California Real Estate

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Chris Blesch — Tue, 28 Oct 2008 15:07:09 +0000

Calif. median home price - August 08: $350,140

Calif. highest median home price by C.A.R. region August 08: Santa Barbara So. Coast $930,000

Calif. lowest median home price by C.A.R. region August 08: High Desert $169,200

Calif. First-time Buyer Affordability Index - Second Quarter 08: 48 percent

Mortgage rates - week ending 10/16/08 30-yr. fixed: 6.46% Fees/points: 0.6% 15-yr. fixed: 6.14% Fees/points: 0.6% 1-yr. adjustable: 5.16% Fees/points: 0.6%

(Source: CAR / Freddie Mac)

California Housing Production Decline Continues in September

Chris Blesch — Tue, 28 Oct 2008 15:03:03 +0000

Housing production continued to decline in September, when 4,364 permits were pulled throughout California, down 32 percent compared with the same month a year ago and down 6 percent from August, according to statistics compiled by the Construction Industry Research Board.

Single-family permits totaled 2,326, down 35 percent from September 2007 but up 4 percent from August. Multifamily permits totaled 2,038, down 29 percent when compared with September 2007 and down 14 percent from the previous month.

“We are not surprised, but disheartened by the building permit statistics for the first nine months of the year,” said CBIA Chief Economist Alan Nevin. “Compared to the first nine months of 2007, single-family permits have declined by more than 50 percent and can be anticipated to end the year with under 40,000 units, a modern low for the state.

“In total, for the year 2008, we project that permits will decline to a low of fewer than 70,000 and see little change in the velocity of ’for sale’ construction as foreclosure resales continue to create a situation where the cost of building a new home is far higher than the prices of the resale market.”

HOPE for Homeowners Program

Chris Blesch — Tue, 28 Oct 2008 15:01:29 +0000

The Federal Housing Administration (FHA) of the U.S. Dept. of Housing and Urban Development has posted a list of lenders participating in the HOPE for Homeowners program. Participating lenders have indicated an interest in refinancing loans under the HOPE for Homeowners program.When contacting the lenders, the FHA is strongly encouraging consumers to also contact their servicing lender and any subordinate lien holders as their participation is vital in order to refinance into a HOPE for Homeowners mortgage. The program is voluntary and servicing lenders may offer different solutions for avoiding foreclosure. The FHA plans to update the list weekly on Fridays.

USB Rechargable Batteries

Chris Blesch — Mon, 20 Oct 2008 17:11:11 +0000

Want an alternative to using disposable batteries, which leak toxic wastes into landfills and ground water? USB Cell produces rechargeable AA batteries that do not require adapters or cables, but instead can be inserted into your laptop’s USB port, or other USB port, and be recharged hundreds of times. Visit http://usbcell.com/ or http://www.terrapass.com/green-store/gadgets-chargers/ for more info.

New Home Sales Decline in August

Chris Blesch — Mon, 20 Oct 2008 17:08:50 +0000

The pace of new home sales across California in August declined 39 percent from August 2007, according to the latest CBIA/Hanley Wood Market Intelligence (HWMI) New Home Sales and Pricing Report released today, representing a significantly smaller decrease than the 57 percent year-over-year decline a month earlier, according to the report.

Sales of new single-family homes were down 41 percent in August, while sales of townhomes and “plexes,” (duplexes, triplexes, etc.) were down 17 percent, and sales of condominiums were down by nearly 43 percent, according to the report.

“The broad credit issues affecting lending institutions nationwide mean that all homebuilders and their potential customers face a number of challenges,” said Jonathan Dienhart, director of Published Research for HWMI. “Until credit markets begin to get back to a more normal level of activity, it will be difficult for the pace of home sales to begin to recover.”

Job Losses to Continue into 2009

Chris Blesch — Mon, 20 Oct 2008 17:07:02 +0000

Employment figures fell 0.8 percent in September to 108.4, a 10 percent decline from where they were one year ago, according to the latest Conference Board Employment Trends Index from The Conference Board, which is predicting the trend in job losses to continue well into the first quarter of 2009.

“The deterioration in the Employment Trends Index has become very pronounced, suggesting that the unemployment rate may very well exceed 7 percent as early as the second quarter of 2009,” said Gad Levanon, senior economist at The Conference Board. “The persistent slackening in labor market conditions, worsened by the financial crisis, has reached a level that in the past led to significantly slower wage growth across most industries,” Levanon said.

