Urgent Real Estate News for California - From C.A.R

CAR NEWS LINE - FEB 2010

Percentage of reduced listing prices declines 4 percent
The percentage of homeowners who reduced their listing prices declined approximately 4 percent in January compared December, according to a monthly survey conducted by ZipRealty, which examines home listings in 27 major markets.

Slightly more than 40 percent of home listings experienced at least one price reduction in January, compared with 44 percent in December, according to the report. On average, homeowners within all markets studied reduced list prices by $21,925.

The Los Angeles, San Diego, and San Francisco markets were among those with the lowest percentage of price-reduced homes, with Los Angeles and San Diego both coming in at 32.6 percent and San Francisco at 31.9 percent.



Entry-level housing affordability remains at 64 percent
The percentage of households that could afford to purchase an entry-level home in California remained at 64 percent in the fourth quarter of 2009, compared with 61 percent for the same period a year ago, according to a report released Friday by C.A.R. C.A.R.’s First-time Buyer Housing Affordability Index (FTB-HAI) measures the percentage of households that can afford to purchase an entry-level home in California.

The minimum household income needed to purchase an entry-level home at $257,940 in California in the fourth quarter of 2009 was $44,100, based on an adjustable interest rate of 4.5 percent and assuming a 10 percent down payment. First-time buyers typically purchase a home equal to 85 percent of the prevailing median price. The monthly payment including taxes and insurance was $1,470 for the fourth quarter of 2009.

At $44,100, the minimum qualifying income was 4 percent lower than a year earlier when households needed $45,900 to qualify for a loan on an entry-level home. Home prices remained below peak levels, resulting in an improvement in housing affordability compared with the previous year.




Foreclosures decrease 10 percent in January
Foreclosures decreased 10 percent in January compared with December, according to RealtyTrac®’s monthly foreclosure market report. Foreclosure filings were reported on 315,716 U.S. properties in January, a 10 percent decrease compared with December, but up 15 percent compared with January 2009. The report also found nearly one in every 409 U.S. housing units received a foreclosure filing in January.

Foreclosure activity in California decreased 10.77 percent in January compared with December, with one in every 187 housing units receiving a foreclosure filing, according to the report. Six California cities registered foreclosure rates among the top 10 in the nation: Modesto, one in every 107 housing units; Stockton, one in 107; Riverside-San Bernardino-Ontario, one in 109; Merced, one in 109; Vallejo-Fairfield, one in 112; and Bakersfield, one in 118.




Sales of existing homes increased 13.9 percent nationwide in Q4
Sales of existing homes, including single-family and condos, increased 13.9 percent to 6.03 million units in the fourth quarter, compared with 5.29 million units in the third quarter, according to a report by NAR. Sales also were 27.2 percent higher than the fourth quarter of 2008. Distressed properties accounted for 32 percent of fourth quarter transactions, a decline from 37 percent a year earlier.

The national median home price for existing, single-family homes was $172,900 in the fourth quarter, a 4.1 percent decrease compared with the fourth quarter of 2008. In the West, which includes California, existing-home sales increased 16.2 percent in the fourth quarter to an annual rate of 1.38 million units, 18.2 percent higher than a year ago, according to the report. The median home price of existing, single-family homes in the West was $227,200, a decline of 8.9 percent compared with the fourth quarter of 2008.

Fast Facts
Calif. median home price: December 09: $306,820 (Source: C.A.R.) Calif. highest median home price by C.A.R. region December 09: Santa Barbara So. Coast $847,500(Source: C.A.R.) Calif. lowest median home price by C.A.R. region December 09: High Desert $121,010 (Source: C.A.R.) Calif. First-time Buyer Affordability Index - Fourth Quarter 2009: 64 percent (Source: C.A.R.) Mortgage rates - week ending 2/11/10 30-yr. fixed: 4.97 Fees/points: 0.7% 15-yr. fixed: 4.34% Fees/points: 0.6% 1-yr. adjustable: 4.33% Fees/points: 0.6% (Source: Freddie Mac)

Ken Webb - Realtor/Agent
OCAR, NAR, CAR
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