Posts
For release:Tuesday, June 27, 2006
C.A.R. reports median price of a home in California at $564,430 in May, up 8 percent from year ago; sales decrease 21.1 percent
LOS ANGELES (June 27) – The median price of an existing home in California increased 8 percent in May and sales decreased 21.1 percent compared with the same period a year ago, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.
“The median price of a home continued to increase in May, but at a more sustainable 8 percent rate,” said C.A.R. President Vince Malta. “This is the first time since November 2001 that the median price did not increase by double digits, reflecting the return to the more balanced market that we have anticipated.
“Interest rates, while still historically low, continue to impact sales as did the inventory of homes for sale, which reached nearly a six-month supply in May,” he said. “It’s important that consumers work with their REALTOR® to ensure that their home is competitively priced in today’s changing market.”
Closed escrow sales of existing, single-family detached homes in California totaled 488,260 in May 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 21.1 percent from the 618,920 sales pace recorded in May 2005.
The statewide sales figure represents what the total number of homes sold during 2006 would be if sales maintained the May pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
The median price of an existing, single-family detached home in California during May 2006 was $564,430, an 8 percent increase over the revised $522,530 median for May 2005, C.A.R. reported. The May 2006 median price increased 0.5 percent compared with April’s revised $561,750 median price.
“Year-to-date sales are down 19.5 percent, in line with our recently revised 2006 California Housing Market Forecast, which projected a 16.8 percent decrease in sales for this year to 520,000 units compared with 2005,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “We expect the rate of home price appreciation to increase 8 percent to $565,900 for the year as a whole, compared with the impressive double-digit gains we’ve witnessed over the past four years.”
Highlights of C.A.R.’s resale housing figures for May 2006:
. C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in May 2006 was 5.9 months, compared with 2.7 months (revised) for the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.
. Thirty-year fixed mortgage interest rates averaged 6.6 percent during May 2006, compared with 5.72 percent in May 2005, according to Freddie Mac. Adjustable mortgage interest rates averaged 5.63 percent in May 2006 compared with 4.23 percent in May 2005.
. The median number of days it took to sell a single-family home was 44 days in May 2006, compared with 27 days (revised) for the same period a year ago.
Regional MLS sales and price information is contained in the tables that accompany this press release. Regional sales data are not adjusted to account for seasonal factors that can influence home sales. The MLS median price and sales data for detached homes are generated from a survey of more than 90 associations of REALTORS throughout the state. MLS median price and sales data for condominiums are based on a survey of more than 60 associations. The median price for both detached homes and condominiums represents closed escrow sales.
In a separate report covering more localized statistics generated by C.A.R. and DataQuick Information Systems, 84.4 percent, or 348 out of 405 cities and communities showed an increase in their respective median home prices from a year ago. DataQuick statistics are based on county records data rather than MLS information. DataQuick Information Systems is a subsidiary of Vancouver-based MacDonald Dettwiler and Associates. (The top 10 lists are generated for incorporated cities with a minimum of 30 recorded sales in the month.)
Note: Large changes in local median home prices typically indicate both local home price appreciation, and often, large shifts in the composition of housing market activity. Some of the variations in median home prices may be exaggerated due to compositional changes in housing demand. The DataQuick tables listing median home prices in California cities and counties are accessible through C.A.R. Online at http://www.car.org/index.php?id=MzYzOTk=.
. Statewide, the 10 cities and communities with the highest median home prices in California during May 2006 were: Laguna Beach, $1,692,500; Saratoga, $1,500,000; Burlingame, $1,371,000; Newport Beach, $1,336,000; Manhattan Beach, $1,241,500; Los Gatos, $1,180,000; Santa Monica, $1,162,500; Rancho Palos Verdes, $1,144,000; Lafayette, $1,142,500; Calabasas, $1,130,000; Santa Barbara, $1,130,000.
. Statewide, the 10 cities and communities with the greatest median home price increases in May 2006 compared with the same period a year ago were: Santa Monica, 60.3 percent; Ridgecrest, 56.3 percent; Adelanto, 42.5 percent; Loma Linda, 36.7 percent; Barstow, 36 percent; Laguna Beach, 33.8 percent; Delano, 33.3 percent; Tustin, 32.8 percent; Campbell, 32 percent; California City, 30.6 percent.
Leading the way...® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with more than 185,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
Thursday, June 29, 2006
Thursday, June 15, 2006
Annual Harvard Study Reports Sharp Drop Unlikely for Real Estate Market
Harvard Releases the 2006 State of the Nation’s Housing Report
RISMEDIA, June 15, 2006—With interest rates rising and speculative demand cooling, the housing boom is coming under pressure, finds this year’s State of the Nation’s Housing report. As long as the economy continues to create jobs and builders trim production to match slowing demand, house prices will keep climbing and the housing sector will likely achieve a soft landing. Although house price growth will likely moderate in many areas, sharp drops in house prices are unlikely anytime soon. Major house price declines seldom occur in the absence of severe overbuilding, major job loss, or a combination of heavy overbuilding and modest job loss. Fortunately, these preconditions are nowhere in evidence across the nation’s metropolitan areas. Even with higher interest rates and home prices crimping affordability, the lure of house price appreciation continues to draw homebuyers to the market. While the national homeownership rate edged down a tenth of a percent in 2005, it increased in the West and Northeast where house price growth was the strongest. In fact, about 1 million homeowners were added nationally last year. Mortgage innovations such as low-downpayment, hybrid-adjustable, and interest-only loans helped blunt the impact of higher home prices and interest rates. “While homeowners with annually adjusting mortgage rates are facing interest increases this year, including those with expiring teaser discounts, only about one in 10 homeowners face higher mortgage payments this year” remarks Nicolas P. Retsinas, director of Harvard’s Joint Center for Housing Studies. Fully eight in 10 owners has no mortgage or a fixed-rate mortgage, and most owners with adjustable loans have an initial fixed-rate period of three or more years. Similarly, most interest-only loans extend for at least five years, leaving ample time to move, refinance, or incomes to grow before principal payments start coming due. But, the report cautions, five years of unprecedented house price appreciation and decades of land use restrictions that make building affordable housing difficult are adding to widespread housing affordability problems. From 2001 to 2004 alone, the number of households spending more than half their incomes on housing increased by 14 percent to 15.8 million. The paradox of today’s housing market is that while more people are building home equity than ever before, slow growth in wages for households in the bottom three-quarters of the income distribution is not keeping pace with escalating housing costs. Amidst a housing boom, it is now impossible to build housing at prices anywhere near what low-income households can afford without subsidies. Further, the report draws attention to the problems of concentrated poverty. Neighborhood decline is fuelling the loss of affordable housing and exposing residents to poor neighborhood conditions. From 1993-2003 the supply of rentals affordable on a $16,000 income fell by 1.2 million, while in 2001 12 percent of such rentals were operated at a loss. This year’s report also highlights the significant contribution that the foreign-born and minorities will make to overall household growth. New household projections incorporating higher but more realistic immigrant assumptions suggest household growth will accelerate to 14.6 million over the next ten years from 12.6 million over the last ten. “Strong household growth, combined with record incomes and wealth, will lift housing investments to new highs next decade,” remarks Eric Belsky, executive director of the Joint Center. “Each generation is achieving higher homeownership rates, incomes, and wealth than the one ahead of it, with the leading edge of the echo baby boom now in their 20s and the baby bust now in their 30s starting off on especially high paths. This is despite the fact that each younger generation has successively higher shares of foreign-born and minority household heads with lower average incomes than same-age native-born whites.” “Even as the housing industry looks past the current softness to robust growth in the decade ahead, the challenges of providing affordable housing for low-income, and increasingly even middle-income households, are clear,” concludes Retsinas. “Slow growth in domestic discretionary spending at the federal level and the reluctance of state and local governments to relieve intense barriers to the production of more affordable housing make the road ahead difficult. Unless governments step up to these challenges, spending on housing will increasingly crowd out spending on pensions and savings among those with low and moderate incomes.” Harvard’s Joint Center for Housing Studies is the nation’s leading center for information and research on housing in the United States. Established in 1959, the Joint Center is a collaborative unit affiliated with the Harvard Design School and the Kennedy School of Government. The Director of the Joint Center for Housing Studies is Nicolas P. Retsinas. The Center’s research and additional information about its programs and activities are available at www.jchs.harvard.edu.
