January 19, 2009

Southern California Home Prices End Year 2008 down 35%

Author: admin - Categories: California Real Estate News, Housing Spotlight, Published Real Estate Articles, Real Estate News - Tags: , , ,

In a recent LA Times article written by Peter Y. Hong, Southern California home prices continued their decline at the end of 2008, closing the year at 2003 price levels, a real estate research firm reported today. The December median sales price for all Southern California homes fell to $278,000, a 35% drop from the same month a year prior, according to San Diego-based MDA DataQuick.

Recent foreclosure news suggests that short sales and re-defaults from unsuccessful loan modification plans, may be misleading the severity of the foreclosure crisis in Southern California.

Los Angeles County’s median sales price of $320,000 was down 32% from December 2007, while Orange County’s median price fell 30% to $397,000. San Diego’s median price dropped 30% from December 2007, to $300,000. Ventura County’s $338,000 median December sales price was down 36% from the prior year. Reduced sales prices drove the number of Southern California homes sold in December up by 51% over the previous year. “It does look like the spigot is being opened a little bit, at least for low-cost home purchases,” said John Walsh, MDA DataQuick president. The typical monthly mortgage loan payment that California homebuyers committed themselves to paying was $1,239 last month, down from a revised $1,380 for the previous month, and down from a revised $2,060 for December year ago. Read the complete LA Times article.

January 16, 2009

Falling Home Prices Hitting Hard

Author: admin - Categories: California Real Estate News, Housing Spotlight, Real Estate News - Tags: , , , , , ,

Foreclosures are closely tied to home prices – they tend to rise as prices fall. And nationally, home prices have fallen more than 21% from their peak, according to the S&P/Case-Shiller Home Price index. In many areas, the decline has been much worse. In Los Angeles, San Francisco and Miami prices are down 30% or more. They’ve fallen more than 40% in Phoenix and nearly that much in Las Vegas. Loan modifications are helping thousands of borrowers avoid foreclosure, but the home that are lost to foreclosure are sold at such a discount the effects in the housing markets are astounding.

Declining prices put many homeowners “underwater” on their mortgage loans, owing more than their homes are worth, which makes them more likely to default. And adding a flood of bank-owned homes to already slow markets further outstrips demand and dampens prices, creating a spiral of lower prices and higher foreclosures. As a result, more homeowners who fall behind on their mortgage payments end up losing their homes, according to Jay Brinkman, the chief economist for the Mortgage Bankers Association. Foreclosure news seems to arise daily as foreclosure rates rose 81% in 2008.

In California and Florida 80% of the homeowners who miss a loan payment end up in foreclosure, according to the MBA. That’s a much, higher percentage than in the past. “The number of mortgages 30 days past due are still below what they were during the 2001 recession,” said Brinkman. But the proportion of those loans that went into foreclosure was much lower, he added – about 10%. “Delinquency itself has become a much clearer predictor of foreclosure,” said Sharga. If home prices keep plunging, the foreclosure scourge will likely continue. And S&P’s chief economist, David Wyss, expects home prices to continue to decline, bottoming in early 2010 roughly 33% below their 2006 peak.

January 13, 2009

Predicting the Bottom of the Real Estate Market

Author: admin - Categories: California Real Estate News, Housing Spotlight, Jason Cardiff, Published Real Estate Articles, Real Estate News - Tags:

Suze Orman discuss on when do you know if the Real Estate has reached the bottom. When has the housing market reached the bottom? In most cases, when the prices begin to go back up, then you have reached the bottom.

Watch this video to learn more about the real estate market reaching the low point.

According to KMG president Jason Cardiff, “Timing the real estate market is very difficult.” Cardiff continued, “Like the stock market, predicting the bottom can be a great way to make money quickly, but even most experts are unable to call the bottom.” Sign up now and have the latest real-estate news delivered to you as it is reported.

December 22, 2008

Will Credit and Mortgage Markets Rebound in 2009?

Author: admin - Categories: California Real Estate News, Housing Spotlight, Real Estate News - Tags: , , , , ,

Real estate news continues to dominate main stream media because of the housing sales slumps, foreclosure crisis and historic mortgage rate cuts. The Existing Home Sales release will be released soon from the National Association of Realtors and the Department of Housing and Urban Development. The Commerce Department will also release a report with new home sales data.  These three reports should help the experts measure the strength of the housing sector and home loan credit demand, however, neither consider to be of high importance. Both of the reports are expected to show a decline in sales.

In a recent article, Kelly Media Group President, Jason Cardiff said, “2009 may see the housing sectors and mortgage refinance markets rebound after all.” Cardiff continued, “The Federal Reserve showed their commitment with record low rate cuts to fight deflation and many believe the President Elect, Barrack Obama will be aggressive in an effort to stem the foreclosure mess.” HUD continues to release new FHA loan products that offer solutions for mortgage refinancing with Hope for Homeowners and FHA Secure. FHA continues promoting rehabilitation and home remodeling to foreclosed home-buyers with the 203k rehab loans. FHA actually insures rehabilitation mortgages for owner-occupants and non-profit housing providers who finance the rehabilitation of an existing property or the purchase and rehabilitation of a property.

December 10, 2008

Foreclosures Increase Home Sales

Author: admin - Categories: California Real Estate News, Real Estate News - Tags: , , , ,

According to a report from Michael Corkery, the early indications of more housing market gloom October – a month in which one home builder executive declared that “home buyers had essentially gone on strike” — pending home sales were not as low as many real estate experts had anticipated. The National Association of Realtors’ measure pending sales were down 0.7%. in October from the previous month, compared with Wall Street’s estimate of a 3% decline.

The reason for the real estate evaluators to be so far off their predictions was likely to due to foreclosure news. Credit Suisse analyst Dan Oppenheim said his survey of real estate agents showed signs of dismal sales in October, but those real estate agents might have missed the foreclosures being sold by mortgage lenders and banks in bulk or through auctions in the distressed markets of Southern California, Las Vegas Nevada and most of Florida. California short sales continued to dominate the pending real estate sales.

The better than expected pending sales are a mixed blessing. The home foreclosure sales continue to drive down prices and are taking away business from home builders and homeowners trying to sell their homes. But it does suggest that the foreclosure overhang is being whittled away, especially in the South – primarily Florida – where pending home sales were up 7.8% in October.