Source: The Business Journal
The Fresno Housing Authority plans to utilize a line of credit to maintain its programs in the event that Congress fails to pass a budget plan or continuing resolution prior to October 1 and a government shutdown ensues.
The authority reports that it fully intends, to the best of its ability, to continue the core operations of providing services to residents, landlords and public partners.
However, under a shutdown, primary funders may be unable to authorize normal funding distributions due to the suspension of operations at the federal level. While distributions will be released once legislation is adopted, there may be a need to utilize short-term alternatives to essentially cover the funds held in suspense due to federal closure.
Fortunately, the Fresno Housing Authority is in a position that will enable the agency to cover funding delays for a short period if a government shutdown does occur.
“Last night our Board of Commissioners authorized a line of credit that would enable the agency to continue operations in the event of a short term government shutdown,” said Preston Prince, CEO and executive director of the Fresno Housing Authority. “This is an unfortunate situation for all government agencies.”
Meanwhile, the U.S. Department of Housing and Urban Development has informed some agencies that they should be prepared to cover any funding delays as a result of the end of the fiscal year and in the event that a continuing Resolution cannot be passed by September 30.
HUD has already requested that the Fresno Housing Authority provide temporary gap funding in the amount of $1.7 million during the first week of October to cover housing assistance payments to landlords participating in the Section 8 program.
While delays in the passage of the federal budget are not uncommon, they have not resulted in an actual government shutdown since the 1996 federal budget negotiations. Pressure on Congressional representatives is continuing to increase and many expect that legislators will pass a continuing resolution in order to avoid the fiscal and political implications of not acting in time.
URL to original article: http://www.thebusinessjournal.com/news/banking-and-finance/8937-housing-authority-receives-line-of-credit
For further information on Fresno Real Estate check: http://www.londonproperties.com
Friday, September 27, 2013
Thursday, September 26, 2013
Fixed mortgage rates fall to a nine-week low
Source: Housingwire
QE3 continuation caused the drop
By: Christina Mlynski
Fixed mortgage rates fell to a nine-week low this past week, following the Federal Reserve's announcement that it will maintain its bond-buying program to keep homebuyer affordability elevated. The 30-year, fixed-rate mortgage posted its lowest level since the week ending July 25. The 30-year, FRM came in at 4.32%, down from 4.50% last week, but up from 3.40% last year, Freddie Mac said in its Primary Mortgage Market Survey. The 15-year, FRM decreased to 3.37%, down from 3.54% last week and a steep rebound from 2.73% last year. Meanwhile, the 5-year Treasury-index adjustable-rate mortgage averaged 3.07%, down from 3.11% last week and an increase from 2.71% a year ago. Additionally, the 1-year Treasury-index ARM declined to 2.63%, down from 2.65%, but up from 2.60% a year earlier. "Mortgage rates fell following the Federal Reserve announcement that it will maintain its bond-buying stimulus," said Frank Nothaft, vice president and chief economist for Freddie Mac. He added, "These low rates should somewhat offset the house price gains seen the last number of months and keep housing affordability elevated. For instance, the S&P/Case-Shiller 20-city composite house price index rose 12.4% over the 12-months ending in July, which represented the largest annual increase since February 2006. In addition, more than half of the cities had annual growth exceeding 10% and four cities saw increases exceeding 20%." Bankrate data also show mortgage rates falling to a three-month low. Bankrate’s 30-year, FRM dropped to 4.47% from 4.66% a week earlier. In addition, the 15-year, FRM decreased to 3.53%, down from 3.7%, while the 5/1 ARM dropped to 3.41% from 3.55%. Bankrate senior financial analyst Greg McBride also attributed the continued decline in mortgage rates to the Fed’s decision to not begin tapering its monetary stimulus. "Mortgage rates will likely resume their upward march when the Fed does inevitably begin their tapering," McBride said. He continued, "With the looming debt ceiling and the government debate, the Fed wanted to make sure Congress didn’t run the economy off the rails in October." However, according to the Federal Housing Finance Agency, mortgage rates continued their upward trend in August, with the contract mortgage interest rate increasing slightly by 0.25% to 4.35%. Additionally, the average interest rate on a conventional, 30-year, FRM of $417,000 or less hit 4.49% in August, the FHFA reported. The average loan amount in the latest FHFA report was $274,500 in August, down from $278,000 in July.
URL to original article: http://www.housingwire.com/articles/27068-fixed-mortgage-rates-fall-to-a-nine-week-low
For further information on Fresno Real Estate check: http://www.londonproperties.com
QE3 continuation caused the drop
By: Christina Mlynski
Fixed mortgage rates fell to a nine-week low this past week, following the Federal Reserve's announcement that it will maintain its bond-buying program to keep homebuyer affordability elevated. The 30-year, fixed-rate mortgage posted its lowest level since the week ending July 25. The 30-year, FRM came in at 4.32%, down from 4.50% last week, but up from 3.40% last year, Freddie Mac said in its Primary Mortgage Market Survey. The 15-year, FRM decreased to 3.37%, down from 3.54% last week and a steep rebound from 2.73% last year. Meanwhile, the 5-year Treasury-index adjustable-rate mortgage averaged 3.07%, down from 3.11% last week and an increase from 2.71% a year ago. Additionally, the 1-year Treasury-index ARM declined to 2.63%, down from 2.65%, but up from 2.60% a year earlier. "Mortgage rates fell following the Federal Reserve announcement that it will maintain its bond-buying stimulus," said Frank Nothaft, vice president and chief economist for Freddie Mac. He added, "These low rates should somewhat offset the house price gains seen the last number of months and keep housing affordability elevated. For instance, the S&P/Case-Shiller 20-city composite house price index rose 12.4% over the 12-months ending in July, which represented the largest annual increase since February 2006. In addition, more than half of the cities had annual growth exceeding 10% and four cities saw increases exceeding 20%." Bankrate data also show mortgage rates falling to a three-month low. Bankrate’s 30-year, FRM dropped to 4.47% from 4.66% a week earlier. In addition, the 15-year, FRM decreased to 3.53%, down from 3.7%, while the 5/1 ARM dropped to 3.41% from 3.55%. Bankrate senior financial analyst Greg McBride also attributed the continued decline in mortgage rates to the Fed’s decision to not begin tapering its monetary stimulus. "Mortgage rates will likely resume their upward march when the Fed does inevitably begin their tapering," McBride said. He continued, "With the looming debt ceiling and the government debate, the Fed wanted to make sure Congress didn’t run the economy off the rails in October." However, according to the Federal Housing Finance Agency, mortgage rates continued their upward trend in August, with the contract mortgage interest rate increasing slightly by 0.25% to 4.35%. Additionally, the average interest rate on a conventional, 30-year, FRM of $417,000 or less hit 4.49% in August, the FHFA reported. The average loan amount in the latest FHFA report was $274,500 in August, down from $278,000 in July.
