A Daily Shot of News

The Sacramento real estate market is facing mixed signals as signs indicate that the nationwide economic recession may finally be coming to a close. One positive indicator is a recent drop in foreclosures, according to a February 16, 2010 article in the Sacramento Business Journal. The piece noted that “Notices of default declined in the four-county region last month, but the number of banks who received the keys to homes increased compared to a year ago, according to a report released Tuesday.” The article continued to detail that “The county had 1,574 notices of default last month, compared to 1,438 in December and 2,138 in January 2009. The activity on notices of trustee sale dipped to 1,417 last month, just eight fewer than a year ago.”

Sacramento homes for sale are going for less money lately, according to a February 23, 2010 article, which noted that “Home prices increased for the seventh-consecutive month in December, the latest evidence that the badly battered housing market is at least attempting to get off the mat.” The piece, published in the Sacramento Business Journal, continued to state that “Sacramento-area’s median home price is about 30 percent lower than its peak four years ago, according to the California Association of Realtors. However, the amount of decline depends on the community and even the neighborhood.”

A second study, this one conducted by MDA Data Quick, confirmed this ambiguous news for Sacramento real estate for sale. The analysis, published in the Sacramento Business Journal on February 19, 2010, noted that “Home prices that had appeared to stabilize in Sacramento County last year fell significantly from December to January, although they matched the prices from a year ago, according to figures released Thursday from analyst MDA DataQuick.” The article, composed by Michael Shaw, further found that “The median sales price in Sacramento County for homes of all types, including newly built ones, was $165,000 in January, down from $178,000 in December. In January of last year, the median price was also $165,000…The company reported that sales totaled 2,168 homes in the four-county region, down from 2,524 homes the previous January.”

Like so many other markets across the country and particularly in the state of California, which has been especially hard-hit by the fluctuations in the national housing market, the Santa Cruz real estate market has seen vast devaluations in homes and condos throughout the past couple of years as the bubble burst on the seemingly endless rise in home prices. Average and median prices have plunged from their peaks, inventory has piled up and many homeowners have been forced into foreclosure by ballooning mortgage payments and rising unemployment.

However, not all news is bad news concerning Santa Cruz homes and condos. In fact, according to statistics from the Santa Cruz Association of Realtors, the end of 2009 saw the average price for a single-family residence hit its highest point since September of 2008: In November 2009, the average price for a single-family home in Santa Cruz County was more than $620,000 (although it fell back to just over $603,000 in December). Median prices showed stark improvement as well: the median price for a single-family home in December was $555,000, also the highest monthly figure since August 2008. Single-family homes inventory began to thin out toward the end of the year as well, with December finding just 631 homes on the market, the lowest level in more than two years.

Condo prices saw a resurgence toward the end of the year as well, with the average price for a condo in December 2008 at its highest point in five months, at over $378,500. The median price at the end of the year also maintained one of the higher monthly levels for 2009. The inventory of condos and townhomes showed signs for optimism as well, with the number still on the market in December 2009 at fewer than 200, the lowest level in more than two years.

The city of Santa Cruz saw the most sales volume of any town or city in Santa Cruz County in December 2009, with sales volume at more than $21 million. The city’s median sales price in December was at $578,000 for single-family homes, while the average price was more than $660,000. The Seacliff neighborhood had the highest median sales price in December of any Santa Cruz neighborhood, at more than $1.13 million, while Adult Village saw the lowest median price of $227,000. Most of the inventory still on the market in the Santa Cruz area is in the San Lorenzo Valley and Santa Cruz proper areas, followed by East Santa Cruz County and Scotts Valley.

The Saint Charles County county real estate market struggled in 2009 according to data released by the St Charles Association of Realtors.  The market has been especially hard hit in the luxury price ranges above $600,000 according an article in the St Louis Post Dispatch.   Through October of 2009, according to MLS sales data, there were no sales in three separate St. Charles luxury home price ranges — $575,000-$600,000, $700,001-$750,000 and $950,000-$1Million.  Currently, based on recent absorption numbers – the market has between 36 and 48 months of inventory in the price ranges above $575,000 and $900,000 respectively.

Difficult real estate conditions in St Charles have resulted in numerous development project failures including the bankruptcy filing by Whittaker Homes in 2009 – developer of the New Town project in St Charles, the largest planned development project in St Charles County.

