Simi Valley & Thousand Oaks Real Estate

Wells Fargo Exec Shacks Up in Bank-Owned Foreclosure

Fri, 11 Sep 2009 09:57:17 -0800

Wells Fargo Exec Shacks Up in Bank-Owned Foreclosure
Published: Friday, 11 Sep 2009 | 12:52 PM ET
By: Diana Olick
CNBC Real Estate Reporter

A story is circulating in the LA media today about a Wells Fargo executive, Cheronda Guyton, who allegedly moved into a foreclosed property being held by the bank and threw lavish parties there.
The previous owners of the Malibu, CA home, which is or was supposedly worth $12 million, lost the house after they lost all their money to Bernard Madoff.
According to reports, Guyton, who oversees foreclosed commercial properties, moved into the swanky home with her husband and two children and even had a large party there the last weekend in August.
What is this, Risky Business 2?
According to the LA Times, the bank said its ethics code would let Wells Fargo employees "make personal use of property that had been surrendered to satisfy debts."
The Realtor for the house told the Times that Wells Fargo wouldn't show the house to potential buyers either. The bank stated that it had some kind of agreement with the prior owner to keep it off the market for "a period of time."
Now I'm not sure what rights an owner has to tell any bank what to do with a home after said bank has already foreclosed on the property.
I am sure that whether or not the Wells Fargo executive was hanging out there legally or illegally, she is definitely acting unethically.
First of all, I doubt any VP who oversees commercial foreclosures makes enough money to afford to purchase a $12 million home, even at today's discount prices. (According to the Times a person at the home, who wouldn't come out, told the reporter through the intercom that the home was owned by Collin Equities, which just so happens to be a Wells Fargo company in charge of liquidating foreclosures.)

Existing Home Sales Rise at Fastest Pace in Two Years

Mon, 24 Aug 2009 12:02:16 -0800

Sales of previously owned U.S. homes jumped 7.2 percent in July to mark the fastest sales pace in nearly two years, an industry survey showed Friday, in a strong sign that housing is pulling out of a three-year slump.

AP
Home for sale - Coldwell

Sales in July rose for the fourth straight month to hit an annual rate of 5.24 million units, the highest rate since August 2007, the National Association of Realtors said, beating market expectations for a 5 million unit pace. Sales in June had been at a 4.89 million pace.
July's increase was the largest monthly gain since the series started in 1999. The last time sales rose for four consecutive months was in June 2004, the NAR said.
The Realtors group heralded the July sales as a turning point, while some observers offered a more cautious view.
"The housing market has decisively turned for the better. We are bouncing back," NAR chief economist Lawrence Yun told reporters.
"Overall, these figures may suggest that the recovery in housing activity is gathering pace, but there is a long way to go yet," said Paul Dales, U.S. economist at Capital Economics in Toronto.
U.S. Federal Reserve Chairman Ben Bernanke, speaking at a gathering of central bankers and top economists in Jackson Hole, Wyoming, said prospects for a resumption in global economic growth after a deep contraction looked good "in the near term."
Compared to July last year, sales rose 5.0 percent. The improvement in sales in July was broad based with single-family home sales rising 6.5 percent to an annual rate of 4.61 million units and multi-family dwellings surging 12.5 percent to a 630,000 unit rate.

Existing Home Sales Rise at Fastest Pace in Two Years

Fri, 21 Aug 2009 11:27:46 -0800

Published: Friday, 21 Aug 2009 | 11:39 AM ET

AP
Home for sale - Coldwell

Mid-Year Market Summary

Fri, 14 Aug 2009 09:28:27 -0800

July 2009

Mid-Year Market Summary

by Robert A. Kleinhenz, Ph.D., Deputy Chief Economist

The California housing market showed more signs of emerging from the worst of the market downturn in June as the median price rose for the fourth straight month and sales registered significant year-to-year and year-to-date gains.

At $274,740 in June, the median price rose to its highest level so far this year and stood 4.2 percent higher than the May revised median price of $263,600. The median remained well below levels of a year earlier, however, with a 26.4 percent decrease from the June 2008 median of $373,100. Year-to -year changes have been less severe in recent months and the June decrease was the smallest since February 2008.

