SOUTHERN CALIFORNIA'S HOUSING MARKET STILL FLAT...PENT_UP DEMAND BUILDS.

March 16, 2011

Southern California's housing market update: median price rises 1.9% to $275,000 in February from January, sales decline 0.6% - total of 14,369 newly built and previously owned homes/condos sold in So.Ca in February (lowest for a February since 2008. February's sales fell 19.5% below the average level for the month.  Cash buyer/ investors continue to make up a large share of the buyers market and are taking advantage of low price opportunities.

If the economy can show additional improvement and consumers begin to feel more confident about their employment situations, then housing sales could increase significantly.

According to DataQuick, Southland ZIP Codes in the top third of the housing market, based on historical prices, accounted for 34.6% of the total sales in February, up from 33.4% in January an d32.7% in February 2010.

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CALIFORNIA JOB MARKET RECOVERY MAY GO SLOWER THAN PREDICTED...

March 09, 2011

California labor market recovery may go slower than predicted...

UCLA economists project the state's unemployment rate won't crack single digits until early 2013.
The state's unemployment rate will remain in double digits until early 2013, according to a report slated for release Wednesday by UCLA's Anderson School of Management . That's three months later than the university's economists forecast in December, as California's weak housing market continues to weigh on the region's recovery.

"The improvements we were forecasting, dismal as they were, were not quite dismal enough," said Jerry Nickelsburg, a UCLA senior economist.

California's unemployment rate was 12.4% in January, a month when employers added just 12,500 jobs; 2.2 million Californians are unemployed. Rising commodity and oil prices have made employers hesitant to hire.

The California jobless rate will average 11.6% this year, 10.5% in 2012 and 9.3% in 2013, the UCLA economists predict.

Some jobs won't be back. The housing bubble wildly inflated sectors such as construction and financial services. Economists said about 350,000 of the jobs lost in those sectors during the Great Recession probably won't return this decade.

Economists predict employment in the state will increase 1.1% this year, primarily in healthcare, professional and business services, exports and technology-related manufacturing sectors.

California will add 152,000 jobs this year, 435,000 in 2012 and 535,000 in 2013, the UCLA economists projected.

The U.S. economy has started to look more robust, as employers added 192,000 jobs in February, up from 63,000 the month before. The national unemployment rate dropped to 8.9% in February, down from 9% in January.

Budget deficits in state and local governments nationwide will continue to hinder the labor market as the public sector will likely continue to shed jobs, economists said. Rising commodity prices could force businesses to raise prices and stall hiring. Upheaval in the Middle East and North Africa could continue to put upward pressure on oil prices. Finally, gas prices will be watched closely as we approach the summer months of 2011.

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FEBRUARY HOMES SALES FALL - PRICES HIT 2009 LEVELS

March 07, 2011

The number of homes sold in Los Angeles County decreased in February 2011 versus the same period last year.  The number of home sales in the county fell to 3,371, down about 7 percent from February 2010.  The median price also decreased to $325,000, or about 1% to levels not seen since 2009.

February 2011 New & Existing Home Sales in L.A. County: (SFR)

Hermosa Beach 90254

2011 Home Sales = 4 / Median Price $1,100,000

2010 Home Sales = 8 / Median Price $1,162,000

Manhattan Beach 90266

2011 Home Sales = 16 / Median Price $1,285,000

2010 Home Sales = 13 / Median Price $1,461,000

Redondo Beach 90277

2011 Home Sales = 9 / Median Price $956,000

2010 Home Sales = 8 / Median Price $765,000

Redondo Beach 90278

2011 Home Sales = 12 / Median Price $640,000

2010 Home Sales = 16 / Median Price $628,000

Palos Verdes Estates 90274

2011 Home Sales = 11 / Median Price $1,195,000

2010 Home Sales = 16 / Median Price $1,218,000

Rancho Palos Verdes  90275

2011 Home Sales = 18 / Median Price $814,000

2010 Home Sales = 19 / Median Price $830,000

 

 

 

 

 

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PENDING HOME SALES DECLINE IN JANUARY

March 03, 2011

Pending Home Sales Decline in January

Pending home sales eased moderately in January for the second straight month, but remain 20.6 percent above the cyclical low last June, according to the National Association of Realtors®.
The Pending Home Sales Index,* a forward-looking indicator, declined 2.8 percent to 88.9 based on contracts signed in January from a downwardly revised 91.5 in December. The index is 1.5 percent below the 90.3 level in January 2010 when a tax credit stimulus was in place. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.
Lawrence Yun, NAR chief economist, points to the broader trend. “The housing market is healing with sales fluctuating at times, depending on the flow of distressed properties coming on the market,” he said.