RISMEDIA, June 15, 2006—With interest rates rising and speculative demand cooling, the housing boom is coming under pressure, finds this year’s State of the Nation’s Housing report. As long as the economy continues to create jobs and builders trim production to match slowing demand, house prices will keep climbing and the housing sector will likely achieve a soft landing. Although house price growth will likely moderate in many areas, sharp drops in house prices are unlikely anytime soon. Major house price declines seldom occur in the absence of severe overbuilding, major job loss, or a combination of heavy overbuilding and modest job loss. Fortunately, these preconditions are nowhere in evidence across the nation’s metropolitan areas. Even with higher interest rates and home prices crimping affordability, the lure of house price appreciation continues to draw homebuyers to the market. While the national homeownership rate edged down a tenth of a percent in 2005, it increased in the West and Northeast where house price growth was the strongest. In fact, about 1 million homeowners were added nationally last year. Mortgage innovations such as low-downpayment, hybrid-adjustable, and interest-only loans helped blunt the impact of higher home prices and interest rates. “While homeowners with annually adjusting mortgage rates are facing interest increases this year, including those with expiring teaser discounts, only about one in 10 homeowners face higher mortgage payments this year” remarks Nicolas P. Retsinas, director of Harvard’s Joint Center for Housing Studies. Fully eight in 10 owners has no mortgage or a fixed-rate mortgage, and most owners with adjustable loans have an initial fixed-rate period of three or more years. Similarly, most interest-only loans extend for at least five years, leaving ample time to move, refinance, or incomes to grow before principal payments start coming due. But, the report cautions, five years of unprecedented house price appreciation and decades of land use restrictions that make building affordable housing difficult are adding to widespread housing affordability problems. From 2001 to 2004 alone, the number of households spending more than half their incomes on housing increased by 14 percent to 15.8 million. The paradox of today’s housing market is that while more people are building home equity than ever before, slow growth in wages for households in the bottom three-quarters of the income distribution is not keeping pace with escalating housing costs. Amidst a housing boom, it is now impossible to build housing at prices anywhere near what low-income households can afford without subsidies. Further, the report draws attention to the problems of concentrated poverty. Neighborhood decline is fuelling the loss of affordable housing and exposing residents to poor neighborhood conditions. From 1993-2003 the supply of rentals affordable on a $16,000 income fell by 1.2 million, while in 2001 12 percent of such rentals were operated at a loss. This year’s report also highlights the significant contribution that the foreign-born and minorities will make to overall household growth. New household projections incorporating higher but more realistic immigrant assumptions suggest household growth will accelerate to 14.6 million over the next ten years from 12.6 million over the last ten. “Strong household growth, combined with record incomes and wealth, will lift housing investments to new highs next decade,” remarks Eric Belsky, executive director of the Joint Center. “Each generation is achieving higher homeownership rates, incomes, and wealth than the one ahead of it, with the leading edge of the echo baby boom now in their 20s and the baby bust now in their 30s starting off on especially high paths. This is despite the fact that each younger generation has successively higher shares of foreign-born and minority household heads with lower average incomes than same-age native-born whites.” “Even as the housing industry looks past the current softness to robust growth in the decade ahead, the challenges of providing affordable housing for low-income, and increasingly even middle-income households, are clear,” concludes Retsinas. “Slow growth in domestic discretionary spending at the federal level and the reluctance of state and local governments to relieve intense barriers to the production of more affordable housing make the road ahead difficult. Unless governments step up to these challenges, spending on housing will increasingly crowd out spending on pensions and savings among those with low and moderate incomes.” Harvard’s Joint Center for Housing Studies is the nation’s leading center for information and research on housing in the United States. Established in 1959, the Joint Center is a collaborative unit affiliated with the Harvard Design School and the Kennedy School of Government. The Director of the Joint Center for Housing Studies is Nicolas P. Retsinas. The Center’s research and additional information about its programs and activities are available at www.jchs.harvard.edu.
Friday, May 26, 2006
10 Places To Get Free Gas
Hitting the Road for the Holiday Weekend?
Here are 10 Places to Get Free Gas By Charles Leocha Travel columnist, Tripso RISMEDIA, May 26, 2006—(MSNBC.com)—With gasoline prices soaring over the past few months, several destinations and travel organizations that depend on automobile travel to prosper have begun offering gasoline voucher programs to encourage visitors. Some of these initiatives are dusted-off versions of promotions from last year, when the travel industry was faced with a similar fuel scenario as the summer travel season loomed. Others are new. The interesting thing is how infrequently programs like this are offered. It seems that most destination managers believe that the American public will keep on truckin’ despite higher fuel prices. And they’re probably right. If history is any guide, Americans can be expected to increase their travel, not curtail it. Go figure. The same seems to be true in Europe. During a recent trip to Italy, where gasoline averages more than $6 a gallon, I was stuck in massive traffic jams on the superhighways connecting Rome, Florence and Bologna. Similarly, in England, so many drivers want to get into London that the city has implemented a special toll program. It seems cars inspire free-spending devotion. Still, some destinations and organizations have created promotions offering gasoline rebates and vouchers to encourage travelers to pay them a visit. Each program has a different collection of requirements. If you follow the rules, the reward is free fuel and, in most cases, a bit more. 1. Branson, Missouri. Visitors presenting $40 worth of gas receipts dated within two days of arrival in Branson will be rewarded with a “Gas Buster” discount card. The card is worth $50 and is accepted at more than 50 Branson-area businesses. Just bring your gas receipts to the Branson/Lakes Area Chamber of Commerce Welcome Center. 2. Aspen, Colorado. What could be better than free gas and free activities in this tony mountain town? Guests who book at least two nights at a participating property through Stay Aspen Snowmass will receive a voucher for up to $50 in free gas at The Aspen Store, two free passes for a scenic bus ride to the Maroon Bells (a $14 value), two free bicycle rentals for a day, free parking at your lodging property and a free pass to the Aspen Recreation Center. 3. Bedandbreakfast.com. This marketing organization has created a promotion that offers gasoline-based vouchers at 40 participating properties. For instance, the Inn at Harbor Hill Marina, in Niantic, Conn., near Mystic Seaport and Mystic Aquarium, offers a gas rebate of $25 for midweek visitors who stay two nights or more. The Inn at Starlight Lake in Pennsylvania’s Pocono Mountains offers $25-$50 as a gas rebate for visitors saying two to four nights, excluding holidays. Other B&Bs from California to New Hampshire have similar gas promotions, generally good for about $25 worth of fuel. 4. South Dakota. In South Dakota’s “Twenty Bucks for the Road” program, the state will give a $20 coupon for ethanol to drivers arriving from the nearby states of Kansas, Illinois, Texas, Colorado, Missouri, Wisconsin, North Dakota, Iowa, Minnesota and Nebraska. The coupons are redeemable only in South Dakota. The state is one of the largest producers of ethanol, so this promotion benefits both tourism and one of South Dakota’s biggest industries. The initial response to this promotion has been overwhelming; the state was expecting to distribute no more than 3,000 vouchers and more than 12,000 vouchers have already been requested. 5. Hotels.com. This giant hotel booking site has launched a program rewarding travelers who book two nights or more online from May 1 to May 29 for stays through July 10. Travelers will receive up to $30 back by mail-in rebate, and the rebate form is right on the Web site. 6. Wintergreen Resort, Virginia. This luxury resort nestled on the slopes of the Blue Ridge Mountains is offering a “Fuel Friendly” escape that will reimburse up to $75 in gasoline charges when travelers stay at the resort for three nights. To receive reimbursement, you much present gas receipts for purchases of gasoline used to drive to the resort. 7. Whistler, Canada. Whistleraccommodation.com, an online booking agent for this sprawling mountain resort in British Columbia, is offering C$50 of free gas to anyone booking three to six nights by the end of August and arriving before October 31. For those staying seven nights or more, the gas rebate is doubled. 