URL to original article: http://www.housingwire.com/articles/27068-fixed-mortgage-rates-fall-to-a-nine-week-low
For further information on Fresno Real Estate check: http://www.londonproperties.com
Wednesday, September 25, 2013
Clovis school earns prestigious award
Source: The Business Journal
James S. Fugman Elementary School in Clovis was selected as one of only 236 public schools in the nation to receive the U.S. Department of Education's National Blue Ribbon Schools award. The award, which recognizes schools for academic excellent or progress in improving student academic achievement, was bestowed on just 13 schools throughout California this year. Fugman Elementary, located at 10825 N. Cedar Ave., was Fresno County's only recipient. It is the first time the school will be named to the National Blue Ribbon list. Fugman Elementary enrolls approximately 745 students in the Clovis Unified School District. Recipients of the 2013 awards will be named during a recognition ceremony in Washington D.C. in November. Since launching in 1982, the National Blue Ribbon Schools program has awarded nearly 7,500 schools across the nation for academic performance. Past winners in the Central Valley include Bullard TALENT Elementary, Chester Nelson Elementary, Clovis High School, Clovis East High School, Clovis West High School, Centerville Elementary, Dry Creek Elementary, Edison Computech, Fort Washinton Elementary, Garfield Elementary, George W. Kastner Intermediate, Gettysburg Elementary, Liberty Elementary, Lincoln Elementary, Jefferson Elementary, John S. Wash Elementary, Mountain View Elementary, Manchester GATE Elementary, McCardle Elementary, Miramonte Elementary, Red Bank Elementary, Saint Anthony's Catholic School, Sanger Academy Charter School and Valley Oak Elementary.
URL to original article: http://www.thebusinessjournal.com/news/education/8891-clovis-school-earns-prestigious-award
For further information on Fresno Real Estate check: http://www.londonproperties.com
James S. Fugman Elementary School in Clovis was selected as one of only 236 public schools in the nation to receive the U.S. Department of Education's National Blue Ribbon Schools award. The award, which recognizes schools for academic excellent or progress in improving student academic achievement, was bestowed on just 13 schools throughout California this year. Fugman Elementary, located at 10825 N. Cedar Ave., was Fresno County's only recipient. It is the first time the school will be named to the National Blue Ribbon list. Fugman Elementary enrolls approximately 745 students in the Clovis Unified School District. Recipients of the 2013 awards will be named during a recognition ceremony in Washington D.C. in November. Since launching in 1982, the National Blue Ribbon Schools program has awarded nearly 7,500 schools across the nation for academic performance. Past winners in the Central Valley include Bullard TALENT Elementary, Chester Nelson Elementary, Clovis High School, Clovis East High School, Clovis West High School, Centerville Elementary, Dry Creek Elementary, Edison Computech, Fort Washinton Elementary, Garfield Elementary, George W. Kastner Intermediate, Gettysburg Elementary, Liberty Elementary, Lincoln Elementary, Jefferson Elementary, John S. Wash Elementary, Mountain View Elementary, Manchester GATE Elementary, McCardle Elementary, Miramonte Elementary, Red Bank Elementary, Saint Anthony's Catholic School, Sanger Academy Charter School and Valley Oak Elementary.
