Posts Tagged ‘Bay Area economy’

Oakland’s median sale price up 121% in the last four years

July 7, 2014

4248 Wilshire Blvd. in Oakland

 

http://blog.sfgate.com/ontheblock/2014/06/30/oaklands-median-sale-price-up-121-in-the-last-five-years/

Advertisements

not always early, but ALWAYS on time….MORTGAGE TIME!

March 10, 2014
MORTGAGE TIME
Mortgage Market News for the week of March 7, 2014
Compliments of:
Patrick Gardner
Mortgage Loan Officer
NMLS ID: 378888
415-423-1424
Email me
Visit my website

 


JOBS DATA AND UKRAINE
It was a volatile week in mortgage markets. Early in the week, rapidly changing conditions in Ukraine caused a great deal of movement in mortgage rates, but there was little net impact. Later in the week, stronger than expected labor market data was negative for mortgage rates, and rates ended the week higher.

Against a consensus forecast of 140K, the economy added 175K jobs in February, and the figures for the prior two months were revised a little higher. This took place, according to the Bureau of Labor Statistics, despite the largest weather related disruption since 1996. The Unemployment Rate unexpectedly rose from 6.6% to 6.7%, but this was due to an increase in the number of people that entered the labor force. The solid jobs report exceeded expectations nearly across the board. Since stronger economic growth raises future inflationary pressures, this was unfavorable news for mortgage rates.

After Russia moved troops into Ukraine, the threat of an escalating conflict caused a “flight to safety” in financial markets on Monday. This involved a shift by investors to relatively safer assets, resulting in a large decline in stocks and significant improvement in bonds, including mortgage-backed securities (MBS). A complete reversal took place on Tuesday, however, after the Russian President said that Russia would not use military force in Ukraine.

ALSO NOTABLE
ISM Services declined to the lowest level since February 2010
The Treasury will auction $64 billion in securities next week
The European Central Bank (ECB) made no change in rates
Chinese manufacturing data fell to the lowest level in 8 months

WEEK AHEAD
The most significant economic report next week will be the Retail Sales data on Thursday. Retail Sales account for about 70% of economic activity. Before that, the JOLTS report, measuring job openings and labor turnover, will come out on Tuesday. The Producer Price Index (PPI) focuses on the increase in prices of “intermediate” goods used by companies to produce finished products and will come out on Friday. Import Prices and Consumer Sentiment will round out the schedule. In addition, there will be Treasury auctions on Tuesday, Wednesday, and Thursday. Changes in the situation in Ukraine also could have an impact on mortgage rates.

it’s a little late…yet still on time! MORTGAGE TIME

February 25, 2014
MORTGAGE TIME
Mortgage Market News for the week of Feb. 21, 2014
Compliments of:

 

Patrick Gardner
Mortgage Loan Officer
NMLS ID: 378888
415-423-1424
Email me
Visit my website

 


RATES HIGHER AFTER FED MINUTES
The positive momentum in mortgage rates shifted direction after the release of the Fed Minutes on Wednesday. Investors viewed the Minutes as somewhat positive for stocks and negative for bonds. As a result, mortgage rates ended the week a little higher.

The Minutes from the January 29 Fed Meeting revealed that Fed officials remained very divided as to the appropriate path for future policy. Overall, though, the perception of investors was that the position of the hawks remained solid, while the views of the doves may have weakened a little. As a reminder, “hawks” tend to favor less stimulus to help keep inflation low, while “doves” prefer more stimulus to boost economic growth. The Minutes stated that “a few participants” considered the possibility that it “might be appropriate” to raise the fed funds rate sooner than many expect. The Minutes also reinforced Fed Chair Yellen’s recent comments that there is a high hurdle for the Fed to pause in reducing its bond purchase program. The Fed’s bond purchases have helped keep mortgage rates low, and the Minutes reduced the likelihood that the program could be stretched out for a longer period of time.

The economic data released this week continued to be affected by the unusually severe weather this winter. In particular, the housing reports all fell short of expectations. January Existing Home Sales declined 5% from December to the lowest level since July 2012. They were 15% below the peak levels seen last summer. On the plus side, total housing inventory available for sale increased. The results for January Housing Starts fell even farther below expectations with a decline of 16% from December. Building Permits declined as well. Finally, the February NAHB/ Wells Fargo Housing Market index showed that builder confidence dropped sharply. Both the National Association of Realtors (NAR) and the National Association of Home Builders (NAHB) attributed the weakness in recent data to a combination of bad weather, limited supply, and tight credit conditions.

ALSO NOTABLE
Core CPI inflation was just 1.6% higher than one year ago
The Philly Fed index dropped to the lowest level since February 2013
The Treasury will auction $96 billion in securities next week
Chinese PMI manufacturing data was weaker than expected

 

WEEK AHEAD
Next week, New Home Sales will be released on Wednesday. Durable Orders, an important indicator of economic activity, will come out on Thursday. Pending Home Sales, Chicago PMI Manufacturing, and revisions to fourth quarter GDP will be released on Friday. Consumer Confidence and Consumer Sentiment will round out the schedule. In addition, there will be Treasury auctions on Tuesday, Wednesday, and Thursday.

What time is it? It’s Mortgage Time.