8. Traverse City, Michigan. The Traverse City Convention & Visitors Bureau will give a $25 Speedway gas card to every visitor who calls to reserve a stay of four nights or longer at any of its 43 participating hotels, motels or resorts between now and Labor Day. The cards are redeemable for gas or other merchandise at Speedway service stations anywhere in the country. To qualify, travelers simply book their rooms through the Bureau’s toll-free “Pump Up Your Summer” reservations line, 1-800-714-0051. This gas card has the impact of reducing a $3-a-gallon gas price to $2 a gallon for a visitor who makes a 500-mile round trip to Traverse City in a car that averages 20 miles per gallon. 9. Mount Bachelor Village Resort, Bend, Oregon. For travelers staying at least two nights, this all-season resort set on the banks of the Deschutes River is offering a “Free Fuel for Guests” program consisting of a $50 gas card. The resort offers spa packages and plenty of outdoor activities as well as a series of summer concerts ranging from rock to country and western. 10. Virginia Beach, Virginia. Gold Key Resorts in this vacation region has announced a $20 gasoline voucher redeemable in downtown Virginia Beach for anyone booking a vacation with an arrival date before May 25. Gold Key has a collection of packages that qualify, ranging from $49 to $319 based on three days and two nights. For more information about this promotion, call 1-800-492-9861. Travelers who can’t find free gas, or who aren’t interested in trading gas vouchers for hotel rooms, can always look for the best deal at the pump. Two Web sites will lead these travelers to the best places to spend the least for gasoline. • AAA’s Daily Fuel Gauge Report lists average gasoline prices on a state-by-state basis. This site is perfect for a general idea of which states have the lowest prices. • Gasbuddy.com, a similar site, has reports from individuals across the United States and Canada. These reporters provide actual gas station prices together with names and locations of stations that have current gas deals. More gas deals may pop up as the summer goes by, and they might not be widely advertised. So, tell your reservations agent that you are driving in from a distance, and ask if the hotel is offering any sort of gas promotion to make the trip worthwhile. The question is sometimes all that is needed to shake something loose. Drive safe and enjoy the deal. Charles Leocha is nationally-recognized expert on saving money and the publisher of Tripso. He is also the Boston-based author of "SkiSnowboard America & Canada." E-mail him or visit his Web site. Source: www.msnbc.com
Here are 10 Places to Get Free Gas By Charles Leocha Travel columnist, Tripso RISMEDIA, May 26, 2006—(MSNBC.com)—With gasoline prices soaring over the past few months, several destinations and travel organizations that depend on automobile travel to prosper have begun offering gasoline voucher programs to encourage visitors. Some of these initiatives are dusted-off versions of promotions from last year, when the travel industry was faced with a similar fuel scenario as the summer travel season loomed. Others are new. The interesting thing is how infrequently programs like this are offered. It seems that most destination managers believe that the American public will keep on truckin’ despite higher fuel prices. And they’re probably right. If history is any guide, Americans can be expected to increase their travel, not curtail it. Go figure. The same seems to be true in Europe. During a recent trip to Italy, where gasoline averages more than $6 a gallon, I was stuck in massive traffic jams on the superhighways connecting Rome, Florence and Bologna. Similarly, in England, so many drivers want to get into London that the city has implemented a special toll program. It seems cars inspire free-spending devotion. Still, some destinations and organizations have created promotions offering gasoline rebates and vouchers to encourage travelers to pay them a visit. Each program has a different collection of requirements. If you follow the rules, the reward is free fuel and, in most cases, a bit more. 1. Branson, Missouri. Visitors presenting $40 worth of gas receipts dated within two days of arrival in Branson will be rewarded with a “Gas Buster” discount card. The card is worth $50 and is accepted at more than 50 Branson-area businesses. Just bring your gas receipts to the Branson/Lakes Area Chamber of Commerce Welcome Center. 2. Aspen, Colorado. What could be better than free gas and free activities in this tony mountain town? Guests who book at least two nights at a participating property through Stay Aspen Snowmass will receive a voucher for up to $50 in free gas at The Aspen Store, two free passes for a scenic bus ride to the Maroon Bells (a $14 value), two free bicycle rentals for a day, free parking at your lodging property and a free pass to the Aspen Recreation Center. 3. Bedandbreakfast.com. This marketing organization has created a promotion that offers gasoline-based vouchers at 40 participating properties. For instance, the Inn at Harbor Hill Marina, in Niantic, Conn., near Mystic Seaport and Mystic Aquarium, offers a gas rebate of $25 for midweek visitors who stay two nights or more. The Inn at Starlight Lake in Pennsylvania’s Pocono Mountains offers $25-$50 as a gas rebate for visitors saying two to four nights, excluding holidays. Other B&Bs from California to New Hampshire have similar gas promotions, generally good for about $25 worth of fuel. 4. South Dakota. In South Dakota’s “Twenty Bucks for the Road” program, the state will give a $20 coupon for ethanol to drivers arriving from the nearby states of Kansas, Illinois, Texas, Colorado, Missouri, Wisconsin, North Dakota, Iowa, Minnesota and Nebraska. The coupons are redeemable only in South Dakota. The state is one of the largest producers of ethanol, so this promotion benefits both tourism and one of South Dakota’s biggest industries. The initial response to this promotion has been overwhelming; the state was expecting to distribute no more than 3,000 vouchers and more than 12,000 vouchers have already been requested. 5. Hotels.com. This giant hotel booking site has launched a program rewarding travelers who book two nights or more online from May 1 to May 29 for stays through July 10. Travelers will receive up to $30 back by mail-in rebate, and the rebate form is right on the Web site. 6. Wintergreen Resort, Virginia. This luxury resort nestled on the slopes of the Blue Ridge Mountains is offering a “Fuel Friendly” escape that will reimburse up to $75 in gasoline charges when travelers stay at the resort for three nights. To receive reimbursement, you much present gas receipts for purchases of gasoline used to drive to the resort. 7. Whistler, Canada. Whistleraccommodation.com, an online booking agent for this sprawling mountain resort in British Columbia, is offering C$50 of free gas to anyone booking three to six nights by the end of August and arriving before October 31. For those staying seven nights or more, the gas rebate is doubled. 8. Traverse City, Michigan. The Traverse City Convention & Visitors Bureau will give a $25 Speedway gas card to every visitor who calls to reserve a stay of four nights or longer at any of its 43 participating hotels, motels or resorts between now and Labor Day. The cards are redeemable for gas or other merchandise at Speedway service stations anywhere in the country. To qualify, travelers simply book their rooms through the Bureau’s toll-free “Pump Up Your Summer” reservations line, 1-800-714-0051. This gas card has the impact of reducing a $3-a-gallon gas price to $2 a gallon for a visitor who makes a 500-mile round trip to Traverse City in a car that averages 20 miles per gallon. 9. Mount Bachelor Village Resort, Bend, Oregon. For travelers staying at least two nights, this all-season resort set on the banks of the Deschutes River is offering a “Free Fuel for Guests” program consisting of a $50 gas card. The resort offers spa packages and plenty of outdoor activities as well as a series of summer concerts ranging from rock to country and western. 10. Virginia Beach, Virginia. Gold Key Resorts in this vacation region has announced a $20 gasoline voucher redeemable in downtown Virginia Beach for anyone booking a vacation with an arrival date before May 25. Gold Key has a collection of packages that qualify, ranging from $49 to $319 based on three days and two nights. For more information about this promotion, call 1-800-492-9861. Travelers who can’t find free gas, or who aren’t interested in trading gas vouchers for hotel rooms, can always look for the best deal at the pump. Two Web sites will lead these travelers to the best places to spend the least for gasoline. • AAA’s Daily Fuel Gauge Report lists average gasoline prices on a state-by-state basis. This site is perfect for a general idea of which states have the lowest prices. • Gasbuddy.com, a similar site, has reports from individuals across the United States and Canada. These reporters provide actual gas station prices together with names and locations of stations that have current gas deals. More gas deals may pop up as the summer goes by, and they might not be widely advertised. So, tell your reservations agent that you are driving in from a distance, and ask if the hotel is offering any sort of gas promotion to make the trip worthwhile. The question is sometimes all that is needed to shake something loose. Drive safe and enjoy the deal. Charles Leocha is nationally-recognized expert on saving money and the publisher of Tripso. He is also the Boston-based author of "SkiSnowboard America & Canada." E-mail him or visit his Web site. Source: www.msnbc.com
Tuesday, May 16, 2006
How Does My Realtor Work?
