
PENDING HOME SALES REFLECT STABILIZING MARKET
QUICK READ OF REAL ESTATE NEWS HEADLINES FROM ACROSS THE NATION
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CONSTRUCTION SPENDING, HOUSING STARTS CONTINUE TO SLOW
The annual pace of construction spending continued its seven-month slowdown in October, falling 0.5 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 9.4 percent compared with one year earlier, standing at a rate of $605 billion, while the value of nonresidential construction activity rose 13.6 percent to a rate of $573 billion, according to the report.
In California, data from the California Building Industry Association (CBIA) reports a similar decline, with new-home construction during October falling 29 percent when compared with the construction pace recorded one year earlier. Based on the number of building permits issued, 10,520 new housing units were started throughout the state in October, and while multifamily construction continues to be strong, particularly in the state's major metropolitan areas, single-family construction is down 30 percent for the first 10 months of the year. Despite the decline, CBIA Chief Economist Alan Nevin believes California builders are on track to produce approximately 170,000 new single-family and multifamily units this year--the sixth highest since 1989, according to the report.
http://www.cbia.org/index.cfm?pageid=1370&preview=yes
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
INFORMATION REGARDING MORTGAGE FRAUD AVAILABLE ON C.A.R. ONLINE
C.A.R.'s Member Legal Services recently published a new legal article about mortgage fraud. From inflated appraisals to false documentation, mortgage fraud comes in many different forms and can be perpetrated by borrowers, lenders, and other institutions. REALTORS® and their clients should exercise extreme caution when dealing with real estate transactions involving artificial price inflation, undisclosed cash back to the buyer or third party, and other fraudulent schemes.
Available on the Legal section of C.A.R. Online (www.car.org), "Mortgage Fraud: Avoiding Price Inflation Schemes," addresses the legal and practical issues surrounding mortgage fraud as they affect REALTORS® and their clients. Topics covered include common mortgage fraud methods; how to recognize the red flags of mortgage fraud; and ways to prevent becoming a participant in a mortgage fraud scheme. To view the article, visit http://www.car.org/index.php?id=MzY3MTM.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
PENDING HOME SALES REFLECT STABILIZING MARKET
Despite a two-month decline, 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 October, 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 107.2, down 1.7 percent from the previous month and down 13.2 percent from October 2005. A PHSI of 100 or more generally indicates a high level of home sales activity.
"It's important to focus on where the housing market is now - it appears to be stabilizing, and comparisons with an unsustainable boom mask the fact that home sales remain historically high - they'll stay that way through 2007," said NAR Chief Economist David Lereah. "In addition, a temporary correction in prices distracts from the fact that it is primarily the number of home sales that affects the economy, and the number for this year will be the third highest on record."
The PHSI declined across the nation in October compared with the readings a year ago. On a regional basis, the PHSI was highest in the South, where it declined 9.3 percent to 122.9. In the West, the index fell 17.4 percent to 109.5. The PHSI also declined in the Midwest and Northeast regions, falling to 95.8 and 88, respectively.
http://www.realtor.org/press_room/news_releases/2006/phs_dec06_indicate_market_stabilization.html
INFORMATION REGARDING MORTGAGE FRAUD AVAILABLE ON C.A.R. ONLINE
C.A.R.'s Member Legal Services recently published a new legal article about mortgage fraud. From inflated appraisals to false documentation, mortgage fraud comes in many different forms and can be perpetrated by borrowers, lenders, and other institutions. REALTORS® and their clients should exercise extreme caution when dealing with real estate transactions involving artificial price inflation, undisclosed cash back to the buyer or third party, and other fraudulent schemes.
Available on the Legal section of C.A.R. Online (www.car.org), "Mortgage Fraud: Avoiding Price Inflation Schemes," addresses the legal and practical issues surrounding mortgage fraud as they affect REALTORS® and their clients. Topics covered include common mortgage fraud methods; how to recognize the red flags of mortgage fraud; and ways to prevent becoming a participant in a mortgage fraud scheme. To view the article, visit http://www.car.org/index.php?id=MzY3MTM.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
PENDING HOME SALES REFLECT STABILIZING MARKET
Despite a two-month decline, 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 October, 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 107.2, down 1.7 percent from the previous month and down 13.2 percent from October 2005. A PHSI of 100 or more generally indicates a high level of home sales activity.
"It's important to focus on where the housing market is now - it appears to be stabilizing, and comparisons with an unsustainable boom mask the fact that home sales remain historically high - they'll stay that way through 2007," said NAR Chief Economist David Lereah. "In addition, a temporary correction in prices distracts from the fact that it is primarily the number of home sales that affects the economy, and the number for this year will be the third highest on record."
The PHSI declined across the nation in October compared with the readings a year ago. On a regional basis, the PHSI was highest in the South, where it declined 9.3 percent to 122.9. In the West, the index fell 17.4 percent to 109.5. The PHSI also declined in the Midwest and Northeast regions, falling to 95.8 and 88, respectively.
http://www.realtor.org/press_room/news_releases/2006/phs_dec06_indicate_market_stabilization.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
QUICK READ OF REAL ESTATE NEWS HEADLINES FROM ACROSS THE NATION
C.A.R. Online (www.car.org) now features links to real estate news from major publications statewide and around the nation. From economic data to home remodeling trends, a quick read of today's real estate headlines is just a click away. Visit http://www.car.org/index.php?id=MzY3OTM.
http://www.car.org/index.php?id=MzY3OTM=
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - October 06: $548,680 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region October 06:
Santa Barbara So. Coast $1,115,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region October 06:
High Desert $328,650 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Third Quarter 06:
24 percent (Source: C.A.R.)
Mortgage rates - week ending 11/30:
30-yr. fixed: 6.14%; Fees/points: 0.4%
15-yr. fixed: 5.87%; Fees/points: 0.4%
1-yr. adjustable: 5.46%; 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,
QUICK READ OF REAL ESTATE NEWS HEADLINES FROM ACROSS THE NATION
C.A.R. Online (www.car.org) now features links to real estate news from major publications statewide and around the nation. From economic data to home remodeling trends, a quick read of today's real estate headlines is just a click away. Visit http://www.car.org/index.php?id=MzY3OTM.
http://www.car.org/index.php?id=MzY3OTM=
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - October 06: $548,680 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region October 06:
Santa Barbara So. Coast $1,115,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region October 06:
High Desert $328,650 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Third Quarter 06:
24 percent (Source: C.A.R.)
Mortgage rates - week ending 11/30:
30-yr. fixed: 6.14%; Fees/points: 0.4%
15-yr. fixed: 5.87%; Fees/points: 0.4%
1-yr. adjustable: 5.46%; 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 © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, October 25, 2006
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
and David Breidenbach, Realtor® 619-888-3322, www.BreidyPropertiesInc.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. REPORTS HOME SALES DECREASED 31.7 PERCENT IN SEPTEMBER
HUD FINES THREE BUILDERS $1.95 MILLION FOR VIOLATIONS UNDER RESPA
U.S. LEADING INDEX REVERSES TWO-MONTH DECLINE
HOUSING STARTS DECLINE 17.9 PERCENT NATIONWIDE IN SEPTEMBER
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. REPORTS HOME SALES DECREASED 31.7 PERCENT IN SEPTEMBER
HUD FINES THREE BUILDERS $1.95 MILLION FOR VIOLATIONS UNDER RESPA
U.S. LEADING INDEX REVERSES TWO-MONTH DECLINE
HOUSING STARTS DECLINE 17.9 PERCENT NATIONWIDE IN SEPTEMBER
C.A.R. REPORTS HOME SALES DECREASED 31.7 PERCENT IN SEPTEMBER
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. REPORTS HOME SALES DECREASED 31.7 PERCENT IN SEPTEMBER
The median price of an existing single-family home in California increased 1.8 percent in September and sales decreased 31.7 percent compared with the same period a year ago, C.A.R. reported today. "We expected a fairly steep decline in sales last month compared with a year ago, when sales were near their all-time record," said C.A.R. President Vince Malta. "Unsold inventory is holding steady, and is close to the long-term historic average typical of a more 'normal' market."
According to the report, the median price of an existing, single-family detached home in California during September 2006 was $553,050, a 1.8 percent increase over the revised $543,510 median for September 2005. Also last month, closed escrow sales of existing, single-family detached homes in California totaled 444,780 at a seasonally adjusted annualized rate, down 31.7 percent compared with the sales pace recorded one year earlier and up 0.6 percent from home resale activity in August.
"Overall, year-to-date sales were down 24 percent, in line with our 2006 projection. Regional trends in sales and prices were consistent with recent months," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "Areas that experienced a lot of homebuilding in recent years or second home activity have experienced larger declines in sales and weaker prices than the state as a whole. These include Northern California, the Northern Wine Country, the Central Valley, San Diego County, and the Lower Desert in Southern California."
The median price of an existing single-family home in California increased 1.8 percent in September and sales decreased 31.7 percent compared with the same period a year ago, C.A.R. reported today. "We expected a fairly steep decline in sales last month compared with a year ago, when sales were near their all-time record," said C.A.R. President Vince Malta. "Unsold inventory is holding steady, and is close to the long-term historic average typical of a more 'normal' market."
According to the report, the median price of an existing, single-family detached home in California during September 2006 was $553,050, a 1.8 percent increase over the revised $543,510 median for September 2005. Also last month, closed escrow sales of existing, single-family detached homes in California totaled 444,780 at a seasonally adjusted annualized rate, down 31.7 percent compared with the sales pace recorded one year earlier and up 0.6 percent from home resale activity in August.
"Overall, year-to-date sales were down 24 percent, in line with our 2006 projection. Regional trends in sales and prices were consistent with recent months," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "Areas that experienced a lot of homebuilding in recent years or second home activity have experienced larger declines in sales and weaker prices than the state as a whole. These include Northern California, the Northern Wine Country, the Central Valley, San Diego County, and the Lower Desert in Southern California."
http://www.car.org/index.php?id=MzY3MjQ=
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HUD FINES THREE BUILDERS $1.95 MILLION FOR VIOLATIONS UNDER RESPA
The Dept. of Housing and Urban Development (HUD) has reached settlements with three home builders that allegedly participated in illegal captive reinsurance schemes, the Dept. recently announced. The settlements amount to $1.95 million and include agreements with Shea Homes, Inc., William Lyon Homes, and Fulton Homes. Additionally, the three companies agreed not to enter into new captive title reinsurance arrangements.
Captive reinsurance practices violate the Real Estate Settlement Procedures Act (RESPA), which was enacted in 1974 and prohibits illegal kickbacks and excessive fees in the home-buying process. Under the illegal schemes, home builders, lenders, or other entities receive payments for referring business to a title insurance company.
http://www.hud.gov/news/release.cfm?content=pr06-137.cfm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
U.S. LEADING INDEX REVERSES TWO-MONTH DECLINE
The U.S. leading index, a key barometer of economic conditions, increased in September, following two consecutive declines, The Conference Board recently reported. The index increased 0.1 percent last month and now stands at 137.7 (1996=100), 1 percent below the high of 139.1 reached in January.
According to the report, the leading index has declined in five of the last eight months and signals slow economic growth in the coming months. Since March, declining housing permits and weakening manufacturers' orders have negatively affected the leading index. The coincident index, a measure of current economic activity, remained unchanged in September and stands at 123.3, while the lagging index, a reflection of past economic activity, increased 0.2 percent to 124.3.
http://www.conference-board.org/economics/bci/pressRelease_output.cfm?cid=1
The Dept. of Housing and Urban Development (HUD) has reached settlements with three home builders that allegedly participated in illegal captive reinsurance schemes, the Dept. recently announced. The settlements amount to $1.95 million and include agreements with Shea Homes, Inc., William Lyon Homes, and Fulton Homes. Additionally, the three companies agreed not to enter into new captive title reinsurance arrangements.
Captive reinsurance practices violate the Real Estate Settlement Procedures Act (RESPA), which was enacted in 1974 and prohibits illegal kickbacks and excessive fees in the home-buying process. Under the illegal schemes, home builders, lenders, or other entities receive payments for referring business to a title insurance company.
http://www.hud.gov/news/release.cfm?content=pr06-137.cfm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
U.S. LEADING INDEX REVERSES TWO-MONTH DECLINE
The U.S. leading index, a key barometer of economic conditions, increased in September, following two consecutive declines, The Conference Board recently reported. The index increased 0.1 percent last month and now stands at 137.7 (1996=100), 1 percent below the high of 139.1 reached in January.
According to the report, the leading index has declined in five of the last eight months and signals slow economic growth in the coming months. Since March, declining housing permits and weakening manufacturers' orders have negatively affected the leading index. The coincident index, a measure of current economic activity, remained unchanged in September and stands at 123.3, while the lagging index, a reflection of past economic activity, increased 0.2 percent to 124.3.
http://www.conference-board.org/economics/bci/pressRelease_output.cfm?cid=1
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HOUSING STARTS DECLINE 17.9 PERCENT NATIONWIDE IN SEPTEMBER
The seasonally adjusted annual rate for privately owned housing starts dropped for the sixth consecutive month in September, falling to a rate of 1.77 million units, according to a recent report from the U.S. Dept. of Commerce. The September construction pace was up 5.9 percent from August and down 17.9 percent from a year ago. Single-family housing starts decreased 20.3 percent from September 2005, to a rate of 1.43 million units, while starts for buildings with five or more units increased 1.3 percent to a rate of 314,000. The number of building permits issued, which can be an indicator of future building activity, declined 27.7 percent from one year earlier to a seasonally adjusted annual rate of 1.62 million permits.
The construction pace for housing units decreased across the nation in September. The rate for privately owned housing starts declined 31.3 percent in both the Northeast and West regions, 28.4 percent in the Midwest, and 3.8 percent in the South.
HOUSING STARTS DECLINE 17.9 PERCENT NATIONWIDE IN SEPTEMBER
The seasonally adjusted annual rate for privately owned housing starts dropped for the sixth consecutive month in September, falling to a rate of 1.77 million units, according to a recent report from the U.S. Dept. of Commerce. The September construction pace was up 5.9 percent from August and down 17.9 percent from a year ago. Single-family housing starts decreased 20.3 percent from September 2005, to a rate of 1.43 million units, while starts for buildings with five or more units increased 1.3 percent to a rate of 314,000. The number of building permits issued, which can be an indicator of future building activity, declined 27.7 percent from one year earlier to a seasonally adjusted annual rate of 1.62 million permits.
The construction pace for housing units decreased across the nation in September. The rate for privately owned housing starts declined 31.3 percent in both the Northeast and West regions, 28.4 percent in the Midwest, and 3.8 percent in the South.
http://www.census.gov/const/newresconst_200609.pdf
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Fast Facts
Calif. median home price - September 06: $553,050 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region September 06:
Santa Barbara So. Coast $1,025,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region September 06:
High Desert $329,040 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Second Quarter 06:
23 percent (Source: C.A.R.)
Mortgage rates - week ending 10/19:
30-yr. fixed: 6.36%; Fees/points: 0.5%
15-yr. fixed: 6.06%; Fees/points: 0.5%
1-yr. adjustable: 5.57%; Fees/points: 0.8%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®,
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - September 06: $553,050 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region September 06:
Santa Barbara So. Coast $1,025,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region September 06:
High Desert $329,040 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Second Quarter 06:
23 percent (Source: C.A.R.)
Mortgage rates - week ending 10/19:
30-yr. fixed: 6.36%; Fees/points: 0.5%
15-yr. fixed: 6.06%; Fees/points: 0.5%
1-yr. adjustable: 5.57%; Fees/points: 0.8%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®,
a trade association representing more than 195,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
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Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, October 18, 2006
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
C.A.R. EXPECTS COOLING HOME SALES, MODEST PRICE DECREASE NEXT YEAR
REAL ESTATE BROKER CONVICTED OF MORTGAGE FRAUD
BUILDER CONFIDENCE STEADIES
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C.A.R. EXPECTS COOLING HOME SALES, MODEST PRICE DECREASE NEXT YEAR
The rate of home price appreciation will post a modest decline next year following several years of steep increases, while the sales pace will decrease as the market stabilizes throughout 2007, according to C.A.R.'s "2007 California Housing Market Forecast," presented today during the California REALTOR® EXPO 2006, running from Oct. 17--19 at the Long Beach Convention Center. The median home price in California will decline 2 percent to $550,000 in 2007 compared with a projected median of $561,000 this year, while sales for 2007 are projected to decrease 7 percent to 447,500 units, compared with 481,200 units (projected) in 2006.
"Although the 2007 sales decline is not expected to be as steep as what we experienced this year, the psychology of the market -- matching the differing expectations of sellers and buyers -- will continue to be a factor as REALTORS® help consumers navigate their way through a changing market," said C.A.R. President Vince Malta. "While we're projecting a modest decline in the median price of a home, over the long term, residential real estate in California has been and will continue to be a solid investment. Since 1968, the long-term average price appreciation is 9.1 percent."
"While we recognized that the frenetic sales pace of the past four years could not continue indefinitely, the housing market in 2006 did not fare as well as we initially expected," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "The anticipated slowdown that began in October 2005 was heightened by dual natural disasters in the Gulf Coast, a significant drop in consumer confidence, rising energy and raw materials costs, and a series of Federal Reserve interest rate hikes that began in June 2004. Fixed-rate mortgages also hit and passed the psychological threshold of 6 percent, while adjustable-rate mortgages passed 5 percent, ultimately causing a decline in affordability. Affordability concerns also will continue to constrain sales for many households in California throughout 2007, especially for first-time home buyers."
http://www.car.org/index.php?id=MzY3MTU=
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
and David Breidenbach, Realtor® 619-888-3322, www.BreidyPropertiesInc.com
C.A.R. EXPECTS COOLING HOME SALES, MODEST PRICE DECREASE NEXT YEAR
REAL ESTATE BROKER CONVICTED OF MORTGAGE FRAUD
BUILDER CONFIDENCE STEADIES
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. EXPECTS COOLING HOME SALES, MODEST PRICE DECREASE NEXT YEAR
The rate of home price appreciation will post a modest decline next year following several years of steep increases, while the sales pace will decrease as the market stabilizes throughout 2007, according to C.A.R.'s "2007 California Housing Market Forecast," presented today during the California REALTOR® EXPO 2006, running from Oct. 17--19 at the Long Beach Convention Center. The median home price in California will decline 2 percent to $550,000 in 2007 compared with a projected median of $561,000 this year, while sales for 2007 are projected to decrease 7 percent to 447,500 units, compared with 481,200 units (projected) in 2006.
"Although the 2007 sales decline is not expected to be as steep as what we experienced this year, the psychology of the market -- matching the differing expectations of sellers and buyers -- will continue to be a factor as REALTORS® help consumers navigate their way through a changing market," said C.A.R. President Vince Malta. "While we're projecting a modest decline in the median price of a home, over the long term, residential real estate in California has been and will continue to be a solid investment. Since 1968, the long-term average price appreciation is 9.1 percent."
"While we recognized that the frenetic sales pace of the past four years could not continue indefinitely, the housing market in 2006 did not fare as well as we initially expected," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "The anticipated slowdown that began in October 2005 was heightened by dual natural disasters in the Gulf Coast, a significant drop in consumer confidence, rising energy and raw materials costs, and a series of Federal Reserve interest rate hikes that began in June 2004. Fixed-rate mortgages also hit and passed the psychological threshold of 6 percent, while adjustable-rate mortgages passed 5 percent, ultimately causing a decline in affordability. Affordability concerns also will continue to constrain sales for many households in California throughout 2007, especially for first-time home buyers."
http://www.car.org/index.php?id=MzY3MTU=
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REAL ESTATE BROKER CONVICTED OF MORTGAGE FRAUD
Real estate broker James Davis Bennett was recently sentenced to 10 years in federal prison and ordered to pay $763,550 in restitution and fines for committing mortgage fraud. Bennett purchased various properties in distressed areas of Los Angeles and Long Beach in the names of his mother, wife, and stepson. At the same time, he recruited buyers for the properties by promising "no money down." He sold the properties to the recruited buyers by inflating the prices by about $100,000 more than what he paid and making the transactions appear as if the buyers were placing significant down payments, when in fact they were not. He also falsified mortgage loan applications and appraisal reports. As a result, lenders issued more than $6 million in mortgage loans to unqualified buyers, many of whom fell into foreclosure. Bennett was convicted of 11 counts of bank fraud, wire fraud, and operating a criminal enterprise. His real estate broker license has been revoked. Four other people have pleaded guilty in the case.
The recent proliferation of price inflation and other mortgage fraud schemes has raised many legal and practical issues for REALTORS®. To address these concerns, C.A.R.'s Legal Department has drafted a new legal article titled Mortgage Fraud: Avoiding Price Inflation Schemes, available at qa.car.org.
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BUILDER CONFIDENCE STEADIES
The confidence level of the nation's home builders this month posted an increase for the first time in 12 months, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The seasonally adjusted HMI stands at 31 in October, up one point from September and down 37 points from a year ago. An HMI below 50 indicates more builders view sales conditions as poor versus good.
"While the index remains at a low level, the single-point increase from September's reading suggests that builder attitudes for new-home sales may be stabilizing," said NAHB Chief Economist David Seiders. "This is attributable to several key economic factors: mortgage interest rates have fallen substantially from their summer highs, energy prices have dropped dramatically from their recent peaks, consumer sentiment has posted a strong rebound and the job market is doing reasonably well."
Two of the three HMI components increased this month. The component measuring future sales rose four points to 41, while the component gauging the traffic of prospective buyers edged up one point to 23. The component measuring current sales remained unchanged at 32.
http://www.nahb.org/news_details.aspx?newsID=3461
REAL ESTATE BROKER CONVICTED OF MORTGAGE FRAUD
Real estate broker James Davis Bennett was recently sentenced to 10 years in federal prison and ordered to pay $763,550 in restitution and fines for committing mortgage fraud. Bennett purchased various properties in distressed areas of Los Angeles and Long Beach in the names of his mother, wife, and stepson. At the same time, he recruited buyers for the properties by promising "no money down." He sold the properties to the recruited buyers by inflating the prices by about $100,000 more than what he paid and making the transactions appear as if the buyers were placing significant down payments, when in fact they were not. He also falsified mortgage loan applications and appraisal reports. As a result, lenders issued more than $6 million in mortgage loans to unqualified buyers, many of whom fell into foreclosure. Bennett was convicted of 11 counts of bank fraud, wire fraud, and operating a criminal enterprise. His real estate broker license has been revoked. Four other people have pleaded guilty in the case.
The recent proliferation of price inflation and other mortgage fraud schemes has raised many legal and practical issues for REALTORS®. To address these concerns, C.A.R.'s Legal Department has drafted a new legal article titled Mortgage Fraud: Avoiding Price Inflation Schemes, available at qa.car.org.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
BUILDER CONFIDENCE STEADIES
The confidence level of the nation's home builders this month posted an increase for the first time in 12 months, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The seasonally adjusted HMI stands at 31 in October, up one point from September and down 37 points from a year ago. An HMI below 50 indicates more builders view sales conditions as poor versus good.
"While the index remains at a low level, the single-point increase from September's reading suggests that builder attitudes for new-home sales may be stabilizing," said NAHB Chief Economist David Seiders. "This is attributable to several key economic factors: mortgage interest rates have fallen substantially from their summer highs, energy prices have dropped dramatically from their recent peaks, consumer sentiment has posted a strong rebound and the job market is doing reasonably well."
Two of the three HMI components increased this month. The component measuring future sales rose four points to 41, while the component gauging the traffic of prospective buyers edged up one point to 23. The component measuring current sales remained unchanged at 32.
http://www.nahb.org/news_details.aspx?newsID=3461
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Fast Facts
Calif. median home price - August 06: $576,360 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region August 06: Santa Barbara So. Coast $1,190,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region August 06: High Desert $332,900 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Second Quarter 06: 23 percent (Source: C.A.R.)
Mortgage rates - week ending 10/12: 30-yr. fixed: 6.37%; Fees/points: 0.5% 15-yr. fixed: 6.06%; Fees/points: 0.5% 1-yr. adjustable: 5.56%; Fees/points: 0.7% Source: Freddie Mac)
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C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 195,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins,
Copyright © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
Fast Facts
Calif. median home price - August 06: $576,360 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region August 06: Santa Barbara So. Coast $1,190,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region August 06: High Desert $332,900 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Second Quarter 06: 23 percent (Source: C.A.R.)
Mortgage rates - week ending 10/12: 30-yr. fixed: 6.37%; Fees/points: 0.5% 15-yr. fixed: 6.06%; Fees/points: 0.5% 1-yr. adjustable: 5.56%; 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 195,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins,
Copyright © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, October 11, 2006
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
SIGNIFICANT NEW LAWS FOR 2007NATIONAL FORECLOSURE FILINGS UP 39 PERCENT YEAR-TO-DATENAR SIGNS MEMBERSHIP AGREEMENT WITH MEXICAN REAL ESTATE ASSOCIATIONMORTGAGE LOAN APPLICATION VOLUME DECREASES~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
SIGNIFICANT NEW LAWS FOR 2007
Now that the 2006 legislative session is over, several new laws have been enacted affecting REALTORS®. The following summary highlights new laws that may impact your real estate practice.
No more conditional salesperson license: Starting Oct. 1, 2007, a person must complete three real estate classes before applying for the real estate salesperson exam. Exempt from this requirement are attorneys and those qualified to take the broker exam. Currently, nearly 85 percent of new licensees obtain what is called a "conditional salesperson license," enabling them to conduct real estate licensed activities upon completing merely one class and promising to take two more classes within 18 months. C.A.R.-sponsored AB 2429 raises the bar for new licensees by eliminating the conditional salesperson license.
Tax alternative to 3.33 percent California withholding: Effective Jan. 1, 2007, sellers required to have 3.33 percent of the sales price withheld for income tax purposes may elect an alternative withholding. The alternative withholding is an estimate of the seller's tax liability calculated by multiplying the recognized capital gain by the highest state tax rate for individual taxpayers (or the corporate tax rate for corporations), regardless of the taxpayer's actual tax bracket. Under existing California law, a buyer must withhold 3.33 percent of the sales price from the seller's proceeds unless an exemption applies, such as when the property is the seller's principal residence, the property is in a 1031 exchange, or the seller will not realize any capital gains. The new law applies to non-exempt sellers who may now elect to have less than 3.33 percent withheld. A seller opting for this tax alternative withholding must certify the amount to be withheld in writing under penalty of perjury.
60-day notice to terminate revived: Beginning Jan. 1, 2007, a residential landlord must generally give a 60-day notice to terminate a month-to-month tenant. However, a 30-day notice to terminate is permissible if any tenant or resident has lived in the property for less than one year, or if the landlord has sold the property in the manner specified by law. The 60-day notice does not apply to fixed-term leases (e.g., a one-year lease). It also does not apply if it is the tenant, not the landlord, who terminates a month-to-month agreement, in which case the tenant may give a 30-day notice. To comport with this new law, C.A.R. will release a new standard form 60-day notice of termination, which will also set forth the requirements for the 30-day exception when landlords sell their properties. This law will sunset on Dec. 31, 2009.
License revocation for advertising false credentials: Beginning Jan. 1, 2007, the real estate commissioner may revoke, suspend, or deny the license of anyone who falsely advertises his or her credentials, including special certifications or membership in a trade organization. This law aims to protect consumers from unscrupulous and fraudulent lending practices.
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NATIONAL FORECLOSURE FILINGS UP 39 PERCENT YEAR-TO-DATE
More than 110,000 foreclosure filings were reported nationwide for the second consecutive month in September, when 112,210 properties entered some stage of foreclosure, according to RealtyTrac's "September 2006 U.S. Foreclosure Market Report." September's foreclosure rate was down 1 percent from August 2006 but up 63 percent from a year ago. "Foreclosure filings are up 39 percent year-to-date and already have surpassed the total number reported in all of 2005. If they continue at the current pace, foreclosures will exceed the 1.2 million mark by the end of the year," said RealtyTrac CEO James Saccacio.
In California, foreclosure activity rose 19 percent on a month-to-month basis and has increased more than 40 percent during the last two months, according to the report. With one new foreclosure filing for every 825 households, the foreclosure rate in the Golden State is 1.3 times the national average of one new filing for every 1,030 households. The highest state foreclosure rates were reported by Colorado and Nevada.
http://www.realtytrac.com/ContentManagement/PressRelease.aspx?ItemID=1240
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NAR SIGNS MEMBERSHIP AGREEMENT WITH MEXICAN REAL ESTATE ASSOCIATION
NAR last week signed a joint reciprocal membership agreement with Asociation Mexicana de Professionales Inmobiliarios (AMPI), the Mexican real estate association. The agreement is the first of its kind and will help promote standardization of international real estate practices.
Under the agreement, AMPI's 2,500 members will become REALTORS® in January. "NAR chose AMPI for this groundbreaking partnership, in large part, because its members adhere to a strict Code of Ethics like that of NAR. AMPI's high standards of practice will help increase the positive perceptions of REALTORS® worldwide," said NAR President-elect Pat Vredevoogd Combs, who executed the agreement at AMPI's 50th anniversary meeting in Mexico City.
No more conditional salesperson license: Starting Oct. 1, 2007, a person must complete three real estate classes before applying for the real estate salesperson exam. Exempt from this requirement are attorneys and those qualified to take the broker exam. Currently, nearly 85 percent of new licensees obtain what is called a "conditional salesperson license," enabling them to conduct real estate licensed activities upon completing merely one class and promising to take two more classes within 18 months. C.A.R.-sponsored AB 2429 raises the bar for new licensees by eliminating the conditional salesperson license.
Tax alternative to 3.33 percent California withholding: Effective Jan. 1, 2007, sellers required to have 3.33 percent of the sales price withheld for income tax purposes may elect an alternative withholding. The alternative withholding is an estimate of the seller's tax liability calculated by multiplying the recognized capital gain by the highest state tax rate for individual taxpayers (or the corporate tax rate for corporations), regardless of the taxpayer's actual tax bracket. Under existing California law, a buyer must withhold 3.33 percent of the sales price from the seller's proceeds unless an exemption applies, such as when the property is the seller's principal residence, the property is in a 1031 exchange, or the seller will not realize any capital gains. The new law applies to non-exempt sellers who may now elect to have less than 3.33 percent withheld. A seller opting for this tax alternative withholding must certify the amount to be withheld in writing under penalty of perjury.
60-day notice to terminate revived: Beginning Jan. 1, 2007, a residential landlord must generally give a 60-day notice to terminate a month-to-month tenant. However, a 30-day notice to terminate is permissible if any tenant or resident has lived in the property for less than one year, or if the landlord has sold the property in the manner specified by law. The 60-day notice does not apply to fixed-term leases (e.g., a one-year lease). It also does not apply if it is the tenant, not the landlord, who terminates a month-to-month agreement, in which case the tenant may give a 30-day notice. To comport with this new law, C.A.R. will release a new standard form 60-day notice of termination, which will also set forth the requirements for the 30-day exception when landlords sell their properties. This law will sunset on Dec. 31, 2009.
License revocation for advertising false credentials: Beginning Jan. 1, 2007, the real estate commissioner may revoke, suspend, or deny the license of anyone who falsely advertises his or her credentials, including special certifications or membership in a trade organization. This law aims to protect consumers from unscrupulous and fraudulent lending practices.
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NATIONAL FORECLOSURE FILINGS UP 39 PERCENT YEAR-TO-DATE
More than 110,000 foreclosure filings were reported nationwide for the second consecutive month in September, when 112,210 properties entered some stage of foreclosure, according to RealtyTrac's "September 2006 U.S. Foreclosure Market Report." September's foreclosure rate was down 1 percent from August 2006 but up 63 percent from a year ago. "Foreclosure filings are up 39 percent year-to-date and already have surpassed the total number reported in all of 2005. If they continue at the current pace, foreclosures will exceed the 1.2 million mark by the end of the year," said RealtyTrac CEO James Saccacio.
In California, foreclosure activity rose 19 percent on a month-to-month basis and has increased more than 40 percent during the last two months, according to the report. With one new foreclosure filing for every 825 households, the foreclosure rate in the Golden State is 1.3 times the national average of one new filing for every 1,030 households. The highest state foreclosure rates were reported by Colorado and Nevada.
http://www.realtytrac.com/ContentManagement/PressRelease.aspx?ItemID=1240
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NAR SIGNS MEMBERSHIP AGREEMENT WITH MEXICAN REAL ESTATE ASSOCIATION
NAR last week signed a joint reciprocal membership agreement with Asociation Mexicana de Professionales Inmobiliarios (AMPI), the Mexican real estate association. The agreement is the first of its kind and will help promote standardization of international real estate practices.
Under the agreement, AMPI's 2,500 members will become REALTORS® in January. "NAR chose AMPI for this groundbreaking partnership, in large part, because its members adhere to a strict Code of Ethics like that of NAR. AMPI's high standards of practice will help increase the positive perceptions of REALTORS® worldwide," said NAR President-elect Pat Vredevoogd Combs, who executed the agreement at AMPI's 50th anniversary meeting in Mexico City.
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Wednesday, October 04, 2006
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
and David Breidenbach, Realtor® 619-888-3322, www.BreidyPropertiesInc.com
DESPITE SURGE IN MULTIFAMILY PRODUCTION, CALIFORNIA HOUSING STARTS DROP
HUD AWARDS CALIFORNIA $2.35 MILLION TO HELP FIGHT HOUSING DISCRIMINATION
PENDING HOME SALES INDICATE STEADY MARKET IN COMING MONTHS
REAL ESTATE CONSTRUCTION SPENDING CONTINUES TO RISE
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DESPITE SURGE IN MULTIFAMILY PRODUCTION, CALIFORNIA HOUSING STARTS DROP
New home construction in California declined during August 2006, falling 25.3 percent when 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, 13,128 new housing units were started throughout the state in August, with single-family units accounting for 59 percent of the starts. While multifamily permits are up 8.3 percent for the first eight months of the year, single-family permits are down 24.7 percent. "Multifamily production continues to rise, with particularly strong activity in Los Angeles, Orange County, and the San Francisco Bay Area -- much of it related to vertical construction in the urban core," said CBIA Chief Economist Alan Nevin.
Even with the decline, California builders are on track to produce 180,000 new single-family and multifamily units--the fourth highest total on record--this year. According to the report, single-family construction during August was strongest in the Riverside-San Bernardino-Ontario and Sacramento-Arden-Roseville regions, followed by the Los Angeles-Long Beach-Glendale region.
http://www.cbia.org/index.cfm?pageid=1338&preview=yes
DESPITE SURGE IN MULTIFAMILY PRODUCTION, CALIFORNIA HOUSING STARTS DROP
HUD AWARDS CALIFORNIA $2.35 MILLION TO HELP FIGHT HOUSING DISCRIMINATION
PENDING HOME SALES INDICATE STEADY MARKET IN COMING MONTHS
REAL ESTATE CONSTRUCTION SPENDING CONTINUES TO RISE
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DESPITE SURGE IN MULTIFAMILY PRODUCTION, CALIFORNIA HOUSING STARTS DROP
New home construction in California declined during August 2006, falling 25.3 percent when 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, 13,128 new housing units were started throughout the state in August, with single-family units accounting for 59 percent of the starts. While multifamily permits are up 8.3 percent for the first eight months of the year, single-family permits are down 24.7 percent. "Multifamily production continues to rise, with particularly strong activity in Los Angeles, Orange County, and the San Francisco Bay Area -- much of it related to vertical construction in the urban core," said CBIA Chief Economist Alan Nevin.
Even with the decline, California builders are on track to produce 180,000 new single-family and multifamily units--the fourth highest total on record--this year. According to the report, single-family construction during August was strongest in the Riverside-San Bernardino-Ontario and Sacramento-Arden-Roseville regions, followed by the Los Angeles-Long Beach-Glendale region.
http://www.cbia.org/index.cfm?pageid=1338&preview=yes
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HUD AWARDS CALIFORNIA $2.35 MILLION TO HELP FIGHT HOUSING DISCRIMINATION
The Dept. of Housing and Urban Development (HUD) this week awarded $18.1 million in grants to groups across the nation to help educate Americans about their rights and responsibilities under the Fair Housing Act. Funded through HUD's Fair Housing Initiatives Program, the grants were awarded under two initiatives: Private Enforcement and Education and Outreach. Nearly $14 million will be used to investigate allegations of housing discrimination, while the remaining $4.2 million will be devoted to educating the public and members of the housing industry about their obligations under federal, state, and local fair housing laws.
