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Existing Home Sales Down, but prices rise!

by Ashlie DuCros

January 25,2010

Existing-Home Sales Down, but Prices Rise

Existing-home sales fell as expected in December after first-time buyers rushed to complete deals during the months leading up to the original November deadline for the tax credit. However, prices rose from December 2008 and annual sales improved in 2009, according to the National Association of REALTORS®.

Existing-home sales—including single-family, town homes, condominiums and co-ops—fell 16.7 percent to a seasonally adjusted annual rate of 5.45 million units in December from 6.54 million in November, but remain 15 percent above the 4.74 million-unit level in December 2008.

There were approximately 5,156,000 existing-home sales in 2009, which was 4.9 percent higher than the 4,913,000 transactions recorded in 2008. It was the first annual sales gain since 2005.

Tax Credit Creates Swing in Market

Lawrence Yun, NAR chief economist, says there were no surprises in the data.

“It’s significant that home sales remain above year-ago levels, but the market is going through a period of swings driven by the tax credit,” he said. “We’ll likely have another surge in the spring as home buyers take advantage of the extended and expanded tax credit. By early summer the overall market should benefit from more balanced inventory, and sales are on track to rise again in 2010."

However, Yun says, the job market remains a concern and could dampen the housing recovery. "Job creation is key to a continued recovery in the second half of the year,” he says.

An NAR practitioner survey shows first-time buyers purchased 43 percent of homes in December, down from 51 percent in November. Repeat buyers rose to 42 percent of transactions in December from 37 percent in November; the remaining sales were to investors.

The national median existing-home price for all housing types was $178,300 in December, which is 1.5 percent higher than December 2008.

“The median price rose because of an increased number of mid- to upper-priced homes in the sales mix,” Yun says. It was the first year-over-year gain in median price since August 2007.

Falling Inventories

NAR President Vicki Cox Golder said market conditions are challenging in some areas.

“There’s a shortage of lower-priced homes for sale in much of the country, resulting in multiple bids in some areas,” she says. “Raw unsold inventory has been trending down. As the market heats up again this spring, buyers may need to be prepared to move quickly on a particular home."

Total housing inventory at the end of December fell 6.6 percent to 3.29 million existing homes available for sale, which represents a 7.2-month supply at the current sales pace. That is an increase from a 6.5-month supply in November.

Raw unsold inventory is 11.1 percent below a year ago, is at the lowest level since March 2006, and is 28.2 percent below the record of 4.58 million in July 2008.

Distressed homes, which accounted for 32 percent of sales last month, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes in the same area.

For all of 2009, the median price was $173,500, down 12.4 percent from $198,100 in 2008. Distressed homes accounted for 36 percent of total sales last year.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 4.93 percent in December from 4.88 percent in November; the rate was 5.29 percent in December 2008.

Single-Family Home, Condo Sales Dip

Single-family home sales fell 16.8 percent to a seasonally adjusted annual rate of 4.79 million in December from a pace of 5.76 million in November. Sales are 12.7 percent above the 4.25 million level in December 2008. For all of 2009, single-family sales rose 5 percent to 4,566,000.

The median existing single-family home price was $177,500 in December, which is 1.4 percent above a year ago. For all last year, the median price for a single-family home was $173,200, down 11.9 percent from 2008.

Meanwhile, existing condominium and co-op sales fell 15.4 percent to a seasonally adjusted annual rate of 660,000 in December from 780,000 in November. Sales are 34.7 percent higher than the 490,000-unit pace a year ago. For all of 2009, condo sales rose 4.8 percent to 590,000 units.

The median existing condo price was $183,700 in December, up 1 percent from December 2008. For all of last year, the median condo price was $176,100, which is 16.1 percent below 2008.

Regional Breakdown

Here are existing-home sales figures by region:

  • Northeast: sales dropped 19.5 percent to an annual level of 910,000 in December but are 21.3 percent above a year ago. Median price: $241,700, up 3.2 percent from December 2008.
  • Midwest: sales fell 25.8 percent in December to a level of 1.15 million but are 8.5 percent higher than December 2008. Median price: $143,200, which is 1.8 percent above a year ago.
  • South: sales dropped 16.3 percent to an annual pace of 2.01 million in December but are 15.5 percent above December 2008. Median price: $152,000, down 1 percent from a year ago.
  • West: sales declined 4.8 percent to an annual rate of 1.38 million in December but are 15 percent higher than a year ago. Median price: $236,000, up 2.7 percent from December 2008.

— NAR

For more information on this article, please contact us at Ashlieducros@mailpcr.com, or let us know what you think on www.AshlieDuCros.com

What’s ahead for home prices?

by Ashlie DuCros

Check out this interesting article I just found…Looks like rates and prices are going up?

