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I can help you market or locate any home in San Diego, Orange, Riverside or Los Angeles county...Let's start now! (619) 888-3322
California Association Of Realtors Newsline 2005
Wednesday, January 31, 2007
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
CALIFORNIANS QUICK TO VOTE, RELUCTANT TO PAY
CONSUMER CONFIDENCE IMPROVES IN JANUARY
C.A.R. REPORTS HOME SALES DECREASE 15.3 PERCENT IN DECEMBER
RESIDENTIAL CONSTRUCTION SPENDING, HOUSING STARTS SLOW IN DECEMBER
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FED HOLDS FEDERAL FUNDS RATE AT 5.25 PERCENT
The Federal Reserve's Federal Open Market Committee today announced it would maintain the target for the federal funds rate at 5.25 percent. This is the fifth consecutive month the committee opted to keep the key rate unchanged, following gradual increases 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.
In a prepared statement, the Fed acknowledged positive signs for moderate economic growth in the coming months, including the stabilizing housing market, but still cautioned that some inflation risks remain. Future interest rate increases "will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information," according to the statement.
http://www.federalreserve.gov/boarddocs/press/monetary/2007/20070131/~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CALIFORNIANS QUICK TO VOTE, RELUCTANT TO PAY
While California voters in November approved five bond issues-covering issues like flood protection and highway rehabilitation--worth $43 billion, a new study details the disparity between the public services the state's residents want and their willingness to pay for them. Published by the Public Policy Institute of California, "Fiscal Realities: Budget Tradeoffs in California Government" shows that Californians would have to make significant tradeoffs to achieve their budget priorities. For instance, more than 70 percent of residents say educational initiatives, such as smaller and more effective K-12 classes, top their list of concerns. However, such initiatives would cost California governments an additional $15 billion per year, and the required funding would come from unwanted tax increases or other unpopular tradeoffs. Californians currently pay approximately 20 percent more per capita for public services than the rest of the nation; however, the sheer size of the state's population is a major factor underlying the cost differential. http://www.ppic.org/content/pubs/report/R_107TGR.pdf~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CONSUMER CONFIDENCE IMPROVES IN JANUARY
American consumers continued to indicate a higher level of confidence in the nation's economy this month, due in part to a more favorable job market, The Conference Board recently reported. The organization's Consumer Confidence Index increased for the second consecutive month in January, rising to 110.3 (1985=100). Also in January, the Present Situation Index increased to 133.9, while the Expectations Index declined to 94.5. Together, the three indexes suggest moderate economic growth during the first quarter of 2007. Despite the current level of consumer confidence, consumers' outlook for the coming months is less positive, as indicated by the falling Expectations Index. According to the report, fewer consumers anticipate business conditions or their wages to improve in the near term. "This month's slight increase in confidence was solely the result of an improvement in the Present Situation Index, fueled primarily by a more favorable job market," said Lynn Franco, director of The Conference Board Consumer Research Center. "Looking ahead, however, consumers are not as optimistic as they were in December." http://www.conference-board.org/economics/consumerConfidence.cfm~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. REPORTS HOME SALES DECREASE 15.3 PERCENT IN DECEMBER
The median price of an existing single-family home in California increased 3.7 percent in December and sales decreased 15.3 percent compared with the same period a year ago, C.A.R. recently reported. "The market continues to level out as buyers and sellers search for common ground in today's more balanced environment," said C.A.R. President Colleen Badagliacco. "The number of homes for sale peaked in June and July and has since edged downward. Although time on the market remains higher than it was a year ago, competitively priced homes continue to sell well." According to the report, the median price of an existing, single-family detached home in California during December 2006 was $567,690, a 3.7 percent increase over the revised $547,400 median for December 2005. Also last month, closed escrow sales of existing, single-family detached homes in California totaled 450,550 at a seasonally adjusted annualized rate, down 15.3 percent compared with the sales pace recorded one year earlier and down 0.1 percent from home resale activity in November. "Year-over-year sales declined in most regions last month, albeit at a lesser pace then what we experienced earlier this year," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "The price picture across the state continues to be mixed. Increases were strongest in urban areas that experienced relatively less new home building or strong economic growth in recent years. Prices were weakest where there has been robust home building activity or in those areas of the state that were popular with second-home buyers." http://www.conference-board.org/economics/consumerConfidence.cfm~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
RESIDENTIAL CONSTRUCTION SPENDING, HOUSING STARTS SLOW IN DECEMBER
The annual pace of construction spending continued its nine-month slowdown in December, falling 1.4 percent from a year ago to a seasonally adjusted annual rate of $1.18 trillion, according to a recent report from the U.S. Census Bureau. Residential construction spending declined 12.3 percent compared with one year earlier, standing at a rate of $591 billion, while the value of nonresidential construction activity rose 12.7 percent to a rate of $586.6 billion, according to the report. In California, data from the California Building Industry Association (CBIA) report a similar decline, with new-home construction during December falling 44 percent when compared with the construction pace recorded during December 2005. Based on the number of building permits issued, 10,652 new housing units were started throughout the state in December. While multifamily construction remained strong during the second half of 2006, single-family construction was down 31 percent for the year. http://www.cbia.ws/index.cfm?pageid=1388&preview=yes ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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 1/25: 30-yr. fixed: 6.25%; Fees/points: 0.4% 15-yr. fixed: 5.98%; Fees/points: 0.4% 1-yr. adjustable: 5.49%; Fees/points: 0.5% (Source: Freddie Mac) C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 200,000 REALTORS® statewide. Edited by Mark Giberson, markg@car.org and Amanda Hopkins, Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, January 24, 2007
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® The U.S. leading index ended 2006 on a high note, increasing 0.3 percent in December to 138.0 (1996=100), The Conference Board reported yesterday. While declining housing permits negatively impacted the leading index throughout most of 2006, a higher level of building activity contributed to December's increase. Other positive contributors included unemployment claims, real money supply, stock prices, vendor performance, and manufacturers' orders for nondefense capital goods. A key barometer of economic conditions, the leading index suggests 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 December. The coincident index edged up 0.2 percent to 123.3, while the lagging index rose 0.9 percent to 127.3. http://www.conference-board.org/economics/bci/pressRelease_output.cfm?cid=1
BUILDING PERMIT ACTIVITY HELPS BOOST U.S. LEADING INDEX
HOUSING STARTS DECLINE AS BUILDERS TRY TO REDUCE INVENTORIES
REAL ESTATE NEWS AND VIDEO CLIPS NOW AVAILABLE ON C.A.R. ONLINE
MORTGAGE LOAN APPLICATION VOLUME DECREASES
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BUILDING PERMIT ACTIVITY HELPS BOOST U.S. LEADING INDEX
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HOUSING STARTS DECLINE AS BUILDERS TRY TO REDUCE INVENTORIES
