Price reductions increase year over year in December
The number of listings nationwide with at least one price reduction increased 4 percentage points in December 2010 compared with December 2009, Trulia.com recently reported.  Meanwhile, average reductions remained flat at 11 percent in a year-over-year comparison, although they have risen by 10 percent since last month.
 
Among the 50 largest U.S. cities, 32 experienced price reduction levels at 30 percent or higher in December compared with 14 cities a year earlier.

The 10 cities with the highest percentage change in price reductions between December 2009 and December 2010 are all in the western and southwestern states of California, New Mexico, Nevada, Arizona, and Texas. At the top of the list, Fresno more than doubled its year-over-year price reductions by 117 percent while Mesa and Phoenix – which have two of the highest price reduction levels this month – increased by 54 percent and 50 percent, respectively, according the the California Association of Realtors.

Wells Fargo reaches agreement with California to modify risky mortgages
Wells Fargo & Co. reached an agreement with the state of California to make mortgage modifications valued at as much as $2.4 billion on risky mortgages that let borrowers decide how much they would pay each month, according to the L.A Times.

Panel: Mortgage program failed most homeowners
The Obama administration’s key program for modifying troubled mortgages has failed to help the vast majority of Americans facing foreclosure, according to the bipartisan Congressional Oversight Panel, which monitors the federal bank bailout program.

INFO THAT HITS US WHERE WE LIVE  Housing was more affordable in November than at any time in the last 40 years. So it should come as no surprise that Existing Home Sales were UP 5.6% for November, bringing them to an annual rate of 4.68 million, a tad above the expected 4.65 million rate. Sales were up for single-family homes, although down for condos and coops, and all regions of the country registered gains.

The median price increased to $170,600 in November (not seasonally adjusted) and that figure is UP 0.4% over a year ago. The FHFA index of prices for homes bought with conforming mortgages also was up 0.7% in October (seasonally-adjusted), its first gain since May. The months’ supply dipped to 9.5, with a decline in overall inventories. 

Thursday saw new single-family home sales UP 5.5% for November, to a 290,000 annual rate, a little short of expectations. The months’ supply of new homes dropped to 8.2 from October’s 8.8 level. The new homes inventory is now down to 197,000, 65.6% off its 2006 peak, and the lowest inventory level going back to 1968. The median selling price went up to $213,000, after dipping under $200,000 in October.

C.A.R. addresses short sale complications
In response to the ongoing challenges REALTORS® face in working with short sale transactions and HAFA, C.A.R. recently sent letters to officials at the U.S. Dept. of the Treasury, Federal Housing Finance Agency, Fannie Mae, and Freddie Mac requesting immediate changes to the HAFA program and recommending solutions so the program can succeed.

In the letters, C.A.R. made the following recommendations:
• Require servicers to comply with HAFA timelines
• Increase monetary incentives to senior and subordinate lien holders
• Enforce other HAFA rules
• Provide uniform guidelines for all HAFA programs
• Mandate lenders to approve and complete HAFA short sales

C.A.R. will continue to remain vigilant in the arena of short sales.  Stay tuned for future updates as we ramp up our efforts in early 2011 to address members’ concerns related to short sale transactions, according to California Association of Realtors.

Fast Facts 
Calif. median home price: October 2010: $304,220 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region October 2010: Santa Barbara So. Coast $864,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region October 2010: High Desert $125,060 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Third quarter 2010: 64 percent (Source: C.A.R.)
Mortgage rates: Week ending 12/9/2010 30-yr. fixed: 4.61 Fees/points: 0.7% 15-yr. fixed: 3.96% Fees/points: 0.7% 1-yr. adjustable: 3.27% Fees/points: 0.6% (Source: Freddie Mac) 

All of this according to C.A.R.

Majority of Americans expect housing to recover after 2012
Nearly 60 percent of Americans who responded to a recent survey expect the housing market recovery to take at least another two years.  The survey, which gauges home buyers’ attitudes toward foreclosed homes, was conducted by Harris Interactive® on behalf of Trulia and RealtyTrac.

When asked about their faith in lenders, half of U.S. adults surveyed said they have less faith in mortgage lenders, banks, and the government as a result of the recent robosigning events.  An additional 35 percent believe the robosigning issue will delay the housing market’s recovery, while 6 percent think robosigning will not have any effect on the housing market recovery.

Nearly half of homeowners with a mortgage said they would consider walking away if their mortgage was underwater, an increase compared with May 2010, when 41 percent said they would consider walking away from an underwater mortgage, according to the California Association of Realtors.

Percentage of price-reduced homes rises in November
The percentage of price-reduced homes listed for sale rose 24.1 percent in November compared with a year ago, according to ZipRealty’s Price Reduction Index, a monthly review of MLS-listed properties in 26 markets surveyed by the real estate brokerage.San Diego topped the list with the largest increase in price-reduced inventory, which rose 108.4 percent from 2009 to 2010.  Three other California districts also experienced large year-over-year increases in the amount of reduced-price inventory, including San Francisco, 100 percent; Orange County, 91 percent; and Los Angeles, 79 percent.

For the second consecutive month, total inventory declined in November. The percentage of inventory that has been reduced increased 0.1 percent compared with October as the number of price-reduced listings declined at a rate of 3.7 percent.

The median list price declined 2.8 percent in November compared with October to $234,484, and the average percentage of price reduction rose 7.6 percent, according to the California Association of Realtors.

The December 2010 HomeDex™ Report provides November 2010 housing statistics.

Inside this month’s report:
• The median price for all homes in North San Diego County rose 0.65% in November 2010 to $380,000.
• The median priced single family detached home in North San Diego County decreased 1.08 percent from $465,000 in October 2010 to $460,000 in November 2010.
• Year-over median SFD price in North San Diego County increased 5.44% from $436,250 in November 2009.
• Median days on market for North San Diego County SFD homes increased from 52 days in October 2010 to 55 days in November 2010.
• There were 4,362 active and contingent SFD listings in North San Diego County ending November 2010, a decrease of 5.09 percent from October 2010.

INFO THAT HITS US WHERE WE LIVE  There wasn’t a ton of news impacting the housing market last week, but we did get more talk about the move up in mortgage rates. Freddie Mac’s weekly survey of conforming mortgages showed the average rate on a 30-year fixed-rate mortgage back at the level it was last June. That still puts mortgage rates below where they were a year ago when everyone was happy to get in on those bargains. So none of this is bad news in the absolute sense but the trend should be noted. People who want to buy or refinance should not drag their feet!

It was encouraging to see new construction spending UP in October, now two months in a row, and the gain mostly came from a rise in residential construction. The U.S. Census Bureau put residential construction UP 2.4% in October to an annual rate of $240.3 billion. Though headed in the right direction, residential construction is still down 8% from a year ago.

Wow!  What a great weekend!  The Chargers stomped the Chiefs, the weather was perfect and real estate values are stable.  Went down to the harbor to check out the Festival of Lights.  What fun!  Those boat owners really go all out!  Some new listings came on the market in Carlsbad, San Marcos and Encinitas that are both great values and ready for new owners!  Drop me a line or search for properties in all of San Diego and North County by clicking on the icons above.  Thanks!