The Real 411 on MEDIAN - Bonds- What Does It All Mean?

What's

Your

Market's

Median

Home

Price?

http://www.realtor.org/research/research/nar_research_maps_msa

Median: What Does it Mean?

http://www.realtor.org/research/research/median

Metropolitan Median Prices

http://www.realtor.org/research/research/metroprice

State and Local Market Information

http://www.realtor.org/research/research/metrohomepriceanalysisreports

BANKS, BONDS, & INTEREST RATES
WHAT MAY BE IN STORE FOR EVERYONE

So, what a interesting week, huh? New reports of Banks and stocks are up, then down , then up, then down. Sometimes many people wonder when will it end, if ever and what does it really mean for me and how does it affect Real Estate and does it affect mortgage interest rates?

Well, here is an example for you:

In the huge mess that was the stock market, many folks decided that the stock market was not their best bet for investments. This may or may not be true but many people took what money they had and choose other alternatives for investments.

One of the options many people choose to invest in was bonds. Bonds offered by banks that offered a low return but felt safe and secure.

Here is the deal. Once the banks sold all of those bonds they did earn some quick income but on the flip side for the banks they MUST earn more $ so that they can pay up on the bonds that they sold.

Banks must earn money so that they can pay bonds and operating costs and earn enough left over to again pump back into loans to earn more money.

That being said - think for a moment about how banks earn money. Banks earn money by the interest they charge on their loans, any loan.

This means that in order for the banks to cover the costs of these bonds (when these bonds come due) they must bring in more money from the interest rates they have in place from the loans and lines of credit that they sell.

This brings us full circle - BANKS MUST START CHARGING HIGHER INTEREST RATES. Period.

Here is the tough part. I do not know when, but it is very certain it is bound to happen. The opinion on this is that when they do start to go up they may not creep up but may in-fact shoot up.

This is not a scare tactic. This is just a FYI of what is going to be coming down the pipeline - sooner or later.

That is the bummer of what is bound to happen in our already crazy economy. This will of course make a home purchase out of reach for many people and for others - this will limit what they can afford.

So, now that you know - "So What" you may say. How does this affect you?

1) If you have been on the fence about a home purchase - it is time to get off the fence - NOW.
2) How do you start the process of getting a home and the financing that is involved?
3) Talk to me. Talking to me is Free, Simple, & Easy.

I know lenders who I trust. I know Realtors here in California and have a network or Realtors and Agents across the USA and beyond.

If you have been following my work you will notice that you get advance notice of HOT BUYS posted to Twitter - that are missed by many people.

You get access to search the MLS like a Real Estate Agent and can see the homes for sale in your neighborhood and community that may not have signage. You also get access to see your competition if you are looking to sell your home and get access to view ALL HOMES listed on the MLS. You may be surprised at the amount of homes that many agents will not show to clients. Also if we decide that we are a fit and you are Ready, Willing & Able, you will be given a unique hands on approach to finding the perfect house that fits you and your lifestyle as well as your budget.

One thing that I do - I will tell you how it is. Not every person who comes to me is ready, willing or able to start their Real Estate process. I choose to represent those who meet the absolute criteria of a Ready, Willing & Able Buyer, Seller, Investor.

With a limited and exclusive list of clients this allows me to spend 90% of my working time with my clients instead of 90% of my time trying to find new clients. This also means that I rely on my current subscribers, friends, clients, and business associates for referrals.

If you are ready to step up to a new level of service - Talk To Me. Let's see if we are ready to get moving and take advantage of record low interest rates and some of the lowest prices on homes we have had in decades.

IN CLOSING -
Here is this weeks info on Rates from someone who I know and Trust,
Heather Millspaugh

Curious? Want to know more? Talk To Me!

Ken Webb - Realtor/Agent 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"

Urgent News- C.A.R. Housing - Sales Report

Quick Facts:
· Existing, single-family home sales increased 9 percent in August to a seasonally adjusted rate of 526,970 on an annualized basis.
· The statewide median price of an existing single-family home increased 2.6 percent in August to
$292,960, compared with July 2009.
· C.A.R.’s Unsold Inventory Index fell to 4.3 months in August, compared with 7 months in August 2008.

LOS ANGELES (Sept. 25) – Home sales increased 9 percent in August in California compared with the same period a year ago, while the median price of an existing home declined 16.9 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.

“First-time buyers continue to be the driving force in home sales throughout the state,” said C.A.R. President James Liptak. “The federal tax credit, which has helped more than 1.4 million people become first-time homeowners nationally, is set to expire Nov. 30. The tax credit is a proven economic stimulus that clearly is working, and should be extended through 2010 and expanded to include all home buyers,” Liptak said.

Closed escrow sales of existing, single-family detached homes in California totaled 526,970 in August 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 9 percent from the revised 483,400 sales pace recorded in August 2008. Sales in August 2009 decreased 5.1 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 August 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 August 2009 was $292,960, a 16.9 percent decrease from the revised $352,730 median for August 2008, C.A.R. reported. The August 2009 median price rose 2.6 percent compared with July’s $285,480 median price.

“The statewide median price rose for the sixth consecutive month in August,” said C.A.R. Vice President and Chief Economist Leslie-Appleton-Young. “Recent price gains are consistent with the low inventory levels of the past few months. Levels of distressed properties remain high, but have declined compared with earlier in the year, and are one reason why inventory levels are running below the state’s long-run average of 7.2 months.