Whittaker Homes is the St Charles area’s largest builder with home developments in Wentzville, Lake Saint Louis and Shiloh, Ill.  Whittaker’s signature development project – and biggest far- is New Town in St. Charles.  The mammoth project is home to about 2,500 residents in over 900 homes, townhouses and apartments. The village type community is made up of a number of residences, most located on dense small lots situated along a traditional grid of streets.   The New Town development was designed to entice residents who are eager to purchase a Saint Charles home where they can walk within their community directly to local shops, restaurants and schools.

The St Charles real estate market, a part of the greater St Louis Metropolitan Statistical Area, is considerably weaker than average in terms of market statistics such as median housing prices.  While real estate market conditions in other parts of the Saint Louis Metro area improved in 2009, median prices for homes in the St Charles area continue to remain below the same period last year. The median price of St. Charles in December of 2009 was $168,000 as compared to the median house price of $182,500 in December 2008 – a decline of 7.95%.

Sales fell 8.7% in St Charles as compared to the overall home sales decline for the entire St. Louis area of 2.7 percent in 2009, a decline led by a widely anticipated decline in December following the expiration of the homebuyer tax credit.

Though Arizona real estate sector has suffered tremendously since the onset of the U.S. housing crisis triggered by the larger U.S. financial crisis and recession, with home values in some cases falling by more than 50% from highs in 2006, Scottsdale real estate has nonetheless showing signs that perhaps it has at least hit bottom and is now beginning to steady out. In 2009, though Scottsdale’s homes prices were still well below ideal levels, sales volume was markedly up, accounting for some of the highest sales volume since 2005.

According to the Arizona Regional Multiple Listing Service, sales volume in the Scottsdale region in 2009 finished up the year with more than 7,650 sales in October, lower than some of summer 2009’s sales volume, but still accounting for some of the highest levels since late 2005. Total sales volume for 2009 was the highest it has been since 2005, much of that spurred on by the government’s stimulus program offering generous tax rebates to those buying houses.

Scottsdale median home prices finished the year with a level of $126,600 in December, down slightly from 2009’s high levels of $130,000 in both January and November, and down by mid-2000 highs by nearly 50%: The region’s record median price came in June 2006, at $264,800. Average prices fared better: December’s average price was $177,572, the highest level since January of 2009, after which it steadily fell before beginning to climb back up. This suggests that prices could continue to slowly climb in 2010, offering a glimmer of hope to those underwater on their homes, but giving those wanting to get in on cheap real estate an impetus to do so soon. The average price peaked in May 2007 at $350,400.

The number of days homes are spending on the market has continued a general steady decline over 2009 as well. In January, the average number of days on the market was 115, which rose into the 120s over the next four months before eventually declining when summertime hit. In October and November, days on the market reached a yearly low of 90, and it rose slightly in December to 92. Meanwhile, listings of new homes on the market also fell in the latter half of the year, reaching the lowest levels since late 2007 as inventory cleared out.

In October 2008, the median home price of homes sold in San Jose, California was $490,100. This is down from $495,000 in September and $600,000 back in July. This is significantly lower than the median home price of $737,000 in October 2007.  The number of homes sold has increased dramatically from as few as 191 in February 2008 to as many as 515 homes sold during the month of October 2008.

Since this summer, the number of homes for sale in San Jose has fallen but it’s still up on a year over year basis. As of October 2008, the number of homes for sale in San Jose was over 3,537 compared to a high of 3,951 homes for sale in July of this year. In October 2007, there were only 3,129 homes for sale.

The increase in the number of sales and the decrease in the median home price can be credited to the fact that banks have lowered the asking prices for foreclosures they are trying to sell. Currently, foreclosures make up a large percentage of monthly home sales and these have caused the median home price to drop. An increase in the number of homes for sale, similar to what we saw over the summer, also caused a decrease in home prices in most cases.

So, the question in everyone’s mind is “have we hit the bottom?” The answer is No. Although, that depends on what type of house you want and where in San Jose you are looking to buy – which will be the subject of another article.

Please do keep in mind that the statistics above are from M.L.S Listings Inc, and account only the homes sold through this multiple listing service. These statistics are only for single family residences and do not take condominiums or other property types into account.

St. Louis real estate markets continue to suffer as a result of the economic recession that began in 2008.  Residential and commercial real estate markets remain slow, suffering from levels below those seen in 2007 and early 2008.  Although most real estate experts don’t expect to see significant improvements and recovery in the St. Louis real estate markets till the end of 2010 or early 2011, many experts are optimistic that the recent improvements in the lower-end housing markets and the extension of the federal first-time home buyer’s tax credit will spur activity throughout the St. Louis real estate market and provide the momentum it needs to begin a full recovery and return to normal levels.

