Price Reductions Continue to Increase

Trulia.com recently announced that price reductions for homes currently listed for sale have increased for the fourth consecutive month to an all-time high of 27 percent and account for a total reduction of more than $30.7 billion nationwide.

"We would normally expect to see a seasonal uptick in price reductions between June and October, as motivated sellers whose homes are still on the market after the summer selling season aggressively cut prices in an effort to get their homes sold before the holidays," said Tara-Nicholle Nelson, consumer educator, Trulia.com. "Comparatively speaking, we've found that seasonal considerations combined with a lack of urgency on the part of would-be buyers and continued job market doldrums nationwide have led to more significant reductions during this time period than during the same time frame in 2009."

Five California cities were on the top 10 list of "Highest Percentage Increase in Price Reductions: June to Oct. 2010":

Number 2, San Diego, 64 percent increase

Number 3, Sacramento, 61 percent increase

Number 4, Fresno, 51 percent increase

Number 5, San Jose, 46 percent

Number 9, Oakland, 31 percent

Since June 2010, the five largest increases in price reductions have occurred in the Western U.S., with Las Vegas registering the most substantial increase (194 percent). Five major California cities remain beneath the national average in October, but price reduction rates in all seven of California's largest cities have increased dramatically since June, with San Jose, Fresno, Sacramento and San Diego seeing the largest increases, according to the report.

Source: Trulia.com

California Home Sales Decrease; Median Price Increases in September

Sales of existing, single-family homes in California declined 12.2 percent in September compared with a year earlier, and the median price of a resale home rose 4.5 percent to $309,000, C.A.R. reported. On a month-over-month basis, home sales rose 3.8 percent in September and the median price declined 2.7 percent.

"The inventory of homes priced under $500,000 continues to be lean, which is driving moderate or significant price appreciation in this price category," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "Conversely, the inventory of homes priced $1 million and higher is more than double the inventory of the under-$500,000 range, which is contributing to weaker prices at the high end," she said.

Contrary to the national picture, the housing supply in California has been below normal throughout 2010. C.A.R.'s Unsold Inventory Index for existing, single-family detached homes remained relatively unchanged in September at 6.2 months, but was up from the 4.5 months recorded in September 2009. The index was 6.1 months in August. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

Source: California Association of Realtors

Fast facts

Calif. median home price: August 2010: $318,660 (Source: C.A.R.)

Calif. highest median home price by C.A.R. region August 2010:
Santa Barbara So. Coast $777,000 (Source: C.A.R.)

Calif. lowest median home price by C.A.R. region August 2010:
High Desert $127,860 (Source: C.A.R.)

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

Mortgage rates: Week ending 10/14/2010 30-yr. fixed: 4.19
Fees/points: 0.8% 15-yr. fixed: 3.62% Fees/points: 0.7% 1-yr.
adjustable: 3.43% Fees/points: 0.8% (Source: Freddie Mac)

Housing Starts Rise 4.4 Percent in September

Single-family housing starts rose 4.4 percent in September to a rate of 452,000 units compared with the August figure of 433,000 units, the U.S. Census Bureau and the Dept. of Housing and Urban Development announced. Building permits for single-family homes rose 0.5 percent to 405,000 in September.

Source: U.S. Census Bureau and the Dept. of Housing and Urban Development

Bank of America to Resume Foreclosure Proceedings in 23 Judicial States

Bank of America announced it reviewed its process for resubmission of foreclosure affidavits in the 23 judicial states with key stakeholders and has begun the process of preparing foreclosure affidavits for submission in 102,000 foreclosure actions in which judgment is pending.

Bank of America also said it will continue to delay foreclosure sales in the remaining 27 states, including California where the vast majority of foreclosures are non-judicial and conducted without a court order, until its review is complete on a state by state basis.

The bank anticipates that over the course of the temporary moratorium, less than 30,000 foreclosure sales will have been delayed.

Source: Bank of America

Builder Confidence Rises in October

Builder confidence in the market for newly built, single-family homes rose three points to 16 in October, marking the first improvement registered by the HMI in five months, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI).

All three component indexes registered gains in October, with the component gauging home sales expectations for the next six months increasing five points to 23 in October compared with September. The component gauging traffic of prospective buyers rose two points to 11, and the component gauging current sales conditions increased three points to 16, according to the report.

Builder confidence also improved across every region in October. The West, which includes California, posted a four-point increase, rising to 12, according to the report.

Source: National Association of Home Builders