URL to original article: http://www.thebusinessjournal.com/news/education/8891-clovis-school-earns-prestigious-award
For further information on Fresno Real Estate check: http://www.londonproperties.com
So far, the housing recovery is on track
Source: Housingwire
Housing Recovery Seems Still on Track
By SHAILA DEWAN - The New York Times
The housing market, one of the main drivers of the economic recovery, continues to gain strength despite the drag of rising mortgage rates and other economic headwinds, but some analysts are worried that it may slow in the months ahead. For now, though, builders are building, sellers are selling and mortgage lenders are less nervous about extending credit to buyers. The heady price increases in the first half of the year slowed a bit in July, according to data released on Tuesday. But in the face of pent-up demand and emboldened consumers, home values were still heading upward at a healthy pace, rising 12.4 percent from July 2012 to July 2013, according to the Standard & Poor’s Case/Shiller home price index, which tracks sales in 20 cities. A separate index of mortgages backed by Fannie Mae and Freddie Mac showed an 8.8 percent gain in prices over the same time period. Two national homebuilders, Lennar and KB Home, reported significant revenue growth and profits in the third quarter. Lennar said its third-quarter earnings rose 39 percent over the third quarter of last year, and KB said its profit had increased sevenfold. “We still have a lot of young people that are going to start moving out and forming households and we’re going to have to find housing for them,” said Patrick Newport, the chief United States economist for IHS Global Insight. “There are shortages of homes just about everywhere.” Higher home prices help the economy not just by strengthening the construction and real estate industries, but by making homeowners feel wealthier and more likely to spend. While the number of Americans who lost the equity in their homes in the housing crash set records, rebounding prices have helped nudge more and more households back above water. According to CoreLogic, 2.5 million households regained equity in their homes in the second quarter. Mr. Newport said the full effects of higher mortgage rates had probably not shown up in the numbers yet. Rates increased from about 3.4 percent on 30-year fixed-rate loans in January to about 4.4 percent in July, according to a survey by Freddie Mac, and many loans were written at even higher rates this summer. But they remain well below typical rates in recent decades, and mortgage borrowing costs have already eased a bit from their recent peak now that the Federal Reserve opted last week not to begin a wind-down of stimulus measures. Rising rates may not torpedo the housing market recovery, but they have made refinancing much less appealing. The number of mortgage applications for purchases has climbed by 7 percent over the last year, according to the Mortgage Bankers Association, but refinance requests have fallen by 70 percent since early May. As a result, banks have laid off thousands of workers in their mortgage units. Citigroup laid off 1,000 workers from its mortgage business, it said on Monday, following Wells Fargo and Bank of America, which have both done layoffs in recent months. Refinancing also gave households more spending power as it lowered monthly payments. Analysts offered a cornucopia of reasons for the continuing strength of the housing market: people rushing to buy before prices and interest rates increased further, a gradual relaxation of lending standards, an uptick in inventory, a smaller share of foreclosures in the sales stream and large-scale buying by investors looking to put houses on the rental market. Still, some analysts questioned whether fundamental factors like job and wage growth would sustain the market and restore first-time buyers to the market. Others warned of a lurking shadow inventory. “While recent results have been considerably better than those seen earlier in the cycle, and also better than we had anticipated, we have not given up on the argument that a large supply overhang of existing homes (factoring in all those in foreclosure or soon to be) promises to keep pressure on prices for some time,” Joshua Shapiro, the chief United States economist for MFR, wrote in a note to investors. Once the backlog of demand is absorbed, continued strength will depend heavily on consumer confidence. That’s where politics, including a looming battle over federal spending and the debt ceiling, could stall improvement. “The real test will come over the next few months, given the sharp drop in mortgage demand and the potential for a rollover in consumers’ confidence as Congress does its worst,” wrote Ian Shepherdson, an economist with Pantheon Macroeconomics. On Tuesday, the Conference Board, a New York-based private research group, reported that Americans’ confidence in the economy fell slightly in September from August, as many became less optimistic about hiring and pay increases over the next six months. The September reading dropped to 79.7, down from 81.8 the previous month, but remained only slightly below June’s reading of 82.1, the highest in five and a half years. Year-over-year prices were up in all 20 cities tracked by Case/Shiller, but the gains varied widely, from 3.5 percent in New York and 3.9 percent in Cleveland on the low end to a frothy 24.8 percent in San Francisco and 27.5 percent in Las Vegas. The month-to-month increase in the Case/Shiller index slowed to 0.6 percent, after gains of 1.7 percent in April, 0.9 percent in May and 0.9 percent in June. Asked if the slowdown in growth was alarming, Robert Shiller, the Yale economist who helped develop the home price index, said no. “I’m not worried,” he said in an interview with CNBC. “I think that would be a good thing.” His greater worry, he said, was “more about a bubble — in some cities, it’s looking bubbly now.” Still, Mr. Shiller said, even the bubbliest markets were still well below their peak. Other analysts raised the same point. Prices in San Francisco are still only at 2004 levels, cautioned Steve Blitz, chief economist for ITG Investment Research. “For those who bought and still hold homes in 2005, ’06 and ’07, they may still be in a negative equity position, depending on the terms of their mortgage,” Mr. Blitz wrote. “Don’t let those double-digit year-over-year percentage gains bias opinion to believe all is all right.”
URL to original article: http://www.housingwire.com/articles/27040-so-far-the-housing-recovery-is-on-track
For further information on Fresno Real Estate check: http://www.londonproperties.com
Housing Recovery Seems Still on Track
By SHAILA DEWAN - The New York Times
The housing market, one of the main drivers of the economic recovery, continues to gain strength despite the drag of rising mortgage rates and other economic headwinds, but some analysts are worried that it may slow in the months ahead. For now, though, builders are building, sellers are selling and mortgage lenders are less nervous about extending credit to buyers. The heady price increases in the first half of the year slowed a bit in July, according to data released on Tuesday. But in the face of pent-up demand and emboldened consumers, home values were still heading upward at a healthy pace, rising 12.4 percent from July 2012 to July 2013, according to the Standard & Poor’s Case/Shiller home price index, which tracks sales in 20 cities. A separate index of mortgages backed by Fannie Mae and Freddie Mac showed an 8.8 percent gain in prices over the same time period. Two national homebuilders, Lennar and KB Home, reported significant revenue growth and profits in the third quarter. Lennar said its third-quarter earnings rose 39 percent over the third quarter of last year, and KB said its profit had increased sevenfold. “We still have a lot of young people that are going to start moving out and forming households and we’re going to have to find housing for them,” said Patrick Newport, the chief United States economist for IHS Global Insight. “There are shortages of homes just about everywhere.” Higher home prices help the economy not just by strengthening the construction and real estate industries, but by making homeowners