Greater Bay Area Housing Market Report
More Articles
For economists, poor jobs and housing data indicate a slowing economic recovery. For homebuyers, the news means lower prices and better mortgage interest rates. As of June 2011, qualified homebuyers - those with excellent credit and with funds available for down payments – couldn’t be in a better position to buy a home.
Prices are at their lowest since 2002, according to the Q-1 2011 S&P/Case-Shiller Index. Since 2006, prices have fallen 33%, greater than the 31% decline recorded during the Great Depression. According to the National Association of REALTORS, the national median existing-home price for all housing types was $163,700 in April, 5.0 percent lower than in April 2010. Distressed homes, which sell at a discount of approximately 20%, were 37% of sales, up from 33% a year ago.
Believe it or not, there’s good news hidden in the numbers. Analysts at Capital Economics say housing has actually overcorrected, and is undervalued by approximately 24%. Paul Dales, U.S. analyst, reports that currently U.S. housing is undervalued by approximately 24%, the lowest amount in 35 years. For that reason, he predicts that the housing slide is nearing its end. Foreclosures, which have pressured both prices and real estate appraisals for non-distressed homes, are still high -- but are leveling off. RealtyTrac says that U.S. foreclosure filings were down 9% in April 2011 from March, and down 34% from a year ago.
It takes confidence to buy a home. On June 3, 2011, the government reported that the jobless rate rose from 9.0% to 9.1%, a reversal of three months of earlier gains, which is likely to continue to keep the distressed home pipeline full for months to come. The news has sent mortgage interest rates plummeting. After a seven-week slide, the Freddie Mac survey announced on June 3, 2011 that the benchmark 30-year fixed-rate mortgage averaged 4.55%, down from 4.60% the prior week and 4.79% a year ago.
California
Like the rest of the nation, California home sales also declined in April 2011 from the previous month, but were up 5% over a year ago. And, unlike the national trend, home prices actually increased. The statewide median price of an existing, single-family detached home sold in California rose 2.5 percent in April to $293,570, up from a revised $286,510 in March, says the California Association of REALTORS (C.A.R.).
The combination of an average 4.8% fixed-rate plus prices well below the peak of 2006, point to improved housing affordability. The percentage of buyers who could afford to buy the median-priced, single-family home rose to 53% in Q1-2011, up from 50% in Q4 2010, according to C.A.R.’s Traditional Housing Affordability Index (HAI). All eyes are on the White House proposal to eliminate Fannie Mae and Freddie Mac and to reduce the high-cost-area conforming loan limit from the temporary $729,750 to a permanent $625,500. It’s unknown whether or not the pending rule will temporarily boost housing sales in high-cost areas such as the Greater Bay Area, as buyers try to close their loans before the temporary ceiling is removed at the end of September 2011.
Local Sales Trends – May 2011
Locally, according to MLSListings May 2011 County Indicators Report, home sales and inventory figures mirrored elements of both the regional and national pictures, but this market appears to be charting its own course. While overall performance in Monterey, Santa Clara, San Mateo, San Benito and Santa Cruz counties fell compared to the same time last year, month-over-month changes are indicating some positive signs.
Closed sales in May dropped in four of the five counties from the same month last year. Santa Clara County had the largest drop at 21%, while San Mateo and Monterey each dropped by 15%. San Benito sales were down 8%, and San Mateo remained flat.
Compared to last month, sales increased 15% in San Mateo County, 4% in both Monterey and San Benito, dropped 3% in Santa Clara and remained flat in Santa Cruz.
Inventory increased or remained flat from the same month last year in all five counties except Monterey and Santa Cruz, where they were down 6% and 4% respectively. San Benito inventory was up 6%, San Mateo up 1%, while Santa Clara remained flat.
Compared to last month, inventory increased or remained flat in all counties. Inventory was up 8% in Santa Cruz, 4% in Monterey, 3% in San Mateo, and remained flat in both San Benito and Santa Clara.
New Listings compared to the same month last year dropped 15% in Monterey, 1% in Santa Clara, but increased 18% in San Benito, 2% in Santa Cruz, and just 1% in San Mateo.
