Market Updates

A fourth national market report has added to the evidence that winter inventories are extraordinarily—even dangerously—low. Realtor.com has joined RE/MAX, NAR and Zillow in reporting levels significantly below last year.

The dramatic drop in listings tracked by REMAX echoed findings by NAR, Realtor.com and Zillow that supplies are tighter than they were last year and even two years ago when lack of supply sparked double digit prices increases and bubbles in several California markets

The realtor.com January National Housing Trend Report shows that inventory has decreased 6.7 percent month over month and 8.7 percent year over year.

Sales were also down dramatically from December. the number of home sales decreased 32.1 percent from a robust December and were nearly 5 percent below sales in January 2014, according to the National Association of Realtors. Typically, January closings are lower than those in December. Higher prices, coupled with weak supply, caused an unexpectedly large drop in January home sales.

Most markets are struggling to achieve the proper balance of homes for sale and qualified buyers, said realtor.com. Low inventory has become a national challenge as homeowners opt to stay put longer—a record 10 years—rather than move up and move on. Most housing markets are appreciating in value as homes sell faster. In fact, prices increased 8.8% in January over 2014, according to the report.

On a year-over-year basis, the Median Sales Price has now risen for 36 consecutive months. Price appreciation is the result of pressure from year-over-year inventory losses. Inventory has dropped by roughly 10 percent for the last three months. There is strong demand, but it is hitting a roadblock in supply. Potential buyers are saying they can’t find a home that meets their needs and/or budget.

We are not seeing enough growth in inventory to support recovering demand Prices will therefore continue to rise in a market when demand outstrips supply. Home prices are beginning to grow at a faster pace again, which is not good for the spring market. Sticker shock was behind weak sales in 2014, but as price gains began to ease, buyers came back. Now prices are heating up again due to severely weak supply.

2014 pending home sales posted higher on a year-over-year basis for the first time since January 2013 and as expected, declined from the previous month due primarily to a seasonal slowdown toward the end of the year.

• Nationally pending sales were up 2.6 percent from the 69.1 index recorded in December 2013.  The yearly increase was better than the six-month average of -4.3 percent from June 2014 to November 2014.
• California pending home sales dropped in December, with the Pending Home Sales Index (PHSI)* falling 21.9 percent from 90.7 in November to 70.9 in December, based on signed contracts.  The monthly decline was in line with the seasonal slowdown in pending sales observed at the end of the year for the last two years.
• Locally Manhattan Beach, Hermosa, Redondo Beach and El Segundo posted increases in available inventory for January 2015 based upon closed sales. All but Manhattan Beach showed an increase in sales over the same time last year.

Additional details on median price; properties for sale, sold (closed) pending; average price for sale as well as actual sold along with months of inventory available are just a click away below.

Please enjoy. Should your plans include real estate purchase and sales, please call or email with questions – and as always, thanks for your referrals!

Sources:

California Association of Realtors (C.A.R.) February 2015

Trendgraphix

Click HERE to view full version.

Although inventory remains low as we close out 2014 we are encouraged with the news released December 8th with Fannie Mae and Freddie Mac announcing that they are expanding access to credit for well-qualified first-time buyers struggling to enter the housing market. “Saving enough money for a down payment is the biggest hurdle for most first-time home buyers, but this program will help remove that barrier, and at the same time, lenders can be assured they are providing a safe, affordable loan to creditworthy borrowers.”*

Lenders as well as the California Association of Realtors applaud Fannie Mae and Freddie Mac in their move to lower down payments to as little as 3 percent for first-time home buyers and permit refinancing borrowers to reduce equity to 3 percent to cover closing costs.

Both programs are for fixed-rate loans given to first time homebuyers and those seeking to refinance. Fannie will start backing the loans as soon as December 13th 2014 while Freddie will start offering them March 23rd 2015.

Please enjoy. Should your plans include real estate purchase and sales, please call or email with questions – and as always, thanks for your referrals!

Sources:

*C.A.R. President Chris Kutzkey

* CNN Money

To see the entire article including graphs and stats click >HERE<

“The California Association of Realtors released their report on California existing home sales and median prices in September. The statewide median price rose over the 12 months ending in September by 7.6% to $460,940. Home prices in California have been moving higher on a year-over-year basis for over two years. However, the rate of increase has slowed in recent months, an indication that home prices are stabilizing.” (Read more)

Although the interest rate on a 30-year fixed-rate mortgage rose slightly in September (to 4.16% from 4.12% in August), it was below the year ago rate of 4.49%. “Less rapid price gains taken together with low mortgage interest rates should help improve housing affordability through the remaining months of this year.” (Read more) Rates haven’t been this low since 2013 according to Freddie Mac. With a 30-year fixed-rate averaging 3.92% and 5-year adjustable rate mortgages averaging 2.91%, now may be the time to buy.

Please enjoy. Should your plans include real estate purchase and sales, please call or email with questions – and as always, thanks for your referrals.

