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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 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 TAXESBecause of a loophole in existing law, developers legally can impose private transfer taxes on home buyers at the time of purchase, with no oversight from government, no accountability on how the money is spent, and no limit on who can impose the tax or how many private transfer taxes can be added to a home when it's sold. C.A.R. today announced it will sponsor SB 670 (Correa), "Private Transfer Tax Prohibition," to eliminate this unfair tax on Californians. "This is an alarming trend in California, one that gives non-government entities like developers the power to tax, while threatening the dream of homeownership by pushing prices higher," said C.A.R. President Colleen Badagliacco. "While the highest private transfer tax rate we are aware of currently is 1.75 percent of the home's value, under existing law there's no upper limit." A private transfer tax of 1.75 percent on a $500,000 home skims nearly $10,000, while inflating the cost of a home. Private transfer taxes also impact affordability in California. According to C.A.R. research, for every $10,000 increase in the cost of a home, another 200,000 potential home buyers are eliminated from the marketplace. SB 670 (Correa), "Private Transfer Tax Prohibition," will next be heard in the Senate. http://www.car.org/index.php?id=MzcxMTQ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CONSUMER CONFIDENCE HITS HIGHEST LEVEL SINCE 2001
Boosted by a brighter outlook for the labor market and present day business conditions, consumer confidence rose for the third consecutive month in February and now stands at a five-and-a-half year high, according to yesterday's report from The Conference Board. The Consumer Confidence Index improved to 112.5 (1985=100) this month, up from 110.2 in January and 1.5 points below the last high of 114, reached in August 2001. While nearly 30 percent of consumers assessed current business conditions as "good," helping lift the Present Situation Index from 133.9 to 139 this month, consumers' outlook for the next six months remained nearly unchanged from January. "All in all, it appears that the pace of economic growth exhibited in the final months of 2006 has carried over into early 2007 and may have even gained a little momentum," said Lynn Franco, director of The Conference Board Consumer Research Center. http://www.conference-board.org/utilities/pressDetail.cfm?press_ID=3078~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. REPORTS HOME SALES DECREASE 12.6 PERCENT IN JANUARYThe median price of an existing single-family home in California increased 1.9 percent in January and sales decreased 12.6 percent compared with the same period a year ago, C.A.R. reported yesterday. "After holding steady in the range of 450,000 units on a seasonally adjusted annual basis since July of last year, home sales activity was slightly lower in January," said C.A.R. President Colleen Badagliacco. "On a regional basis, sales fell an average of 13 percent, while median prices declined in all areas except Los Angeles, the San Francisco Bay Area, and Riverside/San Bernardino." According to the report, the median price of an existing, single-family detached home in California during January was $559,640, a 1.9 percent increase over the revised $549,460 median for January 2006. Also last month, closed escrow sales of existing, single-family detached homes in California totaled 437,580 at a seasonally adjusted annualized rate, down 12.6 percent compared with the sales pace recorded one year earlier and down 3.2 percent from home resale activity in December 2006. "The unsold inventory of existing homes jumped to 9.1 months in January, after hovering around the long-run average of 7 months since mid-2006," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "There was a slight increase in statewide listings last month, which is characteristic of the start of the year. However, listings remained near the long-run average. As such, the increase in the unsold inventory index--the ratio of listings to sales--was driven primarily by the sales decline." http://www.car.org/index.php?id=MzcxMDM= ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
LUXURY HOME MARKETS SLOW IN CALIFORNIADuring last year's fourth quarter, luxury home prices in Los Angeles, San Diego, and San Francisco declined on a quarter-to-quarter basis for the first time since 2004, according to the First Republic Prestige Home Index™, which tracks homes valued at more than $1 million in key California markets. Despite the quarterly decreases, limited inventories continue to drive the luxury markets, and prices appreciated by single digits on an annual basis in all three areas. In Los Angeles, fourth quarter luxury home prices were up 2.9 from a year ago and the average luxury home is now valued at $2.35 million. High-end homes in San Diego and San Francisco also recorded modest annual gains last quarter, rising 3.3 percent and 1.5 percent, respectively. According to the index, the average luxury home in San Francisco is now valued at $2.92 million, while the average luxury home value in San Diego is $2.15 million. http://firstrepublic.com/lend/residential/prestigeindex/index.html ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HUD RELEASES HOMELESS ASSESSMENT REPORT
The U.S. Dept. of Housing and Urban Development (HUD) today released a report evaluating the scope of homelessness in America. The first report of its kind in more than 20 years, HUD's "Annual Homeless Assessment Report to Congress" estimates than 754,000 people nationwide live in emergency shelter, transitional housing, or on the streets on any given night. In California, the homeless population contains an estimated 188,300 people, including more than 24,000 veterans and more than 17,700 children under the age of 18.