Unseasonably warm weather helped elevate last month's total housing starts to a seasonally adjusted annual rate of 1.64 million units, according to figures recently released from the U.S. Dept. of Commerce. The December construction pace was up 4.5 percent from November but down 18 percent from a year ago. Single-family starts decreased 24.7 percent from December 2005, to a rate of 1.23 million units, while starts for multifamily construction rose 3.6 percent to a rate of 350,000. As buying conditions improve, home builders are reducing their inventory levels before starting new single-family homes, according to a National Association of Home Builders (NAHB) report. "The improvement in market conditions, coupled with the drop in single-family housing starts, indicates that builders are working to control their inventories and positioning themselves for the upcoming spring buying season," said NAHB President David Pressly. The construction pace for single-family housing units declined across the nation in December, falling 26.4 percent in the Midwest, 26.3 percent in the South, 23.5 percent in the West, and 14 percent in the Northeast. http://www.nahb.org/news_details.aspx?newsID=3941
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REAL ESTATE NEWS AND VIDEO CLIPS NOW AVAILABLE ON C.A.R. ONLINE
C.A.R. Online (www.car.org) now features video clips of the latest real estate news captured from local and cable TV, as well as links to industry news from major publications statewide and around the nation. Available under "Today's Stories" on the home page, these news items cover topics such as mortgage fraud, home remodeling trends, market demographics, and other current topics in the media. http://www.car.org/~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
MORTGAGE LOAN APPLICATION VOLUME DECREASES
The Market Composite Index, a measure of mortgage loan application volume, was 611.3 for the week ending Jan. 19, down 8.4 percent on a seasonally adjusted basis from 667.2 one week earlier, The Mortgage Bankers Association reported today. On an unadjusted basis, the index decreased 5.7 percent for the week ending Jan. 19 compared with the previous week and was up 3.8 percent compared with the same week one year earlier. The refinance share of mortgage activity decreased to 47.8 percent of total applications for the week ending Jan. 19 from 49.9 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 20.3 percent of total applications from 21.2 percent the previous week. http://www.mortgagebankers.org/NewsandMedia/PressCenter/47886.htm ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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 1/18: 30-yr. fixed: 6.23%; Fees/points: 0.4% 15-yr. fixed: 5.98%; Fees/points: 0.4% 1-yr. adjustable: 5.51%; Fees/points: 0.5% (Source: Freddie Mac) C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 200,000 REALTORS® statewide. Edited by Mark Giberson and Amanda Hopkins, Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
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Wednesday, January 17, 2007
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
PRESIDENT BUSH SIGNED TAX BILL WITH REAL ESTATE PROVISIONS
UPTREND IN BUILDER CONFIDENCE CONTINUES
CALIFORNIA HOUSING SHORTAGE TO CONTINUE IN 2007
FORECLOSURE ACTIVITY RISES IN MOST STATES
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PRESIDENT BUSH SIGNED TAX BILL WITH REAL ESTATE PROVISIONS
In December 2006, President Bush signed the Tax Relief and Health Care Act of 2006 (H.R. 6111), a wide-ranging bill covering tax, trade, energy, and health care issues. Several provisions in the bill are of interest to REALTORS®, including provisions that renew and extend through 2007 the NAR-supported tax deduction for brownfields cleanup expenses. The provision also allows property owners to deduct the cost of cleaning up petroleum contamination. A separate provision extends through Dec. 31, 2007, the 15-year recovery period for leasehold improvements made by or on behalf of tenants of non-residential real estate. Some home buyers also may be impacted by a mortgage insurance premium provision of the Tax Relief and Health Care Act of 2006. The provision creates a limited deduction for private mortgage insurance (PMI) premiums that only applies to policies issued in 2007 for homes purchased in 2007. It is available to home buyers with less than $100,000 adjusted gross income on a joint or single tax return. For more information about the PMI provision, visit http://www.realtor.org/fedistrk.nsf/files/pmideduction1206.pdf/$FILE/pmideduction1206.pdf. http://www.realtor.org/fedistrk.nsf/files/06extenders.pdf/$FILE/06extenders.pdf ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
UPTREND IN BUILDER CONFIDENCE CONTINUES
Buoyed by improved buyer demand, the confidence level of the nation's home builders continued its slow but steady climb in January, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The seasonally adjusted HMI stands at 35 this month, up two points from December and at its highest level since July 2006. An HMI below 50 indicates more builders view sales conditions as poor versus good. "The same factors that were evident at the end of 2006 continue to hold true in today's housing market â€" improving affordability measures, strengthening consumer assessments of home buying conditions and an upswing in applications for mortgages to buy homes," said NAHB Chief Economist David Seiders. "Builders are starting to see that the worst is behind them and that buying conditions have improved to the point that greater optimism is warranted." Two of the three HMI components increased this month. The components measuring current sales of single-family homes and buyer traffic each gained three points to 36 and 26, respectively, while the component gauging sales expectations remained unchanged at 49. Builder confidence improved or remained unchanged across the country in January, according to the report. http://www.nahb.org/news_details.aspx?newsID=3939&print=false~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ CALIFORNIA HOUSING SHORTAGE TO CONTINUE IN 2007
Housing production in the Golden State is expected to remain at "normal" levels this year, with home builders producing 155,000 to 170,000 units by the end of 2007, according to the "2007 Housing Forecast" released by the California Building Industry Association (CBIA). Approximately 70 percent of the housing permits issued are expected to be for single-family homes, while the remaining housing starts will be apartments and condominiums. Though the pace of new construction is likely to exceed production levels from the 1990s through 2001, the forecasted starts will fall short of the state's total demand for housing. "We need to be building about 240,000 new homes, condos, and apartments a year to meet the need for housing. The problem is that we need new homes in all price ranges, and given the ever-rising fees and constraints on housing, it's all but impossible to meet the need in the entry-level market, where the need's the greatest," said CBIA Chief Economist Alan Nevin. http://www.cbia.org/index.cfm?pageid=1381&preview=yes ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
FORECLOSURE ACTIVITY RISES IN MOST STATES
The number of foreclosure filings across the nation exceeded 100,000 for the fifth consecutive month in December, with foreclosure activity up year-ago levels in all but 13 states, according to RealtyTrac's "December 2006 U.S. Foreclosure Market Report." In California, monthly foreclosures were down 34.4 percent from November but up nearly 65 percent from December 2005. Rising interest rates on adjustable-rate mortgages and slower home sales continue to impact foreclosure activity throughout the U.S., according to the report. The national foreclosure rate in December 2006 was one new filing for every 1,055 households. http://www.realtytrac.com/ContentManagement/PressRelease.aspx?ItemID=1742 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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 1/11: 30-yr. fixed: 6.21%; Fees/points: 0.4% 15-yr. fixed: 5.96%; Fees/points: 0.4% 1-yr. adjustable: 5.44%; Fees/points: 0.5% (Source: Freddie Mac) C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 200,000 REALTORS® statewide. Edited by Mark Giberson and Amanda Hopkins, Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, January 03, 2007
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
RESIDENTIAL CONSTRUCTION SPENDING, HOUSING STARTS CONTINUE TO SLOW
CONSUMER CONFIDENCE HITS EIGHT-MONTH HIGH
MORTGAGE LOAN APPLICATIONS INCREASE
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RESIDENTIAL CONSTRUCTION SPENDING, HOUSING STARTS CONTINUE TO SLOW
