RealStar
I’m gratified to report that late this afternoon, Gov. Schwarzenegger signed Assembly Bill 183, the Homebuyer Tax Credit legislation, into law. His actions today are the result of our efforts in Sacramento over the last several weeks as members and our team in the capital worked for the bill’s passage before it landed on the governor’s desk.
(more…)
A report by Trulia.com found that as of Jan. 1, 21 percent of homes currently on the market have experienced at least one price reduction. The total amount reduced for all homes nationwide declined to $21.2 billion in January compared with $24.7 billion in December. The average discount for homes with price reductions remained at 11 percent, according to the report. In the west, which includes California, 22 percent of listings experienced price reductions.
During his State of the State address, Governor Schwarzenegger today announced his 2010 proposals for California. Included in the proposals is a recommendation to set aside $200 million for a new round of $10,000 state tax credits for first-time home buyers. The proposal expands upon the initial $10,000 state tax credit by including both new and existing homes. Last year’s tax credit applied only to new homes.
The tax credit could be combined with the recently extended and expanded federal tax credit for home buyers.
Sales of newly built, single-family homes declined 11.3 percent in November to a seasonally adjusted annual rate of 355,000 units, according to a report released WHEN? by the U.S. Commerce Dept.
Sales of new single-family homes declined in three out of four regions in November, with only the Midwest posting a gain, of 21.4 percent. Declines of 3.3 percent, 21.1 percent, and 9.2 percent were recorded in the Northeast, South and West, respectively.The number of newly built homes on the market continued to decline in November, falling 2.1 percent to 235,000 units. This marked a 7.9-month supply at the current sales pace, according to the report.
The Consumer Confidence Index rose in December to 52.9 (1985=100) compared with 50.6 in November, the Conference Board reported yesterday. The Present Situation Index declined to 18.8 in December from 21.2 in November, and the Expectations Index increased to 75.6 from 70.3 last month, according to the report.
“Consumer confidence posted yet another moderate gain in December as expectations for the short-term future increased to the highest level in two years,” said Lynn Franco, director of The Conference Board Consumer Research Center. “The Present Situation Index, however, continued to lose ground and remains at a 26-year low. A more optimistic outlook for business and labor market conditions was the driving force behind the increase in the Expectations Index.”
Consumers’ assessment of current conditions declined in December, with those claiming business conditions are “bad” increasing to 46.6 percent in December from 44.5 percent in November, while those claiming conditions are “good” decreased to 7 percent in December compared with 8.1 percent in November. Consumers’ appraisal of the job market also was mixed, and their short-term outlook improved slightly, according to the report.
The annual rate of home-price decline improved in October in the 10-City and 20-City Composites tracked as one of the S&P/Case-Shiller Home Price Indices released yesterday. The 10-City and 20-City Composites declined 6.4 percent and 7.3 percent, respectively, in October compared with the same month last year. All 20 metro areas and both composites showed an improvement in the annual rates of decline in October compared with September.
“The turn-around in home prices seen in the spring and summer has faded, with only seven of the 20 cities seeing month-to-month gains, although all 20 continue to show improvements on a year-over-year basis,” said David M. Blitzer, chairman of the Index Committee at Standard & Poor’s. “Following a series of solid gains, these data are likely to spark worries that home prices are about to take a second dip. Before jumping to conclusions, recognize that the one time that happened at the beginning of the 1980s, Fed policy saw dramatic reversals, which is very different from the stable and consistent Fed policy we have today.”
Home sales in California increased 4.7 percent in November compared with the same period a year ago, while the median price of an existing home rose 5.8 percent, according to a report released yesterday by C.A.R.
The median price of an existing, single-family detached home in California during November 2009 was $304,520, a 5.8 percent increase from the revised $287,880 median for November 2008, C.A.R. reported. The November 2009 median price rose 2.4 percent compared with October’s $297,500 median price.
The median home price in California has risen nine consecutive months in month-to-month comparisons, but November marked the first time California’s median home price has risen in year-to-year comparisons since August 2007.
Calif. median home price - October 09: $297,500 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region October 09: Santa Barbara So. Coast $970,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region October 09: High Desert $118,580 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Third Quarter 2009: 64 percent (Source: C.A.R.)
Mortgage rates – week ending 12/03/09 30-yr. fixed: 4.71% Fees/points: 0.7% 15-yr. fixed: 4.27% Fees/points: 0.6% 1-yr. adjustable: 4.25% Fees/points: 0.6% (Source: Freddie Mac)
The Anderson Center’s California Composite Index of Consumer Confidence increased in the fourth quarter of 2009 to a reading of 76.3 compared with 69.2 in the third-quarter. An index level lower than 100 reflects a higher percentage of pessimistic consumers compared with those who are optimistic.
The California Composite Index is generated based on three indices. All three components of the composite index– consumers’ outlook on current economic conditions, consumers’ outlook on future economic conditions, and an index measuring consumers’ future spending plan–increased in the fourth quarter compared with the third quarter of 2009.
The index measuring current economic conditions increased by 14.2 points to 53.8 in the fourth quarter from 39.6 in the third quarter; the index measuring future economic conditions rose from a reading of 97.7 in the third quarter to 99.7 in the fourth quarter; and the index measuring consumers’ planned spending on big-ticket items increased to 74.7 in the fourth quarter from 71.7 in the third quarter of 2009.
NAR’s Pending Home Sales Index (PHSI) rose 3.7 percent to 114.1 in October from 110 in September, and is 31.8 percent higher than October 2008’s 86.6 index reading. Pending home sales have risen nine consecutive months. The rise from a year ago is the largest annual increase ever recorded for the index, which is at its highest level since March 2006. However, in the West, which includes California, the index declined 11.2 percent to 127.7 but is 21.9 percent higher than October 2008.
“The expanded tax credit only has been available for the past three weeks, but the time between when buyers start looking at homes until they close on a sale can take anywhere from three to five months,” said NAR Chief Economist Lawrence Yun. “Given the lag time, we could see a temporary decline in closed existing-home sales from December until early spring when we get another surge, but the weak job market remains a major concern and could slow the recovery process.”
ABOUT
EpicTrendz, stylishly smart around the home.