“Sales have exceeded 500,000 homes for 12 consecutive months, and now are 38 percent higher on a year-to-date basis compared with 2008,” said Appleton-Young. “Sales continue to be boosted by the large number of distressed properties on the market, along with favorable interest rates.”

Highlights of C.A.R.’s resale housing figures for August 2009:

. C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in August 2009 was 4.3 months, compared with 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 5.19 percent during August 2009, compared with 6.48 percent in August 2008, according to Freddie Mac. Adjustable-mortgage interest rates averaged 4.72 percent in August 2009, compared with 5.26 percent in August 2008.

. The median number of days it took to sell a single-family home was 35.2 days in August 2009, compared with 47.6 days (revised) for the same period a year ago.

Regional MLS sales and price information are 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, 27 of the 388 cities and communities reporting 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 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 for August may be exaggerated due to compositional changes in housing demand.



. Statewide, the 10 cities with the highest median home prices in California during August 2009 were: Saratoga, $1,337,000; Palos Verdes, $1,170,000; Newport Beach, $1,040,000; Los Gatos, $900,000; Cupertino, $870,000; Danville, $825,000; Santa Monica, $810,000; Rancho Palos Verdes, $765,000; Arcadia, $750,000; and Mountain View, $732,500.

. Statewide, the cities with the greatest median home price increases in August 2009 compared with the same period a year ago were: San Juan Capistrano, 28.8 percent; Laguna Hills, 17.6 percent; Placentia, 10.9 percent; San Rafael, 10.1 percent; Fullerton, 7.2 percent; Benicia, 5.6 percent; Arcadia, 5 percent; Alhambra, 3.5 percent; Costa Mesa, 3.1 percent; and Walnut 2.9 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 163,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

August 2009 Regional Sales and Price Activity*
Regional and Condo Sales Data Not Seasonally Adjusted

August-09	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
	Aug-09	Jul-09			Aug-08		Jul-09	Aug-08
Statewide
Calif. (sf)	$292,960	2.6%			-16.9%		-5.1%	9.0%
Calif. (condo)	$260,370	0.2%			-14.4%		-8.2%	9.0%
C.A.R. Region
High Desert	$111,770	1.0%			-33.9%		-13.2%	40.4%
Los Angeles	$339,980	0.2%			-13.9%		-10.6%	6.7%
Monterey Region	$298,940	5.4%			-19.3%		-8.7%	10.0%
Monterey County	$235,000	2.2%			-22.2%		-6.4%	12.6%
Santa Cruz County	$500,000	-6.5%			-14.1%		-13.4%	4.5%
Northern California	$255,600	-5.6%			-15.2%		-10.9%	-9.6%
Northern Wine Country	$347,920	-3.5%			-10.3%		-13.0%	-3.6%
Orange County	$499,440	-0.2%			-2.3%		-8.8%	5.9%
Palm Springs/Lower Desert	$169,080	3.7%			-23.8%		-19.8%	21.4%
Riverside/San Bernardino	$166,600	0.7%			-26.1%		-10.9%	-0.1%
Sacramento	$192,050	4.5%			-13.1%		-8.9%	-10.0%
San Diego	$375,710	0.8%			-3.3%		-13.4%	0.1%
San Francisco Bay	$531,580	-2.6%			-14.2%		-15.2%	7.6%
San Luis Obispo	$382,560	-3.0%			-7.8%		-9.0%	9.7%
Santa Barbara County	$376,090	0.0%			-10.0%		-15.4%	-5.7%
Santa Barbara South Coast	$828,750	-6.1%			-17.1%		-17.1%	-6.8%
North Santa Barbara County	$244,050	0.2%			-8.5%		-14.9%	-4.9%
Santa Clara	$555,000	-5.5%			-14.6%		-20.7%	9.9%
Ventura	$466,200	2.1%			-2.6%		-6.9%	6.1%

* Santa Barbara County and Monterey County median prices decreased significantly from August 2008 due mainly to the high proportion of total sales from lower-priced properties in the regions.

na - not available

* Based on closed escrow sales of single‑family, detached homes only (no condos). 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

	Aug-09	Jul-09		Aug-08
Statewide
Calif. (sf)	$292,960	$285,480		$352,730	r
Calif. (condo)	$260,370	$259,770		$304,220	r
C.A.R. Region
High Desert	$111,770	$110,650		$169,200
Los Angeles	$339,980	$339,430		$394,870
Monterey Region	$298,940	$283,650		$370,410
Monterey County	$235,000	$230,000		$302,000
Santa Cruz County	$500,000	$535,000		$582,000
Northern California	$255,600	$270,730		$301,450	r
Northern Wine Country	$347,920	$360,390		$387,740
Orange County	$499,440	$500,210		$511,270
Palm Springs/Lower Desert	$169,080	$163,080		$221,940
Riverside/San Bernardino	$166,600	$165,460		$225,390
Sacramento	$192,050	$183,840		$220,890
San Diego	$375,710	$372,640		$388,710	r
San Francisco Bay	$531,580	$545,810		$619,300
San Luis Obispo	$382,560	$394,440		$415,000
Santa Barbara County	$376,090	$376,090		$417,860	r
Santa Barbara South Coast	$828,750	$882,500	r	$1,000,000
North Santa Barbara County	$244,050	$243,480		$266,670
Santa Clara	$555,000	$587,000		$650,000
Ventura	$466,200	$456,440		$478,410

na - not available

r - revised

Source: CALIFORNIA ASSOCIATION OF REALTORS^®