Real Estate Update | PV Brokers Residential Real Estate

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Existing-home sales eased in June as contract cancellations spiked unexpectedly, although prices were up slightly, according to the National Association of Realtors®. Sales gains in the Midwest and South were offset by declines in the Northeast and West. Single-family home sales were stable while the condo sector weakened. Total existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, declined 0.8 percent to a seasonally adjusted annual rate of 4.77 million in June from 4.81 million in May, and remain 8.8 percent below the 5.23 million unit level in June 2010, which was the scheduled closing deadline for the home buyer tax credit. Lawrence Yun, NAR chief economist, said this is an uneven recovery. “Home sales had been trending up without a tax stimulus, but a variety of issues are weighing on the market including an unusual spike in contract cancellations in the past month,” he said. “The underlying reason for elevated cancellations is unclear, but with problems including tight credit and low appraisals, 16 percent of NAR members report a sales contract was cancelled in June, up from 4 percent in May, which stands out in contrast with the pattern over the past year.” Yun cited other factors in the sales performance. “Pending home sales were down in April but up in May, so we may be seeing some of that mix in closed sales for June. However, economic uncertainty and the federal budget debacle may be causing hesitation among some consumers or lenders.”

The national median existing-home price2 for all housing types was $184,300 in June, up 0.8 percent from June 2010. Distressed homes3 – foreclosures and short sales generally sold at deep discounts – accounted for 30 percent of sales in June, compared with 31 percent in May and 32 percent in June 2010. According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 4.51 percent in June, down from 4.64 percent in May; the rate was 4.74 percent in June 2010. NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., said home sales should be higher. “With record high housing affordability conditions thus far in 2011, we’d normally expect to see stronger home sales,” he said. “Even with job creation below expectations, excessively tight loan standards are keeping many buyers from completing deals. Although proposals being considered in Washington could effectively put more restrictions on lending, some banking executives have hinted that credit may return to more normal, safe standards in the not-too-distant future, but the tardiness of this process is holding back the recovery.” Phipps added that lower mortgage loan limits, due to go into effect on October 1, already are having an impact. “Some lenders are placing lower loan limits on current contracts in anticipation they may not close before the end of September. As a result, some contracts may be getting cancelled because certain buyers are unwilling or unable to obtain a more costly jumbo mortgage,” he said.

  • 1 Year
  • 10 Years
  • Average Price
  • Price Per Square Foot

 

 

 

Total housing inventory at the end of June rose 3.3 percent to 3.77 million existing homes available for sale, which represents a 9.5-month supply4 at the current sales pace, up from a 9.1-month supply in May. All-cash transactions accounted for 29 percent of sales in June; they were 30 percent in May and 24 percent in June 2010; investors account for the bulk of cash purchases. First-time buyers purchased 31 percent of homes in June, down from 36 percent in May; they were 43 percent in June 2010 when the tax credit was in place. Investors accounted for 19 percent of purchase activity in June, unchanged from May; they were 13 percent in June 2010. The balance of sales was to repeat buyers, which were a 50 percent market share in June, up from 45 percent in May, which appears to be a normal seasonal gain. Single-family home sales were unchanged at a seasonally adjusted annual rate of 4.24 million in June, but are 7.4 percent below a 4.58 million pace in June 2010. The median existing single-family home price was $184,600 in June, up 0.6 percent from a year ago. Existing condominium and co-op sales fell 7.0 percent to a seasonally adjusted annual rate of 530,000 in June from 570,000 in May, and are 18.0 percent below the 646,000-unit level a year ago. The median existing condo price5 was $182,300 in June, up 1.8 percent from June 2010. Regionally, existing-home sales in the Northeast fell 5.2 percent to an annual pace of 730,000 in June and are 17.0 percent below June 2010. The median price in the Northeast was $261,000, up 3.1 percent from a year ago. Existing-home sales in the Midwest rose 1.0 percent in June to a pace of 1.04 million but are 14.0 percent below a year ago. The median price in the Midwest was $147,700, down 5.3 percent from June 2010. In the South, existing-home sales increased 0.5 percent to an annual level of 1.86 million in June but are 5.6 percent below June 2010. The median price in the South was $159,100, down 0.1 percent from a year ago. Existing-home sales in the West declined 1.7 percent to an annual pace of 1.14 million in June and are 2.6 percent below a year ago. The median price in the West was $240,400, up 9.5 percent from June 2010.