June sales dipped 6.0 percent from revised May sales of 546,750 homes to a June sales figure of 514,110 homes, but showed a 20.1 percent increase over prior year sales of 427,910 homes. This was the smallest percentage gain in a year, and smaller gains are expected through the rest of the year. Still, sales in the first half of the year exceeded the same period a year ago by 50.6 percent and annual sales for all of 2009 are expected to be 25 percent ahead of last year’s pace.

Click on graph for larger image

With an unsold inventory index in June at 4.1 months, the supply of homes has decreased steadily since the start of the year when the index stood at 6.6 months. The index is now 3.5 months lower than a year earlier and well below the peak of 16.6 months in early 2008. In fact, low inventories may constrain sales and contribute to upward pressure on home prices through the rest of the busy season.

Latest Market Analysis Page 2 of 2

The mix of sales has changed dramatically since the beginning of the year. In January 2009, the price segment under $500,000 accounted for 85.0 percent of the total market, the segment between $500,000 and $1 million made up 12.4 percent of the total, and the segment above $1 million made up 2.7 percent of the total. By June, the segment under $500,000 fell to 76.5 percent, middle segment rose to 18.2 percent, and the upper segment doubled to 5.4 percent of the total market. A year earlier, the respective market shares were 67.1 percent, 23.8 percent, and 9.1 percent.

The market continues to cope with a large number of distressed sales in many parts of the state, especially inland areas where 2/3 or more of the market consists of distressed properties. Still, the market share of distressed properties has declined in many parts of the state from March to June of this year, contributing to the median price gains across the state.

To learn more about our Trends Newsletter, please contact the Research & Economics Department at research@car.org or call (213) 739-8352.

http://www.car.org/economics/latestmarketanalysis/?view

Pending Home Sales Surge; Fifth Straight Monthly Rise

Fri, 07 Aug 2009 09:48:22 -0800

Published: Tuesday, 4 Aug 2009 | 12:21 PM ET

By: CNBC.com with wires

Pending home sales rose for the fifth consecutive month in June, easily topping expectations, according to the National Association of Realtors.

The Pending Home Sales Index rose 3.6 percent to 94.6 from an upwardly revised reading of 91.3 in May, and is 6.7 percent higher than in June 2008. Reuters had expected an 0.6 percent increase.

The last time there were five consecutive monthly gains was July 2003.

The housing market's collapse is at the heart of the longest U.S. recession since the Great Depression and reviving the sector is critical to healing the economy. The data served as further evidence that the housing market was starting to claw out of a three-year slump.

"Historically low mortgage interest rates, affordable home prices and large selection are encouraging buyers who've been on the sidelines. Activity has been consistently much stronger for lower priced homes," said Lawrence Yun, NAR chief economist.

Pending home sales were higher in all four regions than last month, and only the west experienced a decrease from a year ago. The index in the Northeast rose 0.4 percent to 81.2 in June and was 5.8 percent above the same period last year. In the Midwest, the index climbed 0.8 percent to 89.9. It was 11.6 percent higher than June 2008.

The index in the South jumped 7.1 percent to 100.7 in June and was 8.9 percent higher versus a year ago. In the West, the index rose 2.9 percent to 100.4, but was 0.2 percent below June 2008.

"Hopefully, in the months ahead, we'll see an even closer relationship between contract activity and closed transactions," said NAR president Charles McMillan.

The organization's Housing Affordability Index fell from record peaks reached in recent months but remains 36.6 percentage points above one year ago.

—Reuters contributed to this report

Dos and Don’ts of Home Selling!!!

Fri, 31 Jul 2009 09:25:41 -0800

An energetic real estate agent can have your home on the market in a day. However, to provide the kind of marketing exposure you need to sell in today's market takes a little longer, unless your home is photo-ready when you list.

Ideally, you should start planning for your home sale months before you want your home to be on the market. First, find an agent to represent you. Then, create a game plan together for the premarketing phase of the process.

Use your agent as a resource. Walk through your home with your agent to get feedback on work, decluttering, and rearranging that needs to be done before the house is photographed for advertising and shown to prospective buyers. If your agent doesn't have a good eye for design, ask for a recommendation of a staging decorator.