The annual pace of construction spending in November was nearly unchanged from a year ago, increasing 0.1 percent to a seasonally adjusted rate of $1.18 trillion, the U.S. Census Bureau reported today. Residential construction spending continued its eight-month slowdown, declining 11 percent to a rate of $598 billion, while nonresidential construction activity rose 14.7 percent to a rate of $586 billion, according to the report. Data from the California Building Industry Association (CBIA) also showed a decline in residential housing production. In November, single-family housing starts in the Golden State were down 38 percent from the construction pace recorded one year earlier, with production drops in San Diego, Sacramento, and Riverside/San Bernardino accounting for much of the decline. Despite continued strength in the multifamily sector, total housing production through the first 11 months of 2006 was down 22 percent compared with the previous year. With these trends, builders will not achieve the 180,000 housing units projected for 2006, according to the report. http://www.cbia.ws/index.cfm?pageid=1379&preview=yes~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CONSUMER CONFIDENCE HITS EIGHT-MONTH HIGH
Following a two-month decline, the confidence level of the nation's consumers took an upward turn in December, according to a recent report from The Conference Board. The Consumer Confidence Index improved to 109.0 (1985=100) last month, up from 105.3 in November and nearly reaching the last high of 109.8, which was achieved in April. Also in December, the Present Situation and Expectations indexes increased to 129.9 and 95.1, respectively. "Despite the latest improvement in the Index, there is little to suggest that the pace of economic activity in the final quarter of 2006 is anything but moderately better than its uninspiring performance earlier this year," said Lynn Franco, director of The Conference Board Consumer Research Center. "Given the see-saw pattern in recent months, it is too soon to tell if this boost in confidence is a genuine signal that better times are ahead." http://www.conference-board.org/economics/consumerConfidence.cfm~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
MORTGAGE LOAN APPLICATIONS INCREASEThe Market Composite Index, a measure of mortgage loan application volume, increased 3.6 percent to 575.6 on a seasonally adjusted basis for the week ending Dec. 29 compared with 555.8 one week earlier, according to a report released today by the Mortgage Bankers Association (MBA). On an unadjusted basis, the Index decreased 27.4 percent for the week ending Dec. 29 compared with the previous week and was up 6.9 percent compared with the same week one year earlier. The refinance share of mortgage activity decreased to 48.1 percent of total applications for the week ending Dec. 29 from 48.8 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 20.4 for the week ending Dec. 29 from 23.1 percent of total applications from the previous week. The ARM share is at its lowest level since July 2003. The average contract interest rate for 30-year, fixed-rate mortgages increased to 6.22 for the week ending Dec. 29 from 6.12 percent, with points decreasing to 0.92 from 0.96 (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 5.93 percent for the week ending Dec. 29 from 5.84 percent, with points decreasing to 1 from 1.06 (including the origination fee) for 80 percent LTV loans. The average contract interest rate for one-year ARMs decreased to 5.84 percent for the week ending Dec. 29 from 5.87, with points increasing to 0.83 from 0.8 (including the origination fee) for 80 percent LTV loans, according to the report. http://www.mortgagebankers.org/NewsandMedia/PressCenter/47190.htm~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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 12/28: 30-yr. fixed: 6.18%; Fees/points: 0.4% 15-yr. fixed: 5.93%; 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 200,000 REALTORS® statewide. Edited by Mark Giberson, and Amanda Hopkins Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Wednesday, December 28, 2005
Brought to you by the California Association of REALTORS® and ********************************************************************************
C.A.R. REPORTS SALES DECREASE 11.2 PERCENT IN NOVEMBER
CONSUMERS REMAIN CONFIDENT ABOUT THE OUTLOOK FOR 2006
AMERICANS MORE COMFORTABLE WITH ONLINE TRANSACTIONS
HOUSING STARTS DECLINE IN THE GOLDEN STATE
CALIFORNIA REMAINED THE MOST POPULOUS STATE IN 2005 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. REPORTS SALES DECREASE 11.2 PERCENT IN NOVEMBER
The median price of an existing home in California in November increased 16.2 percent and sales decreased 11.2 percent compared with the same period a year ago, C.A.R. recently reported. The median price of an existing, single-family detached home in California during November 2005 was $548,400, 16.2 percent above the $471,980 median for November 2004 and 1.8 percent higher than October's $538,770 median price.
Closed escrow sales of existing, single-family detached homes in California totaled 579,560 in November 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 11.2 percent from the 652,340 sales pace recorded in November 2004.
"While year-to-date sales in November were 1.7 percent above last year's pace, we are starting to see the 'soft landing' we have been expecting," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "The year-to-year decline in sales is not surprising, given the market was so strong in November 2004. Additionally, rising mortgage interest rates, which have moved above 6 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CONSUMERS REMAIN CONFIDENT ABOUT THE OUTLOOK FOR 2006
Consumer confidence continued to rebound in December and is now at its highest level since Hurricane Katrina devastated the Gulf Coast in late August, according to The Conference Board's Consumer Confidence Index. The Index rose 5.3 points this month and now stands at 103.6 (1985=100). The Present Situation and Expectations indices also increased, climbing to 121.5 and 91.6, respectively.
According to The Conference Board's report, lower gas prices and an improved job outlook continue to boost consumers' confidence. In December, the proportion of consumers claiming jobs are "hard to get" declined while those who said jobs are "plentiful" increased. Additionally, those expecting business conditions to improve in the coming months outnumber those who ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
AMERICANS MORE COMFORTABLE WITH ONLINE TRANSACTIONS
Nearly 25 million Americans now use the Internet to sell unwanted possessions online, according to a recent survey by the Pew Internet & American Life Project. Attracted by the convenience and wide distribution available through the Internet, consumers are turning to online classified ad Web sites, such as Craigslist.org, and online auction sites in lieu of more traditional sales vehicles, including yard sales and classified ads in newspapers, to sell their personal items.
According to the survey, those who sell goods and services online tend to be male, in their 30s and well-educated. Additionally, online sellers generally have high-speed Internet connections and use the Internet on a daily basis. On a typical day, 2 percent of Internet users sell ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HOUSING STARTS DECLINE IN THE GOLDEN STATE
Construction of new homes in California decreased during November 2005, falling 23.6 percent when compared with the same period one year earlier, the California Building Industry Association (CBIA) recently reported. As measured by building permits, 14,021 new housing units were started throughout the state last month, with single-family units accounting for 67.1 percent of the starts. According to the report, single-family construction was the strongest in the Riverside-San Bernardino-Ontario, Sacramento-Arden-Roseville and Los Angeles- Long Beach-Glendale regions.
During the first 11 months of 2005, California housing starts totaled 193,562, nearly unchanged from the 193,652 starts during the same period in 2004. "We anticipate that 2005 will conclude with figures matching 2004, which was a very good year for the industry," said CBIA Chief ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CALIFORNIA REMAINED THE MOST POPULOUS STATE IN 2005
The population of the U.S. grew by 2.8 million people between July 1, 2004, and July 1, 2005, according to a recent report by the U.S. Census Bureau. More than 296 million people reside in the nation, and the 10 most populous states, led by California with 36.1 million residents, account for 54 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 2004 and 2005 are in the West, including Nevada, Arizona, Idaho, Utah and Oregon. With a growth rate of 3.5 percent, Nevada remained the nation's ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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 12/22:
30-yr. fixed: 6.26%; Fees/points: 0.6%
15-yr. fixed: 5.79%; Fees/points: 0.6%
1-yr. adjustable: 5.22%; 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 180,000 REALTORS® statewide.
