C.A.R. Newsline
Wed, November 25, 2009 1:06:56 PMFrom: CALIFORNIA ASSOCIATION OF REALTORS(R) <newsletters@mail2.carwebs.org>Add to Contacts
To: JUNE DEE STONE <junedee@ymail.com>
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Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®



Case-Shiller index improves for second consecutive quarter
Home prices improved in the third quarter of 2009, posting their second quarter-over-quarter gain in three years, according to the S&P/Case-Shiller U.S. National Home Price Index, released yesterday.

The index, which covers all nine U.S. census divisions, recorded an 8.9 percent decline in the third quarter of 2009 compared with the third quarter of 2008, but an improvement over the 14.7 percent decline in the second quarter of the year. The 10-City and 20-City Composites recorded annual declines of 8.5 percent and 9.4 percent, respectively. These two indices generally have seen improvements in their annual rates of return every month since the beginning of the year.

“We have seen broad improvement in home prices for most of the past six months,” said David M. Blitzer, chairman of the Index Committee at Standard & Poor’s. “The U.S. National Composite rose by 3.1 percent in both the second and third quarters of 2009. Both the 10-City and 20-City Composites posted their fifth consecutive monthly increase with September’s report. However, the gains in the most recent month are more modest than during the seasonally strong summer months.”

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Builder confidence in the market for newly built, single-family homes remained at 17 in November, unchanged from October, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The component gauging home sales expectations for the next six months rose two points in November to 28, compared with October. Many of the responses to the HMI were received prior to congressional action to extend and expand the federal tax credit for home buyers.

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California home sales rose 1 percent in Oct.
Home sales increased 1 percent in October in California compared with the same period a year ago, while the median price of an existing home declined 3.2 percent, C.A.R. reported today.

Closed escrow sales of existing, single-family detached homes in California totaled 562,400 in October at a seasonally adjusted annualized rate. Statewide home resale activity increased 1 percent from the revised 557,050 sales pace recorded in October 2008. Sales in October 2009 increased 5.9 percent compared with the previous month.

The median price of an existing, single-family detached home in California during October 2009 was $297,500, a 3.2 percent decrease from the revised $307,210 median for October 2008, C.A.R. reported. The October 2009 median price rose 0.3 percent compared with September’s $296,610 median price.

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Consumer confidence rises in November
The Consumer Confidence Index rose in November to 49.5 (1985=100) compared with 48.7 in October, the Conference Board reported yesterday. The Present Situation Index remained relatively unchanged, declining to 21 in November from 21.1 in October and the Expectations Index increased to 68.5 from 67 last month, according to the report.

“Consumers' assessment of present-day conditions was virtually unchanged and remains at levels not seen in 26 years,” said Lynn Franco, director of The Conference Board Consumer Research Center. “The moderate improvement in the short-term outlook was the result of a decrease in the percent of consumers expecting business and labor market conditions to worsen. Consumers also remain quite pessimistic about their future earnings, a sentiment that will likely constrain spending during the holidays.”
Consumers' assessment of current conditions also was nearly unchanged in November, with those claiming business conditions are "bad" decreasing to 45.7 percent in November from 46.7 percent the previous month, while those claiming conditions are "good" increased to 8.1 percent in November compared with 7.8 percent in October. Consumers' appraisal of the job market also was slightly less favorable, and their short-term outlook also was slightly more pessimistic, according to the report.

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First-time home buyers set new record
The number of first-time home buyers rose to 47 percent of all home sales during the past year, up from 41 percent last year, according to NAR’s 2009 Profile of Home Buyers and Sellers. The increase marked the highest on records dating back to 1981. The previous high was 44 percent in 1991.

“These buyers are critical to housing and a general economic recovery because the market always heals from the bottom up – they absorb inventory, free existing owners to make a trade and stimulate related goods and services,” said Paul Bishop, NAR vice president of research.


Home buyers identified the most important services agents offer as helping find the right house, and negotiating sales terms and price. The most commonly cited benefits of using an agent were helping buyers understand the process, pointing out unnoticed features or faults, negotiating better contract terms, and providing a better list of service providers, according to the report.

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Percentage of homes with negative equity declines
The percent of single-family homes with negative equity declined 21 percent in the third quarter, down from 23 percent in the second quarter, as home values stabilized in the short term and a greater number of underwater homeowners lost their homes to foreclosure, according to the third quarter Zillow Real Estate Market Reports.

Year-to-year home values declined 6.9 percent in the third quarter, the 11th consecutive quarter of year-to-year declines, according to the Zillow Home Value Index. However, the rate of year-to-year decline shrank for the third consecutive quarter.

Foreclosure resales remained high, accounting for 21.4 percent of all U.S. home sales in September, and represented the majority of sales in several MSAs including Merced, Calif., 74.2 percent; Stockton, Calif., 69.3 percent; Madera, Calif., 68.7 percent; and El Centro, Calif., 68.1 percent. Additionally, 26.9 percent of home sales nationwide sold for less than what the seller originally paid, according to the report.

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C.A.R. Green Tip of the Week: Green greetings
This holiday season, try online greeting cards or opt for recycled paper and cards that get second lives in the garden. Some cards are infused with seeds, which recipients can plant. Visit www.greenfieldpaper.com to learn more about these and other eco-friendly greeting cards.

For more green real-estate-related tips and discussion, visit C.A.R.’s green blog blogs.car.org and C.A.R.’s Green Web site green.car.org

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Fast Facts
Calif. median home price - October 09: $297,500 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region October 09: Santa Barbara So. Coast $970,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region October 09: High Desert $118,580 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Third Quarter 2009: 64 percent (Source: C.A.R.)
Mortgage rates - week ending 11/25/09 30-yr. fixed: 4.78% Fees/points: 0.7% 15-yr. fixed: 4.29% Fees/points: 0.6% 1-yr. adjustable: 4.35% Fees/points: 0.7% (Source: Freddie Mac)

C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide.

Edited by: Mark Giberson, markg@car.org

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phone (213) 739-8200; fax (213) 480-7724

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phone (916) 492-5200; fax (916) 444-2033

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