How Does My Realtor Work?
May 16, 2006
I have been in this business 7 years now and find the most important thing I can do is educate my clients. There are so many parts of my business that I think my clients already know and understand. I found that this was not the case and feel this is one of the most misunderstood aspects, but this is a very delicate topic as it speaks of how a Real Estate agent is paid. I am sure if we were speaking of your salary you would understand.
If you work at the average 9-5 job you are paid an hourly salary and your taxes are taken out for you by your payroll department. As a Realtor we are paid a commission. This commission is not paid to us until a home closes. So if you decide to work with 1 Realtor and you look at homes one day then say you go to an open house that weekend who would you work with? Well if you decided to go ahead and work with the Realtor at the open house because it was convenient, the other agent that you originally established a relationship with and showed you homes would not be paid.
For this reason there is a form called a buyers broker agreement that you would sign just like you would sign a contract to sell your home. This is very popular on the east coast and is gaining popularity here on the west coast. This agreement states that you agree to work with that 1 Realtor only for a specified period of time.
Now I am not saying that you should just work with anyone. You should be able to release yourself from the contract if that agent is not performing. I have often heard from clients as well as close friends “Why would I just want 1 Realtor looking if I could have 2 or 3”? Because the 1 Realtor you are working with has access to all the same information as Realtor #2 and 3. But they may not all work the same so find an agent that fits your needs and establish a relationship with them. I find when I do this and get to know my clients I can be without them and find a house and know it is a perfect fit for them. I have done this with many clients as well as my out of state clients.
I hope this has given you a better understanding to “How Your Realtor Works” and I welcome your comments.
Sincerely,
Bridget R Sturm
http://www.SellingNorthCounty.com/
www.HomePages.com/Oceanside
760 533 4551
Bridget@SellingNorthCounty.com
May 16, 2006
I have been in this business 7 years now and find the most important thing I can do is educate my clients. There are so many parts of my business that I think my clients already know and understand. I found that this was not the case and feel this is one of the most misunderstood aspects, but this is a very delicate topic as it speaks of how a Real Estate agent is paid. I am sure if we were speaking of your salary you would understand.
If you work at the average 9-5 job you are paid an hourly salary and your taxes are taken out for you by your payroll department. As a Realtor we are paid a commission. This commission is not paid to us until a home closes. So if you decide to work with 1 Realtor and you look at homes one day then say you go to an open house that weekend who would you work with? Well if you decided to go ahead and work with the Realtor at the open house because it was convenient, the other agent that you originally established a relationship with and showed you homes would not be paid.
For this reason there is a form called a buyers broker agreement that you would sign just like you would sign a contract to sell your home. This is very popular on the east coast and is gaining popularity here on the west coast. This agreement states that you agree to work with that 1 Realtor only for a specified period of time.
Now I am not saying that you should just work with anyone. You should be able to release yourself from the contract if that agent is not performing. I have often heard from clients as well as close friends “Why would I just want 1 Realtor looking if I could have 2 or 3”? Because the 1 Realtor you are working with has access to all the same information as Realtor #2 and 3. But they may not all work the same so find an agent that fits your needs and establish a relationship with them. I find when I do this and get to know my clients I can be without them and find a house and know it is a perfect fit for them. I have done this with many clients as well as my out of state clients.
I hope this has given you a better understanding to “How Your Realtor Works” and I welcome your comments.
Sincerely,
Bridget R Sturm
http://www.SellingNorthCounty.com/
www.HomePages.com/Oceanside
760 533 4551
Bridget@SellingNorthCounty.com
Tuesday, May 02, 2006
Economists Predict Soft Landing for Housing
Author: Beth Bresnahan
Publishing date: 05/01/06
RISMEDIA, May 2, 2006—After soaring to record levels for three consecutive years, the single-family housing market is gliding toward a “soft landing” in 2006, as rising interest rates, affordability issues and a reduced role for investors/speculators contribute to a softening in demand, according to economists at the National Association of Home Builders (NAHB) Construction Forecast Conference in Washington, D.C. on April 27. “After topping out in the third quarter of last year, it is pretty clear that the housing sector is in a period of transition. Sales and starts are trending lower toward more sustainable levels,” said NAHB Chief Economist David Seiders. Even so, the slowing housing market is not likely to derail the expansion as housing yields its position as the economy’s major growth engine to other sectors, he added. Expressing a similar assessment, Michael Moran, chief economist at Daiwa Securities America Inc., said: “The housing sector is going through an adjustment, not a collapse.” Taking a bullish view on the current economic and inflation outlook, Jim Glassman, managing director and senior policy strategist with JP Morgan Chase & Co., said these factors will bode well for housing. “Real estate is pricing itself back to reality and in the long-run it is reasonable to expect starts in the 1.8 million to 2 million range,” said Glassman. “Housing won't continue to make the same contribution to the economy that it has. But when I think about where the economy is, I think we're in the fifth inning with a good chance of going into extra innings. This expansion may prove to be the longest one ever seen. “Inflation is key to the longevity in the current economic expansion and to the underlying health of the building business,” he said, noting that Federal Reserve Board policymakers are doing an excellent job of keeping inflation in check. Economists agreed that the Fed will raise its benchmark short-term rate to 5 percent at its May 10 meeting, which would be the 16th consecutive quarter-percentage point increase since the Fed started lifting it from 1 percent in June of 2004. Both Seiders and Glassman believe the 5 percent mark should be enough to ease inflationary pressures in the months ahead and to keep the Fed from moving forward with additional rate hikes. However, citing higher energy prices and a low unemployment rate of 4.7 percent, Moran predicted that the central bank won’t stop until it raises the federal funds rate to 5.5 percent. Looking to the future, Seiders said that new home sales in the first quarter of this year were down 10 percent from the fourth quarter in 2005, and that he expects them to ease further in the coming months before leveling off in 2007. NAHB is forecasting that new home sales will hit 1.13 million units in 2006, down 12 percent from last year’s all-time high of 1.28 million units, and then move down slightly in 2007 to 1.09 million. “Hopefully, most of this decline will be due to investors and speculators stepping out of the market. What we don’t want to see is investors dumping homes on the market,” said Seiders. After posting a record 1.716 million single-family starts in 2005, NAHB is predicting that new home construction will level off to 1.595 million units in 2006 and 1.488 million in 2007, which would still rank high by historical standards. Commenting on the dramatic home price increases in many markets in recent years, Seiders said home price appreciation is expected to fall from an average 12 percent in 2005 to about 4 percent in 2007 and that mortgage rates should move up to 6.7 percent later this year. Seiders added that the multifamily market has remained “eerily stable” since the late 1990s, and is expected to continue the same pattern in 2006, with starts dropping slightly to 351,000 apartment units from 355,000 last year. The rental market has solidified, and Seiders said he expects it to regain some ground while the red-hot condo markets start to cool. Seiders is also predicting that residential remodeling expenditures will continue on an upward trajectory, in part because "an immense amount of home equity will continue to support this spending." The Regional Outlook Looking at housing on a more localized level, Bernard Markstein, NAHB’s Director of Forecasting, said that the forces driving housing demand vary significantly by region. Among the forces affecting demand are home prices, population growth, household formation, and growth in employment opportunities. Other factors that can greatly affect demand include immigration and migration, energy prices, large-scale natural disasters such as Hurricane Katrina, and an area’s appeal as a second home location. Mark Zandi, chief economist for Moody’s Economy.com, said that “builders have done a pretty good job of matching supply and demand” and that “nationally, house prices and supply will go flat in 2006, 2007 and 2008.” This implies that there will be some price declines in key markets, he said, but the markets are going to “correct, not crash.” Markets where Zandi anticipates significant corrections—defined as more than a 10 percent peak-to-trough decline— are in the Northeast, the Mid-Atlantic, Florida, California, parts of Arizona, and Las Vegas. “Any fundamental rise in interest rates will bite hard,” Zandi said. “The rise will lock out two key groups that are important to local/regional markets: first-time home buyers and investors (investors include second home buyers and other buyers in it for the long term, not just those in the market with the intent to flip and get out.) “The Bubble” Revisited Addressing a question that has generated endless speculation in recent years, Thomas Lawler, a housing and mortgage market consultant who worked for Fannie Mae for 22 years, said “Was there a national bubble? Nationwide, no, but in some regions, absolutely.” Lawler, who spoke on house prices and local dynamics, noted that in some areas, “all of the signs of a bubble were present: a surge in speculative investing; a surge in innovative financing; easy credit and loose underwriting; home inspection waivers; and home purchases sight unseen. You had to be ‘on something’ not to see a bubble in some areas,” he said. Housing Finance With interest rates on the rise, housing finance was a major topic at the conference. “Housing is the most interest rate sensitive industry in the country,” said Frank Nothaft, vice president and chief economist of Freddie Mac. “Mortgage interest rates, home prices and family incomes – these are the three ingredients that families think about when deciding to buy a home. “We expect mortgage interest rates to rise slowly through the end of 2006, but they’ll still remain well below historical norms,” Nothaft said. “The affordability problem is a function of increases in home prices.” He pointed out that among families with prime mortgages, 87 percent of the loans are fixed-rate. “So even if the Federal Reserve continues to raise interest rates, most American families will be insulated because they have fixed-rate mortgages.” The major tailwinds that have driven loan originations in recent years have swung 180 degrees, and could be major headwinds in the coming years, said Scott Anderson, senior economist for Wells Fargo & Company. These include rising interest rates, weakening demographics, increasing housing inventories, and less investor demand – especially if the stock market picks up. “The federal reserve is doing its best to take away the punch bowl,” Anderson said. “It should be no surprise that the housing market is going to slow down.” The NAHB Construction Forecast Conference was sponsored by the National Council of the Housing Industry (NCHI), the Supplier 100 of NAHB, Wells Fargo Home Mortgage, Fannie Mae and Countrywide Home Loans.
