LA Times

By Alejandro Lazo
April 30, 2013, 7:21 a.m.

Home prices in the nation’s largest American cities continued their strong gains in February, new data show.

The Standard & Poor’s/Case-Shiller home price index of 20 American cities rose 0.3% over the prior month and was up 9.3% over February 2012. All of the cities covered by the index have risen year-over-year for two consecutive months.

“Home prices continue to show solid increases across all 20 cities,” said David M. Blitzer, chairman of the index committee at S&P Dow Jones Indices. “Despite some recent mixed economic reports for March, housing continues to be one of the brighter spots in the economy.”

Phoenix, San Francisco, Las Vegas and Atlanta were the four cities with the highest year-over-year price increases. With heavy investor interest, Atlanta appears now to have recovered from a wave of foreclosures in 2012, while the Western cities have shown particular strength after crashing hard during the bust. New York, Boston and Chicago saw the smallest year-over-year gains last month.

Phoenix posted particularly strong gains, up 23% over the year. That metro region has emerged as the epicenter of the recovery.

California metro areas also gained over the year. The San Diego area was up 10.2%, San Francisco 18.9% and Los Angeles 14.1%.

Sales of Existing U.S. Homes Climb to Three-Year High

By Lorraine Woellert – Dec 20, 2012 7:00 AM PT.
Sales of previously owned homes rose more than forecast in November to reach a three-year high as lower borrowing costs sustained the U.S. housing rebound.

Purchases of existing houses increased 5.9 percent to a 5.04 million annual rate, the most since November 2009, the National Association of Realtors reported today in Washington. The median forecast of 82 economists surveyed by Bloomberg projected an increase to a 4.9 million rate. Property values climbed 10.1 percent over the past 12 months as inventories dropped to the lowest level in 11 years.

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Record-low mortgage rates and an improved job market are boosting sales and cutting inventories, giving the market the opportunity to absorb foreclosures. Prices are rising as a result, which will probably draw more buyers seeking to take advantage of current affordability in housing, helping retailers such as Pier 1 Imports Inc. (PIR) and Lowe’s Cos. Inc.

“The housing market is staged for continued improvement,” Anika Khan, senior economist at Wells Fargo Securities LLC in Charlotte, North Carolina, before the report. “Underlying fundamentals are continuing to improve despite uncertainty. We’re seeing better labor market numbers, and that’s also reflected in better consumer confidence. Sales activity is going to be volatile but the underlying trend is still improving.”

Economists’ estimates in the Bloomberg survey ranged from 4.59 million to 5.15 million. The prior month’s pace was revised to 4.76 million from a previously reported 4.79 million.

Stronger Growth

Other reports today showed the economy grew at a faster pace than projected in the third quarter, claims for jobless benefits increased last week and consumer confidence climbed to an eight-month high.

The economy grew at a 3.1 percent annual rate in the third quarter, reflecting the first gain in state and local government spending in three years, more consumer purchases and a smaller trade gap, figures from the Commerce Department showed.

The number of Americans filing first-time claims for unemployment insurance payments increased by 17,000 to 361,000 in the week ended Dec. 15, according to Labor Department data. It was the first increase in five weeks.

The Bloomberg Consumer Comfort Index rose to minus 31.9 in the period ended Dec. 16, from minus 34.5 in the prior week. The gauge was within a half point of a four-year high reached in April. Americans views’ on the economy and personal finances improved as gains in employment, a rebound in housing and lower gasoline prices are giving households reason to be upbeat during the holiday-shopping season.

Prices Increase

Today’s report on existing home sales showed the median price increased to $180,600 from $164,000 in November 2011, today’s report showed. The increase reflects a growing share of sales of higher-priced properties, Lawrence Yun, NAR chief economist, said in a news conference as the figures were released.

Compared with a year earlier, purchases increased 15.5 percent before adjusting for seasonal variations.

The number of previously owned homes on the market dropped to 2.03 million, the fewest since December 2001. At the current sales pace, it would take 4.8 months to sell those houses, the lowest since September 2005, compared with 5.3 months at the end of October.

Existing-home sales have improved after reaching a low 3.39 million annual rate in July 2010. In the buildup to the subprime lending collapse and recession, purchases reached a peak of 7.25 million in September 2005.

Fed Policy

Efforts by Federal Reserve policy makers to boost growth by keeping interest rates low are paying off. The average rate on a 30-year, fixed loan was 3.32 percent last week, compared to 3.94 percent a year ago, according to Freddie Mac. The rate reached 3.31 percent in late November, the lowest in weekly data back to 1972.