Prices to Level Out and Sales to Rise in 2009

Chris Blesch — Mon, 20 Oct 2008 17:05:50 +0000

Home prices throughout most areas of California will post declines next year, while sales of existing homes will continue to rise in 2009, according to C.A.R.’s 2009 California Housing Market Forecast.

“The current uncertainty about the financial system and economy is likely to persist over the next several weeks, and could extend into next year,” said C.A.R. President William E. Brown. “Our forecast assumes that the financial system will begin to show signs of stabilization late in 2008 and into early 2009.”

The median home price in California will decline 6 percent to $358,000 in 2009 compared with a projected median of $381,000 this year, according to the forecast. Sales for 2009 are projected to increase 12.5 percent to 445,000 units, compared with 395,600 units (projected) in 2008.

“Sales in 2008 will be ahead of last year by 12 percent, with a further increase of 12.5 percent expected in 2009,” said C.A.R. Chief Economist Leslie Appleton-Young. “However, the next couple of quarters in late 2008 and early 2009 will be marked by seasonal decreases in activity, with a pickup expected by the second quarter of next year.”

Fed Announces Plan to Purchase Equity Stake in Banks

Chris Blesch — Mon, 20 Oct 2008 17:03:33 +0000

The federal government on Tuesday announced the launch of a new program designed to assist with ongoing efforts to help stabilize the U.S. banking system and restore confidence in the country’s financial markets, as well as those abroad. So far, nine of the nation’s largest banks have agreed to participate in the program, which will allow the government to inject $250 billion into the country’s financial institutions in exchange for mandatory preferred stock shares for taxpayers and limited pay for company executives.The Fed’s plan will provide money to banks at a fairly low cost for five years to help unfreeze the nation’s credit markets, which have been faltering under bad debt tied to the mortgage lending sector. In announcing the plan, the Fed made it clear: this was not a preferred action, but a necessary one.

“Government owning a stake in any private U.S. company is objectionable to most Americans — me included,” said U.S. Treasury Secretary Henry Paulson announcing the plan Tuesday. “Yet the alternative of leaving businesses and consumers without access to financing is totally unacceptable. When financing isn’t available, consumers and businesses shrink their spending, which leads to businesses cutting jobs and even closing up shop.”

In exchange for funding, the federal government will receive preferred, nonvoting shares in participating banks, which now include, Citigroup, Wells Fargo and Bank of America, with fixed dividends of 5 percent for five years, increasing to 9 percent afterward. In addition, the plan also calls upon lenders to ramp up efforts to stave off foreclosures by working with borrowers to either refinance or restructure loans that will allow them to keep their homes, wherever possible.

“We expect all participating banks to continue and to strengthen their efforts to help struggling homeowners who can afford their homes avoid foreclosure,” Paulson said. “Foreclosures not only hurt the families who lose their homes, they hurt neighborhoods, communities and our economy as a whole.”

Builder Confidence Increases in September

Chris Blesch — Thu, 25 Sep 2008 15:59:52 +0000

Builder confidence climbed two points to 18 in September, the first increase in seven months, according to the National Association of Home Builders (NAHB). NAHB attributes the increase to recently enacted federal tax credits for homebuyers and lower mortgage rates in the wake of the takeover of Fannie Mae and Freddie Mac.

“Builders have several reasons to be more optimistic at this time,” said NAHB President Sandy Dunn. “Many are sensing that home sales are nearing a turning point with the support of the newly enacted first-time home buyer tax credit. Meanwhile, with the government’s explicit backing of Fannie Mae and Freddie Mac now assured, this should help keep mortgage rates at very favorable levels going forward.”

Recycling Dont’s

Chris Blesch — Thu, 25 Sep 2008 15:56:26 +0000

Here are five things that, according to earth911.org, will contaminate or thwart paper mills’ attempts to recycle paper and cardboard:

- Oil and water don’t mix. That large pizza box with the oil imprint will become recycled paper with an oil stain.
- Did your napkin or paper towel blot up a water spill or nail polish remover? It could have been the latter, and, for this reason, napkins and paper towels are not recyclable.
- Plastic linings added to paper products; a perfect example is paper cups.
- Wet newspapers.
- Pressure-sensitive adhesives, such as sticky notes, postage stamps, and address labels.