HOUSE HUNTING TIP: Preferably, your home should not be submitted to the multiple listing service (MLS) or home-sale Internet sites without photos. Studies have shown that many buyers don't consider a listing that doesn't have photos.

Some sellers have presale inspections done to find out if repairs should be made before the property goes on the market. This wasn't as important several years ago when buyers were enthusiastic about the prospect of making money in the residential real estate market. Now buyers are much more cautious, and property condition is a critical variable.

One seller did a beautiful job fixing up her house for sale. She ordered a termite report and had some of the work done. But she didn't hire a home inspector to inspect the house. The interior was top-notch. In fact, more money was spent on this than was necessary. The listing agent was hired after the work had been done so the seller didn't benefit from the agent's advice about how much to spend and on what.

The house sold with multiple offers. However, the buyer's home inspection report revealed that the house needed a new foundation. Fortunately, there was a backup buyer. But, the price was negotiated down significantly. In hindsight, it would have been better to have fixed the foundation and done a less expensive redo of the interior.

A couple sold a similar home. They worked with their agent for months before the house was marketed. They did presale inspections and got estimates for painting, staging, furnace replacement, making necessary structural modifications and fixing miscellaneous defects referenced in the termite report.

Then, they prioritized, with input from their agent, and had the most critical repairs and enhancements done before the listing hit the MLS. There was no renegotiation necessary with the buyers after they completed their inspections.

Make sure buyers receive copies of proposals and paid invoices for work you did to your home so they know which items in your presale inspection reports have been repaired.

Another couple, who plan to move in a few years, decided to get their home ready to sell now. They put in a new master bathroom, refinished floors and plan to replace a dry-rotted deck. They will enjoy the improvements for the remaining years they stay in the house.

Most sellers wait until the last minute to get their house ready for sale. It can be very stressful trying to get all the work done in a short time frame. Doing work gradually over time is a saner approach. Sadly, most homes never look as good as they do when they're sold.

THE CLOSING: Now is a good time to have work done. A lot of contractors are looking for work. You might receive more competitive bids and be able to have the work done when you want.

Buy For The Long Term Today!

Fri, 24 Jul 2009 11:45:42 -0800

Now would seem like a rotten time to sell. The economy is in recession and many housing markets around the country have suffered serious downturns.

However, if you're a seller who will also be a buyer in a market where prices have declined, it could be a good time to both sell your current home and buy a new one. You sell for less than you would have in 2004, but you also pay less than you would have then.

To be successful selling in this market, your home needs to be in good condition. Most buyers are bidding on a home they can move into without having to do a lot of work. Also, your home must be priced for the market.

If you've been transferred and need to relocate, there are a couple of options. One is to sell your current home and buy in the new location. Some employers offer relocation assistance that covers many of the selling and moving expenses.

Another option is to rent your current home to a tenant and rent another one in the new location. There are benefits to renting in a new area before buying. It gives you an opportunity to learn about the neighborhoods before committing to a long-term investment.

Transferees who think they could return to their current location within a year or two might be better off renting their current home. However, renting your home can have its drawbacks. Tenants usually won't care for your home the way you would.

Set aside a fund for making improvements after the tenant leaves. Also, retain a gardener to care for the landscaping and make sure you have a property manager or handyman locally who can take care of problems when they arise.

HOUSE HUNTING TIP: Buyers are at an advantage in many marketplaces today. Generally, prices are lower than they were several years ago. And, interest rates are low.
Jumbo financing is pricier. Five-year fixed-rate jumbo mortgages cost less. At some point interest rates will go up, particularly if inflation takes hold following the recession. If you buy using short-term fixed-rate financing, look for a good time to refinance before interest rates go up.

It's not a good time to buy if you think you might be transferred or if your marriage is on the rocks. Buying a new house usually won't solve marital problems unless you're living in a house that's much too small to provide suitable living space.

The unknown factor that keeps many buyers on the sidelines is that prices could drop further before they stabilize or turnaround. So, the house or condo you buy today could be worth less in six months. But, it could be worth more in a few years. However, if you had to sell between now and then, you'd take a loss.

