Sunday, January 31, 2010

California Housing Inventory at 5-Year Low


California Housing Inventory at 5-Year Low

The inventory of California homes shrunk to a 5-year low in December, dropping to 50 days from 243 a year ago, according to estimates by the California Association of REALTORS®.

Because California’s housing market is the largest in the country, economists watch it closely as a predictor of where the rest of the country is going.

Continuing recovery will depend on the state’s ability to overcome its 12.4 unemployment rate.

"I'm convinced that once the general public believes prices have bottomed out and are coming up, more people will put their homes on the market," says Andrew LePage, an analyst at MDA DataQuick, a provider of housing data. "And that will probably coincide with the economy and job market improving."

Meanwhile practitioners are finding the market frustrating.

"Right now, we need more listings," says Lianne Pinkston, a Coldwell Banker associate in Morgan Hill, Calif., south of San Jose. "I have an all-cash investor, and they've wanted to buy a duplex or four-plex, and they've been making all-cash offers for over the asking price, and they're still not getting anything."


Source: The Wall Street Journal




Friday, January 29, 2010

Daily Forecast - Update GDP is UP.








January 29, 2010

By Danielle Hale, Research Economist

Daily Forecast Update

What does today's data mean for REALTORS® and consumers?

  • Today's data on the economy have reassured markets. The good news began with the Senate's confirmation of Chairman Bernanke yesterday, and continued today with the GDP release and Consumer Sentiment.
  • Reported GDP growth of 5.7 percent exceeded economists' expectations, is a significant improvement over the third quarter's 2.2 percent growth, and marks the second consecutive quarter of growth after 4 consecutive quarters of decline. Continued growth will eventually lead to hiring.
  • Positive consumer expectations for the future and assessment of current conditions led to the highest reading on consumer sentiment in the past two years. Consumer responses to questions about their own situation suggest that they do not expect overall economic improvements to translate quickly into new hiring and additional income. Consumer expectations about their personal situation may translate into spending that is lower than in a typical recovery.

Today's Data on GDP

  • The Bureau of Economic Analysis reported that GDP grew at an annualized rate of 5.7 percent in the fourth quarter 2009 from the third quarter. Inventory investment, increasing exports, and personal consumer spending led to GDP growth in the fourth quarter. As cash-for-clunker-motivated spending on durable goods phased out in the fourth quarter, consumer spending increased on non-durable goods and services.
  • Today's estimate is the "advance" estimate, one that is issued on the basis of data that is incomplete or subject to revision. While over long periods of time, there is not consistent bias in advance estimates, recent revisions have been more notable. For example, GDP estimates for the third quarter of 2009 were revised down to 2.2 percent from the "advance" estimate of 3.5 percent growth.

Consumer Sentiment

  • Consumer sentiment rose in January to 74.4, its highest level in two years. Not only do expectations for the future remain high, the index for current economic conditions is at its highest level since March 2008.
  • While consumers are optimistic about the overall economy, the report indicated that expectations for their personal finances were not quite as rosy. Twice as many consumers reported income declines as increases.

Senate Confirms Bernanke - Thursday

  • The Senate voted yesterday afternoon to confirm Chairman Ben Bernanke to another term at the helm of the Federal Reserve.
  • Chairman Bernanke had come under fire for what some argued was the Fed's role in causing the recent crisis, and some argued earlier in the week that his confirmation could be in doubt. Ultimately, his creative endeavors to combat the crisis, including the Fed's purchase of mortgage backed securities to hold down mortgage interest rates, seem to have carried him through to another four-year term.
This is one in a series of commentaries by the Research staff of the National Association of REALTORS®



Wednesday, January 27, 2010

Did You Know? Fixed Rates are UP from Previous weeks.


I had been harping on everyone to get themselves into a home and into a loan while the rates where low.

The rates where around 4.3 or so earlier and people actually asked me when the day would be when they would be higher. I told them no one has a crystal ball but rates do go up.

Funny thing they scoffed at me and said the rated would never go back about 5.0 or at the most 5.1%. Of course it was all in good natured teasing and ribbing. They mentioned as a Realtor I may know some stuff but I do not understand how banks work.

Truth be told I do not understand why banks do the thinks they do, but I do know they will get the max amount of their money as they can.

Not to be too mean,..but I am really not laughing. I was right and that is no insult to anyone. The truth is rates went up.

Will rates continue to rise? Likely they will. Will rates dip back to the below 4.5% anytime soon? Likely they will not.

Do I have a crystal ball? No, I do not. Does this mean with the coupling of higher home prices and higher interest rates the bottom has already come and gone? In a simple word - YES.