More than 100 organizations demonstrating results-driven fair housing programs received grants from HUD. California was one of 42 states included; various groups in the Golden State will receive $2.35 million
HUD AWARDS CALIFORNIA $2.35 MILLION TO HELP FIGHT HOUSING DISCRIMINATION
The Dept. of Housing and Urban Development (HUD) this week awarded $18.1 million in grants to groups across the nation to help educate Americans about their rights and responsibilities under the Fair Housing Act. Funded through HUD's Fair Housing Initiatives Program, the grants were awarded under two initiatives: Private Enforcement and Education and Outreach. Nearly $14 million will be used to investigate allegations of housing discrimination, while the remaining $4.2 million will be devoted to educating the public and members of the housing industry about their obligations under federal, state, and local fair housing laws.
More than 100 organizations demonstrating results-driven fair housing programs received grants from HUD. California was one of 42 states included; various groups in the Golden State will receive $2.35 million
http://www.hud.gov/news/release.cfm?content=pr06-123.cfm
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PENDING HOME SALES INDICATE STEADY MARKET IN COMING MONTHS
The housing market will continue to stabilize in the months ahead, according to NAR's most recent Pending Homes Sales Index (PHSI). In August, the PHSI stood at 110.1, up 4.3 percent from the previous month and down 14.1 percent from August 2005. The index gauges home sales activity for upcoming months based on the number of transactions that have signed contracts but are not yet closed. A PHSI of 100 or more generally indicates a high level of homes sales activity.
"Our sense is that home sales may have reached a low in August -- the Pending Home Sales Index shows home sales should be fairly stable over the next two months, although a minor decline is possible," said NAR Chief Economist David Lereah. "With fewer new listings coming on the market, we should be able to draw down the inventory supply early next year to the point where home prices will rise, but at a slower pace than historic norms."
The PHSI declined across the nation in August compared with the readings a year ago. On a regional basis, the PHSI was highest in the South, where it declined 9.4 percent to 126.8. In the West, the index fell 16.9 percent to 112.7. The PHSI also declined in the Northeast and Midwest regions, falling to 95.4 and 93.8, respectively.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
PENDING HOME SALES INDICATE STEADY MARKET IN COMING MONTHS
The housing market will continue to stabilize in the months ahead, according to NAR's most recent Pending Homes Sales Index (PHSI). In August, the PHSI stood at 110.1, up 4.3 percent from the previous month and down 14.1 percent from August 2005. The index gauges home sales activity for upcoming months based on the number of transactions that have signed contracts but are not yet closed. A PHSI of 100 or more generally indicates a high level of homes sales activity.
"Our sense is that home sales may have reached a low in August -- the Pending Home Sales Index shows home sales should be fairly stable over the next two months, although a minor decline is possible," said NAR Chief Economist David Lereah. "With fewer new listings coming on the market, we should be able to draw down the inventory supply early next year to the point where home prices will rise, but at a slower pace than historic norms."
The PHSI declined across the nation in August compared with the readings a year ago. On a regional basis, the PHSI was highest in the South, where it declined 9.4 percent to 126.8. In the West, the index fell 16.9 percent to 112.7. The PHSI also declined in the Northeast and Midwest regions, falling to 95.4 and 93.8, respectively.
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REAL ESTATE CONSTRUCTION SPENDING CONTINUES TO RISE
After falling just below $1.2 trillion in July, the seasonally adjusted annual rate of construction spending again topped $1.2 trillion in August 2006, rising 4.4 percent over spending one year earlier, according to a recent report from the U.S. Census Bureau. Construction spending totaled $793 billion during the first eight months of 2006, up 7.2 percent over construction spending during the same period in 2005. The annual pace of total construction spending has remained above $1 trillion since July 2004.
During August 2006, residential construction spending declined 5.1 percent compared with one year earlier, standing at a rate of $626 billion, while the value of nonresidential construction activity rose 17.1 percent to a rate of $575 billion, according to the report.
REAL ESTATE CONSTRUCTION SPENDING CONTINUES TO RISE
After falling just below $1.2 trillion in July, the seasonally adjusted annual rate of construction spending again topped $1.2 trillion in August 2006, rising 4.4 percent over spending one year earlier, according to a recent report from the U.S. Census Bureau. Construction spending totaled $793 billion during the first eight months of 2006, up 7.2 percent over construction spending during the same period in 2005. The annual pace of total construction spending has remained above $1 trillion since July 2004.
During August 2006, residential construction spending declined 5.1 percent compared with one year earlier, standing at a rate of $626 billion, while the value of nonresidential construction activity rose 17.1 percent to a rate of $575 billion, according to the report.
http://www.census.gov/const/C30/release.pdf
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Fast Facts
Calif. median home price - August 06: $576,360 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region August 06:
Santa Barbara So. Coast $1,190,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region August 06:
High Desert $332,900 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Second Quarter 06:
23 percent (Source: C.A.R.)
Mortgage rates - week ending 9/28:
30-yr. fixed: 6.31%; Fees/points: 0.4%
15-yr. fixed: 5.98%; Fees/points: 0.4%
1-yr. adjustable: 5.47%; Fees/points: 0.6%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®,
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - August 06: $576,360 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region August 06:
Santa Barbara So. Coast $1,190,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region August 06:
High Desert $332,900 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Second Quarter 06:
23 percent (Source: C.A.R.)
Mortgage rates - week ending 9/28:
30-yr. fixed: 6.31%; Fees/points: 0.4%
15-yr. fixed: 5.98%; Fees/points: 0.4%
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 195,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, September 27, 2006
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
CONSUMER CONFIDENCE IMPROVES IN SEPTEMBER
GOVERNOR SIGNS C.A.R.-SPONSORED LICENSING BILL INTO LAW
C.A.R. REPORTS HOME SALES DECREASED 30.1 PERCENT IN AUGUST
DEPT. OF INSURANCE ACCUSES TITLE COMPANY OF ILLEGAL REBATE ACTIVITIES
DRE HAS AUTHORITY TO REVOKE LICENSE OF MOST CRIMINALS
U.S. LEADING INDEX INDICATES SLOW BUT STEADY ECONOMIC GROWTH
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CONSUMER CONFIDENCE IMPROVES IN SEPTEMBER
The confidence level of U.S. consumers improved this month, buoyed by a more favorable assessment of current economic conditions, according to a recent report by The Conference Board. Following a sharp decline in August, the Board's Consumer Confidence Index increased to 104.5 in September, up from 100.2 in August. The Present Situation and Expectations indexes also improved, rising to 127.7 and 89, respectively. Despite the gain in consumer confidence, "there is little to suggest a significant change in economic activity as we enter the final quarter of 2006," said Lynn Franco, director of The Conference Board Consumer Research Center.
According to the report, more Americans are optimistic about jobs and incomes in the months ahead. The proportion of consumers anticipating more jobs to open up increased from 14.2 percent to 14.4 percent in September, and the percentage of consumers anticipating their incomes to increase in the near-term edged up to 19.7 percent from 17.9 percent in August.
http://www.conference-board.org/economics/consumerConfidence.cfm
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GOVERNOR SIGNS C.A.R.-SPONSORED LICENSING BILL INTO LAW
Governor Schwarzenegger signed C.A.R.-sponsored AB 2429 (Negrete McLeod), "Real Estate Salesperson Licensure," into law last week. The measure eliminates the "conditional" real estate license by requiring salesperson applicants, after Sept. 30, 2007, to complete all three of the Department of Real Estate-mandated pre-license courses prior to taking the license examination.
"Currently, an applicant may take one class, pass the exam, and receive a conditional license, then take up to 18 months to complete the required coursework -- all the while engaging in licensed real estate activity," said C.A.R. President Vince Malta. "AB 2429 will increase the foundational knowledge of sales licensees entering the profession, and prevent ill-equipped licensees from engaging in licensed activity. According to the Department of Real Estate, 85 percent of new licensees came in under the conditional license option last year."
http://www.car.org/index.php?id=MzY1NjE=
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C.A.R. REPORTS HOME SALES DECREASED 30.1 PERCENT IN AUGUST
The median price of an existing single-family home in California increased 1.6 percent in August and sales decreased 30.1 percent compared with the same period a year ago, C.A.R. recently reported. "We experienced the greatest year-to-year sales decline last month since August 1982, when sales fell 30.4 percent," said C.A.R. President Vince Malta. "This is another indication that we're in the initial stages of a long-anticipated adjustment in the market."
According to the report, the median price of an existing, single-family detached home in California during August 2006 was $576,360, a 1.6 percent increase over the revised $567,320 median for August 2005. Also in August, closed escrow sales of existing, single-family detached homes in California totaled 442,150 at a seasonally adjusted annualized rate, down 30.1 percent compared with the sales pace recorded one year earlier and down 2.6 percent from home resale activity in July.
"Although the median price in the state and in several regions hit an all-time record in August, we expect softer prices toward the end of the year," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "The median price typically peaks somewhere between June and August before declining toward the end of the year. Some areas of the state already have experienced year-to-year declines for more than two months. This is in stark contrast to the past several years when there were constant double-digit increases. The long-term trend remains to be seen."
http://www.car.org/index.php?id=MzY1Njg
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DEPT. OF INSURANCE ACCUSES TITLE COMPANY OF ILLEGAL REBATE ACTIVITIES
The California Dept. of Insurance this week ordered Stewart Title Guaranty Company to stop engaging in alleged illegal captive reinsurance schemes, which violate state and federal anti-kickback laws. According to the Dept. of Insurance, between 1999 and 2005, Stewart Title channeled money to approximately five home builders and lenders in exchange for client referrals. Under the scheme, each participant set up "shell companies" for the sole purpose of collecting illegal rebates amounting to more than $443,000 and affecting 3,650 homeowners in California.
In 2005, the Dept. of Insurance fined nine title companies more than $38 million for engaging in similar schemes.
http://www.insurance.ca.gov/0400-news/0100-press-releases/0070-2006/release120-06.cfm
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DRE HAS AUTHORITY TO REVOKE LICENSE OF MOST CRIMINALS
In light of the recent Petropoulus v. Department of Real Estate case (47 Cal. Rptr.3d 812), REALTORS® have questioned if those with criminal records can obtain or maintain a real estate license or access to MLS lockboxes. The Petropoulus ruling does not change the DRE's authority to deny a license application or revoke a license based on most criminal offenses.
The DRE screens license applicants for eligibility, although occasionally an applicant's criminal record is missed. C.A.R. members aware of someone with a real estate license who has escaped the normal scrutiny can file a complaint with the DRE, which will investigate the matter to see if action should be taken against the licensee. The complaint form is found at http://www.dre.ca.gov/forms/re519.pdf.
In addition, rule 13.11 of the California Model MLS Rules gives an MLS the right to refuse to issue a key or to limit access to lockboxes if it determines the security of the system would be compromised. If you are concerned that someone with a criminal record has access to a lockbox system, report it immediately to the local MLS so the MLS can take appropriate action.
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U.S. LEADING INDEX INDICATES SLOW BUT STEADY ECONOMIC GROWTH
The U.S. leading index, a key barometer of economic conditions, has decreased in five of the last eight months, including a 0.2 percent decline in August, The Conference Board recently reported. The index now stands at 137.6 (1996=100), 1.5 points below the high of 139.1 reached in January, but remains 0.4 percent above the level achieved a year ago.
According to the report, the leading index signals slow but steady economic growth in the coming months. Since January, declining housing permits and weakened consumer confidence have been the largest negative contributors to the leading index. The coincident index, a measure of current economic activity, increased 0.1 percent to 123.3 in August, while the lagging index, a reflection of past economic activity, rose 0.3 percent to 124.2.
http://www.conference-board.org/economics/bci/pressRelease_output.cfm?cid=1
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Fast Facts
Calif. median home price - August 06: $576,360 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region August 06:
Santa Barbara So. Coast $1,190,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region August 06:
High Desert $332,900 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Second Quarter 06:
23 percent (Source: C.A.R.)
Mortgage rates - week ending 9/21:
30-yr. fixed: 6.4%; Fees/points: 0.5%
15-yr. fixed: 6.06%; Fees/points: 0.5%
1-yr. adjustable: 5.54%; Fees/points: 0.8%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 195,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
DEPT. OF INSURANCE ACCUSES TITLE COMPANY OF ILLEGAL REBATE ACTIVITIES
The California Dept. of Insurance this week ordered Stewart Title Guaranty Company to stop engaging in alleged illegal captive reinsurance schemes, which violate state and federal anti-kickback laws. According to the Dept. of Insurance, between 1999 and 2005, Stewart Title channeled money to approximately five home builders and lenders in exchange for client referrals. Under the scheme, each participant set up "shell companies" for the sole purpose of collecting illegal rebates amounting to more than $443,000 and affecting 3,650 homeowners in California.
In 2005, the Dept. of Insurance fined nine title companies more than $38 million for engaging in similar schemes.
http://www.insurance.ca.gov/0400-news/0100-press-releases/0070-2006/release120-06.cfm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
DRE HAS AUTHORITY TO REVOKE LICENSE OF MOST CRIMINALS
In light of the recent Petropoulus v. Department of Real Estate case (47 Cal. Rptr.3d 812), REALTORS® have questioned if those with criminal records can obtain or maintain a real estate license or access to MLS lockboxes. The Petropoulus ruling does not change the DRE's authority to deny a license application or revoke a license based on most criminal offenses.
The DRE screens license applicants for eligibility, although occasionally an applicant's criminal record is missed. C.A.R. members aware of someone with a real estate license who has escaped the normal scrutiny can file a complaint with the DRE, which will investigate the matter to see if action should be taken against the licensee. The complaint form is found at http://www.dre.ca.gov/forms/re519.pdf.
In addition, rule 13.11 of the California Model MLS Rules gives an MLS the right to refuse to issue a key or to limit access to lockboxes if it determines the security of the system would be compromised. If you are concerned that someone with a criminal record has access to a lockbox system, report it immediately to the local MLS so the MLS can take appropriate action.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
U.S. LEADING INDEX INDICATES SLOW BUT STEADY ECONOMIC GROWTH
The U.S. leading index, a key barometer of economic conditions, has decreased in five of the last eight months, including a 0.2 percent decline in August, The Conference Board recently reported. The index now stands at 137.6 (1996=100), 1.5 points below the high of 139.1 reached in January, but remains 0.4 percent above the level achieved a year ago.
According to the report, the leading index signals slow but steady economic growth in the coming months. Since January, declining housing permits and weakened consumer confidence have been the largest negative contributors to the leading index. The coincident index, a measure of current economic activity, increased 0.1 percent to 123.3 in August, while the lagging index, a reflection of past economic activity, rose 0.3 percent to 124.2.
http://www.conference-board.org/economics/bci/pressRelease_output.cfm?cid=1
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - August 06: $576,360 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region August 06:
Santa Barbara So. Coast $1,190,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region August 06:
High Desert $332,900 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Second Quarter 06:
23 percent (Source: C.A.R.)
Mortgage rates - week ending 9/21:
30-yr. fixed: 6.4%; Fees/points: 0.5%
15-yr. fixed: 6.06%; Fees/points: 0.5%
1-yr. adjustable: 5.54%; Fees/points: 0.8%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 195,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, September 20, 2006
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
Wednesday, September 20, 2006
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
and David Breidenbach, Realtor® 619-888-3322, www.BreidyPropertiesInc.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
FED HOLDS FEDERAL FUNDS RATE AT 5.25 PERCENT
BUILDER CONFIDENCE DECLINES TO LOWEST LEVEL SINCE FEBRUARY 1991
U.S. HOUSING STARTS DECLINE 19.8 PERCENT IN AUGUST
MORE AMERICANS TURN TO THE INTERNET FOR POLITICAL NEWS AND INFORMATION
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FED HOLDS FEDERAL FUNDS RATE AT 5.25 PERCENT
The Federal Reserve's Open Market Committee today decided to maintain the target for the federal funds rate at 5.25 percent. This is the second consecutive month the committee opted not to raise the target rate, which steadily increased from 1 percent to 5.25 percent between June 2004 and July 2006. The federal funds target rate is the interest rate charged by banks when they borrow funds "overnight" from each other.
FED HOLDS FEDERAL FUNDS RATE AT 5.25 PERCENT
BUILDER CONFIDENCE DECLINES TO LOWEST LEVEL SINCE FEBRUARY 1991
U.S. HOUSING STARTS DECLINE 19.8 PERCENT IN AUGUST
MORE AMERICANS TURN TO THE INTERNET FOR POLITICAL NEWS AND INFORMATION
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FED HOLDS FEDERAL FUNDS RATE AT 5.25 PERCENT
The Federal Reserve's Open Market Committee today decided to maintain the target for the federal funds rate at 5.25 percent. This is the second consecutive month the committee opted not to raise the target rate, which steadily increased from 1 percent to 5.25 percent between June 2004 and July 2006. The federal funds target rate is the interest rate charged by banks when they borrow funds "overnight" from each other.
Citing the cooling housing market as a factor for "moderation in economic growth," the Fed also reported higher levels of inflation. "However, inflation pressures seem likely to moderate over time, reflecting reduced impetus from energy prices, contained inflation expectations, and the cumulative effects of monetary policy actions and other factors restraining aggregate demand," the Fed said in a prepared statement.
The Fed also indicated the possibility of future interest rate increases, acknowledging that "some inflation risks remain. The extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information."
http://www.federalreserve.gov/boarddocs/press/monetary/2006/20060920/default.htm
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BUILDER CONFIDENCE DECLINES TO LOWEST LEVEL SINCE FEBRUARY 1991
The confidence level of the nation's home builders declined for the eighth consecutive month in September, a reflection of increased sales cancellations and rising inventories of unsold homes, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The seasonally adjusted HMI stands at 30 this month, down three points from August and down 35 points from a year ago. In the West, the HMI has steadily declined since April and now stands at 38. An HMI below 50 indicates more builders view sales conditions as poor versus good.
http://www.federalreserve.gov/boarddocs/press/monetary/2006/20060920/default.htm
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BUILDER CONFIDENCE DECLINES TO LOWEST LEVEL SINCE FEBRUARY 1991
The confidence level of the nation's home builders declined for the eighth consecutive month in September, a reflection of increased sales cancellations and rising inventories of unsold homes, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The seasonally adjusted HMI stands at 30 this month, down three points from August and down 35 points from a year ago. In the West, the HMI has steadily declined since April and now stands at 38. An HMI below 50 indicates more builders view sales conditions as poor versus good.
Two of the three HMI components decreased this month. The component measuring current single-family sales declined 5 points to 32, while the component gauging sales expectations fell four points to 37. The component measuring the traffic of prospective buyers remained unchanged at 22.
http://www.nahb.org/news_details.aspx?newsID=3276
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U.S. HOUSING STARTS DECLINE 19.8 PERCENT IN AUGUST
The seasonally adjusted annual rate for privately owned housing starts dropped for the fifth consecutive month in August, falling to a rate of 1.67 million units, according to a report released yesterday by the U.S. Dept. of Commerce. The August construction pace was down 6 percent from July and down 19.8 percent from a year ago. Single-family housing starts decreased 20.6 percent from August 2005, to a rate of 1.36 million units, while starts for buildings with five or more units decreased 16.9 percent to a rate of 265,000. The number of building permits issued, which can be an indicator of future building activity, declined 21.9 percent from one year earlier to a seasonally adjusted annual rate of 1.72 million permits.
http://www.nahb.org/news_details.aspx?newsID=3276
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U.S. HOUSING STARTS DECLINE 19.8 PERCENT IN AUGUST
The seasonally adjusted annual rate for privately owned housing starts dropped for the fifth consecutive month in August, falling to a rate of 1.67 million units, according to a report released yesterday by the U.S. Dept. of Commerce. The August construction pace was down 6 percent from July and down 19.8 percent from a year ago. Single-family housing starts decreased 20.6 percent from August 2005, to a rate of 1.36 million units, while starts for buildings with five or more units decreased 16.9 percent to a rate of 265,000. The number of building permits issued, which can be an indicator of future building activity, declined 21.9 percent from one year earlier to a seasonally adjusted annual rate of 1.72 million permits.
The construction pace for housing units decreased across the nation in June. The rate for privately owned housing starts declined 28.8 percent in the Midwest, 28.2 percent in the West, 24 percent in the Northeast, and 9.9 percent in the South.
http://www.census.gov/const/newresconst_200608.pdf
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MORE AMERICANS TURN TO THE INTERNET FOR POLITICAL NEWS AND INFORMATION
A record number of Americans surfed the Internet for information about politics and the 2006 mid-term elections on a typical day in August, according to a recent study by the Pew Internet & American Life Project. Last month, 26 million adults, or nearly one-fifth of adult Internet-users, went online each day in search of political news. This is more than double the number of Americans who searched the Internet for political or campaign-related information on a typical day during a similar point in the 2002 mid-term election cycle. Online users who relied on the Internet for political news in August were more likely to be male, college graduates, and have broadband access at home.
http://www.census.gov/const/newresconst_200608.pdf
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MORE AMERICANS TURN TO THE INTERNET FOR POLITICAL NEWS AND INFORMATION
A record number of Americans surfed the Internet for information about politics and the 2006 mid-term elections on a typical day in August, according to a recent study by the Pew Internet & American Life Project. Last month, 26 million adults, or nearly one-fifth of adult Internet-users, went online each day in search of political news. This is more than double the number of Americans who searched the Internet for political or campaign-related information on a typical day during a similar point in the 2002 mid-term election cycle. Online users who relied on the Internet for political news in August were more likely to be male, college graduates, and have broadband access at home.
According to the study, the growing use of the Internet for political news and information is a notable trend because mid-term election campaigns generally attract less interest than those during the years for presidential elections. During the last presidential election in November 2004, 21 million online users turned to the Internet for political news. This is 5 million less than the number of adults who used the Internet during the August 2006 mid-term elections.
http://www.pewinternet.org/pdfs/PIP_Politics%20Aug06_Memo.pdf
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Fast Facts
Calif. median home price - July 06: $567,360 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region July 06:
Santa Barbara So. Coast $1,075,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region July 06:
High Desert $333,330 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Second Quarter 06:
23 percent (Source: C.A.R.)
Mortgage rates - week ending 9/14:
30-yr. fixed: 6.43%; Fees/points: 0.5%
15-yr. fixed: 6.11%; Fees/points: 0.4%
1-yr. adjustable: 5.60%; Fees/points: 0.7%
(Source: Freddie Mac)
http://www.pewinternet.org/pdfs/PIP_Politics%20Aug06_Memo.pdf
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - July 06: $567,360 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region July 06:
Santa Barbara So. Coast $1,075,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region July 06:
High Desert $333,330 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Second Quarter 06:
23 percent (Source: C.A.R.)
Mortgage rates - week ending 9/14:
30-yr. fixed: 6.43%; Fees/points: 0.5%
15-yr. fixed: 6.11%; Fees/points: 0.4%
1-yr. adjustable: 5.60%; 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 195,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, September 13, 2006
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, September 13, 2006
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
and David Breidenbach, Realtor® 619-888-3322, www.BreidyPropertiesInc.com
CONSUMER CONFIDENCE EDGES UP IN THE GOLDEN STATE
NAR ANTICIPATES NATIONAL HOME SALES TO DECLINE 7.6 PERCENT THIS YEAR
SEPTEMBER IS NATIONAL PREPAREDNESS MONTH
LARGE INSURER REQUESTS RATE DECREASE FOR HOMEOWNER'S INSURANCE
LEADERS OF ZILLOW, REALTOR.COM® HEADLINE TECH TUESDAY
MORTGAGE LOAN ACTIVITY INCREASES 3.2 PERCENT
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CONSUMER CONFIDENCE EDGES UP IN THE GOLDEN STATE
Boosted by stabilizing gas prices, the confidence level of Californians increased this quarter compared with second quarter of 2006, according to a recent report from the Anderson Center for Economic Research at Chapman University. During the third quarter, the Center's California Composite Index of Consumer Sentiment rose to 88.6, up from 79.5 in the second quarter as well as from the third quarter of 2005. Despite the increase, the third quarter of 2006 was the sixth consecutive quarter the consumer sentiment index stood below 100, reflecting a higher proportion of pessimistic versus optimistic consumers in the Golden State.
Two of the index's three components increased this quarter. The component measuring consumers' outlook on current economic conditions rose 19.3 points from the third quarter of 2005 and now stands at 87.9, while the component gauging the outlook for future conditions increased 4.5 points from one year ago to 90.3. A decline in the third component, which measures consumers' plans for purchasing "big ticket items," suggests consumer spending will slow in California in the coming months.
http://www1.chapman.edu/argyros/acer/CSResults_2006Q3_9-6-06.pdf
CONSUMER CONFIDENCE EDGES UP IN THE GOLDEN STATE
NAR ANTICIPATES NATIONAL HOME SALES TO DECLINE 7.6 PERCENT THIS YEAR
SEPTEMBER IS NATIONAL PREPAREDNESS MONTH
LARGE INSURER REQUESTS RATE DECREASE FOR HOMEOWNER'S INSURANCE
LEADERS OF ZILLOW, REALTOR.COM® HEADLINE TECH TUESDAY
MORTGAGE LOAN ACTIVITY INCREASES 3.2 PERCENT
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CONSUMER CONFIDENCE EDGES UP IN THE GOLDEN STATE
Boosted by stabilizing gas prices, the confidence level of Californians increased this quarter compared with second quarter of 2006, according to a recent report from the Anderson Center for Economic Research at Chapman University. During the third quarter, the Center's California Composite Index of Consumer Sentiment rose to 88.6, up from 79.5 in the second quarter as well as from the third quarter of 2005. Despite the increase, the third quarter of 2006 was the sixth consecutive quarter the consumer sentiment index stood below 100, reflecting a higher proportion of pessimistic versus optimistic consumers in the Golden State.
Two of the index's three components increased this quarter. The component measuring consumers' outlook on current economic conditions rose 19.3 points from the third quarter of 2005 and now stands at 87.9, while the component gauging the outlook for future conditions increased 4.5 points from one year ago to 90.3. A decline in the third component, which measures consumers' plans for purchasing "big ticket items," suggests consumer spending will slow in California in the coming months.
http://www1.chapman.edu/argyros/acer/CSResults_2006Q3_9-6-06.pdf
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NAR ANTICIPATES NATIONAL HOME SALES TO DECLINE 7.6 PERCENT THIS YEAR
Despite rising inventory levels and home price imbalances in some areas of the county, national existing-home sales are anticipated to reach the third highest level on record in 2006, according to NAR's recently revised forecast. For the year, existing-home sales in the U.S. are expected to fall 7.6 percent to 6.54 million. New-home sales are forecasted at 1.08 million for the year, down 16.1 percent from 2005 and the fourth highest level on record.
As the market continues to balance out, home prices may edge down temporarily, according to the forecast. "A year ago we had record home sales and tight supply with buyers bidding over the asking price," said NAR Chief Economist David Lereah. "This year sales are slowing, homes are plentiful and sellers are negotiating. Under these conditions, we'll probably see prices dip temporarily below year-ago levels as the market works through a build up in housing inventory."
http://www.realtor.org/PublicAffairsWeb.nsf/Pages/SeptemberForecast07?OpenDocument
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SEPTEMBER IS NATIONAL PREPAREDNESS MONTH
Each September is designated as National Preparedness Month, a nationwide effort highlighting the importance of emergency preparedness to Americans. Sponsored by the U.S. Dept. of Homeland Security, National Preparedness Month focuses on the simple steps Americans can take to develop a plan for handling emergencies in their homes and businesses. Steps include obtaining an emergency supply kit, developing a family emergency plan, and staying informed about potential natural disasters and other threats. More specific guidelines for families and businesses are available at www.ready.gov.
http://www.ready.gov/america/npm/index.htm
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LARGE INSURER REQUESTS RATE DECREASE FOR HOMEOWNER'S INSURANCE
State Farm has requested a 10.6 percent reduction in homeowner's insurance rates, a request that would result in significant savings for 1.2 million Californians, the Calif. Dept. of Insurance recently announced. If approved, policyholders would save an average of $103 annually, amounting to $123 million in total savings across the state.
Earlier this year, Insurance Commissioner John Garamendi released a study called "Lower Claims, Higher Profits: Where Do Your Premium Dollars Go?" The results of the study revealed that many of California's largest insurance companies pay less than 50 cents of each premium dollar to settle policyholder claims. In response to the study, Garamendi ordered several insurance companies, including State Farm, to justify their rates. State Farm's request for lower rates must be reviewed and approved by the Dept. of Insurance.
http://www.insurance.ca.gov/0400-news/0100-press-releases/0070-2006/release-109-2006.cfm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
MORTGAGE LOAN ACTIVITY INCREASES 3.2 PERCENT
The Market Composite Index, a measure of mortgage loan application volume, was 584.2 for the week ending Sept. 8, up 3.2 percent on a seasonally adjusted basis from 566.3 one week earlier, The Mortgage Bankers Association reported today. On an unadjusted basis, the index decreased 8.3 percent for the week ending Sept. 8 compared with the previous week and was down 22.8 percent compared with the same week one year earlier.
The refinance share of mortgage activity decreased to 40.3 percent of total applications for the week ending Sept. 8 from 41 percent the previous week. The adjustable-rate mortgage (ARM) share of activity is at its lowest level since October 2003, declining to 25.5 percent of total applications from 26.2 percent the previous week.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - July 06: $567,360 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region July 06:
Santa Barbara So. Coast $1,075,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region July 06:
High Desert $333,330 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Second Quarter 06:
23 percent (Source: C.A.R.)
Mortgage rates - week ending 9/13:
30-yr. fixed: 6.47%; Fees/points: 0.4%
15-yr. fixed: 6.16%; Fees/points: 0.4%
1-yr. adjustable: 5.63%; Fees/points: 0.7%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association
NAR ANTICIPATES NATIONAL HOME SALES TO DECLINE 7.6 PERCENT THIS YEAR
Despite rising inventory levels and home price imbalances in some areas of the county, national existing-home sales are anticipated to reach the third highest level on record in 2006, according to NAR's recently revised forecast. For the year, existing-home sales in the U.S. are expected to fall 7.6 percent to 6.54 million. New-home sales are forecasted at 1.08 million for the year, down 16.1 percent from 2005 and the fourth highest level on record.
As the market continues to balance out, home prices may edge down temporarily, according to the forecast. "A year ago we had record home sales and tight supply with buyers bidding over the asking price," said NAR Chief Economist David Lereah. "This year sales are slowing, homes are plentiful and sellers are negotiating. Under these conditions, we'll probably see prices dip temporarily below year-ago levels as the market works through a build up in housing inventory."
http://www.realtor.org/PublicAffairsWeb.nsf/Pages/SeptemberForecast07?OpenDocument
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
SEPTEMBER IS NATIONAL PREPAREDNESS MONTH
Each September is designated as National Preparedness Month, a nationwide effort highlighting the importance of emergency preparedness to Americans. Sponsored by the U.S. Dept. of Homeland Security, National Preparedness Month focuses on the simple steps Americans can take to develop a plan for handling emergencies in their homes and businesses. Steps include obtaining an emergency supply kit, developing a family emergency plan, and staying informed about potential natural disasters and other threats. More specific guidelines for families and businesses are available at www.ready.gov.
http://www.ready.gov/america/npm/index.htm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
LARGE INSURER REQUESTS RATE DECREASE FOR HOMEOWNER'S INSURANCE
State Farm has requested a 10.6 percent reduction in homeowner's insurance rates, a request that would result in significant savings for 1.2 million Californians, the Calif. Dept. of Insurance recently announced. If approved, policyholders would save an average of $103 annually, amounting to $123 million in total savings across the state.
Earlier this year, Insurance Commissioner John Garamendi released a study called "Lower Claims, Higher Profits: Where Do Your Premium Dollars Go?" The results of the study revealed that many of California's largest insurance companies pay less than 50 cents of each premium dollar to settle policyholder claims. In response to the study, Garamendi ordered several insurance companies, including State Farm, to justify their rates. State Farm's request for lower rates must be reviewed and approved by the Dept. of Insurance.
http://www.insurance.ca.gov/0400-news/0100-press-releases/0070-2006/release-109-2006.cfm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
MORTGAGE LOAN ACTIVITY INCREASES 3.2 PERCENT
The Market Composite Index, a measure of mortgage loan application volume, was 584.2 for the week ending Sept. 8, up 3.2 percent on a seasonally adjusted basis from 566.3 one week earlier, The Mortgage Bankers Association reported today. On an unadjusted basis, the index decreased 8.3 percent for the week ending Sept. 8 compared with the previous week and was down 22.8 percent compared with the same week one year earlier.
The refinance share of mortgage activity decreased to 40.3 percent of total applications for the week ending Sept. 8 from 41 percent the previous week. The adjustable-rate mortgage (ARM) share of activity is at its lowest level since October 2003, declining to 25.5 percent of total applications from 26.2 percent the previous week.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - July 06: $567,360 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region July 06:
Santa Barbara So. Coast $1,075,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region July 06:
High Desert $333,330 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Second Quarter 06:
23 percent (Source: C.A.R.)
Mortgage rates - week ending 9/13:
30-yr. fixed: 6.47%; Fees/points: 0.4%
15-yr. fixed: 6.16%; Fees/points: 0.4%
1-yr. adjustable: 5.63%; 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 195,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
Edited by Mark Giberson, and Amanda Hopkins © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, September 06, 2006
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
and David Breidenbach, Realtor® 619-888-3322, www.BreidyPropertiesInc.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
PSYCHOLOGICAL FACTORS CONTRIBUTE TO DECLINING HOME SALES
REAL ESTATE CONSTRUCTION SPENDING CONTINUES TO RISE
HOMEOWNER'S GUIDE IS NOW CLIENTDIRECT¿
ONLY SIX WEEKS BEFORE EXPO - REGISTER ONLINE TODAY
C.A.R.-SPONSORED BILLS AWAIT GOVERNOR'S SIGNATURE
FOURTH ANNUAL REALTOR® SAFETY WEEK IS SEPT. 10-16
ADJUSTABLE-RATE MORTGAGE ACTIVITY AT LOWEST LEVEL SINCE OCTOBER 2003
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
PSYCHOLOGICAL FACTORS CONTRIBUTE TO DECLINING HOME SALES
The housing market should continue leveling out in the coming months, according to NAR's most recent Pending Homes Sales Index (PHSI). In July, the PHSI stood at 105.6, down 7 percent from the previous month and down 16 percent from July 2005. The index gauges home sales activity for upcoming months based on the number of transactions that have signed contracts but are not yet closed. A PHSI of 100 or more generally indicates a high level of homes sales activity.
"We've never seen a general decline in the housing market against a healthy economic backdrop where jobs are being created, the economy in growing and interest rates are favorable," said NAR Chief Economist David Lereah. "Psychological factors are causing some buyers to remain on the sidelines, waiting for prices to stabilize or for more favorable news about the market and the economy. Contributing to this hesitancy is a lot of negative news stories, but in the end we believe that underlying market fundamentals will prevail."
The PHSI declined across the nation in July compared with the readings a year ago. On a regional basis, the PHSI was highest in the South, where it declined 11.3 percent to 122.3. In the West, the index fell 20.3 percent to 103.1. The PHSI also declined in the Midwest and Northeast regions, falling to 93.3 and 92.1, respectively.
http://www.realtor.org//PublicAffairsWeb.nsf/Pages/PHSIJuly06?OpenDocument
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
REAL ESTATE CONSTRUCTION SPENDING CONTINUES TO RISE
The annual pace of construction spending remained above $1 trillion for the 24th consecutive month in July 2006, rising 5.1 percent to a seasonally adjusted annual rate of $1.2 trillion, according to a recent report by the U.S. Census Bureau. Construction spending totaled $680 billion during the first seven months of 2006, up 8 percent over construction spending during the same period in 2005. The annual pace of total construction spending has remained above $1 trillion since July 2004.
During July 2006, residential construction spending declined 2.8 percent compared with one year earlier, standing at a rate of $637 billion, while the value of nonresidential construction activity rose 15.8 percent to a rate of $563 billion, according to the report.
http://www.census.gov/const/C30/release.pdf
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R.-SPONSORED BILLS AWAIT GOVERNOR'S SIGNATURE
Three pieces of legislation sponsored by C.A.R. are on Gov. Arnold Schwarzenegger's desk for signature: AB 1963 (Leslie), Real Estate Brokers License; AB 2429 (Negrete-McLeod), Real Estate Salesperson Licensure; and AB 2511 (Jones), Land Use Housing.
C.A.R. sponsored AB 1963 and AB 2429 to enhance the licensing requirements for new real estate licensees. Existing law requires most applicants for a brokers license, in addition to passing an examination, to demonstrate a valid salespersons license and two years experience in general real estate. However, current law also allows the Dept. of Real Estate to grant a brokers license to an applicant with a degree from a four-year college or university without requiring any prior real estate experience. AB 1963 will require the same two years of "general real estate" experience for these "degree brokers."
