LOS ANGELES (Feb. 15) – California home sales declined from both the prior month and year in January, according to data from the CALIFORNIA ASSOCIATION OF REALTORS^® (C.A.R.).  The median price also was lower, primarily due to a sales increase in the distressed market.

“Record low interest rates and favorable home prices continue to offer opportunities for potential home buyers,” said C.A.R. President LeFrancis Arnold.  “If the overall economy continues its recent upward trend, we should see an improvement in the housing market throughout the year.”

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 517,740 in January, according to information collected by C.A.R. from more than 90 local REALTOR^® associations and MLSs statewide.  January’s sales were down 0.6 percent from December’s 520,940 pace and down 5.7 percent from the revised 548,760 sales pace recorded in January 2011.  The statewide sales figure represents what would be the total number of homes sold during 2012 if sales maintained the January pace throughout the year.  It is adjusted to account for seasonal factors that typically influence home sales.

The statewide median price of an existing, single-family detached home fell to $268,280 in January, down 6.7 percent from $285,920 in December.  The median price also dropped 3.9 percent from the revised $279,220 median price recorded in January 2011.

“The decline in the January median home is largely a reflection of an increase in the share of distressed home sales,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “Seasonal factors in the non-distressed market also played a role in the softening of the median home price, as prices typically decline in the non-peak home buying season.”

Other key facts of C.A.R.’s January 2012 resale housing report include:

·         California’s housing inventory rose in January, with the Unsold Inventory Index for existing, single-family detached homes increasing to 5.5 months in January, up from 4.1 months in December but down from the 6.8-month supply in January 2011.  The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

·         Interest rates continued their downward trend in January.  Thirty-year fixed-mortgage interest rates averaged 3.92 percent during January 2012, down from 4.76 percent in January 2011, according to Freddie Mac.  Adjustable-mortgage interest rates averaged 2.76 percent in January 2012, compared with 3.25 percent in January 2011.

·         The median number of days it took to sell a single-family home edged up to 61.9 days in January 2012 and was essentially unchanged from the 61.8 days for the same period a year ago.

·         View Unsold Inventory by price range.

Note:  The County MLS median price and sales data in the tables are generated from a survey of more than 90 associations of REALTORS^® throughout the state, and represent statistics of existing single-family detached homes only.  County sales data are not adjusted to account for seasonal factors that can influence home sales.  Movements in sales prices should not be interpreted as changes in the cost of a standard home.  Median prices can be influenced by changes in cost, as well as changes in the characteristics and the size of homes sold.  Due to the low sales volume in some areas, median price changes in December may exhibit unusual fluctuation.

Leading the way…^® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS^® (www.car.org) is one of the largest state trade organizations in the United States, with more than 155,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

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January 2012 County Sales and Price Activity
(Regional and condo sales data not seasonally adjusted)

