Wednesday, May 16, 2012

Housing Market Picking Up Locally and Nationally

Hope is returning to the housing market, both locally and nationwide.
Los Angeles County's median home price rose 5.1 percent last month to $286,800, the California Association of Realtors reported Tuesday.
California fared even better. The state's median home price increased 5.7 percent in April to $308,050, and it was also up 4.7 percent from the same period a year ago, according to CAR.
Statewide housing sales posted solid gains, with a 10 percent monthly increase and an annual gain of 11 percent.
"A brighter economic picture, coupled with record-high housing affordability, pushed the spring home buying season off to a strong start," CAR President LeFrancis Arnold said in a statement. "With a continuing improving economy and interest rates declining to new record lows in recent weeks, we should see a steady improvement in the housing market throughout the end of the year."
That sentiment appears to be reflected in homebuilder confidence, which reached its highest level in five years in May, according to the National Association of Home Builders/Wells Fargo housing market index.
Builders reported greater sales and higher traffic from prospective buyers.
The report represents the government's first look at consumer spending for the April-June quarter. Consumer spending is closely watched since it accounts for 70 percent of economic activity.
Although Los Angeles County prices rose, home sales fell 2.9 percent and were down 0.6 percent from April 2011.

"Prices are going up in a number of price ranges," said Karen Sauve, a broker/associate with Keller Williams Realty in Pasadena. "We're seeing multiple offers come through but inventory is down compared to several months ago."
Sauve chalked that up to the fact that many sellers are holding off in hopes that their home values will continue to rise.
Sauve said her office is seeing 10 to 20 offers on some properties.
It's difficult in some respects because it runs the price way up," she said. "We also see some buyers dropping out because they make the top offer then say, `Oops, that's too much.' I don't think prices will go rushing up, but we're seeing gradual price increases and that's bringing more buyers into the market."
The biggest boost in home prices occurred last month in Amador County, where the median price rose 54.4 percent to $183,330 compared with $118,750 in March.
Monthly price increases were far more muted in San Bernardino County (0.3 percent) and Riverside County (1.2 percent) last month, although Riverside County's median home price was up 7.4 percent from April 2011.
Donna Baker, a Realtor with Podley Properties in Monrovia, said she's seen a definite pickup in market activity.
"Last month was crazy busy," she said. "We are getting a lot of multiple offers when a home is priced right - especially on short sales."
May has been slower, Baker said, but she expects things to accelerate as the year progresses.
"I think things will be good," she said.
Interest rates remained extremely low in April, with 30-year fixed-mortgage interest rates averaging 3.91 percent, down from 4.84 percent in April 2011, according to Freddie Mac. Adjustable-mortgage interest rates averaged 2.78 percent in April, compared with 3.20 percent in April 2011.
The median number of days it took to sell a single-family home fell to 49.3 days in April, down from a revised 53.2 days for the same period a year ago, CAR reported.

The views, opinions, positions or strategies expressed by the authors and those providing comments or external internet links are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of First Capital, we make no representations as to accuracy, completeness, current, suitability, or validity of this information and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. Any information provided does not constitute an offer or a solicitation to lend. Providing information to purchase does not guarantee a loan approval. All registered trademarks, copyright, images, or other items used are property of their respective owner and are used for editorial purposes only.
First Capital Mortgage is a subsidiary of PHH Home Loans LLC, a direct lender, Dept. of Corporations file #413-0713 NMLS#4256

Visit First Capital Online or call: 310-458-0010

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.