Compared to last month, listings were up 18% in Santa Cruz, 8% in Monterey, 1% in both San Benito and Santa Clara, and decreased 4% in San Mateo.
Median Price dropped in four of the five counties compared to the same month last year. The largest drop occurred in Santa Cruz at 16%, San Benito was down 6%, Monterey down 5%, Santa Clara down 4%, and San Mateo showed the only increase at 10%.
Compared to last month, coupled with strong sales, San Mateo’s median price rose 14%, San Benito was up 6%, Santa Clara up 3%, while Monterey dropped 3% along with Santa Cruz which was down 2%.
Days on Market increased substantially from the same month last year in all counties except in Santa Cruz. DOM increased 84% in San Benito, 49% in San Mateo, 32% in Santa Clara, 13% in Monterey, and dropped 15% in Santa Cruz.
Compared to last month, days on market increased 35% in San Benito and 6% in San Mateo. DOM dropped 24% in Santa Cruz, 14% in Santa Clara, and 3% in Monterey.
Thursday, July 7, 2011
Wednesday, June 22, 2011
Mortgage rates flat after hitting yearly low
Mortgage rates flat after hitting yearly low
By Derek Kravitz
Fixed mortgage rates stayed roughly flat after falling for eight weeks.
The average rate on the 30-year loan ticked up from a yearly low of 4.49 percent to 4.50 percent, Freddie Mac said Thursday. The average rate on the 15-year fixed mortgage, a popular refinance option, fell to 3.67 percent from 3.68 percent. That's a low for the year.
Rates tend to track the yield on the 10-year Treasury note. The 10-year yield has been dropping as fears over that economic recovery is slowing.
Most people can't take advantage of the low mortgage rates because they can't meet tougher lending requirements. And many who could afford to refinance likely did so last year, when rates fell to their lowest levels in decades.
Sales of new and previously occupied homes rose in April. But sales are well below healthy levels as waves of foreclosures have pushed prices down. Many would-be buyers are holding off, worried that prices have yet to bottom out.
And prices are expected to keep falling until the glut of foreclosures for sale is reduced, companies start hiring in greater numbers, banks ease up on their tougher lending rules and more people think it makes sense to buy a house again. In some areas of the country, that could take years.
To calculate average mortgage rates, Freddie Mac collects rates from lenders across the country on Monday through Wednesday of each week. Rates often fluctuate significantly, even within a sigle day.
Let's set a time to talk today about how these mortgage rates can help you with your real estate dreams?
Call Monica @ 408 399 1495
By Derek Kravitz
Fixed mortgage rates stayed roughly flat after falling for eight weeks.
The average rate on the 30-year loan ticked up from a yearly low of 4.49 percent to 4.50 percent, Freddie Mac said Thursday. The average rate on the 15-year fixed mortgage, a popular refinance option, fell to 3.67 percent from 3.68 percent. That's a low for the year.
Rates tend to track the yield on the 10-year Treasury note. The 10-year yield has been dropping as fears over that economic recovery is slowing.
Most people can't take advantage of the low mortgage rates because they can't meet tougher lending requirements. And many who could afford to refinance likely did so last year, when rates fell to their lowest levels in decades.
Sales of new and previously occupied homes rose in April. But sales are well below healthy levels as waves of foreclosures have pushed prices down. Many would-be buyers are holding off, worried that prices have yet to bottom out.
And prices are expected to keep falling until the glut of foreclosures for sale is reduced, companies start hiring in greater numbers, banks ease up on their tougher lending rules and more people think it makes sense to buy a house again. In some areas of the country, that could take years.
To calculate average mortgage rates, Freddie Mac collects rates from lenders across the country on Monday through Wednesday of each week. Rates often fluctuate significantly, even within a sigle day.
Let's set a time to talk today about how these mortgage rates can help you with your real estate dreams?
