Jim Guido's Blog

The California Association has reported that California’s housing market displayed a glimmer of recovery during October as pending sales increased for the sixth consecutive month.

The number of open escrows, a measure of future sales activity, jumped 11 percent in October from a year earlier and rose 3 percent from September.

It appears that home sales are likely to be up in the next couple of months. The report states that they are  not anticipating a decline in sales but they’re  not looking for any sort of a dramatic increase.

Home sales statewide this year should be in the 490,000 range and  California is grinding through sales at a pretty decent clip.

The association’s report came on the same day that the National Association of Realtors reported an annualized sales rate of 4.97 million homes in October, up 1.4 percent from September and 13.5 percent from a year ago.

Sales in the west rose 4 percent to an annual pace of 1.19 million in October, which is 15.5 percent higher than a year earlier.

It was also reported that sales in California increased 8.5 percent from a year earlier and rose 1 percent from September to an annualized rate of 493,240 properties.

It was also noted that the conforming loan limit just went back up to $729,500, which could stimulate activity at the higher end of the market.

Another good sign is that some lenders are moving quicker in approving short sale transactions.

Sales of distressed properties also appear to be stabilizing, according to the association.

Last month, foreclosed or abandoned properties accounted for 44.8 percent of sales, up from 44.5 percent in September but down from 46.1percent a year earlier.

San Jose, 95125 Summary

The median sales price for homes in ZIP code 95125 for Aug 11 to Oct 11 was $625,000. This represents a decline of 0.7%, or $4,500, compared to the prior quarter and a decrease of 3% compared to the prior year. Sales prices have depreciated 15.4% over the last 5 years in 95125, San Jose. The median sales price of $625,000 for 95125 is 58.23% higher than the median sales price for San Jose CA. Average listing price for homes on Trulia in ZIP code 95125 was $757,083 for the week ending Nov 09, which represents a decline of 1%, or $8,002 compared to the prior week and a decline of 2.7%, or $21,263, compared to the week ending Oct 19. Average price per square foot for homes in 95125 was $387 in the most recent quarter, which is 32.53% higher than the average price per square foot for homes in San Jose.

95125, San Jose Recently Sold Homes

95125, San Jose Homes For Sale

A report released today shows that home prices rose in August in half of major U.S. cities  as measured by a private survey. This news is a sign that prices are stabilizing in some hard-hit portions of the country.

The Standard & Poor’s/Case-Shiller index is showing that home prices increased in August from July in 10 of the 20 cities it tracks.  That marked the fifth straight month that at least half of the cities in the survey showed monthly gains.

The report also showed that the biggest price increases were in Washington, Chicago and Detroit. The greatest declines were in Atlanta and Los Angeles.

This data from August provides a modest glimmer of hope that some areas may have bottomed out and could be turning around. Also noted is that cities in the Midwest — Chicago, Detroit and Minneapolis — have shown some strength since May.

Still overall home prices were flat and a recovery in the struggling housing market may not be on the horizon.

Over the past 12 months, prices have fallen in all but two cities. Detroit and Washington were the only two cities to show year-over-year gains.

The index, which covers half of all U.S. homes, measures prices compared with those in January 2000 and creates a three-month moving average. The August data are the latest available.

It is also possible that prices may fall again once banks resume millions of foreclosures that have been delayed because of a yearlong government investigation into mortgage lending practices. Those homes that are at risk of foreclosure will most likely keep pressure on prices for some time.

The governments latest attempt to address the ailing housing market was announced on Monday with changes to a federal program that will make it easier for struggling homeowners to refinance to today’s near-record low rates.

The new program will allow some homeowners,  who owe more on their homes than they are worth, to refinance no matter how much they are underwater, as long as they are current on their payments.

It is estimated that 1 million homeowners could get cheaper mortgages as a result based on official estimates.

The revamped Home Affordable Refinance Program (HARP) will also streamline the refinancing process by doing away with certain types of appraisals and underwriting requirements, and reducing or eliminating fees that prevented homeowners from refinancing in the past.

Also reported is that 890,000 homeowners have already refinanced under HARP, which is available to borrowers with loans backed by Fannie Mae and Freddie Mac originated before May 31, 2009.

Unfortunately there are hundreds of thousands more could not qualify and mainly because of the previous 125% loan-to-value limit on the program or because banks would not take on the risk.

Currently count is about 11 million borrowers are underwater on their mortgages, with about 4.7 million of those loans meeting or exceeding the 125% loan-to-value limit. By the time HARP expires in 2013, the federal housing agency estimates, up to 1 million more borrowers may benefit from the new regulations.

Many of those borrowers will be from states like Florida, California, Nevada and Arizona where home values have been hit the hardest. In metro areas like Las Vegas, for example, prices have plunged nearly 60% from their early-2006 peak.

The new rules and other details have yet to be finalized, but FHFA said that should all be worked out by Nov. 15. Banks may be able to start issuing refinanced loans by Dec. 1.