According to the St. Louis Today, many realtors have noted a slump in the activity in the apartment real estate market, despite the downturn in home sales.  Vacancy rates for apartments rose slightly by 1 percent during 2009, and building owners have reported seeing more renters doubling up, moving in with family, or leaving altogether.  Realtors have also noticed many condominiums being converted to rental units, a practice which is expected to continue well into 2010.  However, St. Louis’s apartment real estate market did fare better than most other markets in the nation, posting a slight increase in average rent from $715 to $769 between October of 2008 and 2009, and only a slight increase in occupancy rates from 86.2 percent to 87.3 percent.  Nevertheless, many landlords and apartment managers are taking extra measures to keep tenants through the use of “resident satisfaction” programs while keeping maintenance and other costs low.

Despite recent struggles in the St. Louis real estate market, many real estate experts believe that the federal tax credit could be an influential factor in giving the St. Louis real estate market the momentum it needs to improve and move a step closer to recovery.  In the last weeks of November, realtors posted slight increases in home sales, attributed primarily to the expected deadline for the federal homebuyer’s tax credit.  However, since the tax credit was extended to for several more months, real estate experts are hopeful that it will continue to spur real estate activity.  Experts have also noted that affordable housing and low interest rates should also serve as major incentives to prospective buyers.

Despite continuing declines in median sales prices in New Haven, Connecticut, recent months have offered optimistic views of the future of the New Haven real estate market due to increasing home sales topping the previous year’s level during the same period.  Many real estate experts have attributed the federal tax credit for first-time homebuyers to the increase in sales.  However, realtors are also quick to point out that it is only the homes in the lower price ranges that are selling.  The luxury home market continues to struggle as it has experienced extremely sluggish activity over the past months.  With the federal tax credit about to expire though, many real estate experts are concerned whether the real estate in New Haven will continue to show the improvements it has made over the last few months.

The New Haven Register has reported how successful the federal tax credit for first time homebuyers has been in spurring activity in the New Haven real estate market.  Over the past few months, New Haven has experienced an increase in home sales, a 9 percent increase compared to that of the same period the year before.  1,517 homes sold last quarter in New Haven, an increase from the 1,390 sold during the same quarter in 2008.  Realtors have noted that most homebuyers are coming onto the market with more confidence and the desire to take advantage of the tax credit.  However, the median sales price in New Haven has declined to $299,297, a 13 percent decline from $344,175 a year before.  Almost all of the home sales consist of less expensive homes catering to first time, entry-level buyers.  Realtors continue to note that the more expensive homes are still struggling to find buyers.

On another note, the New Haven Register has also reported the recent improvements seen in the commercial real estate market.  New Haven has posted a vacancy rated of 10.6 percent, down from the 13.7 percent posted in the third quarter of 2008.  Realtors have reported an increase in the number of tenants looking for office space in New Haven over the past few months.  New Haven is known for having a fairly stable commercial real estate market due to a number of well established businesses and institutions such as Yale University.  However, just outside of New Haven, vacancy rates for commercial real estate have increased slightly, as most businesses tend to stay only in the business sector in the center of the city.

Located about half an hour south of Seattle, Tacoma has shown a stable number of home sales and median sales price over the past few months.  This has given real estate experts quite optimistic views of the Tacoma real estate market in the coming months since real estate levels in Tacoma have a tendency to drop sometime during the third and fourth quarters.  Home sales continue to be dominated by low-end homes, especially distressed properties that have previously been foreclosed on.  Home sales, median prices, and mortgage filings have increased very slightly over the past few months, giving many real estate experts hope that a full recovery for Tacoma real estate is near.

According to DQNews.com, the Seattle-Tacoma region has maintained stable home sales and median price rates, with some regions even posting slight increases.  This contrasts the tendency for the region to experience slight declines during this time period between August and September.  Since 1994, the region has tended to experience on average an 11 percent decline in real estate sales between the months of August and September.  In September, a total of 3,794 new and resale houses and condos were sold in the region, one more sale than that of the previous month and a 5.5 percent gain over the 3,595 sales posted in September of 2008.  So far, the Seattle-Tacoma region has posted year over year rises in home sales for three consecutive months, after 37 consecutive months of annual sales declines.  In September, about 18.3 percent of all home sales in the region consisted of sales priced below $200,000, a 9 percent increase from August.  The median sales price for all new and resale houses and condos remained at $300,000, the same from the previous month, but down 6.2 percent from the year before.