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To request information about Palos Verdes Real Estate , South Bay, and Torrance Real Estate visit my website at http://pvbrokers.net . PV Brokers Residential Real Estate provides specialized attention for all your real estate needs in the South Bay Los Angeles and the Palos Verdes Peninsula. Please contact us with any of your suggestions or comments.

Homeworth

Real Estate Update | PV Brokers Residential Real Estate

Leave a comment

 

Existing-home sales eased in June as contract cancellations spiked unexpectedly, although prices were up slightly, according to the National Association of Realtors®. Sales gains in the Midwest and South were offset by declines in the Northeast and West. Single-family home sales were stable while the condo sector weakened. Total existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, declined 0.8 percent to a seasonally adjusted annual rate of 4.77 million in June from 4.81 million in May, and remain 8.8 percent below the 5.23 million unit level in June 2010, which was the scheduled closing deadline for the home buyer tax credit. Lawrence Yun, NAR chief economist, said this is an uneven recovery. “Home sales had been trending up without a tax stimulus, but a variety of issues are weighing on the market including an unusual spike in contract cancellations in the past month,” he said. “The underlying reason for elevated cancellations is unclear, but with problems including tight credit and low appraisals, 16 percent of NAR members report a sales contract was cancelled in June, up from 4 percent in May, which stands out in contrast with the pattern over the past year.” Yun cited other factors in the sales performance. “Pending home sales were down in April but up in May, so we may be seeing some of that mix in closed sales for June. However, economic uncertainty and the federal budget debacle may be causing hesitation among some consumers or lenders.”

The national median existing-home price2 for all housing types was $184,300 in June, up 0.8 percent from June 2010. Distressed homes3 – foreclosures and short sales generally sold at deep discounts – accounted for 30 percent of sales in June, compared with 31 percent in May and 32 percent in June 2010. According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 4.51 percent in June, down from 4.64 percent in May; the rate was 4.74 percent in June 2010. NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., said home sales should be higher. “With record high housing affordability conditions thus far in 2011, we’d normally expect to see stronger home sales,” he said. “Even with job creation below expectations, excessively tight loan standards are keeping many buyers from completing deals. Although proposals being considered in Washington could effectively put more restrictions on lending, some banking executives have hinted that credit may return to more normal, safe standards in the not-too-distant future, but the tardiness of this process is holding back the recovery.” Phipps added that lower mortgage loan limits, due to go into effect on October 1, already are having an impact. “Some lenders are placing lower loan limits on current contracts in anticipation they may not close before the end of September. As a result, some contracts may be getting cancelled because certain buyers are unwilling or unable to obtain a more costly jumbo mortgage,” he said.

  • 1 Year
  • 10 Years
  • Average Price
  • Price Per Square Foot

 

 

 

Total housing inventory at the end of June rose 3.3 percent to 3.77 million existing homes available for sale, which represents a 9.5-month supply4 at the current sales pace, up from a 9.1-month supply in May. All-cash transactions accounted for 29 percent of sales in June; they were 30 percent in May and 24 percent in June 2010; investors account for the bulk of cash purchases. First-time buyers purchased 31 percent of homes in June, down from 36 percent in May; they were 43 percent in June 2010 when the tax credit was in place. Investors accounted for 19 percent of purchase activity in June, unchanged from May; they were 13 percent in June 2010. The balance of sales was to repeat buyers, which were a 50 percent market share in June, up from 45 percent in May, which appears to be a normal seasonal gain. Single-family home sales were unchanged at a seasonally adjusted annual rate of 4.24 million in June, but are 7.4 percent below a 4.58 million pace in June 2010. The median existing single-family home price was $184,600 in June, up 0.6 percent from a year ago. Existing condominium and co-op sales fell 7.0 percent to a seasonally adjusted annual rate of 530,000 in June from 570,000 in May, and are 18.0 percent below the 646,000-unit level a year ago. The median existing condo price5 was $182,300 in June, up 1.8 percent from June 2010. Regionally, existing-home sales in the Northeast fell 5.2 percent to an annual pace of 730,000 in June and are 17.0 percent below June 2010. The median price in the Northeast was $261,000, up 3.1 percent from a year ago. Existing-home sales in the Midwest rose 1.0 percent in June to a pace of 1.04 million but are 14.0 percent below a year ago. The median price in the Midwest was $147,700, down 5.3 percent from June 2010. In the South, existing-home sales increased 0.5 percent to an annual level of 1.86 million in June but are 5.6 percent below June 2010. The median price in the South was $159,100, down 0.1 percent from a year ago. Existing-home sales in the West declined 1.7 percent to an annual pace of 1.14 million in June and are 2.6 percent below a year ago. The median price in the West was $240,400, up 9.5 percent from June 2010.