If you are thinking you need to sell or buy a home and take advantage of low rates - is today the day to call me?

YES! - Choosing your Realtor is an important choice and should not be taken lightly. It is important for both sides to understand that. With that being said, do I work with everyone I come into contact with? NO, I do not. Do I help everyone I can? YES!

You know the drill. I write it frequently. If you are serious about buying a home or selling a home, today, RIGHT NOW is the time to talk to me, or to someone!

Ken Webb - Realtor
OCAR, NAR, CAR
F1RST TEAM
Real Estate
Email: kenwebb@firstteam.com
Phone/Text: (949) 243-6649
DRE Lic # 01844181

SEARCH JUST LIKE AN AGENT
http://www.kwrealestate.listingbook.com

CURRENT REAL ESTATE NEWS
http://kenwebbkwrealestate.blogspot.com

UP TO THE MINUTE UPDATES ON TWITTER
http://twitter.com/KW_Real_Estate

STATE WIDE AND LOCAL REAL ESTATE FACTS & FIGURES
http://kenwebb.housingtrendsenewsletter.com/


"The finest compliment I could ever receive is a
referral from my friends and clients"



Daily Forecast - Update


Daily Forecast Update:
January 27, 2010

By Gregg Stratton, Research Economist
Daily Forecast Update

* NAR's monthly official forecast as of January 5th
* GDP 2009 Q4: +4.2%
* GDP 2010 Q1: +2.7%
* GDP 2010 Q2: +2.4%
* Unemployment rate by the mid-2010: 10.1%
* Average 30-year fixed mortgage rate by mid-2010 2009: 5.6%

What does today's data mean for REALTORS and consumers?

* New single-family home sales continued to struggle in December, falling by 7.6% from the previous month on a seasonally adjusted basis. New home sales are down 23% in 2009 from 2008. The median price of new single-family homes, however, rose in December to $221,300.
* Although new sales and new home starts are well below their historical averages, the recent decline in new construction has helped keep additional inventory off the market to the benefit of the existing home sale market. From 2000 to 2006, there were approximately 5 existing single-family homes sold for every one new home sale. In 2009, there were 12 existing single-family homes sold for every one new home sale.
* Mortgage loan applications declined this week for both refinancing and purchases despite interest rates still near 5%. The cessation in purchase applications is in part due to the initial expiration of the home buyer tax credit in November.
* Although the MBA weekly survey is somewhat volatile from week to week, and it omits all cash purchases, the recent decline in purchase applications is likely an indication of lower home sales in the first quarter of 2010 following the huge surge in home sales in the fourth quarter of 2009. NAR is predicting a 5.5M annualized sales pace in the first quarter of 2010, compared with 6M in the fourth quarter of last year. The projected first quarter pace is still above the total 2009 existing home sales of 5.1M.

New Home Sales

* New single-family home sales fell in December to an annualized rate of 342,000.
* Sales were revised upward for November by 15,000 to 370,000.
* December sales were 28,000 below the consensus for December of 370,000, or 7.6%.
* The median sales price of new single-family homes rose in December by 5.2% from November to $221,300.
* Month’s supply of new single-family homes rose to 8.2 months in December from 7.6 months in November.

Mortgage Applications

* According to MBA’s weekly survey, refinancing loan applications decreased in the week of January 27th by 15.1% from the previous week.
* Similarly, the index of purchase loan applications fell by 3.3% from the previous week.
* Purchase applications reached their recent peak in early October, approximately two months before the initial expiration of the first-time HBTC.
* The average contract interest rate on 30-year mortgages increased minimally to 5.02% in the current week.

Daily Forecast - Consumer Confidence





Daily Forecast Update: Case/Shiller Price, FHFA, and Consumer Confidence Indices

January 26, 2010

By Selma Lewis, Research Economist

Daily Forecast Update

What does today's data mean for REALTORS® and consumers?

  • Some good news, some bad news: Although measuring prices from third quarter of last year, today's S&P Case-Shiller home price index was in line with expectations. It did show a slight dip in prices from the previous month and a decline from the year before.
  • However, prices are up in 70 percent of the markets covered by the index from the month prior, particularly in Phoenix which has been flooded by foreclosures. Los Angeles, San Diego and San Francisco have also seen prices increase, and for at least six consecutive months. Annual figures show that Dallas, Denver, San Diego and San Francisco have shown price increases from a year ago.
  • Good News: the FHFA House Price Index, which covers purchase prices of houses backing mortgages that have been sold to or guaranteed by Fannie Mae or Freddie Mac, increased in November, 0.7 percent from the month prior, and 0.5 percent from the 12 month prior.
  • Good news: The Consumer Confidence Index for January showed some shy indication of optimism about the current economic climate. The Index this month rose to a 16-month high as consumers were a bit more positive and a bit less negative. The index is still well below the levels seen before 2008.