Edited by Mark Giberson
Copyright © 2005 California Association of REALTORS® (C.A.R.)
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Wednesday, December 21, 2005
Brought to you by the California Association of REALTORS® and ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ U.S. HOUSING STARTS UP 17.5 PERCENT
HOMEBUILDER CONFIDENCE CONTINUES TO DECLINE
INSURANCE COMMISSIONER VOWS TO LOWER TITLE INSURANCE COSTS
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U.S. HOUSING STARTS UP 17.5 PERCENT
Following a slight dip in October 2005, the seasonally adjusted annual rate for privately-owned housing starts in November rose to 2.12 million units, according to a report released by the U.S. Dept. of Commerce. The November construction pace was up 17.5 percent from a year ago. Single-family housing starts increased 4.8 percent from October 2005 to a rate of 1.81 million units, while starts for buildings with five or more units reached 277,000. The number of building permits issued, which can be an indicator of future building activity, rose 3 percent from one year ago to a seasonally adjusted annual rate of 2.16 million permits.
Regionally, the West posted the largest increase in housing starts when compared with one year earlier, climbing 21.6 percent, while the construction pace in the Midwest was up 17.3 percent. The rate for privately-owned housing starts also rose in the South and Northeast, increasing 16.2 percent and 12.4 percent, respectively.
http://www.census.gov/const/newresconst_200511.pdf
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HOMEBUILDER CONFIDENCE CONTINUES TO DECLINE
Higher interest rates and rising energy costs helped push the confidence level of the nation's homebuilders to a 44-month low in December, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). Following November's reading of 61, this month the seasonally adjusted HMI decreased four points to 57. While an HMI above 50 indicates that more builders view sales conditions as good versus poor, the HMI has not been lower than 60 since April 2003. Prior to September 2005, the HMI remained within a 67 to 71 confidence range for 17 consecutive months.
Two of the HMI's three components decreased in December. The component measuring current sales activity fell four points to 63, while the confidence gauge for the traffic of prospective buyers decreased seven points to 39. The index assessing builder confidence for future sales remained unchanged at 65. Regionally, the HMI remains the highest in the West, where the index stands at 74.
http://www.nahb.org/news_details.aspx?newsID=1649&print=false~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
INSURANCE COMMISSIONER VOWS TO LOWER TITLE INSURANCE COSTS
Following the release of a report concluding that title insurance and escrow services are overpriced in California, Insurance Commissioner John Garamendi announced plans to take a closer look at price competition in the industry in the coming year. Commissioned by Garamendi and titled "Report to the California Insurance Commissioner: An Analysis of Competition in the California Title Insurance and Escrow Industry," the study found that three firms control more than 75 percent of the market, and in most California counties, three or fewer firms control more than 90 percent of the market. Additionally, even though production costs have fallen and home prices have increased, title insurance costs to consumers have risen, according to the report.
Garamendi stated that the report's findings confirm California home buyers are overcharged for title insurance services. To help lower costs, he plans to hold formal hearings in January 2006 to further assess competition within the industry.
http://www.insurance.ca.gov/0400-news/0100-press-releases/0080-2005/release-118-05.cfm~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - Oct. 05: $538,770 (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 Oct. 05:
Santa Barbara So. Coast $1,225,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region Oct. 05:
High Desert $315,870 (Source: C.A.R.)
Mortgage rates - week ending 12/15:
30-yr. fixed: 6.30%; Fees/points: 0.5%
15-yr. fixed: 5.85%; Fees/points: 0.5%
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 © 2005 California Association of REALTORS® (C.A.R.)
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Wednesday, December 14, 2005
Brought to you by the California Association of REALTORS® and *********************************************************************************************************
HOUSING AFFORDABILITY INDEX FALLS TO 15 PERCENT
FED RAISES TARGET FOR FEDERAL FUNDS RATE TO 4.25 PERCENT
HOUSING MARKET ROUNDS OUT RECORD YEAR
SURVEY REVEALS WHY DELINQUENT BORROWERS DON'T SEEK HELP
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HOUSING AFFORDABILITY INDEX FALLS TO 15 PERCENT
The percentage of households in California able to afford a median-priced home stood at 15 percent in October, a 4 percentage-point decrease compared with the same period a year ago when the Index was at 19 percent, according to a recent C.A.R. report. The October Housing Affordability Index (HAI) was unchanged from September, when it also stood at 15 percent.
C.A.R.'s monthly HAI measures the percentage of households that can afford to purchase a median-priced home in California. The index is the most fundamental measure of housing well-being in the state. At 25 percent, the High Desert region was the most affordable C.A.R. region in the state. The Northern Wine Country region was the least affordable in the state at 7 percent.
http://www.car.org/index.php?id=MzU2OTY=
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
FED RAISES TARGET FOR FEDERAL FUNDS RATE TO 4.25 PERCENT
The Federal Reserve's Open Market Committee raised the target for the federal funds rate by 25 basis points to 4.25 percent this week, marking the 13th 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.
"Despite elevated energy prices and hurricane-related disruptions, 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 2005, which tops last year's record, NAR recently reported in its year-end forecast. The Association also projects new home sales to rise 7.0 percent to 1.29 million units this year.
According to the forecast, the housing market will slow in the year ahead, leveling to a "more normal and balanced market." Despite a decline in sales activity, NAR anticipates the second best housing market on record in 2006. Next year, existing home sales are expected to decrease 3.7 percent to 6.84 million units, while new home sales are projected to fall 4.8 percent to 1.23 million units.
"The slowdown amounts to a tapping of the brakes on a hot market," said NAR Chief Economist David Lereah. "Home sales are coming down from a mountain peak, but they will level-out at a high plateau -- a plateau that is higher than previous peaks in to them to help avoid foreclosure on their homes, according to a recent study conducted by Freddie Mac and Roper Public Affairs and Media. While more than 75 percent of delinquent borrowers recall being contacted by their mortgage lender, many chose not to respond because they didn't believe their lender could help them, or they didn't have enough funds to make their payment. Embarrassment and fear also factored into the decision not to seek help.
Mortgage collectors typically explain repayment alternatives, such as forbearance or loan modifications, that can help delinquent borrowers avoid foreclosure. To pursue these options, however, borrowers must respond to phone calls and letters from collectors. More than 90 percent of the late-paying borrowers surveyed claim they would have talked to their lenders ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - Oct. 05: $538,770 (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 Oct. 05:
Santa Barbara So. Coast $1,225,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region Oct. 05:
High Desert $315,870 (Source: C.A.R.)
Mortgage rates - week ending 12/8:
30-yr. fixed: 6.32%; Fees/points: 0.6%
15-yr. fixed: 5.87%; Fees/points: 0.6%
1-yr. adjustable: 5.16%; 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 180,000 REALTORS® statewide.