Additionally, C.A.R.-sponsored AB 2429 will require salesperson applicants, after Sept. 31, 2007, to complete all three of the mandated pre-license courses prior to taking the license examination. Currently, an applicant may take one class, pass the exam, receive a conditional license, and then take up to 18 months to complete the required coursework -- all while engaging in licensed real estate activity. AB 2429 will increase the foundational knowledge of sales licensees entering the profession and prevent ill-equipped licensees from engaging in licensed activity.
C.A.R.-co-sponsored AB 2511 also awaits Gov. Schwarzenegger's signature. The bill will amend the Permit Streamlining Act to provide an expedited review of subdivision maps for subdivisions where at least 49 percent of units are for low- and moderate-income households; require local governments to report their housing production to the state to ensure they can accommodate their share of the regional housing need for the ensuing five years; provide judicial relief for those who challenge local governments refusing to disclose to the Dept. of Housing their plan for meeting the regional housing need; and require the plaintiff to inform the Attorney General should a plaintiff sue the city or county alleging the government is not in compliance with state law.
http://www.car.org/index.php?id=MzY1MTM=
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
ADJUSTABLE-RATE MORTGAGE ACTIVITY AT LOWEST LEVEL SINCE OCTOBER 2003
The Market Composite Index, a measure of mortgage loan application volume, was 566.3 for the week ending Sept. 1, up 1.8 percent on a seasonally adjusted basis from 556.5 one week earlier, The Mortgage Bankers Association reported today. On an unadjusted basis, the index increased 0.4 percent for the week ending Sept. 1 compared with the previous week and was down 26.1 percent compared with the same week one year earlier.
The refinance share of mortgage activity decreased to 41 percent of total applications for the week ending Sept. 1 from 41.5 percent the previous week. The adjustable-rate mortgage (ARM) share of activity hit the lowest level since October 2003, declining to 26.2 percent of total applications from 26.8 percent the previous week.
http://www.mortgagebankers.org/NewsandMedia/PressCenter/44338.htm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - July 06: $567,360 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region July 06:
Santa Barbara So. Coast $1,075,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region July 06:
High Desert $333,330 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index Second Quarter 06:
23 percent (Source: C.A.R.)
Mortgage rates - week ending 8/31:
30-yr. fixed: 6.44%; Fees/points: 0.4%
15-yr. fixed: 6.14%; Fees/points: 0.4%
1-yr. adjustable: 5.59%; 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 195,000 REALTORS® statewide.
Edited by Mark Giberson, markg@car.org and Amanda Hopkins
Copyright © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
PSYCHOLOGICAL FACTORS CONTRIBUTE TO DECLINING HOME SALES
REAL ESTATE CONSTRUCTION SPENDING CONTINUES TO RISE
HOMEOWNER'S GUIDE IS NOW CLIENTDIRECT¿
ONLY SIX WEEKS BEFORE EXPO - REGISTER ONLINE TODAY
C.A.R.-SPONSORED BILLS AWAIT GOVERNOR'S SIGNATURE
FOURTH ANNUAL REALTOR® SAFETY WEEK IS SEPT. 10-16
ADJUSTABLE-RATE MORTGAGE ACTIVITY AT LOWEST LEVEL SINCE OCTOBER 2003
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
PSYCHOLOGICAL FACTORS CONTRIBUTE TO DECLINING HOME SALES
The housing market should continue leveling out in the coming months, according to NAR's most recent Pending Homes Sales Index (PHSI). In July, the PHSI stood at 105.6, down 7 percent from the previous month and down 16 percent from July 2005. The index gauges home sales activity for upcoming months based on the number of transactions that have signed contracts but are not yet closed. A PHSI of 100 or more generally indicates a high level of homes sales activity.
"We've never seen a general decline in the housing market against a healthy economic backdrop where jobs are being created, the economy in growing and interest rates are favorable," said NAR Chief Economist David Lereah. "Psychological factors are causing some buyers to remain on the sidelines, waiting for prices to stabilize or for more favorable news about the market and the economy. Contributing to this hesitancy is a lot of negative news stories, but in the end we believe that underlying market fundamentals will prevail."
The PHSI declined across the nation in July compared with the readings a year ago. On a regional basis, the PHSI was highest in the South, where it declined 11.3 percent to 122.3. In the West, the index fell 20.3 percent to 103.1. The PHSI also declined in the Midwest and Northeast regions, falling to 93.3 and 92.1, respectively.
http://www.realtor.org//PublicAffairsWeb.nsf/Pages/PHSIJuly06?OpenDocument
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
REAL ESTATE CONSTRUCTION SPENDING CONTINUES TO RISE
The annual pace of construction spending remained above $1 trillion for the 24th consecutive month in July 2006, rising 5.1 percent to a seasonally adjusted annual rate of $1.2 trillion, according to a recent report by the U.S. Census Bureau. Construction spending totaled $680 billion during the first seven months of 2006, up 8 percent over construction spending during the same period in 2005. The annual pace of total construction spending has remained above $1 trillion since July 2004.
During July 2006, residential construction spending declined 2.8 percent compared with one year earlier, standing at a rate of $637 billion, while the value of nonresidential construction activity rose 15.8 percent to a rate of $563 billion, according to the report.
http://www.census.gov/const/C30/release.pdf
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R.-SPONSORED BILLS AWAIT GOVERNOR'S SIGNATURE
Three pieces of legislation sponsored by C.A.R. are on Gov. Arnold Schwarzenegger's desk for signature: AB 1963 (Leslie), Real Estate Brokers License; AB 2429 (Negrete-McLeod), Real Estate Salesperson Licensure; and AB 2511 (Jones), Land Use Housing.
C.A.R. sponsored AB 1963 and AB 2429 to enhance the licensing requirements for new real estate licensees. Existing law requires most applicants for a brokers license, in addition to passing an examination, to demonstrate a valid salespersons license and two years experience in general real estate. However, current law also allows the Dept. of Real Estate to grant a brokers license to an applicant with a degree from a four-year college or university without requiring any prior real estate experience. AB 1963 will require the same two years of "general real estate" experience for these "degree brokers."
Additionally, C.A.R.-sponsored AB 2429 will require salesperson applicants, after Sept. 31, 2007, to complete all three of the mandated pre-license courses prior to taking the license examination. Currently, an applicant may take one class, pass the exam, receive a conditional license, and then take up to 18 months to complete the required coursework -- all while engaging in licensed real estate activity. AB 2429 will increase the foundational knowledge of sales licensees entering the profession and prevent ill-equipped licensees from engaging in licensed activity.
C.A.R.-co-sponsored AB 2511 also awaits Gov. Schwarzenegger's signature. The bill will amend the Permit Streamlining Act to provide an expedited review of subdivision maps for subdivisions where at least 49 percent of units are for low- and moderate-income households; require local governments to report their housing production to the state to ensure they can accommodate their share of the regional housing need for the ensuing five years; provide judicial relief for those who challenge local governments refusing to disclose to the Dept. of Housing their plan for meeting the regional housing need; and require the plaintiff to inform the Attorney General should a plaintiff sue the city or county alleging the government is not in compliance with state law.
http://www.car.org/index.php?id=MzY1MTM=
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
ADJUSTABLE-RATE MORTGAGE ACTIVITY AT LOWEST LEVEL SINCE OCTOBER 2003
The Market Composite Index, a measure of mortgage loan application volume, was 566.3 for the week ending Sept. 1, up 1.8 percent on a seasonally adjusted basis from 556.5 one week earlier, The Mortgage Bankers Association reported today. On an unadjusted basis, the index increased 0.4 percent for the week ending Sept. 1 compared with the previous week and was down 26.1 percent compared with the same week one year earlier.
The refinance share of mortgage activity decreased to 41 percent of total applications for the week ending Sept. 1 from 41.5 percent the previous week. The adjustable-rate mortgage (ARM) share of activity hit the lowest level since October 2003, declining to 26.2 percent of total applications from 26.8 percent the previous week.
http://www.mortgagebankers.org/NewsandMedia/PressCenter/44338.htm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - July 06: $567,360 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region July 06:
Santa Barbara So. Coast $1,075,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region July 06:
High Desert $333,330 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index Second Quarter 06:
23 percent (Source: C.A.R.)
Mortgage rates - week ending 8/31:
30-yr. fixed: 6.44%; Fees/points: 0.4%
15-yr. fixed: 6.14%; Fees/points: 0.4%
1-yr. adjustable: 5.59%; 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 195,000 REALTORS® statewide.
Edited by Mark Giberson, markg@car.org and Amanda Hopkins
Copyright © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, August 30, 2006
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
and David Breidenbach, Realtor® 619-888-3322, www.BreidyPropertiesInc.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
NEW HOME CONSTRUCTION CONTINUES TO DECLINE IN CALIFORNIA
INTRODUCING CLIENTDIRECT¿: SAME GREAT MEMBER BENEFIT, DIFFERENT NAME
CONSUMER CONFIDENCE FALLS TO LOWEST LEVEL OF 2006
C.A.R. REPORTS HOME SALES DECREASED 29.9 PERCENT IN JULY
LEARN TIPS TO BOOST YOUR BUSINESS AT CALIFORNIA REALTOR® EXPO
REBS LAUNCHES ALL-IN-ONE BUYER'S AGENT PACKAGE
HOMEOWNER ASSOCIATION LEGISLATION SIGNED INTO LAW
MORTGAGE LOAN APPLICATION VOLUME DECREASES
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
INTRODUCING CLIENTDIRECT¿: SAME GREAT MEMBER BENEFIT, DIFFERENT NAME
CONSUMER CONFIDENCE FALLS TO LOWEST LEVEL OF 2006
C.A.R. REPORTS HOME SALES DECREASED 29.9 PERCENT IN JULY
LEARN TIPS TO BOOST YOUR BUSINESS AT CALIFORNIA REALTOR® EXPO
REBS LAUNCHES ALL-IN-ONE BUYER'S AGENT PACKAGE
HOMEOWNER ASSOCIATION LEGISLATION SIGNED INTO LAW
MORTGAGE LOAN APPLICATION VOLUME DECREASES
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
NEW HOME CONSTRUCTION CONTINUES TO DECLINE IN CALIFORNIA
California housing starts declined for the fifth consecutive month during July 2006, falling 40.8 percent compared with the construction pace recorded one year earlier, the California Building Industry Association (CBIA) recently reported. Despite the decline, builders are on track to produce 180,000 new single-family and multifamily units in California during 2006. CBIA anticipates multifamily construction to remain strong in most markets for the remainder of 2006 but expects single-family starts to fall by 20,000 to 30,000 units compared with 155,000 single-family starts in 2005.
California housing starts declined for the fifth consecutive month during July 2006, falling 40.8 percent compared with the construction pace recorded one year earlier, the California Building Industry Association (CBIA) recently reported. Despite the decline, builders are on track to produce 180,000 new single-family and multifamily units in California during 2006. CBIA anticipates multifamily construction to remain strong in most markets for the remainder of 2006 but expects single-family starts to fall by 20,000 to 30,000 units compared with 155,000 single-family starts in 2005.
Based on the number of building permits issued, 11,121 new housing units were started throughout the state in July, with single-family units accounting for 73 percent of the starts. According to the report, single-family construction was the strongest in the Riverside-San Bernardino-Ontario region, followed by the Sacramento-Arden-Roseville and Los Angeles-Long Beach-Glendale regions.
http://www.cbia.org/index.cfm?pageid=1331&preview=yes
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CONSUMER CONFIDENCE FALLS TO LOWEST LEVEL OF 2006
The confidence level of the nation's consumers took a downward turn in August, according to a recent report from The Conference Board. Following last month's modest improvement, the Consumer Confidence Index decreased to 99.6 (1985=100) this month, down from 107 in July. The Present Situation and Expectations indexes also edged down, falling to 123.4 and 83.8, respectively. According to the report, this is the largest one-month decline in consumer confidence since Hurricane Katrina hit one year ago, and consumer confidence now stands at the lowest level of 2006.
http://www.cbia.org/index.cfm?pageid=1331&preview=yes
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CONSUMER CONFIDENCE FALLS TO LOWEST LEVEL OF 2006
The confidence level of the nation's consumers took a downward turn in August, according to a recent report from The Conference Board. Following last month's modest improvement, the Consumer Confidence Index decreased to 99.6 (1985=100) this month, down from 107 in July. The Present Situation and Expectations indexes also edged down, falling to 123.4 and 83.8, respectively. According to the report, this is the largest one-month decline in consumer confidence since Hurricane Katrina hit one year ago, and consumer confidence now stands at the lowest level of 2006.
Consumers' assessment of current business conditions was less optimistic this month than in previous months, with the proportion of consumers claiming business conditions are "bad" edging up to 16.7 percent. Additionally, fewer people anticipate improvements in the labor market and overall business conditions in the next six months, according to the report. In August, the proportion of consumers expecting more jobs to become available in the coming months declined to 14 percent, and the percentage of consumers anticipating their incomes to increase in the near-term fell to 17.7 percent.
http://www.conference-board.org/economics/consumerconfidence.cfm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. REPORTS HOME SALES DECREASED 29.9 PERCENT IN JULY
The median price of an existing single-family home in California increased 5.1 percent in July and sales decreased 29.9 percent compared with the same period a year ago, C.A.R. recently reported. "Today's market is slowing as sellers maintain often unrealistic pricing expectations and buyers have more properties to choose from," said C.A.R. President Vince Malta. "In addition, unlike the slowdown we experienced in the 1990s, homeowners today are not under duress to sell due to job losses. The urgency that characterized the market for the last few years is now gone for all but well-priced properties."
http://www.conference-board.org/economics/consumerconfidence.cfm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. REPORTS HOME SALES DECREASED 29.9 PERCENT IN JULY
The median price of an existing single-family home in California increased 5.1 percent in July and sales decreased 29.9 percent compared with the same period a year ago, C.A.R. recently reported. "Today's market is slowing as sellers maintain often unrealistic pricing expectations and buyers have more properties to choose from," said C.A.R. President Vince Malta. "In addition, unlike the slowdown we experienced in the 1990s, homeowners today are not under duress to sell due to job losses. The urgency that characterized the market for the last few years is now gone for all but well-priced properties."
According to the report, the median price of an existing, single-family detached home in California during July 2006 was $567,360, a 5.1 percent increase over the revised $539,840 median for July 2005. Also in July, closed escrow sales of existing, single-family detached homes in California totaled 453,980 at a seasonally adjusted annualized rate, down 29.9 percent compared with the sales pace recorded one year earlier and down 6.1 percent from home resale activity in June.
"Many markets in California are mirroring other major metropolitan areas of the nation.--a return to a more sustainable and balanced housing market compared to the frenetic pace of the past several years," said C.A.R. Chief Economist Leslie Appleton-Young. "We've known that double-digit appreciation would eventually change when the underlying fundamentals change, which has been the case with expanded supply and rising interest rates. Affordability concerns prompted by higher prices and interest rate increases also are constraining sales. The monthly home payment has increased by 20 percent for many households in the state compared with last year."
http://www.car.org/index.php?id=MzY0OTg=
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HOMEOWNER ASSOCIATION LEGISLATION SIGNED INTO LAW
C.A.R.-sponsored AB 2100 (Laird), "Homeowner Association Reserve Accounts," was signed into law on Aug. 28. Existing law requires homeowner associations (HOA) to provide their members a pro forma budget but not how and when they will repair or replace major assets of the association. C.A.R. sponsored AB 2100 to require HOAs to adopt an assessment schedule of the dates and monies necessary to fund their reserve accounts. AB 2100 is vital to homeowners because it completes the budgeting process by requiring homeowners' associations to provide members with clear and concise information on how much they will have to pay for regular and special assessment needs, such as the replacement of roofs or repair of building exteriors.
http://www.car.org/index.php?id=MzE3MjA=#next
http://www.car.org/index.php?id=MzY0OTg=
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HOMEOWNER ASSOCIATION LEGISLATION SIGNED INTO LAW
C.A.R.-sponsored AB 2100 (Laird), "Homeowner Association Reserve Accounts," was signed into law on Aug. 28. Existing law requires homeowner associations (HOA) to provide their members a pro forma budget but not how and when they will repair or replace major assets of the association. C.A.R. sponsored AB 2100 to require HOAs to adopt an assessment schedule of the dates and monies necessary to fund their reserve accounts. AB 2100 is vital to homeowners because it completes the budgeting process by requiring homeowners' associations to provide members with clear and concise information on how much they will have to pay for regular and special assessment needs, such as the replacement of roofs or repair of building exteriors.
http://www.car.org/index.php?id=MzE3MjA=#next
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
MORTGAGE LOAN APPLICATION VOLUME DECREASES
The Market Composite Index, a measure of mortgage loan application volume, was 556.5 for the week ending Aug. 25, down 0.9 percent on a seasonally adjusted basis from 561.5 one week earlier, The Mortgage Bankers Association reported today. On an unadjusted basis, the index decreased 2.3 percent for the week ending Aug. 25 compared with the previous week and was down 22.4 percent compared with the same week one year earlier.
MORTGAGE LOAN APPLICATION VOLUME DECREASES
The Market Composite Index, a measure of mortgage loan application volume, was 556.5 for the week ending Aug. 25, down 0.9 percent on a seasonally adjusted basis from 561.5 one week earlier, The Mortgage Bankers Association reported today. On an unadjusted basis, the index decreased 2.3 percent for the week ending Aug. 25 compared with the previous week and was down 22.4 percent compared with the same week one year earlier.
The refinance share of mortgage activity increased to 41.5 percent of total applications for the week ending Aug. 25 from 40.6 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 26.8 percent from 26.4 percent of total applications.
http://www.mortgagebankers.org/NewsandMedia/PressCenter/44251.htm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
http://www.mortgagebankers.org/NewsandMedia/PressCenter/44251.htm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - July 06: $567,360 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region July 06:
Santa Barbara So. Coast $1,075,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region July 06:
High Desert $333,330 (Source: C.A.R.)
Mortgage rates - week ending 8/24:
30-yr. fixed: 6.48%; Fees/points: 0.4%
15-yr. fixed: 6.18%; Fees/points: 0.4%
1-yr. adjustable: 5.60%; Fees/points: 0.7%
(Source: Freddie Mac)
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Calif. highest median home price by C.A.R. region July 06:
Santa Barbara So. Coast $1,075,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region July 06:
High Desert $333,330 (Source: C.A.R.)
Mortgage rates - week ending 8/24:
30-yr. fixed: 6.48%; Fees/points: 0.4%
15-yr. fixed: 6.18%; Fees/points: 0.4%
1-yr. adjustable: 5.60%; Fees/points: 0.7%
(Source: Freddie Mac)
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C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 195,000 REALTORS® statewide.
Edited by Mark Giberson, markg@car.org and Amanda Hopkins,
Copyright © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
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Wednesday, August 23, 2006
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
California and Arizona are among the five states that added the most housing units in the country between July 1, 2004, and July 1, 2005, according to a recent report from the U.S. Census Bureau. Following Florida, which gained 247,000 homes during the one-year period, California added the second highest number of homes at 182,000. Arizona rounded out the top five with 87,000 units. The U.S. added 1.8 million housing units during the 12 months between July 1, 2004, and July 1, 2005, and ended the period with approximately 124.5 million units.
Four of the five states with the fastest housing growth rates also are located in the West, led by Nevada with a growth rate of 4.4 percent. Other states outpacing the rest of the nation in the rate of housing growth include Arizona (3.5 percent), Florida (3.1 percent), Idaho (2.9 percent), and Utah (2.9 percent).
http://www.census.gov/Press-Release/www/releases/archives/housing/007331.html
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Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
and David Breidenbach, Realtor® 619-888-3322, www.BreidyPropertiesInc.com
FLORIDA, CALIFORNIA ADD MOST HOUSING UNITS IN NATION
FIRST-TIME BUYER HOUSING AFFORDABILITY INDEX STANDS AT 23 PERCENT
DEMAND FOR REMODELING PROJECTS SLOWS
DECLINING HOUSING PERMITS AFFECT U.S. LEADING INDEX
C.A.R.-SPONSORED LAND USE LEGISLATION PENDING IN SENATE
SHARE OF ADJUSTABLE-RATE MORTGAGES AT LOWEST LEVEL SINCE FEBRUARY 2004
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FLORIDA, CALIFORNIA ADD MOST HOUSING UNITS IN NATION
FLORIDA, CALIFORNIA ADD MOST HOUSING UNITS IN NATION
FIRST-TIME BUYER HOUSING AFFORDABILITY INDEX STANDS AT 23 PERCENT
DEMAND FOR REMODELING PROJECTS SLOWS
DECLINING HOUSING PERMITS AFFECT U.S. LEADING INDEX
C.A.R.-SPONSORED LAND USE LEGISLATION PENDING IN SENATE
SHARE OF ADJUSTABLE-RATE MORTGAGES AT LOWEST LEVEL SINCE FEBRUARY 2004
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FLORIDA, CALIFORNIA ADD MOST HOUSING UNITS IN NATION
California and Arizona are among the five states that added the most housing units in the country between July 1, 2004, and July 1, 2005, according to a recent report from the U.S. Census Bureau. Following Florida, which gained 247,000 homes during the one-year period, California added the second highest number of homes at 182,000. Arizona rounded out the top five with 87,000 units. The U.S. added 1.8 million housing units during the 12 months between July 1, 2004, and July 1, 2005, and ended the period with approximately 124.5 million units.
Four of the five states with the fastest housing growth rates also are located in the West, led by Nevada with a growth rate of 4.4 percent. Other states outpacing the rest of the nation in the rate of housing growth include Arizona (3.5 percent), Florida (3.1 percent), Idaho (2.9 percent), and Utah (2.9 percent).
http://www.census.gov/Press-Release/www/releases/archives/housing/007331.html
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FIRST-TIME BUYER HOUSING AFFORDABILITY INDEX STANDS AT 23 PERCENT
The percentage of first-time buyers in California able to afford a median-priced home stood at 23 percent in the second quarter of 2006, compared with 30 percent for the same period a year ago, according to C.A.R.'s newly developed First-time Buyer Housing Affordability Index (FTB-HAI). The minimum household income first-time buyers needed to purchase a home at $482,000 in California in the second quarter of 2006 was $98,720, based on an adjustable interest rate of 6.48 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 $3,290 for the second quarter of 2006.
At 39 percent, the High Desert region was the most affordable C.A.R. region in the state, followed by the Sacramento region at 38 percent. Santa Barbara was the least affordable region in the state at 14 percent, followed by San Luis Obispo at 17 percent.
C.A.R. began producing its Housing Affordability Index (HAI) in 1984. At that time, fixed-rate mortgages were the prevailing form of financing a home purchase, and the calculations used to produce the HAI reflected a 20 percent down payment. The methodology also assumed a monthly payment for principal, interest, taxes and insurance that was no more than 30 percent of a household's income. In the more than two decades since C.A.R. first conceived its Housing Affordability Index, the mortgage finance landscape has changed dramatically. C.A.R. developed the new index measuring affordability for first-time home buyers to better reflect the realities of today's real estate market.
http://www.car.org/index.php?id=MzY0ODc=
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DEMAND FOR REMODELING PROJECTS SLOWS
Remodeling activity increased slightly for renter-occupied housing units but declined overall during the second quarter of 2006, according to the National Association of Home Builders' (NAHB) Remodeling Market Index (RMI). The current market conditions index, based on current home additions, alterations and repairs, decreased from 48.1 to 45.6, while the future expectations index, determined by the amount of work committed for the next three months and the backlog of remodeling jobs, slipped from 48.9 to 43.5. Both indexes are measured on a scale of zero to 100, and numbers above 50 indicate improving market conditions. The RMI declined nationwide last quarter, but remained highest in the West, where the current market conditions and future expectations components stood at 49.7 and 50.5, respectively.
As home sales slow, a lower level of remodeling activity is expected; however, changes in the remodeling market tend to be more stable because many home modifications are for maintenance and repair purposes, according to the report. "The average age of the housing stock is 32 years and rising -- well past the time when major home systems need replacement. Supported by more than $11 trillion in homeowner equity, the fundamentals of the remodeling market will remain strong for the foreseeable future," said NAHB Chief Economist David Seiders.
http://www.nahb.org/news_details.aspx?sectionID=148&newsID=3082
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DECLINING HOUSING PERMITS AFFECT U.S. LEADING INDEX
The U.S. leading index, a key barometer of economic conditions, has decreased in four of the last six months, including a 0.1 percent decline in July, The Conference Board recently reported. The index now stands at 138.1 (1996=100), one point below the high of 139.1 reached in January, but remains 0.9 percent above the level achieved a year ago. The leading index signals slow to moderate economic growth in the coming months, according to the report. Since January, declining housing permits have been the largest negative contributor to the leading index.
The coincident index, a measure of current economic activity, increased 0.2 percent to 123.1 in July, while the lagging index, a reflection of past economic activity, fell 0.1 percent to 123.7, according to the report.
http://www.conference-board.org/economics/bci/pressRelease_output.cfm?cid=1
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C.A.R.-SPONSORED LAND USE LEGISLATION PENDING IN SENATE
C.A.R.-sponsored AB 2511 (Jones), "Land Use Housing," is currently pending on the senate floor. If passed, this measure will amend the Permit Streamlining Act to apply to subdivisions that have a much smaller percentage of affordable housing; require local governments to their housing production to the state to ensure they can accommodate their share of the regional housing need for the ensuing five years; provide judicial relief for those who challenge local governments refusing to disclose to the Dept. of Housing their plan for meeting the regional housing need; and require the plaintiff to inform the Attorney General should a plaintiff sue the city or county alleging the government is not in compliance with state law.
AB 2511 also would will require cities and counties to adopt and publish clear and objective development standards (e.g., zoning code requirements) and prohibit any change in those standards after a building application is completed. Developers should be able to rely on the standards throughout the local government review process and not have the rules arbitrarily changed during the process.
http://www.car.org/index.php?id=MzE3MjA=#next
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SHARE OF ADJUSTABLE-RATE MORTGAGES AT LOWEST LEVEL SINCE FEBRUARY 2004
The Market Composite Index, a measure of mortgage loan application volume, was 561.5 for the week ending Aug. 18, up 0.1 percent on a seasonally adjusted basis from 561.2 one week earlier, The Mortgage Bankers Association reported today. On an unadjusted basis, the index decreased 1.2 percent for the week ending Aug. 18 compared with the previous week and was down 25.1 percent compared with the same week one year earlier.
The refinance share of mortgage activity increased to 40.6 percent of total applications for the week ending Aug. 18 from 39.6 percent the previous week. The adjustable-rate mortgage (ARM) share of activity hit the lowest level since February 2004, declining to 26.4 percent of total applications from 27.2 percent the previous week.
http://www.mortgagebankers.org/NewsandMedia/PressCenter/44089.htm
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Fast Facts
Calif. median home price - June 06: $575,800 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region June 06:
Santa Barbara So. Coast $1,300,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region June 06:
High Desert $334,790 (Source: C.A.R.)
Mortgage rates - week ending 8/17:
30-yr. fixed: 6.52%; Fees/points: 0.3%
15-yr. fixed: 6.20%; Fees/points: 0.3%
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 more than 195,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins,
Copyright © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
SHARE OF ADJUSTABLE-RATE MORTGAGES AT LOWEST LEVEL SINCE FEBRUARY 2004
The Market Composite Index, a measure of mortgage loan application volume, was 561.5 for the week ending Aug. 18, up 0.1 percent on a seasonally adjusted basis from 561.2 one week earlier, The Mortgage Bankers Association reported today. On an unadjusted basis, the index decreased 1.2 percent for the week ending Aug. 18 compared with the previous week and was down 25.1 percent compared with the same week one year earlier.
The refinance share of mortgage activity increased to 40.6 percent of total applications for the week ending Aug. 18 from 39.6 percent the previous week. The adjustable-rate mortgage (ARM) share of activity hit the lowest level since February 2004, declining to 26.4 percent of total applications from 27.2 percent the previous week.
http://www.mortgagebankers.org/NewsandMedia/PressCenter/44089.htm
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Fast Facts
Calif. median home price - June 06: $575,800 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region June 06:
Santa Barbara So. Coast $1,300,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region June 06:
High Desert $334,790 (Source: C.A.R.)
Mortgage rates - week ending 8/17:
30-yr. fixed: 6.52%; Fees/points: 0.3%
15-yr. fixed: 6.20%; Fees/points: 0.3%
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 more than 195,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins,
Copyright © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, August 16, 2006
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
Wednesday, August 16, 2006
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
and David Breidenbach, Realtor® 619-888-3322, www.BreidyPropertiesInc.com
CALIFORNIA LUXURY HOME VALUES POST SMALL GAINS
BUILDER CONFIDENCE DECLINES FOR SEVENTH CONSECUTIVE MONTH
U.S. HOUSING STARTS DECLINE 13.3 PERCENT IN JULY
SHARE OF ADJUSTABLE-RATE MORTGAGES AT LOWEST LEVEL SINCE FEBRUARY 2004
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CALIFORNIA LUXURY HOME VALUES POST SMALL GAINS
Luxury home prices in Los Angeles, San Diego, and San Francisco continued to increase during the second quarter of 2006 but at a slower pace, according to the First Republic Prestige Home Index¿, which tracks homes valued at more than $1 million in key California markets. In Southern California, sales of homes valued $10 million or higher have remained strong, while sales in the lower- to mid-tiers of the luxury home market have slowed. In San Francisco, the entire market for high-end homes has cooled.
According to the report, the value of luxury homes in Los Angeles edged up 3 percent from first quarter and 12.8 percent compared with the second quarter of 2005. The average value of a high-end home in Los Angeles now stands at a record $2.36 million. The prices of luxury homes in San Diego and San Francisco also recorded gains during second quarter, rising 6.4 percent and 4.8 percent, respectively, from a year ago. The average luxury home in San Diego is $2.14 million, while the average luxury home in San Francisco is valued at $2.93 million.
CALIFORNIA LUXURY HOME VALUES POST SMALL GAINS
BUILDER CONFIDENCE DECLINES FOR SEVENTH CONSECUTIVE MONTH
U.S. HOUSING STARTS DECLINE 13.3 PERCENT IN JULY
SHARE OF ADJUSTABLE-RATE MORTGAGES AT LOWEST LEVEL SINCE FEBRUARY 2004
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CALIFORNIA LUXURY HOME VALUES POST SMALL GAINS
Luxury home prices in Los Angeles, San Diego, and San Francisco continued to increase during the second quarter of 2006 but at a slower pace, according to the First Republic Prestige Home Index¿, which tracks homes valued at more than $1 million in key California markets. In Southern California, sales of homes valued $10 million or higher have remained strong, while sales in the lower- to mid-tiers of the luxury home market have slowed. In San Francisco, the entire market for high-end homes has cooled.
According to the report, the value of luxury homes in Los Angeles edged up 3 percent from first quarter and 12.8 percent compared with the second quarter of 2005. The average value of a high-end home in Los Angeles now stands at a record $2.36 million. The prices of luxury homes in San Diego and San Francisco also recorded gains during second quarter, rising 6.4 percent and 4.8 percent, respectively, from a year ago. The average luxury home in San Diego is $2.14 million, while the average luxury home in San Francisco is valued at $2.93 million.
http://firstrepublic.com/lend/residential/prestigeindex/index.html
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BUILDER CONFIDENCE DECLINES FOR SEVENTH CONSECUTIVE MONTH
Increased sales cancellations, rising home inventories, and high energy costs continue to lower the confidence level of the nation's home builders, which declined for the seventh consecutive month in August, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The seasonally adjusted HMI stands at 32 this month, down seven points from July and down 35 points from a year ago. The HMI has not been below 40 for two consecutive months since December 1991. An HMI below 50 indicates more builders view sales conditions as poor versus good.
All three HMI components decreased this month. The component measuring current single-family sales declined seven points to 36, while the components gauging sales expectations and buyer traffic decreased to 40 and 21, respectively. Builder confidence declined throughout the country in August. The HMI in the West fell 10 points to 42.
http://www.nahb.org/news_details.aspx?newsID=3074
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BUILDER CONFIDENCE DECLINES FOR SEVENTH CONSECUTIVE MONTH
Increased sales cancellations, rising home inventories, and high energy costs continue to lower the confidence level of the nation's home builders, which declined for the seventh consecutive month in August, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The seasonally adjusted HMI stands at 32 this month, down seven points from July and down 35 points from a year ago. The HMI has not been below 40 for two consecutive months since December 1991. An HMI below 50 indicates more builders view sales conditions as poor versus good.
All three HMI components decreased this month. The component measuring current single-family sales declined seven points to 36, while the components gauging sales expectations and buyer traffic decreased to 40 and 21, respectively. Builder confidence declined throughout the country in August. The HMI in the West fell 10 points to 42.
http://www.nahb.org/news_details.aspx?newsID=3074
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U.S. HOUSING STARTS DECLINE 13.3 PERCENT IN JULY
The seasonally adjusted annual rate for privately owned housing starts dropped for the fourth consecutive month in July, falling to a rate of 1.8 million units, according to a report released today by the U.S. Dept. of Commerce. The July construction pace was down 2.5 percent from June and down 13.3 percent from a year ago. Single-family housing starts decreased 16.6 percent from July 2005, to a rate of 1.45 million units, while starts for buildings with five or more units decreased 10.2 percent to a rate of 264,000. The number of building permits issued, which can be an indicator of future building activity, declined 20.8 percent from one year earlier to a seasonally adjusted annual rate of 1.75 million permits.
The construction pace for housing units decreased across the nation in June. The rate for privately owned housing starts declined 18.9 percent in the Northeast, 16.6 percent in the Midwest, 13.9 percent in the West, and 10.7 percent in the South.
U.S. HOUSING STARTS DECLINE 13.3 PERCENT IN JULY
The seasonally adjusted annual rate for privately owned housing starts dropped for the fourth consecutive month in July, falling to a rate of 1.8 million units, according to a report released today by the U.S. Dept. of Commerce. The July construction pace was down 2.5 percent from June and down 13.3 percent from a year ago. Single-family housing starts decreased 16.6 percent from July 2005, to a rate of 1.45 million units, while starts for buildings with five or more units decreased 10.2 percent to a rate of 264,000. The number of building permits issued, which can be an indicator of future building activity, declined 20.8 percent from one year earlier to a seasonally adjusted annual rate of 1.75 million permits.
The construction pace for housing units decreased across the nation in June. The rate for privately owned housing starts declined 18.9 percent in the Northeast, 16.6 percent in the Midwest, 13.9 percent in the West, and 10.7 percent in the South.
http://www.census.gov/const/newresconst_200607.pdf
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SHARE OF ADJUSTABLE-RATE MORTGAGES AT LOWEST LEVEL SINCE FEBRUARY 2004
The Market Composite Index, a measure of mortgage loan application volume, was 561.2 for the week ending Aug. 11, up 1.4 percent on a seasonally adjusted basis from 553.3 one week earlier, The Mortgage Bankers Association reported today. On an unadjusted basis, the index increased 0.4 percent for the week ending Aug. 11 compared with the previous week and was down 25.6 percent compared with the same week one year earlier.
The refinance share of mortgage activity increased to 39.6 percent of total applications for the week ending Aug. 11 from 38 percent the previous week. The adjustable-rate mortgage (ARM) share of activity hit the lowest level since February 2004, declining to 27.2 percent of total applications from 27.6 percent the previous week.
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SHARE OF ADJUSTABLE-RATE MORTGAGES AT LOWEST LEVEL SINCE FEBRUARY 2004
The Market Composite Index, a measure of mortgage loan application volume, was 561.2 for the week ending Aug. 11, up 1.4 percent on a seasonally adjusted basis from 553.3 one week earlier, The Mortgage Bankers Association reported today. On an unadjusted basis, the index increased 0.4 percent for the week ending Aug. 11 compared with the previous week and was down 25.6 percent compared with the same week one year earlier.
The refinance share of mortgage activity increased to 39.6 percent of total applications for the week ending Aug. 11 from 38 percent the previous week. The adjustable-rate mortgage (ARM) share of activity hit the lowest level since February 2004, declining to 27.2 percent of total applications from 27.6 percent the previous week.
http://www.mortgagebankers.org/NewsandMedia/PressCenter/43947.htm
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Fast Facts
Calif. median home price - June 06: $575,800 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region June 06:
Santa Barbara So. Coast $1,300,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region June 06:
High Desert $334,790 (Source: C.A.R.)