S&P/Case-Shiller Price Index

  • The S&P Case-Shiller home price index for 20 metropolitan areas declined a non-seasonally adjusted 5.3 percent compared to a year ago, to 146.28, and up 0.2 percent from the previous month. This was in line with economists' expectations. On a seasonally adjusted basis, the index continued an upward trend of 0.2 percent from the prior month, after a 0.3 percent rise in October.
  • Also, the home price index for 10 metropolitan areas declined a non-seasonally adjusted 4.5 percent since a year ago, and similarly 0.2 percent from the previous month. On an adjusted basis, 10-city index was unchanged from the previous month.
  • Compared to October, November prices were up in 14 of the 20 areas covered by the index on a seasonally adjusted basis. The largest month-to-month increased was seen in Phoenix, 1.6 percent, followed by San Francisco. In contrast, New York and Chicago were hit with the biggest drop, about 1 percent each.
  • It is important to keep in mind that the S&P/Case-Shiller Price Index is a 3-month rolling average of prices between September and November and published with a two month lag.

FHFA House Price Index

  • In today's release of the Federal Housing Finance Agency's monthly House Price Index, U.S. house prices rose 0.7 percent on a seasonally adjusted basis from October to November. On a year over year basis, November's figure shows U.S. house prices rose 0.5 percent. The U.S. index is currently. 10.3 percent below its April 2007 peak.
  • Regionally, seasonally adjusted monthly price changes from October to November ranged from -0.4 percent in the East South Central Division to + 2.3 percent in the Pacific Division.
  • The FHFA monthly index is calculated using purchase prices of houses backing mortgages that have been sold to or guaranteed by Fannie Mae or Freddie Mac.

Consumer Confidence Index

  • The latest figure by the Conference Board shows the Consumer Confidence Index again improved in January, following increase in December and November. The index is currently at 55.9 from 53.6 in December. The larger increase was seen in the present situation Index which increased by almost 5 points, where as the expectations index increased 0.6 points.
  • The confidence about the current labor markets improved some. Those stating jobs are "hard to get" decreased to 47.4 percent from December's 48.1 percent, while those believing jobs are "plentiful" increased to 4.3 percent, from 3.1 percent.
  • In terms of employment, the short term outlook is mixed. The percentage of consumers anticipating more jobs in the following months decreased to 15.5 percent from 16.4 percent in December, while those expecting fewer jobs decreased to 18.9 percent from 20.6 percent. Those expecting the same number of jobs in the next six months increased to 65.6 percent from 63.0 percent in December. Those expecting a decrease in their incomes declined to 16.2 percent from 18.4 percent.



Tuesday, January 26, 2010

Prices Continue to Rise - If you want to BUY - NOW is the time!




Existing-home sales fell as expected in December after first-time buyers rushed to complete deals during the months leading up to the original November deadline for the tax credit. However, prices rose from December 2008 and annual sales improved in 2009, according to the National Association of REALTORS®.

Existing-home sales—including single-family, townhomes, condominiums and co-ops—fell 16.7 percent to a seasonally adjusted annual rate of 5.45 million units in December from 6.54 million in November, but remain 15 percent above the 4.74 million-unit level in December 2008.

There were approximately 5,156,000 existing-home sales in 2009, which was 4.9 percent higher than the 4,913,000 transactions recorded in 2008. It was the first annual sales gain since 2005.

Tax Credit Creates Swing in Market

Lawrence Yun, NAR chief economist, says there were no surprises in the data.

“It’s significant that home sales remain above year-ago levels, but the market is going through a period of swings driven by the tax credit,” he said. “We’ll likely have another surge in the spring as home buyers take advantage of the extended and expanded tax credit. By early summer the overall market should benefit from more balanced inventory, and sales are on track to rise again in 2010."

However, Yun says, the job market remains a concern and could dampen the housing recovery. "Job creation is key to a continued recovery in the second half of the year,” he says.

An NAR practitioner survey shows first-time buyers purchased 43 percent of homes in December, down from 51 percent in November. Repeat buyers rose to 42 percent of transactions in December from 37 percent in November; the remaining sales were to investors.

The national median existing-home price for all housing types was $178,300 in December, which is 1.5 percent higher than December 2008.

“The median price rose because of an increased number of mid- to upper-priced homes in the sales mix,” Yun says. It was the first year-over-year gain in median price since August 2007.

Falling Inventories

NAR President Vicki Cox Golder said market conditions are challenging in some areas.

