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Market Trends Category

February Market Update

Sales Price up 18.3%

Sales Price up 18.3%

Home buyers and sellers are readying themselves for an exciting spring market. Buyers are motivated by an attractive affordability environment, while more and more sellers are receiving near top dollar for their home. We’ve come a long way over the past 12 to 18 months but we’re not there yet. Here’s how February stacked up.

Single-Family Homes New Listings were down 19.1%.
Townhouse/Condos New Listings were down 9.8%.

Single-Family Homes Pending Sales increased 22.5%.
Townhouse/Condos Pending Sales increased 21.1%.

 

Single-Family Homes the Median Sales Price was up 18.3% to $443,500.
Townhouse/Condos the Median Sales Price was up 29.8% to $285,500.

Single-Family Homes supply of Inventory decreased 75%.
Townhouse/Condos supply of Inventory decreased 78.8%.

Some consumers feel less confident but there is a significant pent-up demand from renters, first-timers, and investors to counteract it.

Mortgage Applications Increase 4.9%

Both refinancing activity and home purchases increased, pushing mortgage applications up to 4.9%.

According to the Mortgage Bankers Association refinance index climbed to 4.4% from the week of 10/17, while the seasonally adjusted purchase index increased 6.4%.

Refinancing was 77.3% of all mortgage applications.

Investors accounted for 6% of mortgage application activity in September, which is about a 6% increase over the previous month.

The average 30-year, fixed-rate mortgage remained unchanged at 4.33%. Jumbo loan increased to 4.68% from 4.64%.

http://mbaa.org/NewsandMedia/PressCenter/78279.htm

Fixed Mortgage Rates Fall to Lowest on Record

Thursday, September 29th, Freddie Mac released data putting  the average 30-year fixed-rate mortgage at 4.01 % (0.7 point).  A year ago at this time, the 30-year rate averaged 4.32 percent. The 15-year fixed-rate averaged 3.28%A year ago at this time, the 15-year rate was 3.75% (0.7 point). Interest rates for adjustable-rate mortgages (ARMs), on the other hand, were unchanged The 5-year ARM averaged 3.02% (0.6 point) this week, matching last week’s average. A year ago, the 5-year ARM was 3.52%.

In a nutshell interest rates droped .31% since last year on a 30 year fixed and .47% on a 15 year mortgage.

Fannie Mae’s complete report can be found here.     http://www.freddiemac.com/pmms/

California Home Sales Up in August 10.2%

 
SUMMARY
Report from California Association of Realtors
 
Number of Homes Sold Are Up
Los Angeles 1.7%, Orange County 9.4%, Riverside 11.2%, San Bernardino 18.9%, San Diego 5.7%, Ventura 7.0%.
 
Prices On Homes Are Down
Los Angeles –7%, Orange County –9.3%, Riverside -2,9%, San Bernardino -6.4 San Diego –4%, Ventura –2.3%.
  • Inventory of homes was at 5 months in August, down from 5.5 months.
  • Thirty-year fixed-mortgage interest rates averaged 4.27% during August 2011, down from 4.43% in August 2010. 
  • Days on Market was 52.7 days in August 2011, compared with 45.5 days for the same period a year ago.

In a nutshell interest rates are low, selection is high and prices are very affordable.

Don’t hestate to call with any questions at 714-360-4444

Mark Armitage – RE/MAX College Park Realty DRE# 01330129

You can check out additional details on this report from the California Association of Realtors.
http://www.car.org/newsstand/newsreleases/2011newsreleases/augsalesprice/

Mortgage Defaults Increase 33%

The number of homes that received notice of  default jumped 33% in August.  This is the largest monthly gain in 4 years. There are about 3.7 million more homes in some stage of foreclosure now than there would be in a normal housing market.  A recovery isn’t likely to occur as long as foreclosures hang over the market.

Foreclosures play a huge part in the public’s economic perceptions. The administration knows our economy will not recover as long as this cloud of foreclosures exists.  Banks seem to be getting government pressure to accelerate the process. This may explain why banks are paying some homeowners as much as $35,000 to short sale their home. 

The increase in notices of default may signal new bank policies regarding homeowners that have remained in their homes for more than 2 years without paying their mortgage.

Nationally, 78,880 properties received a default notice in August.  Despite the sharp increase from July, last month’s total was still down 18% from August 2010 and 44% below April 2009.

Notices of default increased in California 55% increase, Indiana, 46% and New Jersey, 42%.  Lenders foreclosed 64,813 properties last month, down 32% from last year’s 102,134.  Banks are now on track to foreclose 800,000 homes in 2011, down from 20% in 2010.

Nationally, one in every 570 homes received a foreclosure-related notice last month.  Nevada has one in every 118 households receiving a foreclosure-related notice last month followed by California, Arizona, Georgia, Idaho, Michigan, Florida, Illinois, Colorado, and Utah.

If you know someone facing foreclosure have them check out my advice at:  http://westocrealty.com/foreclosure-solutions/

Statistics used from  Associated Press Story linked below.

http://hosted.ap.org/dynamic/stories/U/US_FORECLOSURE_RATES_NVOL-?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT

HOUSING & ECONOMIC SURVEY

Fannie Mae’s August National Housing Survey

I summarized the information in Fannie Mae’s real estate market survey.

In a nutshell it is a great time to buy with interest rates very low, huge selection and incredible deals.

Summary of Results

Americans expect home prices may fall an additional ½ percent and rental prices to increase. 

78% of believe the economy is on the wrong track.

69% believe it is a good time to buy.

9 % believe it is a good time to sell.

22% believe their financial situation will worsen.

41% report significantly higher expenses

Give me a call if you want information on your neighborhood 

Mark Armitage – REMAX College Park Realty      714-360-4444

 

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