January 2012	Median Price of Existing Single-Family Homes							Sales
State/Region/County	January 2012	December 2011		January 2011		MTM% Chg	YTY% Chg	MTM% Chg	YTY% Chg
California Single-family (SAAR)	$268,280	$285,920		$279,220	r	-6.2%	-3.9%	-0.6%	-5.7%
California Condo/Townhomes	$215,690	$225,270		$226,840	r	-4.3%	-4.9%	-23.3%	1.2%
Los Angeles Metropolitan Area	$256,000	$265,830		$268,940		-3.7%	-4.8%	-23.1%	-1.8%
Inland Empire	$169,280	$172,430		$173,720		-1.8%	-2.6%	-20.0%	2.9%
San Francisco Bay Area	$415,120	$455,750		$457,470	r	-8.9%	-9.3%	-27.1%	4.4%
San Francisco Bay Area
Alameda	$395,830	$450,000		$435,110		-12.0%	-9.0%	-26.4%	10.7%
Contra-Costa (Central County)	$476,470	$518,560		$565,790		-8.1%	-15.8%	-40.2%	6.9%
Marin	$694,440	$693,880		$657,890		0.1%	5.6%	-11.6%	35.6%
Napa	$344,740	$344,830		$313,890		0.0%	9.8%	-18.8%	2.2%
San Francisco	$561,270	$633,580		$597,760		-11.4%	-6.1%	-41.4%	-20.1%
San Mateo	$578,500	$595,000		$575,000	r	-2.8%	0.6%	-32.8%	-3.6%
Santa Clara	$495,000	$535,000		$524,000	r	-7.5%	-5.5%	-26.5%	-8.4%
Solano	$184,440	$190,200		$192,170		-3.0%	-4.0%	-21.2%	19.7%
Sonoma	$326,920	$325,260		$338,090		0.5%	-3.3%	-16.8%	26.2%
Southern California
Los Angeles	$290,890	$306,950		$305,570	r	-5.2%	-4.8%	-25.6%	-5.9%
Orange County	$483,510	$484,630		$511,590		-0.2%	-5.5%	-23.4%	-4.9%
Riverside County	$196,050	$203,650		$197,550		-3.7%	-0.8%	-21.4%	3.2%
San Bernardino	$129,920	$128,450		$138,040		1.1%	-5.9%	-17.4%	2.5%
San Diego	$350,680	$359,930		$370,100		-2.6%	-5.2%	-26.9%	15.0%
Ventura	$386,870	$391,060		$411,760		-1.1%	-6.0%	-25.5%	5.1%
Central Coast
Monterey	$280,000	$275,000		$251,850	r	1.8%	11.2%	-23.1%	-8.2%
San Luis Obispo	$363,640	$366,670		$342,450		-0.8%	6.2%	-37.5%	-15.3%
Santa Barbara	$356,000	$429,410		$362,500	r	-17.1%	-1.8%	-19.8%	46.6%
Santa Cruz	$422,500	$475,000		$425,000		-11.1%	-0.6%	-34.6%	10.6%
Central Valley
Fresno	$131,070	$140,480		$136,020		-6.7%	-3.6%	-27.2%	-2.3%
Kern (Bakersfield)	$130,000	$135,000	r	$127,000		-3.7%	2.4%	-11.4%	-4.0%
Kings County	$145,710	$130,560		$147,140		11.6%	-1.0%	-21.0%	8.5%
Madera	$113,750	$106,000		$146,150		7.3%	-22.2%	-24.4%	-53.0%
Merced	$112,000	$106,110		$100,620		5.6%	11.3%	-28.7%	-8.9%
Placer County	$258,210	$255,560		$261,930		1.0%	-1.4%	-21.3%	3.5%
Sacramento	$162,290	$162,820		$171,690		-0.3%	-5.5%	-22.8%	4.0%
San Benito	$260,000	$259,200		$279,000	r	0.3%	-6.8%	-8.9%	8.5%
Tulare	$116,670	$127,660		$113,330		-8.6%	2.9%	-22.2%	16.7%
Other Counties in California
Amador	$135,000	$142,220		$160,000		-5.1%	-15.6%	-28.0%	-10.0%
Butte County	$194,000	$198,750		$180,000		-2.4%	7.8%	-24.8%	27.4%
Humboldt	$220,000	$227,630		$244,790		-3.4%	-10.1%	-20.9%	-1.4%
Lake County	$118,570	$114,170		$107,500		3.9%	10.3%	-5.5%	-6.8%
Tuolumne	$147,140	$156,670		$153,750		-6.1%	-4.3%	-34.8%	28.6%
Mendocino	$190,000	$204,170		$225,000		-6.9%	-15.6%	-28.8%	-11.9%
Shasta	$151,670	$148,570		$152,140		2.1%	-0.3%	-9.7%	33.1%
Siskiyou County	$123,330	$131,250		$145,000		-6.0%	-14.9%	-30.8%	28.6%
Tehama	$110,000	$132,000		$140,000		-16.7%	-21.4%	-26.1%	54.5%

January 2012 County Unsold Inventory and Time on Market
(Regional and condo sales data not seasonally adjusted)

January 31, 2012                                                                            Sean Trambley 202-225-6131

ICYMI: NPR: Freddie Mac Betting Against Struggling Homeowners

In Case You Missed It…

Today, National Public Radio exposed that taxpayer-owned mortgage giant Freddie Mac has invested billions of dollars betting that struggling U.S. homeowners won’t be able to refinance their mortgages at today’s lower rates.

