Statewide sales report for September
The sales rate of previously owned single-family homes fell 38.9 percent in September compared to the same month last year, while the median price declined 4.7 percent and the months' supply bloated to 16.6 months, the California Association of Realtors reported last week.
Colleen Badagliacco, association president, said in a statement that the year-over-year drop in median price -- the first in more than 10 years -- "was mainly the result of the credit or liquidity crunch, which also drove sales below the annualized 300,000 mark." A more normal yearly number would be 500,000-550,000. This rate is a projection of a monthly total over a 12-month period, adjusted to account for seasonal fluctuations in sales activity. Last year statewide sales were slow at 450,000 units.
She also stated that California relies more heavily on jumbo loans, which are loans above a federally established conforming loan limit of $417,000, than many other states because home prices in the state typically exceed that amount. "This speaks to the need to raise the conforming loan limit in higher-cost states like California to more accurately reflect the cost of housing," she stated. Conforming loan limits will be increased by the end of the year. The big question is how high?
The national sales rate of single-family resale homes hit its lowest level in about 10 years in September and fell 19.8 percent compared to September 2006. Also, the median U.S. single-family resale home price dropped 4.9 percent year-over-year in September.
Leslie Appleton-Young, chief economist for the California Association of Realtors, said in a statement, "While the entry-level portion of the market has been adversely affected by the subprime situation and tighter underwriting standards for much of this year, the high end of the market also saw a decline in sales, as even well-qualified buyers were affected by the lack of funds available for jumbo loans."
The median price of an existing, single-family detached home in California was $530,830 in September, compared with $557,150 for that month last year.
The Unsold Inventory Index, a measure of the months needed to deplete the supply of for-sale homes based on the sales rate for a given month, skyrocketed from 6.4 months in September 2006 to 16.6 months in September 2007. A supply of six months is generally considered to indicate a buyer's market.
Thirty-year fixed-mortgage interest rates averaged 6.38 percent in September, compared with 6.4 percent in September 2006, according to Freddie Mac, while adjustable mortgage interest rates averaged 5.66 percent in September compared with 5.56 percent for that month in 2006. The interest rates have continued to fall into October. We are not under 6 percent yet but getting closer.
The 10 California cities and communities tracked in the report with the lowest median home prices in September include: Barstow, $163,000; North Highlands, $178,500; Ridgecrest, $180,000; Joshua Tree, $182,500; Yucca Valley, $200,000; Porterville, $202,500; Tulare, $224,000; Madera, $236,250; Crestline, $240,000; and Tehachapi, $243,750.
The 10 cities and communities tracked in the report with the highest median home prices in September include: Newport Beach, $1.44 million; Los Gatos, $1.23 million; Cupertino, $1.05 million; Danville, $1 million; Redondo Beach, $847,500; San Clemente, $830,000; Yorba Linda, $825,000; Arcadia, $805,000; San Rafael, $797,500; and Santa Monica, $796,500.
The 10 cities and communities with the largest decline in median home prices from September 2006 to September 2007 include: North Highlands, down 33.9 percent; Oakdale, down 33.8 percent; Arroyo Grande, down 29.8 percent; Patterson, down 29 percent; Los Banos, down 28 percent; Merced, down 27.8 percent; Spring Valley, down 26.5 percent; Elk Grove, down 25.6 percent; Ceres, down 25 percent; and Santa Ana, down 24.7 percent.
The 10 cities and communities with the greatest median home price increases in September compared with the same period a year ago were: Tustin, up 19.7 percent; Los Angeles, 18.2 percent; Arcadia, 14.2 percent; Carlsbad, 11.1 percent; Laguna Niguel, 10.1 percent; Diamond Bar, 8.7 percent; Cupertino, 8.4 percent; Redondo Beach, 8 percent; Reedley, 7.1 percent; and Newport Beach, up 6.3 percent.Merced, Santa Barbara, Stanislaus, San Joaquin, El Dorado, Monterey and Santa Cruz counties had median-price declines above 15 percent in September compared to September 2006, according to the report. Santa Clara County had the highest year-over-year median-price gain in September, at 3.4 percent. Other counties tracked by the report with price gains include Marin, San Francisco, Los Angeles and Contra Costa counties
Colleen Badagliacco, association president, said in a statement that the year-over-year drop in median price -- the first in more than 10 years -- "was mainly the result of the credit or liquidity crunch, which also drove sales below the annualized 300,000 mark." A more normal yearly number would be 500,000-550,000. This rate is a projection of a monthly total over a 12-month period, adjusted to account for seasonal fluctuations in sales activity. Last year statewide sales were slow at 450,000 units.
