According to the California Building Industry Association, multi-family housing did well in November 2010 as compared to a year ago, jumping 207 percent. Single family home starts fell 61 percent from last year and 37 percent from October. Builders are clearly anticipating an increase in demand for rental homes in the East Bay.
Visit http://www.rubyhillliving.com/ for information on East bay homes
Monday, January 10, 2011
Monday, January 3, 2011
Foreclosures/Default Activity and Economy
Default Activity
In the East Bay, about 171,000 households or 31% of all mortgaged homes were underwater in the 3rd quarter of 2010 – a decline of 1.4% as compared to the previous quarter. Much of this decline was due to increased foreclosure action on the part of the banks as opposed to increasing home prices. The Federal Reserve Bank has estimated that one third of those who are underwater will return to positive equity within years by paying down debt. That still leaves a large chunk of homeowners who could suffer foreclosure action in the months to come.
Overall Economy
The end of 2010 saw a number of encouraging signs for the economy with respect to layoffs, factory production and consumer spending. The latter should continue to improve with the Congress approved tax cuts putting a little more money in the hands of consumers. Economists are predicting a 4% growth in the US economy which should help lower the unemployment rate. Homeowners who fall behind on their mortgage payments and subsequently get foreclosed upon are often unemployed. The market has seen an increase in mortgage interest rates and the expectation is that these will continue to rise at a moderate pace in the year ahead.
Most predictions suggest that the housing market will begin stabilize in the second half of 2011.
For more information visit http://www.rubyhillliving.com/
In the East Bay, about 171,000 households or 31% of all mortgaged homes were underwater in the 3rd quarter of 2010 – a decline of 1.4% as compared to the previous quarter. Much of this decline was due to increased foreclosure action on the part of the banks as opposed to increasing home prices. The Federal Reserve Bank has estimated that one third of those who are underwater will return to positive equity within years by paying down debt. That still leaves a large chunk of homeowners who could suffer foreclosure action in the months to come.
Overall Economy
The end of 2010 saw a number of encouraging signs for the economy with respect to layoffs, factory production and consumer spending. The latter should continue to improve with the Congress approved tax cuts putting a little more money in the hands of consumers. Economists are predicting a 4% growth in the US economy which should help lower the unemployment rate. Homeowners who fall behind on their mortgage payments and subsequently get foreclosed upon are often unemployed. The market has seen an increase in mortgage interest rates and the expectation is that these will continue to rise at a moderate pace in the year ahead.
Most predictions suggest that the housing market will begin stabilize in the second half of 2011.
For more information visit http://www.rubyhillliving.com/
Pleasanton Home Sales for Period ending November 2010
In 2010 Pleasanton saw a big increase in sales of homes priced under $700,000. Looking at 2006 when the market was at near peak in housing sales activity, a total of 81 homes priced under $700k were sold as compared to 226 in the first eleven months 2010 (upto November 30th). In all price ranges, 2010 fared much better than 2009 including homes priced over $1million - a total of 141 homes were sold this year as compared to 101 last year. Increasing home sales and low inventories (only a 3 month supply in the last few months) should bode well for prices in the months ahead, to overcome the declines in 2010.
For more information visit http://www.rubyhillliving.com/
Ruby Hill 2010 Home Sales Fare Well
The highest priced Ruby Hill home sold in 2010 went for $5.5 million! This gorgeous home on Germano with over 12,000 square feet of living space, built on a lot with over 54,000 square feet closed in late December - showing once again, Ruby Hill is a place that can command record prices even in this slow economy. In fact 24 of the 66 homes which were sold or went pending this year were priced over $2million. Not too shabby by any means.
December 31, 2010 Total Bank owned share Short Sale Share
Active 11 1 0
Pending 7 0 3
Sold to date 2010* 59 4 9
*COE 01/01/10 or later
Inventories remained lower than previous years as some sellers chose to rent their homes rather than sell. Over 10 homes were rented in 2010 – currently there are about 3 homes available for rental. 1773 Via di Salerno remains the only bank owned property among the 11 active properties in Ruby Hill. The average price of the 59 sold homes was approximately $1.7m. at $334 per square foot and 60 days on market on average. Last year a total of 43 homes sold/went pending – a big improvement in total sales even though prices fell.
December 31, 2010 Total Bank owned share Short Sale Share
Active 11 1 0
Pending 7 0 3
Sold to date 2010* 59 4 9
*COE 01/01/10 or later
Inventories remained lower than previous years as some sellers chose to rent their homes rather than sell. Over 10 homes were rented in 2010 – currently there are about 3 homes available for rental. 1773 Via di Salerno remains the only bank owned property among the 11 active properties in Ruby Hill. The average price of the 59 sold homes was approximately $1.7m. at $334 per square foot and 60 days on market on average. Last year a total of 43 homes sold/went pending – a big improvement in total sales even though prices fell.
Saturday, December 4, 2010
Foreclosure Activity and Unemployment
According to the Mortgage Bankers Association the number of households which are behind 30 days or more on their mortgage payments has declined from 14.4% to 13.5%. As for loans which are more than 3 consecutive payments in default or in foreclosure, the number dropped to 8.7% - the lowest since the second quarter of 2009.
Banks continued to report an increase in loan modification approvals - Bank of America saw a 52% increase over the previous month. The moratorium on foreclosures remains in force for most of the major banks.
Housing starts fell by 11.7% in October over the previous month down to a seasonally adjusted rate of 519,000 – an 18 month low.
All the above factors suggest low housing inventories in the months to come.
Banks continued to report an increase in loan modification approvals - Bank of America saw a 52% increase over the previous month. The moratorium on foreclosures remains in force for most of the major banks.
Housing starts fell by 11.7% in October over the previous month down to a seasonally adjusted rate of 519,000 – an 18 month low.
All the above factors suggest low housing inventories in the months to come.
Bay Area Home Sale Activity
Bay Area home sales generally saw a decline in October sales by more than 20% compared to the same period last year. Prices fell by approximately 2%. The slowdown is attributable in large part to the expiry of the federal tax credit.
Ruby Hill Experiences Seasonal Slowdown
The seasonal slowdown is on. There has been very little movement in the number of homes which have sold or gone pending since last month’s report. Three homes came off the market – one was rented, a couple of them were withdrawn. One expired listing made its way back. Several expired listings have not come back on the market this year as sellers hold back from selling in a declining price market. Another bank owned home came on the market – 1371 Germano Way.
November 30, 2010 Total Bank owned share Short Sale Share
Active 18 2 0
Pending 12 0 4
Sold to date 2010* 52 3 8
*COE 01/01/10 or later
Last year a total of 43 homes sold/went pending as compared to 64 so far this year – clearly a significant improvement, despite lower prices.
If you would like further information please visit my website http://www.rubyhillliving.com/ or email me at anju@RubyHillLiving.com
November 30, 2010 Total Bank owned share Short Sale Share
Active 18 2 0
Pending 12 0 4
Sold to date 2010* 52 3 8
*COE 01/01/10 or later
Last year a total of 43 homes sold/went pending as compared to 64 so far this year – clearly a significant improvement, despite lower prices.
If you would like further information please visit my website http://www.rubyhillliving.com/ or email me at anju@RubyHillLiving.com
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