Builders are planning on increasing the supply of new houses, with the number of building permits issued in November hitting a four-year high, the Commerce Department reported yesterday. Applications, a proxy for future construction, rose 3.6 percent to an 899,000 annual rate, the most since July 2008.

Consumer confidence is improving and shoppers are spending, partly because of housing-market gains, said Robert Hull, chief financial officer at Lowe’s, based in Mooresville, North Carolina.

“2012 represents the first year of growth across all of the core housing metrics: housing turnover, single-family starts and median home prices,” Hull said at a Dec. 5 investor conference. “These recent positive trends are helping consumers regain confidence in both their local housing markets and their home value.”

Pier 1’s furniture sales have been gaining momentum all year, President and Chief Executive Officer Alexander Smith said. On Dec 13, the company reported its 13th consecutive quarter of sales and profit growth.

The improvement is due in part to “what we view as the very beginnings of a long-awaited recovery in the housing market,” Smith said on an earnings call.

By Jim Puzzanghera

November 19, 2012, 8:04 a.m.
WASHINGTON — The housing market recovery showed signs it is continuing to strengthen as sales of existing homes increased 2.1% in October from the previous month and a measure of home-builder confidence jumped in November to its highest level since 2006.

Sales of existing homes rose to a seasonally adjusted annual rate of 4.79 million last month, up from a downwardly revised 4.69 million rate in September, that National Assn. of Realtors reported Monday. Sales were up 10.9% in October from a year earlier.

Stronger demand helped push up the median home price nationwide to $178,600 in October, an increase of 11.1% from a year earlier, the group said. It was the eighth-straight month to show a year-over-year increase, the first time that’s happened since 2005-2006.

Fewer houses on the market also helped drive price increases. There were 2.14 million existing homes for sale in October, down 1.4% from September. That translates to a 5.4-month supply at the current sales rate, the lowest level since February 2006.

Sales by distressed homeowners still accounted for a large chunk of activity. Foreclosures and short sales made up 24% of October’s sales. That was the same level as in September, but down from 28% a year earlier.

Superstorm Sandy had some negative impact on sales, the group said.

The Northeast, which was hit hard by the storm, was the only region to show a decrease in sales in October from the previous month. Sales were down 1.7% there, while they increased 1.8% in the Midwest, 2.1% in the South and 4.4% in the West.

“Home sales continue to trend up and most October transactions were completed by the time the storm hit, but the growing demand with limited inventory is pressuring home prices in much of the country,” said Lawrence Yun, chief economist at the Realtors group.

He expected more of an impact in the Northeast in coming months.

The improving housing market led to a boost in builder confidence, according to a measure released Monday.

The National Assn. of Home Builders/Wells Fargo Housing Market Index rose five points in November to 46 from the previous month. It was the seventh straight monthly increase, lifting the index to its highest level since May 2006, before the crash of the subprime housing market.

The index remained below 50, indicating that builders who view sales conditions as poor still outnumber those who view them as good. But the index is up sharply from its 19 reading a year ago, the home builders group said.

“Builders are reporting increasing demand for new homes as inventories of foreclosed and distressed properties begin to shrink in markets across the country,” said Barry Rutenberg, a home builder from Gainesville, Fla., and chairman of the builders’ group.

“In view of the tightening supply and other improving conditions, many potential buyers who were on the fence are now motivated to move forward with a purchase in order to take advantage of today’s favorable prices and interest rates,” he said.

By Jim Puzzanghera

October 24, 2012, 7:55 a.m.
WASHINGTON — New home sales jumped 5.7% in September from the previous month to the highest rate in more than two years as the housing market resurgence continued to take hold, the Commerce Department said Wednesday.

New single-family homes sold last month at an annualized rate of 389,000, up 27.1% from a year earlier. It was the best performance since April 2010, when the rate was 422,000. That figure was boosted by a tax credit for first-time homebuyers that expired at the end of 2011.

The Setpember increase beat analysts’ expectations of an annualized rate of 385,000 and came as other recent data pointed to a housing rebound.

But the median sales price for new homes last month dropped about 3.2% to $242,400, from August’s revised figures. Stiill, September’s median price was up 11.7% from a year earlier.

“All the housing data has taken a turn for the better,” said Steven Ricchiuto, chief economist for Mizuho Securities.