“There’s a shortage of lower-priced homes for sale in much of the country, resulting in multiple bids in some areas,” she says. “Raw unsold inventory has been trending down. As the market heats up again this spring, buyers may need to be prepared to move quickly on a particular home."

Total housing inventory at the end of December fell 6.6 percent to 3.29 million existing homes available for sale, which represents a 7.2-month supply at the current sales pace. That is an increase from a 6.5-month supply in November.

Raw unsold inventory is 11.1 percent below a year ago, is at the lowest level since March 2006, and is 28.2 percent below the record of 4.58 million in July 2008.

Distressed homes, which accounted for 32 percent of sales last month, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes in the same area.

For all of 2009, the median price was $173,500, down 12.4 percent from $198,100 in 2008. Distressed homes accounted for 36 percent of total sales last year.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 4.93 percent in December from 4.88 percent in November; the rate was 5.29 percent in December 2008.

Single-Family Home, Condo Sales Dip

Single-family home sales fell 16.8 percent to a seasonally adjusted annual rate of 4.79 million in December from a pace of 5.76 million in November. Sales are 12.7 percent above the 4.25 million level in December 2008. For all of 2009, single-family sales rose 5 percent to 4,566,000.

The median existing single-family home price was $177,500 in December, which is 1.4 percent above a year ago. For all last year, the median price for a single-family home was $173,200, down 11.9 percent from 2008.

Meanwhile, existing condominium and co-op sales fell 15.4 percent to a seasonally adjusted annual rate of 660,000 in December from 780,000 in November. Sales are 34.7 percent higher than the 490,000-unit pace a year ago. For all of 2009, condo sales rose 4.8 percent to 590,000 units.

The median existing condo price was $183,700 in December, up 1 percent from December 2008. For all of last year, the median condo price was $176,100, which is 16.1 percent below 2008.

Regional Breakdown

Here are existing-home sales figures by region:
  • Northeast: sales dropped 19.5 percent to an annual level of 910,000 in December but are 21.3 percent above a year ago. Median price: $241,700, up 3.2 percent from December 2008.
  • Midwest: sales fell 25.8 percent in December to a level of 1.15 million but are 8.5 percent higher than December 2008. Median price: $143,200, which is 1.8 percent above a year ago.
  • South: sales dropped 16.3 percent to an annual pace of 2.01 million in December but are 15.5 percent above December 2008. Median price: $152,000, down 1 percent from a year ago.
  • West: sales declined 4.8 percent to an annual rate of 1.38 million in December but are 15 percent higher than a year ago. Median price: $236,000, up 2.7 percent from December 2008.

— NAR





Monday, January 25, 2010

ALL The Real Estate News! All of it!


Real Estate News and Headlines
Week of January 25, 2010

Your Market:
National News, Trends and Analyses
Research Headlines from REALTOR.org
Your Business/Your Clients
Technology Corner





























Friday, January 22, 2010

Median Price of an Existing Home Rose 8.4 Percent

Quick Facts:
· Existing, single-family home sales increased 4 percent in December to a seasonally adjusted rate of
558,320 units on an annualized basis.

· The statewide median price of an existing single-family home increased 0.8 percent in December to
$306,820, compared with November 2009.

· C.A.R.’s Unsold Inventory Index fell to 3.8 months in December, compared with 5.6 months in
December 2008.

LOS ANGELES (Jan. 22) – Home sales increased 1.7 percent in December in California compared with the same period a year ago, while the median price of an existing home rose 8.4 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.

“As expected, the large year-to-year sales gains have diminished substantially compared with earlier in the year,” said C.A.R. President Steve Goddard. “However, home sales in December were strong, and were comparable to sales of late 2008. Activity in December can be attributed in part to the extension and expansion of the home buyer tax credit, as well as near-historic highs in affordability due to current price levels and low interest rates.

“For the second consecutive month, California’s median home price rose year-to-year in December, and had the largest year-to-year increase in more than three years,” said Goddard. “The state’s median price also remained above $300,000 for the second straight month.”

Closed escrow sales of existing, single-family detached homes in California totaled 558,320 in December 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 increased 1.7 percent from the revised 549,190 sales pace recorded in December 2008. Sales in December 2009 increased 4 percent compared with the previous month.

The statewide sales figure represents what the total number of homes sold during 2009 would be if sales maintained the December 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 December 2009 was $306,820, an 8.4 percent increase from the revised $283,060 median for December 2008, C.A.R. reported. The December 2009 median price rose 0.8 percent compared with November’s $304,520 median price.

“Home sales were unusually strong in December and were more consistent with peak season trends,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “Historically, the median price declines November through February and then rises in March. However, lean inventory, historically low interest rates, and incentives for home buyers have resulted in California’s housing market experiencing non-seasonal variations.