feel wealthier and more likely to spend. While the number of Americans who lost the equity in their homes in the housing crash set records, rebounding prices have helped nudge more and more households back above water. According to CoreLogic, 2.5 million households regained equity in their homes in the second quarter. Mr. Newport said the full effects of higher mortgage rates had probably not shown up in the numbers yet. Rates increased from about 3.4 percent on 30-year fixed-rate loans in January to about 4.4 percent in July, according to a survey by Freddie Mac, and many loans were written at even higher rates this summer. But they remain well below typical rates in recent decades, and mortgage borrowing costs have already eased a bit from their recent peak now that the Federal Reserve opted last week not to begin a wind-down of stimulus measures. Rising rates may not torpedo the housing market recovery, but they have made refinancing much less appealing. The number of mortgage applications for purchases has climbed by 7 percent over the last year, according to the Mortgage Bankers Association, but refinance requests have fallen by 70 percent since early May. As a result, banks have laid off thousands of workers in their mortgage units. Citigroup laid off 1,000 workers from its mortgage business, it said on Monday, following Wells Fargo and Bank of America, which have both done layoffs in recent months. Refinancing also gave households more spending power as it lowered monthly payments. Analysts offered a cornucopia of reasons for the continuing strength of the housing market: people rushing to buy before prices and interest rates increased further, a gradual relaxation of lending standards, an uptick in inventory, a smaller share of foreclosures in the sales stream and large-scale buying by investors looking to put houses on the rental market. Still, some analysts questioned whether fundamental factors like job and wage growth would sustain the market and restore first-time buyers to the market. Others warned of a lurking shadow inventory. “While recent results have been considerably better than those seen earlier in the cycle, and also better than we had anticipated, we have not given up on the argument that a large supply overhang of existing homes (factoring in all those in foreclosure or soon to be) promises to keep pressure on prices for some time,” Joshua Shapiro, the chief United States economist for MFR, wrote in a note to investors. Once the backlog of demand is absorbed, continued strength will depend heavily on consumer confidence. That’s where politics, including a looming battle over federal spending and the debt ceiling, could stall improvement. “The real test will come over the next few months, given the sharp drop in mortgage demand and the potential for a rollover in consumers’ confidence as Congress does its worst,” wrote Ian Shepherdson, an economist with Pantheon Macroeconomics. On Tuesday, the Conference Board, a New York-based private research group, reported that Americans’ confidence in the economy fell slightly in September from August, as many became less optimistic about hiring and pay increases over the next six months. The September reading dropped to 79.7, down from 81.8 the previous month, but remained only slightly below June’s reading of 82.1, the highest in five and a half years. Year-over-year prices were up in all 20 cities tracked by Case/Shiller, but the gains varied widely, from 3.5 percent in New York and 3.9 percent in Cleveland on the low end to a frothy 24.8 percent in San Francisco and 27.5 percent in Las Vegas. The month-to-month increase in the Case/Shiller index slowed to 0.6 percent, after gains of 1.7 percent in April, 0.9 percent in May and 0.9 percent in June. Asked if the slowdown in growth was alarming, Robert Shiller, the Yale economist who helped develop the home price index, said no. “I’m not worried,” he said in an interview with CNBC. “I think that would be a good thing.” His greater worry, he said, was “more about a bubble — in some cities, it’s looking bubbly now.” Still, Mr. Shiller said, even the bubbliest markets were still well below their peak. Other analysts raised the same point. Prices in San Francisco are still only at 2004 levels, cautioned Steve Blitz, chief economist for ITG Investment Research. “For those who bought and still hold homes in 2005, ’06 and ’07, they may still be in a negative equity position, depending on the terms of their mortgage,” Mr. Blitz wrote. “Don’t let those double-digit year-over-year percentage gains bias opinion to believe all is all right.”
URL to original article: http://www.housingwire.com/articles/27040-so-far-the-housing-recovery-is-on-track
For further information on Fresno Real Estate check: http://www.londonproperties.com
Tuesday, September 24, 2013
Housing begins to see signs of normalcy, but will it last?
Source: Housingwire
By: Megan Hopkins
Industry experts react to pricing reports
Several reports were released Monday that implied continued success for home prices in the U.S. — a sign that the housing market is back on its feet. The Federal Housing Administration house price index and the Standard & Poor’s/Case-Shiller HPI, both out Tuesday, followed suit. According to the FHA price index, U.S. house price appreciation continued in July 2013, up 1% on a seasonally adjusted basis from the previous month, marking the 18th consecutive monthly price increase in the purchase-only, seasonally adjusted index. On an annual basis, home prices were up 8.8% compared to July 2012. The U.S. index is 9.6% below its April 2007 peak and is roughly the same as the March 2005 index level. The monthly S&P/Case-Shiller 20-city home price index improved 0.62% in July, falling short of the 0.8% expected rise. Falling in line with the FHA HPI, the S&P/Case-Shiller July index marked the 18th consecutive monthly increase as well. Year-over-year the 20-city index saw the largest annual increase since early 2006, up 12.39%, slightly higher than June’s pace of of a 12.07% increase. While all 20 of the cities in the index posted positive price gains in July, it is important to note that the monthly gains in 15 of the 20 cities were less than the price appreciation seen over June’s time. Essentially, the upward momentum in price gains slowed from June to July. Las Vegas reported the largest price gain, with home prices soaring 28% since last year. Coming in a close second, San Francisco prices are up nearly 25% year-over-year. Reactions to the S&P/Case-Shiller report were positive among professionals in the housing industry. Quicken Loans Director of Capital Markets Bill Banfield believes the market is beginning to show signs of normalcy finally. “Home prices continued their strong year-over-year climbs, but month-over-month gains slowed. The slowing in monthly gains is not a nail in the recovery’s coffin, in fact it shows a normalizing of the market and that this growth can be sustained.” “Amid a rising rate environment, potential homebuyers rushed into the market to take advantage of record low borrowing costs,” said Lindsey Piegza, managing director and chief economist at Sterne Agee. "Of course looking at these figures today we know they are lagging by two months giving us a look in the rear view mirror rather than a sense of what's to come." Piegza added, "This certainly is not enough to pull the rug out from under the housing recovery, but it will be enough to deter some potential buyers or result in a reduction in spending elsewhere on other goods and services." "Rising mortgage rates are likely pulling back demand and pricing power in the housing sector but, at least up to July, only to a limited degree," said analysts at Econoday. Zillow (Z) Chief Economist Stan Humphries noted that more recent reports further illustrate a summer-long trend of slowing monthly appreciation in the face of a more than 100 basis point hike in mortgage interest rates beginning in late spring. “Looking ahead, I expect the pace of home value appreciation to continue to slow as more supply comes on line and mortgage interest rates remain above their recent lows, even as the Federal Reserve steps back from immediate tapering plans. This ongoing moderation is good for the market overall," said Humphries.