Mortgage rates - week ending 8/10:
30-yr. fixed: 6.55%; Fees/points: 0.4%
15-yr. fixed: 6.20%; Fees/points: 0.4%
1-yr. adjustable: 5.69%; Fees/points: 0.8%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 185,000 REALTORS® statewide.
Edited by Mark Giberson, markg@car.org and Amanda Hopkins
Copyright © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - June 06: $575,800 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region June 06:
Santa Barbara So. Coast $1,300,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region June 06:
High Desert $334,790 (Source: C.A.R.)
Mortgage rates - week ending 8/10:
30-yr. fixed: 6.55%; Fees/points: 0.4%
15-yr. fixed: 6.20%; Fees/points: 0.4%
1-yr. adjustable: 5.69%; Fees/points: 0.8%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 185,000 REALTORS® statewide.
Edited by Mark Giberson, markg@car.org and Amanda Hopkins
Copyright © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
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Wednesday, August 02, 2006
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® and
Wednesday, August 02, 2006
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® and
David Breidenbach, 619-888-3322, www.BreidyPropertiesInc.com
CALIFORNIA HOUSING STARTS REFLECT NORMALIZING MARKET
REAL ESTATE CONSTRUCTION SPENDING CONTINUES TO RISE
PENDING HOME SALES INDICATE TRANSITIONING MARKET
SHARE OF ADJUSTABLE-RATE MORTGAGES AT LOWEST LEVEL SINCE MARCH 2004
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CALIFORNIA HOUSING STARTS REFLECT NORMALIZING MARKET
New home construction in California declined during June 2006, falling 10.9 percent when compared with the construction pace recorded one year earlier, the California Building Industry Association (CBIA) recently reported. Despite the decline, housing starts continue to edge up on a month-to-month basis, suggesting builders are on track to produce 170,000 to 180,000 new single-family and multifamily units in California during 2006. CBIA anticipates multifamily construction to remain strong in most markets for the remainder of 2006 but expects single-family starts to fall by 20,000 to 30,000 units compared with the 155,000 single-family starts in 2005.
Based on the number of building permits issued, 19,175 new housing units were started throughout the state in June, with single-family units accounting for 64.1 percent of the starts. According to the report, single-family construction was the strongest in the Riverside-San Bernardino-Ontario region, followed by the Sacramento-Arden-Roseville and Los Angeles-Long Beach-Glendale regions.
http://www.cbia.org/index.cfm?pageid=1321&preview=yes
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REAL ESTATE CONSTRUCTION SPENDING CONTINUES TO RISE
The annual pace of construction spending topped $1 trillion for the 24th consecutive month in June 2006, rising 6.8 percent to a seasonally adjusted annual rate of $1.22 trillion, according to a recent report by the U.S. Census Bureau. Construction spending totaled $569.3 billion during the first half of 2006, up 8.5 percent over construction spending during the same period in 2005. The annual pace of total construction spending has remained above $1 trillion since July 2004.
During June 2006, residential construction spending remained unchanged compared with one year earlier, standing at a rate of $650.8 billion, while the value of nonresidential construction activity rose 15.8 percent to a rate of $566.5 billion, according to the report.
http://www.census.gov/const/C30/release.pdf
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PENDING HOME SALES INDICATE TRANSITIONING MARKET
For the second consecutive month, pending home sales have risen on a month-to-month basis, a sign the housing market is beginning to level out, according to a recent report from NAR. In June, 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, increased 0.4 percent to 113.9 from the reading one month earlier and edged down 9.6 percent from June 2005. An index of 100 or more generally indicates a high level of home sales activity.
"Once again, we have various housing indicators moving in different directions, which itself is an indicator of a market in transition," said NAR Chief Economist David Lereah. "The housing market is striving for balance -- a process that will take several months. A quieting in the movement of indicators should restore confidence to home buyers who've been on the sidelines, waiting for the right time to get into the market, and now is the best time we've seen since the 1990s in terms of housing choices and flexible terms."
The PHSI declined across the nation in June compared with the readings a year ago. On a regional basis, the PHSI was highest in the South, where it edged down 4.8 percent to 130.7. In the West, the index fell 14.2 percent to 110.1. The PHSI also declined in the Midwest and Northeast regions, falling to 103.3 and 99.4, respectively.
http://www.realtor.org/PublicAffairsWeb.nsf/Pages/PHSIJune06?OpenDocument
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SHARE OF ADJUSTABLE-RATE MORTGAGES AT LOWEST LEVEL SINCE MARCH 2004
The Market Composite Index, a measure of mortgage loan application volume, hit the lowest level since May 2002, standing at 527.6 for the week ending July 28, The Mortgage Bankers Association reported today. The index was down 1.2 percent on a seasonally adjusted basis from 533.8 one week earlier. On an unadjusted basis, the index decreased 1.4 percent for the week ending July 28 compared with the previous week and was down 29 percent compared with the same week one year earlier.
The refinance share of mortgage activity increased to 37 percent of total applications for the week ending July 28 from 35.6 percent the previous week. The adjustable-rate mortgage (ARM) share of activity hit the lowest level since March 2004, declining to 27.8 percent of total applications from 28.6 percent the previous week.
http://www.mortgagebankers.org/NewsandMedia/PressCenter/43771.htm
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Fast Facts
Calif. median home price - June 06: $575,800 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region June 06:
Santa Barbara So. Coast $1,300,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region June 06:
High Desert $334,790 (Source: C.A.R.)
Mortgage rates - week ending 7/27:
30-yr. fixed: 6.72%; Fees/points: 0.3%
15-yr. fixed: 6.34%; Fees/points: 0.4%
1-yr. adjustable: 5.78%; 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 185,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
CALIFORNIA HOUSING STARTS REFLECT NORMALIZING MARKET
REAL ESTATE CONSTRUCTION SPENDING CONTINUES TO RISE
PENDING HOME SALES INDICATE TRANSITIONING MARKET
SHARE OF ADJUSTABLE-RATE MORTGAGES AT LOWEST LEVEL SINCE MARCH 2004
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CALIFORNIA HOUSING STARTS REFLECT NORMALIZING MARKET
New home construction in California declined during June 2006, falling 10.9 percent when compared with the construction pace recorded one year earlier, the California Building Industry Association (CBIA) recently reported. Despite the decline, housing starts continue to edge up on a month-to-month basis, suggesting builders are on track to produce 170,000 to 180,000 new single-family and multifamily units in California during 2006. CBIA anticipates multifamily construction to remain strong in most markets for the remainder of 2006 but expects single-family starts to fall by 20,000 to 30,000 units compared with the 155,000 single-family starts in 2005.
Based on the number of building permits issued, 19,175 new housing units were started throughout the state in June, with single-family units accounting for 64.1 percent of the starts. According to the report, single-family construction was the strongest in the Riverside-San Bernardino-Ontario region, followed by the Sacramento-Arden-Roseville and Los Angeles-Long Beach-Glendale regions.
http://www.cbia.org/index.cfm?pageid=1321&preview=yes
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REAL ESTATE CONSTRUCTION SPENDING CONTINUES TO RISE
The annual pace of construction spending topped $1 trillion for the 24th consecutive month in June 2006, rising 6.8 percent to a seasonally adjusted annual rate of $1.22 trillion, according to a recent report by the U.S. Census Bureau. Construction spending totaled $569.3 billion during the first half of 2006, up 8.5 percent over construction spending during the same period in 2005. The annual pace of total construction spending has remained above $1 trillion since July 2004.
During June 2006, residential construction spending remained unchanged compared with one year earlier, standing at a rate of $650.8 billion, while the value of nonresidential construction activity rose 15.8 percent to a rate of $566.5 billion, according to the report.
http://www.census.gov/const/C30/release.pdf
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PENDING HOME SALES INDICATE TRANSITIONING MARKET
For the second consecutive month, pending home sales have risen on a month-to-month basis, a sign the housing market is beginning to level out, according to a recent report from NAR. In June, 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, increased 0.4 percent to 113.9 from the reading one month earlier and edged down 9.6 percent from June 2005. An index of 100 or more generally indicates a high level of home sales activity.
"Once again, we have various housing indicators moving in different directions, which itself is an indicator of a market in transition," said NAR Chief Economist David Lereah. "The housing market is striving for balance -- a process that will take several months. A quieting in the movement of indicators should restore confidence to home buyers who've been on the sidelines, waiting for the right time to get into the market, and now is the best time we've seen since the 1990s in terms of housing choices and flexible terms."
The PHSI declined across the nation in June compared with the readings a year ago. On a regional basis, the PHSI was highest in the South, where it edged down 4.8 percent to 130.7. In the West, the index fell 14.2 percent to 110.1. The PHSI also declined in the Midwest and Northeast regions, falling to 103.3 and 99.4, respectively.
http://www.realtor.org/PublicAffairsWeb.nsf/Pages/PHSIJune06?OpenDocument
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SHARE OF ADJUSTABLE-RATE MORTGAGES AT LOWEST LEVEL SINCE MARCH 2004
The Market Composite Index, a measure of mortgage loan application volume, hit the lowest level since May 2002, standing at 527.6 for the week ending July 28, The Mortgage Bankers Association reported today. The index was down 1.2 percent on a seasonally adjusted basis from 533.8 one week earlier. On an unadjusted basis, the index decreased 1.4 percent for the week ending July 28 compared with the previous week and was down 29 percent compared with the same week one year earlier.
The refinance share of mortgage activity increased to 37 percent of total applications for the week ending July 28 from 35.6 percent the previous week. The adjustable-rate mortgage (ARM) share of activity hit the lowest level since March 2004, declining to 27.8 percent of total applications from 28.6 percent the previous week.
http://www.mortgagebankers.org/NewsandMedia/PressCenter/43771.htm
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Fast Facts
Calif. median home price - June 06: $575,800 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region June 06:
Santa Barbara So. Coast $1,300,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region June 06:
High Desert $334,790 (Source: C.A.R.)
Mortgage rates - week ending 7/27:
30-yr. fixed: 6.72%; Fees/points: 0.3%
15-yr. fixed: 6.34%; Fees/points: 0.4%
1-yr. adjustable: 5.78%; Fees/points: 0.7%
(Source: Freddie Mac)
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C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 185,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
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Wednesday, August 09, 2006
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® and Bavid Breidenbach,
Wednesday, August 09, 2006
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® and Bavid Breidenbach,
www.BreidyPropertiesInc.com
FED OPTS TO KEEP FEDERAL FUNDS RATE AT 5.25 PERCENT
NAR EXPECTS HOME SALES TO REMAIN STEADY FOR REMAINDER OF 2006
CALIFORNIA FORECLOSURE ACTIVITY RISES
REALTORS® COME TOGETHER TO HELP REBUILD NEW ORLEANS
MORTGAGE LOAN APPLICATIONS RISE
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FED OPTS TO KEEP FEDERAL FUNDS RATE AT 5.25 PERCENT
The Federal Reserve's Open Market Committee yesterday decided to suspend interest rate hikes, maintaining the target for the federal funds rate at 5.25 percent. This is the first committee meeting since June 2004 that did not result in an interest rate increase. The federal funds target rate is the interest rate charged by banks when they borrow funds "overnight" from each other.
"Economic growth has moderated from its quite strong pace earlier this year, partly reflecting a gradual cooling of the housing market and the lagged effects of increases in interest rates and energy prices," the Fed said in a prepared statement.
The Fed also indicated the possibility of future interest rate increases, acknowledging that "some inflation risks remain. The extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information."
http://www.federalreserve.gov/boarddocs/press/monetary/2006/20060808/default.htm
FED OPTS TO KEEP FEDERAL FUNDS RATE AT 5.25 PERCENT
NAR EXPECTS HOME SALES TO REMAIN STEADY FOR REMAINDER OF 2006
CALIFORNIA FORECLOSURE ACTIVITY RISES
REALTORS® COME TOGETHER TO HELP REBUILD NEW ORLEANS
MORTGAGE LOAN APPLICATIONS RISE
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FED OPTS TO KEEP FEDERAL FUNDS RATE AT 5.25 PERCENT
The Federal Reserve's Open Market Committee yesterday decided to suspend interest rate hikes, maintaining the target for the federal funds rate at 5.25 percent. This is the first committee meeting since June 2004 that did not result in an interest rate increase. The federal funds target rate is the interest rate charged by banks when they borrow funds "overnight" from each other.
"Economic growth has moderated from its quite strong pace earlier this year, partly reflecting a gradual cooling of the housing market and the lagged effects of increases in interest rates and energy prices," the Fed said in a prepared statement.
The Fed also indicated the possibility of future interest rate increases, acknowledging that "some inflation risks remain. The extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information."
http://www.federalreserve.gov/boarddocs/press/monetary/2006/20060808/default.htm
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NAR EXPECTS HOME SALES TO REMAIN STEADY FOR REMAINDER OF 2006
The housing market will continue to stabilize through the end of 2006, with U.S. home sales anticipated to reach the third highest levels on record, according to NAR's recent forecast. For the year, existing-home sales in the U.S. are expected to fall 6.5 percent to 6.61 million units, while new-home sales should reach 1.12 million units, down 12.8 percent from 2005. NAR also projects the national median existing-home price to increase 4.3 percent to $229,000 in 2006.
"We've seen a minor easing in closed transactions of existing-home sales, and a slight increase in the leading indicator of pending sales based on contracts," said NAR Chief Economist David Lereah. "New-home sales and housing starts have been fluctuating, so the overall market is stabilizing."
http://www.realtor.org/PublicAffairsWeb.nsf/Pages/AugustForecast06?
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CALIFORNIA FORECLOSURE ACTIVITY RISES
The number of mortgage default notices sent to California homeowners increased during the second quarter of 2006, rising 10.5 percent from first quarter, according to a recent report by DataQuick Information Systems. Lending institutions sent default notices to 20,752 homeowners between April 1 and June 30, up 67.2 percent when compared with the 12,408 default notices sent during the same period one year earlier. While second quarter's foreclosure activity hit the highest level since first quarter 2003, default notices still remain below the historical average of 32,762 per quarter.
Declining home price appreciation was the major contributor to the increased default activity last quarter, according to the report. While nearly all regions of California experienced an increase in foreclosures, mortgage loans were least likely to go into default in Marin, Santa Cruz, Santa Clara, and El Dorado.
http://www.dqnews.com/RRFor0806.shtm
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REALTORS® COME TOGETHER TO HELP REBUILD NEW ORLEANS
Join thousands of REALTORS® from across the nation this fall to help rebuild and restore New Orleans as part of NAR's REALTORS® Conference & Expo. Last December, NAR maintained its commitment to host its annual convention in New Orleans as originally scheduled, despite the significant damage caused by Hurricane Katrina throughout the region. During each of the last five years, REALTORS® have come together to build a Habitat for Humanity home in the city hosting NAR's annual conference, and this year NAR increased its commitment to 54 homes. Additionally, REALTORS® will help restore schools, community facilities, and other public buildings.
Volunteer activities are available Tuesday, Nov. 7 through Tuesday, Nov. 14 and range from construction projects to painting to planting trees. Bus transportation to all project sites will be provided by NAR.
http://www.realtor.org/educsess.nsf/pageslu/rebuildneworleans?opendocument
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MORTGAGE LOAN APPLICATIONS RISE
The Market Composite Index, a measure of mortgage loan application volume, was 553.3 for the week ending Aug. 4, up 4.9 percent on a seasonally adjusted basis from 527.6 one week earlier, The Mortgage Bankers Association reported today. On an unadjusted basis, the index increased 4.3 percent for the week ending Aug. 4 compared with the previous week and was down 24.9 percent compared with the same week one year earlier.
The refinance share of mortgage activity increased to 38 percent of total applications for the week ending Aug. 4 from 37 percent the previous week. The adjustable-rate mortgage (ARM) share of activity hit the lowest level since March 2004, declining to 27.6 percent of total applications from 27.8 percent the previous week.
http://www.mortgagebankers.org/NewsandMedia/PressCenter/43849.htm
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Fast Facts
Calif. median home price - June 06: $575,800 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region June 06:
Santa Barbara So. Coast $1,300,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region June 06:
High Desert $334,790 (Source: C.A.R.)
Mortgage rates - week ending 8/3:
30-yr. fixed: 6.63%; Fees/points: 0.3%
15-yr. fixed: 6.27%; Fees/points: 0.3%
1-yr. adjustable: 5.69%; 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 185,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
NAR EXPECTS HOME SALES TO REMAIN STEADY FOR REMAINDER OF 2006
The housing market will continue to stabilize through the end of 2006, with U.S. home sales anticipated to reach the third highest levels on record, according to NAR's recent forecast. For the year, existing-home sales in the U.S. are expected to fall 6.5 percent to 6.61 million units, while new-home sales should reach 1.12 million units, down 12.8 percent from 2005. NAR also projects the national median existing-home price to increase 4.3 percent to $229,000 in 2006.
"We've seen a minor easing in closed transactions of existing-home sales, and a slight increase in the leading indicator of pending sales based on contracts," said NAR Chief Economist David Lereah. "New-home sales and housing starts have been fluctuating, so the overall market is stabilizing."
http://www.realtor.org/PublicAffairsWeb.nsf/Pages/AugustForecast06?
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CALIFORNIA FORECLOSURE ACTIVITY RISES
The number of mortgage default notices sent to California homeowners increased during the second quarter of 2006, rising 10.5 percent from first quarter, according to a recent report by DataQuick Information Systems. Lending institutions sent default notices to 20,752 homeowners between April 1 and June 30, up 67.2 percent when compared with the 12,408 default notices sent during the same period one year earlier. While second quarter's foreclosure activity hit the highest level since first quarter 2003, default notices still remain below the historical average of 32,762 per quarter.
Declining home price appreciation was the major contributor to the increased default activity last quarter, according to the report. While nearly all regions of California experienced an increase in foreclosures, mortgage loans were least likely to go into default in Marin, Santa Cruz, Santa Clara, and El Dorado.
http://www.dqnews.com/RRFor0806.shtm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
REALTORS® COME TOGETHER TO HELP REBUILD NEW ORLEANS
Join thousands of REALTORS® from across the nation this fall to help rebuild and restore New Orleans as part of NAR's REALTORS® Conference & Expo. Last December, NAR maintained its commitment to host its annual convention in New Orleans as originally scheduled, despite the significant damage caused by Hurricane Katrina throughout the region. During each of the last five years, REALTORS® have come together to build a Habitat for Humanity home in the city hosting NAR's annual conference, and this year NAR increased its commitment to 54 homes. Additionally, REALTORS® will help restore schools, community facilities, and other public buildings.
Volunteer activities are available Tuesday, Nov. 7 through Tuesday, Nov. 14 and range from construction projects to painting to planting trees. Bus transportation to all project sites will be provided by NAR.
http://www.realtor.org/educsess.nsf/pageslu/rebuildneworleans?opendocument
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MORTGAGE LOAN APPLICATIONS RISE
The Market Composite Index, a measure of mortgage loan application volume, was 553.3 for the week ending Aug. 4, up 4.9 percent on a seasonally adjusted basis from 527.6 one week earlier, The Mortgage Bankers Association reported today. On an unadjusted basis, the index increased 4.3 percent for the week ending Aug. 4 compared with the previous week and was down 24.9 percent compared with the same week one year earlier.
The refinance share of mortgage activity increased to 38 percent of total applications for the week ending Aug. 4 from 37 percent the previous week. The adjustable-rate mortgage (ARM) share of activity hit the lowest level since March 2004, declining to 27.6 percent of total applications from 27.8 percent the previous week.
http://www.mortgagebankers.org/NewsandMedia/PressCenter/43849.htm
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Fast Facts
Calif. median home price - June 06: $575,800 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region June 06:
Santa Barbara So. Coast $1,300,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region June 06:
High Desert $334,790 (Source: C.A.R.)
Mortgage rates - week ending 8/3:
30-yr. fixed: 6.63%; Fees/points: 0.3%
15-yr. fixed: 6.27%; Fees/points: 0.3%
1-yr. adjustable: 5.69%; 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 185,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, July 26, 2006
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® and
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® and
David Breidenbach, 619-888-3322, www.BreidyPropertiesInc.com
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MEDIAN HOME PRICE IN CALIFORNIA REACHES RECORD HIGH IN JUNE
CONSUMER CONFIDENCE EDGES UP FOR SECOND CONSECUTIVE MONTH
U.S. LEADING INDEX IMPROVES IN JUNE
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MEDIAN HOME PRICE IN CALIFORNIA REACHES RECORD HIGH IN JUNE
The median price of an existing single-family home in California increased 6.2 percent in June and sales decreased 26.3 percent compared with the same period a year ago, C.A.R. recently reported. "While home price appreciation has slowed over the past few months, the median price continues to climb in most areas of the state and reached $575,800 in June, a new record for California," said C.A.R. President Vince Malta. "For the first time since November 2001, we experienced back-to-back months of single-digit price appreciation, moderated in part by increased inventory levels."
According to the report, the median price of an existing, single-family detached home in California during June 2006 was $575,800, a 6.2 percent increase over the revised $542,330 median for June 2005. Also in June, closed escrow sales of existing, single-family detached homes in California totaled 483,690 at a seasonally adjusted annualized rate, down 26.3 percent compared with the sales pace recorded one year earlier and down 0.9 percent from home resale activity in May.
"Mortgage interest rates continued to edge up for the fifth consecutive month in June, contributing in part to a slowdown in sales," said C.A.R. Chief Economist Leslie Appleton-Young. "June 2006 was the first time since late 2001 that the sales pace fell below 500,000 for two consecutive months. Home sales declined 26.3 percent last month compared with June 2005, when they hit the third-highest monthly pace on record."
http://www.car.org/index.php?id=MzY0MzY=
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CONSUMER CONFIDENCE EDGES UP FOR SECOND CONSECUTIVE MONTH
Though consumers remain cautious about the months ahead, consumer confidence improved for the second straight month in July, according to a recent report from The Conference Board. Following last month's modest improvement, the Consumer Confidence Index increased to 106.5 (1985=100) in July, up from 105.4 in June. The Present Situation and Expectations indices also edged up, rising to 133 and 88.8, respectively.
Though consumers' assessment of current conditions remains positive, fewer people anticipate improvements in the labor market and overall business conditions in the next six months, according to the report. In July, the proportion of consumers expecting more jobs to become available in the coming months declined to 14.4 percent, and the percentage of consumers anticipating their incomes to increase remained nearly unchanged from June, standing at 17.7 percent.
http://www.conference-board.org/economics/consumerConfidence.cfm
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U.S. LEADING INDEX IMPROVES IN JUNE
Following two consecutive declines, the U.S. leading index increased 0.1 percent to 138.1 (1996=100) in June, The Conference Board recently reported. Six of 10 indicators composing the leading index increased last month, including initial claims for unemployment insurance, consumer expectations, real money supply, average weekly manufacturing hours, interest rate spread, and manufacturers' orders for nondefense capital goods. A key barometer of economic conditions, the leading index signals slow to moderate economic growth in the coming months, according to the report.
The coincident and lagging indices, which reflect current and past economic activity, respectively, also increased in June. The coincident index edged up 0.2 percent to 122.9, while the lagging index rose 0.6 percent to 123.7.
http://www.conference-board.org/economics/bci/pressRelease_output.cfm?cid=1
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Fast Facts
Calif. median home price - June 06: $575,800 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region June 06:
Santa Barbara So. Coast $1,300,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region June 06:
High Desert $334,790 (Source: C.A.R.)
Mortgage rates - week ending 7/20:
30-yr. fixed: 6.8%; Fees/points: 0.5%
15-yr. fixed: 6.41%; Fees/points: 0.4%
1-yr. adjustable: 5.8%; 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 185,000 REALTORS® statewide.
Edited by Mark Giberson, markg@car.org and Amanda Hopkins,Copyright © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
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MEDIAN HOME PRICE IN CALIFORNIA REACHES RECORD HIGH IN JUNE
CONSUMER CONFIDENCE EDGES UP FOR SECOND CONSECUTIVE MONTH
U.S. LEADING INDEX IMPROVES IN JUNE
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MEDIAN HOME PRICE IN CALIFORNIA REACHES RECORD HIGH IN JUNE
The median price of an existing single-family home in California increased 6.2 percent in June and sales decreased 26.3 percent compared with the same period a year ago, C.A.R. recently reported. "While home price appreciation has slowed over the past few months, the median price continues to climb in most areas of the state and reached $575,800 in June, a new record for California," said C.A.R. President Vince Malta. "For the first time since November 2001, we experienced back-to-back months of single-digit price appreciation, moderated in part by increased inventory levels."
According to the report, the median price of an existing, single-family detached home in California during June 2006 was $575,800, a 6.2 percent increase over the revised $542,330 median for June 2005. Also in June, closed escrow sales of existing, single-family detached homes in California totaled 483,690 at a seasonally adjusted annualized rate, down 26.3 percent compared with the sales pace recorded one year earlier and down 0.9 percent from home resale activity in May.
"Mortgage interest rates continued to edge up for the fifth consecutive month in June, contributing in part to a slowdown in sales," said C.A.R. Chief Economist Leslie Appleton-Young. "June 2006 was the first time since late 2001 that the sales pace fell below 500,000 for two consecutive months. Home sales declined 26.3 percent last month compared with June 2005, when they hit the third-highest monthly pace on record."
http://www.car.org/index.php?id=MzY0MzY=
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CONSUMER CONFIDENCE EDGES UP FOR SECOND CONSECUTIVE MONTH
Though consumers remain cautious about the months ahead, consumer confidence improved for the second straight month in July, according to a recent report from The Conference Board. Following last month's modest improvement, the Consumer Confidence Index increased to 106.5 (1985=100) in July, up from 105.4 in June. The Present Situation and Expectations indices also edged up, rising to 133 and 88.8, respectively.
Though consumers' assessment of current conditions remains positive, fewer people anticipate improvements in the labor market and overall business conditions in the next six months, according to the report. In July, the proportion of consumers expecting more jobs to become available in the coming months declined to 14.4 percent, and the percentage of consumers anticipating their incomes to increase remained nearly unchanged from June, standing at 17.7 percent.
http://www.conference-board.org/economics/consumerConfidence.cfm
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U.S. LEADING INDEX IMPROVES IN JUNE
Following two consecutive declines, the U.S. leading index increased 0.1 percent to 138.1 (1996=100) in June, The Conference Board recently reported. Six of 10 indicators composing the leading index increased last month, including initial claims for unemployment insurance, consumer expectations, real money supply, average weekly manufacturing hours, interest rate spread, and manufacturers' orders for nondefense capital goods. A key barometer of economic conditions, the leading index signals slow to moderate economic growth in the coming months, according to the report.
The coincident and lagging indices, which reflect current and past economic activity, respectively, also increased in June. The coincident index edged up 0.2 percent to 122.9, while the lagging index rose 0.6 percent to 123.7.
http://www.conference-board.org/economics/bci/pressRelease_output.cfm?cid=1
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Fast Facts
Calif. median home price - June 06: $575,800 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region June 06:
Santa Barbara So. Coast $1,300,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region June 06:
High Desert $334,790 (Source: C.A.R.)
Mortgage rates - week ending 7/20:
30-yr. fixed: 6.8%; Fees/points: 0.5%
15-yr. fixed: 6.41%; Fees/points: 0.4%
1-yr. adjustable: 5.8%; 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 185,000 REALTORS® statewide.
Edited by Mark Giberson, markg@car.org and Amanda Hopkins,Copyright © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
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Wednesday, July 19, 2006
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® and
Wednesday, July 19, 2006
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® and
David Breidenbach, 619-888-3322, www.BreidyPropertiesInc.com
BUILDER CONFIDENCE CONTINUES TO ERODE
U.S. HOUSING STARTS DECLINE 11 PERCENT IN JUNE
MORTGAGE LOAN APPLICATIONS DECLINE
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BUILDER CONFIDENCE CONTINUES TO ERODE
Concerns about rising interest rates and housing affordability continue to negatively impact the confidence level of the nation's home builders, which declined for the sixth consecutive month in July, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The seasonally adjusted HMI stands at 39 this month, down three points from June and down 31 points from a year ago. An HMI above 50 indicates that more builders view sales conditions as good versus poor.
All three HMI components decreased in July. The component measuring sales expectations declined five points to 46, while the components gauging current single-family sales and buyer traffic decreased to 43 and 27, respectively. In the West, where builders have been the most optimistic in recent months, builder confidence declined nine points to a seasonally adjusted HMI of 51.
BUILDER CONFIDENCE CONTINUES TO ERODE
U.S. HOUSING STARTS DECLINE 11 PERCENT IN JUNE
MORTGAGE LOAN APPLICATIONS DECLINE
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
BUILDER CONFIDENCE CONTINUES TO ERODE
Concerns about rising interest rates and housing affordability continue to negatively impact the confidence level of the nation's home builders, which declined for the sixth consecutive month in July, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The seasonally adjusted HMI stands at 39 this month, down three points from June and down 31 points from a year ago. An HMI above 50 indicates that more builders view sales conditions as good versus poor.
All three HMI components decreased in July. The component measuring sales expectations declined five points to 46, while the components gauging current single-family sales and buyer traffic decreased to 43 and 27, respectively. In the West, where builders have been the most optimistic in recent months, builder confidence declined nine points to a seasonally adjusted HMI of 51.
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U.S. HOUSING STARTS DECLINE 11 PERCENT IN JUNE
The seasonally adjusted annual rate for privately owned housing starts dropped for the third consecutive month in June, falling to a rate of 1.85 million units, according to a report released by the U.S. Dept. of Commerce. The June construction pace was down 5.3 percent from May and down 11 percent from a year ago. Single-family housing starts decreased 13.8 percent from June 2005, to a rate of 1.49 million units, while starts for buildings with five or more units decreased 3.2 percent to a rate of 306,000. The number of building permits issued, which can be an indicator of future building activity, declined 14.9 percent from one year earlier to a seasonally adjusted annual rate of 1.86 million permits.
The rate of new residential construction decreased across the nation in June. In the Northeast and South, housing starts declined 12.8 percent, while the construction pace fell 9.6 percent and 7.3 percent in the Midwest and West, respectively.
http://www.census.gov/const/newresconst_200606.pdf
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ MORTGAGE LOAN APPLICATIONS DECLINE
The Market Composite Index, a measure of mortgage loan application volume, was 540.8 for
the week ending July 14, down 4.6 percent on a seasonally adjusted basis from 566.8 one week earlier, The Mortgage Bankers Association reported today. On an unadjusted basis, the index increased 36.4 percent for the week ending July 14 compared with the previous week and was down 31.3 percent compared with the same week one year earlier.
The refinance share of mortgage activity increased to 35 percent of total applications for the week ending July 14 from 34 percent the previous week. The adjustable-rate mortgage (ARM) share of activity rose to 29 percent of total applications from 28.7 percent the previous week.
http://www.mortgagebankers.org/NewsandMedia/PressCenter/43525.htm
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Fast Facts
Calif. median home price - May 06: $564,430 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region May 06:
Santa Barbara So. Coast $1,240,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region May 06:
High Desert $332,080 (Source: C.A.R.)
Mortgage rates - week ending 7/13:
30-yr. fixed: 6.74%; Fees/points: 0.6%
15-yr. fixed: 6.37%; Fees/points: 0.4%
1-yr. adjustable: 5.75%; Fees/points: 0.6%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association
U.S. HOUSING STARTS DECLINE 11 PERCENT IN JUNE
The seasonally adjusted annual rate for privately owned housing starts dropped for the third consecutive month in June, falling to a rate of 1.85 million units, according to a report released by the U.S. Dept. of Commerce. The June construction pace was down 5.3 percent from May and down 11 percent from a year ago. Single-family housing starts decreased 13.8 percent from June 2005, to a rate of 1.49 million units, while starts for buildings with five or more units decreased 3.2 percent to a rate of 306,000. The number of building permits issued, which can be an indicator of future building activity, declined 14.9 percent from one year earlier to a seasonally adjusted annual rate of 1.86 million permits.
The rate of new residential construction decreased across the nation in June. In the Northeast and South, housing starts declined 12.8 percent, while the construction pace fell 9.6 percent and 7.3 percent in the Midwest and West, respectively.
http://www.census.gov/const/newresconst_200606.pdf
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ MORTGAGE LOAN APPLICATIONS DECLINE
The Market Composite Index, a measure of mortgage loan application volume, was 540.8 for
the week ending July 14, down 4.6 percent on a seasonally adjusted basis from 566.8 one week earlier, The Mortgage Bankers Association reported today. On an unadjusted basis, the index increased 36.4 percent for the week ending July 14 compared with the previous week and was down 31.3 percent compared with the same week one year earlier.
The refinance share of mortgage activity increased to 35 percent of total applications for the week ending July 14 from 34 percent the previous week. The adjustable-rate mortgage (ARM) share of activity rose to 29 percent of total applications from 28.7 percent the previous week.
http://www.mortgagebankers.org/NewsandMedia/PressCenter/43525.htm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - May 06: $564,430 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region May 06:
Santa Barbara So. Coast $1,240,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region May 06:
High Desert $332,080 (Source: C.A.R.)
Mortgage rates - week ending 7/13:
30-yr. fixed: 6.74%; Fees/points: 0.6%
15-yr. fixed: 6.37%; Fees/points: 0.4%
1-yr. adjustable: 5.75%; 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 185,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins,
Edited by Mark Giberson, and Amanda Hopkins,
Copyright © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, July 12, 2006
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® and
Wednesday, July 12, 2006
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® and
David Breidenbach, 619-888-3322, www.BreidyPropertiesInc.com
PENDING HOME SALES INDEX SHOWS STABILIZING HOUSING MARKET
U.S. LEADING INDEX DECLINES FOR THIRD TIME IN SIX MONTHS
MORTGAGE LOAN APPLICATIONS RISE
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
PENDING HOME SALES INDEX SHOWS STABILIZING HOUSING MARKET
The recent month-to-month increase in pending home sales is a sign that the housing market is beginning to level out, according to a recent report from NAR. In May, 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, increased 1.3 percent to 113.4 from the reading one month earlier. The May 2006 PHSI declined 10.1 percent from a level of 126.1 reported during May 2005. An index of 100 or more generally indicates a high level of home sales activity.
The PHSI declined across the nation in May compared with the reading a year ago. On a regional basis, the PHSI was highest in the South, where it edged down 7.3 percent to 127.5. In the West, the index fell 12.9 percent to 110.1. The PHSI also declined in the Northeast and Midwest regions, falling to 106.1 and 100.9, respectively.
http://www.realtor.org/PublicAffairsWeb.nsf/Pages/PHSIMay06?OpenDocument
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
U.S. LEADING INDEX DECLINES FOR THIRD TIME IN SIX MONTHS
The U.S. leading index, a key barometer of economic conditions, declined 0.6 percent to 137.9 (1996=100) in May, The Conference Board recently reported. Initial claims for unemployment insurance and the index of consumer expectations were the largest negative contributors to the decline, while manufacturers' orders for nondefense capital goods, manufacturers' orders for consumer goods, and interest rate spread were the positive contributors. Since November 2005, the leading index has decreased by 0.2 percent, impacted by the decline in housing permits, according to the report.
The coincident and lagging indices, which reflect current and past economic activity, respectively, increased in May. The coincident index edged up 0.1 percent to 122.7, while the lagging index rose 0.2 percent to 123.
PENDING HOME SALES INDEX SHOWS STABILIZING HOUSING MARKET
U.S. LEADING INDEX DECLINES FOR THIRD TIME IN SIX MONTHS
MORTGAGE LOAN APPLICATIONS RISE
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
PENDING HOME SALES INDEX SHOWS STABILIZING HOUSING MARKET
The recent month-to-month increase in pending home sales is a sign that the housing market is beginning to level out, according to a recent report from NAR. In May, 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, increased 1.3 percent to 113.4 from the reading one month earlier. The May 2006 PHSI declined 10.1 percent from a level of 126.1 reported during May 2005. An index of 100 or more generally indicates a high level of home sales activity.
The PHSI declined across the nation in May compared with the reading a year ago. On a regional basis, the PHSI was highest in the South, where it edged down 7.3 percent to 127.5. In the West, the index fell 12.9 percent to 110.1. The PHSI also declined in the Northeast and Midwest regions, falling to 106.1 and 100.9, respectively.
http://www.realtor.org/PublicAffairsWeb.nsf/Pages/PHSIMay06?OpenDocument
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
U.S. LEADING INDEX DECLINES FOR THIRD TIME IN SIX MONTHS
The U.S. leading index, a key barometer of economic conditions, declined 0.6 percent to 137.9 (1996=100) in May, The Conference Board recently reported. Initial claims for unemployment insurance and the index of consumer expectations were the largest negative contributors to the decline, while manufacturers' orders for nondefense capital goods, manufacturers' orders for consumer goods, and interest rate spread were the positive contributors. Since November 2005, the leading index has decreased by 0.2 percent, impacted by the decline in housing permits, according to the report.
