Led by the Southern California region, California statewide pending home sales continued to build momentum in July, posting an increase from both the previous month and year, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said.

Despite an increase in pending sales, California’s housing market showed signs of cooling competition with fewer buyers overbidding on homes, as reflected in C.A.R.’s July Market Pulse Survey**. The survey results indicate a decrease in the premium paid over asking price and the percentage paid below asking price reaching its high level.

Source: C.A.R.

Making sense of the story

  • Statewide pending home sales rose in July on a seasonally adjusted annualized basis, with the Pending Home Sales Index (PHSI)* increasing 3.5 percent from 118.4 in July 2015 to 122.5 in July 2016, based on signed contracts. Pending sales have been on a rising trend for the past couple of months, which should translate into an increase in closed transactions in the fall. On a month-to-month basis, California pending home sales were up 3.0 percent from June’s index of 119.0.
  • At the regional level, Southern California pulled up the market with a year-over-year increase in pending home sales, while the San Francisco Bay Area reversed its gain last month. Pending sales in the Central Valley were essentially flat.
  • Pending home sales in Southern California as a whole rose 1.6 percent from July 2015, thanks primarily to year-over-year pending sales increases of 7.8 percent in Orange County and 7.5 percent in San Diego County. Compared to June 2016, pending home sales were down 1.8 percent.
  • For the Bay Area as a whole, pending sales were down 3.5 percent from July 2015 and down 3.8 percent from June, despite year-to-year increases in pending sales in San Francisco (20.6 percent) and San Mateo (3.6 percent) counties. Low affordability and limited housing supply has been plaguing the region, however, an improvement in inventory in recent months should alleviate low housing stock in the upcoming months.
  • Pending sales in Central Valley were essentially flat, down just 0.1 percent from the previous year but up 1.9 percent on a month-to-month basis.

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Talking Points

  • Total mortgage applications, including for refinancings and home purchases, dropped 2.1 percent on a seasonally adjusted basis last week as rates rose slightly, the Mortgage Bankers Association reported this week.
  • Nevertheless, mortgage application volume is still 28 percent higher than the same week a year ago, when rates were much higher. Most of the uptick in applications, however, is due to refinancing demand.
  • The average 30-year fixed-rate mortgage bumped up to 3.67 percent last week from a 3.64 percent average the previous week, MBA reports. Applications for refinancings dropped 3 percent last week. Still, refinancings are nearly 45 percent higher than the same week a year ago.
  • Applications for home purchases dropped slightly by 0.3 percent last week and are 7.7 percent higher than a year ago, MBA reports. However, applications for purchases are now at a six-month low.

From C.A.R. Market Matters ~ CALIFORNIA ASSOCIATION OF REALTORS®

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Real Estate in Stockton, Lodi and San Joaquin County

Dave Thurman Real Estate – RE/MAX Gold

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Aug

25

Will That Home Work as You Age?

Posted by Dave Thurman under Real Estate

Many older adults say they want to stay put in their homes as they age. But how many older adults will actually be able to do so is another question.

According to a recent AARP study, 71 percent of 50 to 64 year olds want to stay in their homes and their current communities. However, communities generally do not have the options that people need to age well in place.

Older adults find the following community amenities are most important for them to live near (1 mile or less):
Bus stop: 50%

  • Grocery store: 47%
  • Pharmacy/drug store: 42%
  • Park: 42%
  • Hospital: 29%
  • Church/religious: 29%
  • Train/subway: 23%
  • Big box store: 18%
  • Entertainment: 16%
  • Shopping mall: 13%

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Fast Facts

Calif. median home price: June 2016:

  • California: $519,440
  • Calif. highest median home price by region/county: San Francisco, $1,350,000
  • Calif. lowest median home price by region/county: Glenn, $205,560

Calif. Pending Home Sales Index:
The Pending Home Sales Index (PHSI) increased 3.5 percent from 118.4 in July 2015 to 122.5 in July 2016

Calif. Traditional Housing Affordability Index: Second Quarter 2016: 31 percent

Mortgage rates: Week ending 8/18/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.43% fees/points: 0.5%
  • 15-yr. fixed: 2.74% fees/points: 0.5%

From C.A.R. Newsline ~ CALIFORNIA ASSOCIATION OF REALTORS®

Find Your Dream Home

Real Estate in Stockton, Lodi and San Joaquin County

Dave Thurman Real Estate – RE/MAX Gold

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Aug

23

Time to Sell?

