California Real Estate Market Facts
Calif. median home price – July 08: $350.760 (Source: California Association of Realtors [C.A.R.])
Calif. highest median home price by C.A.R. region July 08: Santa Barbara So. Coast $940,000 ( Source: C.A.R.)
Calif. lowest median home price by C.A.R. region July 08: High Desert $177,330 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index – Second Quarter 08: 48 percent (Source: C.A.R.)
Mortgage rates – week ending 08/21/08 30-yr. fixed: 6.47% Fees/points: 0.7% 15-yr. fixed: 6% Fees/points: 0.7% 1-yr. adjustable: 5.29 % Fees/points: 0.5% (Source: Freddie Mac)
More homeowners than ever are selling at a loss!
The real estate Web site Zillow.com has reported that in the 12 months that ended June 30, nearly 25% of all homes sold nationwide fetched less than sellers originally paid. Other interesting facts from this report showed:
A. In Merced, Calif., 63% of homes sold during the past 12 months brought in less than what the owner paid. Prices there have fallen 40% over the past 12 months and 56% from their 2006 peak.
B. About 63% of sellers in Stockton, Calif., lost money during the same period, 60% in Modesto, Calif., 55% in Las Vegas and 38% in Phoenix.
C. In Merced, 74.9% of sellers took a loss when they sold during the three months ended June 30 compared with just 28.7% during the same period in 2007.
What happened to all the home buyers in 2006 who thought they had gotten a great home buys when compared to the 2005 homes sale prices? From the same Zillow report we can now see the real answer to this question:
In Stockton, Calif., 2006 buyers now owe a median of nearly $171,000 more than their homes are worth. In Salinas, Calif., 2006 buyers now have median negative equity of $161,000, and in Merced, the figure is nearly $160,000.
Though not in in the report, I would venture to say that one would be hard pressed to find any 2007 home buyers whose homes are worth more today, that what they paid! San Diego California investment property sales
CALIFORNIA HOME FORECLOSURE SALES JUMP 22.5%
ForeclosureRadar a website that tracks every California foreclosure today issued its California Foreclosure Report for July 2008. Sales at foreclosure auction jumped dramatically in July, increasing by more than $2 Billion incombined loan value to $12.55 Billion. This represents more than 1,300 properties being taken to auction per business day, up from 415 per day one year ago. Notices of Default declined for the third straight month. The total number of properties that are still actively scheduled for auction increased to 64,598 at the end of July, up from 59,973 at the end of June, and 53,793 at the end of May. This indicates that further increases in foreclosuresales are still likely near term, despite the declining number of defaults. San Diego California income propertyThink California Real Estate will turnaround this year? Think Again!
According to the Los Angeles County Economic Development Corp. report released last week, California home prices and sales volumes will also slide into 2009, while some areas of the state experience an even more prolonged downturn.
Jack Kyser, chief economist of the Los Angeles County Economic Development Corp, said:
"The housing pains there will remain, probably until 2010."
The statewide median home price last month was down about 17 percent from a year earlier and 5 percent from December, according to DataQuick Information Systems. The statewide median price peaked last spring.
In San Diego, most insiders will agree that the top of the housing market was the summer of 2005.