The coincident and lagging indices, which reflect current and past economic activity, respectively, increased in May. The coincident index edged up 0.1 percent to 122.7, while the lagging index rose 0.2 percent to 123.
http://www.conference-board.org/economics/bci/pressRelease_output.cfm?cid=1
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
MORTGAGE LOAN APPLICATIONS RISE
The Market Composite Index, a measure of mortgage loan application volume, was 566.8 for the week ending July 7, up 1 percent on a seasonally adjusted basis from 561 one week earlier, The Mortgage Bankers Association reported today. On an unadjusted basis, the index decreased 29.1 percent for the week ending July 7 compared with the previous week and was down 36.3 percent compared with the same week one year earlier.
The refinance share of mortgage activity declined to 34 percent of total applications for the week ending July 7 from 35 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 28.7 percent of total applications from 29.5 percent the previous week.
http://www.mortgagebankers.org/NewsandMedia/PressCenter/43365.htm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
MORTGAGE LOAN APPLICATIONS RISE
The Market Composite Index, a measure of mortgage loan application volume, was 566.8 for the week ending July 7, up 1 percent on a seasonally adjusted basis from 561 one week earlier, The Mortgage Bankers Association reported today. On an unadjusted basis, the index decreased 29.1 percent for the week ending July 7 compared with the previous week and was down 36.3 percent compared with the same week one year earlier.
The refinance share of mortgage activity declined to 34 percent of total applications for the week ending July 7 from 35 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 28.7 percent of total applications from 29.5 percent the previous week.
http://www.mortgagebankers.org/NewsandMedia/PressCenter/43365.htm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - May 06: $564,430 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region May 06:
Santa Barbara So. Coast $1,240,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region May 06:
High Desert $332,080 (Source: C.A.R.)
Mortgage rates - week ending 7/6:
30-yr. fixed: 6.79%; Fees/points: 0.5%
15-yr. fixed: 6.44%; Fees/points: 0.5%
1-yr. adjustable: 5.83%; Fees/points: 0.8%
(Source: Freddie Mac)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 185,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
Fast Facts
Calif. median home price - May 06: $564,430 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region May 06:
Santa Barbara So. Coast $1,240,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region May 06:
High Desert $332,080 (Source: C.A.R.)
Mortgage rates - week ending 7/6:
30-yr. fixed: 6.79%; Fees/points: 0.5%
15-yr. fixed: 6.44%; Fees/points: 0.5%
1-yr. adjustable: 5.83%; Fees/points: 0.8%
(Source: Freddie Mac)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 185,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, July 05, 2006
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® and
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® and
David Breidenbach, 619-888-3322, www.BreidyPropertiesInc.com
CALIFORNIA HOUSING STARTS REFLECT NORMALIZING MARKET
DESPITE GROWING PAINS, CENTRAL VALLEY RESIDENTS UPBEAT ABOUT FUTURE
REAL ESTATE CONSTRUCTION SPENDING REACHES $1.21 TRILLION
EIGHT CALIFORNIA CITIES AMONG NATION'S FASTEST GROWING
FED RAISES TARGET FOR FEDERAL FUNDS RATE TO 5.25 PERCENT
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CALIFORNIA HOUSING STARTS REFLECT NORMALIZING MARKET
New home construction in California declined during May 2006, falling 21.2 percent when compared with the construction pace recorded one year earlier, the California Building Industry Association (CBIA) recently reported. Despite the decline, housing starts continue to edge up on a month-to-month basis, suggesting builders are on track to produce 170,000 to 180,000 new housing units in California during 2006, the fourth-highest number of starts in the past 17 years.
Based on the number of building permits issued, 15,263 new housing units were started throughout the state in May, with single-family units accounting for 75.8 percent of the starts. While single-family production is expected to remain strong in most of Southern California, starts are anticipated to trend downward in San Diego, the San Joaquin Valley, the Sacramento region, and the Bay Area, according to the report.
http://www.cbia.org/index.cfm?pageid=1313&preview=yes
CALIFORNIA HOUSING STARTS REFLECT NORMALIZING MARKET
DESPITE GROWING PAINS, CENTRAL VALLEY RESIDENTS UPBEAT ABOUT FUTURE
REAL ESTATE CONSTRUCTION SPENDING REACHES $1.21 TRILLION
EIGHT CALIFORNIA CITIES AMONG NATION'S FASTEST GROWING
FED RAISES TARGET FOR FEDERAL FUNDS RATE TO 5.25 PERCENT
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CALIFORNIA HOUSING STARTS REFLECT NORMALIZING MARKET
New home construction in California declined during May 2006, falling 21.2 percent when compared with the construction pace recorded one year earlier, the California Building Industry Association (CBIA) recently reported. Despite the decline, housing starts continue to edge up on a month-to-month basis, suggesting builders are on track to produce 170,000 to 180,000 new housing units in California during 2006, the fourth-highest number of starts in the past 17 years.
Based on the number of building permits issued, 15,263 new housing units were started throughout the state in May, with single-family units accounting for 75.8 percent of the starts. While single-family production is expected to remain strong in most of Southern California, starts are anticipated to trend downward in San Diego, the San Joaquin Valley, the Sacramento region, and the Bay Area, according to the report.
http://www.cbia.org/index.cfm?pageid=1313&preview=yes
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
DESPITE GROWING PAINS, CENTRAL VALLEY RESIDENTS UPBEAT ABOUT FUTURE
Residents of California's Central Valley rate their community as a good place to live, even as air pollution, traffic congestion, and affordable housing rank among their top concerns, according to a recent study by the Public Policy Institute of California (PPIC). Nearly 75 percent of residents are upbeat about the quality of life in the Central Valley region, and 28 percent believe conditions have improved over the past five years.
Despite their optimism, Central Valley inhabitants cite poor air quality as a top concern facing the region. The proportion of residents who feel air pollution is a big problem in the Central Valley has jumped from 28 percent to 45 percent since 1999, according to the report. Additionally, the percentage of residents citing asthma and other respiratory problems as a health issue affecting their families has grown from 37 percent to 49 percent over the past three years. Residents of South San Joaquin are more likely than those living in the North Valley, Sacramento, and North San Joaquin to view air pollution as a serious health threat.
http://www.ppic.org/main/pressrelease.asp?i=630
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
DESPITE GROWING PAINS, CENTRAL VALLEY RESIDENTS UPBEAT ABOUT FUTURE
Residents of California's Central Valley rate their community as a good place to live, even as air pollution, traffic congestion, and affordable housing rank among their top concerns, according to a recent study by the Public Policy Institute of California (PPIC). Nearly 75 percent of residents are upbeat about the quality of life in the Central Valley region, and 28 percent believe conditions have improved over the past five years.
Despite their optimism, Central Valley inhabitants cite poor air quality as a top concern facing the region. The proportion of residents who feel air pollution is a big problem in the Central Valley has jumped from 28 percent to 45 percent since 1999, according to the report. Additionally, the percentage of residents citing asthma and other respiratory problems as a health issue affecting their families has grown from 37 percent to 49 percent over the past three years. Residents of South San Joaquin are more likely than those living in the North Valley, Sacramento, and North San Joaquin to view air pollution as a serious health threat.
http://www.ppic.org/main/pressrelease.asp?i=630
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
REAL ESTATE CONSTRUCTION SPENDING REACHES $1.21 TRILLION
The annual pace of construction spending topped $1 trillion for the 23rd consecutive month in May 2006, rising 6 percent to a seasonally adjusted annual rate of $1.21 trillion, according to a recent report by the U.S. Census Bureau. Construction spending totaled $457.4 billion during the first five months of 2006, up 8.6 percent over construction spending during the same period in 2005. The annual pace of total construction spending has remained above $1 trillion since July 2004.
During May 2006, residential construction spending increased 2.5 percent over the previous year to a rate of $660.1 billion, while the value of nonresidential construction activity rose 10.7 percent to a rate of $546.1 billion, according to the report.
http://www.census.gov/const/C30/release.pdf
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
EIGHT CALIFORNIA CITIES AMONG NATION'S FASTEST GROWING
Eight cities in the Golden State rank among the top 25 cities with the fastest growth rates in the nation, according to a recent report by the U.S. Census Bureau. With a population increase of 11.6 percent, Elk Grove, Calif., was the country's fastest growing city between July 2004 and July 2005. Other California cities listed in the top 25 include Moreno Valley (6), Rancho Cucamonga (7), Irvine (10), Bakersfield (11), Lancaster (14), Visalia (16), and Fontana (23).
California also is home to three of the nation's largest cities, according to the Census Bureau's report. With 3.84 million residents, Los Angeles remains the nation's second most populous city, while San Diego and San Jose rank eighth and 10th, respectively.
http://www.census.gov/Press-Release/www/releases/archives/population/007001.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
FED RAISES TARGET FOR FEDERAL FUNDS RATE TO 5.25 PERCENT
The Federal Reserve's Open Market Committee last week raised the target for the federal funds rate by 25 basis points to 5.25 percent, marking the 17th straight increase since June 2004. The federal funds target rate is the interest rate charged by banks when they borrow funds "overnight" from each other. The Fed cited elevated inflation and high energy costs as factors for the increase.
"Recent indicators suggest that economic growth is moderating from its quite strong pace earlier this year, partly reflecting a gradual cooling of the housing market and the lagged effects of increases in interest rates and energy prices," the Fed said in a prepared statement.
The Fed also indicated the possibility of future interest rate increases, stating "Although the moderation in the growth of aggregate demand should help to limit inflation pressures over time, the Committee judges that some inflation risks remain. The extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information."
http://federalreserve.gov/boarddocs/press/monetary/2006/20060629/default.htm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - May 06: $564,430 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region May 06:
Santa Barbara So. Coast $1,240,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region May 06:
High Desert $332,080 (Source: C.A.R.)
Mortgage rates - week ending 6/29:
30-yr. fixed: 6.78%; Fees/points: 0.5%
15-yr. fixed: 6.43%; Fees/points: 0.5%
1-yr. adjustable: 5.82%; Fees/points: 0.8%
(Source: Freddie Mac)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 185,000 REALTORS® statewide.
Edited by Mark Giberson and Amanda Hopkins
FED RAISES TARGET FOR FEDERAL FUNDS RATE TO 5.25 PERCENT
The Federal Reserve's Open Market Committee last week raised the target for the federal funds rate by 25 basis points to 5.25 percent, marking the 17th straight increase since June 2004. The federal funds target rate is the interest rate charged by banks when they borrow funds "overnight" from each other. The Fed cited elevated inflation and high energy costs as factors for the increase.
"Recent indicators suggest that economic growth is moderating from its quite strong pace earlier this year, partly reflecting a gradual cooling of the housing market and the lagged effects of increases in interest rates and energy prices," the Fed said in a prepared statement.
The Fed also indicated the possibility of future interest rate increases, stating "Although the moderation in the growth of aggregate demand should help to limit inflation pressures over time, the Committee judges that some inflation risks remain. The extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information."
http://federalreserve.gov/boarddocs/press/monetary/2006/20060629/default.htm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - May 06: $564,430 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region May 06:
Santa Barbara So. Coast $1,240,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region May 06:
High Desert $332,080 (Source: C.A.R.)
Mortgage rates - week ending 6/29:
30-yr. fixed: 6.78%; Fees/points: 0.5%
15-yr. fixed: 6.43%; Fees/points: 0.5%
1-yr. adjustable: 5.82%; Fees/points: 0.8%
(Source: Freddie Mac)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 185,000 REALTORS® statewide.
Edited by Mark Giberson and Amanda Hopkins
Copyright © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, May 31, 2006
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® and David Breidenbach, www.BreidyPropertiesInc.com, 619-888-3322
C.A.R. REPORTS HOME SALES DECREASED 21.4 PERCENT IN APRIL
CONSUMERS CONCERNED ABOUT SHORT-TERM ECONOMIC OUTLOOK
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. REPORTS HOME SALES DECREASED 21.4 PERCENT IN APRIL
The median price of an existing single-family home in California increased 10.2 percent in April and sales decreased 21.4 percent compared with the same period a year ago, C.A.R. recently reported. "Sales fell this year compared with April 2005 when they hit the second-highest monthly pace on record. Concerns about the likelihood of future interest rate increases continue to influence the market," said C.A.R. President Vince Malta. "While still near their historic lows, mortgage interest rates are at their highest level since June 2002 for fixed-rate mortgages, and August 2001 for adjustable-rate mortgages."
According to the report, the median price of an existing, single-family detached home in California during April 2006 was $562,380, a 10.2 percent increase over the revised $510,400 median for April 2005. The April 2006 median price was essentially unchanged compared with March's revised $562,630 median price. Also in April, closed escrow sales of existing, single-family detached homes in California totaled 516,960, down 21.4 percent compared with the sales pace recorded one year earlier and down 4.1 percent from home resale activity in March.
http://www.car.org/index.php?id=MzYzMDI=
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CONSUMERS CONCERNED ABOUT SHORT-TERM ECONOMIC OUTLOOK
Consumer confidence took a downward turn in May, according to The Conference Board's Consumer Confidence Index. Following increases in March and April, the Index fell 6.6 points to 103.2 (1985=100) this month. The Expectations and Present Situation indices also declined, decreasing to 83.7 and 132.5, respectively.
Though consumers' assessment of current conditions remains positive, their outlook for the next six months is less optimistic. Concerns about the labor market and earning potential helped push the Expectations Index to a low last seen following Hurricane Katrina in September 2005. According to the report, fewer people anticipate improvements in the labor market and overall business conditions. In May, the proportion of consumers expecting their incomes to increase in the near-term future declined to 16.6 percent, while those anticipating more jobs to become available edged down to 14.6 percent.
http://www.conference-board.org/economics/consumerConfidence.cfm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - April 06: $562,380 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region April 06:
Santa Barbara So. Coast $1,250,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region April 06:
High Desert $334,860 (Source: C.A.R.)
Mortgage rates - week ending 5/25:
30-yr. fixed: 6.62%; Fees/points: 0.4%
15-yr. fixed: 6.23%; Fees/points: 0.4%
1-yr. adjustable: 5.61%; 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 185,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® and David Breidenbach, www.BreidyPropertiesInc.com, 619-888-3322
C.A.R. REPORTS HOME SALES DECREASED 21.4 PERCENT IN APRIL
CONSUMERS CONCERNED ABOUT SHORT-TERM ECONOMIC OUTLOOK
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. REPORTS HOME SALES DECREASED 21.4 PERCENT IN APRIL
The median price of an existing single-family home in California increased 10.2 percent in April and sales decreased 21.4 percent compared with the same period a year ago, C.A.R. recently reported. "Sales fell this year compared with April 2005 when they hit the second-highest monthly pace on record. Concerns about the likelihood of future interest rate increases continue to influence the market," said C.A.R. President Vince Malta. "While still near their historic lows, mortgage interest rates are at their highest level since June 2002 for fixed-rate mortgages, and August 2001 for adjustable-rate mortgages."
According to the report, the median price of an existing, single-family detached home in California during April 2006 was $562,380, a 10.2 percent increase over the revised $510,400 median for April 2005. The April 2006 median price was essentially unchanged compared with March's revised $562,630 median price. Also in April, closed escrow sales of existing, single-family detached homes in California totaled 516,960, down 21.4 percent compared with the sales pace recorded one year earlier and down 4.1 percent from home resale activity in March.
http://www.car.org/index.php?id=MzYzMDI=
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CONSUMERS CONCERNED ABOUT SHORT-TERM ECONOMIC OUTLOOK
Consumer confidence took a downward turn in May, according to The Conference Board's Consumer Confidence Index. Following increases in March and April, the Index fell 6.6 points to 103.2 (1985=100) this month. The Expectations and Present Situation indices also declined, decreasing to 83.7 and 132.5, respectively.
Though consumers' assessment of current conditions remains positive, their outlook for the next six months is less optimistic. Concerns about the labor market and earning potential helped push the Expectations Index to a low last seen following Hurricane Katrina in September 2005. According to the report, fewer people anticipate improvements in the labor market and overall business conditions. In May, the proportion of consumers expecting their incomes to increase in the near-term future declined to 16.6 percent, while those anticipating more jobs to become available edged down to 14.6 percent.
http://www.conference-board.org/economics/consumerConfidence.cfm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - April 06: $562,380 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region April 06:
Santa Barbara So. Coast $1,250,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region April 06:
High Desert $334,860 (Source: C.A.R.)
Mortgage rates - week ending 5/25:
30-yr. fixed: 6.62%; Fees/points: 0.4%
15-yr. fixed: 6.23%; Fees/points: 0.4%
1-yr. adjustable: 5.61%; 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 185,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, May 24, 2006
Brought to you by the California Association of REALTORS® and David Breidenbach, www.BreidyPropertiesInc.com, 619-888-3322
USE OF INTERNET BY ALL HOME BUYERS RISES TO 70 PERCENT
FREE MATERIALS AVAILABLE FROM THE NATIONAL FLOOD INSURANCE PROGRAM
U.S. LEADING INDEX DECLINES
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
USE OF INTERNET BY ALL HOME BUYERS RISES TO 70 PERCENT
The Internet buyer has become the "typical" home buyer over the last few years, according to C.A.R.'s "2006 Internet Versus Traditional Buyer Survey." Since 2001, the share of home buyers using the Internet as an integral part of the home-buying process has nearly doubled to 70 percent. More than 50 percent of Internet buyers said the information they gathered from the Internet was less useful than that provided by their REALTORS®, and none considered the information gathered from the Internet to be more useful than that obtained from their REALTORS®, according to the report. Additionally, Internet buyers are accustomed to receiving more frequent communication and faster response times from their REALTORS®.
"The Internet is changing the dynamics between buyers and their agents, as well as the way business is conducted throughout the real estate industry. However, while the Internet has become an important research tool for home buyers, it has only enhanced the REALTOR®'s role in the transaction," said C.A.R. President Vince Malta. "Buyers continue to rely on their REALTOR® for help with interpreting the information gathered from the Internet and to guide them through the home-buying process."
C.A.R.'s "2006 Internet Versus Traditional Buyer Survey" is available for purchase in electronic format for $19.95 for C.A.R. members and $39.95 for non-members and in hard copy format for $24.95 for C.A.R. members and $49.95 for non-members by calling (213) 739-8227 or logging on to www.rebsreports.com.
http://www.car.org/index.php?id=MzYyMzg=
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
FREE MATERIALS AVAILABLE FROM THE NATIONAL FLOOD INSURANCE PROGRAM
Floods are a common hazard in the United States, yet homeowner's insurance policies generally do not cover damages incurred from flooding. In 1968, U.S. Congress established the National Flood Insurance Program (NFIP) to offer property owners an alternative to government-provided disaster assistance, which only is available when the president declares a disaster. Disaster assistance often comes in the form of a loan that must be repaid, with interest.
Under the NFIP, local communities agree to adopt and enforce a floodplain management ordinance to reduce future risks to new construction in flood hazard areas. In exchange, the federal government provides flood insurance to members of the community. Homeowners who live in communities designated as high-risk flood areas and have a federally-backed mortgage must purchase flood insurance as a condition of their loan.
There are several free publications available from the NFIP that REALTORS® can print out and distribute to their clients. For more information, visit http://www.fema.gov/business/nfip/libfacts.shtm.
http://www.fema.gov/business/nfip/libfacts.shtm
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U.S. LEADING INDEX DECLINES
The U.S. leading index, a key barometer of economic conditions, declined 0.1 percent to 138.9 (1996=100) in April, The Conference Board recently reported. Three of the 10 indicators composing the leading index increased last month, including vendor performance, stock prices, and interest rate spread. Despite the decline, the leading index suggests moderate economic growth should continue in the coming months, according to the report.
The coincident and lagging indices, which reflect current and past economic activity, respectively, increased in April. The coincident index edged up 0.2 percent to 122.6, while the lagging index rose 0.3 percent to 122.8.
http://www.conference-board.org/economics/bci/pressRelease_output.cfm?cid=1
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Fast Facts
Calif. median home price - March 06: $561,350 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region March 06:
Santa Barbara So. Coast $1,190,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region March 06:
High Desert $326,710 (Source: C.A.R.)
Mortgage rates - week ending 5/18:
30-yr. fixed: 6.6%; Fees/points: 0.5%
15-yr. fixed: 6.2%; Fees/points: 0.5%
1-yr. adjustable: 5.62%; 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 185,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
Wednesday, May 24, 2006
Brought to you by the California Association of REALTORS® and David Breidenbach, www.BreidyPropertiesInc.com, 619-888-3322
USE OF INTERNET BY ALL HOME BUYERS RISES TO 70 PERCENT
FREE MATERIALS AVAILABLE FROM THE NATIONAL FLOOD INSURANCE PROGRAM
U.S. LEADING INDEX DECLINES
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USE OF INTERNET BY ALL HOME BUYERS RISES TO 70 PERCENT
The Internet buyer has become the "typical" home buyer over the last few years, according to C.A.R.'s "2006 Internet Versus Traditional Buyer Survey." Since 2001, the share of home buyers using the Internet as an integral part of the home-buying process has nearly doubled to 70 percent. More than 50 percent of Internet buyers said the information they gathered from the Internet was less useful than that provided by their REALTORS®, and none considered the information gathered from the Internet to be more useful than that obtained from their REALTORS®, according to the report. Additionally, Internet buyers are accustomed to receiving more frequent communication and faster response times from their REALTORS®.
"The Internet is changing the dynamics between buyers and their agents, as well as the way business is conducted throughout the real estate industry. However, while the Internet has become an important research tool for home buyers, it has only enhanced the REALTOR®'s role in the transaction," said C.A.R. President Vince Malta. "Buyers continue to rely on their REALTOR® for help with interpreting the information gathered from the Internet and to guide them through the home-buying process."
C.A.R.'s "2006 Internet Versus Traditional Buyer Survey" is available for purchase in electronic format for $19.95 for C.A.R. members and $39.95 for non-members and in hard copy format for $24.95 for C.A.R. members and $49.95 for non-members by calling (213) 739-8227 or logging on to www.rebsreports.com.
http://www.car.org/index.php?id=MzYyMzg=
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
FREE MATERIALS AVAILABLE FROM THE NATIONAL FLOOD INSURANCE PROGRAM
Floods are a common hazard in the United States, yet homeowner's insurance policies generally do not cover damages incurred from flooding. In 1968, U.S. Congress established the National Flood Insurance Program (NFIP) to offer property owners an alternative to government-provided disaster assistance, which only is available when the president declares a disaster. Disaster assistance often comes in the form of a loan that must be repaid, with interest.
Under the NFIP, local communities agree to adopt and enforce a floodplain management ordinance to reduce future risks to new construction in flood hazard areas. In exchange, the federal government provides flood insurance to members of the community. Homeowners who live in communities designated as high-risk flood areas and have a federally-backed mortgage must purchase flood insurance as a condition of their loan.
There are several free publications available from the NFIP that REALTORS® can print out and distribute to their clients. For more information, visit http://www.fema.gov/business/nfip/libfacts.shtm.
http://www.fema.gov/business/nfip/libfacts.shtm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
U.S. LEADING INDEX DECLINES
The U.S. leading index, a key barometer of economic conditions, declined 0.1 percent to 138.9 (1996=100) in April, The Conference Board recently reported. Three of the 10 indicators composing the leading index increased last month, including vendor performance, stock prices, and interest rate spread. Despite the decline, the leading index suggests moderate economic growth should continue in the coming months, according to the report.
The coincident and lagging indices, which reflect current and past economic activity, respectively, increased in April. The coincident index edged up 0.2 percent to 122.6, while the lagging index rose 0.3 percent to 122.8.
http://www.conference-board.org/economics/bci/pressRelease_output.cfm?cid=1
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - March 06: $561,350 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region March 06:
Santa Barbara So. Coast $1,190,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region March 06:
High Desert $326,710 (Source: C.A.R.)
Mortgage rates - week ending 5/18:
30-yr. fixed: 6.6%; Fees/points: 0.5%
15-yr. fixed: 6.2%; Fees/points: 0.5%
1-yr. adjustable: 5.62%; 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 185,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, May 03, 2006
Brought to you by the California Association of REALTORS® and David Breidenbach, www.BreidyPropertiesInc.com
PENDING HOME SALES INDICATE MODEST SLOWING IN MONTHS AHEAD
C.A.R.-SPONSORED LEGISLATION MOVES FORWARD
RATE OF CONSTRUCTION SPENDING NEARS $1.2 TRILLION
HOUSING DISCRIMINATION AGAINST REGISTERED SEX OFFENDERS CLARIFIED
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PENDING HOME SALES INDICATE MODEST SLOWING IN MONTHS AHEAD
The latest pending home sales data tracked by NAR signal modest slowing in the housing market over the next few months, according to a recent report. In March, 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, decreased 6 percent to 116.2 from the reading one year earlier. March's PHSI also fell 1.2 percent from February's upwardly revised reading of 117.6. An index of 100 or more generally indicates a high level of home sales activity.
The PHSI declined across the nation in March. On a regional basis, the PHSI was highest in the South, where it edged down 1.6 percent from one year earlier to 127.9. In the West, the index fell 13.3 percent to 111. The PHSI also declined in the Northeast and Midwest regions, falling to 112.9 and 106.1, respectively.
http://www.realtor.org/PublicAffairsWeb.nsf/Pages/MarchPHS06?OpenDocument
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C.A.R.-SPONSORED LEGISLATION MOVES FORWARD
Several C.A.R.-sponsored bills moved forward in the state Legislature last week, including AB 2429 (Negrete McLeod), "Real Estate Salesperson Licensure." The bill passed the Assembly Business and Professions Committee on April 25 and will be heard in the Assembly Appropriations Committee on May 3. Existing law allows applicants to receive a "conditional license" whereby the applicant can sell real property if they have passed the license exam but have only completed one of three required real estate courses. With a "conditional license," the real estate agent can sell real property but must finish the remaining required coursework over an 18-month period. The Department of Real Estate has licensed more than 100,000 new licensees in the last three years, and 85 percent used the conditional license option. AB 2429 would require all salesperson applicants after Sept. 31, 2007, to complete all three of the pre-license courses prior to receiving a license.
Also last week, the Assembly Insurance Committee passed AB 2365 (Jones), "Real Estate Licensees." If it becomes law, the measure would create a program administered by the Dept. of Insurance (DOI) to assist real estate licensees in locating sufficient errors and omissions (E&O) insurance. Existing law does not require real estate agents or brokers to carry E&O insurance, but those who do have it often experience difficulty locating competitive offers. AB 2365 authorizes and encourages the DOI to assist licensees in locating insurance that will fulfill their needs.
http://www.car.org/index.php?id=MzE3MjA=
Wednesday, May 03, 2006
Brought to you by the California Association of REALTORS® and David Breidenbach, www.BreidyPropertiesInc.com
PENDING HOME SALES INDICATE MODEST SLOWING IN MONTHS AHEAD
C.A.R.-SPONSORED LEGISLATION MOVES FORWARD
RATE OF CONSTRUCTION SPENDING NEARS $1.2 TRILLION
HOUSING DISCRIMINATION AGAINST REGISTERED SEX OFFENDERS CLARIFIED
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
PENDING HOME SALES INDICATE MODEST SLOWING IN MONTHS AHEAD
The latest pending home sales data tracked by NAR signal modest slowing in the housing market over the next few months, according to a recent report. In March, 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, decreased 6 percent to 116.2 from the reading one year earlier. March's PHSI also fell 1.2 percent from February's upwardly revised reading of 117.6. An index of 100 or more generally indicates a high level of home sales activity.
The PHSI declined across the nation in March. On a regional basis, the PHSI was highest in the South, where it edged down 1.6 percent from one year earlier to 127.9. In the West, the index fell 13.3 percent to 111. The PHSI also declined in the Northeast and Midwest regions, falling to 112.9 and 106.1, respectively.
http://www.realtor.org/PublicAffairsWeb.nsf/Pages/MarchPHS06?OpenDocument
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R.-SPONSORED LEGISLATION MOVES FORWARD
Several C.A.R.-sponsored bills moved forward in the state Legislature last week, including AB 2429 (Negrete McLeod), "Real Estate Salesperson Licensure." The bill passed the Assembly Business and Professions Committee on April 25 and will be heard in the Assembly Appropriations Committee on May 3. Existing law allows applicants to receive a "conditional license" whereby the applicant can sell real property if they have passed the license exam but have only completed one of three required real estate courses. With a "conditional license," the real estate agent can sell real property but must finish the remaining required coursework over an 18-month period. The Department of Real Estate has licensed more than 100,000 new licensees in the last three years, and 85 percent used the conditional license option. AB 2429 would require all salesperson applicants after Sept. 31, 2007, to complete all three of the pre-license courses prior to receiving a license.
Also last week, the Assembly Insurance Committee passed AB 2365 (Jones), "Real Estate Licensees." If it becomes law, the measure would create a program administered by the Dept. of Insurance (DOI) to assist real estate licensees in locating sufficient errors and omissions (E&O) insurance. Existing law does not require real estate agents or brokers to carry E&O insurance, but those who do have it often experience difficulty locating competitive offers. AB 2365 authorizes and encourages the DOI to assist licensees in locating insurance that will fulfill their needs.
http://www.car.org/index.php?id=MzE3MjA=
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
RATE OF CONSTRUCTION SPENDING NEARS $1.2 TRILLION
In March 2006, the annual pace of construction spending neared $1.2 trillion for the second consecutive month, according to a recent report by the U.S. Census Bureau. Construction spending was up 8.4 percent compared with March 2005 and rose 0.9 percent from the previous month. During the first three months of this year, construction spending totaled $253.5 billion, a 9.2 percent increase compared with the same period one year earlier.
Spending on residential construction in March 2006 increased 8.5 percent over the previous year to reach a seasonally adjusted rate of $680 billion. The value of nonresidential construction activity in March rose 8.2 percent to a rate of $519.1 billion, according to the report.
http://www.census.gov/const/C30/release.pdf
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HOUSING DISCRIMINATION AGAINST REGISTERED SEX OFFENDERS CLARIFIED
According to an opinion recently rendered by California Attorney General Bill Lockyer, the prohibition against the unauthorized use of information on the Megan's Law Web site does not in itself qualify registered sex offenders as a class protected from housing discrimination under the Fair Employment and Housing Act.
Through the Megan's Law Web site, the Dept. of Justice provides access to information about registered sex offenders. The law, however, prohibits the use of this information for purposes related to, among other things, housing or accommodations, loans, credit, and employment, except to protect a person at risk or as authorized by law.
The attorney general was asked to render an opinion as to whether the prohibition against unauthorized use qualified registered sex offenders as a class protected from housing discrimination, and he concluded it did not. "Registered sex offenders may be subject to housing discrimination 'to protect a person at risk' and as authorized by 'any provision of law,' but for no other reason," according to the attorney general. "Under the [Fair Employment and Housing Act], on the other hand, a claimant falling under a non-enumerated classification must satisfy the three-prong Harris test (citing Harris v Capital Growth Investors XIV (1991) 52 Cal. 3d 1142) to prove unlawful housing discrimination in the particular circumstances." The three-prong Harris test examines whether a claim of discrimination is based on a classification involving personal characteristics, whether the alleged discriminatory act at issue serves a legitimate business interest, and the policy considerations.
The attorney general's opinion in this matter is fully set forth on its Web site at http://ag.ca.gov/opinions/published/05-301.pdf. Opinions of the attorney general are not binding law, but they are entitled to great respect by the courts.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - March 06: $561,350 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region March 06:
Santa Barbara So. Coast $1,190,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region March 06:
High Desert $326,710 (Source: C.A.R.)
Mortgage rates - week ending 4/27:
30-yr. fixed: 6.58%; Fees/points: 0.5%
15-yr. fixed: 6.21%; Fees/points: 0.5%
1-yr. adjustable: 5.68%; 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 185,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2006 California Association of REALTORS® (C.A.R.)
RATE OF CONSTRUCTION SPENDING NEARS $1.2 TRILLION
In March 2006, the annual pace of construction spending neared $1.2 trillion for the second consecutive month, according to a recent report by the U.S. Census Bureau. Construction spending was up 8.4 percent compared with March 2005 and rose 0.9 percent from the previous month. During the first three months of this year, construction spending totaled $253.5 billion, a 9.2 percent increase compared with the same period one year earlier.
Spending on residential construction in March 2006 increased 8.5 percent over the previous year to reach a seasonally adjusted rate of $680 billion. The value of nonresidential construction activity in March rose 8.2 percent to a rate of $519.1 billion, according to the report.
http://www.census.gov/const/C30/release.pdf
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HOUSING DISCRIMINATION AGAINST REGISTERED SEX OFFENDERS CLARIFIED
According to an opinion recently rendered by California Attorney General Bill Lockyer, the prohibition against the unauthorized use of information on the Megan's Law Web site does not in itself qualify registered sex offenders as a class protected from housing discrimination under the Fair Employment and Housing Act.
Through the Megan's Law Web site, the Dept. of Justice provides access to information about registered sex offenders. The law, however, prohibits the use of this information for purposes related to, among other things, housing or accommodations, loans, credit, and employment, except to protect a person at risk or as authorized by law.
The attorney general was asked to render an opinion as to whether the prohibition against unauthorized use qualified registered sex offenders as a class protected from housing discrimination, and he concluded it did not. "Registered sex offenders may be subject to housing discrimination 'to protect a person at risk' and as authorized by 'any provision of law,' but for no other reason," according to the attorney general. "Under the [Fair Employment and Housing Act], on the other hand, a claimant falling under a non-enumerated classification must satisfy the three-prong Harris test (citing Harris v Capital Growth Investors XIV (1991) 52 Cal. 3d 1142) to prove unlawful housing discrimination in the particular circumstances." The three-prong Harris test examines whether a claim of discrimination is based on a classification involving personal characteristics, whether the alleged discriminatory act at issue serves a legitimate business interest, and the policy considerations.
The attorney general's opinion in this matter is fully set forth on its Web site at http://ag.ca.gov/opinions/published/05-301.pdf. Opinions of the attorney general are not binding law, but they are entitled to great respect by the courts.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - March 06: $561,350 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region March 06:
Santa Barbara So. Coast $1,190,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region March 06:
High Desert $326,710 (Source: C.A.R.)
Mortgage rates - week ending 4/27:
30-yr. fixed: 6.58%; Fees/points: 0.5%
15-yr. fixed: 6.21%; Fees/points: 0.5%
1-yr. adjustable: 5.68%; 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 185,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2006 California Association of REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, March 29, 2006
Brought to you by the California Association of REALTORS® and David Breidenbach, www.BreidyPropertiesInc.com
Brought to you by the California Association of REALTORS® and David Breidenbach, www.BreidyPropertiesInc.com
FED RAISES TARGET FOR FEDERAL FUNDS RATE TO 4.75 PERCENT
CONSUMER CONFIDENCE IMPROVES IN MARCH
C.A.R.-SPONSORED LEGISLATION MOVES FORWARD
REMODELING SPENDING TO REACH ALL-TIME HIGH IN 2006
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FED RAISES TARGET FOR FEDERAL FUNDS RATE TO 4.75 PERCENT
The Federal Reserve's Open Market Committee yesterday raised the target for the federal funds rate by 25 basis points to 4.75 percent, marking the 15th straight increase since June 2004. The federal funds target rate is the interest rate charged by banks when they borrow funds "overnight" from each other.
"As yet, the run-up in the prices of energy and other commodities appears to have had only a modest effect on core inflation, ongoing productivity gains have helped to hold the growth of unit labor costs in check, and inflation expectations remain contained," the Fed said in a prepared statement. "Still, possible increases in resource utilization, in combination with the elevated prices of energy and other commodities, have the potential to add to inflation pressures."
http://federalreserve.gov/boarddocs/press/monetary/2006/20060328/default.htm
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CONSUMER CONFIDENCE IMPROVES IN MARCH
After taking a downward turn in February, consumer confidence improved in March, according to The Conference Board's Consumer Confidence Index. The Index climbed 4.5 points this month and now stands at 107.2 (1985=100), near the four-year high of 110.3, last reached in May 2002. The Present Situation and Expectations Indices also increased in March, rising to 133.3 and 89.9, respectively.