A joint investigation by NPR and ProPublica, an independent, nonprofit newsroom, found a major conflict of interest between Freddie Mac’s mission of helping homeowners and its investment in mortgage securities:

Following a joint investigation by NPR and ProPublica, Chris Arnold wrote,

“Freddie Mac, a taxpayer-owned mortgage company, is supposed to make homeownership easier. One thing that makes owning a home more affordable is getting a cheaper mortgage.

…

“But public documents show that in 2010 and 2011, Freddie Mac set out to make gains for its own investment portfolio by using complex mortgage securities that brought in more money for Freddie Mac when homeowners in higher interest-rate loans were unable to qualify for a refinancing.

“Those trades ‘put them squarely against the homeowner,’ [the major bond trading and investment firm] PIMCO’s [Scott] Simon says.”

“No wonder homeowners are fighting an uphill battle to refinance their mortgages: Freddie Mac has stacked the deck against them,” said Congressman Cardoza. “Freddie Mac is backed by taxpayers and obligated to help homeowners.  It is outrageous and simply unacceptable that Freddie Mac is profiting when those same struggling homeowners stay trapped in high-interest loans.” 

The NPR story continued, highlighting the problem many homeowners are facing,

“Millions of homeowners wish they could refinance, but their lenders tell them they can’t qualify for today’s low rates because of tight rules. Freddie Mac is one of the gatekeepers with the power to set those rules, and lately, it has been saying no more often to homeowners.”

In the State of the Union address earlier this week, President Obama pushed for major legislation that would allow all homeowners with mortgages backed by Fannie Mae and Freddie Mac to refinance at the current historically-low market rate (around 4%), echoing Congressman Cardoza’s Housing Opportunity and Mortgage Equity (HOME) Act and his repeated calls for a massive housing refinance initiative.  The President projected this far-reaching refinancing initiative could help responsible homeowners save nearly $3,000 a year on their mortgage.

Chris Mayer, an economist and Senior Vice Dean of the Columbia University Business School, was quoted in the NPR story advocating a major housing re-financing push from the federal government:

“‘A widespread refinancing program would have many benefits — not only helping the economy and putting tens of billions of dollars back in consumers’ pockets, the equivalent of a very long-term tax cut,’ he says.

“‘It also is likely to reduce foreclosures and benefit the U.S. government by having fewer losses that they have to pay,’ Mayer adds.

“In the long term, he says, allowing more Americans to refinance would help taxpayers as well as mortgage giants Freddie Mac and Fannie Mae, because they would suffer fewer losses related to foreclosures. These inverse floater trades [risky portions of complex mortgage securities Freddie Mac has retained], however, give Freddie Mac a short-term incentive to resist such so-called ‘mass re-fi’ programs.”

Cardoza consulted with Professor Mayer when developing his (HOME) Act, which he first introduced in 2009.

Congressman Cardoza has long advocated far-reaching refinancing legislation to aggressively combat the housing crisis that continues to drag down the economic recovery.  His HOME Act would help up to 30 million struggling homeowners with mortgages backed by Fannie Mae or Freddie Mac to benefit from current historically low market interest rates and refinance for up to 40 years at a fixed single-digit rate. Refinancing would significantly lower the homeowner’s monthly mortgage payments, saving them money and stabilizing the housing market by preventing unnecessary foreclosures.

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Tracy Map

Course Description

DEPARTMENT OF REAL ESTATE FORUM

January 2012

COMPARATIVE STATISTICS

SUBDIVISIONS                  7 /1/11 – 12/31/11                    7 /1/10 – 121/31/10                                      %dif

Applications  for Public Report:

ENFORCEMENT            7 /1/11 – 12/31/11          7 /1/1- 12/31/10                                     %dif

License Denials                                    137                                           103                                             33%

Disciplinaty Actions                            510                                           466                                              9%

Desist & Refrain Orders                     110                                            104                                              6%

Investigative Audits                            298                                            269                                             11%

Bar Orders                                                 11                                            10

January 24, 2012                                                                                                       Sean Trambley 202-225-6131

Congressman Cardoza’s HOME Act Echoed in President’s State of the Union Speech

Housing plan allows all responsible homeowners to

refinance at current market rate

WASHINGTON, DC – This evening, President Obama introduced a new housing plan that will allow all homeowners who are current on their payments to be able to refinance their mortgage at the current historically low market rates, mirroring Congressman Dennis Cardoza’s (D-Merced) Housing Opportunity and Mortgage Equity (HOME) Act.

