Burbank Real Estate Blog

New home sales fell 12.4 percent in July to a record low 276,000 unit annual rate.

As with existing home sales , all areas of the country felt the decline.  Supplies are up to 9.1 months from June's 8.0 months.

New home prices are showing signs of weakness as the median price is down 6.0 percent to $204,000 for a - 4.8 percent year-on-year comparison. The median price is the lowest since 2003.

As I mentioned in yesterday's existing home sales report, the carnage was felt across the country and it will be some time before we see a more normalized real estate market.

The California Association of Realtors (C.A.R. ) reported Tuesday that the median home price of existing, single-family homes in California rose 10.4 percent in July compared with the year prior and home sales declined 20.8 percent.

What's interesting and somewhat surprising is that the year-over-year statewide median home price posted its ninth consecutive gain and seventh consecutive double-digit gain in July.  The median price of an existing, single-family detached home in California during July 2010 was $314,850, up 0.9 percent compared with June's $311,950 median price.

There are buyers out there, but they are cautious and are not willing to buy a property just for the sake of becoming homeowners.  As important as finding the right property is, many buyers today want value for their money and are looking very closely at the numbers-pending home sales, current active listings and recent closed escrows-in order to make informed decisions.

Lending has been somewhat tight lately, so if lenders decide to open the lending gates in the next few months that will have a strong impact on the current rising inventories.

California real estate facts:

• Calif. median home price: July 2010: $314,850 (Source: C.A.R.)

• Calif. highest median home price by C.A.R. region July 2010: Santa Barbara So. Coast $871,250 (Source: C.A.R.)

• Calif. lowest median home price by C.A.R. region July 2010: High Desert $128,950 (Source: C.A.R.)

• Calif. First-time Buyer Affordability Index - Second quarter 2010: 64 percent (Source: C.A.R.)

• Mortgage rates: Week ending 8/19/2010 30-yr. fixed: 4.42 Fees/points: 0.7% 15-yr. fixed: 3.90% Fees/points: 0.6% 1-yr. adjustable: 3.53% Fees/points: 0.7% (Source: Freddie Mac)

Existing home sales posted the largest decline nationwide, down 27.2% from June and 25.5% from same period last year.  This is the lowest level in 15 years and to further add salt to the wound housing supplies went from 8.9 months to 12.5 months, the worst reading in 11 years.

What is very interesting and points to some strength is that median prices  were only down .2%  from June and .7%($182,600) from last year.  The reality is that with increased inventories and more short sales and foreclosures on the way, there will be pricing pressure in the months to come.

The carnage was felt across the country and very telling are the figures that foreclosures represented 22% of sales, while short sales made up another 10%.  Distressed sales will continue to plague homeowners that are hoping to sell in the coming months.

Here in the Burbank area we are seeing similar findings as our inventories have risen to between 5-6 months and prices were down 1.5% month over month in July.   We have to go back to jobs and the local economy for a glimpse into the future, but make no mistake that foreclosures and short sale properties will be with us for a few years. 

We may not officially be in a double dip, but the numbers are pointing to a significant amount of slowing.  Whether this will go up from this point or give us months of lackluster sales is hard to say, but it is all part of the housing market recovery process, which overall is a good thing and will lead us to a more stable housing market.

More to come tomorrow as the fun continues with New Home Sales data being reported.

Call me at 818-795-8474 or email me at ana@anaconnell.com  if you would like to schedule a free comparative home analysis for the sale of your home discuss sales in your neighborhood.

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• Existing Home Sales Plunge 27.2% to Lowest Level Since 1999 (dailyfinance.com)
• The Real Story Behind Existing Home Sales: It Was The Lowest Since 1996, And Inventory Is Now Sky-High (businessinsider.com)

The weekly economic news continues to point to weakness in jobs, the economy and the housing market.

The jobs market is less than optimal as many corporations continue to keep huge cash reserves and are not hiring, add to that the weakness in the economy, which of course is trickling down to the housing market and you have a current outlook that is dismal.  I would argue that when we do finally start to see the jobs recovery, then we'll see that effect trickle down to the economy, housing and hopefully lending that is not quite as tight as it is today.

Foreclosure activity increases 4 percent in July

Foreclosure filings - representing notices of default, scheduled auctions, and bank repossessions - increased 4 percent in July as compared with June, but the better news is that filings decreased almost 10 percent compared with the same period a year ago, according to RealtyTrac.

Properties receiving a notice of default increased 1 percent in July compared with June, but decreased 28 percent compared with July 2009.

Foreclosure auctions increased 2 percent in July compared with the prior month, while bank repossessions increased 9 percent during the same period, according to the report.

California accounted for 21 percent of the total number of properties receiving a foreclosure notice in July, a decrease of 3 percent from June and down 38 percent compared with July 2009.

Housing Market Index

The housing market index for August fell one point to 13 and is down nine points from a recovery peak of 22 in May.  This is the third month of decline and problems such as tight credit, inaccurate appraisals and competition from distressed properties continue to plague the market.

Existing home sales are due out tomorrow and new home sales are due out on Wednesday, both expected to come in lower.

On a local level we've seen the inventory here in the Burbank housing market continue it's upward spike as we're now at 5 months of inventory as compared with a 2-3 months supply early this year.

Burbank Real Estate Market-July 2010

• Homes listed for sale: 114
• Homes sold in September: 55
• Average home sale price: $502,049-down 1.5% from June 2010
  
• Average days on market: 63
• Pending sales:41
• Average selling price % of list price: 97.37%

Source: Southland Regional Association of Realtors

On the National news front:

New home sales rose 23.6% in June to a seasonally adjusted annual rate of 330,000 units from a revised rate of 267,000 units in May. A pace of 310,000 units, had been expected. On a year-over-year basis, sales of new homes have fallen 16.7%.