Full article is available upon request -

Email your First and Last Name, your email and phone number to: kenwebb@me.com




Daily Forecast Update: Weekly Mortgage Rate Survey

Daily Forecast Update: Weekly Mortgage Rate Survey

January 22, 2010

By Ken Fears, Manager, Regional Economics
Daily Forecast Update

* NAR's monthly official forecast as of January 5th
* GDP 2009 Q4: +4.2%
* GDP 2010 Q1: +2.7%
* GDP 2010 Q2: +2.4%
* Unemployment rate by the mid-2010: 10.1% ↑
* Average 30-year fixed mortgage rate by mid-2010 2009: 5.6%

What does today's data mean for REALTORS® and consumers?

* Good news: mortgage rates have moderated for 2 straight weeks after leaping in early January from record lows.
* Bad news: A string of less than stellar economic news appears to have stunted Wall Street's expectations for a rapid recovery. The reality of a long, slow slog back to a stable economy is more realistic.
* While tax incentives have helped generate a boost to demand, record low mortgage rates paved the way.
* Rates have been near record lows for more than a year, but buyer confidence has only recently been restored resulting in the upward trend in sales witnessed this fall. An early and sharp increase in rates could suspend the housing recovery and cause the economy to stumble. The sour economic news is reining in equities and causing rates to fall…a good sign for a sustainable economic recovery.

Freddie Mac Weekly Mortgage Rate Survey

* The average 30-year fixed rate fell 7 basis points to 4.99% with an average of 0.7 points for the week ending January 21st.
* Rates are 8 basis points higher than their average for the same week in 2009.



Did You Know?








January 13, 2010

By Sophia Stuart, Research Economist


Did You Know: Sources of Downpayment

* Fifty-four percent of buyers who made a downpayment relied on their savings, slightly less than the previous survey.
* Almost one in four of those who made a downpayment used proceeds from the sale of their primary residence; however, that is down from 34 percent in 2008 and 60 percent in 2007.
* A greater share of first-time buyers used their savings as a source of downpayment, while 42 percent of repeat buyers used proceeds from the sale of their primary residence.
* Single males more often used savings as a source of downpayment, while one in five unmarried couples used a gift from friends or relatives as a source of downpayment.

January 13, 2010



January 12, 2010

By Sophia Stuart, Research Economist

Did You Know: Mortgage Application Process

* Just over two-thirds of those who financed their homes said that the mortgage application process was no more difficult than expected.
* The share of those who said that the process was much more difficult increased from seven percent in last year's survey to 11 percent in the current survey.
* Repeat buyers generally had less difficulty than expected compared to first-time buyers. Single males and unmarried couples believe the process was slightly more difficult than they expected compared with married couples and single females.
* When seeking financing for their homes, 93 percent of recent buyers who successfully completed a purchase transaction were not rejected by any mortgage lenders, and 2 percent being rejected by two or more lenders.




January 11, 2010

By Sophia Stuart, Research Economist

Did You Know: Neighborhood Choice

* Many factors influence where a person chooses to purchase a home such as convenience to work, proximity to relatives or friends, and the quality of the school system.
* A majority of all home buyers (64 percent) across different locations listed quality of neighborhood as the most important factor influencing neighborhood choice.
* Convenience to work was the second most important factor with half of respondents citing its importance in choosing their neighborhood.
* Affordability of homes was also very important with 43 percent citing it as a factor in their neighborhood choice.





January 8, 2010

By T.J. Doyle, Research Marketing and Communications Manager

Did You Know: Most Important Factors When Choosing A Real Estate Agent

-> Home buyers rate honesty and trustworthiness among the most important factors when choosing a real estate agent. Nearly one-quarter said that the reputation of an agent was also an important factor. These two factors were considered most important by half of home buyers.

-> The honesty and integrity of a real estate agent was considered very important by the greatest number of buyers - 98 percent.

-> Knowledge of the purchase process, responsiveness, and knowledge of the real estate market were other qualities considered very important by more than 90 percent of home buyers. This pattern has been consistent over time as well.

-> The qualities and skills valued by buyers are nearly the same for first-time and repeat buyers and for buyers of
new and previously occupied homes and among different types of households. Honesty and integrity and knowledge of the purchase process top the list of skills and qualities considered very important by households of all types.

-> For a complete 2009 NAR Profile of Home Buyers and Sellers - available free only for REALTOR® members - For NAR members only.