Edited by Mark Giberson
Copyright © 2005 California Association of REALTORS® (C.A.R.) ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Wednesday, December 07, 2005
Brought to you by the California Association of REALTORS® and David Breidenbach, 619-888-3322, www.BreidyPropertiesInc.com
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CALIFORNIA HOMESELLERS RELY ON INTERNET
PENDING HOME SALES DIP TO SEVEN-MONTH LOW
THIRD QUARTER CALIFORNIA LUXURY HOME VALUES POST DOUBLE-DIGIT GAINS
CALIFORNIA VOTERS DISCONTENTED WITH STATE LEADERS
RATE OF CONSTRUCTION SPENDING REMAINS ABOVE $1 TRILLION
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CALIFORNIA HOMESELLERS RELY ON INTERNET
The percentage of sellers using the Internet as a significant part of the homeselling process exceeded 50 percent for the first time ever, according to C.A.R.'s "2005 Survey of California Home Sellers." In 2005, 57 percent of homesellers relied on the Internet to obtain a variety of information, including comparable prices and other information about the housing market, up from 47 percent in 2004.
The study also shows a link between effective communication, a satisfactory homeselling experience and client loyalty. Seller dissatisfaction with agents increased in 2005 compared with 2004, with discontent typically resulting from communication issues between the seller and the agent. However, more than 75 percent of homesellers indicate they would turn to the same real estate professional for assistance with future transactions.
http://www.car.org/index.php?id=MzU2NzM=
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
PENDING HOME SALES DIP TO SEVEN-MONTH LOW
The Pending Home Sales Index (PHSI) declined to its lowest level since March 2005, indicating modest slowing in the 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 October, the PHSI decreased 3.3 percent to 123.8 from the reading one year earlier, and fell 3.2 percent below September's reading of 127.9. 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 1.2 percent from one year earlier to 135.4. In the West, the PHSI fell 2 percent to 134.8. The Midwest and Northeast regions also experienced annual declines, falling to 112.2 and 101.8, respectively.
http://www.realtor.org/publicaffairsweb.nsf/Pages/OctPHS2005
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
THIRD QUARTER CALIFORNIA LUXURY HOME VALUES POST DOUBLE-DIGIT GAINS
Despite signs that the market is slowing, luxury home prices in Los Angeles, San Francisco and San Diego reached record highs during the third quarter of 2005, according to the First Republic Prestige Home Index', which tracks homes valued at more than $1 million in key California markets. In Los Angeles, the value of high-end homes continued to appreciate at a quicker pace than other markets in the state, with prices climbing 17 percent compared with the third quarter of 2004.
The values of luxury homes in San Francisco and San Diego also recorded double-digit gains last quarter, rising 12.9 percent and 11.6 percent, respectively. According to the index, the average luxury home in San Francisco is now valued at a record $2.85 million, the highest average luxury home value in the state, while the average luxury home value in San Diego has nearly doubled in the last five years, rising to $2.07 million during the third quarter of 2005.
http://www.firstrepublic.com/lend/residential/prestigeindex/index.html
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CALIFORNIA VOTERS DISCONTENTED WITH STATE LEADERS
Voters' confidence in state leaders, including Governor Schwarzenegger and the California legislature, has declined in the weeks following the special election held on Nov. 8, according to a recent survey by the Public Policy Institute of California. More than 75 percent of special election voters disapprove of the way the executive and legislative branches of government are working together to develop public policy, and 72 percent believe the state's initiative process needs to be reformed.
With regard to the special election, 51 percent of voters were unhappy with the experience, citing complicated wording on the ballot and pricey initiative campaigns as reasons for their discontent. Overall, 60 percent of voters felt the special election was a "bad idea," compared with 36 percent who thought it was a "good idea."
http://ppic.org/main/pressrelease.asp?i=596
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
RATE OF CONSTRUCTION SPENDING REMAINS ABOVE $1 TRILLION
The annual pace of construction spending topped $1 trillion for the 16th consecutive month in October 2005, rising 7.9 percent to a seasonally adjusted annual rate of $1.13 trillion, according to a recent report by the U.S. Census Bureau. Construction spending totaled $930.9 billion during the first 10 months of the year, up 8.8 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 October 2005 increased 8.3 percent over the previous year to reach a rate of $636.8 billion. The value of nonresidential construction put into place in October rose 7.4 percent to a rate of $494.9 billion, according to the report.
http://www.census.gov/const/C30/release.pdf
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - Oct. 05: $538,770 (Source: C.A.R.)
Calif. affordability index - Sept. 05: 15 percent (Source: C.A.R.)
Calif. highest median home price by C.A.R. region Oct. 05:
Santa Barbara So. Coast $1,225,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region Oct. 05:
High Desert $315,870 (Source: C.A.R.)
Mortgage rates - week ending 12/1:
30-yr. fixed: 6.26%; Fees/points: 0.5%
15-yr. fixed: 5.81%; Fees/points: 0.5%
1-yr. adjustable: 5.16%; 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 180,000 REALTORS® statewide.
Edited by Mark Giberson Copyright © 2005 California Association of REALTORS® (C.A.R.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Wednesday, November 30, 2005
Brought to you by the California Association of REALTORS® and David Breidenbach, 619-888-3322, www.BreidyPropertiesInc.com
***********************************************************************************************************
REVISED CONFORMING LOAN LIMITS FALL SHORT
C.A.R. REPORTS MEDIAN HOME PRICE INCREASED 17.2 PERCENT IN OCTOBER
HOUSING STARTS DECLINE IN THE GOLDEN STATE
REMODELING MARKET SLOWS
LOWER GAS PRICES HELP RESTORE CONSUMER CONFIDENCE
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REVISED CONFORMING LOAN LIMITS FALL SHORT
More than 28,590 families in California will be able to benefit from Fannie Mae's and Freddie Mac's recent announcements that each will increase its single-family mortgage loan limit from $359,650 to $417,000 in 2006, according to an analysis by C.A.R.
"While this is good news for many home buyers, Fannie Mae's and Freddie Mac's new loan limits do not go far enough to benefit most home buyers in California," said C.A.R. President Vince Malta. "Conforming loan limits need to more accurately reflect the cost of housing in California, where the median price of a home is more than double that of the nation."
The current median home price in California is $538,770, more than 29 percent higher than the national conforming loan limit of $417,000. In addition, California has 19 counties with a median home price above the national conforming loan limit.
http://www.car.org/index.php?id=MzU2NjQ= ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. REPORTS MEDIAN HOME PRICE INCREASED 17.2 PERCENT IN OCTOBER
The median price of an existing, single-family detached home in California during October 2005 was $538,770, a 17.2 percent increase over the revised $459,530 median for October 2004, C.A.R. reported. The October 2005 median price decreased 1 percent compared with September's $543,980 median price.
"While California is still experiencing year-over-year double-digit price appreciation, prices are starting to level off compared with the statewide peak reached in August 2005," said C.A.R. President Vince Malta. "Regionally, the median price continues to post strong gains, with the High Desert, Riverside/San Bernardino, and San Luis Obispo regions hitting record highs last month."