The Standard & Poor's/Case-Shiller 20-city housing price index - on a seasonally adjusted basis - rose 1.3% in May after a 0.9% increase in April. On a year-over-year basis, property values increased 4.6%, the largest gain since August 2006.

The consumer confidence index fell to 50.4 in July from an upwardly revised 54.3 in June. Economists had anticipated a reading of 51. The index was benchmarked at 100 in 1985, a year chosen because it was neither a peak nor a trough in consumer confidence.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending July 23 dropped 4.4%. Refinancing applications fell 5.9%. Purchase volume rose 2%.

Initial claims for unemployment benefits fell by 11,000 to 457,000 for the week ending July 24. Continuing claims for the week ending July 17 rose by 81,000 to 4.57 million.

The Commerce Department announced that gross domestic product - the total output of goods and services produced in the U.S. - increased at an annual rate of 2.4% in the second quarter of 2010. Economists had expected a slightly larger 2.5% increase. This follows a revised 3.7% pace of growth in the first quarter of 2010.

On the California news front:

Following the expiration of the federal home buyers tax credit, sales of existing, single-family homes in California fell 4.2 percent during the month of June compared with the prior year, according to the CALIFORNIA ASSOCIATION OF REALTORS®' (C.A.R.) June sales and price report.

The median price of existing homes in California rose 13.6 percent on a year-to-year basis to $311,950. The median price is the point at which half of homes on the market sell for more and half for less. The median home price in California rose in June on a year-to-year basis, in month-to-month comparisons the median price declined 3.8 percent, according to C.A.R.'s report. Despite the slight decline in month-to-month home sales, California's housing market continues to recover at a faster pace than the national housing market. Ok, not exceptional news but, at least we're better than the national average.

C.A.R. expects home sales to be lower in the second half of the year due to the absence of the federal home buyers tax credit, but sales should remain above the long-run average and be significantly higher than the trough in 2007.

Home prices continued to post some gains in June, due in large part to the lean inventory of homes for sale in many regions of the state. C.A.R.'s Unsold Inventory Index rose slightly to 4.8 months in June compared with 4.6 months in May and 4.2 months in June 2009. However, the number of homes for sale remains well below the long-run average of a 7.1-month supply. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

Local stats will be posted later in the week, but I can say that the jobs recovery will be the single component that will provide a meaningful impact on the housing market.  I know economists look at consumer demand, but it's hard to consume when you don't have a job. 

Upcoming on the economic calendar are reports on construction spending on August 2, pending home sales on August 3 and consumer credit on August 6.

Burbank home sales for April 2010 vs. March 2010:

· new listings down 13%

· days on market (DOM) no change at 63

·under contract or pending sales up 21.5%

· average list prices are up 3%

· average sold prices are up 3.7%

While this is month to month information, it does give us some insights into the current market trends.

Buyers are out there and are buying, as evidenced by the increase in pending sales. Current inventory levels present some challenges, so well priced properties are receiving multiple offers and prices are showing upward momentum.

Right now roughly 50-60% of our market is short sales.

Sellers that do not qualify for a loan modification or are unable to stay in their homes financially are actively pursuing short sales and this trend will continue for some time. What this means is that sellers that don't have to sell probably will sit on the sidelines and see if prices continue to stabilize or rebound.

 If you are thinking about a short sale, make sure you talk to a qualified real estate agent with short sale experience and your CPA, your attorney etc. in order to get a clear picture of the possible impacts to your credit and financial situation.

Burbank Monthly Real Estate Report: April 2010

Information is Believed To Be Accurate But Not Guaranteed

Southern California Multiple Listing Service

Burbank Monthly Real Estate Report: March 2010

Information is Believed To Be Accurate But Not Guaranteed

Southern California Multiple Listing Service

Hot real estate deals do exist in Burbank, who would have thought to see single family homes for under $400k?

Single family homes in Burbank for under $400,000:

• $379,000  2 bedroom, 1 bath 800 sq ft in a spacious 8,982 sq ft lot!

• $375,000 3 bedroom, 2 bath 1191 sq ft needs tlc!

• $399,000 2 bedroom, 1 bath 942 sq. ft. very cute, move in ready!

• $332,900 2 bedroom, 1 bath  827 sq. ft. updated, hardwood floors!

If you are interested in seeing these homes or others that may fit your criteria, call me, Ana Connell,  at 818-795-8474!

Over the last few years there has been alot of controversy concerning the fate of the Hollywood sign and the Cahuenga Peak land that surround it, so I thought I would provide an update with a bit of history.

Over the last few years there has been alot of controversy concerning the fate of the Hollywood sign and the Cahuenga Peak land that surround it,  so I thought I would provide an update with a bit of history.

The Hollywood sign is an international icon of the entertainment industry. I've always been a huge fan of the Hollywood sign, in large part due to the nostalgic symbolism.

It represents an era of larger than life personalities, opulent lifestyles, wonderful architecture and an amazingly complex town.

What's ironic, in light of the situation today, is that the sign originated as an advertising campaign for an upscale suburban housing development, known as "Hollywoodland".

It was selling the dream of home ownership and a lifestyle that some could only dream about. 

The area.... (please read on)..

I just found this post about home inspections and found lots of valuable information for sellers.  If you are thinking about selling your home you usually declutter, spruce up the front and back yards, but you don't think about the things that a home inspector will be looking for.

Buyers will ask for repair money on many of these items.

These great tips that will save you money when you are in escrow.

Here are the current stats for Burbank homes-active and pending sales:

Active - 109 Properties

Pending Sale - 76 Properties

Active and Pending - 185 Properties