“Clearly mortgage rates at such a low level and what appears to be an increase in banks’ willingness to make loans has boosted activity off the lows,” he said. “The gains look large on a year-over-year basis but that owes to the exceptionally low level of activity.”

Some regions of the country fared much better than others in September sales.

New home sales were up 16.8% from the previous month in the South and 16.7% in the Northeast. But sales were down sharply — $37.3% in the Midwest. Sales in the Western U.S. were up 3.9% from August.

Despite the overall positive data, Ricchiuto cautioned that the housing turnaround could be another “false start” unless employment picks up.

By Alejandro Lazo

October 12, 2012, 9:51 a.m.
Southern California’s median home price climbed to a high not seen in more than four years even as sales plummeted — the latest sign that the housing market is becoming increasingly competitive, with fewer homes available.

Sales declined for the first time in nine months as California experienced a shortage of affordable properties, according to real estate research firm DataQuick. In particular, foreclosed homes hit a nearly five-year low.

The region’s median price was $315,000 last month, up 1.9% from August and 12.5% from September, DataQuick reported.

Sales fell 20.4% from last year and were down 1.6% from the month prior, with a total of 17,859 newly built and previously owned homes bought across the region.

By Tiffany Hsu

September 26, 2012, 8:17 a.m.
The median price of new single-family homes sold soared 11.2% in August from July, a new record, according to government data.

The gauge hit $256,900 last month, the highest level in more than five years. Compared with July 2011, the 17% jump was the biggest year-over-year surge in eight years, according to the Commerce Department.

Home buyers picked up more properties that were higher-priced; less-expensive homes had a more lackluster month. Sales ticked up in every region across the country except the South.

But total sales dipped slightly, down 0.3% from July to a seasonally-adjusted annual rate of 373,000. Economists consider a rate of 700,000 to be healthy.

Still, sales last month advanced 27.7% from the same month last year.

A separate report Tuesday found home prices in the nation’s largest cities up 1.6% in July, hitting their highest level in nearly two years but still down about 30% from their mid-2006 peak. It was the fourth straight boost for the Standard & Poor’s/Case-Shiller index of prices.

In Los Angeles, home prices leaped 1.3% in July from June and 0.4% compared with the year-earlier period.

With other data showing boosts in new housing starts and existing home sales as well as a foreclosure slowdown, economists have begun suggesting that the real estate market may have turned the corner for good since tanking in the recession

Housing starts and existing home sales both rose in August
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Workers build a new townhouse in Ashburn, Va., this month. New home construction in the U.S. rebounded in August from a July decline as the distressed housing market slowly continues to stabilize, according to government data released Wednesday. (Paul J. Richards / AFP/Getty Images / September 19, 2012)

By Jim Puzzanghera

September 19, 2012, 7:55 a.m.
WASHINGTON — The rebound in the U.S. housing market accelerated in August as residential construction starts increased 2.3% and sales of existing homes rose 7.8%, according to new figures released Wednesday.

The National Assn. of Realtors said sales of existing single-family homes, townhouses, condos and co-ops rose to a seasonally adjusted annual rate of 4.82 million units in August, up from an annual rate of 4.47 million in July. The rate exceeded analysts’ expectations.

The national median sale price was $187,400 in August, up 9.5% from a year earlier. It was the biggest year-over-year increase since January 2006, shortly before the housing bubble burst. August marked the sixth straight month of year-over-year price increase, which had not happened since early 2006, the Realtors group said.

At the same time, the Commerce Department reported that privately owned housing starts rose to a seasonally adjusted annual rate of 750,000, up 2.3% from the July rate of 733,000. Although that figure was below analysts’ expectations, it was another indication the real estate sector was bouncing back after apparently hitting bottom.

“The housing market is steadily recovering with consistent increases in both home sales and median prices,” said Lawrence Yun, chief economist for the Realtors association. “More buyers are taking advantage of excellent housing affordability conditions.”

The Federal Reserve said last week it would try to support that recovery — and, in turn, drive down the high unemployment rate — by launching another round of bond-buying designed to drive down already historically low mortgage rates.

The average interest rate for a 30-year fixed mortgage was 3.6% in August, up from a record-low 3.55 in July, according to Freddie Mac. But the August rate was well below the 4.27% figure for a year earlier.

Although it remains difficult for many people to qualify for a mortgage, the housing market is strengthening because of pent-up demand, Yun said.

