Sales of California’s million dollar homes at 7-year high

7-year high in high-end home sales is led by Manhattan Beach.
http://www.dailynews.com/business/20140731/sales-of-californias-million-dollar-homes-at-7-year-high#.U9uihcLFrYA.email

* Please note, the sender's email address has not been verified Barron's on home prices. Up 12% nationwide in 2013!. WSJ Video - Barron's Buzz: Home Prices Set to Climb in 2014 Subscriber-only content will be available to non-subscribers for up to seven days after it is emailed. This article can also be accessed if you copy and paste the entire address below into your web browser. http://on.wsj.com/1il0BXH?mod=wsj_video_email

Southland Home Sale Update

Latest trends for Southern California housing – David

http://dqnews.com/Articles/2013/News/California/Southern-CA/RRSCA130912.aspx

New home sales exceed expectations

Home sales have been rising steadily!







http://money.cnn.com/2012/02/24/real_estate/home_sales/index.htm

New Home Sales Crater In January, Opening The Door For Deals With Builders

Not all housing reports are sunny, it seems.

In its monthly New Home Sales release, the U.S. Department of Commerce showed a 13 percent drop-off in annualized new construction sales between the months of December and January.

It's the biggest one-month drop in New Home Sales since May 2010.

In addition, the supply of new homes for sale spiked higher to 7.9 months last month.  "Home supply" is defined as the amount of time it would take to sell the complete "for sale" inventory at the current pace of sales.

In December, the supply measured just 7.0 months,

Don't fret the news, however. For buyers of new construction , falling New Home Sales figures can be terrific. Weaker markets put pressure on the nation's home builders to sell their respective homes more quickly. To reach that goal, builders often discount prices and/or offer free upgrades to buyers. 

Some of that action may already be in effect.

Despite falling volume, the New Home Sales report showed that new homes are selling faster than in recent months. The median time required to sell a newly-built home dropped to 7.8 months in January -- a figure well below January 2010's reading of 13.9 months.

It suggests that builders are getting better at locating buyers, and moving property.

Therefore, if you're shopping for a new construction and see one worth buying, get to it. Not only will the home likely sell soon if it's priced right, but an increase in mortgage rates will make the home more expensive to finance.

Every 0.250% increase to rates adds $15 monthly per $100,000 borrowed.

Home Supplies Plummet, Putting Pressure On Prices To Rise

Existing Home Sales surged 12 percent last month, closing 2010's housing market with strength. An "existing home" is a home that cannot be categorized as new construction; a resale.

According to the National Association of REALTORS®, seasonally-adjusted, annualized Existing Home Sales figures climbed by more than a half-million units in December as compared to November. It's the 3rd straight month of home resale improvement nationwide.

Sales volume is now as high as it's been since May 2010 -- just after the federal home buyer tax credit's expiration.

In addition, the number of months needed to sell the complete, current home inventory at the current pace of sales fell by 1.4 months, tying December for the biggest one-month home supply improvement in 2 years.

It's yet another signal that the housing market is in recovery. Not that this data should surprise anyone. November's Pending Home Sales report told us to expect it two weeks ago.

Broken down by buyer-type, home sales split as follows:

• First-time home buyers : 33% of all sales
• Repeat buyers : 47% of all sales
• Real estate investors : 20% of all sales

Cash buyers represented 29 percent of all transaction, down 2 ticks from November. This may suggest that mortgage guidelines are loosening -- another sign of economic improvement.

So, take note, home buyers. This spring, along with mortgage rates, home values should rise, too. Expect less "bang for your buck" as the housing recovery takes hold here in the South Bay and across the nation.

The best deals of the year may be the ones made this month.

Real estate sales up 19.2% in May

Nationwide, government tax credits were partially responsible for May's rise in existing home sales of 19.2%.

Other factors: Record low rates, moderate inventories (which declined as a result), the availability of mortgage credit, and recognition by the homebuying public that this confluence of positive buying factors can't last forever! - David

Real estate sales spike 16% in March | Inman News

Broader, confirming signs of the uptick we've been experiencing in real estate price stability and sales in the South Bay since February. - David

Real estate sales spike 16% in March | Inman News

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Southern California home prices rise 10% in February - latimes.com

Here's the regional info we want to see. Southern California home prices rise 10% in February!  Foreclosures are down in the area as well.

What's missing?  Stated income jumbo loan financing, which remains nonexistent in any real sense.  So self-employed purchasers looking to purchase larger, more expensive homes must come up with enormous down payments or work with a mortgage broker with access to nontraditional financing sources (ask me for a referral!). - David

Pending home sales in the West fare better than the rest of the country

Sales in the West look a LOT better than in the rest of the country these days. 

Pending home sales in the West fare better than the rest of the country

Beware of generalized statistics that aren't pertinent to our local area (even these are pretty broad)! - David
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Upon Closer Inspection, The Federal Reserve Isn't 100% Positive About The Future Of The Economy

Both mortgage rates and home affordability took a turn for the better Wednesday after the Federal Reserve released its December 15-16, 2009 meeting minutes.
The Fed Minutes is a follow-up piece to the post-FOMC meeting press release. But whereas the press release is succinct and to-the-point, the minutes are lengthy and often meandering.

Good Reason Why The New Home Sales Data Plunged In November

One day after November's Existing Home Sales report blew away estimates, the Census Bureau's related New Homes Sales report failed to impress.
A "new home" is a home that is newly-constructed; not bought as a resale.
In a lackluster showing, New Home Sales dropped 11 percent in November, falling to the lowest levels since April. Furthermore, the all-important "months of supply" climbed by a half-month to 7.9.
The press pounced on the figures and if you only read the headlines, you'd think that housing had cratered.

Details of Exiting Home Sales

Courtesy of Focus Publications, here's the nitty gritty detail behind the recent spike in existing home sales. - David

Existing Home Sales Jump 7.4%!

Sales of existing homes jumped 7.4% in November (!), spurred by the availability of good deals at low rates, and aided by incentive programs. - David

New Home Sales Off, As Existing Home Sales Rise

Sales of new homes declined in recent statistics, not a surprise due to they way they are counted (new contracts vs. closed contracts), the usual holiday softening, and the fact that most current incentives favor existing homes. - David

http://online.wsj.com/article/SB126157233578602825.html?mod=djemRealEstate

Homes in Escrow Continue to Decline in South Redondo Beach

As seen in this chart, the number of homes in escrow (pending) in South Redondo Beach continued to decline in November. Contact me for comprehensive, up-to-date statistical information by market. - David

Hermosa Beach Sales Rising Steadily

As seen in this chart, the number of monthly sold residential properties in Hermosa Beach has been rising steadily from the lows in the beginning of 2009, with a few spikes in summer. Contact me for comprehensive, up-to-date statistical housing information by market. - David