“If President Obama means what he says, I could not be more pleased,” said Congressman Cardoza.  “He must understand that the key is execution and cutting the red tape for struggling homeowners is essential.  He must implement this plan immediately in a simple and effective way.  People have waited far too long to be weighed down by any more bureaucracy.”

The President announced in his State of the Union speech that he will send Congress a plan that will allow responsible homeowners who are current on their payments to save $3k a year on their mortgage by refinancing at historically low interest rates.  The President is proposing to use part of a proposed bank fee to cover the cost of the refinancing plan, since some of the financial institutions helped cause the housing crisis from which borrowers and the economy are still trying to recover.

The President stated in his address,

“[M]illions of innocent Americans [have] seen their home values decline.  And while Government can’t fix the problem on its own, responsible homeowners shouldn’t have to sit and wait for the housing market to hit bottom to get some relief”.  

In 2009, Congressman Cardoza first introduced the HOME Act (H.R. 383), which would help up to 30 million struggling homeowners with mortgages backed by Fannie Mae or Freddie Mac to benefit from current historically low market interest rates and refinance for up to 40 years at a fixed single-digit rate. This would significantly lower the homeowner’s monthly mortgage payments, resulting in fewer foreclosures, while stabilizing the housing market and the national economy.

Congressman Cardoza represents California’s Central Valley, which has been ground zero for the housing crisis.  In some communities, over 53 percent of mortgages are underwater. 70,000 people have lost their homes to foreclosure since the crisis began in 2007.

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California pending home sales lower in December; distressed sales rise as lenders push through more REOs, short sales, C.A.R. reports

LOS ANGELES (Jan. 24) – The CALIFORNIA ASSOCIATION OF REALTORS^®’ (C.A.R.) Pending Home Sales Index dropped as expected between November and December, tracking the annual seasonal slowdown.  However, the index was higher than a year ago for the eighth straight month, a trend that bodes well for the start of the spring home-buying season.  C.A.R. also reported that sales of distressed properties increased in December, as lenders pushed to close REOs and short sales to move them off their balance sheets before the end of the year.

Pending home sales:

C.A.R.’s Pending Home Sales Index (PHSI)* fell from a revised 108.7 in November to 91.6 in December, based on signed contracts.  The index was up from the revised 82.5 recorded in December 2010, marking the eighth consecutive month that pending sales rose from the previous year.  The decline follows a normal seasonal drop that usually occurs in November and December.  Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.

Distressed housing market data:

• Equity sales made up 52.7 percent of home sales in December, down up from 55.1 percent in November but up from 51.7 percent in December 2010.
• The total share of all distressed property types sold statewide rose to 47.3 percent in December, up from November’s 44.9 percent but down from 48.3 percent in December 2010.
• Of the distressed properties sold statewide in December, 22.2 percent were short sales, up from the previous month’s share of 21 percent and up from last December’s share of 19.6 percent.
• The share of REO sales rose in December to 24.6 percent, up from November’s 23.5 percent, but down from the 28.3 percent recorded in December 2010.

Multimedia:

• View a video of C.A.R. Chief Economist Leslie Appleton-Young discussing highlights of the December existing home sales and price report, which was released Jan. 17.
• View a chart of closed housing sales by sales type.
• View a chart of pending sales compared with closed sales.
• View a chart of the historical trend in the share of equity sales compared with distressed sales.
• View a chart of housing supply for REOs, short sales, and equity sales.

Share of Distressed Sales to Total Sales
(Single-family)

Single-family Distressed Home Sales by Select Counties
(Percent of total sales)

**Note:  C.A.R.’s pending sales information is generated from a survey of more than 70 associations of REALTORS^® and MLSs throughout the state.  Pending home sales are forward-looking indicators of future home sales activity, offering solid information on future changes in the direction of the market.  A sale is listed as pending after a seller has accepted a sales contract on a property.  The majority of pending home sales usually becomes closed sales transactions one to two months later.  The year 2008 was used as the benchmark for the Pending Homes Sales Index.  An index of 100 is equal to the average level of contract activity during 2008.

