Here is the latest Beyond the Headlines Newsletter from C.A.R.

Real Estate News: Beyond the Headlines from C.A.R.

Los Angeles Times - What do buyers want in a home?
Survey offers clues A recent study of more than 22,000 homeowners who bought their homes within the last nine years found that current homeowners plan to be “more practical” in their next purchase, focusing on livable space rather than unnecessary upgrades.

KEEP THIS IN MIND

Many of the luxury amenities once considered necessities among home buyers, such as community clubhouses, dog parks, golf courses, and 24-hour security, are no longer priorities, according to the survey. Repeat buyers also said a swimming pool isn’t a must, but a children’s playground with walking paths are essential.

One of the takeaways from the survey, according to an architect firm, is that buyers nowadays should rethink space. For example, buyers should look for kitchen cabinets that go all the way to the ceiling for added space and efficiency. They also should pass on high- priced focal stairways, opting instead of steps that are tucked away and out of sight.

Buyers also should be on the lookout for dead space. If the dining room or media room is eliminated, at least some of the square footage should be dedicated to secondary bedrooms. The once-standard 10-by-10 bedroom no longer is acceptable to most buyers.

The survey also found that many buyers have transitioned toward green features, such as high-efficiency appliances, insulation, and windows that are not large areas of glass. However, many buyers did not report the use of recycled materials as a necessity.  Other findings from the survey show that large kitchens, with islands, are desirable, as are main-floor master bedrooms, and two-car garages.
To read the full story, please click here:

http://www.latimes.com/classified/realestate/news/la-fi-lew4-2010apr04,0,2602030.story

In Other News…

The Mercury News - Government launches effort to help homeowners in short sales
The government launched a new effort Monday to speed up the time-consuming often-frustrating process of selling your home if you owe more than it’s worth.
To read the full story, please click here:

http://www.mercurynews.com/real-estate-news/ci_14823039

The Wall Street Journal - Hold your breath: Borrowers could stay “underwater” for years

So-called “underwater” homeowners who owe more than their homes are worth could be holding their breath for much of the next decade.  To read the full story, please click here:

http://blogs.wsj.com/developments/2010/04/01/hold-your-breath-borrowers-could-stay-underwater- for-years/

The Sacramento Bee  California expected to cancel tax on forgiven mortgage debt
Relief appears imminent for thousands of Sacramento homeowners hit with state tax bills for mortgage debts forgiven in 2009.
To read the full story, please click here:

http://www.sacbee.com/2010/04/06/2657410/california-expected-to-cancel.html

Los Angeles Times - Sales of contracts for previously owned homes rise 8.2 percent in February

The number of previously owned homes placed under sales contract surged 8.2 percent in February, according to data released Monday, the first sign that the government’s extended tax credit for buyers may bolster sales this spring.  To read the full story, please click here:

http://www.latimes.com/business/la-fi-home-sales6-2010apr06,0,5038223.story

The Wall Street Journal - Cash dwindling for no-money down home loan program
A program from the Department of Agriculture’s rural development division, which offers no-money- down loans in certain parts of the country for low- and middle-income borrowers, is likely to run out of funding next month, just as a surge of buyers are expected to ink deals before the federal tax- credit expires April 30.
To read the full story, please click here:

http://blogs.wsj.com/developments/2010/03/25/cash-dwindling-for-no-money-down-home-loan- program/

CNN Money - With caution, Americans still want a house

Nearly two-thirds of American would still prefer to own a home, although the recent housing market turmoil and uncertain economy have made them a little more cautious about how and when, according to a survey released Tuesday. To read the full story, please click here:

http://money.cnn.com/2010/04/06/real_estate/FannieMae_homeowner_survey/index.htm

The Wall Street Journal - Homeownership for everyone?
With the subprime market in ruins, affordable housing advocates are looking at new ways to promote responsible homeownership for low- and moderate-income families. While many policy makers would resign low- and moderate-income families to rental housing, a new study makes a case for keeping the door open to homeownership at all income levels.
To read the full story, please click here:

http://blogs.wsj.com/developments/2010/04/01/homeownership-for-everyone/

The Wall Street Journal  Housing market watchers say builders are now strenuously working to win the hearts—and checkbooks—of female buyers.
To read the full story, please click here:

http://online.wsj.com/article/SB10001424052702304871704575160112777930360.html?mod=WSJ _Real+Estate_LeftTopNews

Leslie Appleton-Young, vice president and chief economist for the California Association of Realtors (C.A.R.) has come out with her prediction for 2010.

Actually, this is an updated forecast.  She made her original forecast in October 2009.

U.S. Economy Statistics

As part of her analysis, a chart of the condition of the US Economy shows hope for 2.7% growth although unemployment is forecast to reach 10.0%.  Coming off a -2.4% growth in 2009, that’s quite a turn-around.

California economy statistics

Next, a chart of the California economy is presented.  California is going through rough times.  The state is broke and can’t raise taxes for fear of making the situation worse.