Closed escrow sales of existing, single-family detached homes in California totaled 621,530 in October 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 2.8 percent from the 639,570 sales pace recorded in October 2004.
http://www.car.org/index.php?id=MzU2NjE=
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HOUSING STARTS DECLINE IN THE GOLDEN STATE
New-home construction in California decreased during October 2005, falling 15.8 percent when compared with October 2004, the California Building Industry Association (CBIA) recently reported. Last month, 14,425 new housing units were started throughout the state, with single-family units accounting for 77 percent of the starts. Despite the decline, homebuilders are expected to produce 213,000 housing units in 2005, exceeding the 15-year high recorded in 2004.
During the first 10 months of 2005, California housing starts totaled 178,945, a 2.1 percent increase compared with the same period one year earlier. According to the report, single-family construction was the strongest in the Riverside-San Bernardino-Ontario and Sacramento-Arden-Roseville regions.
http://www.cbia.org/index.cfm?pageid=1213&preview=yes~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
REMODELING MARKET SLOWS
While remodeling activity remains strong for owner-occupied housing units, a sharp decline in remodeling expenditures for rentals slowed the growth of the remodeling market during third quarter of 2005, according to the National Association of Home Builders' Remodeling Market Index (RMI). The current market conditions index, based on existing home additions, alterations and repairs being completed, declined one and a half points to 50.9, 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 from 52.8 to 51.8. Indices above 50 indicate a positive outlook on behalf of re-modelers.
Regionally, the RMI increased from 44.7 to 50.2 in the Midwest but decreased in other areas of the country. In the Northeast, the RMI fell more than 15 points to 43.6. In the West and South, the RMI dropped to 56.3 and 53.7, respectively.
http://www.nahb.org/news_details.aspx?newsID=1627~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
LOWER GAS PRICES HELP RESTORE CONSUMER CONFIDENCE
Following a sharp two-month decline, consumer confidence rebounded in November, according to The Conference Board's Consumer Confidence Index. The Index rose 13.7 points this month and now stands at 98.9 (1985=100). The Present Situation and Expectations Indices also increased, climbing to 114.0 and 88.8, respectively.
According to The Conference Board's report, lower gas prices and an improved job outlook helped improve consumers' confidence. In November, the proportion of consumers claiming current business conditions are "good" outnumbered those who feel business conditions are "bad." Additionally, consumers' outlook for future months is optimistic, based on expectations that business conditions will improve and more jobs will become available.
http://www.conference-board.org/economics/consumerconfidence.cfm **********************************************************************************************************
Fast Facts
Calif. median home price - Oct. 05: $538,770 (Source: C.A.R.)
Calif. affordability index - Sept. 05: 15 percent (Source: C.A.R.)
Calif. highest median home price by C.A.R. region Oct. 05:
Santa Barbara So. Coast $1,225,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region Oct. 05:
High Desert $315,870 (Source: C.A.R.)
Mortgage rates - week ending 11/23:
30-yr. fixed: 6.28%; Fees/points: 0.6%
15-yr. fixed: 5.81%; Fees/points: 0.6%
1-yr. adjustable: 5.14%; 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 165,000 REALTORS® statewide.
Edited by Mark Giberson
Copyright © 2005 California Association of REALTORS® (C.A.R.)
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Wednesday, November 23, 2005
Brought to you by the California Association of REALTORS® and David Breidenbach, 619-888-3322, www.BreidyPropertiesInc.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
SIX CALIFORNIA CITIES LISTED AMONG AMERICA'S 25 SAFEST
U.S. LEADING INDEX REVERSES THREE-MONTH DECLINE
E-MAIL, SEARCH ENGINES MOST POPULAR ONLINE ACTIVITIES
BUILDER CONFIDENCE DECLINES TO 42-MONTH LOW
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SIX CALIFORNIA CITIES LISTED AMONG AMERICA'S 25 SAFEST
For the second consecutive year, six cities in California -- more than any other state -- were listed among the nation's top 25 safest cities, according to Morgan Quitno Press, publisher of the 12th annual "City Crime Rankings." Based on 2004 crime statistics released by the FBI, the Golden State's "safest" cities are Mission Viejo (#4), Thousand Oaks (#7), Lake Forest (#9), Irvine (#13), Sunnyvale (#17) and Simi Valley (#22). Additionally, San Jose and San Diego are among the safest cities with populations of 500,000 or more, ranked first and sixth, respectively.
According to the report, Newton, Mass., is "America's Safest City," while Camden, N.J., is the nation's most dangerous city. Camden is joined at the bottom of the crime rankings by Detroit, Mich., St. Louis, Flint, Mich., and Richmond, Va.
http://www.morganquitno.com/xcit06pop.htm#25~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
U.S. LEADING INDEX REVERSES THREE-MONTH DECLINE
Following a sharp decline in September, the U.S. leading index increased 0.9 percent last month and now stands at 137.9 (1996=100), The Conference Board recently reported. Seven of the 10 indicators composing the leading index rose in October, including initial claims for unemployment insurance, average weekly manufacturing hours, vendor performance, real money supply, interest rate spread and manufacturers' orders for both nondefense capital goods and 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 October. The coincident index rose 0.1 percent to 120.7, while the lagging index climbed 0.8 percent to 121.2.
http://www.conference-board.org/economics/bci/pressRelease_output.cfm?cid=1 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
E-MAIL, SEARCH ENGINES MOST POPULAR ONLINE ACTIVITIES
Though e-mail remains the top online activity among American adults who use the Internet, search engines are closing in as users' primary Internet application, according to a recent report by the Pew Internet & American Life Project. On a typical day in September 2005, nearly 60 million Americans, or 41 percent of the Internet-using population, used search engines, an increase of 55 percent compared with the 38 million who used search engines in June 2004. The percentage of Internet users who send and receive e-mail on a typical day increased from 45 percent to 52 percent during the same time period.
According to the report, Americans who use search engines tend to be heavy Internet users, are more likely to have a high-speed Internet connection and spend a significant amount of time online each day. The most heavily used search engines are Google, Yahoo!, MSN and Ask Jeeves, and users have increasingly added "local qualifiers," such as ZIP codes and telephone numbers, to their searches.
http://www.pewinternet.org/pdfs/PIP_SearchData_1105.pdf~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
BUILDER CONFIDENCE DECLINES TO 42-MONTH LOW
Lower consumer confidence, rising interest rates and affordability issues all contributed to a decline in the confidence level of the nation's homebuilders this month, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). Following October's reading of 68, the seasonally adjusted HMI decreased eight points to 60 in November. While an HMI above 50 indicates that more builders view sales conditions as good versus poor, the HMI has not stood as low as 60 since May 2003.
All three of the HMI's components declined in November. The component measuring sales expectations for the coming months fell nine points to 64, while the confidence gauge for current sales activity decreased eight points to 66. The index assessing the traffic of prospective buyers dropped five points to 46. Regionally, the HMI remains the highest in the West, where the index stands at 78.
http://www.nahb.org/news_details.aspx?newsID=1621~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - Sept. 05: $543,980
(Source: C.A.R.)