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“While home buyers over the past two years have been exceptionally successful with historically low default rates, there is still an elevated level of shadow inventory of distressed homes from past lending mistakes that need to go through the system,” Yun said. “We should not expect the recovery to be in a straight upward path – it will zig-zag at times.”

The pace of January existing-home sales, 5.36 million, is slightly higher than NAR’s annual forecast for 2011. If contract activity stays on its present course, there should be an 8 percent increase in total existing-home sales this year.

“The broad fundamentals for a housing recovery are developing,” Yun said. “Job growth, high housing affordability and rising apartment rent are conducive to bringing more buyers into the market. Some buyers may be looking to real estate as a hedge against potential future inflation.”
The PHSI in the Northeast declined 2.4 percent to 73.5 in January and is 3.0 percent below January 2010. In the Midwest the index fell 7.3 percent in January to 78.0 and is 3.2 percent below a year ago. Pending home sales in the South rose 1.4 percent to an index of 97.7 but are 0.4 percent below January 2010. In the West the index fell 5.2 percent to 98.7 and is 0.9 percent below a year ago.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

SOURCE: National Association of Realtors® 2011

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NEW HOME SALES SLIDE IN JANUARY 2011

March 02, 2011

Sales of new U.S. home fell significantly in January, a troubling sign after the worst year for the housing sector in nearly half a century.  New home sales dropped to a seasonally adjusted rate of 284,000 homes in January 2011, the Commerce Department reported.  That's down from 325,000 in December 2010 and less thtn half the 600,000-a-year pace that economists generally view as healthy.

Last year, 2010, was the fifth straight year that new home sales have declined after hitting record highs during the housing boom.  Buyers purchased 322,000 new homes last year, the smallest annual total on records going back 47 years.  Economists say it could take years before sales return to a healthy pace.

Here's a snapshot view of U.S. new home sales in January 2011:

WEST - sales fell 36.5% 

SOUTH - sales fell 12.8%

MIDWEST - rose 17.1%

NORTHEAST - rose 54.5%

 The median sales price of a new home sold in January 2011 was $230,600, down 1.9% from the month before.

 

 

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KEEP YOUR HOME CALIFORNIA PROGRAM NOW FULLY IMPLEMENTED


February 17, 2011

Keep Your Home California program now fully implemented


The California Housing Finance Agency announced last week that it has fully implemented four programs to fight the ongoing foreclosure crisis in California, with the primary goal to help families remain in their homes.

The programs, under the umbrella title of Keep Your Home California, are federally funded as part of the U.S. Treasury Dept.’s Hardest Hit fund, and are aimed at helping low and moderate income homeowners struggling to pay their mortgages amid the worst real estate crisis in decades.  California received a total of nearly $2 billion through the Hardest Hit fund. After consulting with community leaders throughout the state, four programs were created to assist California families.
Specifically, the Keep Your Home California programs provide:
    •    Mortgage assistance of up to $3,000 per month for unemployed homeowners who are in
imminent danger of defaulting on their home loans.
    •    Funds to help homeowners who have fallen behind on their mortgage payments due to a
temporary change in a household circumstance. The program will provide up to $15,000
per household to reinstate mortgages to prevent foreclosures.
    •    Money to reduce the principal owed on a mortgage for a home where the low or
moderate income homeowner is facing a serious financial hardship and owes
significantly more than the home is worth. The program requires lenders to match any
assistance provided by the Keep Your Home California program.

To apply for the assistance, homeowners should contact the Keep Your Home California call center toll-free at (888) 954-KEEP(5337) or their mortgage servicer – the company to which the borrower sends monthly mortgage payments. Each of the mortgage assistance programs requires the participation of the mortgage servicer.

As of Feb. 9, the following servicers are participating in all four Keep Your Home California programs:
    •    GMAC
    •    Guild Mortgage
    •    California Housing Finance Agency
    •    California Department of Veterans Affairs

Other servicers, including Bank of America, JPMorgan Chase, CitiMortgage and Wells Fargo are currently participating in some, but not all programs at this time. The list of participating servicers is expected to expand in the coming weeks.

