RESALE HOME INVENTORY DECREASING AS SALES INCREASE
THE ECONOMY: Bonds and home loan rates began the week facing a tough inflation hurdle when the Producer Price Index (PPI) came in at the biggest year-over-year increase in 27 years. The Core PPI, which excludes volatile food and energy prices, also came in at the biggest year-over-year increase since 1991. However, the recent drop in oil prices kept the topic of inflation from being too high a hurdle for Bonds with home loan rates managing to leap to some of their best levels in weeks.
MARKET ACTIVITY: Home re-sales are up higher than in the last 6 months. In the Western states increased activity is up 9.7%. Much of this activity has been in foreclosure and short sale activity, possibly with fence sitters and investors sensing that the downward pricing of homes is flattening out.
LOAN RATES: Bonds and home loan rates on 8/25/08 received an overall slightly better report with inventory down and more sales are occurring. The inventory of single family homes improved to a 10.6 months supply from 11.0 in June, which also suggests falling prices are helping to stimulate demand.
30 year fixed rates are around 6.44% and 15 year fixed rates around 5.94%. "A list" borrowers need to have a FICO score in the 700's and most lenders are requiring 20% down on single family residences and 30% on investment loans.
TO KEEP IN MIND: As a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.
*By Pamela Horton, 9/01/08, sources Sandstone Financial, CAR.
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COASTAL AREAS SALES DATA AND DISTRESS SALES STATISTICS FOR:
Corona del Mar, Costa Mesa, Dana Point, Laguna Beach, Laguna Niguel, Newport Beach, Newport Coast, San ClementeActive
Listings = 2,528, with Bank Conditions = 318
In Escrow Listings = 455, with Bank Conditions = 137
Sold from 01/01/08 = 1,853, with Bank Conditions = 365
*MLS 8/30/08
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COASTAL ZIP CODES BY MEDIAN SALES PRICE FOR JULY 2007 COMPARED TO JULY 2008:
% Change is from the same month last year.
City - # Sold - Median Sale Price - % change from 2007:
Balboa Island - 92662 - 1 - $6,184,000 - 264.3%
Capistrano Beach - 92624 - 2 - $568,000 - minus 46.2%
Corona del Mar - 92625 - 12 - $1,680,000 - minus 25.3%
Costa Mesa - 92626 - 26- $540,000 - minus 23.9%
Costa Mesa - 92627 - 19 - $507,000 - minus 33.4%
Dana Point - 92629 - 19 - $879,000 - minus 20.1%
Laguna Beach - 92651 - 19 - $1,800,000 - 3.4%
Laguna Niguel - 92677 - 42 - $720,000 - minus 12%
Newport Beach - 92660 - 25 - $1,270,000 - minus 12.4%
Newport Beach - 92661- 3 - $4,448,000 - 76%
Newport Beach - 92663 - 13 - $1,669,000 - minus 27.4%
Newport Coast - 92657 - 7 - $2,162,000 - minus 19.8%
San Clemente - 92672 - 25 - $725,000 - minus 15.4%
San Clemente - 92673 - 25 - $825,000 - minus 1.2%
*Sales information provided by DQNews/LATimes, 08/25/08.
