Just a short month after I last reported the appreciation numbers, we are still hanging in there. And being the eternal optimist that I am, the inventory has actually declined from last week, and compared to this same period last year has dropped 2.4%. Cause for celebration, of course not, but signs that the market may be leveling off here in our area. On the other side of the coin, pending sales were down 5.4% from last week and 11.4% from the same period last year.
Is it because of all the news relating to the mortgage market, maybe so. I hear that buyers are experiencing some changes in qualifying as well as rates being hirer. Also some skepticism exists regarding what is actually going to happen and whether lenders will still be in business going forward. An industry that had become conditioned to rules that allowed most anyone to get a loan now must turn customers away.
Survey finds half would be uncomfortable buying a home in the coming months.More than half of consumers believe problems in the sub prime mortgage market will affect the market overall, and that the government should pass legislation to help sub prime borrowers avoid foreclosure, according to an Experian-Gallup poll. The Experian-Gallup Personal Credit Index survey showed about half of consumers would be uncomfortable making a major purchase like a home or car in the next three months. About 52 percent of those surveyed expected the average price of homes in their area to increase over the next year, and another 29 percent believe prices will remain about the same. Only 18 percent said they expect prices in their area will decrease. The survey was conducted in April, May and June, before the latest turmoil in the secondary market for mortgage loans prompted many lenders to further tighten underwriting standards and eliminate the use of some risky loans altogether.
Median home prices expected to fall this year, rebound in 2008 according to NAR (National Association of Realtors).New single-family home sales are forecasted to fall 18.9 percent and single-family housing starts to plummet 23 percent this year from 2006 levels. The median price of new homes is expected to fall 2.3 percent this year, with the median existing-home price falling 1.2 percent compared to 2006, the group also reported. This latest forecast represents some changing expectations compared to previous forecasts. 'More buyers, and cutbacks in new construction, will eventually draw down the inventory levels and support future price appreciation, but general gains will be modest next year,' stated Lawrence Yun, NAR senior economist. 'Mortgage disruptions will hold back sales over the short term,' Yun stated, and he expects a 'modest upturn ... for existing-home sales toward the end of the year, with broader improvement to include the new-home market by the middle of 2008.'
What’s New on the Green SceneThe latest environmentally friendly home features aren’t just good for the planet — they look great and are a huge draw for conscientious buyers, too. “Interest in being green has moved across the country — it’s no longer just for wacky Californians,” says Matt Golden, who founded Sustainable Spaces Inc. in San Francisco three years ago. There are plenty of reasons why focusing on the environment has become so popular lately. Home builders, retailers, and product manufacturers are seeking to satisfy consumers’ appetites for anything green, offering everything from eco-friendly condos to water-saving toilets. Heard of any of these:
Timber framing
Copper roofs
Windows that beat the heat
Rainwater holding tanks
Chemical-free lighting
Green toilets
Solar Induction cook tops
Geothermal heating and cooling
Attic heat blocker
Reclaimed wood countertops
Nontoxic paint
Formaldehyde-free insulation
Smart irrigation systems
Green furniture
Here is what is happening in our local Santa Cruz County market, for other areas please give me a call.
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July Monthly Statistical Highlights for Single Family Homes:
* Inventory down 3.3% compared to July 2006, with an increase of 1.7% from June 2007
* Sales up 2.2% compared to July 2006, but a decrease of 11.5% from June 2007
* Days on the market decreased to 88, month prior 91, last July at 57
* Median home price increased to $799,000, and increased 2.7% from June 2006
* Sales price vs.listing price ratio increased to 96.86%
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(These statistics are believed to be accurate but not guaranteed)
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