           What’s ahead for home prices?

Sales are ticking up, but don’t expect prices to follow until the middle of the year.

California remains ahead of the nation in market recovery with many first-time home buyers entering the market due to affordable home prices, low mortgage rates, and first-time home buyer tax credits from the state and federal governments.  However, credit still is tight and unemployment remains high, which could hinder a full market recovery until 2011.

              MAKING SENSE OF THE STORY FOR CONSUMERS
Home sales in California hit bottom more than two years, and the median home price of an existing, single-family home reached its trough in February, according to data collected by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).  In November, the state’s median home price rose in year-to-year comparisons for the first time since August 2007.

C.A.R.’s closely watched "2010 California Housing Market Forecast,” projects that the median home price in California will rise 3.3 percent to $280,000 in 2010 compared with a projected median of $271,000 in 2009. 

Some economists are forecasting another surge of foreclosures in 2010.  However, C.A.R.’s economists expect that foreclosures will remain flat this year compared with 2009.  In 2008, many lenders flooded the market with foreclosures, and as a result, the state’s median price declined by historic levels.  By comparison, in 2009, lenders listed properties for sale at a more measured pace, which helped moderate another home price decline.
Government efforts to maintain a low interest rate environment have stabilized the market.  However, a mortgage analyst at a financial publishing company predicts that rates likely will rise to 5.5 percent by mid-2010 and close the year at 5.75 percent to 6 percent.

By Pat Mertz Esswein of Kiplinger's

If you have questions regarding the real estate market, please contact me at 714-743-9778, or ashlieducros@mailpcr.com "your source of Orange County Real Estate."

Olinda Ranch: Brea Homes Short sales vs. Retail?

by Ashlie DuCros

Brea Homes for sale: Short Sales vs. Retail  Sales in Olinda Ranch? Which ones dominated the market?

In looking at Olinda Ranch community in Brea today,  you will find total of 6 homes Active in today's market.  They are combined types of sales with 2 short sales and 4 Retail sales. For the month of December, there were total of 10 homes went into escrow which 5 were short sales, and 5 retails.  The closed ration seems to be almost 50%. There were total of 5 closings in this month.  Two of the homes were short sales which is good news for people looking to short sale their homes. It seems like banks are being more cooperative in getting these deals approved.  There were also total of 3 Retail sales.  So depending on your time frame to buy, both short sales and retail sales exist in this community.  If your a homeowner, right now will be good time with low inventory in your neighborhood.  It seems that both short sales and retail sales are in demand.

 To find out what your home is worth, click on "Whats my property worth?" on www.AshlieDuCros.com   For more information of this community, please contact us.  The link below will show you the list of homes.

       Line Item Report  (Market Report December 2009)

 

Ashlie DuCros

714-743-9778

ashlie.ducros@mailpcr.com

www.AshlieDucros.com

 

 

Yorba Linda homes:Kerrigan Ranch, Manor and San Antonio neighborhoods

by Ashlie DuCros

December 2009:Market report for Kerrigan Ranch, Manor homes, and San Antonio homes in Yorba Linda

Is it good time to sell in your neighborhood?

As of January 2010, the active homes on the market have decreased quite a bit since last year.  There are only total of 4 homes on the market right now, 5 are in escrow, and one home closed in the month of December. There were mixture of both short sales and retail sales in this neighborhood.  I do see that buyers are starting make purchases for both retail and short sale priced homes indicating a demand for this neighborhood. Please click on the link to see the market snap shot.  To find out what your home is worth, simply login to www.YorbaLindahomevalue.com, or click on search local listings to find your dream home! 

       Line Item Report  (Click here for report)

Short Sale Listing in Yorba Linda!

by Ashlie DuCros

 

** Are you behind mortgage payments? Do you want to avoid foreclosure? For your options, simply login to www.ADshortsales.com****

 

It's 2010, what does the inventory look like?

by Ashlie DuCros

Here are the Stats for the month of January 2010!

 ACTIVE homes on the Market VS. Homes in ESCROW

City

# of Active Homes on Market

# of Homes in Escrow

Yorba Linda

204

179

Brea

63

67

Fullerton

252

237

Anaheim Hills

98

89

Newport Coast

127

37

Irvine

421

367

Placentia

80

79

Orange

257

205

Tustin

143

162

Corona Del Mar

153

22

Villa Park

33

12

North Tustin

53

25

 

If you have any questions or would like more information please contact Ashlie Ducros (714) 743-9778 or via email AshlieDucros@mailpcr.com

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Ashlie DuCros & Associates
Coldwell Banker Previews Global Luxury
21580 Yorba Linda Blvd.
Yorba Linda CA 92887
714-743-9778
Fax: 714-849-5489