Thursday, January 21, 2010

Harder to get an Uncle Sam mortgage





Harder to get an Uncle Sam mortgage

Rising defaults on loans insured by the Federal Housing Administration (FHA) have led the agency to impose future policy changes to its home loan program. The FHA provides mortgage insurance on loans made by FHA-approved lenders. Borrowers must meet certain requirements established by the FHA to qualify for the insurance, but lenders bear less risk because the FHA will pay the lender if a homeowner defaults on his or her loan.

MAKING SENSE OF THE STORY FOR CONSUMERS
The FHA is federally mandated to maintain reserve funds at 2 percent or greater. As of November, the agency reported that its fund had declined to .53 percent. The funding is used to cover losses on mortgages insured by the FHA that go into default.

Loans insured by the FHA generally are less expensive to borrowers because of the lower down payment requirements. However, these loans also have fees, such as up-front mortgage insurance. To help the agency raise its cash reserves, the FHA is increasing the up-front mortgage insurance premium from its current 1.75 percent to 2.25 percent. HUD released a Mortgagee Letter today making the premium increase effective in the spring.

The agency also is raising the minimum credit score requirements. Currently, borrowers with FICO scores as low as 500 have been approved for FHA-insured loans. Under the policy changes, new borrowers will be required to have a minimum FICO score of 580 to qualify for the FHA’s 3.5 percent down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10 percent. FHA expects this to take effect in early summer once it passes the normal regulatory process.

The new policy also will reduce the amount of money sellers can provide to home buyers at closing to 3 percent, down from its current 6 percent, of the home’s price. The change brings the agency in line with industry standards and removes the incentive to inflate appraisals. The FHA expects this to take effect in early summer after it passes the normal regulatory process.

Wednesday, January 20, 2010

New Housing Permits Soar!





Housing starts fall, but permits soar

Today at 9:17am

NEW YORK (CNNMoney.com) -- Home construction fell in December, government data showed Wednesday, while the number of building permits issued in the month rose.

Construction of new homes fell to an annual rate of 557,000 during the month, down 4% from the revised November rate of 580,000, the Commerce Department said.
Economists surveyed by Briefing.com expected December housing starts to decline to an annual rate of 572,000.

But starts were up 0.2% versus the 556,000 rate in December 2008. It was the first year-over-year increase since March 2006, when starts rose 5.6%.

The decline in new home construction was led by a 6.9% drop in single-family activity, which offset gains in the multi-family sector.

"While starts registered another weak month, they remain within a range that has held for more than a year," said Adam York, an economist at Wells Fargo.

Analysts said the drop in construction activity was due in part to the weather.

Temperatures were unusually high in November and "some homes that would have been started in December were instead started in November," Patrick Newport, an economist at IHS Global Insight, wrote in a research report.

Housing starts surged nearly 9% in November.
Picking the sweet spot in real estate

At the same time, many builders put new projects on hold late last year amid uncertainty surrounding the government's first time homebuyer tax credit.

As a result, applications for building permits plunged in September and October, which in turn depressed housing starts in December.

"Now that the credit will benefit almost all homebuyers, not just first-timers, and will run until June 3, [builders] are preparing for increased demand," said Ian Shepherdson, chief U.S. economist at High Frequency Economics.

Indeed, the number of building permits issued during December jumped 10.9% to a seasonally adjusted annual rate of 653,000.

It was the biggest increase since June 2008 and surprised economists who had forecast a 0.7% decline in building permits.

Given the surge in building permits during December, "starts should now be expected to rebound strongly over the next few months," Shepherdson said.

Still, many builders remain worried about the strength and sustainability of a recovery in housing with unemployment at 10% and a large number of foreclosed homes still on the market, York said.

On Tuesday, the National Association of Home Builders said its index of builder confidence declined one point to 15 in January.

cnnmoney.com By Ben Rooney, staff reporter

Ken Webb - Realtor
OCAR, NAR, CAR
F1RST TEAM
Real Estate
Email: kenwebb@firstteam.com
Phone/Text: (949) 243-6649
DRE Lic # 01844181

SEARCH JUST LIKE AN AGENT
http://www.kwrealestate.listingbook.com

CURRENT REAL ESTATE NEWS
http://kenwebbkwrealestate.blogspot.com

UP TO THE MINUTE UPDATES ON TWITTER
http://twitter.com/KW_Real_Estate

STATE WIDE AND LOCAL REAL ESTATE FACTS & FIGURES
http://kenwebb.housingtrendsenewsletter.com/


"The finest compliment I could ever receive is a 
referral from my friends and clients"

Trends and Demogrpaphics for our Nation






January 20, 2010

Arun Barman, Research Economist

Understanding population flows within a state or region can help REALTORS® better understand trends in the housing market. Changes in statewide population are a result of either natural growth (births minus deaths) or through migration (international and domestic). Despite the economic downturn that has plagued the housing market, population continues to rise through more births than deaths and migration from abroad. Overall, the rate of growth in the U.S. was 0.86. The Census Bureau computes population estimates as well as the rates of change of the different components of population change. This data allows for some interesting state-to-state comparisons. Also, it comes out in a more timely fashion than other Census data products which often lag the market by years (http://www.census.gov/popest/states/NST-EST2009-ratecmpchg.html).