It's impossible to time the market. You'll either buy before or after the market bottoms out. Some people get lucky and buy at the bottom. But, you'll know that only through hindsight. If you buy after the market hits bottom, you'll be faced with more competition from other buyers and probably pay more.

Don't buy unless you know you won't have to move again soon. This includes making sure you buy a home that will accommodate your needs for years to come. Home buying always involves compromises. It's better to buy a home that's too big than one that's too small.

THE CLOSING: Buy for the long term.

Existing Home Sales Rise at Fastest Pace in Two Years

Fri, 17 Jul 2009 10:46:15 -0800

Published: Friday, 21 Aug 2009 | 11:39 AM ET

By: Reuters Copyright 2009 Reuters.
Sales of previously owned U.S. homes jumped 7.2 percent in July to mark the fastest sales pace in nearly two years, an industry survey showed Friday, in a strong sign that housing is pulling out of a three-year slump.

AP
Home for sale - Coldwell

Why Buy a Home in Today’s Market?

Fri, 10 Jul 2009 11:16:12 -0800

Buying a home in today’s market may be challenging, particularly for those with credit problems or little saved to put toward a down payment. But there are many factors impacting the current housing market that make buying a home today a viable option.

Here are five reasons for buying a home today:

1 Interest rates on long-term, fixed, and adjustable mortgages are at historically low

levels. The rate on a 30-year, fixed mortgage is hovering just below 6 percent, while,

by comparison, interest rates were hitting 8 percent and higher during the last market

downturn in the late 1990s, and were between 10 and 12 percent at the height of the last

housing boom in the 1980s. Lower interest rates make it easier to qualify for a loan, and your

monthly payments are more affordable.

2 No one can put a price on the intrinsic value of homeownership. Home prices also

reflect financial worth and, the good news is, across California the median sales price

for a single-family home has been consistently rising for several decades. In short,

housing remains a solid, long-term financial investment. While the pace of home appreciation

has slowed over the last year, historical data suggest home prices will continue to appreciate over

time. The projected median home price for a single-family home in California in 2008, for example,

is $553,000. By comparison, the median price in 2000 was $241,350; $193,770 in 1990,

and $99,550 in 1980. (source: C.A.R.)

3 The length of time a home remains on the market before it is sold has increased from

roughly two weeks in 2004 to between eight and nine weeks in 2007. According to the

unsold inventory index provided by the CALIFORNIA ASSOCIATION OF REALTORS®, it would

take 16.3 months to sell all the homes on the market at the current sales pace, compared with 6.4

months in 2006. With more homes on the market for longer periods of time, you have more choices

when it comes to selecting a home today.

4 The multiple-offer frenzy that dominated the latest housing boom has subsided, and there isless pressure on today’s home buyers to outbid one another. REALTORS® in California reported

that in 2007 only 28 percent of homes sold had multiple offers, compared with 57 percent

in 2004. (source: C.A.R.)

5 The credit industry crisis that has made securing a home loan difficult for many has led to

heightened scrutiny of mortgage lenders. As a result, state and federal agencies have created

protections for home buyers that were not in place a year ago. The U.S. Federal Reserve, for example,

has proposed a plan to require lenders to confirm a borrower’s ability to afford a mortgage before

making a loan and establishing guidelines for explaining subprime loan terms in order to better educate

buyers. Many new public education and awareness campaigns, such as Freddie Mac’s “Don’t Borrow

Trouble®” campaign, have been developed to help you achieve the dream of homeownership without the

financial risks that led so many borrowers into trouble in recent years.

The Current Sales Market

Thu, 02 Jul 2009 10:09:10 -0800

In the current home sale market, it might seem ludicrous to make an offer on a listing if it means competing with another buyer. However, multiple offers are on the rise in some markets. But, it doesn't always mean that you need to pay a lot more than the asking price.
Sellers are ever hopeful of receiving multiple offers. These days, this is usually an unrealistic expectation. That is, unless the listing is a prime property in a high-demand neighborhood where few homes are being offered for sale.