Publishing date: 05/01/06
RISMEDIA, May 2, 2006—After soaring to record levels for three consecutive years, the single-family housing market is gliding toward a “soft landing” in 2006, as rising interest rates, affordability issues and a reduced role for investors/speculators contribute to a softening in demand, according to economists at the National Association of Home Builders (NAHB) Construction Forecast Conference in Washington, D.C. on April 27. “After topping out in the third quarter of last year, it is pretty clear that the housing sector is in a period of transition. Sales and starts are trending lower toward more sustainable levels,” said NAHB Chief Economist David Seiders. Even so, the slowing housing market is not likely to derail the expansion as housing yields its position as the economy’s major growth engine to other sectors, he added. Expressing a similar assessment, Michael Moran, chief economist at Daiwa Securities America Inc., said: “The housing sector is going through an adjustment, not a collapse.” Taking a bullish view on the current economic and inflation outlook, Jim Glassman, managing director and senior policy strategist with JP Morgan Chase & Co., said these factors will bode well for housing. “Real estate is pricing itself back to reality and in the long-run it is reasonable to expect starts in the 1.8 million to 2 million range,” said Glassman. “Housing won't continue to make the same contribution to the economy that it has. But when I think about where the economy is, I think we're in the fifth inning with a good chance of going into extra innings. This expansion may prove to be the longest one ever seen. “Inflation is key to the longevity in the current economic expansion and to the underlying health of the building business,” he said, noting that Federal Reserve Board policymakers are doing an excellent job of keeping inflation in check. Economists agreed that the Fed will raise its benchmark short-term rate to 5 percent at its May 10 meeting, which would be the 16th consecutive quarter-percentage point increase since the Fed started lifting it from 1 percent in June of 2004. Both Seiders and Glassman believe the 5 percent mark should be enough to ease inflationary pressures in the months ahead and to keep the Fed from moving forward with additional rate hikes. However, citing higher energy prices and a low unemployment rate of 4.7 percent, Moran predicted that the central bank won’t stop until it raises the federal funds rate to 5.5 percent. Looking to the future, Seiders said that new home sales in the first quarter of this year were down 10 percent from the fourth quarter in 2005, and that he expects them to ease further in the coming months before leveling off in 2007. NAHB is forecasting that new home sales will hit 1.13 million units in 2006, down 12 percent from last year’s all-time high of 1.28 million units, and then move down slightly in 2007 to 1.09 million. “Hopefully, most of this decline will be due to investors and speculators stepping out of the market. What we don’t want to see is investors dumping homes on the market,” said Seiders. After posting a record 1.716 million single-family starts in 2005, NAHB is predicting that new home construction will level off to 1.595 million units in 2006 and 1.488 million in 2007, which would still rank high by historical standards. Commenting on the dramatic home price increases in many markets in recent years, Seiders said home price appreciation is expected to fall from an average 12 percent in 2005 to about 4 percent in 2007 and that mortgage rates should move up to 6.7 percent later this year. Seiders added that the multifamily market has remained “eerily stable” since the late 1990s, and is expected to continue the same pattern in 2006, with starts dropping slightly to 351,000 apartment units from 355,000 last year. The rental market has solidified, and Seiders said he expects it to regain some ground while the red-hot condo markets start to cool. Seiders is also predicting that residential remodeling expenditures will continue on an upward trajectory, in part because "an immense amount of home equity will continue to support this spending." The Regional Outlook Looking at housing on a more localized level, Bernard Markstein, NAHB’s Director of Forecasting, said that the forces driving housing demand vary significantly by region. Among the forces affecting demand are home prices, population growth, household formation, and growth in employment opportunities. Other factors that can greatly affect demand include immigration and migration, energy prices, large-scale natural disasters such as Hurricane Katrina, and an area’s appeal as a second home location. Mark Zandi, chief economist for Moody’s Economy.com, said that “builders have done a pretty good job of matching supply and demand” and that “nationally, house prices and supply will go flat in 2006, 2007 and 2008.” This implies that there will be some price declines in key markets, he said, but the markets are going to “correct, not crash.” Markets where Zandi anticipates significant corrections—defined as more than a 10 percent peak-to-trough decline— are in the Northeast, the Mid-Atlantic, Florida, California, parts of Arizona, and Las Vegas. “Any fundamental rise in interest rates will bite hard,” Zandi said. “The rise will lock out two key groups that are important to local/regional markets: first-time home buyers and investors (investors include second home buyers and other buyers in it for the long term, not just those in the market with the intent to flip and get out.) “The Bubble” Revisited Addressing a question that has generated endless speculation in recent years, Thomas Lawler, a housing and mortgage market consultant who worked for Fannie Mae for 22 years, said “Was there a national bubble? Nationwide, no, but in some regions, absolutely.” Lawler, who spoke on house prices and local dynamics, noted that in some areas, “all of the signs of a bubble were present: a surge in speculative investing; a surge in innovative financing; easy credit and loose underwriting; home inspection waivers; and home purchases sight unseen. You had to be ‘on something’ not to see a bubble in some areas,” he said. Housing Finance With interest rates on the rise, housing finance was a major topic at the conference. “Housing is the most interest rate sensitive industry in the country,” said Frank Nothaft, vice president and chief economist of Freddie Mac. “Mortgage interest rates, home prices and family incomes – these are the three ingredients that families think about when deciding to buy a home. “We expect mortgage interest rates to rise slowly through the end of 2006, but they’ll still remain well below historical norms,” Nothaft said. “The affordability problem is a function of increases in home prices.” He pointed out that among families with prime mortgages, 87 percent of the loans are fixed-rate. “So even if the Federal Reserve continues to raise interest rates, most American families will be insulated because they have fixed-rate mortgages.” The major tailwinds that have driven loan originations in recent years have swung 180 degrees, and could be major headwinds in the coming years, said Scott Anderson, senior economist for Wells Fargo & Company. These include rising interest rates, weakening demographics, increasing housing inventories, and less investor demand – especially if the stock market picks up. “The federal reserve is doing its best to take away the punch bowl,” Anderson said. “It should be no surprise that the housing market is going to slow down.” The NAHB Construction Forecast Conference was sponsored by the National Council of the Housing Industry (NCHI), the Supplier 100 of NAHB, Wells Fargo Home Mortgage, Fannie Mae and Countrywide Home Loans.