Despite a deep recession, some states still had considerable population growth. Wyoming, Utah, and Texas were the biggest population gainers with growth of more than 2 percent between July 2008 and July 2009. Michigan and Maine each actually saw population loss over the same period. Colorado and D.C. also saw strong population growth. The D.C. market has been helped by stronger federal spending leading to a more stable job market than other parts of the country.


Looking back over the decade, Nevada, Arizona, and Utah all grew by more than 20 percent, while Michigan and Rhode Island grew by less than one percent. The growth of cities like Las Vegas and Phoenix has contributed to the population growth of their respective states. Louisiana's population numbers suffered in part as a result of Hurricane Katrina, and Michigan's growth was stunted by continued job losses in the automobile industry.

The following statistics deal with growth rates per 1,000 people which allow comparisons between states; and should not be confused with absolute numbers. Looking at the birth rate in a population for instance may show which states tend to have a higher rate of household formation.


A large part of the high population growth rate in 2008-2009 in Utah and Texas can be attributed to a high birth rate in those states. Idaho, Alaska, and Arizona also were among the top five states in terms of births per 1,000 people. Vermont, Maine, and New Hampshire ranked at the bottom of the list.


Migration rates are also interesting to look at in gauging home buyer demand. There are two types of migration that the Census Bureau's statistics track - international and domestic. Both types are important to consider when anticipating demand in the home buying market as people often look to purchase new homes when moving to a new area. Florida, California, New Jersey, Nevada, and Arizona lead in terms of international migration rates. In absolute numbers, California had by far the most international migrants followed by Texas and Florida.


In terms of domestic migration, Wyoming, D.C. and Colorado had the highest rates. In absolute numbers Texas had the largest number of domestic migrants followed by North Carolina. Michigan had the most negative rate of domestic migration, that is, the largest. In absolute numbers, California, New York and Michigan had largest number of people leave the state via domestic migrations.

International Migration per 1,000 people
California 4.5

Regionally, the West and South have the highest population growth. Higher birth rates in both help contribute, as well as positive domestic migration. The West and the Northeast have the strongest international migration rates. The Midwest suffers from a negative net migration.






Do Not Forget to stay current on all of your REAL ESTATE NEEDS

Ken Webb - Realtor
OCAR, NAR, CAR
F1RST TEAM
Real Estate
Email: kenwebb@firstteam.com
Phone/Text (949) 243-6649
DRE Lic # 01844181

SEARCH JUST LIKE AN AGENT
http://www.kwrealestate.listingbook.com

CURRENT REAL ESTATE NEWS
http://kenwebbkwrealestate.blogspot.com

UP TO THE MINUTE UPDATES ON TWITTER
http://twitter.com/KW_Real_Estate

STATE WIDE AND LOCAL REAL ESTATE FACTS and FIGURES
http://kenwebb.housingtrendsenewsletter.com/


"The finest compliment I could ever receive is a referral from my friends and clients"


Saturday, January 16, 2010

Federal Mortgage Modification Plan Disappointing




The Obama administration announced Friday that its much-lauded mortgage modification plan has had a disappointing start, helping far fewer Americans stay in their homes than originally hoped.

Intended to bolster struggling homeowners, the Home Affordable Modification Program (HAMP) has permanently helped only 66,000 homeowners out of 4 million that may be eligible.

As foreclosures are expected to rise from 2.8 million in 2009 to 3 million in 2010, analysts expect the Obama administration to modify the modification program to keep it from becoming another major political issue in a year when Democrats are facing a growing anti-spending sentiment among the voting public.

“HAMP is running into issues of too few permanent modifications, and re-default performance is expected to be poor," Barclays Capital said in a recent research note to clients.

Treasury Department officials said Friday that more than 900,000 homeowners have signed up for trial modifications and the program has yielded “measurable success.” The conversion rate from trial to permanent modification, however, is only about 15 percent.
So what's hampering HAMP?

One problem reported by the Treasury Department is that only 75 percent of homeowners are able to stay current on their new payments for a three month trial period. What’s more, the Obama administration and mortgage servicers say homeowners aren’t fully completing the needed documentation proving income and hardship.