Price is a critical part of the equation. Some sellers price their homes low because they need a quick sale. If the price is below market, multiple buyers could step forward with offers. Sometimes an overpriced listing is reduced to market price or below and results in offers from more than one buyer.

Most multiple offers today are on low-end foreclosure properties. Investors make up a large part of the buyers in this segment of the market. In some areas of California and Florida, prices have fallen 40 percent since the market peaked in 2006.

HOUSE HUNTING TIP: Don't shy away from making an offer just because there is more than one offer. In some cases, a dozen or more buyers make offers on foreclosure properties that are listed at bargain prices. But, the highest bidder is not always the winner.

Even in non-distressed-sale situations, multiple offers in today's market don't always result in an overinflated sale price. For instance, a charming older home on a sought-after street in the Crocker Highlands neighborhood of Oakland, Calif., sold after only two weeks on the market with multiple offers. The property was listed for $1.3 million, and sold for $5,000 above that price.

There are far fewer financially qualified buyers in the home-buying market today than there were two years ago due to credit tightening, more rigorous financial qualification requirements and recent stock market losses. In some areas, as many as one-third of home sale transactions fail to close, often due to the inability of buyers to obtain the financing they need.

Sellers who receive more than one offer should carefully consider all aspects of the offers, not merely the offer price. An offer from an all-cash buyer who doesn't need a mortgage to finance the purchase, and who can close quickly, should be taken seriously even if the price is lower than the other offer(s). However, some all-cash buyers -- who are fully aware of their strong position in this market -- feel they are entitled to a major price discount.

Whether or not you'll have success countering for a higher price will depend a lot on the profile of the buyer. Buyers who intend to occupy the property for the long term are more likely to pay more than will investors who base their purchase decisions on the numbers, not their emotions.

THE CLOSING: Sellers should try to keep greed out of their decision when faced with multiple offers. Today's buyers are willing to walk away from a negotiation rather than pay over market value, or it they think the sellers are unreasonable.

Dian Hymer is a nationally syndicated real estate columnist and author.

California's median price for an existing single-family house

Fri, 26 Jun 2009 10:15:29 -0800

By STU WOO – Wall Street Journal

SAN FRANCISCO -- California's median price for an existing single-family house rose for the third straight month, a sign that the state's battered real-estate market may be bottoming out.

The median sales price increased to $267,570 in May for a California home, an increase of 4.2% from April, according to a report released Thursday by the California Association of Realtors. The inventory of unsold houses continued to drop, to 4.2 months' supply in May compared with 4.6 months in April and 8.7 months in May 2008. Prices were still well below their year-ago levels, down 30.4% compared with May 2008.

One explanation for the increase in housing prices is that fewer foreclosed properties are among those being sold, said Kirk Lesh, an economist for California Lutheran University's Center for Economic Research and Forecasting. Banks tend to sell foreclosed houses at lower prices than do people selling their own homes.

California's real-estate market, the nation's largest, is seen as a barometer of the U.S. economy. Housing prices soared during the boom, and their plummet during the market's collapse resulted in massive foreclosures and fueled the recession. Economists say the state's housing market will lag behind the nation's in recovering, so any indication of improvement in California bodes well for the rest of the U.S.

With Thursday's report, real-estate experts said they were a bit more optimistic that the California market is healing. But they warned that the state's 11.5% unemployment rate could result in more foreclosures and drive down real-estate prices again, as could lawmakers' plan to slash more than $10 billion from state spending to close a $24 billion deficit.

The budget proposals include laying off thousands of state workers and cutting health and welfare programs for millions of Californians, as well as raising taxes. If enacted, they would further batter the state economy and, consequently, the housing market, said Mr. Lesh, the economist.

The Realtors' report also said that 556,590 California houses were sold in May, up 35.2% from a year earlier. Sales may increase in coming months because prospective buyers believe the market is at a bottom, said Robert Bridges, a professor at the University of Southern California's Marshall School of Business. "The 'buy' decision would be a wise one right now because those pricing levels are getting attractive," he said.