Call Monica @ 408 399 1495
Wednesday, June 15, 2011
Monday, June 13, 2011
Friday, February 11, 2011
San Jose Summary
The median sales price for homes in San Jose CA for Nov 10 to Jan 11 was $393,713. This represents a decline of 2.2%, or $8,802, compared to the prior quarter and an increase of 0.8% compared to the prior year. Sales prices have depreciated 37.5% over the last 5 years in San Jose. The average listing price for San Jose homes for sale on Trulia was $481,225 for the week ending Feb 02, which represents an increase of 2.6%, or $12,391, compared to the prior week and an increase of 3%, or $14,009, compared to the week ending Jan 12. Average price per square foot for San Jose CA was $289, a decrease of 1.7% compared to the same period last year.
Popular neighborhoods in San Jose include Willow Glen, Evergreen, Edenvale, Alum Rock, Berryessa, and North San Jose.
The median sales price for homes in San Jose CA for Nov 10 to Jan 11 was $393,713. This represents a decline of 2.2%, or $8,802, compared to the prior quarter and an increase of 0.8% compared to the prior year. Sales prices have depreciated 37.5% over the last 5 years in San Jose. The average listing price for San Jose homes for sale on Trulia was $481,225 for the week ending Feb 02, which represents an increase of 2.6%, or $12,391, compared to the prior week and an increase of 3%, or $14,009, compared to the week ending Jan 12. Average price per square foot for San Jose CA was $289, a decrease of 1.7% compared to the same period last year.
Popular neighborhoods in San Jose include Willow Glen, Evergreen, Edenvale, Alum Rock, Berryessa, and North San Jose.
Friday, January 21, 2011
Silicon Valley home sales slump continues in December
Silicon Valley's home sales slump continued in December, with both the number of transactions and median prices in Santa Clara County down from a year earlier.
The number of single-family houses that changed hands was down 9.9 percent last month from December 2009, San Diego-based MDA DataQuick reported today. The median price dropped 1.7 percent to $517,000.
The volume of condo sales fell 7.1 percent, and the median price was down 11.6 percent to $294,250.
The market in Silicon Valley reflected trends throughout the Bay Area, where real estate transactions were "dominated by distress sales," with move-up buying put on hold, DataQuick reported.
"While the dicey economy and employment concerns are major factors, tight mortgage credit is also a big issue right now, especially for the upper half of the market," DataQuick President John Walsh said in a news release.
"There's a lot of pent-up supply and demand out there, which will start to meet when the lenders reopen their spigots a turn or two," Walsh said.
Real Estate
California median home prices dip in DecemberHome sales hit 13-year low; slow recovery aheadMortgage rates: Average on 30-year fixed loans rises to 4.74 percentU.S. home sales: 2010 was weakest year since 19972010 was 2nd-worst year for home construction in half-centuryHome sales: Southern California median price flat in DecemberRent increases on the way, analysts sayMortgage rates: Average on 30-year fixed home loan dips to 4.71%
Call me today and let's talk about how this effects you and your real estate needs today.
Call 408 399 1495
The number of single-family houses that changed hands was down 9.9 percent last month from December 2009, San Diego-based MDA DataQuick reported today. The median price dropped 1.7 percent to $517,000.
The volume of condo sales fell 7.1 percent, and the median price was down 11.6 percent to $294,250.
The market in Silicon Valley reflected trends throughout the Bay Area, where real estate transactions were "dominated by distress sales," with move-up buying put on hold, DataQuick reported.
"While the dicey economy and employment concerns are major factors, tight mortgage credit is also a big issue right now, especially for the upper half of the market," DataQuick President John Walsh said in a news release.
"There's a lot of pent-up supply and demand out there, which will start to meet when the lenders reopen their spigots a turn or two," Walsh said.
Real Estate
California median home prices dip in DecemberHome sales hit 13-year low; slow recovery aheadMortgage rates: Average on 30-year fixed loans rises to 4.74 percentU.S. home sales: 2010 was weakest year since 19972010 was 2nd-worst year for home construction in half-centuryHome sales: Southern California median price flat in DecemberRent increases on the way, analysts sayMortgage rates: Average on 30-year fixed home loan dips to 4.71%
Call me today and let's talk about how this effects you and your real estate needs today.
Call 408 399 1495
Wednesday, December 22, 2010
Subscribe to:
Posts (Atom)