According to The Conference Board's report, the improvements to the three indices reflect a more positive outlook for the economy and the job market in the months ahead. In March, the proportion of people anticipating business conditions to pick up increased to 18 percent, and those expecting more jobs to become available edged up to 13.9 percent. Additionally, the number of consumers expecting their incomes to improve remained unchanged at 18.8 percent.
http://www.conference-board.org/economics/consumerconfidence.cfm
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C.A.R.-SPONSORED LEGISLATION MOVES FORWARD
Two C.A.R.-sponsored bills moved forward in the state Legislature last week. AB 1963 (Leslie), "Real Estate Brokers License," was passed by the Assembly Business and Professions Committee on March 21. The bill seeks to make two years of "general real estate experience" a requirement for those seeking a broker license. Existing law allows the real estate commissioner to grant a broker license to applicants without the two years of real estate experience if they hold a degree from a four-year college or university and specialized in real estate or can demonstrate the equivalent education and experience. C.A.R. is sponsoring AB 1963 to prevent such "degree brokers" without real estate experience from also supervising inexperienced salespeople. Under AB 1963, all applicants must have two years of general real estate experience in addition to passing the broker license exam and holding a valid salespersons license before they are granted a broker license
Also on March 21, C.A.R.-sponsored SB 1177 (Hollingsworth), "Density Bonus," was passed by the Senate Transportation and Housing Committee. In recent years, C.A.R. has sponsored legislation to improve the use of the state's density bonus law and to make the law more easily understood and functional. SB 1177 aims to prohibit local governments from examining the financial records of housing developers seeking a density bonus when they apply for a waiver or reduction in development standards. Requiring developers to open their records to local government in order to prove that a waiver or modification of development standards is necessary gives local governments the opportunity to dictate the developers' profit, as well as the type of appliances, marketing strategies and design styles that should be included in the development. Additionally, because local governments are not financially contributing to the subdivision, they should not have the right to inspect the financial records.
http://www.car.org/index.php?id=MzE3MjA=
CONSUMER CONFIDENCE IMPROVES IN MARCH
After taking a downward turn in February, consumer confidence improved in March, according to The Conference Board's Consumer Confidence Index. The Index climbed 4.5 points this month and now stands at 107.2 (1985=100), near the four-year high of 110.3, last reached in May 2002. The Present Situation and Expectations Indices also increased in March, rising to 133.3 and 89.9, respectively.
According to The Conference Board's report, the improvements to the three indices reflect a more positive outlook for the economy and the job market in the months ahead. In March, the proportion of people anticipating business conditions to pick up increased to 18 percent, and those expecting more jobs to become available edged up to 13.9 percent. Additionally, the number of consumers expecting their incomes to improve remained unchanged at 18.8 percent.
http://www.conference-board.org/economics/consumerconfidence.cfm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R.-SPONSORED LEGISLATION MOVES FORWARD
Two C.A.R.-sponsored bills moved forward in the state Legislature last week. AB 1963 (Leslie), "Real Estate Brokers License," was passed by the Assembly Business and Professions Committee on March 21. The bill seeks to make two years of "general real estate experience" a requirement for those seeking a broker license. Existing law allows the real estate commissioner to grant a broker license to applicants without the two years of real estate experience if they hold a degree from a four-year college or university and specialized in real estate or can demonstrate the equivalent education and experience. C.A.R. is sponsoring AB 1963 to prevent such "degree brokers" without real estate experience from also supervising inexperienced salespeople. Under AB 1963, all applicants must have two years of general real estate experience in addition to passing the broker license exam and holding a valid salespersons license before they are granted a broker license
Also on March 21, C.A.R.-sponsored SB 1177 (Hollingsworth), "Density Bonus," was passed by the Senate Transportation and Housing Committee. In recent years, C.A.R. has sponsored legislation to improve the use of the state's density bonus law and to make the law more easily understood and functional. SB 1177 aims to prohibit local governments from examining the financial records of housing developers seeking a density bonus when they apply for a waiver or reduction in development standards. Requiring developers to open their records to local government in order to prove that a waiver or modification of development standards is necessary gives local governments the opportunity to dictate the developers' profit, as well as the type of appliances, marketing strategies and design styles that should be included in the development. Additionally, because local governments are not financially contributing to the subdivision, they should not have the right to inspect the financial records.
http://www.car.org/index.php?id=MzE3MjA=
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
REMODELING SPENDING TO REACH ALL-TIME HIGH IN 2006
Americans spent $210 billion on remodeling projects last year, an increase of 5.8 percent compared with spending in 2004, according to a recent report by the National Association of Home Builders (NAHB). While remodeling spending surpassed $200 billion for the first time in 2005, NAHB expects spending to climb 13.2 percent this year to an all-time high of $238 billion. The last time remodeling spending doubled the average annual growth rate of 5.3 percent was in 2004, when spending climbed 12.2 percent.
"The devastating 2005 hurricanes, combined with rebound in the rental market, are expected to spur a historically high increase in spending this year as repair work proceeds in the Gulf states and apartment owners renovate properties to maximize rental income," said Vince Butler, chair of the NAHB Remodelors¿ Council.
http://www.nahb.org/news_details.aspx?newsID=2287&print=false
REMODELING SPENDING TO REACH ALL-TIME HIGH IN 2006
Americans spent $210 billion on remodeling projects last year, an increase of 5.8 percent compared with spending in 2004, according to a recent report by the National Association of Home Builders (NAHB). While remodeling spending surpassed $200 billion for the first time in 2005, NAHB expects spending to climb 13.2 percent this year to an all-time high of $238 billion. The last time remodeling spending doubled the average annual growth rate of 5.3 percent was in 2004, when spending climbed 12.2 percent.
"The devastating 2005 hurricanes, combined with rebound in the rental market, are expected to spur a historically high increase in spending this year as repair work proceeds in the Gulf states and apartment owners renovate properties to maximize rental income," said Vince Butler, chair of the NAHB Remodelors¿ Council.
http://www.nahb.org/news_details.aspx?newsID=2287&print=false
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Fast Facts
Calif. median home price - Feb. 06: $535,470 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region Feb. 06:
Santa Barbara So. Coast $1,160,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region Feb. 06:
High Desert $328,690 (Source: C.A.R.)
Mortgage rates - week ending 3/23:
30-yr. fixed: 6.32%; Fees/points: 0.6%
15-yr. fixed: 5.97%; Fees/points: 0.6%
1-yr. adjustable: 5.41%; 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 185,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2006 California Association of REALTORS® (C.A.R.)
Fast Facts
Calif. median home price - Feb. 06: $535,470 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region Feb. 06:
Santa Barbara So. Coast $1,160,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region Feb. 06:
High Desert $328,690 (Source: C.A.R.)
Mortgage rates - week ending 3/23:
30-yr. fixed: 6.32%; Fees/points: 0.6%
15-yr. fixed: 5.97%; Fees/points: 0.6%
1-yr. adjustable: 5.41%; 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 185,000 REALTORS® statewide.
Edited by Mark Giberson, and Amanda Hopkins
Copyright © 2006 California Association of REALTORS® (C.A.R.)
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Wednesday, March 22, 2006
Brought to you by the California Association of REALTORS® and David Breidenbach, www.BreidyPropertiesInc.com
Brought to you by the California Association of REALTORS® and David Breidenbach, www.BreidyPropertiesInc.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
LEADING INDEX SIGNALS ECONOMIC GROWTH IN THE NEAR TERM
C.A.R.-SPONSORED BILLS MOVE THROUGH THE LEGISLATURE
U.S. HOUSING STARTS DECLINE 4.8 PERCENT IN FEBRUARY
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
LEADING INDEX SIGNALS ECONOMIC GROWTH IN THE NEAR TERM
The U.S. leading index, a key barometer of economic conditions, declined 0.2 percent to 139.0 (1996=100) in February after increasing the previous four months, The Conference Board recently reported. Five of the 10 indicators composing the leading index increased last month, including manufacturers' orders for nondefense capital goods, real money supply, average weekly manufacturing hours, manufacturers' orders for consumer goods, and interest rate spread. Despite the decline, the leading index suggests economic growth is "likely to pick up in the near term," according to the report.
The coincident and lagging indices, which reflect current and past economic activity, respectively, increased in February. The coincident index edged up 0.3 percent to 122.1, while the lagging index rose 0.1 percent to 122.6.
http://www.conference-board.org/economics/bci/pressRelease_output.cfm?cid=1
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 185,000 REALTORS® statewide.
LEADING INDEX SIGNALS ECONOMIC GROWTH IN THE NEAR TERM
C.A.R.-SPONSORED BILLS MOVE THROUGH THE LEGISLATURE
U.S. HOUSING STARTS DECLINE 4.8 PERCENT IN FEBRUARY
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LEADING INDEX SIGNALS ECONOMIC GROWTH IN THE NEAR TERM
The U.S. leading index, a key barometer of economic conditions, declined 0.2 percent to 139.0 (1996=100) in February after increasing the previous four months, The Conference Board recently reported. Five of the 10 indicators composing the leading index increased last month, including manufacturers' orders for nondefense capital goods, real money supply, average weekly manufacturing hours, manufacturers' orders for consumer goods, and interest rate spread. Despite the decline, the leading index suggests economic growth is "likely to pick up in the near term," according to the report.
The coincident and lagging indices, which reflect current and past economic activity, respectively, increased in February. The coincident index edged up 0.3 percent to 122.1, while the lagging index rose 0.1 percent to 122.6.
http://www.conference-board.org/economics/bci/pressRelease_output.cfm?cid=1
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Wednesday, March 15, 2006
Brought to you by the California Association of REALTORS® and David Breidenbach, www.BreidyPropertiesInc.com
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HOME PRICE GROWTH SLOWS ACROSS U.S.
BUILDER CONFIDENCE SLIPS IN MARCH
LOAN APPLICATIONS DECREASE
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HOME PRICE GROWTH SLOWS ACROSS U.S.
While home price appreciation slowed across the U.S. during the fourth quarter of 2005, several regions continued to experience double-digit price growth, according to Freddie Mac's Conventional Mortgage Home Price Index (CMHPI). The Mountain states led the nation in annual home price appreciation last quarter, with home values rising 19.4 percent at an annualized rate compared with the third quarter of 2005. The Pacific states, which include Alaska, California, Hawaii, Oregon and Washington, followed with an annualized gain of 18.2 percent. During the last five years, home prices have risen 97.8 percent in the Pacific region, according to the CMHPI.
Brought to you by the California Association of REALTORS® and David Breidenbach, www.BreidyPropertiesInc.com
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HOME PRICE GROWTH SLOWS ACROSS U.S.
BUILDER CONFIDENCE SLIPS IN MARCH
LOAN APPLICATIONS DECREASE
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HOME PRICE GROWTH SLOWS ACROSS U.S.
While home price appreciation slowed across the U.S. during the fourth quarter of 2005, several regions continued to experience double-digit price growth, according to Freddie Mac's Conventional Mortgage Home Price Index (CMHPI). The Mountain states led the nation in annual home price appreciation last quarter, with home values rising 19.4 percent at an annualized rate compared with the third quarter of 2005. The Pacific states, which include Alaska, California, Hawaii, Oregon and Washington, followed with an annualized gain of 18.2 percent. During the last five years, home prices have risen 97.8 percent in the Pacific region, according to the CMHPI.
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Wednesday, March 08, 2006
Brought to you by the California Association of REALTORS® and David Breidenbach, www.BreidyPropertiesInc.com
HOMEOWNERS ANTICIPATE FURTHER HOME PRICE APPRECIATION
CALIFORNIA HOUSING STARTS DROP
C.A.R.-SPONSORED LEGISLATION FOCUSES ON LICENSE REQUIREMENTS
PENDING HOME SALES DECLINE FOR FIFTH CONSECUTIVE MONTH
CONSTRUCTION SPENDING CONTINUES TO RISE
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HOMEOWNERS ANTICIPATE FURTHER HOME PRICE APPRECIATION
Americans believe home prices will continue rising in the coming years, according to a recent "Los Angeles Times"/Bloomberg poll. Nearly 50 percent of respondents believe their home values will increase by 5 to 15 percent in the next three years, while 25 percent expect home prices to rise 16 percent or more over the same period. "I think the 'bubble' talk is hyped," said Diane Harvey of Foster City, Calif., one of the participants in the poll.
Though the majority of respondents showed optimism about future home price growth, the poll revealed some concern about the impact of rising mortgage interest rates on adjustable-rate mortgages. Roughly one in seven respondents have an adjustable-rate mortgage, and more than 25 percent stated they are "not too confident" or "not at all confident" about their ability to make their mortgage payments if adjusted higher.
The "Los Angeles Times"/Bloomberg poll also found that 16 percent of respondents had tapped into their home equity in the last two years. Completing home improvements, paying off other debts, and buying new cars were among the top uses for the cash obtained.
http://www.latimes.com/business/la-fi-poll8mar08,0,1455490.story?page=2&track=tothtml
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CALIFORNIA HOUSING STARTS DROP
New home construction in California declined during the first month of 2006, falling 10.4 percent when compared with the construction pace recorded during January 2005, the California Building Industry Association (CBIA) recently reported. Based on the number of building permits issued, 12,357 new housing units were started throughout the state in January. Single-family units accounted for 73 percent of the starts, down 10.4 percent from the same period one year earlier.
Even with the modest decline, homebuilders are expected to produce between 185,000 and 205,000 housing units in 2006, down slightly from the 208,000 homes, condominiums and apartments constructed in 2005. "Despite the naysayer predictions for 2006, the permit count for the first month of 2006 is only modestly off from January 2005," said CBIA Chief Economist Alan Nevin. "As the first quarter of 2005 was one of the 'hottest' periods in recent memory, it is notable that the statewide permit count is down by around 1,000 single-family units and only 384 multifamily units in the first month of the year."
http://www.cbia.org/index.cfm?pageid=1258&preview=yes
Brought to you by the California Association of REALTORS® and David Breidenbach, www.BreidyPropertiesInc.com
HOMEOWNERS ANTICIPATE FURTHER HOME PRICE APPRECIATION
CALIFORNIA HOUSING STARTS DROP
C.A.R.-SPONSORED LEGISLATION FOCUSES ON LICENSE REQUIREMENTS
PENDING HOME SALES DECLINE FOR FIFTH CONSECUTIVE MONTH
CONSTRUCTION SPENDING CONTINUES TO RISE
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HOMEOWNERS ANTICIPATE FURTHER HOME PRICE APPRECIATION
Americans believe home prices will continue rising in the coming years, according to a recent "Los Angeles Times"/Bloomberg poll. Nearly 50 percent of respondents believe their home values will increase by 5 to 15 percent in the next three years, while 25 percent expect home prices to rise 16 percent or more over the same period. "I think the 'bubble' talk is hyped," said Diane Harvey of Foster City, Calif., one of the participants in the poll.
Though the majority of respondents showed optimism about future home price growth, the poll revealed some concern about the impact of rising mortgage interest rates on adjustable-rate mortgages. Roughly one in seven respondents have an adjustable-rate mortgage, and more than 25 percent stated they are "not too confident" or "not at all confident" about their ability to make their mortgage payments if adjusted higher.
The "Los Angeles Times"/Bloomberg poll also found that 16 percent of respondents had tapped into their home equity in the last two years. Completing home improvements, paying off other debts, and buying new cars were among the top uses for the cash obtained.
http://www.latimes.com/business/la-fi-poll8mar08,0,1455490.story?page=2&track=tothtml
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CALIFORNIA HOUSING STARTS DROP
New home construction in California declined during the first month of 2006, falling 10.4 percent when compared with the construction pace recorded during January 2005, the California Building Industry Association (CBIA) recently reported. Based on the number of building permits issued, 12,357 new housing units were started throughout the state in January. Single-family units accounted for 73 percent of the starts, down 10.4 percent from the same period one year earlier.
Even with the modest decline, homebuilders are expected to produce between 185,000 and 205,000 housing units in 2006, down slightly from the 208,000 homes, condominiums and apartments constructed in 2005. "Despite the naysayer predictions for 2006, the permit count for the first month of 2006 is only modestly off from January 2005," said CBIA Chief Economist Alan Nevin. "As the first quarter of 2005 was one of the 'hottest' periods in recent memory, it is notable that the statewide permit count is down by around 1,000 single-family units and only 384 multifamily units in the first month of the year."
http://www.cbia.org/index.cfm?pageid=1258&preview=yes
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C.A.R.-SPONSORED LEGISLATION FOCUSES ON LICENSE REQUIREMENTS
Two of the eight bills C.A.R. is sponsoring in 2006 focus on the experience required to obtain a real estate license. AB 1963 (Leslie), "Real Estate Brokers License," seeks to make two years of "general real estate experience" a requirement for those seeking a broker license. Existing law allows the real estate commissioner to grant a broker license to applicants without the two years of real estate experience if they hold a degree from a four-year college or university and specialized in real estate or can demonstrate the equivalent education and experience. C.A.R. is sponsoring AB 1963 to prevent such "degree brokers" without real estate experience from also supervising inexperienced salespeople. Under AB 1963, all applicants must have two years of general real estate experience in addition to passing the broker license exam and holding a valid salespersons license before they are granted a broker license.
C.A.R. also is sponsoring AB 2429 (Matthews/Negrete McLeod), "Real Estate Salesperson Licensure." Existing law allows an applicant for a real estate salesperson license to receive a "conditional license" whereby the applicant can sell real property if they have passed the license exam but only completed one of three required real estate courses. AB 2429 would require all salesperson applicants after Dec. 31, 2009, to completed all three of the pre-license courses prior to receiving a license.
http://www.car.org/index.php?id=NTgx
C.A.R.-SPONSORED LEGISLATION FOCUSES ON LICENSE REQUIREMENTS
Two of the eight bills C.A.R. is sponsoring in 2006 focus on the experience required to obtain a real estate license. AB 1963 (Leslie), "Real Estate Brokers License," seeks to make two years of "general real estate experience" a requirement for those seeking a broker license. Existing law allows the real estate commissioner to grant a broker license to applicants without the two years of real estate experience if they hold a degree from a four-year college or university and specialized in real estate or can demonstrate the equivalent education and experience. C.A.R. is sponsoring AB 1963 to prevent such "degree brokers" without real estate experience from also supervising inexperienced salespeople. Under AB 1963, all applicants must have two years of general real estate experience in addition to passing the broker license exam and holding a valid salespersons license before they are granted a broker license.
C.A.R. also is sponsoring AB 2429 (Matthews/Negrete McLeod), "Real Estate Salesperson Licensure." Existing law allows an applicant for a real estate salesperson license to receive a "conditional license" whereby the applicant can sell real property if they have passed the license exam but only completed one of three required real estate courses. AB 2429 would require all salesperson applicants after Dec. 31, 2009, to completed all three of the pre-license courses prior to receiving a license.
http://www.car.org/index.php?id=NTgx
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PENDING HOME SALES DECLINE FOR FIFTH CONSECUTIVE MONTH
The Pending Home Sales Index (PHSI) continued to decline in January, falling for the fifth consecutive month, according to a recent report by NAR. Based on the number of transactions that have signed contracts but are not yet closed, the PHSI gauges home sales activity for upcoming months, as sales typically close within one or two months of contract signing. In January, the PHSI edged down 4.8 percent to 116.3 from the 122.1 reading in January 2005. An index of 100 or more generally indicates a high level of home sales activity.
"This looks like we're touching down for the soft landing we've been expecting," said NAR Chief Economist David Lereah. "We are at a much more sustainable level of home sales now -- a welcome cooling from the super-heated conditions that were driving exceptional price gains."
Regionally, the PHSI was highest in the South, where it increased 2 percent from one year earlier to 128.6. In the West, the PHSI fell 13.6 percent to 115.8. The Midwest and Northeast regions also experienced annual declines, falling to 114.3 and 94.8, respectively.
http://www.realtor.org/PublicAffairsWeb.nsf/Pages/JanPHS06?OpenDocument
PENDING HOME SALES DECLINE FOR FIFTH CONSECUTIVE MONTH
The Pending Home Sales Index (PHSI) continued to decline in January, falling for the fifth consecutive month, according to a recent report by NAR. Based on the number of transactions that have signed contracts but are not yet closed, the PHSI gauges home sales activity for upcoming months, as sales typically close within one or two months of contract signing. In January, the PHSI edged down 4.8 percent to 116.3 from the 122.1 reading in January 2005. An index of 100 or more generally indicates a high level of home sales activity.
"This looks like we're touching down for the soft landing we've been expecting," said NAR Chief Economist David Lereah. "We are at a much more sustainable level of home sales now -- a welcome cooling from the super-heated conditions that were driving exceptional price gains."
Regionally, the PHSI was highest in the South, where it increased 2 percent from one year earlier to 128.6. In the West, the PHSI fell 13.6 percent to 115.8. The Midwest and Northeast regions also experienced annual declines, falling to 114.3 and 94.8, respectively.
http://www.realtor.org/PublicAffairsWeb.nsf/Pages/JanPHS06?OpenDocument
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CONSTRUCTION SPENDING CONTINUES TO RISE
The annual pace of construction spending topped $1 trillion for the 19th consecutive month in January 2006, rising 7.4 percent to a seasonally adjusted annual rate of $1.163 trillion, according to a recent report by the U.S. Census Bureau. The rate remained nearly unchanged from one month earlier, rising 0.2 percent above the revised December pace of $1.161 trillion.
Spending on residential construction in January 2006 increased 6.5 percent over the previous year to reach a rate of $656.8 billion. The value of nonresidential construction put into place in January rose 8.5 percent to a rate of $506.6 billion, according to the report.
More infotop
http://www.census.gov/const/C30/release.pdf
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CONSTRUCTION SPENDING CONTINUES TO RISE
The annual pace of construction spending topped $1 trillion for the 19th consecutive month in January 2006, rising 7.4 percent to a seasonally adjusted annual rate of $1.163 trillion, according to a recent report by the U.S. Census Bureau. The rate remained nearly unchanged from one month earlier, rising 0.2 percent above the revised December pace of $1.161 trillion.
Spending on residential construction in January 2006 increased 6.5 percent over the previous year to reach a rate of $656.8 billion. The value of nonresidential construction put into place in January rose 8.5 percent to a rate of $506.6 billion, according to the report.
More infotop
http://www.census.gov/const/C30/release.pdf
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Fast Facts
Calif. median home price - Jan. 06: $551,300 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region Jan. 06:
Santa Barbara So. Coast $1,120,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region Jan. 06:
High Desert $321,500 (Source: C.A.R.)
Mortgage rates - week ending 3/2:
30-yr. fixed: 6.24%; Fees/points: 0.6%
15-yr. fixed: 5.89%; Fees/points: 0.6%
1-yr. adjustable: 5.34%; Fees/points: 0.8%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 185,000 REALTORS® statewide.
Edited by Mark Giberson, markg@car.org
Copyright © 2006 California Association of REALTORS® (C.A.R.)
Calif. median home price - Jan. 06: $551,300 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region Jan. 06:
Santa Barbara So. Coast $1,120,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region Jan. 06:
High Desert $321,500 (Source: C.A.R.)
Mortgage rates - week ending 3/2:
30-yr. fixed: 6.24%; Fees/points: 0.6%
15-yr. fixed: 5.89%; Fees/points: 0.6%
1-yr. adjustable: 5.34%; Fees/points: 0.8%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 185,000 REALTORS® statewide.
Edited by Mark Giberson, markg@car.org
Copyright © 2006 California Association of REALTORS® (C.A.R.)
Nationally, home values rose 13 percent over the last 12 months. According to the report, job growth helped spur price appreciation in the regions with the largest home price increases. Most states in the Southwest and Midwest experienced single-digit year-over-year price appreciation during the fourth quarter of 2005.
http://www.freddiemac.com/news/archives/rates/2006/4qhpi05.html
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BUILDER CONFIDENCE SLIPS IN MARCH
The confidence level of the nation's homebuilders remained within a two-point range for the fourth consecutive month in March, a sign that the housing market is stabilizing, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The seasonally adjusted HMI stands at 55 this month, down one point from February's revised reading of 56. An HMI above 50 indicates that more builders view sales conditions as good versus poor.
http://www.freddiemac.com/news/archives/rates/2006/4qhpi05.html
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BUILDER CONFIDENCE SLIPS IN MARCH
The confidence level of the nation's homebuilders remained within a two-point range for the fourth consecutive month in March, a sign that the housing market is stabilizing, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The seasonally adjusted HMI stands at 55 this month, down one point from February's revised reading of 56. An HMI above 50 indicates that more builders view sales conditions as good versus poor.
All three HMI components declined in March. The components measuring current single-family sales and buyer traffic both decreased by one point to 60 and 39, respectively, while the component gauging future sales edged down two points to 62. Regionally, home builders in the West remain the most confident, with an overall seasonally adjusted HMI of 67.
http://www.nahb.org/news_details.aspx?newsID=2202&print=false
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LOAN APPLICATIONS DECREASE
The Market Composite Index, a measure of mortgage loan application volume, was 574.4 for the week ending March 10, down 0.2 percent on a seasonally adjusted basis from 575.6 one week earlier, The Mortgage Bankers Association reported today. On an unadjusted basis, the index increased 0.2 percent for the week ending March 10 compared with the previous week and was down 20.4 percent compared with the same week one year earlier.
http://www.nahb.org/news_details.aspx?newsID=2202&print=false
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LOAN APPLICATIONS DECREASE
The Market Composite Index, a measure of mortgage loan application volume, was 574.4 for the week ending March 10, down 0.2 percent on a seasonally adjusted basis from 575.6 one week earlier, The Mortgage Bankers Association reported today. On an unadjusted basis, the index increased 0.2 percent for the week ending March 10 compared with the previous week and was down 20.4 percent compared with the same week one year earlier.
The refinance share of mortgage activity decreased to 37.7 percent of total applications for the week ending March 10 from 38.5 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 28.8 percent of total applications from 27.9 percent the previous week.
http://www.mortgagebankers.org/NewsandMedia/PressCenter/40185.htm
http://www.mortgagebankers.org/NewsandMedia/PressCenter/40185.htm
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Fast Facts
Calif. median home price - Jan. 06: $551,300 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region Jan. 06:
Santa Barbara So. Coast $1,120,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region Jan. 06:
High Desert $321,500 (Source: C.A.R.)
Mortgage rates - week ending 3/9:
30-yr. fixed: 6.37%; Fees/points: 0.6%
15-yr. fixed: 6.00%; Fees/points: 0.6%
1-yr. adjustable: 5.45%; Fees/points: 0.8%
(Source: Freddie Mac)
Fast Facts
Calif. median home price - Jan. 06: $551,300 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region Jan. 06:
Santa Barbara So. Coast $1,120,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region Jan. 06:
High Desert $321,500 (Source: C.A.R.)
Mortgage rates - week ending 3/9:
30-yr. fixed: 6.37%; Fees/points: 0.6%
15-yr. fixed: 6.00%; Fees/points: 0.6%
1-yr. adjustable: 5.45%; Fees/points: 0.8%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 185,000 REALTORS® statewide.
Edited by Mark Giberson, markg@car.org
Copyright © 2006 California Association of REALTORS® (C.A.R.)
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C.A.R.-SPONSORED BILLS MOVE THROUGH THE LEGISLATURE
Two bills sponsored by C.A.R. are scheduled to be heard on the Senate or Assembly floors this week. AB 1963 (Leslie), "Real Estate Brokers License," which will be heard by the Assembly Business and Professions Committee, seeks to make two years of "general real estate experience" a requirement for those seeking a broker license. Existing law allows the real estate commissioner to grant a broker license to applicants without the two years of real estate experience if they hold a degree from a four-year college or university and specialized in real estate or can demonstrate the equivalent education and experience. C.A.R. is sponsoring AB 1963 to prevent such "degree brokers" without real estate experience from also supervising inexperienced salespeople. Under AB 1963, all applicants must have two years of general real estate experience in addition to passing the broker license exam and holding a valid salespersons license before they are granted a broker license.
Also this week, C.A.R.-sponsored SB 1177 (Hollingsworth), "Density Bonus," is scheduled to be heard by the Senate Transportation and Housing Committee. In recent years, C.A.R. has sponsored legislation to improve the use of the state's density bonus law and to make the law more easily understood and functional. SB 1177 aims to prohibit local governments from examining the financial records of housing developers seeking a density bonus when they apply for a waiver or reduction in development standards. Requiring developers to open their records to local government in order to prove that a waiver or modification of development standards is necessary gives local governments the opportunity to dictate the developers' profit, as well as the type of appliances, marketing strategies and design styles that should be included in the development. Additionally, because local governments are not financially contributing to the subdivision, they should not have the right to inspect the financial records.
http://www.car.org/index.php?id=MzE3MjA=
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U.S. HOUSING STARTS DECLINE 4.8 PERCENT IN FEBRUARY
The seasonally adjusted annual rate for privately owned housing starts declined to 2.12 million units in February, according to a report released by the U.S. Dept. of Commerce. The February construction pace was down 4.8 percent from a year ago. Single-family housing starts decreased 0.4 percent from February 2005, to a rate of 1.8 million units, while starts for buildings with five or more units fell 25.3 percent to 275,000. The number of building permits issued, which can be an indicator of future building activity, edged up last month, climbing 2.5 percent from one year earlier to a seasonally adjusted annual rate of 2.15 million permits.
Regionally, the South posted the largest increase in housing starts at 2.3 percent, followed by a 0.2 percent increase in the West. The rate for privately owned housing starts declined 12.1 percent in the Northeast and fell by 24.7 percent in the Midwest.
http://www.census.gov/const/newresconst_200602.pdf
C.A.R.-SPONSORED BILLS MOVE THROUGH THE LEGISLATURE
Two bills sponsored by C.A.R. are scheduled to be heard on the Senate or Assembly floors this week. AB 1963 (Leslie), "Real Estate Brokers License," which will be heard by the Assembly Business and Professions Committee, seeks to make two years of "general real estate experience" a requirement for those seeking a broker license. Existing law allows the real estate commissioner to grant a broker license to applicants without the two years of real estate experience if they hold a degree from a four-year college or university and specialized in real estate or can demonstrate the equivalent education and experience. C.A.R. is sponsoring AB 1963 to prevent such "degree brokers" without real estate experience from also supervising inexperienced salespeople. Under AB 1963, all applicants must have two years of general real estate experience in addition to passing the broker license exam and holding a valid salespersons license before they are granted a broker license.
Also this week, C.A.R.-sponsored SB 1177 (Hollingsworth), "Density Bonus," is scheduled to be heard by the Senate Transportation and Housing Committee. In recent years, C.A.R. has sponsored legislation to improve the use of the state's density bonus law and to make the law more easily understood and functional. SB 1177 aims to prohibit local governments from examining the financial records of housing developers seeking a density bonus when they apply for a waiver or reduction in development standards. Requiring developers to open their records to local government in order to prove that a waiver or modification of development standards is necessary gives local governments the opportunity to dictate the developers' profit, as well as the type of appliances, marketing strategies and design styles that should be included in the development. Additionally, because local governments are not financially contributing to the subdivision, they should not have the right to inspect the financial records.
http://www.car.org/index.php?id=MzE3MjA=
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
U.S. HOUSING STARTS DECLINE 4.8 PERCENT IN FEBRUARY
The seasonally adjusted annual rate for privately owned housing starts declined to 2.12 million units in February, according to a report released by the U.S. Dept. of Commerce. The February construction pace was down 4.8 percent from a year ago. Single-family housing starts decreased 0.4 percent from February 2005, to a rate of 1.8 million units, while starts for buildings with five or more units fell 25.3 percent to 275,000. The number of building permits issued, which can be an indicator of future building activity, edged up last month, climbing 2.5 percent from one year earlier to a seasonally adjusted annual rate of 2.15 million permits.
Regionally, the South posted the largest increase in housing starts at 2.3 percent, followed by a 0.2 percent increase in the West. The rate for privately owned housing starts declined 12.1 percent in the Northeast and fell by 24.7 percent in the Midwest.
http://www.census.gov/const/newresconst_200602.pdf
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Fast Facts
Calif. median home price - Jan. 06: $551,300 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region Jan. 06:
Santa Barbara So. Coast $1,120,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region Jan. 06:
High Desert $321,500 (Source: C.A.R.)
Mortgage rates - week ending 3/16:
30-yr. fixed: 6.34%; Fees/points: 0.7%
15-yr. fixed: 5.98%; Fees/points: 0.7%
1-yr. adjustable: 5.37%; Fees/points: 0.8%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 185,000 REALTORS® statewide.
Edited by Mark Giberson
Fast Facts
Calif. median home price - Jan. 06: $551,300 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region Jan. 06:
Santa Barbara So. Coast $1,120,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region Jan. 06:
High Desert $321,500 (Source: C.A.R.)
Mortgage rates - week ending 3/16:
30-yr. fixed: 6.34%; Fees/points: 0.7%
15-yr. fixed: 5.98%; Fees/points: 0.7%
1-yr. adjustable: 5.37%; Fees/points: 0.8%
(Source: Freddie Mac)
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 185,000 REALTORS® statewide.
Edited by Mark Giberson
Copyright © 2006 California Association of REALTORS® (C.A.R.)
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Wednesday, February 22, 2006
Brought to you by the California Association of REALTORS® and David Breidenbach, 619-888-3322, www.BreidyPropertiesInc.com
Brought to you by the California Association of REALTORS® and David Breidenbach, 619-888-3322, www.BreidyPropertiesInc.com
U.S. HOUSING STARTS UP 4 PERCENT IN JANUARY
FEDERAL LEGISLATIVE SUCCESSES IN 2005, PRIORITIES FOR 2006
LEADING INDEX SIGNALS ECONOMIC GROWTH IN THE NEAR TERM
AMERICANS INCREASINGLY USE WEB TO HANG OUT
REMODELING ACTIVITY SLOWS
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U.S. HOUSING STARTS UP 4 PERCENT IN JANUARY
Following a decline in December 2005, the seasonally adjusted annual rate for privately owned housing starts rose to 2.28 million units in January, according to a report released by the U.S. Dept. of Commerce. The January construction pace was up 4 percent from a year ago. Single-family housing starts increased 2.8 percent from January 2005, to a rate of 1.82 million units, while starts for buildings with five or more units increased 15.1 percent to 427,000. The number of building permits issued, which can be an indicator of future building activity, also edged up last month, climbing 3.8 percent from one year earlier to a seasonally adjusted annual rate of 2.22 million permits.
Regionally, the Northeast posted the largest increase in housing starts at 32.3 percent, followed by an 11.7 percent increase in the Midwest. The rate for privately owned housing starts rose 3.4 percent in the South and fell by 7.8 percent in the West.
http://www.census.gov/const/newresconst_200601.pdf
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Wednesday, February 15, 2006
Brought to you by the California Association of REALTORS® and David Breidenbach, 619-888-3322, www.BreidyPropertiesInc.com
HOMEBUILDER CONFIDENCE HOLDS STEADY
CALIFORNIA FORECLOSURE ACTIVITY RISES
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HOMEBUILDER CONFIDENCE HOLDS STEADY
The confidence level of the nation's homebuilders remains unchanged for the third consecutive month in February, a sign that the housing market is stabilizing, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). While the HMI declined significantly in the last few months of 2005, it has held steady at 57 since December. An HMI above 50 indicates that more builders view sales conditions as good versus poor.
This month, the HMI component measuring current single-family home sales held firm at 62. The remaining two components of the index, future sales expectations and buyer traffic, each edged down by one point to 65 and 40, respectively. Regionally, builder confidence rebounded in the West, climbing nine points to 74.
http://www.nahb.org/news_details.aspx?newsID=2052
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CALIFORNIA FORECLOSURE ACTIVITY RISES
The number of mortgage default notices sent to California homeowners increased during the fourth quarter of 2005, rising 19 percent from third quarter, according to a recent report by DataQuick Information Systems. Lending institutions sent default notices to nearly 15,000 homeowners between Oct. 1 and Dec. 31, up 15.6 percent when compared with the 12,978 default notices sent during the same period one year earlier.
Declining home appreciation rates impacted the rise in default activity during the fourth 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 Marin County and most likely in the Central Valley and Inland Empire.
http://www.dqnews.com/RRFor0206.shtm
Brought to you by the California Association of REALTORS® and David Breidenbach, 619-888-3322, www.BreidyPropertiesInc.com
HOMEBUILDER CONFIDENCE HOLDS STEADY
CALIFORNIA FORECLOSURE ACTIVITY RISES
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HOMEBUILDER CONFIDENCE HOLDS STEADY
The confidence level of the nation's homebuilders remains unchanged for the third consecutive month in February, a sign that the housing market is stabilizing, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). While the HMI declined significantly in the last few months of 2005, it has held steady at 57 since December. An HMI above 50 indicates that more builders view sales conditions as good versus poor.