Calif. affordability index - Sept. 05: 15 percent
(Source: C.A.R.)
Calif. highest median home price by C.A.R. region Sept. 05:
Santa Barbara So. Coast $1,475,000
(Source: C.A.R.)
Calif. lowest median home price by C.A.R. region Sept. 05:
High Desert $312,410
(Source: C.A.R.)
Mortgage rates - week ending 11/23:
30-yr. fixed: 6.28%; Fees/points: 0.6%
15-yr. fixed: 5.81%; Fees/points: 0.6%
1-yr. adjustable: 5.14%; 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 165,000 REALTORS® statewide.
Edited by Mark Giberson Copyright © 2005 California Association of REALTORS® (C.A.R.) ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Wednesday, November 16, 2005
Brought to you by the California Association of REALTORS® and David Breidenbach, 619-888-3322, www.BreidyPropertiesInc.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HOUSING AFFORDABILITY INDEX FALLS TO 15 PERCENT
HIGHER LEVEL OF DEBT ACCEPTED AS THE NORM
POST-KATRINA HOME SALES BOOST PENDING HOME SALES INDEX
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HOUSING AFFORDABILITY INDEX FALLS TO 15 PERCENT
The percentage of households in California able to afford a median-priced home stood at 15 percent in September, a 4 percentage-point decrease compared with the same period a year ago when the Index was at 19 percent, according to a recent C.A.R. report. The September Housing Affordability Index (HAI) increased 1 percentage point compared with August, when it stood at 14 percent.
C.A.R.'s monthly HAI measures the percentage of households that can afford to purchase a median-priced home in California. The index is the most fundamental measure of housing well-being in the state. At 26 percent, the High Desert region was the most affordable C.A.R. region in the state, followed by the Sacramento region at 20 percent. The Northern Wine Country region was the least affordable in the state at 7 percent.
http://www.car.org/index.php?id=MzU2MzU= ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HIGHER LEVEL OF DEBT ACCEPTED AS THE NORM
Consumers from all generations share the notion that a higher level of debt is now a part of everyday life, according to "Living With Debt: A Life Stage Analysis of Changing Attitudes and Behaviors," a report commissioned by Lending Tree. Many consumers, including college students, young families, empty nesters and seniors, attribute rising debt levels to the social pressure of maintaining a certain lifestyle. Additionally, spending on children and grandchildren is often cited as a key reason for taking on more debt.
Attitudes about homeownership also play a part in consumers' financial equation, with many treating home equity as a "financial security blanket," according to the report. Those under the age of 35 focus on purchasing a home to share in the "wealth effect" of owning real estate, while seniors are reluctant to cash-in on the home equity they have cumulated. Outside of homeownership, all age groups express a lack of skills for long-term financial planning.
http://www.lendingtree.com/livingwithdebt/collateral/news_release.pdf~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
POST-KATRINA HOME SALES BOOST PENDING HOME SALES INDEX
With a lift from post-Katrina home sales activity, the Pending Home Sales Index (PHSI) reached the second highest reading on record during September 2005, 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 September, the PHSI increased 3.3 percent to 128.8 from the reading one year earlier, and fell 0.3 percent below its highest level of 129.2, reached during August 2005. An index of 100 or more generally indicates a high level of home sales activity.
On a regional basis, the South led the nation with the highest PHSI at 139.1, a 6.3 percent increase above September 2004. The West and Northeast regions also experienced annual increases, posting indices of 136.7 and 110.4, respectively. In the Midwest, the PHSI fell 0.4 percent from one year ago and now stands at 119.7.
http://www.realtor.org/PublicAffairsWeb.nsf/Pages/SeptPHSI2005?OpenDocument ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - Sept. 05: $543,980 (Source: C.A.R.)
Calif. affordability index - Sept. 05: 15 percent (Source: C.A.R.)
Calif. highest median home price by C.A.R. region Sept. 05: Santa Barbara So. Coast $1,475,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region Sept. 05: High Desert $312,410 (Source: C.A.R.)
Mortgage rates - week ending 11/10:
30-yr. fixed: 6.36%; Fees/points: 0.5%
15-yr. fixed: 5.89%; Fees/points: 0.6%
1-yr. adjustable: 5.12%; 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 165,000 REALTORS® statewide.
Edited by Mark Giberson Copyright © 2005 California Association of REALTORS® (C.A.R.)
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Wednesday, November 09, 2005
Brought to you by the California Association of REALTORS® and David Breidenbach, 619-888-3322, www.BreidyPropertiesInc.com
GENERATIONAL DIFFERENCES IMPACT THE REMODELING MARKET
REALTORS® SUPPORT STATE EFFORTS TO RESTRICT USE OF EMINENT DOMAIN
BUILDER CONFIDENCE REBOUNDS IN OCTOBER
REAL ESTATE CONSTRUCTION SPENDING RISES IN SEPTEMBER
FED RAISES TARGET FOR FEDERAL FUNDS RATE TO 4 PERCENT
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ GENERATIONAL DIFFERENCES IMPACT THE REMODELING MARKET
While the remodeling market has been propelled by baby boomers in recent years, the members of Generation X, born between 1965 and 1974, are changing the needs of the marketplace, according to "Understanding Generational Differences in Home Remodeling Behavior," a report recently released by Harvard University's Joint Center for Housing Studies. Now in their 30s, the members of Generation X have higher incomes, a greater number of late-forming households, more families with two incomes and fewer children per household when compared with baby boomers when they were the same age. Though the baby boomers currently make up more than 50 percent of total home improvement spending, the members of Generation X spend more on renovation and remodeling than the baby boomers did at the same age. With higher incomes and smaller families, Generation X will likely have more purchasing power in the remodeling market. They may focus less on adding space to their homes and more on improving the aesthetics or adding luxury amenities.
http://www.jchs.harvard.edu/publications/remodeling/w05-10.pdf ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
REALTORS® SUPPORT STATE EFFORTS TO RESTRICT USE OF EMINENT DOMAIN
REALTORS® expressed their support of state governments' rights to form their own laws regarding eminent domain at a recent forum on land use, property rights and the environment at NAR's 2005 REALTORS® Conference & Expo in San Francisco. The discussion follows the recent Supreme Court decision in Kelo v City of New London that allowed a local government to seize private property to promote the city's economic development. Nearly 70 percent of REALTORS® feel that each state should have the power to make its own laws about eminent domain, while 30 percent feel that Congress should establish standards for the proper use of eminent domain, according to a recent member survey conducted by NAR. "Protecting the right of citizens to be secure in their ownership of property is a core value of REALTORS®," said NAR President Al Mansell. "Private property rights are the cornerstone of the real estate industry and a key principle of the social contract upon which our democratic system of government relies for legitimacy. Any erosion of private property rights is cause for serious alarm."