Thursday, April 27, 2006
Market Update
For release:Tuesday, April 25, 2006
Median price of a home in California at $561,350 in March, up 13 percent from year ago; sales decrease 15.1 percent
LOS ANGELES (April 25) – The median price of an existing home in California increased 13 percent in March and sales decreased 15.1 percent compared with the same period a year ago, the California Association of REALTORS® (C.A.R.) reported today.
“March is the month in which we typically see the market gear up for peak season activity, and this year is no exception,” said C.A.R. President Vince Malta. “Seasonally adjusted statewide sales increased 4.9 percent compared with February and the statewide median rose 4.8 percent compared with the prior month. This is very similar to March 2005, when sales rose 4.4 percent month-to-month and the median price registered a 5.5 percent increase.
“The level of sales activity remained below the record-setting levels that occurred over the last two years, but the pace of sales appears to be picking up,” he said. ”Many buyers who had adopted a ‘wait-and-see’ approach with respect to interest rates earlier this year realize that while rates are higher than they were six months or a year ago, they still remain just above historically low levels.”
Closed escrow sales of existing, single-family detached homes in California totaled 539,170 in March 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 15.1 percent from the 634,700 sales pace recorded in March 2005.
The statewide sales figure represents what the total number of homes sold during 2006 would be if sales maintained the March pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
The median price of an existing, single-family detached home in California during March 2006 was $561,350, a 13 percent increase over the revised $496,890 median for March 2005, C.A.R. reported. The March 2006 median price increased 4.8 percent compared with February’s revised $535,480 median price.
“The inventory of homes for sale fell from a 6.6 month supply in February to 4.8 months in March,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “Unsold inventory climbed significantly in the first two months of this year as listings increased and sales declined. Although the supply of homes for sale increased again in March, this was more than offset by a seasonal increase in sales, prompting a decrease in the unsold inventory index. We expect the supply of homes relative to sales to decline gradually over the next few months, although inventory levels will likely remain higher than those of the last two years.”
Highlights of C.A.R.’s resale housing figures for March 2006:
. C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in March 2006 was 4.8 months, compared with 2.2 months (revised) for the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.
. Thirty-year fixed mortgage interest rates averaged 6.32 percent during March 2006, compared with 5.93 percent in March 2005, according to Freddie Mac. Adjustable mortgage interest rates averaged 5.42 percent in March 2006 compared with 4.23 percent in March 2005.
. The median number of days it took to sell a single-family home was 44 days in March 2006, compared with 30 days (revised) for the same period a year ago.
Regional MLS sales and price information is contained in the tables that accompany this press release. Regional sales data are not adjusted to account for seasonal factors that can influence home sales. The MLS median price and sales data for detached homes are generated from a survey of more than 90 associations of REALTORS throughout the state. MLS median price and sales data for condominiums are based on a survey of more than 60 associations. The median price for both detached homes and condominiums represents closed escrow sales.
In a separate report covering more localized statistics generated by C.A.R. and DataQuick Information Systems, 89.8% percent or 369 of 411 cities and communities showed an increase in their respective median home prices from a year ago. DataQuick statistics are based on county records data rather than MLS information. DataQuick Information Systems is a subsidiary of Vancouver-based MacDonald Dettwiler and Associates. (The top 10 lists are generated for incorporated cities with a minimum of 30 recorded sales in the month.)
Note: Large changes in local median home prices typically indicate both local home price appreciation, and often, large shifts in the composition of housing market activity. Some of the variations in median home prices may be exaggerated due to compositional changes in housing demand. The DataQuick tables listing median home prices in California cities and counties are accessible through C.A.R. Online at http://www.car.org/index.php?id=MzYwNTQ=.
. Statewide, the 10 cities and communities with the highest median home prices in California during March 2006 were: Laguna Beach, $1,827,000; Burlingame, $1,720,000; Beverly Hills, $1,665,000; Los Altos, $1,626,000; Manhattan Beach, $1,625,000; Newport Beach, $1,520,000; Coronado, $1,463,750; Saratoga, $1,391,000; Los Gatos, $1,300,000; Calabasas, $1,259,500.
. Statewide, the 10 cities and communities with the greatest median home price increases in March 2006 compared with the same period a year ago were: Reedley, 58.9 percent; Atwater, 52 percent; Twentynine Palms, 48.8 percent; Barstow, 45.7 percent; Beaumont, 45.6 percent; Taft, 44 percent; California City, 43.1 percent; Burlingame, 40.4 percent; Porterville, 40.3 percent; Highland, 36.8 percent.
Leading the Way...® in California real estate for more than 100 years, the California Association of REALTORS® (http://www.car.org/) is one of the largest state trade organizations in the United States, with more than 185,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.Leading the Way...® in California real estate for more than 100 years, the California Association of REALTORS® (http://www.car.org/) is one of the largest state trade organizations in the United States, with more than 185,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
March 2006 Regional Sales and Price Activity*Regional and Condo Sales Data Not Seasonally Adjusted
Median Price
Percent Change in Price from Prior Month
Percent Change in Price from Prior Year
Percent Change in Sales from Prior Month
Percent Change in Sales from Prior Year
Mar-06
Feb-06
Mar-05
Feb-06
Mar-05
Statewide
Calif. (sf)
$561,350
4.8%
13.0%
4.9%
-15.1%
Calif. (condo)
$431,560
-0.4%
8.7%
48.8%
-23.0%
Region
Central Valley
$350,930
0.0%
8.1%
51.8%
-24.0%
High Desert
$326,710
-0.6%
23.6%
44.8%
-4.4%
Los Angeles
$556,750
-1.6%
19.5%
49.0%
-16.4%
Monterey Region
$710,860
1.5%
6.2%
48.4%
-21.8%
Monterey County
$685,000
-2.1%
11.9%
45.2%
-25.4%
Santa Cruz County
$740,000
3.9%
2.1%
53.3%
-15.9%
Northern California
$434,410
2.6%
8.2%
62.0%
-19.8%
Northern Wine Country
$623,380
5.7%
4.4%
58.8%
-11.9%
Orange County
$717,320
-0.5%
7.5%
63.7%
-27.5%
Palm Sprgs/Lwr Desert
$391,020
7.4%
na
56.0%
na
Riverside/S. Bernardino
$403,000
2.7%
16.1%
50.0%
-16.3%
Sacramento
$376,010
-0.9%
5.2%
52.2%
-27.2%
San Diego
$607,370
-0.2%
3.2%
54.8%
-10.4%
San Francisco Bay
$729,360
1.4%
3.6%
64.9%
-11.4%
San Luis Obispo
$586,270
-3.0%
18.8%
35.1%
-18.8%
Santa Barbara County
$750,000
-4.8%
22.4%
62.5%
-2.7%
S. Barbara S. Coast
$1,190,000
2.6%
3.5%
61.4%
19.5%
No. S. Barbara County
$461,700
-3.8%
1.6%
60.7%
-18.2%
Santa Clara
$760,000
-0.7%
3.7%
62.9%
-13.7%
Ventura
$678,850
-0.8%
7.9%
60.8%
-18.1%na – not available
*Based on closed escrow sales of single family, detached homes only (no condos). Reported month to month changes in sales activity may overstate actual changes because of the small size of individual regional samples. Movements in sales prices should not be interpreted as measuring changes in the cost of a standard home. Prices are influenced by changes in cost and changes in the characteristics and size of homes actually sold.