Sources: Kimberly Ritter / e-EDGE v.18 n.42 10/30/14

C.A.R. Expo Leslie Appleton-Young October 7, 2014

For the entire article, including charts & stats, click >HERE<

The down payment, interest rate, economic factors, qualification variables can be so confusing. Rising rates, loosening requirements, down payment options, buyer’s market, seller’s market. What does it all mean for you if you want to buy a home? The truth is that while the banks might have a magical formula to determine your mortgage worthiness, determining if the time is right really comes down to three main questions:

Do you want to buy a home?
Are you financially prepared?
Is your credit where it needs to be?

If your answer is yes, then you should take that leap of faith and go for it. Here are six reasons to do it now.

1. Prices are good. In most regional markets, home prices are still gaining, but have slowed. This is good news if you were afraid that big price gains would put homeownership out of reach and also bodes well for your long-term equity once you purchase. Attempting to buy a home when the market is at its lowest point—or to sell at the peak—is tricky. Like trying to time the stock market. ,you might get lucky one or two times, but overall, timing the market does not work. It is all about purchasing power, and that’s a reflection of price and interest rates, which will both be higher in the future.”

2. Rates are low. Mortgage interest rates are still low—for now. A 30-year-fixed-rate loan now averages 4.16%, according to Freddie Mac, but many economists believe we will see 5% rates next year. As interest rates increase, so do your monthly payments. Imagine the unthinkable. paying over 18% interest on a 30-year fixed mortgage. That was the reality for home buyers in October 1981. The average rate has been 5.18% since the start of this country’s history,” making today’s rates, which hover around historic lows at 4%, sound even better.

3. Loan requirements are softening. It is not quite the look-the-other-way-and-stamp-it-approved levels of 2008, but the overly tough restrictions that followed have loosened. Major lenders are making adjustments, and lowering the minimum FICO score for borrowers applying for loans. You can look to banks that have lowered loan-to-value standards in certain markets for both jumbos and conforming mortgages. For buyers that can mean an easier road to loan approval, even without a ton of money upfront and perfect credit.

4. Fewer buyers around the holidays means less competition. Sellers that are actively looking to sell their homes during the holiday months — namely, October through December — are serious about shedding their residences. This often works in favor of savvy buyers looking to get favorable terms on an aquisition. Having less competition on the buyer’s side can mean lower prices on homes, in addition to fewer counter-offers to compete against.

5. Pent-up demand could zap affordability. “The housing market is about to get even more competitive,” said Yahoo. “The pent-up demand of younger professionals, who moved back in with their  parents during the recession, is about to explode. This eager subset of buyers will create some steep competition for homes, especially if they have been saving up to make larger down payments or high ticket offers. If the current homes on the market have more potential buyers, bidding wars develop, and the purchase prices are driven up.

6. It’s time to move on with your life. The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise. But, what if they weren’t? Would you wait? Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe it is time to buy.

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

Hermosa Beach Real Estate Market. Our Market Minute update features the unique South Bay Beach Cities market compared to the national real estate market at large Market insight is the essential ingredient in all of the services we offer. We answer the question “How is the market?” By monitoring Manhattan Beach real estate market trends, and statistics we make projections to help you make critical decisions. This report demonstrates the comparison of rate of sales compared to current real estate inventory, which is known as the Market Action Index. The current market would still be defined as a sellers market. We present a deep dive into the current real estate market analysis for Manhattan beach, Hermosa Beach, Redondo Beach neighborhoods. This video update is for the 90266 zip code. Learn about the real estate market trends for median list price, asking price per square foot, average days on market. Get the market knowledge you need to make the best real estate decision. Find Manhattan Beach real estate market statistics including home values, listing prices, number of homes for sale and many other measurements. Please make sure to subscribe to our real estate market reports for Manhattan Beach homes for sale in 90266.

Encouraging news – The California Association of Realtors held their REALTOR ® EXPO in Anaheim the first week of October. Vice President and Chief Economist, Leslie Appleton-Young reported that with more available homes on the market for sale, California’s housing market will see fewer investors and a return to traditional home buyers as home sales rise modestly and prices flatten out in 2015.

Here in the Beach Cities we are seeing record numbers of homes priced over one million dollars (approximately 30% this year) being purchased with cash. Up from 3.2% 10 years ago at this time.*

Please enjoy. Should your plans include real estate purchase and sales, please call or email with questions – and as always, thanks for your referrals!

To view full sources click >HERE<

Sources:

C.A.R. “2015 California Housing Market Forecast” October 2014

Paul Penzella /LA News Group, Daily Breeze, October 12th

The California Association of Realtors released their report on California existing home sales and median prices in July. The statewide median price rose over the 12 months ending in July by 7.1% to $464,750. Although June marked the end of the 23 months of double-digit prices increases, the median single-family home price in California has now risen on a year-over-year basis for 29 months.

“Home prices continued to march higher across much of the U.S. in July. Most states are reaching price levels not seen since the boom year of 2006,” said Anand Nallathambi, president and CEO of CoreLogic. “Our data indicates that this trend will continue, with more states hitting new all-time peaks this year and into 2015 as the recovery continues.”

Please enjoy. Should your plans include real estate purchase and sales, please call or email with questions – and as always, thanks for your referrals!

Sources:

*LAEDC / Volume 18 N. 34

** HousingWire / Trey Garrison CoreLogic 9-2-14

For full source information, click >HERE<