"Understanding homelessness is a necessary step to ending it, especially for those persons living with a chronic condition such as mental illness, an addiction, or a physical disability," said HUD Secretary Alphonso Jackson. According to the report, 65 percent of the adult homeless population are men, 41 percent are between 31 and 50 years of age, and 75 percent are in central cities. http://www.hud.gov/news/release.cfm?content=pr07-020.cfm~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - January 07: $559,640 (Source: C.A.R.) Calif. highest median home price by C.A.R. region January 07: Santa Barbara So. Coast $1,150,000 (Source: C.A.R.) Calif. lowest median home price by C.A.R. region January 07: High Desert $317,380 (Source: C.A.R.) Calif. First-time Buyer Affordability Index - Third Quarter 06: 24 percent (Source: C.A.R.) Mortgage rates - week ending 2/22: 30-yr. fixed: 6.22%; Fees/points: 0.5% 15-yr. fixed: 5.97%; Fees/points: 0.5% 1-yr. adjustable: 5.49%; Fees/points: 0.7% (Source: Freddie Mac) C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 200,000 REALTORS® statewide. Edited by Mark Giberson, and Amanda Hopkins 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 NATIONWIDEThe 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 HIGHThe 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. CONFORMING LOAN LIMITS, FHA REFORM LEAD LEGISLATIVE PRIORITIES FOR 2007Conforming loan limits and Federal Housing Administration (FHA) reform are among C.A.R.'s top federal legislative priorities for 2007. During the 109th session of Congress, which ended in December 2006, the U.S. House of Representatives passed H.R. 1461, a measure that is intended to strengthen the regulation and oversight of Fannie Mae and Freddie Mac, also known as the government-sponsored enterprises (GSEs). The legislation also would allow the new GSE regulator to set high-cost conforming loan limits by an area's median home price, up to 150 percent of the national conforming loan limit. With the U.S. Senate failing to take action on the measure, C.A.R. will work with the 110th Congress to pass final legislation for GSE oversight and raise high-cost conforming loan limits. Also this year, C.A.R. will continue to fight for reform that will make FHA loans a more viable option for American homeowners; work with Congress to update insurance regulations so that insurance companies are better prepared for natural disasters; and work with the House Ways and Means Committee to prepare legislation that revises the need for sellers to provide their taxpayer identification numbers to buyers under the Federal Investment in Real Property Tax Act (FIRPTA). http://www.car.org/index.php?id=NjAz~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. SCHOLARSHIP FOUNDATION AWARDS EIGHT SCHOLARSHIPSThe C.A.R. Scholarship Foundation recently awarded eight scholarships to college students planning careers in real estate. The scholarships were awarded in January at the Association's board of directors meetings in Monterey. Recipients of the award are enrolled in two- to four-year colleges or universities in California, have completed a minimum of two real estate or real estate-related college-level courses, and are currently enrolled in at least one real estate or real estate-related course. "We are pleased that scholarships were awarded to recipients from across the state, all of whom have demonstrated a serious commitment to a career in real estate," said C.A.R. President Colleen Badagliacco. Scholarships awarded by the C.A.R. Scholarship Foundation address C.A.R.'s goal of bringing new professionals into the real estate industry and training them with the skills required to effectively meet the needs of future homeowners in California. http://www.car.org/index.php?id=MzcwODQ= ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price December 06: $567,690 (Source: C.A.R.) Calif. highest median home price by C.A.R. region December 06: Santa Barbara So. Coast $1,250,000 (Source: C.A.R.) Calif. lowest median home price by C.A.R. region December 06: High Desert $324,560 (Source: C.A.R.) Calif. First-time Buyer Affordability Index Third Quarter 06: 24 percent (Source: C.A.R.) Mortgage rates - week ending 2/15: 30-yr. fixed: 6.30%; Fees/points: 0.4% 15-yr. fixed: 6.03%; Fees/points: 0.4% 1-yr. adjustable: 5.52%; Fees/points: 0.6% (Source: Freddie Mac) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 200,000 REALTORS® statewide. Edited by Mark Giberson, and Amanda Hopkins Copyright © 2007 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Wednesday, February 14, 2007
Brought to you by David Breidenbach, 619-888-3322 and the CALIFORNIA ASSOCIATION OF REALTORS®
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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 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
MORTGAGE LOAN APPLICATIONS RISEThe Market Composite Index, a measure of mortgage loan application volume, increased 1.5 percent to 639.8 on a seasonally adjusted basis for the week ending Feb. 9 compared with 630.1 one week earlier, according to a report released today by the Mortgage Bankers Association (MBA). On an unadjusted basis, the Index increased 4.5 percent for the week ending Feb. 9 compared with the previous week and was up 10.9 percent compared with the same week one year earlier. The refinance share of mortgage activity remained unchanged at 46.1 percent of total applications for the week ending Feb. 9. The adjustable-rate mortgage (ARM) share of activity decreased to 21.2 for the week ending Feb. 9 from 22.3 percent of total applications from the previous week. http://www.mortgagebankers.org/NewsandMedia/PressCenter/48508.htm~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Fast Facts