Pvb_web_moving_to_pv

To request information about Palos Verdes Real Estate , South Bay, and Torrance Real Estate visit my website at http://pvbrokers.net . PV Brokers Residential Real Estate provides specialized attention for all your real estate needs in the South Bay Los Angeles and the Palos Verdes Peninsula. Please contact us with any of your suggestions or comments.

Homeworth

Selling Real Estate in Today’s Market – PV Brokers Residential Real Estate

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Things We Need To Know About Today’s Sellers: Financial Pressures

By Sara Sutachan, Senior Research Analyst

Sellers in 2010 succumbed to financial realities with many selling their home out of necessity. During the tail-end of the housing boom, long-time homeowners that refinanced their homes and new buyers who purchased near the top of the market were both in unsustainable positions when housing prices began to decline.  The average seller in 2010 owned their home for about four years. The subsequent housing and economic downturn led more and more of these homeowners into financial hardship. There were over 2.3 million people unemployed in the state of California as of November according to the Employment Development Department (www.edd.ca.gov) and nearly one in three homeowners with mortgages (31.6 percent) were underwater on their loans in the state according to data recently released from CoreLogic. A total of 1.3 million jobs have been lost in California since November of 2007. The same story played out for those who sold their home in 2010, as nearly one in three (29 percent) home sellers sold their home because they were underwater (C.A.R. Annual Housing Market Survey).

             Primary Reason for Selling in 2010
Seller Survey  Dec Graph 01
                  view ppt presentation in pdf fomat

Source: 2010 Survey of California Home Sellers

Instead of moving into larger homes or better locales, sellers most recently sold because they lost their job or because they had trouble making the payments on their home according to recent results from C.A.R.’s Survey of California Home Sellers. When asked about the ability to pay their mortgage, nearly three-quarters of sellers in 2010 sold because they had trouble paying their mortgage payment, which constituted the largest troubled group of home sellers in three years according to the C.A.R. survey. When factoring in market conditions, the results show yet more anguish for sellers as falling home prices and incomes not keeping up with expenses were the primary market factors driving the decision to sell in 2010. Nearly half of those surveyed fell out of homeownership altogether as 45 percent no longer owned their own home at the time of the survey. Fannie Mae’s 3rd Quarter National Housing Survey showed half of all delinquent borrowers were also more likely to rent their next home than they were to buy. 

                                Net Cash to Sellers
Seller Survey Dec Graph 02
                     view ppt presentation in pdf fomat

 
Source: 2010 Annual Housing Market Survey

In particular, there was no segment of sellers unscathed by the current economic climate, as trouble making the monthly mortgage payment was similar for both first-time and more experienced sellers. Overall, three in 10 sellers sold their home for a net cash loss, nearly two times higher than the long-run average of 10.5 percent (C.A.R. Annual Housing Market Survey). The amount sellers received was in fact the lowest on record, matching the record low level of the late 1990s.

        Median Price Differential by Type of Sale
Seller Survey Dec Graph 03
                     view ppt presentation in pdf fomat

Source: C.A.R.

A glimpse at homeowners who sold their home in 2010 shows how sellers across the state continue to face financial hardship. Distressed transactions are the unfortunate norm nowadays, and sellers whether in financial distress or not, are dealing with the reality of today’s selling environment. In addition, data from C.A.R. also shows how differently the various segments of the market behave—a seller who is selling short generally has a price point 10 percent below the overall median. However, once the bank repossesses the home, the price point drops to around 30 percent below the overall median (C.A.R.’s Real Estate 411 December 2010). It is also important to keep in mind, while distressed properties are typically less expensive and may be attractive to first-time buyers or investors, they also tend to take longer to sell, especially short sales. Additionally, sellers who are selling short tend to have an added stress factor—their emotional tie to the property that he or she may not be so happy to sell. 

What a great article !!  Amazing insight into the environment and conditions facing today’s home sellers.