Write to Stu Woo at Stu.Woo@wsj.com

Real Estate Facts

Wed, 17 Jun 2009 10:46:47 -0800

Quick Facts:
_· Existing, single-family home sales increased 49.2 percent in April to a seasonally adjusted rate of
540,360 on an annualized basis

_· The statewide median price of an existing single-family home increased 1.4 percent in April to
$256,700, compared with March 2009

_· C.A.R.’s Unsold Inventory Index fell to 4.6 months in April, compared with 9.8 months in April 2008
_· The median number of days it took to sell a single-family home declined to 48.7 days in April 2009,
compared with 51.8 days in April 2008

C.A.R. reports April home sales increased 49.2 percent, median home price declined 36.5 percent

LOS ANGELES (May 28) – Home sales increased 49.2 percent in April in California compared with the same period a year ago, while the median price of an existing home declined 36.5 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.

“With annualized sales at 540,360 units, April marked the eighth consecutive month of home sales above the 500,000 level,” said C.A.R. President James Liptak.

“Regional sales were impacted by the state’s two-tier market,” he said. “ Inventory levels for homes in the under $500,000 segment shrank to nearly three months in April, compared with almost 10 months a year ago, while unsold inventory in the more than $1 million segment rose to approximately 17 months, compared with roughly 10 months in April 2008.

“The dramatic difference in inventory exemplifies how the low end of the market is attracting more first-time buyers and investors, creating a shortage of distressed properties for sale,” he added.

Closed escrow sales of existing, single-family detached homes in California totaled 540,360 in April 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 49.2 percent from the revised 362,170 sales pace recorded in April 2008. Sales in April 2009 increased 3.2 percent compared with the previous month.

Bailout can help you buy a home

Thu, 28 May 2009 09:30:21 -0800

By Steve McLinden and Michelle Lerner • Bankrate.com

President Barack Obama's Economic Stimulus plan includes strategies to help homebuyers and stimulate the U.S. housing market.

The primary feature of the housing portion of the 2009 Obama Economic Stimulus plan features an $8,000 first-time homebuyer refundable tax credit for qualifying buyers who purchase a home between Jan. 1, 2009 and Dec. 1, 2009. The total tax credit a homebuyer can get in this initiative is equal to 10 percent of the purchase price, or a maximum of $8,000 -- to get the full $8,000 credit, the property must cost at least $80,000.

This is a refundable tax credit, which is far better than a tax deduction. If the total taxes you owe the IRS for the year -- whether withheld from your pay or not -- are less than $8,000, you will get a refund for the balance.

As an example, if you buy a house as a first-time buyer for say $85,000, you are entitled to an $8,000 tax credit. If your total tax owed for the year is $10,000 and you've already paid in $6,000 (still owe $4,000) you will not have to pay the $4,000 and you will get another $4,000 refunded to you.

"If you have been thinking about buying your first home, I can't think of a better time to do so," says mortgage expert Rodney Anderson, managing partner of Plano, Texas-based Rodney Anderson Lending Services.

Anderson says the program differs greatly from last year's $7,500 housing tax-credit program for first-time buyers, which was essentially an interest-free loan that required repayment over 15 years. That was not widely utilized, in part because it was a voluntary for banks. Because the new Stability Initiative rewards banks for participating, the new credit is becoming widely available, Anderson says.

Basics of the tax-credit plan
• Married couples making less than $150,000 in modified adjusted gross income -- with some sliding reductions beyond that income total -- are eligible. Both spouses must be first-time homeowners, however. For unmarried people making a joint purchase, only one party (the claimant) must be a first-time homeowner.
• Individuals making less than $75,000 in taxable income are eligible, with sliding reductions above that.
• Participants can't have owned a principal residence in the last three years. Individuals who have owned a rental or vacation home in that period may still qualify.
• Condos, townhomes, new-construction homes and mobile homes qualify.
• Participants can get the tax credit for the purchase on either their 2009 or 2008 taxes. Owners can move this savings into the 2008 tax year even if they've already filed for the year, by amending their returns (IRS form 5405). "That way, homeowners can use this early credit to help fund their home purchases," Anderson says.
• Participants must live in the house for three years.