Calif. median home price - December 06: $567,690 (Source: C.A.R.) Calif. highest median home price by C.A.R. region December 06: Santa Barbara So. Coast $1,250,000 (Source: C.A.R.) Calif. lowest median home price by C.A.R. region December 06: High Desert $324,560 (Source: C.A.R.) Calif. First-time Buyer Affordability Index - Third Quarter 06: 24 percent (Source: C.A.R.) Mortgage rates - week ending 2/8: 30-yr. fixed: 6.28%; Fees/points: 0.3% 15-yr. fixed: 6.02%; Fees/points: 0.3% 1-yr. adjustable: 5.49%; Fees/points: 0.7% (Source: Freddie Mac)
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.)
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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 STEADYNearly 75.8 million of 109.9 million American households were owner-occupied during the fourth quarter of 2006, maintaining a national homeownership rate that has hovered around 69 percent for 12 consecutive quarters, the U.S. Census Bureau reported last week. Regionally, the homeownership rate was lowest in the West at 64.5 percent and highest in the Midwest at 73 percent. Among age groups, the rate of homeownership was 81.2 percent for those aged 65 and up; 80.7 percent for those between 55 and 64; 76.4 percent for those between 45 and 54; 68.9 percent for those between 35 and 44; and 42.8 percent for those 35 and younger. The homeownership rate for households earning a family income equal to or greater than the median family income was 84.5 percent last quarter. The Census also reported that more than 16.7 million housing units stood vacant nationwide at the end of 2006, up from 15.6 million vacant units at the end of 2005. The vacancy rate for owned units jumped to a record 2.7 percent, up from 2 percent a year earlier. At the end of 2006, 2.1 million vacant homes were listed for sale. http://www.census.gov/hhes/www/housing/hvs/qtr406/q406press.pdf ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
SHARE OF FIRST-TIME BUYERS SECOND LOWEST ON RECORD IN 2006Affordability 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 HOMESHome 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 HOMEOWNERSThe 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 ACTIVITYThe 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®
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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
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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. 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. 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
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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. Edited by Mark Giberson, and Amanda Hopkins Copyright © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
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Wednesday, December 20, 2006 Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
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 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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
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MORE AMERICANS TURN TO INTERNET FOR REAL ESTATE INFORMATION
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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.) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Wednesday, December 13, 2006
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
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
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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/ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
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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 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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.)
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~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Wednesday, October 25, 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 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." 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 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 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= ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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.) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Wednesday, October 11, 2006
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 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. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Wednesday, October 04, 2006
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® and David Breidenbach, Realtor® 619-888-3322, www.BreidyPropertiesInc.comDESPITE 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 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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 Copyright © 2006 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
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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~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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.c | |
SIGNIFICANT NEW LAWS FOR 2007