Builder confidence in the market for newly built single-family homes held at a record low reading of 9 in December as deepening economic turmoil, a deteriorating job market, and an ongoing flow of foreclosed homes onto the market continued to negatively impact sales conditions, according to the most recent National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as "good," "fair," or "poor," where any number over 50 indicates that more builders view sales conditions as good than poor. The index gauging current sales conditions and the index gauging sales expectations for the next six months each declined to new record lows, falling one point to 8 and two points to 16, respectively, according to the report. The index gauging traffic of prospective buyers held at a record low of 7 for the month.
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From Wednesday, December 17, 2008 C.A.R. Newsline

Reprinted with permission of the CALIFORNIA ASSOCIATION OF REALTORS®

In what analysts characterized as a symbolic move, the Federal Reserve yesterday established a target range for the federal funds rate of 0 percent to .25 percent, and said it was committed to expanding its purchases of mortgage-backed securities. "The Federal Reserve will employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability," the Fed said in a prepared statement. "In particular, the Committee anticipates that weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time. "Since the Committee's last meeting, labor market conditions have deteriorated, and the available data indicate that consumer spending, business investment, and industrial production have declined. Financial markets remain quite strained and credit conditions tight," the Fed said. "Overall, the outlook for economic activity has weakened further. "Meanwhile, inflationary pressures have diminished appreciably. In light of the declines in the prices of energy and other commodities and the weaker prospects for economic activity, the Committee expects inflation to moderate further in coming quarters." Going forward, Fed policy will be to support the functioning of financial markets and stimulate the economy through open market operations and other measures that sustain the size of the Federal Reserve's balance sheet at a high level. Over the next few quarters, the Federal Reserve will purchase large quantities of agency debt and mortgage-backed securities to provide support to the mortgage and housing markets, and said it stands ready to expand its purchases of agency debt and mortgage-backed securities as conditions warrant. According to the statement, the Fed also is "evaluating the potential benefits of purchasing longer-term Treasury securities. Early next year, the Federal Reserve will also implement the Term Asset-Backed Securities Loan Facility to facilitate the extension of credit to households and small businesses. The Federal Reserve will continue to consider ways of using its balance sheet to further support credit markets and economic activity."
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From Wednesday, December 17, 2008 C.A.R. Newsline

Reprinted with permission of the CALIFORNIA ASSOCIATION OF REALTORS®

Calif. median home price - October 08: $311,060(Source: C.A.R.)
Calif. highest median home price by C.A.R. region October 08: Santa Barbara So. Coast $860,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region October 08: High Desert $154,660 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Third Quarter 08: 53 percent (Source: C.A.R.)
Mortgage rates - week ending 12/4/08 3 0-yr. fixed: 5.53% Fees/points: 0.7% 15-yr. fixed: 5.33% Fees/points: 0.7% 1-yr. adjustable: 5.02% Fees/points: 0.5% (Source: Freddie Mac)

From Wednesday, December 10, 2008 C.A.R. Newsline

Reprinted with permission of the CALIFORNIA ASSOCIATION OF REALTORS®

New data shows that more than half of loans modified in the first quarter of 2008 fell delinquent within six months. "After three months, nearly 36 percent of the borrowers had re-defaulted by being more than 30 days past due. After six months, the rate was nearly 53 percent, and after eight months, 58 percent," said U.S. Comptroller of the Currency John C. Dugan. A report scheduled to be published later this month will show continued increasing delinquencies and foreclosures in process for all first-lien mortgages held by the largest national banks and federally-regulated thrifts, Dugan said. However, new foreclosures decreased by 2.6 percent from the second quarter. The mortgage metrics report covers nearly 35 million loans worth more than $6.1 trillion, or about 60 percent of all first-lien mortgages in the United States. The quarterly reports are unique in that they are not merely surveys, but instead consist of validated, loan level data using standardized definitions for prime, Alt-A, and subprime mortgages, and standardized definitions for loan modifications.
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From Wednesday, December 10, 2008 C.A.R. Newsline

Reprinted with permission of the CALIFORNIA ASSOCIATION OF REALTORS®

The delinquency rate for mortgage loans on one-to-four-unit residential properties stood at 6.99 percent of all loans outstanding for the third quarter of 2008, up 58 basis points compared with the second quarter of 2008, and up 140 basis points from the same period one year ago, according to the most recent Mortgage Bankers Association's (MBA) National Delinquency Survey. The percentage of loans in the foreclosure process at the end of the third quarter was 2.97 percent, an increase of 22 basis points compared with the second quarter of 2008 and 128 basis points from one year ago. The percentage of loans on which foreclosure actions were started stood at 1.07 percent in the third quarter, down one basis point from last quarter and up 29 basis points from one year ago. The seasonally adjusted total delinquency rate continues to be the highest recorded in the MBA survey. The increase in the overall delinquency rate was driven by increases in the number of loans 90 or more days past due, primarily in California and Florida. The 30 day delinquency percentage remains below levels seen as recently as 2002. Nevada, Florida, Arizona, California, Michigan, Rhode Island, Illinois, Indiana, and Ohio had rates of foreclosure starts that were above the national average. "As for what is driving the national numbers, it is still a case of product and location," said Jay Brinkmann, MBA's chief economist. "Prime and subprime ARMs continue to have the highest share of foreclosures and California and Florida have about 54 percent and 41 percent of the prime and subprime ARM foreclosure starts respectively. Until those two markets turn around, they will continue to drive the national numbers."
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From Wednesday, December 10, 2008 C.A.R. Newsline