URL to original article: http://www.housingwire.com/articles/27016-housing-begins-to-see-signs-of-normalcy-but-will-it-last
For further information on Fresno Real Estate check: http://www.londonproperties.com
By: Megan Hopkins
Industry experts react to pricing reports
Several reports were released Monday that implied continued success for home prices in the U.S. — a sign that the housing market is back on its feet. The Federal Housing Administration house price index and the Standard & Poor’s/Case-Shiller HPI, both out Tuesday, followed suit. According to the FHA price index, U.S. house price appreciation continued in July 2013, up 1% on a seasonally adjusted basis from the previous month, marking the 18th consecutive monthly price increase in the purchase-only, seasonally adjusted index. On an annual basis, home prices were up 8.8% compared to July 2012. The U.S. index is 9.6% below its April 2007 peak and is roughly the same as the March 2005 index level. The monthly S&P/Case-Shiller 20-city home price index improved 0.62% in July, falling short of the 0.8% expected rise. Falling in line with the FHA HPI, the S&P/Case-Shiller July index marked the 18th consecutive monthly increase as well. Year-over-year the 20-city index saw the largest annual increase since early 2006, up 12.39%, slightly higher than June’s pace of of a 12.07% increase. While all 20 of the cities in the index posted positive price gains in July, it is important to note that the monthly gains in 15 of the 20 cities were less than the price appreciation seen over June’s time. Essentially, the upward momentum in price gains slowed from June to July. Las Vegas reported the largest price gain, with home prices soaring 28% since last year. Coming in a close second, San Francisco prices are up nearly 25% year-over-year. Reactions to the S&P/Case-Shiller report were positive among professionals in the housing industry. Quicken Loans Director of Capital Markets Bill Banfield believes the market is beginning to show signs of normalcy finally. “Home prices continued their strong year-over-year climbs, but month-over-month gains slowed. The slowing in monthly gains is not a nail in the recovery’s coffin, in fact it shows a normalizing of the market and that this growth can be sustained.” “Amid a rising rate environment, potential homebuyers rushed into the market to take advantage of record low borrowing costs,” said Lindsey Piegza, managing director and chief economist at Sterne Agee. "Of course looking at these figures today we know they are lagging by two months giving us a look in the rear view mirror rather than a sense of what's to come." Piegza added, "This certainly is not enough to pull the rug out from under the housing recovery, but it will be enough to deter some potential buyers or result in a reduction in spending elsewhere on other goods and services." "Rising mortgage rates are likely pulling back demand and pricing power in the housing sector but, at least up to July, only to a limited degree," said analysts at Econoday. Zillow (Z) Chief Economist Stan Humphries noted that more recent reports further illustrate a summer-long trend of slowing monthly appreciation in the face of a more than 100 basis point hike in mortgage interest rates beginning in late spring. “Looking ahead, I expect the pace of home value appreciation to continue to slow as more supply comes on line and mortgage interest rates remain above their recent lows, even as the Federal Reserve steps back from immediate tapering plans. This ongoing moderation is good for the market overall," said Humphries.
URL to original article: http://www.housingwire.com/articles/27016-housing-begins-to-see-signs-of-normalcy-but-will-it-last
For further information on Fresno Real Estate check: http://www.londonproperties.com
Monday, September 23, 2013
Report: Distressed sales continue falling
Source: The Business Journal
For the first time in nearly a year, every Valley county saw a monthly drop in distressed home sales. According to the California Association of Realtors, distressed sales, which include short sales, sales of bank-owned properties and other foreclosure sales, dropped to 29 percent of all home sales in Fresno County in August. That's down from 32 percent in July and 47 percent in August 2012. Tulare County saw a similar drop, falling to 28 percent compared to 31 percent the prior month and 47 percent a year ago. Madera County fell to 30 percent in August compared to 33 percent in July and 49 percent a year ago. Kings County had a 1-percent drop in the month to 30 percent, down from 52 percent in August 2012. Statewide, distressed sales made up 15 percent of all home sales in August, down from 17 percent the month before and 38 percent a year ago. Of California's home sales, the share of short sales was at its lowest point since February 2009 at 10.2 percent, down from 11.6 percent in July and 22.9 percent last year. The share of real estate-owned homes, including bank-owned homes, dropped to 4.7 percent compared to 5 percent in July and 14.7 percent a year ago. Equity sales, or non-distressed property sales, climbed to 84.7 percent compared to 82.9 percent in July and 62 percent in August 2012. The available supply of homes was up but still remained tight. The unsold inventory index for real estate-owned homes, or number of months to deplete the supply of homes at the current sales rate, edged up to 2.3 months in August compared to 2.1 months in July. The index for short sales inched up to 2.9 months over 2.5 months in July, while the index for equity sales rose from 3 months to 3.1 months.