Leading the way…^® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS^® (www.car.org) is one of the largest state trade organizations in the United States, with 155,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

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January 23, 2012                                                                                                 Sean Trambley 202-225-6131

Congressman Cardoza Calls on President Obama to Address Housing Crisis in State of the Union Speech

Continues Push for far-reaching mortgage refinance program,

permanent director of the FHFA

WASHINGTON, DC – Today, Congressman Dennis Cardoza (D-CA) called on President Obama to address the housing crisis in tomorrow’s State of the Union speech before, and include in his agenda for 2012 a far-reaching mortgage refinancing program such as Cardoza’s proposal, the Housing Opportunity and Mortgage Equity (HOME) Act.

In 2009, Congressman Cardoza first introduced the HOME Act (H.R. 383), which would help up to 30 million struggling homeowners with mortgages backed by Fannie Mae or Freddie Mac to benefit from current historically low market interest rates and refinance for up to 40 years at a fixed single-digit rate. This would significantly lower the homeowner’s monthly mortgage payments, resulting in fewer foreclosures, while stabilizing the housing market and the national economy.

“Simply put, none of the current housing programs that President Obama has instituted have succeeded in stemming the tide of foreclosures still dragging down our country.  People continue to suffer as their communities are devastated by the housing crisis, with no relief in sight,” said Congressman Cardoza.  “We need bold leadership from the President on this crisis.”

Congressman Cardoza represents California’s Central Valley, which has been ground zero for the housing crisis.  In some communities, over 53 percent of mortgages are underwater. 70,000 people have lost their homes to foreclosure since the crisis began in 2007.

Earlier this month, Federal Reserve Chairman Ben Bernanke released a report reiterating Congressman Dennis Cardoza’s (D-CA) longstanding argument that bold, far-reaching action is needed to stem the housing crisis and spur economic recovery.

According to Bloomberg News, the Fed’s report concluded,

“A policy of no action will lengthen the housing slump, generate higher costs to the economy, push home prices lower and prolong ‘downward pressure on the wealth of current homeowners and the resultant drag on the economy at large.’”

Also echoing Congressman Cardoza’s calls to address the housing crisis, Ezra Klein of the Washington Post wrote a column calling for President Obama to tackle the housing crisis by enacting a far-reaching mortgage refinancing program.  Klein, a nationally syndicated columnist, argued that the President should listen to the advice of Glenn Hubbard, who served as President George W. Bush’s chief economist:

“Hubbard is an advocate for using Fannie Mae and Freddie Mac to set off a nationwide wave of mortgage refinancing. In a paper co-authored with Columbia economist Christopher Mayer, Hubbard estimates that more than 75 percent of the homeowners with 30-year mortgages backed by Fannie or Freddie are paying interest rates higher than 5 percent. But for the past two years, interest rates have been closer to 4 percent. That means tens of millions of Americans are paying more than they need to every single month.”

….

“[These] homeowners represent one of the president’s few remaining opportunities to help a substantial number of Americans. That’s because a major push on refinancing is one of the few policies the Obama administration could accomplish without the help of Congress.”

Congressman Cardoza has also repeatedly called on the President to appoint a permanent director to the Federal Housing Finance Agency (FHFA) to replace Acting Director Edward DeMarco.  The FHFA, as the conservator of Fannie Mae and Freddie Mac, has the statutory authority to institute a far-reaching mortgage refinancing program, similar to Cardoza’s HOME Act, which could aid up to 30 million homeowners.

“Mr. DeMarco has proved himself incapable or unwilling to aggressively combat the housing crisis,” said Congressman Cardoza.  “It is time for the President to step up and nominate a new Director who will use his existing authority to bring relief to millions of homeowners nationwide.  I will be listening intently tomorrow to President Obama and hope he heeds my call to act boldly and decisively.”

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Hello all!

The January edition of Property Lines has just been released.  Take a look to see what’s happening in your area.