Unemployment of 12.1% is forecast and that makes any recovery much more difficult.

The chart shows a forecast for negative growth of -1.1% but that looks rather favorable coming on the heals of -6% growth in 2009.

California Housing Market Outlook

Finally, we come to the California Housing Market Outlook.  I’m surprised by a couple of the predictions made by Leslie Appleton-Young.

She is forecasting home sales of 527,500 units, down from 2009 but much higher than 2008.  I’m not sure who is in the home buying mood these days.  In my own area, sales volume has been low.

Perhaps the most startling prediction is for 9.1% price growth in 2010.  I know prices have been pummeled over the past couple years, as indicated on the chart by price changes of -38.2% in 2008 and another -20.6% decline in 2009, but what will make prices rise in 2010?

Interest rates are definitely low, and that helps.  But sales have already been aided by that and by home buyer credits, so when the credits go away it seems that homes will be harder to sell.

I guess the key thing to keep in mind is that Leslie Appleton-Young works for C.A.R. and I think it’s in the job description that you must be an extreme optimist.  The C.A.R. and National Association of Realtors (N.A.R.) predictions always seem to be optimistic.

So far this year in my area I’ve seen some gains in the upper-middle-class income housing, but declines in the lower income and high-end properties.  I think it will be tough to hit that 9.0% price gain.

Your thoughts are welcome.  Please make a comment.

For more interesting statistics, refer to my website: www.philipmccollum.com

In 2009 the California housing market showed significant signs that the worst may be over. Sales continued to grow, and although the annual median price decreased, the rate of decline was smaller than the previous year. Moreover, November experienced the first year-over-year growth in monthly price since August 2007.

Annual Sales Kept Their Strong Momentum in 2009

California Sales by Price Range

Preliminary sales remained strong in December at 558,320 (seasonally adjusted annualized rate), increasing 23.7 percent year-to-date, 4.0 percent month-over-month and 1.7 percent year-over-year. Annual preliminary sales maintained their momentum at 546,690, also rising 23.7 percent from 441,810 in 2008. The mix of sales reflected a troubled economy and a housing market dominated by distressed sales, with homes under $500,000 making up the majority of sales (78.3 percent on average), while homes in the $500,000 to $999,999 range made up only 17 percent on average and those over $1 million consisted of 4.6 percent of sales. When compared to just four years prior, the difference was striking. In 2005 homes under $500,000 consisted of 48.1 percent of sales on average, while homes in the $500,000 to $999,999 range made up 43.2 percent on average and those over $1 million consisted of 8.7 percent of sales.

Prices Ended 2009 on a Good Note

California Home Sales Rate and Median Price

Prices ended the year on a good note with a preliminary December median of $306,820, an 8.4 percent year-over- year rise, continuing the trend of month-over-month gains that started in March. The preliminary annual median price fell 21.1 percent to $274,960, but the rate of decrease was less than the 37.8 percent fall in the annual median price in 2008. The slower pace of the decline is a good sign that the housing market is turning around and will continue with positive activity in 2010.

The year 2009 turned out to be a turning point in the housing market, with many signs of improvement: sales grew, the inventory levels shrank, and the median price decreased at a lower pace than in 2008 and showed positive year-over-year growth for the first time in two years. These are good indicators of anticipated improved conditions in the real estate market in 2010.

For more real estate related information, visit www.philipmccollum.com

Long Beach, California

Long Beach Real Estate Prices for Bixby Knolls and Nearby Areas

Listed below are the sold home prices for the Long Beach Bixby area for February 2010.

Not too many sales in February.

Continuing the recent trend.

This should be extremely useful information for anyone looking to buy or sell in the Long Beach Bixby area.

This area includes Bixby Knolls, Bixby Highlands, New Bixby, California Heights, Ridgewood Heights, Los Cerritos, and the Virginia Country Club.

For additional details, visit www.philipmccollum.com

Long Beach Bixby Area Sold Home Prices for February 2010

April 1, 2010  Long Beach, California

Real Estate News: Beyond the Headlines from C.A.R.

The California Association of Realtors has just released their latest Beyond the Headlines report to keep California home buyers and sellers up to date on recent developments in the real estate market.  The Beyond the Headlines report provides articles published in the past week of great interest to real estate market watchers.

This publication features articles from prominent sources including The New York Times, The Washington Post, The Wall Street Journal, The San Francisco Chronicle, The Sacramento Bee, The Mercury News, MSN Money, and others.

Access the California Real Estate Weekly update for April 1, 2010

Whether you are a buyer or seller of real estate, and irrespective of your timeframe, be it today, next week, next month, or many months into the future, you need to understand the trends taking place in the real estate market and understand the powerful influences on the market.

Access the California Real Estate Weekly update for April 1, 2010

The Beyond the Headlines publication makes it easy by gathering highly relevant and timely articles and presenting them in one easy to read format.

I’m sure you’ll benefit from reading the articles provided every week, so without further ado let me identify the topic covered in the latest newsletter.

Visit  www.philipmccollum.com for more real estate information.