http://www.realtor.org/PublicAffairsWeb.nsf/Pages/EminentDomainRuling?OpenDocument ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
BUILDER CONFIDENCE REBOUNDS IN OCTOBER
Following a three-month decline, the confidence level of the nation's homebuilders improved in October, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The seasonally adjusted HMI increased two points to 67 last month, returning to the 67-72 confidence range that had prevailed since April 2004. In September, the HMI declined to a low of 65, reflecting the economic uncertainties following Hurricanes Katrina and Rita. An HMI above 50 indicates that more builders view sales conditions as good versus poor. All three of the HMI's components increased in October. The component measuring sales expectations for the coming months climbed two points to 72, while the confidence gauge for current sales and the traffic of prospective buyers each rose one point, to 73 and 50, respectively. Regionally, the HMI remains the highest in the West, where the index rose seven points to 90.
http://www.nahb.org/news_details.aspx?newsID=1599&print=false~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
REAL ESTATE CONSTRUCTION SPENDING RISES IN SEPTEMBER
Construction spending was at a seasonally adjusted annual rate of $1,120.0 billion in September 2005, a 6.8 percent increase above the value of construction put into place one year earlier, according to a recent report released by the U.S. Census Bureau. September was the 15th consecutive month where the projected rate of construction spending topped $1 trillion. Construction spending totaled $827.6 billion during the first nine months of the year, an 8.8 percent increase over construction spending for the same period in 2004. Spending on residential construction in September 2005 increased 8 percent over the previous year to reach a rate of $630.4 billion. The value of nonresidential construction put into place in September rose 5.3 percent to a rate of $489.6 billion, according to the report.
http://www.census.gov/const/C30/release.pdf ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
FED RAISES TARGET FOR FEDERAL FUNDS RATE TO 4 PERCENT
The Federal Reserve's Open Market Committee raised the target for the federal funds rate by 25 basis points to 4 percent last week, marking the 12th 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. Rising energy costs and the impact of the hurricanes that hit the Gulf Coast in September have "temporarily depressed output and employment," according to the Fed. "However, monetary policy accommodation, coupled with robust underlying growth in productivity, is providing ongoing support to economic activity that will likely be augmented by planned rebuilding in the hurricane-affected areas," the Fed said in a prepared statement. "The cumulative rise in energy and other costs has the potential to add to inflation pressures; however, core inflation has been relatively low in recent months and longer-term inflation expectations remain contained."
http://www.federalreserve.gov/boarddocs/press/monetary/2005/20051101/default.htm ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - Sept. 05: $543,980 (Source: C.A.R.)
Calif. affordability index - Aug. 05: 14 percent (Source: C.A.R.)
Calif. highest median home price by C.A.R. region Sept. 05:
Santa Barbara So. Coast $1,475,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region Sept. 05:
High Desert $312,410 (Source: C.A.R.)
Mortgage rates - week ending 11/3:
30-yr. fixed: 6.31%; Fees/points: 0.5%
15-yr. fixed: 5.85%; Fees/points: 0.5%
1-yr. adjustable: 5.09%; 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 165,000 REALTORS® statewide. Edited by Mark Giberson Copyright © 2005 California Association of REALTORS® (C.A.R.)
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Wednesday, November 02, 2005
Brought to you by the California Association of REALTORS® and David Breidenbach, 619-888-3322, www.BreidyPropertiesInc.com
C.A.R. SAYS PROPOSED CHANGE TO DEDUCTIBILITY OF MORTGAGE INTEREST "DOA"
HOUSING STARTS CLIMB IN THE GOLDEN STATE
CALIFORNIA HOUSEHOLDS FALL SHORT IN INCOME NEEDED TO PURCHASE HOME
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C.A.R. SAYS PROPOSED CHANGE TO DEDUCTIBILITY OF MORTGAGE INTEREST "DOA"
The proposed tax reform affecting the deductibility of mortgage interest will be "dead on arrival in Congress," says C.A.R. President Vince Malta. The proposal, submitted yesterday to the U.S. Treasury by the President's Advisory Panel on Federal Tax Reform, recommends converting the mortgage interest deduction to a tax credit equal to 15 percent of interest paid on mortgages, with the mortgage interest cap set to the average regional home price, ranging from $227,000 to $412,000. Currently, homeowners can deduct all the interest on mortgage loans up to $1 million on their primary residence.
"With the median price of a home in California at $543,980 and the average mortgage at least $435,180, the proposed ceiling would limit the tax break for the majority of new mortgagees in the state," said Malta.
Other changes that would negatively impact Californians are the proposed elimination of deductions for the interest paid on second home loans and home equity loans, as well as the elimination of the deduction for state and local taxes. According to NAR, second homes accounted for 36 percent of all home sales last year nationwide.
http://www.taxreformpanel.gov/final-report/TaxPanel_2_11-1.pdf~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HOUSING STARTS CLIMB IN THE GOLDEN STATE
New-home construction in California posted a sizable increase during September 2005, jumping 20.9 percent when compared with September 2004, the California Building Industry Association (CBIA) recently reported. In September, more than 20,900 new housing units were started throughout California, with single-family units accounting for 72 percent of the starts. According to the report, housing production in California is expected to reach the 15-year high recorded in 2004.
During the first nine months of 2005, California housing starts totaled 164,042, a 3.7 percent increase compared with the same period one year earlier. According to the report, single-family construction was the strongest in the Riverside-San Bernardino-Ontario and Los Angeles-Long Beach-Glendale regions, followed by the Sacramento-Arden-Roseville and San Diego-Carlsbad-San Marcos regions.
http://www.cbia.org/index.cfm?pageid=1203&preview=yes ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CALIFORNIA HOUSEHOLDS FALL SHORT IN INCOME NEEDED TO PURCHASE HOME
With a median household income of $54,140, California households are $73,810 short of the $127,950 qualifying income needed to purchase a median-priced, single-family home at $545,910 in California, according to the C.A.R. Homebuyer Income Gap Index' (HIGI) report for the third quarter of 2005. The HIGI' for California increased 33.7 percent during the third quarter of 2005 compared with the third quarter of 2004.
According to the report, potential homebuyers in the Central Valley had the smallest income gap at $43,170, while the San Francisco Bay Area had the highest gap in the state at $100,670. In Southern California, potential homebuyers are $74,240 short of the $126,820 qualifying income needed to purchase a median-priced, single-family home at $541,110.
http://www.car.org/index.php?id=MzU2MjY= ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - Sept. 05: $543,980 (Source: C.A.R.)
Calif. affordability index - Aug. 05: 14 percent (Source: C.A.R.)
Calif. highest median home price by C.A.R. region Sept. 05:
Santa Barbara So. Coast $1,475,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region Sept. 05:
High Desert $312,410 (Source: C.A.R.)
Mortgage rates - week ending 10/27:
30-yr. fixed: 6.15%; Fees/points: 0.5%
15-yr. fixed: 5.69%; Fees/points: 0.5%
1-yr. adjustable: 4.91%; 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 165,000 REALTORS® statewide.
Edited by Mark Giberson,
Copyright © 2005 California Association of REALTORS® (C.A.R.)
David Breidenbach
CENTURY 21 Award
2355 Northside Drive
Suite 300
San Diego, CA 92108
www.BreidyPropertiesInc.com
Mobile: 619-888-3322
FAX: 858-547-4433
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