sf = single family, detached home
Source: California Association of REALTORS®
Median Prices By Region - Current Month vs. Year Ago
Mar-06
Feb-06
Mar-05
Statewide
Calif. (sf)
$561,350
$535,480
r
$496,890
r
Calif. (condo)
$431,560
$433,140
$397,040
r
Region
Central Valley
$350,930
$350,830
$324,640
High Desert
$326,710
$328,690
$264,320
Los Angeles
$556,750
$565,600
$465,780
r
Monterey Region
$710,860
$700,560
$669,350
Monterey County
$685,000
$700,000
$612,000
Santa Cruz County
$740,000
$712,000
$725,000
Northern California
$434,410
$423,360
$401,480
Northern Wine Country
$623,380
$589,550
$596,970
Orange County
$717,320
$721,190
$667,200
Palm Sprgs/Lwr Desert
$391,020
$363,960
na
Riverside/S. Bernardino
$403,000
$392,520
$347,200
Sacramento
$376,010
$379,240
$357,360
San Diego
$607,370
$608,770
$588,800
San Francisco Bay
$729,360
$719,220
$704,260
San Luis Obispo
$586,270
$604,170
$493,400
Santa Barbara County
$750,000
$787,500
$612,500
r
S. Barbara S. Coast
$1,190,000
$1,160,000
$1,150,000
r
No. S. Barbara County
$461,700
$480,000
$454,540
Santa Clara
$760,000
$765,000
$733,000
Ventura
$678,850
$684,070
$629,130
Mar-06
Feb-06
Mar-05
Statewide
Calif. (sf)
$561,350
$535,480
r
$496,890
r
Calif. (condo)
$431,560
$433,140
$397,040
r
Region
Central Valley
$350,930
$350,830
$324,640
High Desert
$326,710
$328,690
$264,320
Los Angeles
$556,750
$565,600
$465,780
r
Monterey Region
$710,860
$700,560
$669,350
Monterey County
$685,000
$700,000
$612,000
Santa Cruz County
$740,000
$712,000
$725,000
Northern California
$434,410
$423,360
$401,480
Northern Wine Country
$623,380
$589,550
$596,970
Orange County
$717,320
$721,190
$667,200
Palm Sprgs/Lwr Desert
$391,020
$363,960
na
Riverside/S. Bernardino
$403,000
$392,520
$347,200
Sacramento
$376,010
$379,240
$357,360
San Diego
$607,370
$608,770
$588,800
San Francisco Bay
$729,360
$719,220
$704,260
San Luis Obispo
$586,270
$604,170
$493,400
Santa Barbara County
$750,000
$787,500
$612,500
r
S. Barbara S. Coast
$1,190,000
$1,160,000
$1,150,000
r
No. S. Barbara County
$461,700
$480,000
$454,540
Santa Clara
$760,000
$765,000
$733,000
Ventura
$678,850
$684,070
$629,130
na - not availabler - revisedSource: California Association of REALTORS
Median price of a home in California at $561,350 in March, up 13 percent from year ago; sales decrease 15.1 percent
LOS ANGELES (April 25) – The median price of an existing home in California increased 13 percent in March and sales decreased 15.1 percent compared with the same period a year ago, the California Association of REALTORS® (C.A.R.) reported today.
“March is the month in which we typically see the market gear up for peak season activity, and this year is no exception,” said C.A.R. President Vince Malta. “Seasonally adjusted statewide sales increased 4.9 percent compared with February and the statewide median rose 4.8 percent compared with the prior month. This is very similar to March 2005, when sales rose 4.4 percent month-to-month and the median price registered a 5.5 percent increase.
“The level of sales activity remained below the record-setting levels that occurred over the last two years, but the pace of sales appears to be picking up,” he said. ”Many buyers who had adopted a ‘wait-and-see’ approach with respect to interest rates earlier this year realize that while rates are higher than they were six months or a year ago, they still remain just above historically low levels.”
Closed escrow sales of existing, single-family detached homes in California totaled 539,170 in March 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 15.1 percent from the 634,700 sales pace recorded in March 2005.
The statewide sales figure represents what the total number of homes sold during 2006 would be if sales maintained the March pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
The median price of an existing, single-family detached home in California during March 2006 was $561,350, a 13 percent increase over the revised $496,890 median for March 2005, C.A.R. reported. The March 2006 median price increased 4.8 percent compared with February’s revised $535,480 median price.
“The inventory of homes for sale fell from a 6.6 month supply in February to 4.8 months in March,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “Unsold inventory climbed significantly in the first two months of this year as listings increased and sales declined. Although the supply of homes for sale increased again in March, this was more than offset by a seasonal increase in sales, prompting a decrease in the unsold inventory index. We expect the supply of homes relative to sales to decline gradually over the next few months, although inventory levels will likely remain higher than those of the last two years.”
Highlights of C.A.R.’s resale housing figures for March 2006:
. C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in March 2006 was 4.8 months, compared with 2.2 months (revised) for the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.
. Thirty-year fixed mortgage interest rates averaged 6.32 percent during March 2006, compared with 5.93 percent in March 2005, according to Freddie Mac. Adjustable mortgage interest rates averaged 5.42 percent in March 2006 compared with 4.23 percent in March 2005.
. The median number of days it took to sell a single-family home was 44 days in March 2006, compared with 30 days (revised) for the same period a year ago.
Regional MLS sales and price information is contained in the tables that accompany this press release. Regional sales data are not adjusted to account for seasonal factors that can influence home sales. The MLS median price and sales data for detached homes are generated from a survey of more than 90 associations of REALTORS throughout the state. MLS median price and sales data for condominiums are based on a survey of more than 60 associations. The median price for both detached homes and condominiums represents closed escrow sales.
In a separate report covering more localized statistics generated by C.A.R. and DataQuick Information Systems, 89.8% percent or 369 of 411 cities and communities showed an increase in their respective median home prices from a year ago. DataQuick statistics are based on county records data rather than MLS information. DataQuick Information Systems is a subsidiary of Vancouver-based MacDonald Dettwiler and Associates. (The top 10 lists are generated for incorporated cities with a minimum of 30 recorded sales in the month.)
Note: Large changes in local median home prices typically indicate both local home price appreciation, and often, large shifts in the composition of housing market activity. Some of the variations in median home prices may be exaggerated due to compositional changes in housing demand. The DataQuick tables listing median home prices in California cities and counties are accessible through C.A.R. Online at http://www.car.org/index.php?id=MzYwNTQ=.
. Statewide, the 10 cities and communities with the highest median home prices in California during March 2006 were: Laguna Beach, $1,827,000; Burlingame, $1,720,000; Beverly Hills, $1,665,000; Los Altos, $1,626,000; Manhattan Beach, $1,625,000; Newport Beach, $1,520,000; Coronado, $1,463,750; Saratoga, $1,391,000; Los Gatos, $1,300,000; Calabasas, $1,259,500.
. Statewide, the 10 cities and communities with the greatest median home price increases in March 2006 compared with the same period a year ago were: Reedley, 58.9 percent; Atwater, 52 percent; Twentynine Palms, 48.8 percent; Barstow, 45.7 percent; Beaumont, 45.6 percent; Taft, 44 percent; California City, 43.1 percent; Burlingame, 40.4 percent; Porterville, 40.3 percent; Highland, 36.8 percent.