The News Tribune has reported an even more positive outlook on the real estate in Tacoma, saying that many realtors are actually posting significant gains in home sales over the past few weeks in Pierce County.  Most realtors say that the extension of the federal tax credit for first time homebuyers has played a major role in enticing people to invest in Tacoma real estate.  Many real estate experts believe there will be another spike in home sales in the coming weeks as the federal tax credit expiration date comes closer.

Although the Anchorage real estate market has declined as a result of the economic recession that began in 2008, the declines are not nearly as large compared to that of the rest of the nation.  Foreclosure rates are up and home sales are down, but many real estate experts still consider Anchorage to have a real estate market filled with prosperity.  However, subprime loans are not considered to be the cause of the economic struggles in Anchorage, but it is rather job security that is the major concern.  Most mortgages that ended in foreclosure were caused by a previous job loss rather than the loan being risky.  Nevertheless, many experts still believe that the Anchorage real estate hasn’t hit bottom yet and most likely won’t be ready for a full rebound until 2010 or most likely 2011.

According to the Anchorage Daily News, Alaska foreclosure rates have risen by 36 percent, but experts are quick to point out that that is only relative, with 0.88 percent being the percentage of homes actually foreclosed on.  0.88 percent ranks Alaska with the third lowest foreclosure rate, compared to the 7.32 percent foreclosure rate in Florida.  Almost all of the foreclosures were in Anchorage and the most populated areas of the valley.  Currently, real estate experts are unsure of the future of the Anchorage real estate due to the high volatility of the region’s economy.  Job security continues to be the major concern in the area.  So far, home prices have remained stable and declines in employment rates have slowed.  Although signs of bottom have not been verified yet, most experts believe that the real estate in Anchorage won’t fully recover in the near future.

The Anchorage Daily News also reported that the commercial real estate in Anchorage is also faring significantly better than other real estate markets across the nation.  The Anchorage office vacancy rate is only 7 percent, compared to the 12.7 percent posted for the national commercial property vacancy.  The Anchorage retail vacancy is only 4 percent compared to the national average of 7.5 percent.  The industrial vacancy for Anchorage is 3 percent, significantly lower than the 9.6 percent average for the nation.  Although these numbers are high compared relatively to past Anchorage levels, Anchorage has not suffered as much as most other real estate markets throughout the nation.

Located in Orange County in Southern California, the Mission Viejo real estate market has shown promise for the future due to an increase in home sales over the past few months.  Much of Southern California has shown positive signs for the recovery of the real estate market in the near future, with home sales increasing, even though median home prices have been steady at below-average rates.  However, issues such as the financial stability of the state of California and job security are major concerns and obstacles to the full recovery of the Mission Viejo real estate market, as well as the economy of California as a whole.

According to DQNews.com, Southern California show an improving real estate market despite median prices that are still below previous years’ levels.  In September of 2009, about 21,539 new and resale houses and condos were sold in Southern California, which as up 0.2 percent from 21,502 in the previous month and up 5.1 percent from 20,497 in the previous year.  The increase in home sales is due primarily to the fact that housing in the region is much more affordable now because of a large inventory of foreclosed or distressed properties for sale, offering prospective home-buyers the “bargain” rates that many are looking for.  However, the median home price for new and resale houses and condos has declined by about 10.9 percent from $308,500 in September of 2008 to $275,000 in September of 2009.  Many real estate experts expect foreclosure rates to continue to increase during the next few months and that consistent and significant signs of recovery aren’t likely to show until well into 2010.

The Orange County Guide to Local Real Estate has reported the improvements in the Anaheim real estate market, as well as the Orange County real estate market as a whole.  They have reported that home sales in the region increased by about 7.2 percent in July 2009, mortgage applications have increased, and that interest rates have declined to hit a five-week low.  Mission Viejo posted that 102 homes of the 145 homes listed were sold in September of 2009, an improvement over the 94 sold of the 126 homes listed in September of 2008.  However, the average sales price has declined during the same period from $538,496 to $468,417.  Many real estate experts believe that the Mission Viejo real estate market is gaining the momentum in needs to make a full recovery.