SOURCE: California Association of Realtors

February, 16, 2011

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HOMEOWNERSHIP - STILL PART OF THE AMERICAN DREAM FOR MOST AMERICANS.

February 17, 2011

Americans still view homeownership as part of “American Dream”


Despite the turbulence in the housing market over the past several years and the high number of foreclosures and underwater homes in the current housing market, 70 percent of Americans still view homeownership as being part of their American Dream, according to a survey by Trulia.com. Nearly 80 percent of respondents say their homes are the best investment they ever made. Conversely, only 20 percent feel trapped in their “underwater” homes, while 14 percent said they would walk away from their homes in a heartbeat if they could.

Although many of today’s young adults came of age during the decline of housing market, 26 percent say their views on owning a home have become more positive over the past six months. With 88 percent of 18-34 year old renters aspiring to be homeowners, this new generation of buyers will likely play a crucial role in stabilizing today’s uncertain real estate market.

The overall health of the economy and unemployment numbers remain key drivers of consumer optimism in the housing market as well as the availability of credit / loans from the banking sector.

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HOME BUYER TAX CREDIT REPAYMENT STARTS FOR 2008 BUYERS.

February 17, 2011

Home buyer tax credit repayment starts for 2008 buyers
.

Most home buyers who claimed the federal tax credit of up to $7,500 for buying their first home in 2008 are required to start repaying the credit in 15 annual installments, beginning with their 2010 tax returns.
The tax credit, (which was offered for qualified home purchases in 2008, 2009, and 2010) has different repayment rules depending on when and under what circumstances the home was purchased. As tax season approaches, this may cause confusion among home buyers who received the tax credit.
The IRS is sending a letter to taxpayers who claimed the credit that explains if, when, and how the buyer has to repay the credit. There are different IRS letters for different situations, including a purchase of a home in 2008, 2009, or 2010; a sale of a main home; or a change in the use of the main home.

For more information on repayment requirements visit the IRS website at www.irs.gov

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CALIFORNIA $1,00,000 + HOME SALES ARE HEATING UP...

February 14, 2011

The high-end home market is heating up...

Most expensive home purchase in CA last year was a 35,000-square-foot-plus mansion on 2.2 acres in Bel-Air that sold for $50 million...

Last year, 22,529 homes sold statewide for $1 million-plus, a 21% increase from 2009, while total # of CA homes sold last year dropped 9%...

California homes priced @ $1 million or more experienced sales boom in '10 - 1st increase in 5 years as high-end home buyers find bargains

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PUBLISHER'S MUSE

February 13, 2011

Values
 
 
"When work, commitment, and pleasure all become one and you reach that deep well where passion lives, nothing is impossible." -Unknown
 
Warren Buffet once said ‘Price is what you pay.  Value is what you get.’  In this economic environment the question of price versus value is more relevant than ever.  At South Bay Digs, our ability to deliver on our value proposition to our customers is our ultimate quest - it’s our passion.  That’s why we continue to explore new ways to innovate and integrate the most relevant communication channels available to connect the home consumer to the local real estate professional.
 
We recently launched our free Open House Directory on www.SouthBayDigs.com - where realtors can upload their upcoming open houses and home consumers can stay abreast of open houses of interest.  We’ve also built a robust market research platform on our website, where consumers and realtors alike can deep dive local market trends and sign up for free real-time market reports in the neighborhoods of interest.  Our new QR Code technology allows you to use your phone to view property tours instantaneously and get detailed information on a specific property or other advertised offering.  We’re creating the South Bay’s only online real estate directory at www.SouthBayDigs.com that has detailed information on every active real estate professional in the area with contact information, bios and more.
 
Thanks to everyone who attended our launch party at the fabulous Lawrence Harris Residence in Hermosa Beach – a great time was had by all.  Be sure to read our feature profile on Growing Wild, a local floral business in Manhattan Beach who recently celebrated their 20th anniversary.  And don’t miss ‘The Fireplace Makeover’ on page 20 for a chance to sit by the fire and warm your soul.
 
Enjoy –
 
Warren J Dow
Publisher
wdow@southbaydigs.com
310-373-0142

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WELCOME TO SOUTH BAY DIGS!

September 08, 2010

7 Comments