This month, the HMI component measuring current single-family home sales held firm at 62. The remaining two components of the index, future sales expectations and buyer traffic, each edged down by one point to 65 and 40, respectively. Regionally, builder confidence rebounded in the West, climbing nine points to 74.
http://www.nahb.org/news_details.aspx?newsID=2052
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CALIFORNIA FORECLOSURE ACTIVITY RISES
The number of mortgage default notices sent to California homeowners increased during the fourth quarter of 2005, rising 19 percent from third quarter, according to a recent report by DataQuick Information Systems. Lending institutions sent default notices to nearly 15,000 homeowners between Oct. 1 and Dec. 31, up 15.6 percent when compared with the 12,978 default notices sent during the same period one year earlier.
Declining home appreciation rates impacted the rise in default activity during the fourth 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 Marin County and most likely in the Central Valley and Inland Empire.
http://www.dqnews.com/RRFor0206.shtm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - Dec. 05: $548,430 (Source: C.A.R.)
Calif. affordability index - Dec. 05: 14 percent (Source: C.A.R.)
Calif. highest median home price by C.A.R. region Dec. 05:
Santa Barbara So. Coast $1,300,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region Dec. 05:
High Desert $320,490 (Source: C.A.R.)
Mortgage rates - week ending 2/9:
30-yr. fixed: 6.24%; Fees/points: 0.6%
15-yr. fixed: 5.83%; Fees/points: 0.6%
1-yr. adjustable: 5.34%; 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 185,000 REALTORS® statewide.
Edited by Mark Giberson
Calif. median home price - Dec. 05: $548,430 (Source: C.A.R.)
Calif. affordability index - Dec. 05: 14 percent (Source: C.A.R.)
Calif. highest median home price by C.A.R. region Dec. 05:
Santa Barbara So. Coast $1,300,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region Dec. 05:
High Desert $320,490 (Source: C.A.R.)
Mortgage rates - week ending 2/9:
30-yr. fixed: 6.24%; Fees/points: 0.6%
15-yr. fixed: 5.83%; Fees/points: 0.6%
1-yr. adjustable: 5.34%; 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 185,000 REALTORS® statewide.
Edited by Mark Giberson
Copyright © 2006 California Association of REALTORS® (C.A.R.)
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Wednesday, February 08, 2006
Brought to you by the California Association of REALTORS® and David Breidenbach, 619-888-3322, www.BreidyPropertiesInc.com
AMERICANS USE THE INTERNET TO STRENGTHEN SOCIAL TIES
C.A.R. SCHOLARSHIP FOUNDATION AWARDS 13 SCHOLARSHIPS
TOTAL CONSTRUCTION SPENDING EXCEEDS $1 TRILLION IN 2005
MORTGAGE LOAN APPLICATION VOLUME DECLINES
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AMERICANS USE THE INTERNET TO STRENGTHEN SOCIAL TIES
E-mail and the Internet help Americans maintain larger, more dispersed social networks that are used for support with life's major decisions, according to "The Strength of Internet Ties," a recent report by the Pew Internet & American Life Project. Forty-five percent of Internet users, or nearly 60 million people, say the Internet played a key role in their decisions over the last two years. Some of the issues for which Americans sought help by using the Internet include: finding a new place to live, dealing with health concerns, changing careers and making major financial investments.
According to the report, e-mail and the Internet complement other modes of communication, including face-to-face and phone interactions, and Internet users are more likely than non-users to have received help from dispersed social networks as they make important life decisions. "Internet use provides online Americans a path to resources, such as access to people who may have the right information to help deal with family health crises or find a new job," says John Horrigan, associate director for research at the Pew Internet Project and co-author of the report. "When you need help these days, you don't need a bugle to call the cavalry, you need a big buddy list."
http://www.pewinternet.org/PPF/r/121/press_release.asp
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C.A.R. SCHOLARSHIP FOUNDATION AWARDS 13 SCHOLARSHIPS
The C.A.R. Scholarship Foundation recently awarded 13 scholarships to college students planning careers in real estate. The scholarships were awarded in January at the Association's board of directors meetings in Anaheim. 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.
"The C.A.R. Scholarship Foundation is just one way REALTORS® reach out to future professionals in the real estate industry," said C.A.R. President Vince Malta. "These students have demonstrated a commitment to careers in real estate, and the scholarships assist them as they continue the training required to effectively meet the needs of homeowners in California."
http://www.car.org/index.php?id=MzU5MjY=
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
TOTAL CONSTRUCTION SPENDING EXCEEDS $1 TRILLION IN 2005
The annual pace of construction spending topped $1 trillion for the 18th consecutive month in December 2005, rising 8.1 percent to a seasonally adjusted annual rate of $1.16 trillion, according to a recent report by the U.S. Census Bureau. During 2005, construction spending totaled $1.12 trillion, an 8.9 percent increase over the $1.03 billion spent in 2004.
Total spending on residential construction last year increased 11 percent over spending in 2004 to reach $632.6 billion. The value of nonresidential construction put into place in 2005 rose 6.4 percent to $487.1 billion, according to the report.
http://www.census.gov/const/C30/release.pdf
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MORTGAGE LOAN APPLICATION VOLUME DECLINES
The Market Composite Index, a measure of mortgage loan application volume, was 619.3 for the week ending Feb. 3, down 1.2 percent on a seasonally adjusted basis from 626.8 one week earlier, The Mortgage Bankers Association reported today. On an unadjusted basis, the index increased 2.2 percent for the week ending Feb. 3 compared with the previous week and was down 16.4 percent compared with the same week one year earlier.
The refinance share of mortgage activity decreased to 42.1 percent of total applications for the week ending Feb. 3 from 43 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 29.8 percent of total applications from 30.5 percent the previous week.
http://www.mbaa.org/NewsandMedia/PressCenter/38402.htm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - Dec. 05: $548,430 (Source: C.A.R.)
Calif. affordability index - Nov. 05: 14 percent (Source: C.A.R.)
Calif. highest median home price by C.A.R. region Dec. 05:
Santa Barbara So. Coast $1,300,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region Dec. 05:
High Desert $320,490 (Source: C.A.R.)
Mortgage rates - week ending 2/2:
30-yr. fixed: 6.23%; Fees/points: 0.5%
15-yr. fixed: 5.81%; Fees/points: 0.5%
1-yr. adjustable: 5.33%; 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 185,000 REALTORS® statewide.
Edited by Mark Giberson, Copyright © 2006 California Association of REALTORS® (C.A.R.)
Wednesday, February 08, 2006
Brought to you by the California Association of REALTORS® and David Breidenbach, 619-888-3322, www.BreidyPropertiesInc.com
AMERICANS USE THE INTERNET TO STRENGTHEN SOCIAL TIES
C.A.R. SCHOLARSHIP FOUNDATION AWARDS 13 SCHOLARSHIPS
TOTAL CONSTRUCTION SPENDING EXCEEDS $1 TRILLION IN 2005
MORTGAGE LOAN APPLICATION VOLUME DECLINES
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
AMERICANS USE THE INTERNET TO STRENGTHEN SOCIAL TIES
E-mail and the Internet help Americans maintain larger, more dispersed social networks that are used for support with life's major decisions, according to "The Strength of Internet Ties," a recent report by the Pew Internet & American Life Project. Forty-five percent of Internet users, or nearly 60 million people, say the Internet played a key role in their decisions over the last two years. Some of the issues for which Americans sought help by using the Internet include: finding a new place to live, dealing with health concerns, changing careers and making major financial investments.
According to the report, e-mail and the Internet complement other modes of communication, including face-to-face and phone interactions, and Internet users are more likely than non-users to have received help from dispersed social networks as they make important life decisions. "Internet use provides online Americans a path to resources, such as access to people who may have the right information to help deal with family health crises or find a new job," says John Horrigan, associate director for research at the Pew Internet Project and co-author of the report. "When you need help these days, you don't need a bugle to call the cavalry, you need a big buddy list."
http://www.pewinternet.org/PPF/r/121/press_release.asp
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. SCHOLARSHIP FOUNDATION AWARDS 13 SCHOLARSHIPS
The C.A.R. Scholarship Foundation recently awarded 13 scholarships to college students planning careers in real estate. The scholarships were awarded in January at the Association's board of directors meetings in Anaheim. 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.
"The C.A.R. Scholarship Foundation is just one way REALTORS® reach out to future professionals in the real estate industry," said C.A.R. President Vince Malta. "These students have demonstrated a commitment to careers in real estate, and the scholarships assist them as they continue the training required to effectively meet the needs of homeowners in California."
http://www.car.org/index.php?id=MzU5MjY=
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
TOTAL CONSTRUCTION SPENDING EXCEEDS $1 TRILLION IN 2005
The annual pace of construction spending topped $1 trillion for the 18th consecutive month in December 2005, rising 8.1 percent to a seasonally adjusted annual rate of $1.16 trillion, according to a recent report by the U.S. Census Bureau. During 2005, construction spending totaled $1.12 trillion, an 8.9 percent increase over the $1.03 billion spent in 2004.
Total spending on residential construction last year increased 11 percent over spending in 2004 to reach $632.6 billion. The value of nonresidential construction put into place in 2005 rose 6.4 percent to $487.1 billion, according to the report.
http://www.census.gov/const/C30/release.pdf
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
MORTGAGE LOAN APPLICATION VOLUME DECLINES
The Market Composite Index, a measure of mortgage loan application volume, was 619.3 for the week ending Feb. 3, down 1.2 percent on a seasonally adjusted basis from 626.8 one week earlier, The Mortgage Bankers Association reported today. On an unadjusted basis, the index increased 2.2 percent for the week ending Feb. 3 compared with the previous week and was down 16.4 percent compared with the same week one year earlier.
The refinance share of mortgage activity decreased to 42.1 percent of total applications for the week ending Feb. 3 from 43 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 29.8 percent of total applications from 30.5 percent the previous week.
http://www.mbaa.org/NewsandMedia/PressCenter/38402.htm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - Dec. 05: $548,430 (Source: C.A.R.)
Calif. affordability index - Nov. 05: 14 percent (Source: C.A.R.)
Calif. highest median home price by C.A.R. region Dec. 05:
Santa Barbara So. Coast $1,300,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region Dec. 05:
High Desert $320,490 (Source: C.A.R.)
Mortgage rates - week ending 2/2:
30-yr. fixed: 6.23%; Fees/points: 0.5%
15-yr. fixed: 5.81%; Fees/points: 0.5%
1-yr. adjustable: 5.33%; 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 185,000 REALTORS® statewide.
Edited by Mark Giberson, Copyright © 2006 California Association of REALTORS® (C.A.R.)
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Wednesday, February 01, 2006
Brought to you by the California Association of REALTORS® and David Breidenbach, 619-888-3322, www.BreidyPropertiesInc.com
FED RAISES TARGET FOR FEDERAL FUNDS RATE TO 4.5 PERCENT
CONSUMER CONFIDENCE CONTINUES UPWARD TREND
BROKERS RESPONSIBLE FOR 1099 REPORTING
PENDING HOME SALES DECLINE FOR FOURTH CONSECUTIVE MONTH
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FED RAISES TARGET FOR FEDERAL FUNDS RATE TO 4.5 PERCENT
The Federal Reserve's Open Market Committee raised the target for the federal funds rate by 25 basis points to 4.5 percent this week, marking the 14th straight increase since June 2004. The federal funds target rate is the interest rate charged by banks when they borrow funds "overnight" from each other.
"Although recent economic data have been uneven, the expansion in economic activity appears solid," the Fed said in a prepared statement. "Core inflation has stayed relatively low in recent months and longer-term inflation expectations remain contained. Nevertheless, possible increases in resource utilization as well as elevated energy prices have the potential to add to inflation pressures."
http://www.federalreserve.gov/boarddocs/press/monetary/2006/20060131/default.htm
Wednesday, February 01, 2006
Brought to you by the California Association of REALTORS® and David Breidenbach, 619-888-3322, www.BreidyPropertiesInc.com
FED RAISES TARGET FOR FEDERAL FUNDS RATE TO 4.5 PERCENT
CONSUMER CONFIDENCE CONTINUES UPWARD TREND
BROKERS RESPONSIBLE FOR 1099 REPORTING
PENDING HOME SALES DECLINE FOR FOURTH CONSECUTIVE MONTH
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
FED RAISES TARGET FOR FEDERAL FUNDS RATE TO 4.5 PERCENT
The Federal Reserve's Open Market Committee raised the target for the federal funds rate by 25 basis points to 4.5 percent this week, marking the 14th straight increase since June 2004. The federal funds target rate is the interest rate charged by banks when they borrow funds "overnight" from each other.
"Although recent economic data have been uneven, the expansion in economic activity appears solid," the Fed said in a prepared statement. "Core inflation has stayed relatively low in recent months and longer-term inflation expectations remain contained. Nevertheless, possible increases in resource utilization as well as elevated energy prices have the potential to add to inflation pressures."
http://www.federalreserve.gov/boarddocs/press/monetary/2006/20060131/default.htm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CONSUMER CONFIDENCE CONTINUES UPWARD TREND
Consumer confidence continued to rebound in January and is now at its highest level since June 2002, according to The Conference Board's Consumer Confidence Index. The Index rose 2.5 points last month and now stands at 106.3 (1985=100). The Present Situation Index also increased, climbing to 128.4 from 120.7, while the Expectations Index declined to 91.5 from December's reading of 92.6.
A more positive view of the job market continues to boost consumers' confidence, though there is a disparity between consumers' assessment of current conditions and their expectations for the future, according to The Conference Board's report. While the proportion of consumers claiming jobs are "plentiful" increased in January, their outlook for the labor market in the coming months was less optimistic. Fewer consumers expect their incomes to increase in the near-term future, and the percentage of consumers who anticipate more jobs to become available declined to 13.6 percent.
http://www.federalreserve.gov/boarddocs/press/monetary/2006/20060131/default.htm
CONSUMER CONFIDENCE CONTINUES UPWARD TREND
Consumer confidence continued to rebound in January and is now at its highest level since June 2002, according to The Conference Board's Consumer Confidence Index. The Index rose 2.5 points last month and now stands at 106.3 (1985=100). The Present Situation Index also increased, climbing to 128.4 from 120.7, while the Expectations Index declined to 91.5 from December's reading of 92.6.
A more positive view of the job market continues to boost consumers' confidence, though there is a disparity between consumers' assessment of current conditions and their expectations for the future, according to The Conference Board's report. While the proportion of consumers claiming jobs are "plentiful" increased in January, their outlook for the labor market in the coming months was less optimistic. Fewer consumers expect their incomes to increase in the near-term future, and the percentage of consumers who anticipate more jobs to become available declined to 13.6 percent.
http://www.federalreserve.gov/boarddocs/press/monetary/2006/20060131/default.htm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
PENDING HOME SALES DECLINE FOR FOURTH CONSECUTIVE MONTH
The Pending Home Sales Index (PHSI) continued to decline in December 2005, reflecting the effect of higher mortgage interest rates in November, according to a recent report by NAR. Based on the number of transactions that have signed contracts but are not yet closed, the PHSI gauges home sales activity for upcoming months, as sales typically close within one or two months of contract signing. In December, the PHSI decreased 5.5 percent to 116.4 from the reading one year earlier, and fell 3 percent below November's reading of 120. An index of 100 or more generally indicates a high level of home sales activity.
Regionally, the PHSI was highest in the South, where it increased 4.1 percent from one year earlier to 135.9. In the West, the PHSI fell 11.8 percent to 117.1. The Midwest and Northeast regions also experienced annual declines, falling to 105.8 and 90.7, respectively.
http://www.realtor.org/PublicAffairsWeb.nsf/Pages/DecPHSI05?OpenDocument
PENDING HOME SALES DECLINE FOR FOURTH CONSECUTIVE MONTH
The Pending Home Sales Index (PHSI) continued to decline in December 2005, reflecting the effect of higher mortgage interest rates in November, according to a recent report by NAR. Based on the number of transactions that have signed contracts but are not yet closed, the PHSI gauges home sales activity for upcoming months, as sales typically close within one or two months of contract signing. In December, the PHSI decreased 5.5 percent to 116.4 from the reading one year earlier, and fell 3 percent below November's reading of 120. An index of 100 or more generally indicates a high level of home sales activity.
Regionally, the PHSI was highest in the South, where it increased 4.1 percent from one year earlier to 135.9. In the West, the PHSI fell 11.8 percent to 117.1. The Midwest and Northeast regions also experienced annual declines, falling to 105.8 and 90.7, respectively.
http://www.realtor.org/PublicAffairsWeb.nsf/Pages/DecPHSI05?OpenDocument
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - Dec. 05: $548,430 (Source: C.A.R.)
Calif. affordability index - Nov. 05: 14 percent (Source: C.A.R.)
Calif. highest median home price by C.A.R. region Dec. 05:
Santa Barbara So. Coast $1,300,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region Dec. 05:
High Desert $320,490 (Source: C.A.R.)
Mortgage rates - week ending 1/26:
30-yr. fixed: 6.12%; Fees/points: 0.5%
15-yr. fixed: 5.70%; Fees/points: 0.5%
1-yr. adjustable: 5.20%; 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 185,000 REALTORS® statewide.
Edited by Mark Giberson
Copyright © 2006 California Association of REALTORS® (C.A.R.)
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Wednesday, January 25, 2006
Brought to you by the California Association of REALTORS® and David Breidenbach, 619-888-3322, www.BreidyPropertiesInc.com
CALIFORNIA RETURNING TO MORE BALANCED MARKET, C.A.R. REPORTS
C.A.R. AT THE STATE CAPITOL
HOMEBUYERS AND SELLERS RELY ON INTERNET AND AGENTS
LEADING INDEX SIGNALS MODERATE ECONOMIC GROWTH
U.S. HOUSING STARTS DECLINE IN DECEMBER
Fast Facts
Calif. median home price - Dec. 05: $548,430 (Source: C.A.R.)
Calif. affordability index - Nov. 05: 14 percent (Source: C.A.R.)
Calif. highest median home price by C.A.R. region Dec. 05:
Santa Barbara So. Coast $1,300,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region Dec. 05:
High Desert $320,490 (Source: C.A.R.)
Mortgage rates - week ending 1/26:
30-yr. fixed: 6.12%; Fees/points: 0.5%
15-yr. fixed: 5.70%; Fees/points: 0.5%
1-yr. adjustable: 5.20%; 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 185,000 REALTORS® statewide.
Edited by Mark Giberson
Copyright © 2006 California Association of REALTORS® (C.A.R.)
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Wednesday, January 25, 2006
Brought to you by the California Association of REALTORS® and David Breidenbach, 619-888-3322, www.BreidyPropertiesInc.com
CALIFORNIA RETURNING TO MORE BALANCED MARKET, C.A.R. REPORTS
C.A.R. AT THE STATE CAPITOL
HOMEBUYERS AND SELLERS RELY ON INTERNET AND AGENTS
LEADING INDEX SIGNALS MODERATE ECONOMIC GROWTH
U.S. HOUSING STARTS DECLINE IN DECEMBER
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
FEDERAL LEGISLATIVE SUCCESSES IN 2005, PRIORITIES FOR 2006
C.A.R. had a number of successes during the first session of the 109th Congress in 2005. Among the key issues faced, the U.S. House of Representatives passed H.R. 1461, which is intended to strengthen the regulation and oversight of Fannie Mae, Freddie Mac and the Federal Housing Administration, also known as the government-sponsored enterprises (GSEs); Congress approved, and President Bush subsequently signed into law, a one-year prohibition preventing banks from entering real estate, which was included in the FY2007 Transportation/Treasury/HUD Appropriations bill; and Congressman Richard Pombo (R-CA) helped pass legislation that will update and revise the Endangered Species Act (ESA) to help balance the protection of wildlife with the rights of property owners.
In 2006, C.A.R. will continue to work with the U.S. Senate to pass final legislation for GSE oversight, high-cost conforming loan limits, and amendments to the Endangered Species Act. Also this year, C.A.R. will focus on continuing the fight for a permanent guarantee that banks will not be allowed in real estate; improving home ownership opportunities for veterans; increasing identity security to solve problems involving the Federal Investment in Real Property Tax Act (FIRPTA); fighting against tax reform that would harm California's real estate market; developing a program for natural disaster insurance; and making sure that states remain in control over the issue of eminent domain.
http://www.car.org/index.php?id=NjAz
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
LEADING INDEX SIGNALS ECONOMIC GROWTH IN THE NEAR TERM
The U.S. leading index rose for the fourth consecutive month in January, increasing 1.1 percent to 140.1 (1996=100), The Conference Board recently reported. Six of the 10 indicators composing the leading index rose in December, including initial claims for unemployment insurance, real money supply, building permits, vendor performance, stock prices and interest rate spread. A key barometer of economic conditions, the leading index has increased in five of the last six months, suggesting economic growth is "likely to pick up in the near term," according to the report.
The coincident and lagging indices, which reflect current and past economic activity, respectively, also increased in January. The coincident index edged up 0.2 percent to 121.7, while the lagging index rose 0.7 percent to 122.8.
http://www.conference-board.org/economics/bci/pressRelease_output.cfm?cid=1
FEDERAL LEGISLATIVE SUCCESSES IN 2005, PRIORITIES FOR 2006
C.A.R. had a number of successes during the first session of the 109th Congress in 2005. Among the key issues faced, the U.S. House of Representatives passed H.R. 1461, which is intended to strengthen the regulation and oversight of Fannie Mae, Freddie Mac and the Federal Housing Administration, also known as the government-sponsored enterprises (GSEs); Congress approved, and President Bush subsequently signed into law, a one-year prohibition preventing banks from entering real estate, which was included in the FY2007 Transportation/Treasury/HUD Appropriations bill; and Congressman Richard Pombo (R-CA) helped pass legislation that will update and revise the Endangered Species Act (ESA) to help balance the protection of wildlife with the rights of property owners.
In 2006, C.A.R. will continue to work with the U.S. Senate to pass final legislation for GSE oversight, high-cost conforming loan limits, and amendments to the Endangered Species Act. Also this year, C.A.R. will focus on continuing the fight for a permanent guarantee that banks will not be allowed in real estate; improving home ownership opportunities for veterans; increasing identity security to solve problems involving the Federal Investment in Real Property Tax Act (FIRPTA); fighting against tax reform that would harm California's real estate market; developing a program for natural disaster insurance; and making sure that states remain in control over the issue of eminent domain.
http://www.car.org/index.php?id=NjAz
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
LEADING INDEX SIGNALS ECONOMIC GROWTH IN THE NEAR TERM
The U.S. leading index rose for the fourth consecutive month in January, increasing 1.1 percent to 140.1 (1996=100), The Conference Board recently reported. Six of the 10 indicators composing the leading index rose in December, including initial claims for unemployment insurance, real money supply, building permits, vendor performance, stock prices and interest rate spread. A key barometer of economic conditions, the leading index has increased in five of the last six months, suggesting economic growth is "likely to pick up in the near term," according to the report.
The coincident and lagging indices, which reflect current and past economic activity, respectively, also increased in January. The coincident index edged up 0.2 percent to 121.7, while the lagging index rose 0.7 percent to 122.8.
http://www.conference-board.org/economics/bci/pressRelease_output.cfm?cid=1
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
AMERICANS INCREASINGLY USE WEB TO HANG OUT
On a typical day in 2005, nearly 40 million Americans, or almost 30 percent of Internet users, surfed the Web "for fun," according to a recent study by the Pew Internet & American Life Project. Up from 25 million Americans in 2004, these users are most likely to be men between the ages of 18 and 29. According to the study, high-speed Internet connections and the growing volume of Web content are two reasons more Americans are turning to the Internet to as a place to "hang out." Surfing the Web for fun is now the third most popular online activity, following e-mail applications and using search engines.
"This tells us the Internet is another place where people increasingly go to while away their time or just to hang out," said Deborah Fallows, senior research fellow at the Pew Internet & American Life Project. "The online world is becoming a destination in and of itself -- and that has potentially big consequences for the way people spend their time."
http://www.pewinternet.org/PPF/r/123/press_release.asp
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
REMODELING ACTIVITY SLOWS
With rising interest rates curbing refinancing activities, which homeowners often use to fund remodeling projects, the remodeling market slowed during the fourth quarter of 2005, according to the National Association of Home Builders' Remodeling Market Index (RMI). For the first time since the first quarter of 2003, the RMI components dipped below 50; indices above 50 indicate more remodelers view market conditions as good versus poor.
During the fourth quarter of 2005, the current market conditions component, based on existing home additions, alterations and repairs being completed, declined 4.3 points to 46.6, while the future expectations index, determined by factors such as the amount of work committed for the next three months and the backlog of remodeling jobs, slipped to 47.5 from 51.8. Regionally, the West reported the strongest remodeling activity with the current and future RMI components increasing to 58.5 and 63.5, respectively. Remodeling activity declined in the South, Northeast, and Midwest regions.
http://www.nahb.org/news_details.aspx?newsID=2058
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - Dec. 05: $548,430 (Source: C.A.R.)
Calif. affordability index - Dec. 05: 14 percent (Source: C.A.R.)
Calif. highest median home price by C.A.R. region Dec. 05:
Santa Barbara So. Coast $1,300,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region Dec. 05:
High Desert $320,490 (Source: C.A.R.)
Mortgage rates - week ending 2/16:
30-yr. fixed: 6.28%; Fees/points: 0.5%
15-yr. fixed: 5.91%; Fees/points: 0.5%
1-yr. adjustable: 5.36%; 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 185,000 REALTORS® statewide.
Edited by Mark Giberson
AMERICANS INCREASINGLY USE WEB TO HANG OUT
On a typical day in 2005, nearly 40 million Americans, or almost 30 percent of Internet users, surfed the Web "for fun," according to a recent study by the Pew Internet & American Life Project. Up from 25 million Americans in 2004, these users are most likely to be men between the ages of 18 and 29. According to the study, high-speed Internet connections and the growing volume of Web content are two reasons more Americans are turning to the Internet to as a place to "hang out." Surfing the Web for fun is now the third most popular online activity, following e-mail applications and using search engines.
"This tells us the Internet is another place where people increasingly go to while away their time or just to hang out," said Deborah Fallows, senior research fellow at the Pew Internet & American Life Project. "The online world is becoming a destination in and of itself -- and that has potentially big consequences for the way people spend their time."
http://www.pewinternet.org/PPF/r/123/press_release.asp
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
REMODELING ACTIVITY SLOWS
With rising interest rates curbing refinancing activities, which homeowners often use to fund remodeling projects, the remodeling market slowed during the fourth quarter of 2005, according to the National Association of Home Builders' Remodeling Market Index (RMI). For the first time since the first quarter of 2003, the RMI components dipped below 50; indices above 50 indicate more remodelers view market conditions as good versus poor.
During the fourth quarter of 2005, the current market conditions component, based on existing home additions, alterations and repairs being completed, declined 4.3 points to 46.6, while the future expectations index, determined by factors such as the amount of work committed for the next three months and the backlog of remodeling jobs, slipped to 47.5 from 51.8. Regionally, the West reported the strongest remodeling activity with the current and future RMI components increasing to 58.5 and 63.5, respectively. Remodeling activity declined in the South, Northeast, and Midwest regions.
http://www.nahb.org/news_details.aspx?newsID=2058
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - Dec. 05: $548,430 (Source: C.A.R.)
Calif. affordability index - Dec. 05: 14 percent (Source: C.A.R.)
Calif. highest median home price by C.A.R. region Dec. 05:
Santa Barbara So. Coast $1,300,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region Dec. 05:
High Desert $320,490 (Source: C.A.R.)
Mortgage rates - week ending 2/16:
30-yr. fixed: 6.28%; Fees/points: 0.5%
15-yr. fixed: 5.91%; Fees/points: 0.5%
1-yr. adjustable: 5.36%; 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 185,000 REALTORS® statewide.
Edited by Mark Giberson
Copyright © 2006 California Association of REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CALIFORNIA RETURNING TO MORE BALANCED MARKET, C.A.R. REPORTS
The median price of an existing, single-family detached home in California during December 2005 was $548,430, a 15.6 percent increase over the $474,270 median for December 2004, C.A.R. reported today. The December 2005 median price was nearly unchanged from November's $548,680 median price.
Closed escrow sales of existing, single-family detached homes in California totaled 531,910 in December at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity decreased 17.6 percent from the 645,860 sales pace recorded in December 2004.
"We are experiencing a return to a more balanced market, in line with our expectations, although unsold inventory is still near historical lows, with a 3.6 month supply of homes for sale," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "Time on the market also is nearly unchanged at 44 days in December compared with 40 days for the same period last year."
http://www.car.org/index.php?id=MzU4OTk=
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. AT THE STATE CAPITOL
The assembly speaker and speaker pro tempore called for a series of special committee hearings this week, and C.A.R. will testify at a hearing of the Assembly Housing and Community Development Committee. The purpose of the hearing is to receive input on the content of a proposed state infrastructure bond, including whether or not the bond should include a housing component. If the state legislature and governor approve the bond measure, it will be placed before the state electorate for a vote this year.
Also this week, several bills that C.A.R. opposes may be heard by the California Legislature, including AB 802 (Wolk), "Land Use Water Supply." This measure would require the land and conservation elements of a city or county general plan to consider additional water and flood management plans before revising the general plan. AB 802 also would severely limit growth in California by restricting land use in areas characterized as being in a 200-year flood plain. C.A.R. opposes this measure because it duplicates existing flood risk assessments impinging upon local control of land use planning; curtails the construction of housing in areas designated as flood zones; and requires the general plans to include flood water management planning independent of input from water purveyors.
http://www.car.org/index.php?id=MzE3MjA=
CALIFORNIA RETURNING TO MORE BALANCED MARKET, C.A.R. REPORTS
The median price of an existing, single-family detached home in California during December 2005 was $548,430, a 15.6 percent increase over the $474,270 median for December 2004, C.A.R. reported today. The December 2005 median price was nearly unchanged from November's $548,680 median price.
Closed escrow sales of existing, single-family detached homes in California totaled 531,910 in December at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity decreased 17.6 percent from the 645,860 sales pace recorded in December 2004.
"We are experiencing a return to a more balanced market, in line with our expectations, although unsold inventory is still near historical lows, with a 3.6 month supply of homes for sale," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "Time on the market also is nearly unchanged at 44 days in December compared with 40 days for the same period last year."
http://www.car.org/index.php?id=MzU4OTk=
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. AT THE STATE CAPITOL
The assembly speaker and speaker pro tempore called for a series of special committee hearings this week, and C.A.R. will testify at a hearing of the Assembly Housing and Community Development Committee. The purpose of the hearing is to receive input on the content of a proposed state infrastructure bond, including whether or not the bond should include a housing component. If the state legislature and governor approve the bond measure, it will be placed before the state electorate for a vote this year.
Also this week, several bills that C.A.R. opposes may be heard by the California Legislature, including AB 802 (Wolk), "Land Use Water Supply." This measure would require the land and conservation elements of a city or county general plan to consider additional water and flood management plans before revising the general plan. AB 802 also would severely limit growth in California by restricting land use in areas characterized as being in a 200-year flood plain. C.A.R. opposes this measure because it duplicates existing flood risk assessments impinging upon local control of land use planning; curtails the construction of housing in areas designated as flood zones; and requires the general plans to include flood water management planning independent of input from water purveyors.
http://www.car.org/index.php?id=MzE3MjA=
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HOMEBUYERS AND SELLERS RELY ON INTERNET AND AGENTS
Home buyers who use the Internet to search for homes are more likely to use a real estate agent than non-Internet users, according to the "2005 National Association of REALTORS® Profile of Home Buyers and Sellers." Internet use during the home buying process has increased significantly over the last 10 years, rising from 2 percent of home buyers in 1995 to 77 percent last year. Even as technology plays a larger role in real estate transactions, buyers continue to rely on real estate professionals to negotiate the contract and help with paperwork, and 81 percent of Internet users purchased their home through a real estate agent.
According to the report, last year only 13 percent of sellers did not use a real estate agent during their transaction, marking a decline in the number of for-sale-by-owner (FSBO) transactions. Though many FSBOs opt not to use professional assistance to save on commissions, the median home price for sellers who use an agent is 16 percent higher than for sellers who are not represented.
More infotop
http://realtor.org/PublicAffairsWeb.nsf/Pages/HmBuyerSellerSurvey06?OpenDocument
HOMEBUYERS AND SELLERS RELY ON INTERNET AND AGENTS
Home buyers who use the Internet to search for homes are more likely to use a real estate agent than non-Internet users, according to the "2005 National Association of REALTORS® Profile of Home Buyers and Sellers." Internet use during the home buying process has increased significantly over the last 10 years, rising from 2 percent of home buyers in 1995 to 77 percent last year. Even as technology plays a larger role in real estate transactions, buyers continue to rely on real estate professionals to negotiate the contract and help with paperwork, and 81 percent of Internet users purchased their home through a real estate agent.
According to the report, last year only 13 percent of sellers did not use a real estate agent during their transaction, marking a decline in the number of for-sale-by-owner (FSBO) transactions. Though many FSBOs opt not to use professional assistance to save on commissions, the median home price for sellers who use an agent is 16 percent higher than for sellers who are not represented.
More infotop
http://realtor.org/PublicAffairsWeb.nsf/Pages/HmBuyerSellerSurvey06?OpenDocument
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
LEADING INDEX SIGNALS MODERATE ECONOMIC GROWTH
The U.S. leading index rose for the third consecutive month in December, increasing 0.1 percent to 138.5 (1996=100), The Conference Board recently reported. Six of the 10 indicators composing the leading index rose in December, including consumer expectations, real money supply, stock prices, initial claims for unemployment insurance, interest rate spread and manufacturers' orders for consumer goods. A key barometer of economic conditions, the leading index signals moderate economic growth in the coming months, according to the report.
The coincident and lagging indices, which reflect current and past economic activity, respectively, also increased in December. The coincident index edged up 0.2 percent to 121.1, while the lagging index rose 0.1 percent to 122.3.
http://www.conference-board.org/economics/bci/pressRelease_output.cfm?cid=1
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
U.S. HOUSING STARTS DECLINE IN DECEMBER
Following a large increase in November 2005, the seasonally adjusted annual rate for privately owned housing starts in December declined to 1.93 million units, according to a report released by the U.S. Dept. of Commerce. The December construction pace was down 5.7 percent from a year ago. Single-family housing starts decreased 7.9 percent from December 2004 to a rate of 1.58 million units, while starts for buildings with five or more units increased 11.4 percent to 322,000. The number of building permits issued, which can be an indicator of future building activity, also edged down in December, decreasing 0.6 percent from one year ago to a seasonally adjusted annual rate of 2.07 million permits.
Regionally, the South was the only area to post an increase in housing starts compared with one year earlier. Housing starts in the South rose 8.2 percent in December 2005, while the construction pace declined by 22.2 percent in the Midwest, 16.9 percent in the West and 11.8 percent in the Northeast.
http://www.census.gov/const/newresconst_200512.pdf
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - Dec. 05: $548,430 (Source: C.A.R.)
Calif. affordability index - Nov. 05: 14 percent (Source: C.A.R.)
Calif. highest median home price by C.A.R. region Dec. 05:
Santa Barbara So. Coast $1,300,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region Dec. 05:
High Desert $320,490 (Source: C.A.R.)
Mortgage rates - week ending 1/19:
30-yr. fixed: 6.10%; Fees/points: 0.5%
15-yr. fixed: 5.67%; Fees/points: 0.5%
1-yr. adjustable: 5.18%; 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 180,000 REALTORS® statewide.
Edited by Mark Giberson, Copyright © 2006 California Association of REALTORS® (C.A.R.)
LEADING INDEX SIGNALS MODERATE ECONOMIC GROWTH
The U.S. leading index rose for the third consecutive month in December, increasing 0.1 percent to 138.5 (1996=100), The Conference Board recently reported. Six of the 10 indicators composing the leading index rose in December, including consumer expectations, real money supply, stock prices, initial claims for unemployment insurance, interest rate spread and manufacturers' orders for consumer goods. A key barometer of economic conditions, the leading index signals moderate economic growth in the coming months, according to the report.
The coincident and lagging indices, which reflect current and past economic activity, respectively, also increased in December. The coincident index edged up 0.2 percent to 121.1, while the lagging index rose 0.1 percent to 122.3.
http://www.conference-board.org/economics/bci/pressRelease_output.cfm?cid=1
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
U.S. HOUSING STARTS DECLINE IN DECEMBER
Following a large increase in November 2005, the seasonally adjusted annual rate for privately owned housing starts in December declined to 1.93 million units, according to a report released by the U.S. Dept. of Commerce. The December construction pace was down 5.7 percent from a year ago. Single-family housing starts decreased 7.9 percent from December 2004 to a rate of 1.58 million units, while starts for buildings with five or more units increased 11.4 percent to 322,000. The number of building permits issued, which can be an indicator of future building activity, also edged down in December, decreasing 0.6 percent from one year ago to a seasonally adjusted annual rate of 2.07 million permits.