But homeowners are blaming servicers, who get paid for successfully lowering monthly payments. One dissatisfied applicant used the Huffington Post to register his dissatisfaction – and shed some light on why the program may need to be fixed.

Calling the program a “cruel joke,” HAMP applicant Craig Vale said “you are falsely led to believe that some help may actually come your way, but in truth the banks want little to do with you or the HAMP program.”

Mr. Vale claims he’s saving less than $2 a day on his reworked mortgage, calling the entire thing a “failure.” The irony,” he adds, “is that my bank will tell uncle Sam they ‘successfully’ modified my mortgage.”
More than $1.5 billion saved

Treasury officials said that 854,000 homeowners taking part in both trial and permanent modification requests have saved more than $1.5 billion on their mortgage payments, receiving an average reduction of $516 a month.

US banks, insurance companies and carmakers, meanwhile, have received over $373 billion in taxpayer bailouts, writes the HuffPo's Shahien Nasiripour.

In his weekly Saturday address, President Obama vowed to keep up the pressure on US banks to do right by the American taxpayer, who, after all, bailed out much of the financial industry over the last 18 months.

Saying that, “We’re not going to let Wall Street take the money and run,” Obama vowed to make sure that banks can never put the US economy at risk again.

By Patrik Jonsson

That's Right - All In One Location - It's All In There!

Stop spending time all over the internet trying to find what you can already get in just one spot!

http://www.kwrealestate.listingbook.com

It's All In There!

Wednesday, January 13, 2010

Your Most Current Housing Trends eNewsletter- Jan 13, 2010



Happy New Year - Here Me GO, into the New Year, 2010!

Welcome to the most current Housing Trends eNewsletter. This eNewsletter is specially designed for you, with national and local housing information that you may find useful whether you’re in the market for a home, thinking about selling your home, or just interested in homeowner issues in general.

Please click on this link to view the JANUARY-2010 Newsletter Newsletter Housing Trends eNewsletter:
http://kenwebb.housingtrendsenewsletter.com?Newsletter_ID=239&Period_ID=181

The Housing Trends eNewsletter contains the latest information from the National Association of REALTORS®, the U.S. Census Bureau, Realtor.org reports and other sources.

It also includes press releases with charts and videos, key market indicators and real estate sales and price statistics, a video message by a nationally recognized economist, maps, mortgage rates and calculators, consumer articles, plus local neighborhood information and more.

If you are interested in determining the value of your home, click the “Home Evaluator” link for a free evaluation report:

http://kenwebb.housingtrendsenewsletter.com/dispContent.cfm?loadid=2&loadtype=0

Sound decisions can only be made with accurate and reliable information, and I am happy to be a trusted resource for you. Thank you for the opportunity to provide you with this monthly eNewsletter, and I look forward to answering any questions you may have and to the opportunity to be your REALTOR® in the future.


For those of us who want to search like an agent does and have access to "Real" MLS information and to be able to see exactly the homes and properties available for sale/lease your best place to go is: http://www.kwrealestate.listingbook.com

This website will continue to provide you the best search tool for all homes and properties available anywhere. There is no other website or service you can get that will provide you this level of service and information. This website allows you school information, neighborhood information, city statistics, loan calculator for any price of home, tax information on each property you look up, excellent search options to pin-point the exact type of home you want to buy.

This also allows you to sneak in and see exactly what is going on in your neighborhood and city. This alone is one of the best ways as a SELLER you can get accurate information on what has sold or is in the process of being sold that compares to your home.

I also have great news for those looking to buy or sell their home and who are in an equity position. First Team has implemented a new way to buy homes that is MUCH faster and offers the best service and best pricing for both buyers and sellers. This offers buyers an option to bypass weeks of negotiations and get to ownership in 1 day! This also offers sellers the best opportunity to get the best offer available without spending weeks going back and forth.

Sound interesting? You bet it does! Want to know more? Are you serious about a home purchase? Are you serious about selling your home? TODAY is the time to get serious about your future. Call or email me anytime at any of the links provided below.


Ken Webb - Realtor
OCAR, NAR, CAR
F1RST TEAM
Real Estate
Email: kenwebb@firstteam.com
Phone/Text: (949) 243-6649
DRE Lic # 01844181

SEARCH JUST LIKE AN AGENT
http://www.kwrealestate.listingbook.com

CURRENT REAL ESTATE NEWS
http://kenwebbkwrealestate.blogspot.com


UP TO THE MINUTE UPDATES ON TWITTER
http://twitter.com/KW_Real_Estate

STATE WIDE AND LOCAL REAL ESTATE FACTS & FIGURES
http://kenwebb.housingtrendsenewsletter.com/

"The finest compliment I could ever receive is a
referral from my friends and clients"