Posted by Dave Thurman under Real Estate

TimeToSell

The Basics of Marketing Your Home

Your REALTOR®’s marketing efforts and considerations will include advertising, showing the property, how long the house has been on the market and whether you’re buying another home. Your home should be listed, whenever possible, through a Multiple Listing Service (MLS). [Read More]

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Real Estate in Stockton, Lodi and San Joaquin County

Dave Thurman Real Estate – RE/MAX Gold

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California home sales stumbled in July as low inventories and eroding affordability dragged down the housing market, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said this week. Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 415,840 units in July, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. The statewide sales figure represents what would be the total number of homes sold during 2016 if sales maintained the July pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

Source: C.A.R.

Making sense of the story

  • Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 415,840 units in July, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. The statewide sales figure represents what would be the total number of homes sold during 2016 if sales maintained the July pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
  • The July figure was down 4.1 percent from the revised 433,600 level in June and down 5.1 percent compared with home sales in July 2015 of a revised 438,230. Home sales remained above the 400,000 pace for the fourth straight month, but sales have declined year over year for the fifth consecutive month.
  • “Despite the tight housing supply conditions that have persisted over the past few years, home sales have stayed relatively solid,” said C.A.R. President Pat “Ziggy” Zicarelli. “Even with a shortage of homes on the market, low rates and strong demand have been the norm. Some regions, such as the Bay Area, are seeing an uptick in inventory as high prices are motivating sellers to list their properties for sale. While this could ease the inventory somewhat, supply remains tight, and low affordability is expected to be an issue in the short term.”
  • The statewide median price remained above the $500,000 mark for the fourth straight month, but there are signs of an expected slowing in price growth. The median price of an existing, single-family detached California home slipped 1.8 percent in July to $509,830 from $519,410 in June. July’s median price increased 3.9 percent from the revised $490,780 recorded in July 2015. The median sales price is the point at which half of homes sold for more and half sold for less; it is influenced by the types of homes selling as well as a general change in values. More homes being sold at the high end of the market (over $1 million) and slightly fewer sales at the lower end (under $300,000) contributed to the year-over-year gain in the median price.

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From C.A.R. Market Matters ~ CALIFORNIA ASSOCIATION OF REALTORS®

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Real Estate in Stockton, Lodi and San Joaquin County

Dave Thurman Real Estate – RE/MAX Gold

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Aug

18

New Single-Family Home Size Declining

Posted by Dave Thurman under Real Estate

After increasing and leveling off in recent years, new single-family home size declined during the second quarter of 2016. This change marks a reversal of the trend that had been in place as builders focused on the higher end of the market during the recovery. As the entry-level market expands, including growth for townhouses, typical new home size is expected to trend lower.

According to second quarter 2016 data from the Census Quarterly Starts and Completions by Purpose and Design and NAHB analysis, median single-family square floor area declined from 2,465 in the first quarter to 2,392 square feet for the second. Average (mean) square footage for new single-family homes fell from 2,658 to 2,616 square feet for the second quarter.
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Fast Facts

Calif. median home price: July 2016:

  • California: $509,830
  • Calif. highest median home price by region/county: San Francisco, $1,362,500
  • Calif. lowest median home price by region/county: Tehama, $184,000

Calif. Pending Home Sales Index:
The Pending Home Sales Index (PHSI) increasied 3.2 percent from 123.4 in June 2015 to 127.3 in June 2016

Calif. Traditional Housing Affordability Index: Second Quarter 2016: 31 percent

Mortgage rates: Week ending 8/11/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.45% fees/points: 0.5%
  • 15-yr. fixed: 2.76% fees/points: 0.5%

From C.A.R. Newsline ~ CALIFORNIA ASSOCIATION OF REALTORS®

Find Your Dream Home

Real Estate in Stockton, Lodi and San Joaquin County

Dave Thurman Real Estate – RE/MAX Gold

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