Reprinted with permission of the CALIFORNIA ASSOCIATION OF REALTORS®

Calif. median home price - October 08: $311,060(Source: C.A.R.)
Calif. highest median home price by C.A.R. region October 08: Santa Barbara So. Coast $860,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region October 08: High Desert $154,660 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Third Quarter 08: 53 percent (Source: C.A.R.)
Mortgage rates - week ending 11/26/08 30-yr. fixed: 5.97% Fees/points: 0.7% 15-yr. fixed: 5.74% Fees/points: 0.7% 1-yr. adjustable: 5.18% Fees/points: 0.5%(Source: Freddie Mac)

From Wednesday, December 3, 2008 C.A.R. Newsline

Reprinted with permission of the CALIFORNIA ASSOCIATION OF REALTORS®

The National Bureau of Economic Research on Monday determined that a peak in economic activity occurred in the U.S. in December 2007, and declared the U.S. economy officially in recession since that time. The December 2007 peak marked the end of the expansion that began in November 2001 and lasted 73 months; the previous expansion of the 1990s lasted 120 months. A recession, as defined by the National Bureau of Economic Research, is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in production, employment, real income, and other indicators. A recession begins when the economy reaches a peak of activity and ends when the economy reaches its trough. Between trough and peak, the economy is in an expansion. Because a recession is a broad contraction of the economy, not confined to one sector, the National Bureau of Economic Research emphasizes economy-wide measures of economic activity when determining a recession. "It's more accurate to say that a recession -- the way we use the word -- is a period of diminishing activity rather than diminished activity," the National Bureau of Economic Research said in a prepared statement.
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From Wednesday, December 3, 2008 C.A.R. Newsline

Reprinted with permission of the CALIFORNIA ASSOCIATION OF REALTORS®

Some 48 percent of technology users usually need help from others to set up new devices or to show them how they function, according to a recent study by the Pew Research Center's Internet & American Life Project. According to the report, 44 percent of those with home Internet access say their connection failed to work properly at some time in the previous 12 months; 39 percent of those with desktop or laptop computers have had their machines not work properly at some time in the previous 12 months, and 29 percent of cell phone users say their device failed to work properly at some time in the previous year. "In an age in which new technologies are introduced almost daily, a new gadget or service can become popular well before the technology itself is understood by the average user," said Sydney Jones, co-author of the report. "Naturally, some users catch on to new technology more quickly than others, and those who have more trouble grasping the technology are left confused, discouraged, and reliant on help from others when their technology fails." Adults who are most likely to be impatient to fix their devices are those who had the most devices fail, those who use their devices most, and those who rely more heavily on their devices for work or information, according to the report.
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From Wednesday, December 3, 2008 C.A.R. Newsline

Reprinted with permission of the CALIFORNIA ASSOCIATION OF REALTORS®

Effective Sept. 8, 2008, a new California law impacted the foreclosure timeline. C.A.R.'s Member Legal Services has published a new legal article, "Foreclosure Timeline," addressing trustee's sale foreclosures affected by the new law. "Foreclosure Timeline" will assist members in determining the required timeframe in which to sell a property that is in various stages of the foreclosure process. A simple chart also is included. "Foreclosure Timeline" is available on Legal's "What's New" and the "Legal Articles" pages on car.org.
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From Wednesday, December 3, 2008 C.A.R. Newsline

Reprinted with permission of the CALIFORNIA ASSOCIATION OF REALTORS®

Calif. median home price - October 08: $311,060(Source: C.A.R.)
Calif. highest median home price by C.A.R. region September 08: Santa Barbara So. Coast $860,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region September 08: High Desert $154,660 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Third Quarter 08: 53 percent (Source: C.A.R.)
Mortgage rates - week ending 11/26/08 30-yr. fixed: 5.97% Fees/points: 0.7% 15-yr. fixed: 5.74% Fees/points: 0.7% 1-yr. adjustable: 5.18% Fees/points: 0.5%(Source: Freddie Mac)

From Wednesday, November 26, 2008 C.A.R. Newsline

Reprinted with permission of the CALIFORNIA ASSOCIATION OF REALTORS®