Regionally, the South was the only area to post an increase in housing starts compared with one year earlier. Housing starts in the South rose 8.2 percent in December 2005, while the construction pace declined by 22.2 percent in the Midwest, 16.9 percent in the West and 11.8 percent in the Northeast.
http://www.census.gov/const/newresconst_200512.pdf
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - Dec. 05: $548,430 (Source: C.A.R.)
Calif. affordability index - Nov. 05: 14 percent (Source: C.A.R.)
Calif. highest median home price by C.A.R. region Dec. 05:
Santa Barbara So. Coast $1,300,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region Dec. 05:
High Desert $320,490 (Source: C.A.R.)
Mortgage rates - week ending 1/19:
30-yr. fixed: 6.10%; Fees/points: 0.5%
15-yr. fixed: 5.67%; Fees/points: 0.5%
1-yr. adjustable: 5.18%; 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 180,000 REALTORS® statewide.
Edited by Mark Giberson, Copyright © 2006 California Association of REALTORS® (C.A.R.)
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Wednesday, January 18, 2006
Brought to you by the California Association of REALTORS® and David Breidenbach, 619-888-3322, www.BreidyPropertiesInc.com
SOLAR ENERGY PROGRAM PUSHES CALIFORNIA CLOSER TO CLEANER FUTURE
HOMEBUILDER CONFIDENCE HOLDS STEADY
CALIFORNIA HOUSING PRODUCTION EXPECTED TO DECLINE IN 2006
HOUSING AFFORDABILITY INDEX STANDS AT 14 PERCENT
*************************************************************************
Wednesday, January 18, 2006
Brought to you by the California Association of REALTORS® and David Breidenbach, 619-888-3322, www.BreidyPropertiesInc.com
SOLAR ENERGY PROGRAM PUSHES CALIFORNIA CLOSER TO CLEANER FUTURE
HOMEBUILDER CONFIDENCE HOLDS STEADY
CALIFORNIA HOUSING PRODUCTION EXPECTED TO DECLINE IN 2006
HOUSING AFFORDABILITY INDEX STANDS AT 14 PERCENT
*************************************************************************
SOLAR ENERGY PROGRAM PUSHES CALIFORNIA CLOSER TO CLEANER FUTURE
The cost of environmentally friendly electricity will decrease with the newly created California Solar Initiative. The 10-year, $2.9 billion program was recently designed by the California Public Utilities Commission (PUC) to promote solar development and address Governor Schwarzenegger's goal to reduce greenhouse gas emissions. By 2017, the initiative plans to install one million solar systems or an equivalent of 3,000 megawatts of solar capacity.
According to a recent release by the PUC, the California Solar Initiative is the largest solar program in the country and will encourage builders to include solar installations in new housing developments. Other program provisions include an emphasis on testing the performance and output of the solar systems installed, as well as program funding for affordable housing installations.
http://www.cpuc.ca.gov/PUBLISHED/NEWS_RELEASE/52745.htm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HOMEBUILDER CONFIDENCE HOLDS STEADY
Following a six-month slide from the peak levels reached during 2005, builder confidence stabilized this month, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The recent decline in mortgage interest rates and subsequent rise in consumer confidence helped hold January's HMI at 57, unchanged from December's reading. While an HMI above 50 indicates that more builders view sales conditions as good versus poor, the HMI had remained within a 65 to 72 confidence range between July 2003 and October 2005.
Two of the HMI's three components remained unchanged in January; the components measuring future sales expectations and the traffic of prospective buyers stand at 65 and 40, respectively. The index gauging current sales activity fell two points to 62. Regionally, builder confidence declined in the West, falling 10 points to 65.
http://www.nahb.org/news_details.aspx?sectionID=148&newsID=1714
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CALIFORNIA HOUSING PRODUCTION EXPECTED TO DECLINE IN 2006
California's homebuilders will likely construct 185,000 to 205,000 new housing units in 2006, down from the 212,000 units produced each of the last two years, according to a recent housing forecast released by the California Building Industry Association (CBIA). Nearly three-fourths of the housing permits issued are expected to be for single-family homes, while the remaining housing starts will be for apartments and condominiums. According to the forecast, the decrease in housing production is likely to impact the coastal areas of the state.
"The annual demand for new homes in California continues to be in the 240,000 range, but the homebuilding industry is able to provide only 80 percent of the total need," said CBIA Chief Economist Alan Nevin. "The difference represents the inability of the industry to provide moderately priced housing for the first-time homebuyer. The inability relates to the continuing constraints in the developable land supply in the coastal urban cores of the state and the burgeoning extractions demanded by local government."
http://www.cbia.org/index.cfm?pageid=1239&preview=yes
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HOUSING AFFORDABILITY INDEX STANDS AT 14 PERCENT
The percentage of households in California able to afford a median-priced home stood at 14 percent in November, compared with 19 percent for the same period a year ago, according to C.A.R.'s Housing Affordability Index. The minimum household income needed to purchase a median-priced home at $548,400 in California in November was $133,390, based on an average effective mortgage interest rate of 6.26 percent and assuming a 20 percent down payment.
At 24 percent, the High Desert region was the most affordable C.A.R. region in the state, followed by the Sacramento region at 19 percent. The Northern Wine Country, San Luis Obispo and Santa Barbara regions were the least affordable in the state at 7 percent.
The cost of environmentally friendly electricity will decrease with the newly created California Solar Initiative. The 10-year, $2.9 billion program was recently designed by the California Public Utilities Commission (PUC) to promote solar development and address Governor Schwarzenegger's goal to reduce greenhouse gas emissions. By 2017, the initiative plans to install one million solar systems or an equivalent of 3,000 megawatts of solar capacity.
According to a recent release by the PUC, the California Solar Initiative is the largest solar program in the country and will encourage builders to include solar installations in new housing developments. Other program provisions include an emphasis on testing the performance and output of the solar systems installed, as well as program funding for affordable housing installations.
http://www.cpuc.ca.gov/PUBLISHED/NEWS_RELEASE/52745.htm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HOMEBUILDER CONFIDENCE HOLDS STEADY
Following a six-month slide from the peak levels reached during 2005, builder confidence stabilized this month, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The recent decline in mortgage interest rates and subsequent rise in consumer confidence helped hold January's HMI at 57, unchanged from December's reading. While an HMI above 50 indicates that more builders view sales conditions as good versus poor, the HMI had remained within a 65 to 72 confidence range between July 2003 and October 2005.
Two of the HMI's three components remained unchanged in January; the components measuring future sales expectations and the traffic of prospective buyers stand at 65 and 40, respectively. The index gauging current sales activity fell two points to 62. Regionally, builder confidence declined in the West, falling 10 points to 65.
http://www.nahb.org/news_details.aspx?sectionID=148&newsID=1714
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CALIFORNIA HOUSING PRODUCTION EXPECTED TO DECLINE IN 2006
California's homebuilders will likely construct 185,000 to 205,000 new housing units in 2006, down from the 212,000 units produced each of the last two years, according to a recent housing forecast released by the California Building Industry Association (CBIA). Nearly three-fourths of the housing permits issued are expected to be for single-family homes, while the remaining housing starts will be for apartments and condominiums. According to the forecast, the decrease in housing production is likely to impact the coastal areas of the state.
"The annual demand for new homes in California continues to be in the 240,000 range, but the homebuilding industry is able to provide only 80 percent of the total need," said CBIA Chief Economist Alan Nevin. "The difference represents the inability of the industry to provide moderately priced housing for the first-time homebuyer. The inability relates to the continuing constraints in the developable land supply in the coastal urban cores of the state and the burgeoning extractions demanded by local government."
http://www.cbia.org/index.cfm?pageid=1239&preview=yes
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HOUSING AFFORDABILITY INDEX STANDS AT 14 PERCENT
The percentage of households in California able to afford a median-priced home stood at 14 percent in November, compared with 19 percent for the same period a year ago, according to C.A.R.'s Housing Affordability Index. The minimum household income needed to purchase a median-priced home at $548,400 in California in November was $133,390, based on an average effective mortgage interest rate of 6.26 percent and assuming a 20 percent down payment.
At 24 percent, the High Desert region was the most affordable C.A.R. region in the state, followed by the Sacramento region at 19 percent. The Northern Wine Country, San Luis Obispo and Santa Barbara regions were the least affordable in the state at 7 percent.
http://www.car.org/index.php?id=MzU4NDc=
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - Nov. 05: $548,400 (Source: C.A.R.)
Calif. affordability index - Nov. 05: 14 percent (Source: C.A.R.)
Calif. highest median home price by C.A.R. region Nov. 05:
Santa Barbara So. Coast $1,115,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region Nov. 05:
High Desert $320,860 (Source: C.A.R.)
Mortgage rates - week ending 1/12:
30-yr. fixed: 6.15%; Fees/points: 0.6%
15-yr. fixed: 5.71%; Fees/points: 0.6%
1-yr. adjustable: 5.15%; 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 180,000 REALTORS® statewide.
Edited by Mark Giberson
Copyright © 2006 California Association of REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - Nov. 05: $548,400 (Source: C.A.R.)
Calif. affordability index - Nov. 05: 14 percent (Source: C.A.R.)
Calif. highest median home price by C.A.R. region Nov. 05:
Santa Barbara So. Coast $1,115,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region Nov. 05:
High Desert $320,860 (Source: C.A.R.)
Mortgage rates - week ending 1/12:
30-yr. fixed: 6.15%; Fees/points: 0.6%
15-yr. fixed: 5.71%; Fees/points: 0.6%
1-yr. adjustable: 5.15%; 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 180,000 REALTORS® statewide.
Edited by Mark Giberson
Copyright © 2006 California Association of REALTORS® (C.A.R.)
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Wednesday, January 11, 2006
Brought to you by the California Association of REALTORS® and David Breidenbach, 619-888-3322, www.BreidyPropertiesInc.com
PENDING HOME SALES DECLINE FOR THIRD CONSECUTIVE MONTH
NAR QUESTIONS BANKS' REAL ESTATE PROJECTS
THIS WEEK IN THE CALIFORNIA LEGISLATURE
MEN AND WOMEN LEAD SIMILAR ONLINE LIVES
LOAN APPLICATIONS INCREASE 9.9 PERCENT
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
PENDING HOME SALES DECLINE FOR THIRD CONSECUTIVE MONTH
The Pending Home Sales Index (PHSI) declined to its lowest level since January 2005, indicating a transition to a more balanced housing market, according to a recent report by NAR. Based on the number of transactions that have signed contracts but are not yet closed, the PHSI gauges home sales activity for upcoming months, as sales typically close within one or two months of contract signing. In November, the PHSI decreased 2.5 percent to 120.6 from the reading one year earlier, and fell 2.5 percent below October's reading of 123.7. An index of 100 or more generally indicates a high level of home sales activity.
Regionally, the PHSI was highest in the South, where it increased 1.8 percent from one year earlier to 132.8. In the West, the PHSI fell 4.6 percent to 127.7. The Midwest and Northeast regions also experienced annual declines, falling to 116 and 93.3, respectively.
http://www.realtor.org/PublicAffairsWeb.nsf/Pages/PHSI0106?OpenDocument
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
NAR QUESTIONS BANKS' REAL ESTATE PROJECTS
NAR plans to file a Freedom of Information Act request with regard to two bank-related real estate development projects recently approved by the Office of the Comptroller of the Currency (OCC), the Association announced this week. In December, Bank of America and PNC Financial Services Group both received permission from the OCC to complete projects that exceed the parameters generally allowed for bank-related developments. The approvals may violate the Gramm-Leach-Baily Act and the National Bank Act, according to NAR.
"These regulatory approvals bring banks closer to controlling commercial real estate projects from top to bottom," stated NAR President Tom Stevens. The Freedom of Information Act request will help the Association determine the full scope of the OCC's actions authorizing real estate development activities for national banks.
http://realtor.org/PublicAffairsWeb.nsf/Pages/NARQuestionsBankPowers?OpenDocument
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
THIS WEEK IN THE CALIFORNIA LEGISLATURE
The California Legislature, which reconvened on Jan. 4 for the second year of a two-year session, is hearing several real estate-related bills this week, including AB 790 (Yee), "Real Estate Licensees," and AB 438 (Parra), "Sex Offenders." Because C.A.R. successfully achieved amendments to AB 790, the Association no longer opposes the bill, which prohibits a person from using certain designations or certifications awarded by any organization of real estate licensees without the authority to do so. Prior to the amendments, the bill contained language requiring special license endorsement for mortgage brokerages. C.A.R. has historically opposed license specialization, preferring instead the single, versatile license now in place.
Scheduled to be voted on in the Assembly Public Safety Committee on Jan. 10, AB 438 would allow the lessor of residential real property to refuse to provide housing to, or evict, a sex offender whose residence address is made available on the Megan's Law Web site. AB 438 also would provide that a lessor may inform other residents of a residential real property that a person whose residence address is made available on the Web site resides in the residential property. This legislation was sponsored by the California Apartment Association to clarify the permitted uses of information from the Megan's Law database. C.A.R. has been working with supporters to ensure that it does not inadvertently create additional liability.
http://www.car.org/index.php?id=MzE3MjA=
Wednesday, January 11, 2006
Brought to you by the California Association of REALTORS® and David Breidenbach, 619-888-3322, www.BreidyPropertiesInc.com
PENDING HOME SALES DECLINE FOR THIRD CONSECUTIVE MONTH
NAR QUESTIONS BANKS' REAL ESTATE PROJECTS
THIS WEEK IN THE CALIFORNIA LEGISLATURE
MEN AND WOMEN LEAD SIMILAR ONLINE LIVES
LOAN APPLICATIONS INCREASE 9.9 PERCENT
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
PENDING HOME SALES DECLINE FOR THIRD CONSECUTIVE MONTH
The Pending Home Sales Index (PHSI) declined to its lowest level since January 2005, indicating a transition to a more balanced housing market, according to a recent report by NAR. Based on the number of transactions that have signed contracts but are not yet closed, the PHSI gauges home sales activity for upcoming months, as sales typically close within one or two months of contract signing. In November, the PHSI decreased 2.5 percent to 120.6 from the reading one year earlier, and fell 2.5 percent below October's reading of 123.7. An index of 100 or more generally indicates a high level of home sales activity.
Regionally, the PHSI was highest in the South, where it increased 1.8 percent from one year earlier to 132.8. In the West, the PHSI fell 4.6 percent to 127.7. The Midwest and Northeast regions also experienced annual declines, falling to 116 and 93.3, respectively.
http://www.realtor.org/PublicAffairsWeb.nsf/Pages/PHSI0106?OpenDocument
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
NAR QUESTIONS BANKS' REAL ESTATE PROJECTS
NAR plans to file a Freedom of Information Act request with regard to two bank-related real estate development projects recently approved by the Office of the Comptroller of the Currency (OCC), the Association announced this week. In December, Bank of America and PNC Financial Services Group both received permission from the OCC to complete projects that exceed the parameters generally allowed for bank-related developments. The approvals may violate the Gramm-Leach-Baily Act and the National Bank Act, according to NAR.
"These regulatory approvals bring banks closer to controlling commercial real estate projects from top to bottom," stated NAR President Tom Stevens. The Freedom of Information Act request will help the Association determine the full scope of the OCC's actions authorizing real estate development activities for national banks.
http://realtor.org/PublicAffairsWeb.nsf/Pages/NARQuestionsBankPowers?OpenDocument
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
THIS WEEK IN THE CALIFORNIA LEGISLATURE
The California Legislature, which reconvened on Jan. 4 for the second year of a two-year session, is hearing several real estate-related bills this week, including AB 790 (Yee), "Real Estate Licensees," and AB 438 (Parra), "Sex Offenders." Because C.A.R. successfully achieved amendments to AB 790, the Association no longer opposes the bill, which prohibits a person from using certain designations or certifications awarded by any organization of real estate licensees without the authority to do so. Prior to the amendments, the bill contained language requiring special license endorsement for mortgage brokerages. C.A.R. has historically opposed license specialization, preferring instead the single, versatile license now in place.
Scheduled to be voted on in the Assembly Public Safety Committee on Jan. 10, AB 438 would allow the lessor of residential real property to refuse to provide housing to, or evict, a sex offender whose residence address is made available on the Megan's Law Web site. AB 438 also would provide that a lessor may inform other residents of a residential real property that a person whose residence address is made available on the Web site resides in the residential property. This legislation was sponsored by the California Apartment Association to clarify the permitted uses of information from the Megan's Law database. C.A.R. has been working with supporters to ensure that it does not inadvertently create additional liability.
http://www.car.org/index.php?id=MzE3MjA=
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
MEN AND WOMEN LEAD SIMILAR ONLINE LIVES
While men tend to pursue Internet activities with greater intensity, women are "catching up" in online use, according to "How Women and Men Use the Internet," a recent study by the Pew Internet & American Life Project. At 66 percent, the proportion of women who use the Internet is nearly equal to the 68 percent of men who go online, and women ages 18 through 29 are more likely than their male counterparts to be Internet users.
Though men are more likely to go online for everyday activities like checking the weather and obtaining sports information, women tend to use their online experiences to deepen relationships with family and friends, according to the study. Compared with men, online women are more likely to use e-mail, gather travel information, and visit Web sites for support for health or personal problems. Both men and women value the e-commerce function of the Internet, though men are more likely than women to use the Internet for riskier transactions, such as online auctions and trading stocks.
http://www.pewinternet.org/pdfs/PIP_Women_and_Men_online.pdf
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
LOAN APPLICATIONS INCREASE 9.9 PERCENT
The Market Composite Index, a measure of mortgage loan application volume, was 600.1 for the week ending Jan. 6, up 9.9 percent on a seasonally adjusted basis from 545.9 one week earlier, The Mortgage Bankers Association reported today. The index includes a holiday adjustment to account for the reduced application activity during the holiday week. On an unadjusted basis, the index increased 27.2 percent for the week ending Jan. 6 compared with the previous week and was down 19.1 percent compared with the same week one year earlier.
The refinance share of mortgage activity decreased to 42.2 percent of total applications for the week ending Jan. 6 from 42.7 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 28.1 percent from 28.8 percent of total applications.
http://www.mortgagebankers.org/news/2006/wk0111.asp
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - Nov. 05: $548,400 (Source: C.A.R.)
Calif. affordability index - Oct. 05: 15 percent (Source: C.A.R.)
Calif. highest median home price by C.A.R. region Nov. 05:
Santa Barbara So. Coast $1,115,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region Nov. 05:
High Desert $320,860 (Source: C.A.R.)
Mortgage rates - week ending 1/5:
30-yr. fixed: 6.21%; Fees/points: 0.5%
15-yr. fixed: 5.76%; Fees/points: 0.5%
1-yr. adjustable: 5.16%; 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 180,000 REALTORS® statewide.
Edited by Mark Giberson
Copyright © 2006 California Association of REALTORS® (C.A.R.)
MEN AND WOMEN LEAD SIMILAR ONLINE LIVES
While men tend to pursue Internet activities with greater intensity, women are "catching up" in online use, according to "How Women and Men Use the Internet," a recent study by the Pew Internet & American Life Project. At 66 percent, the proportion of women who use the Internet is nearly equal to the 68 percent of men who go online, and women ages 18 through 29 are more likely than their male counterparts to be Internet users.
Though men are more likely to go online for everyday activities like checking the weather and obtaining sports information, women tend to use their online experiences to deepen relationships with family and friends, according to the study. Compared with men, online women are more likely to use e-mail, gather travel information, and visit Web sites for support for health or personal problems. Both men and women value the e-commerce function of the Internet, though men are more likely than women to use the Internet for riskier transactions, such as online auctions and trading stocks.
http://www.pewinternet.org/pdfs/PIP_Women_and_Men_online.pdf
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
LOAN APPLICATIONS INCREASE 9.9 PERCENT
The Market Composite Index, a measure of mortgage loan application volume, was 600.1 for the week ending Jan. 6, up 9.9 percent on a seasonally adjusted basis from 545.9 one week earlier, The Mortgage Bankers Association reported today. The index includes a holiday adjustment to account for the reduced application activity during the holiday week. On an unadjusted basis, the index increased 27.2 percent for the week ending Jan. 6 compared with the previous week and was down 19.1 percent compared with the same week one year earlier.
The refinance share of mortgage activity decreased to 42.2 percent of total applications for the week ending Jan. 6 from 42.7 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 28.1 percent from 28.8 percent of total applications.
http://www.mortgagebankers.org/news/2006/wk0111.asp
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - Nov. 05: $548,400 (Source: C.A.R.)
Calif. affordability index - Oct. 05: 15 percent (Source: C.A.R.)
Calif. highest median home price by C.A.R. region Nov. 05:
Santa Barbara So. Coast $1,115,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region Nov. 05:
High Desert $320,860 (Source: C.A.R.)
Mortgage rates - week ending 1/5:
30-yr. fixed: 6.21%; Fees/points: 0.5%
15-yr. fixed: 5.76%; Fees/points: 0.5%
1-yr. adjustable: 5.16%; 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 180,000 REALTORS® statewide.
Edited by Mark Giberson
Copyright © 2006 California Association of REALTORS® (C.A.R.)
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
January 04, 2006
Brought to you by the California Association of REALTORS® and David Breidenbach, 619-888-3322, www.BreidyPropertiesInc.com
2005 CALIFORNIA HOUSING MARKET ECLIPSES PREVIOUS RECORDS
STUDY OUTLINES LEGAL TRENDS IN REAL ESTATE
U.S. LEADING INDEX INCREASES FOR SECOND CONSECUTIVE MONTH
HUD RAISES REAL ESTATE LOAN LIMITS BY 15 PERCENT
NEW LAWS FOR 2006 AFFECTING REALTORS®
TOTAL CONSTRUCTION SPENDING EXCEEDS $1 TRILLION IN 2005
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
2005 CALIFORNIA HOUSING MARKET ECLIPSES PREVIOUS RECORDS
The 2005 California residential real estate market will be one for the record books, eclipsing the annual sales and median home price records set in 2004, according to C.A.R. Sales of detached, existing single-family homes are expected to reach 635,000 for 2005, an increase of 1.8 percent over 2004's record sales of 624,700. The annual median price of a single-family home in California, which crossed the $500,000 threshold for the first time in April 2005, is expected to reach $523,150 for 2005 when year-end data are analyzed.
With home prices reaching record levels, more home buyers extended themselves financially last year by utilizing alternative loan products. The share of home buyers who used adjustable-rate and hybrid loans increased from 11 percent in 2003 to 43 percent in 2005, while the share of fixed-rate loans dropped from 89 percent in 2003 to 57 percent in 2005. The last time more than 40 percent of home buyers used adjustable-rate loans was in 1994.
For more market highlights from 2005, please visit the link below.
http://www.car.org/index.php?id=MzU3Mzc=
Brought to you by the California Association of REALTORS® and David Breidenbach, 619-888-3322, www.BreidyPropertiesInc.com
2005 CALIFORNIA HOUSING MARKET ECLIPSES PREVIOUS RECORDS
STUDY OUTLINES LEGAL TRENDS IN REAL ESTATE
U.S. LEADING INDEX INCREASES FOR SECOND CONSECUTIVE MONTH
HUD RAISES REAL ESTATE LOAN LIMITS BY 15 PERCENT
NEW LAWS FOR 2006 AFFECTING REALTORS®
TOTAL CONSTRUCTION SPENDING EXCEEDS $1 TRILLION IN 2005
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
2005 CALIFORNIA HOUSING MARKET ECLIPSES PREVIOUS RECORDS
The 2005 California residential real estate market will be one for the record books, eclipsing the annual sales and median home price records set in 2004, according to C.A.R. Sales of detached, existing single-family homes are expected to reach 635,000 for 2005, an increase of 1.8 percent over 2004's record sales of 624,700. The annual median price of a single-family home in California, which crossed the $500,000 threshold for the first time in April 2005, is expected to reach $523,150 for 2005 when year-end data are analyzed.
With home prices reaching record levels, more home buyers extended themselves financially last year by utilizing alternative loan products. The share of home buyers who used adjustable-rate and hybrid loans increased from 11 percent in 2003 to 43 percent in 2005, while the share of fixed-rate loans dropped from 89 percent in 2003 to 57 percent in 2005. The last time more than 40 percent of home buyers used adjustable-rate loans was in 1994.
For more market highlights from 2005, please visit the link below.
http://www.car.org/index.php?id=MzU3Mzc=
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
STUDY OUTLINES LEGAL TRENDS IN REAL ESTATE
Property management issues, including debt collection and fair housing claims, are the most common real estate disputes litigated, according to the findings of "2005 Legal Scan," NAR's recent study of the legal issues and trends in the real estate industry. Based on historical data from court decisions, statutes and regulations as well as jury verdict reports, "2005 Legal Scan" provides REALTORS® with information about more than 90 different liability issues encountered by real estate professionals.
According to the study, indoor mold is a hot topic in real estate, with more states enacting laws requiring the disclosure of mold. Other popular issues include agency disclosure, Internet advertising and anti-solicitation laws. Even with these trends, the brokers and agents involved in liability disputes were not found liable in 72 percent of the real estate court cases in which liability was determined.
http://www.realtor.org/publicaffairsweb.nsf/Pages/2005LegalScan?OpenDocument
STUDY OUTLINES LEGAL TRENDS IN REAL ESTATE
Property management issues, including debt collection and fair housing claims, are the most common real estate disputes litigated, according to the findings of "2005 Legal Scan," NAR's recent study of the legal issues and trends in the real estate industry. Based on historical data from court decisions, statutes and regulations as well as jury verdict reports, "2005 Legal Scan" provides REALTORS® with information about more than 90 different liability issues encountered by real estate professionals.
According to the study, indoor mold is a hot topic in real estate, with more states enacting laws requiring the disclosure of mold. Other popular issues include agency disclosure, Internet advertising and anti-solicitation laws. Even with these trends, the brokers and agents involved in liability disputes were not found liable in 72 percent of the real estate court cases in which liability was determined.
http://www.realtor.org/publicaffairsweb.nsf/Pages/2005LegalScan?OpenDocument
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
U.S. LEADING INDEX INCREASES FOR SECOND CONSECUTIVE MONTH
Following a large increase in October, the U.S. leading index continued to rise in November, climbing 0.5 percent to 138.8 (1996=100), The Conference Board recently reported. Seven of the 10 indicators composing the leading index rose in November, including initial claims for unemployment insurance, real money supply, consumer expectations, stock prices, building permits, interest rate spread and manufacturers' orders for consumer goods. A key barometer of economic conditions, the leading index signals moderate economic growth in the coming months, according to the report.
The coincident and lagging indices, which reflect current and past economic activity, respectively, also increased in November. The coincident index rose 0.2 percent to 121.1, while the lagging index climbed 0.6 percent to 122.
http://www.conference-board.org/utilities/pressDetail.cfm?press_ID=2786
U.S. LEADING INDEX INCREASES FOR SECOND CONSECUTIVE MONTH
Following a large increase in October, the U.S. leading index continued to rise in November, climbing 0.5 percent to 138.8 (1996=100), The Conference Board recently reported. Seven of the 10 indicators composing the leading index rose in November, including initial claims for unemployment insurance, real money supply, consumer expectations, stock prices, building permits, interest rate spread and manufacturers' orders for consumer goods. A key barometer of economic conditions, the leading index signals moderate economic growth in the coming months, according to the report.
The coincident and lagging indices, which reflect current and past economic activity, respectively, also increased in November. The coincident index rose 0.2 percent to 121.1, while the lagging index climbed 0.6 percent to 122.
http://www.conference-board.org/utilities/pressDetail.cfm?press_ID=2786
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HUD RAISES REAL ESTATE LOAN LIMITS BY 15 PERCENT
The Federal Housing Administration (FHA) has increased its single-family home mortgage limits to $200,160 in standard areas and $362,790 in high-cost areas, the U.S. Dept. of Housing and Urban Development (HUD) announced earlier this week. Adjusted annually to account for rising home prices, the FHA loan limits are tied to the conforming loan limits set by Fannie Mae and Freddie Mac. The 2006 loan limits, which took effect Jan. 1, 2006, are more than 15 percent higher than last year's limits.
http://www.hud.gov/news/release.cfm?CONTENT=pr06-001.cfm
HUD RAISES REAL ESTATE LOAN LIMITS BY 15 PERCENT
The Federal Housing Administration (FHA) has increased its single-family home mortgage limits to $200,160 in standard areas and $362,790 in high-cost areas, the U.S. Dept. of Housing and Urban Development (HUD) announced earlier this week. Adjusted annually to account for rising home prices, the FHA loan limits are tied to the conforming loan limits set by Fannie Mae and Freddie Mac. The 2006 loan limits, which took effect Jan. 1, 2006, are more than 15 percent higher than last year's limits.
http://www.hud.gov/news/release.cfm?CONTENT=pr06-001.cfm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
NEW LAWS FOR 2006 AFFECTING REALTORS®
Several new laws have been enacted that may concern REALTORS® in 2006. Below is a summary of some of the new laws that may impact your real estate practice.
Megan's Law Disclosure: The Data Base Disclosure has been revised to reference the new Megan's Law Web site, which provides online information about registered sex offenders. For the time being, REALTORS® may use either the existing or revised disclosure language; however, starting April 1, 2006, the revised disclosure language will be mandatory for residential sellers up to four units, as well as for residential landlords. C.A.R. will update its Data Base Disclosure standard form and its purchase and lease agreements to reflect this change in the law. The updated forms are expected to be released in January 2006.
Methamphetamine-Contaminated Properties: Beginning Jan. 1, 2006, a property owner must disclose in writing to a prospective buyer or tenant if local health officials have issued an order prohibiting the use or occupancy of a property contaminated by meth lab activity. The owner must also give a copy of the pending order to the buyer or tenant to acknowledge receipt in writing. Failure to comply with these requirements may subject an owner to, among other things, a civil penalty up to $5,000. Aside from disclosure requirements, this new law also sets forth procedures for local authorities to deal with meth-contaminated properties, including the filing of a lien against a property until the owner cleans up the contamination or pays for the cleanup costs.
Property Taxes for Domestic Partners: Beginning the lien date for the 2006-07 fiscal year, any transfer between registered domestic partners will not trigger a property tax reassessment. As a result, registered domestic partners will be treated the same as spouses under California property tax laws.
Notice to Terminate Tenancy: Starting Jan. 1, 2006, landlords may give a 30-day notice to terminate their month-to-month tenants, unless rent control or subsidized housing rules apply. The existing law requiring a 60-day notice of termination under certain circumstances will sunset at the end of this year, and C.A.R. will release a revised "Notice of Termination of Tenancy" standard form to reflect this change in the law.
Risk Management Course: Beginning July 1, 2007, the 45-hour continuing education requirement for brokers and salespersons must cover coursework on risk management, including principles, practices, and procedures for avoiding errors and omissions. For a first-time license renewal, a licensee must complete a three-hour course in risk management. For subsequent renewals, a licensee must complete an eight-hour update survey course covering ethics, agency, trust funds, fair housing and risk management.
For a complete list of laws affecting REALTORS®, please visit http://www.car.org/index.php?id=MzU2MTA=.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
TOTAL CONSTRUCTION SPENDING EXCEEDS $1 TRILLION IN 2005
The annual pace of construction spending topped $1 trillion for the 17th consecutive month in November 2005, rising 7.8 percent to a seasonally adjusted annual rate of $1.15 trillion, according to a recent report by the U.S. Census Bureau. Construction spending totaled $1.03 trillion during the first 11 months of 2005, up 9 percent over construction spending during the same period in 2004. The annual pace of total construction spending has remained above $1 trillion since July 2004.
Spending on residential construction in November 2005 increased 9.5 percent over the previous year to reach a rate of $648.4 billion. The value of nonresidential construction put into place in November rose 5.7 percent to a rate of $498 billion, according to the report.
http://www.census.gov/const/C30/release.pdf
Several new laws have been enacted that may concern REALTORS® in 2006. Below is a summary of some of the new laws that may impact your real estate practice.
Megan's Law Disclosure: The Data Base Disclosure has been revised to reference the new Megan's Law Web site, which provides online information about registered sex offenders. For the time being, REALTORS® may use either the existing or revised disclosure language; however, starting April 1, 2006, the revised disclosure language will be mandatory for residential sellers up to four units, as well as for residential landlords. C.A.R. will update its Data Base Disclosure standard form and its purchase and lease agreements to reflect this change in the law. The updated forms are expected to be released in January 2006.
Methamphetamine-Contaminated Properties: Beginning Jan. 1, 2006, a property owner must disclose in writing to a prospective buyer or tenant if local health officials have issued an order prohibiting the use or occupancy of a property contaminated by meth lab activity. The owner must also give a copy of the pending order to the buyer or tenant to acknowledge receipt in writing. Failure to comply with these requirements may subject an owner to, among other things, a civil penalty up to $5,000. Aside from disclosure requirements, this new law also sets forth procedures for local authorities to deal with meth-contaminated properties, including the filing of a lien against a property until the owner cleans up the contamination or pays for the cleanup costs.
Property Taxes for Domestic Partners: Beginning the lien date for the 2006-07 fiscal year, any transfer between registered domestic partners will not trigger a property tax reassessment. As a result, registered domestic partners will be treated the same as spouses under California property tax laws.
Notice to Terminate Tenancy: Starting Jan. 1, 2006, landlords may give a 30-day notice to terminate their month-to-month tenants, unless rent control or subsidized housing rules apply. The existing law requiring a 60-day notice of termination under certain circumstances will sunset at the end of this year, and C.A.R. will release a revised "Notice of Termination of Tenancy" standard form to reflect this change in the law.
Risk Management Course: Beginning July 1, 2007, the 45-hour continuing education requirement for brokers and salespersons must cover coursework on risk management, including principles, practices, and procedures for avoiding errors and omissions. For a first-time license renewal, a licensee must complete a three-hour course in risk management. For subsequent renewals, a licensee must complete an eight-hour update survey course covering ethics, agency, trust funds, fair housing and risk management.
For a complete list of laws affecting REALTORS®, please visit http://www.car.org/index.php?id=MzU2MTA=.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
TOTAL CONSTRUCTION SPENDING EXCEEDS $1 TRILLION IN 2005
The annual pace of construction spending topped $1 trillion for the 17th consecutive month in November 2005, rising 7.8 percent to a seasonally adjusted annual rate of $1.15 trillion, according to a recent report by the U.S. Census Bureau. Construction spending totaled $1.03 trillion during the first 11 months of 2005, up 9 percent over construction spending during the same period in 2004. The annual pace of total construction spending has remained above $1 trillion since July 2004.
Spending on residential construction in November 2005 increased 9.5 percent over the previous year to reach a rate of $648.4 billion. The value of nonresidential construction put into place in November rose 5.7 percent to a rate of $498 billion, according to the report.
http://www.census.gov/const/C30/release.pdf
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - Nov. 05: $548,400 (Source: C.A.R.)
Calif. affordability index - Oct. 05: 15 percent (Source: C.A.R.)
Calif. highest median home price by C.A.R. region Nov. 05:
Santa Barbara So. Coast $1,115,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region Nov. 05:
High Desert $320,860 (Source: C.A.R.)
Mortgage rates - week ending 12/29:
30-yr. fixed: 6.22%; Fees/points: 0.5%
15-yr. fixed: 5.76%; Fees/points: 0.6%
1-yr. adjustable: 5.15%; Fees/points: 0.7%
(Source: Freddie Mac)
Fast Facts
Calif. median home price - Nov. 05: $548,400 (Source: C.A.R.)
Calif. affordability index - Oct. 05: 15 percent (Source: C.A.R.)
Calif. highest median home price by C.A.R. region Nov. 05:
Santa Barbara So. Coast $1,115,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region Nov. 05:
High Desert $320,860 (Source: C.A.R.)
Mortgage rates - week ending 12/29:
30-yr. fixed: 6.22%; Fees/points: 0.5%
15-yr. fixed: 5.76%; Fees/points: 0.6%
1-yr. adjustable: 5.15%; 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 180,000 REALTORS® statewide.
Edited by Mark Giberson
Edited by Mark Giberson
Copyright © 2006 California Association of REALTORS® (C.A.R.)
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Contact Info
David Breidenbach
DRE license # 01297253
California
DRE license # 01297253
California
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(619) 888-3322
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