URL to original article: http://www.thebusinessjournal.com/news/real-estate/8861-report-distressed-sales-continue-falling
For further information on Fresno Real Estate check: http://www.londonproperties.com
For the first time in nearly a year, every Valley county saw a monthly drop in distressed home sales. According to the California Association of Realtors, distressed sales, which include short sales, sales of bank-owned properties and other foreclosure sales, dropped to 29 percent of all home sales in Fresno County in August. That's down from 32 percent in July and 47 percent in August 2012. Tulare County saw a similar drop, falling to 28 percent compared to 31 percent the prior month and 47 percent a year ago. Madera County fell to 30 percent in August compared to 33 percent in July and 49 percent a year ago. Kings County had a 1-percent drop in the month to 30 percent, down from 52 percent in August 2012. Statewide, distressed sales made up 15 percent of all home sales in August, down from 17 percent the month before and 38 percent a year ago. Of California's home sales, the share of short sales was at its lowest point since February 2009 at 10.2 percent, down from 11.6 percent in July and 22.9 percent last year. The share of real estate-owned homes, including bank-owned homes, dropped to 4.7 percent compared to 5 percent in July and 14.7 percent a year ago. Equity sales, or non-distressed property sales, climbed to 84.7 percent compared to 82.9 percent in July and 62 percent in August 2012. The available supply of homes was up but still remained tight. The unsold inventory index for real estate-owned homes, or number of months to deplete the supply of homes at the current sales rate, edged up to 2.3 months in August compared to 2.1 months in July. The index for short sales inched up to 2.9 months over 2.5 months in July, while the index for equity sales rose from 3 months to 3.1 months.
URL to original article: http://www.thebusinessjournal.com/news/real-estate/8861-report-distressed-sales-continue-falling
For further information on Fresno Real Estate check: http://www.londonproperties.com
Valley unemployment rates drop in Aug.
Source: The Business Journal
All four Central Valley counties’ unemployment rates dropped in August, both compared to the previous month and the previous year, according to the Economic Development Department’s monthly release on Friday. Madera County maintains the lowest unemployment rate of the area at 10.4 percent, compared to 11.4 percent in July and 12.6 percent in August 2012. Fresno County has the next lowest unemployment rate at 11.9 percent, a decrease from 12.5 percent in July and 14.2 percent at the same time last year. Kings County trails slightly at 12 percent, an improvement from 12.6 percent in July and 14.3 percent during the same month in 2012. Tulare County has the highest unemployment rate at 13.1 percent, but down slightly from July’s 13.7 percent and significantly from 15.3 percent in August 2012. In addition to the year-over-year unemployment rate improving, the total number of estimated jobs also grew during that time in all four counties. However Fresno and Kings counties total jobs decreased in the month-to-month comparison. From July to August, Fresno County lost an estimated 1,700 total jobs and Kings County lost 600 total jobs. The change in farm jobs over the past 12 months is all over the board, varying by county. Tulare County saw no change in the year-to-year farm jobs and Fresno County lost 2,500 farm jobs during that time. However Madera County gained 600 farm jobs and Kings County increased its total farm jobs by 200.
URL to original article: http://www.thebusinessjournal.com/news/employment/8840-valley-unemployment-rates-drop-in-aug
For further information on Fresno Real Estate check: http://www.londonproperties.com
All four Central Valley counties’ unemployment rates dropped in August, both compared to the previous month and the previous year, according to the Economic Development Department’s monthly release on Friday. Madera County maintains the lowest unemployment rate of the area at 10.4 percent, compared to 11.4 percent in July and 12.6 percent in August 2012. Fresno County has the next lowest unemployment rate at 11.9 percent, a decrease from 12.5 percent in July and 14.2 percent at the same time last year. Kings County trails slightly at 12 percent, an improvement from 12.6 percent in July and 14.3 percent during the same month in 2012. Tulare County has the highest unemployment rate at 13.1 percent, but down slightly from July’s 13.7 percent and significantly from 15.3 percent in August 2012. In addition to the year-over-year unemployment rate improving, the total number of estimated jobs also grew during that time in all four counties. However Fresno and Kings counties total jobs decreased in the month-to-month comparison. From July to August, Fresno County lost an estimated 1,700 total jobs and Kings County lost 600 total jobs. The change in farm jobs over the past 12 months is all over the board, varying by county. Tulare County saw no change in the year-to-year farm jobs and Fresno County lost 2,500 farm jobs during that time. However Madera County gained 600 farm jobs and Kings County increased its total farm jobs by 200.
URL to original article: http://www.thebusinessjournal.com/news/employment/8840-valley-unemployment-rates-drop-in-aug
For further information on Fresno Real Estate check: http://www.londonproperties.com
Thursday, September 19, 2013
Monthly foreclosure activity spikes in Tulare County
Source: The Business Journal
Foreclosure notices varied across the Valley in August, but the largest spikes were seen in Tulare County. According to new data from Property Radar, there were 128 notices of default filed in Tulare County during the month compared to 109 the month before and 207 the year before. Notices of sale, which serve as a homeowner's final warning before their home goes to auction, totaled 117 compared to 82 in July and 245 last year. Fresno County saw 240 notices of default in August, down from 253 the prior month and 516 a year ago. Notices of sale rose to 209 in August compared to 185 in July, but were still far below 467 in August 2012. There were 31 notices of default filed in Madera County during August, down from 38 in July and 86 last year, while notices of sale fell to 32 compared to 50 the prior month and 69 in August 2012. In Kings County, 44 notices of default were filed in August, up from 40 in July but down from 74 last year. Notices of sale bumped up to 43 compared to 37 the month before but remained well below the 71 in August 2012. Throughout California, notices of default totaled 8,061 in August, up slightly from 8,026 in July but down 54.6 percent from 17,722 a year ago. Notices of sale came in at 8,113, up 4.1 percent from 7,797 the month before but down 50.2 percent from 16,276 last year. Of the 7,900 homes that went to foreclosure auction in August, 5,082 were cancelled, 1,668 went back to the bank and 1,150 were sold to a third-party buyer.