Selling real estate in the present economic environment can be incredibly challenging. For more information about Palos Verdes Real Estate and South Bay or buying and selling a home in the Palos Verdes, visit my website at http://pvbrokers.net . We provide specialized attention for all your real estate needs in the South Bay Los Angeles and the Palos Verdes Peninsula. We would love to hear your comments or suggestions.

 

 

Logo_-_copy

   Where Integrity Meets Experience 

                 310.684.3156 

              www.pvbrokers.net

                     

Selling Real Estate in Today’s Market – PV Brokers Residential Real Estate

Leave a comment

Things We Need To Know About Today’s Sellers: Financial Pressures

By Sara Sutachan, Senior Research Analyst

Sellers in 2010 succumbed to financial realities with many selling their home out of necessity. During the tail-end of the housing boom, long-time homeowners that refinanced their homes and new buyers who purchased near the top of the market were both in unsustainable positions when housing prices began to decline.  The average seller in 2010 owned their home for about four years. The subsequent housing and economic downturn led more and more of these homeowners into financial hardship. There were over 2.3 million people unemployed in the state of California as of November according to the Employment Development Department (www.edd.ca.gov) and nearly one in three homeowners with mortgages (31.6 percent) were underwater on their loans in the state according to data recently released from CoreLogic. A total of 1.3 million jobs have been lost in California since November of 2007. The same story played out for those who sold their home in 2010, as nearly one in three (29 percent) home sellers sold their home because they were underwater (C.A.R. Annual Housing Market Survey).

             Primary Reason for Selling in 2010
Seller Survey  Dec Graph 01
                  view ppt presentation in pdf fomat

Source: 2010 Survey of California Home Sellers

Instead of moving into larger homes or better locales, sellers most recently sold because they lost their job or because they had trouble making the payments on their home according to recent results from C.A.R.’s Survey of California Home Sellers. When asked about the ability to pay their mortgage, nearly three-quarters of sellers in 2010 sold because they had trouble paying their mortgage payment, which constituted the largest troubled group of home sellers in three years according to the C.A.R. survey. When factoring in market conditions, the results show yet more anguish for sellers as falling home prices and incomes not keeping up with expenses were the primary market factors driving the decision to sell in 2010. Nearly half of those surveyed fell out of homeownership altogether as 45 percent no longer owned their own home at the time of the survey. Fannie Mae’s 3rd Quarter National Housing Survey showed half of all delinquent borrowers were also more likely to rent their next home than they were to buy. 

                                Net Cash to Sellers
Seller Survey Dec Graph 02
                     view ppt presentation in pdf fomat

 
Source: 2010 Annual Housing Market Survey

In particular, there was no segment of sellers unscathed by the current economic climate, as trouble making the monthly mortgage payment was similar for both first-time and more experienced sellers. Overall, three in 10 sellers sold their home for a net cash loss, nearly two times higher than the long-run average of 10.5 percent (C.A.R. Annual Housing Market Survey). The amount sellers received was in fact the lowest on record, matching the record low level of the late 1990s.

        Median Price Differential by Type of Sale
Seller Survey Dec Graph 03
                     view ppt presentation in pdf fomat

Source: C.A.R.

A glimpse at homeowners who sold their home in 2010 shows how sellers across the state continue to face financial hardship. Distressed transactions are the unfortunate norm nowadays, and sellers whether in financial distress or not, are dealing with the reality of today’s selling environment. In addition, data from C.A.R. also shows how differently the various segments of the market behave—a seller who is selling short generally has a price point 10 percent below the overall median. However, once the bank repossesses the home, the price point drops to around 30 percent below the overall median (C.A.R.’s Real Estate 411 December 2010). It is also important to keep in mind, while distressed properties are typically less expensive and may be attractive to first-time buyers or investors, they also tend to take longer to sell, especially short sales. Additionally, sellers who are selling short tend to have an added stress factor—their emotional tie to the property that he or she may not be so happy to sell. 

What a great article !!  Amazing insight into the environment and conditions facing today’s home sellers.

Selling real estate in the present economic environment can be incredibly challenging. For more information about Palos Verdes Real Estate and South Bay or buying and selling a home in the Palos Verdes, visit my website at http://pvbrokers.net . We provide specialized attention for all your real estate needs in the South Bay Los Angeles and the Palos Verdes Peninsula. We would love to hear your comments or suggestions.

 

 

Logo_-_copy

   Where Integrity Meets Experience 

                 310.684.3156 

              www.pvbrokers.net