Leading the Way...® in California real estate for more than 100 years, the California Association of REALTORS® (http://www.car.org/) is one of the largest state trade organizations in the United States, with more than 185,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.Leading the Way...® in California real estate for more than 100 years, the California Association of REALTORS® (http://www.car.org/) is one of the largest state trade organizations in the United States, with more than 185,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
March 2006 Regional Sales and Price Activity*Regional and Condo Sales Data Not Seasonally Adjusted
Median Price
Percent Change in Price from Prior Month
Percent Change in Price from Prior Year
Percent Change in Sales from Prior Month
Percent Change in Sales from Prior Year
Mar-06
Feb-06
Mar-05
Feb-06
Mar-05
Statewide
Calif. (sf)
$561,350
4.8%
13.0%
4.9%
-15.1%
Calif. (condo)
$431,560
-0.4%
8.7%
48.8%
-23.0%
Region
Central Valley
$350,930
0.0%
8.1%
51.8%
-24.0%
High Desert
$326,710
-0.6%
23.6%
44.8%
-4.4%
Los Angeles
$556,750
-1.6%
19.5%
49.0%
-16.4%
Monterey Region
$710,860
1.5%
6.2%
48.4%
-21.8%
Monterey County
$685,000
-2.1%
11.9%
45.2%
-25.4%
Santa Cruz County
$740,000
3.9%
2.1%
53.3%
-15.9%
Northern California
$434,410
2.6%
8.2%
62.0%
-19.8%
Northern Wine Country
$623,380
5.7%
4.4%
58.8%
-11.9%
Orange County
$717,320
-0.5%
7.5%
63.7%
-27.5%
Palm Sprgs/Lwr Desert
$391,020
7.4%
na
56.0%
na
Riverside/S. Bernardino
$403,000
2.7%
16.1%
50.0%
-16.3%
Sacramento
$376,010
-0.9%
5.2%
52.2%
-27.2%
San Diego
$607,370
-0.2%
3.2%
54.8%
-10.4%
San Francisco Bay
$729,360
1.4%
3.6%
64.9%
-11.4%
San Luis Obispo
$586,270
-3.0%
18.8%
35.1%
-18.8%
Santa Barbara County
$750,000
-4.8%
22.4%
62.5%
-2.7%
S. Barbara S. Coast
$1,190,000
2.6%
3.5%
61.4%
19.5%
No. S. Barbara County
$461,700
-3.8%
1.6%
60.7%
-18.2%
Santa Clara
$760,000
-0.7%
3.7%
62.9%
-13.7%
Ventura
$678,850
-0.8%
7.9%
60.8%
-18.1%na – not available
*Based on closed escrow sales of single family, detached homes only (no condos). Reported month to month changes in sales activity may overstate actual changes because of the small size of individual regional samples. Movements in sales prices should not be interpreted as measuring changes in the cost of a standard home. Prices are influenced by changes in cost and changes in the characteristics and size of homes actually sold.
sf = single family, detached home
Source: California Association of REALTORS®
Median Prices By Region - Current Month vs. Year Ago
Mar-06
Feb-06
Mar-05
Statewide
Calif. (sf)
$561,350
$535,480
r
$496,890
r
Calif. (condo)
$431,560
$433,140
$397,040
r
Region
Central Valley
$350,930
$350,830
$324,640
High Desert
$326,710
$328,690
$264,320
Los Angeles
$556,750
$565,600
$465,780
r
Monterey Region
$710,860
$700,560
$669,350
Monterey County
$685,000
$700,000
$612,000
Santa Cruz County
$740,000
$712,000
$725,000
Northern California
$434,410
$423,360
$401,480
Northern Wine Country
$623,380
$589,550
$596,970
Orange County
$717,320
$721,190
$667,200
Palm Sprgs/Lwr Desert
$391,020
$363,960
na
Riverside/S. Bernardino
$403,000
$392,520
$347,200
Sacramento
$376,010
$379,240
$357,360
San Diego
$607,370
$608,770
$588,800
San Francisco Bay
$729,360
$719,220
$704,260
San Luis Obispo
$586,270
$604,170
$493,400
Santa Barbara County
$750,000
$787,500
$612,500
r
S. Barbara S. Coast
$1,190,000
$1,160,000
$1,150,000
r
No. S. Barbara County
$461,700
$480,000
$454,540
Santa Clara
$760,000
$765,000
$733,000
Ventura
$678,850
$684,070
$629,130
Mar-06
Feb-06
Mar-05
Statewide
Calif. (sf)
$561,350
$535,480
r
$496,890
r
Calif. (condo)
$431,560
$433,140
$397,040
r
Region
Central Valley
$350,930
$350,830
$324,640
High Desert
$326,710
$328,690
$264,320
Los Angeles
$556,750
$565,600
$465,780
r
Monterey Region
$710,860
$700,560
$669,350
Monterey County
$685,000
$700,000
$612,000
Santa Cruz County
$740,000
$712,000
$725,000
Northern California
$434,410
$423,360
$401,480
Northern Wine Country
$623,380
$589,550
$596,970
Orange County
$717,320
$721,190
$667,200
Palm Sprgs/Lwr Desert
$391,020
$363,960
na
Riverside/S. Bernardino
$403,000
$392,520
$347,200
Sacramento
$376,010
$379,240
$357,360
San Diego
$607,370
$608,770
$588,800
San Francisco Bay
$729,360
$719,220
$704,260
San Luis Obispo
$586,270
$604,170
$493,400
Santa Barbara County
$750,000
$787,500
$612,500
r
S. Barbara S. Coast
$1,190,000
$1,160,000
$1,150,000
r
No. S. Barbara County
$461,700
$480,000
$454,540
Santa Clara
$760,000
$765,000
$733,000
Ventura
$678,850
$684,070
$629,130
na - not availabler - revisedSource: California Association of REALTORS
Wednesday, April 12, 2006
Housing Market to Stay on High Plateau
Author: Beth Bresnahan
Publishing date: 04/11/06
RISMEDIA, April 12, 2006—Home sales should generally level-out and remain at historically high levels, according to the National Association of Realtors®. David Lereah, NAR’s chief economist, said mortgage interest rates are trending up but will remain favorable. “Economic growth and job creation are providing a favorable backdrop for the housing market, but rising interest rates have an offsetting effect,” Lereah said. “Home sales will move up and down somewhat over the remainder of the year but stay at a high plateau, meaning this will be the third strongest year on record.” He expects the 30-year fixed-rate mortgage to rise to 6.9 percent by the end of the year. Growth in the U.S. gross domestic product is forecast at 3.7 percent in 2006, while the unemployment rate should average 4.8 percent. Existing-home sales are projected to drop 6.0 percent to 6.65 million this year from a record 7.08 million in 2005. New-home sales are likely fall 10.9 percent to 1.14 million from the record 1.28 million last year – both sectors would see the third best year following 2005 and 2004. Housing starts are forecast at 2.00 million in 2006, which is 3.2 percent below the 2.07 million in total starts last year. NAR President Thomas M. Stevens from Vienna, Va., said home prices are expected to cool, but not as much as in earlier projections. “Although housing inventories have been improving, the balance is still a bit more favorable for sellers and annual appreciation remains in double-digit territory,” said Stevens, senior vice president of NRT Inc. “Even so, the market is in a process of normalization – appreciation will return to normal single-digit patterns, providing solid investment returns into the future.” The national median existing-home price for all housing types is likely to increase 6.4 percent this year to $221,700, while the median new-home price is expected to rise 2.3 percent to $242,700. Inflation as measured by the Consumer Price Index is seen at 3.4 percent in 2006. Inflation-adjusted disposable personal income should grow 3.8 percent this year.
Publishing date: 04/11/06
RISMEDIA, April 12, 2006—Home sales should generally level-out and remain at historically high levels, according to the National Association of Realtors®. David Lereah, NAR’s chief economist, said mortgage interest rates are trending up but will remain favorable. “Economic growth and job creation are providing a favorable backdrop for the housing market, but rising interest rates have an offsetting effect,” Lereah said. “Home sales will move up and down somewhat over the remainder of the year but stay at a high plateau, meaning this will be the third strongest year on record.” He expects the 30-year fixed-rate mortgage to rise to 6.9 percent by the end of the year. Growth in the U.S. gross domestic product is forecast at 3.7 percent in 2006, while the unemployment rate should average 4.8 percent. Existing-home sales are projected to drop 6.0 percent to 6.65 million this year from a record 7.08 million in 2005. New-home sales are likely fall 10.9 percent to 1.14 million from the record 1.28 million last year – both sectors would see the third best year following 2005 and 2004. Housing starts are forecast at 2.00 million in 2006, which is 3.2 percent below the 2.07 million in total starts last year. NAR President Thomas M. Stevens from Vienna, Va., said home prices are expected to cool, but not as much as in earlier projections. “Although housing inventories have been improving, the balance is still a bit more favorable for sellers and annual appreciation remains in double-digit territory,” said Stevens, senior vice president of NRT Inc. “Even so, the market is in a process of normalization – appreciation will return to normal single-digit patterns, providing solid investment returns into the future.” The national median existing-home price for all housing types is likely to increase 6.4 percent this year to $221,700, while the median new-home price is expected to rise 2.3 percent to $242,700. Inflation as measured by the Consumer Price Index is seen at 3.4 percent in 2006. Inflation-adjusted disposable personal income should grow 3.8 percent this year.
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