URL to original article: http://thebusinessjournal.com/news/real-estate/8482-monthly-foreclosure-activity-spikes-in-tulare-county
For further information on Fresno Real Estate check: http://www.londonproperties.com
Foreclosure notices varied across the Valley in August, but the largest spikes were seen in Tulare County. According to new data from Property Radar, there were 128 notices of default filed in Tulare County during the month compared to 109 the month before and 207 the year before. Notices of sale, which serve as a homeowner's final warning before their home goes to auction, totaled 117 compared to 82 in July and 245 last year. Fresno County saw 240 notices of default in August, down from 253 the prior month and 516 a year ago. Notices of sale rose to 209 in August compared to 185 in July, but were still far below 467 in August 2012. There were 31 notices of default filed in Madera County during August, down from 38 in July and 86 last year, while notices of sale fell to 32 compared to 50 the prior month and 69 in August 2012. In Kings County, 44 notices of default were filed in August, up from 40 in July but down from 74 last year. Notices of sale bumped up to 43 compared to 37 the month before but remained well below the 71 in August 2012. Throughout California, notices of default totaled 8,061 in August, up slightly from 8,026 in July but down 54.6 percent from 17,722 a year ago. Notices of sale came in at 8,113, up 4.1 percent from 7,797 the month before but down 50.2 percent from 16,276 last year. Of the 7,900 homes that went to foreclosure auction in August, 5,082 were cancelled, 1,668 went back to the bank and 1,150 were sold to a third-party buyer.
URL to original article: http://thebusinessjournal.com/news/real-estate/8482-monthly-foreclosure-activity-spikes-in-tulare-county
For further information on Fresno Real Estate check: http://www.londonproperties.com
Friday, September 13, 2013
Fresno State's football game in Boulder postponed
Source: The Business Journal
After record rainfall and flooding ravaged the city of Boulder, Colo., University of Colorado-Boulder officials announced Saturday’s scheduled football game between the Buffalos and Fresno State is postponed. At least three people have died in connection with the flooding, which has ripped through Boulder. “Even though the weather is improving, Boulder is still designated as a national emergency site,” said CU Chanellor Philip P. DiStefano, in a release. “Our community is hurting. Many of our students are displaced from their homes, including many of our student-athletes. This is not an appropriate time for us to hold a game that would put pressure on the community, both in terms of security/emergency personnel, but also in diverting attention from people in need.” A make-up date has not been determined yet, but DiStefano said the schools are working together to find a date.
URL to original article: http://www.thebusinessjournal.com/news/sports-and-entertainment/8153-fresno-state-s-football-game-in-boulder-postponed
For further information on Fresno Real Estate check: http://www.londonproperties.com
After record rainfall and flooding ravaged the city of Boulder, Colo., University of Colorado-Boulder officials announced Saturday’s scheduled football game between the Buffalos and Fresno State is postponed. At least three people have died in connection with the flooding, which has ripped through Boulder. “Even though the weather is improving, Boulder is still designated as a national emergency site,” said CU Chanellor Philip P. DiStefano, in a release. “Our community is hurting. Many of our students are displaced from their homes, including many of our student-athletes. This is not an appropriate time for us to hold a game that would put pressure on the community, both in terms of security/emergency personnel, but also in diverting attention from people in need.” A make-up date has not been determined yet, but DiStefano said the schools are working together to find a date.
URL to original article: http://www.thebusinessjournal.com/news/sports-and-entertainment/8153-fresno-state-s-football-game-in-boulder-postponed
For further information on Fresno Real Estate check: http://www.londonproperties.com
Thursday, September 12, 2013
Housing inventory expands as market shifts
Source: Housingwire
Sellers test the waters again
According to The Wall Street Journal, sellers are slowly testing the waters again, with the nation's housing inventory growing again in August.
Sellers Test Housing Market Amid Rising Prices
By Nick Timiraos
Housing inventories increased in August and stood just 2.5% below their levels of a year ago, offering the latest sign that more sellers are testing the market after swift home-price gains over the past year. Nationally, there were 1.98 million homes listed for sale in August, according to a report released Thursday by Realtor.com. That was up by more than 24% from the low point in February and up 1% from July. Inventories have increased for six straight months. While the overall level of homes for sale remains relatively depressed, the report suggests that inventory may have hit a bottom earlier this year after an extended two-year decline. The report also suggests that home-buyer traffic has eased following a period in which mortgage rates have jumped by more than one percentage point. Inventories in nine of the nation’s top 30 housing markets were above their levels of last August, led by Los Angeles, where inventory was up by 17.4% from a year ago to its highest level since April 2012. Inventories in Atlanta were 13.9% above last year’s level. Other gains were reported in Orlando, Fla. (up 7.1%); Orange County, Calif. (6.9%); Miami (5.1%); Philadelphia (4.2%); and Phoenix (2.8%). Listings stood 23.3% below last year’s levels in Detroit and were down by 20.1% in Boston, 17.9% in Denver and San Diego, and 14.8% in Dallas. Median asking prices nationally were unchanged from July at $199,900, which represented a 6% increase from a year earlier. Asking prices were below last year’s level in Cleveland, but they were unchanged or up from a year ago in every other major market. Half of all homes listed in August had been on the market for less than 92 days, up from 85 in July and 79 in May, but still below the median market time of 100 days last year. The Realtor.com figures include sale listings from more than 800 multiple-listing services across the country. They don’t cover all homes for sale, including those that are “for sale by owner” and newly constructed homes that aren’t always listed by the services.
URL to original article: http://www.housingwire.com/articles/26815-housing-inventory-grew-in-august
For further information on Fresno Real Estate check: http://www.londonproperties.com
Sellers test the waters again
According to The Wall Street Journal, sellers are slowly testing the waters again, with the nation's housing inventory growing again in August.