She also stated that California relies more heavily on jumbo loans, which are loans above a federally established conforming loan limit of $417,000, than many other states because home prices in the state typically exceed that amount. "This speaks to the need to raise the conforming loan limit in higher-cost states like California to more accurately reflect the cost of housing," she stated. Conforming loan limits will be increased by the end of the year. The big question is how high?
The national sales rate of single-family resale homes hit its lowest level in about 10 years in September and fell 19.8 percent compared to September 2006. Also, the median U.S. single-family resale home price dropped 4.9 percent year-over-year in September.
Leslie Appleton-Young, chief economist for the California Association of Realtors, said in a statement, "While the entry-level portion of the market has been adversely affected by the subprime situation and tighter underwriting standards for much of this year, the high end of the market also saw a decline in sales, as even well-qualified buyers were affected by the lack of funds available for jumbo loans."
The median price of an existing, single-family detached home in California was $530,830 in September, compared with $557,150 for that month last year.
The Unsold Inventory Index, a measure of the months needed to deplete the supply of for-sale homes based on the sales rate for a given month, skyrocketed from 6.4 months in September 2006 to 16.6 months in September 2007. A supply of six months is generally considered to indicate a buyer's market.
Thirty-year fixed-mortgage interest rates averaged 6.38 percent in September, compared with 6.4 percent in September 2006, according to Freddie Mac, while adjustable mortgage interest rates averaged 5.66 percent in September compared with 5.56 percent for that month in 2006. The interest rates have continued to fall into October. We are not under 6 percent yet but getting closer.
The 10 California cities and communities tracked in the report with the lowest median home prices in September include: Barstow, $163,000; North Highlands, $178,500; Ridgecrest, $180,000; Joshua Tree, $182,500; Yucca Valley, $200,000; Porterville, $202,500; Tulare, $224,000; Madera, $236,250; Crestline, $240,000; and Tehachapi, $243,750.
The 10 cities and communities tracked in the report with the highest median home prices in September include: Newport Beach, $1.44 million; Los Gatos, $1.23 million; Cupertino, $1.05 million; Danville, $1 million; Redondo Beach, $847,500; San Clemente, $830,000; Yorba Linda, $825,000; Arcadia, $805,000; San Rafael, $797,500; and Santa Monica, $796,500.
The 10 cities and communities with the largest decline in median home prices from September 2006 to September 2007 include: North Highlands, down 33.9 percent; Oakdale, down 33.8 percent; Arroyo Grande, down 29.8 percent; Patterson, down 29 percent; Los Banos, down 28 percent; Merced, down 27.8 percent; Spring Valley, down 26.5 percent; Elk Grove, down 25.6 percent; Ceres, down 25 percent; and Santa Ana, down 24.7 percent.
The 10 cities and communities with the greatest median home price increases in September compared with the same period a year ago were: Tustin, up 19.7 percent; Los Angeles, 18.2 percent; Arcadia, 14.2 percent; Carlsbad, 11.1 percent; Laguna Niguel, 10.1 percent; Diamond Bar, 8.7 percent; Cupertino, 8.4 percent; Redondo Beach, 8 percent; Reedley, 7.1 percent; and Newport Beach, up 6.3 percent.Merced, Santa Barbara, Stanislaus, San Joaquin, El Dorado, Monterey and Santa Cruz counties had median-price declines above 15 percent in September compared to September 2006, according to the report. Santa Clara County had the highest year-over-year median-price gain in September, at 3.4 percent. Other counties tracked by the report with price gains include Marin, San Francisco, Los Angeles and Contra Costa counties
posted by Ken Calhoon at 8:33 AM
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