While the tax-credit program is enticing, Anderson warns that mortgage qualifications based on income, assets and credit are stricter than the pre-bust years. In early April 2009, most banks needed to see a credit score of at least 620 to lend, he says.

First Quarter Housing Market Report – Southern CA Edition

Wed, 20 May 2009 11:00:43 -0800

Encouraged by record low levels in interest rates and continued decline in home prices, motivated home buyers helped the statewide sales improve for the fifth consecutive quarter since bottoming out in late 2007 Meanwhile, the median price for California continued to decline as deeply-discounted distressed sales remained at high levels in many parts of the state.

Sales of existing single-family homes surged to 590,390 in the first quarter of 2009, an increase of 9.7 percent from the fourth quarter of 2008, and a jump of 82.7 percent from the first quarter of last year. The sales level was the highest since the third quarter of 2005 when sales reached a near-record of 634,090. The growth in sales was largely attributed to the sharp decline in home prices across the state. The median home price for existing single-family detached homes dropped 40.1 percent from a year ago to $250,640 in the first quarter of 2009, reaching a level not seen since early 2001. The year-to-year price declines have been in the range of 40 percent for the past three quarters beginning in mid 2008 which has been due in large part to the glut of short sales and foreclosures flooding the real estate market over that same time period.

Sales activity in Southern California followed the sales trend of the state closely with non seasonally-adjusted first-quarter sales increasing 95.8 percent on a year-to-year basis from the first quarter of 2008. All regions in the area experienced an increase in sales of over 50 percent from a year ago, with the Riverside/San Bernardino region growing the most at 141.7 percent. The median price for Southern California decreased 39.0 percent year-to-year to $259,000 in the first quarter of 2009, and had been declining in the range of 40 percent for three consecutive quarters. Home prices fell in all regions with year-to-year declines ranging from a drop of 51.6 percent in the Palm Springs/Lower Desert Region to a drop of 28.3 percent in the Orange County.

Pending Home Sales Rise 3.2%, Signaling Market Near Bottom

Wed, 06 May 2009 11:21:14 -0800

By: CNBC.com and Reuters | 04 May 2009 | 10:53 AM ET
Pending sales of existing U.S. homes rose in March for a second straight month, a private survey showed on Monday, supporting views the housing market was close to hitting a bottom.

Meanwhile, US construction spending rose a slim 0.3 percent in March in the first increase since September, according to government data that beat analysts' forecasts of a 1.5 percent drop.

The National Association of Realtors Pending Home Sales Index, based on contracts signed in March, rose 3.2 percent to 84.6. February's pending home sales index was slightly revised down to 82.0 from 82.1.

Compared to the same period a year ago, pending home sales rose 1.1 percent.

Economists polled by Reuters had forecast pending home sales to be flat in March.
NAR chief economist Lawrence Yun attributed the rise in signed contracts for home purchases to first-time buyers taking advantage of favorable affordability conditions, including an $8,000 tax credit.
"We need several months of sustained growth to demonstrate a recovery in housing, which is necessary for the overall economy to turn around," said Yun.
The collapse of the U.S. housing market and the accompanying credit crisis dragged the economy into recession in December 2007, and analysts are watching home sales for signs of when the economic downturn might end.
The NAR's Housing Affordability Index edged down to 166.7 in March from a record 174.4 in February due to higher home prices in March.
The index was 30.8 percentage points higher than a year ago.

NAR’s Housing Affordability Index remained near record highs. The affordability index was 166.7 in March—down from an upwardly

revised record of 174.4 in February due to higher home prices in March.
The index remains 30.8 percentage points higher than a year ago. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income; tracking began in 1970.
The Pending Home Sales Index in the South rose 8.5 percent to 93.2 in March and is 7.7 percent above a year ago. In the West the index increased 3.9 percent to 93.1 and is 1.7 percent higher than March 2008. The index in the Northeast fell 5.7 percent to 59.5 in March and is 24.1 percent below a year ago. In the Midwest the index slipped 1.0 percent to 82.3 but is 8.2 percent higher than March 2008.
Affordability conditions for first-time buyers with the same income and small downpayments are roughly 80 percent of that amount. The affordable price was notably higher than the median existing single-family home price in March, which was $174,900.