February 11, 2014
MORTGAGE TIME
Mortgage Market News for the week of Feb. 7, 2014
Compliments of:

 

Patrick Gardner
Mortgage Loan Officer
NMLS ID: 378888
415-423-1424
Email me
Visit my website

 


JOBS AND MANUFACTURING FALL SHORT
This week’s key economic data showed that the performance of the economy in January was weaker than expected. The shortfalls caused stocks to decline and mortgage rates to improve, but the impact was surprisingly small.

Both the Employment report and the ISM Manufacturing data saw big misses. Against a consensus forecast of 185K, the economy added just 113K jobs in January. Also disappointing, many investors had hoped to see a large upward revision to the weak December reading, but it was little changed. The ISM national manufacturing index declined sharply to 51.3, far below the consensus of 56.0. For perspective, the increase in jobs reflects improvement in the labor market, and readings above 50.0 indicate an expansion in the manufacturing sector. The issue is that the pace of economic growth has slowed.

The relatively minor impact of this week’s data must be considered in light of the performance of the stock and mortgage markets so far this year. Entering the week, stocks had experienced significant losses, as the Dow was down roughly 5% in January. Similarly, mortgage rates have seen significant improvement since the start of the year. To some degree, investors were already positioned for weak data this week. In addition, questions about the effect of unusually severe weather caused some investors to question how accurately recent data reflects the underlying strength of the economy.

ALSO NOTABLE
The Unemployment Rate fell to the lowest level since October 2008
The 2013 Trade Deficit was the smallest since 2009
The Treasury will auction $70 billion in securities next week
The European Central Bank (ECB) made no change in rates

 

WEEK AHEAD
Next week, Janet Yellen, the new Fed chair, will testify before Congress on Tuesday and Thursday, and her comments could influence mortgage rates. The most significant economic report will be the Retail Sales data on Thursday. Retail Sales account for about 70% of economic activity. Before that, the JOLTS report, measuring job openings and labor turnover, will come out on Tuesday. Industrial Production, Import Prices, and Consumer Sentiment will be released on Friday. In addition, there will be Treasury auctions on Tuesday, Wednesday, and Thursday.

Sales of single-family Bay Area homes continuing to surge (Alameda county sees a 26.2% increase in sales)

March 16, 2012

Image

Posted:   03/16/2012 06:22:59 AM PDT
Updated:   03/16/2012 06:23:29 AM PDT

Continuing a promising trend, sales of existing single-family homes in the Bay Area increased by 10.7 percent in February compared with a year ago — the biggest hike for that month in five years, according to a report released Thursday.

“Sales have been up on a year-over-year basis for eight consecutive months,” said Andrew LePage of DataQuick, the real-estate information service that issued the report. “That is significant. It’s been driven by lower prices and ultra low mortgage rates. So that’s a good sign. People are out buying. We’re working our way back to a more normal level in the Bay Area, which you would expect with a gradually improving economy.”

Home sales were at their highest February level since 2007 for the Bay Area as a whole, as well as in Alameda, San Mateo and Santa Clara counties, LePage said. February sales in Contra Costa County were the most since 2009, when a huge number of foreclosed homes were snapped up in that area, he said.

The median price of single-family home in February was $348,000 in Alameda County, $242,500 in Contra Costa County, $490,000 in Santa Clara County and $565,000 in San Mateo County. It was $350,000 for the Bay Area as a whole, a 1.4 percent drop from a year ago. The median price fell in every Bay Area county except San Mateo County, where it rose 1.8 percent.

Condo sales rose 14.4 percent in the Bay Area as a whole, 32 percent in Alameda County, 10.6 percent in Contra Costa County, 5.2rcent in Santa Clara County and 91.9 percent in San Mateo County.

 

LePage cautioned that “it won’t be until March and April when we have a much better understanding of where we are at,” because it’s hard to make predictions based upon February sales. It was a leap year, which added an extra day of sales that month, he noted. Moreover, traditional homebuyer tend to be scarce during the first part of the year and usually don’t start shopping in earnest until spring.

Of all Bay Area homes sold last month, 26 percent were to so-called absentee buyers, mostly investors who don’t plan to live in the homes. Absentee purchases were 23.4 percent a year ago and have averaged 14.2 percent for every month since January 2000, DataQuick reported.

“The market definitely has turned,” said Barbara Lymberis, president of the Santa Clara County Association of Realtors. She noted that the number of houses on the market continues to be low, because prices have been so low many homeowners have resisted listing their properties for sale. Consequently, she said, “if a home is priced right and the condition is decent, there will be a buyer.”

In fact, these days, “multiple offers are pretty much the norm” for any house with a for-sale sign out front, Lymberis said.

Barbara Safran, president of the Contra Costa County Association of Realtors, said she also has seen “a definite increase” in sales, fueled by multiple offers on many properties.

“The buyers have waited long enough and they are finally ready to purchase,” she said, adding that she expects more people to soon start putting their houses on the market, especially those who don’t owe more on their homes than they can get from a new buyer.

Distressed property sales made up about half of the Bay Area’s resale market in February.

Homes foreclosed on in the past 12 months accounted for 27.4 percent of resales, according to DataQuick. That was up from a revised 27.2 percent in January and down from 32.6 percent a year ago. Foreclosure resales had been as high as 52 percent in February 2009. Over the past 15 years, the monthly average for foreclosure resales has been about 9 percent.

About 23 percent of Bay Area resales in February were so-called short sales, where the transaction price was less than was owed on the property. That was up from about 20 percent a year ago.

Original article can be found…

http://www.mercurynews.com/breaking-news/ci_20182178/sales-single-family-bay-area-homes-continuing-surge