Southern California housing market posts strong August
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A sign advertising a home for sale in Los Angeles. (Kevork Djansezian/Getty Images / September 13, 2012)

By Alejandro Lazo

September 13, 2012, 9:52 a.m.
Home sales in Southern California hit their highest level for an August in six years last month, and the median price for a home in the region rose to a four-year high.

Sales rose 9.0% from the previous month and were 14.2% from the same month last year to total 22,438, real estate firm DataQuick reported. The lift in sales came as fewer foreclosures and low-end homes sold and the market for move-up and high-end up homes heated up, the firm reported.

The region’s median home price — the point at which half the homes in the area sold for more and half for less — hit $309,000 last month. That was up 1.0% from the prior month and 10.8% from the same month a year earlier.

[Updated at 9:58 a.m.: August marks the last month of the busy spring and summer season and sales should cool off as the fall and winter months approach.

“August was the strongest month for home sales so far this year, and the strongest for an August in six years. That’s really saying something given the drop in low-end sales, especially foreclosure resales,” DataQuick president John Walsh said in a news release. “Strong seasonal forces should be kicking in now. Absent an unusual surge in demand this fall, sales will taper off over the next few months.”

When looked at regional median home prices year-over-year, the Inland Empire posting the most sizable pop, confirming that the region’s most affordable homes have become the most competitive.

Median home prices rose sharply in the Inland Empire -- which during the housing bust was one of the hardest hit regions in the nation -- even as sales fell in Riverside County and were up only modestly in San Bernardino. The price spike in the Inland Empire amid lackluster sales underscores a national trend: there is heavy desire for low-end homes and not enough inventory to satisfy that demand.

Here’s the year-over-year median home price breakdown, according to real estate research firm DataQuick:

--Riverside County was up 10.5% to hit $210,000.

-- San Bernardino County was up 12.0% to hit $168,000.

--Los Angeles County was up 6.3% to hit $335,000.

--Orange County was up 6.0% to hit $445,000.

-- San Diego County rose 7.9% to hit $345,250.

--Ventura County rose 2.8% to hit $365,000.

Here’s the year-over-year home sales breakdown:

--Riverside County sales were down 3.4%, to total 3,520.

--San Bernardino County sales were up 3.2%, to total 2,705.

--Los Angeles County sales were up 20.0%, to total 7,917.

--Orange County sales were up 20.0%, to total 3,337.

--San Diego County sales were up 22.5%, to total 3,981.

--Ventura County sales were up 27.8%, to total 978.]

By E. Scott Reckard

September 6, 2012, 8:11 a.m.
The typical rate for a 30-year fixed-rate mortgage dropped slightly this week to 3.55% from 3.59% a week ago, Freddie Mac said in its latest survey of what lenders were offering to solid borrowers.

The borrowers, assumed to be good credit risks and having down payments of at least 20%, would have paid lenders an average of 0.7% of the loan amount in fees and points to obtain the 30-year loan at that rate, according to the the McLean, Va., loan buyer.

The rate for a 15-year fixed loan held steady at 2.86% with 0.6% of the loan principal in upfront lender charges.

Start rates for mortgages with variable interest rates fell slightly.

The Freddie Mac survey covers loans of up to $417,000. The 30-year fixed loan, which fell below 4% last fall and bottomed out at 3.49% in late July, is now very close to that record low.

“After a brief flare higher in August, mortgage rates have settled back, driven there by the realities of a soft economy showing few signs of acceleration,” said Keith Gumbinger, vice president of HSH.com, a mortgage information service.

Freddie Mac economist Frank Nothaft noted that recent economic signs have been mixed, with consumer confidence up slightly in August, according to the University of Michigan, but below this year’s peak in May.

“And the manufacturing industry contracted for the third consecutive month in August,” Nothaft said.

By Kerri Ann Panchuk
• September 4, 2012 • 8:19am

Home prices in July rose 3.8% over last year, making it the largest annual gain in six years, CoreLogic ($24.87 0.27%) said in its latest Home Price Index Tuesday.

The Santa Ana, Calif.-based mortgage research and analytics firm noted that home prices, including distressed sales, edged up 1.3% from June, making it the fifth consecutive month-over-month increase in home prices nationally.

When excluding distressed home sales, which are known to skew price levels, home prices grew 4.3% over last year in July and 1.7% over June, suggesting a value recovery is taking hold.

CoreLogic’s pending home price index suggests that August prices, including distressed sales, will rise at least 4.6% year-over-year this month.

When excluding the influence of distressed sales, CoreLogic believes August home prices will rise 6% over last year and 1.3% over July.