Good morning Friday, the long weekend is here. Isn't that great! It's going to be much like yesterday all weekend long. and maybe a few degrees cooler in the warmer areas. Today at noon, The Fish report with a beat on KLOS. Here's a link:
http://search.yahoo.com/search?ei=UTF-8&fr=yfp-t-501-s&p=listen+to+95.5+klos+los+angeles&rs=0&fr2=rs-topAlso re-airing at 8pm on Jim Ladd's show. Listen and laugh.
Searching for a bottom in the housing market
With consumer confidence rising in May to its highest level in eight months, housing starts increasing more than 17 percent in May compared with the previous month, and sales of existing homes climbing 2.9 percent in April nationwide, it appears that the housing market may be stabilizing.
MAKING SENSE OF THE STORY FOR CONSUMERS
· Although sales of existing, single-family homes rose 35.2 percent in May in California, compared with a year ago, the median price declined 30.4 percent. Some industry analysts predict that as specialized adjustable-rate mortgages, known as option ARMS and Alt-A mortgages, reset over the next 18 to 24 months, prices could decline further before stabilizing.
· “We are seeing strong buying activity, particularly in those boom
and bust markets, where prices have declined significantly. Buyers
are coming in and fighting over properties – there is multiple bidding
in California and Florida,” says Lawrence Yun, chief economist with
the NATIONAL ASSOCIATION OF REALTORS®.
· Sales of existing homes are soaring as many investors and first-
time buyers purchase distressed properties. Yun estimates that
about 50 percent of current sales involve distressed properties, and
he expects the trend to continue as foreclosures rise in the months
· Although some economists predict home prices will continue to
decline in the coming months, California’s median home price rose
for the third consecutive month in May, posting the largest monthly
increase on record for the month of May.
· Some buyers are trying to time the bottom of the market and purchase once it appears that prices are consistently and steadily rising. Many housing forecasters advise against this approach as buyers should not view their homes solely as investment opportunities. Historically, the average annual rate of return on a home lived in for five years or more is nearly 12 percent, based on data C.A.R. has collected over the last 40 years.
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Have a great weekend!