Where California goes, eventually, the rest of the country follows. That’s why it appears to be good news that the state’s home sales rose more than 7 percent in June compared with May, according to real estate tracking firm MDA DataQuick.

Median prices declined about 3 percent. DataQuck says that’s because foreclosures remain high — but down from what they were — and speculative buying continues.

“The next few months should be very interesting,” DataQuick President John Walsh says. “We’re about to see how well the housing market can fly on its own. The tax credits no doubt stole some demand from the rest of this year, and soon we’ll see have a better sense of just how much.”

Source: Associated Press (07/15/2010)

The housing bust that began among the working class in remote subdivisions and quickly progressed to the suburban middle class is striking the upper class in privileged enclaves. Read the entire story from the New York Times, CLICK HERE

Many home buyers today not only take into consideration the neighborhood and school in which a house is located, but also which amenities, such as stores and public transportation, are within walking distance.

According to urban planners, changing demographics are driving this growing trend. The baby boomer generation is approaching empty-nest retirement age, while their children are buying their first homes; neither group wants large lots in remote areas with little access to big-box stores, public transportation, and entertainment. Concerns about future oil prices also are increasing the attractiveness of walkable communities, according to planners.

Home buyers interested in finding homes in walkable communities can use myriad Web sites; one commonly used site is WalkScore.com. The site enables users to enter an address and receive a score ranging from zero to 100 (“car dependent” to “walkers paradise”) indicating the walkability of the community.

Housing prices also are reflecting the new interest in walking distances. A study published by the nonprofit group CEOs for Cities found having more amenities in walking distance can boost home values. As measured on Walk Score, walking-distance amenities raised values by as much as $3,000 for each one-point increase in rankings.
To read the full story, please click here.

The economy is normalizing with only 1 percent of those in a recent survey saying they were moving because they lost their home to foreclosure, according to Relocation.com, which has been tracking people who move for the last year using a series of surveys.

In February of this year, a survey found 5 percent of respondents saying that was the case.

Also in February, 13 percent of respondents said they were moving because of job loss, but in June only 4 percent moved for that reason.

In the June survey, 4 percent said they planned to purchase a first home when they moved, while 10 percent said they planned to move to a better home in a nicer neighborhood.

Some 18 percent of June movers were previous homeowners who moved and were purchasing a new home, up from 12 percent in February, while 12 percent were former renters who planned to purchase a home in the new locale.

Source: Relocation.com (07/07/2010)

This was a surprise to me to see that Napa ranked so highly. I know that it’s highly desirable but I wouldn’t thought it was that affordable.
The real estate downturn has turned some very popular retirement destinations into bargains.

To determine where the prices are most attractive, U.S. News & World Report examined price-to-income data for 384 metropolitan statistical areas. This expresses the relationship between owner income and home values.

Here are 10 retirement havens where homes are most affordable by this measure:

1. Bend, Ore.
2. Napa, Calif.
3. Fort Meyers, Fla.
4. Fayetteville, Ark.
5. Las Vegas
6. Sante Fe, N.M.
7. Punta Gorda, Fla.
8. Phoenix
9. Santa Cruz, Calif.
10. Burlington, Vt.

International home buyers are increasingly attracted to property in the U.S., according to the National Association of REALTORS®’ 2010 Profile of International Home Buying Activity. Several factors, including the strength of the dollar, the value and desirability of U.S. real estate, and the emerging economic recovery, continue to drive international interest in owning a home in this country.

“While all real estate in the U.S. is local, the same is not true for property owners,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox Real Estate in Tucson, Ariz. “The U.S. continues to be a top destination for international buyers from all over the world. Foreign buyers understand the value of owning a home in this country and can rely on REALTORS® to help guide them through the complex process of buying property in the U.S. With expertise, knowledge and experience, REALTORS® have a global perspective.”

The survey, released today, covers the period between April 1, 2009, and March 31, 2010. During that time foreign buyers, including those with residency outside the U.S. as well as recent immigrants and temporary visa holders, are estimated to have purchased $66 billion of U.S. residential property, or 7 percent of the residential market.

Slightly more than a quarter of REALTORS®, 28 percent, reported working with at least one international client in the past year. This is a significant increase from the 2009 report, when 23 percent of REALTORS® worked with foreign clients. Eighteen percent of all REALTORS® were estimated to have completed at least one sale, compared to 12 percent last year.

“Several factors have contributed to an increase in international buyer interest in the U.S.,” said Golder. “A large majority of REALTORS® report the changes in value to the U.S. dollar have had a strong impact on the international real estate business. In addition, perceptions abroad about trends in the U.S. real estate market have led many international clients to believe purchasing a home in the U.S. is more affordable than in their country and holds more value.”

International buyers came from 53 different countries around the world. The top four countries were Canada, Mexico, the U.K. and China/Hong Kong. With 23 percent of international buyers coming from Canada, the country has remained the largest buying group in the past three years. Foreign buyers from Mexico have been steadily increasing. In 2010 Mexico replaced the U.K. as the second largest buying group with 10 percent of buyers. Buyers from the U.K. buyers decreased from 10.5 percent in 2009 to nine percent in 2010. Eight percent of recent buyers came from China/Hong Kong.

Two factors important to international clients when purchasing property in the U.S. are proximity to their home country and the convenience of air transportation. Florida typically attracts European, Canadian and South American buyers while the East Coast draws Europeans. The West Coast brings Asian buyers and the Southwest attracts Mexicans.

International buyers were reported in 39 states in 2010, but a slight majority of the total buyers are concentrated in Florida, California, Arizona and Texas. These four states account for 53 percent of purchases and have remained the top destinations for the past three years, with Florida and California remaining the top two destinations.

The median price paid by international buyers for a home in the U.S. was $219,400, a decrease from 2009’s median price of $247,100. However, the median price paid by foreign buyers was significantly higher than the overall median market price, which was $172,500 in 2009. On average, foreign buyers tend to purchase closer to the upper end of the market; 16 percent of the total international purchases were for homes priced at more than $500,000. According to REALTORS®, this was because international buyers are typically looking for a second home.

A majority of international buyers, 66 percent, purchased single-family detached homes. However, more international buyers purchased a condo than did their U.S. counterparts, at 23 percent and 7 percent, respectively. Only 44 percent of international buyers used a mortgage to pay for their home, compared to 92 percent of domestic buyers. Fifty-five percent of foreign buyers paid all cash. REALTORS® reported that a majority of international buyers use all cash because of the difficulty in establishing international credit in the U.S. Over one-third, 34 percent, of potential foreign buyers was unable to complete transactions because of financing problems in the U.S.

Source: NAR

The average interest on a 30-year fixed mortgage dipped to a new record low of 4.57 percent this week — down from 4.58 percent a week ago, according to Freddie Mac, which began tracking rates in 1971.

Still, the low rates may not provide much of a boost for the housing market because many people do not qualify for new mortgages or have already obtained loans at low rates this year.

Source: Indianapolis Star (07/09/10)

According to the president of the Marin Association of Realtors, home sales in the county are on the rise.

A bill has been approved by the Congress, which will allow homebuyers to extend the closing deadline, in order to make use of the tax credit. Homeowners who signed contracts by the 30th of April, but couldn’t close the deal even a month later, have now been given up to the 30th of September to complete the deal.

The bill will now have to be signed by US president Obama after the House of Representatives on Tuesday. People who are buying homes for the first time have tax credit of $8,000 and other people who are purchasing a new primary residence have been given a tax credit of $6,500. Hopefully these new measures would bring some cheer to the homeowners.