Sellers Test Housing Market Amid Rising Prices
By Nick Timiraos
Housing inventories increased in August and stood just 2.5% below their levels of a year ago, offering the latest sign that more sellers are testing the market after swift home-price gains over the past year. Nationally, there were 1.98 million homes listed for sale in August, according to a report released Thursday by Realtor.com. That was up by more than 24% from the low point in February and up 1% from July. Inventories have increased for six straight months. While the overall level of homes for sale remains relatively depressed, the report suggests that inventory may have hit a bottom earlier this year after an extended two-year decline. The report also suggests that home-buyer traffic has eased following a period in which mortgage rates have jumped by more than one percentage point. Inventories in nine of the nation’s top 30 housing markets were above their levels of last August, led by Los Angeles, where inventory was up by 17.4% from a year ago to its highest level since April 2012. Inventories in Atlanta were 13.9% above last year’s level. Other gains were reported in Orlando, Fla. (up 7.1%); Orange County, Calif. (6.9%); Miami (5.1%); Philadelphia (4.2%); and Phoenix (2.8%). Listings stood 23.3% below last year’s levels in Detroit and were down by 20.1% in Boston, 17.9% in Denver and San Diego, and 14.8% in Dallas. Median asking prices nationally were unchanged from July at $199,900, which represented a 6% increase from a year earlier. Asking prices were below last year’s level in Cleveland, but they were unchanged or up from a year ago in every other major market. Half of all homes listed in August had been on the market for less than 92 days, up from 85 in July and 79 in May, but still below the median market time of 100 days last year. The Realtor.com figures include sale listings from more than 800 multiple-listing services across the country. They don’t cover all homes for sale, including those that are “for sale by owner” and newly constructed homes that aren’t always listed by the services.
URL to original article: http://www.housingwire.com/articles/26815-housing-inventory-grew-in-august
For further information on Fresno Real Estate check: http://www.londonproperties.com
Wednesday, September 11, 2013
Historic neighborhoods featured in bike ride
Source: The Business Journal
The City of Fresno will be showcasing some of its historic neighborhoods and promoting healthy exercise with its “Bike Through History” bicycle ride on Nov. 2. The five-mile ride goes from 9 a.m. to noon and will begin at the Tower Theater, located at 1201 N. Wishon Ave. During the ride, participants will see such landmarks as the Spanish Revival Herbert Levy Home, the Gilbert Jertberg Adobe, the Neoclassical Fig Garden Womans Club and the Porter Home near Fresno City College. The event is sponsored by the City of Fresno, Fresno County Bicycle Coalition, the Cal Alumni Group of Fresno and the Valley Air District. Participants must be 10 years of age or older and any individual under 16 must be accompanied by a parent or legal guardian. For more information, contact Karana Hattersley-Drayton of the City of Fresno’s Historic Preservation at (559) 621-8520.
URL to original article: http://www.thebusinessjournal.com/news/non-profits/8082-historic-neighborhoods-featured-in-bike-ride
For further information on Fresno Real Estate check: http://www.londonproperties.com
The City of Fresno will be showcasing some of its historic neighborhoods and promoting healthy exercise with its “Bike Through History” bicycle ride on Nov. 2. The five-mile ride goes from 9 a.m. to noon and will begin at the Tower Theater, located at 1201 N. Wishon Ave. During the ride, participants will see such landmarks as the Spanish Revival Herbert Levy Home, the Gilbert Jertberg Adobe, the Neoclassical Fig Garden Womans Club and the Porter Home near Fresno City College. The event is sponsored by the City of Fresno, Fresno County Bicycle Coalition, the Cal Alumni Group of Fresno and the Valley Air District. Participants must be 10 years of age or older and any individual under 16 must be accompanied by a parent or legal guardian. For more information, contact Karana Hattersley-Drayton of the City of Fresno’s Historic Preservation at (559) 621-8520.
URL to original article: http://www.thebusinessjournal.com/news/non-profits/8082-historic-neighborhoods-featured-in-bike-ride
For further information on Fresno Real Estate check: http://www.londonproperties.com
Wednesday, September 4, 2013
Summer rentals lure in vacationers, cash
Source: Housingwire
By: Brena Swanson
Homes up for rent boast a 77% occupancy rate As summer ends, the owners of summer rentals are cashing in on what has been one of the strongest seasons for vacation rental properties, according to online vacation marketplace HomeAway. This summer the average occupancy rate for a vacation rental hit 77%. Additionally, owners posted an average weekly rental rate of $1,778, a 19% increase over the same period last year. Meanwhile, the occupancy rate from hotels for the same summer season was approximately 70%. "It’s clear from this year’s report our owners are utilizing their vacation homes as assets to help pay their expenses and even turn a profit," said Brian Sharples, co-founder and CEO of HomeAway. "If the owner optimizes the time and effort put into managing their vacation rental, the return on investment is substantial," said Sharples.
URL to original article: http://www.housingwire.com/articles/26609-summer-rentals-lure-in-vacationers-cash
For further information on Fresno Real Estate check: http://www.londonproperties.com
By: Brena Swanson
Homes up for rent boast a 77% occupancy rate As summer ends, the owners of summer rentals are cashing in on what has been one of the strongest seasons for vacation rental properties, according to online vacation marketplace HomeAway. This summer the average occupancy rate for a vacation rental hit 77%. Additionally, owners posted an average weekly rental rate of $1,778, a 19% increase over the same period last year. Meanwhile, the occupancy rate from hotels for the same summer season was approximately 70%. "It’s clear from this year’s report our owners are utilizing their vacation homes as assets to help pay their expenses and even turn a profit," said Brian Sharples, co-founder and CEO of HomeAway. "If the owner optimizes the time and effort put into managing their vacation rental, the return on investment is substantial," said Sharples.
URL to original article: http://www.housingwire.com/articles/26609-summer-rentals-lure-in-vacationers-cash
For further information on Fresno Real Estate check: http://www.londonproperties.com
Survey: Valley economic growth slowing
Source: The Business Journal
The San Joaquin Valley Business Conditions index dropped marginally in August but still indicates a growing economy, according to the monthly survey released on Wednesday by Fresno State’s Craig School of Business. The index decreased to 55.4 in August from 55.6 in July—above the growth neutral index of 50—partially due to the lowered unemployment rate. Although each of the four Central Valley counties’ unemployment rates have improved dramatically over the past 12 months, research faculty member Ernie Goss’ prediction of a single-digit percent unemployment rate might not come to fruition. “Last month I indicated that I expected the area's unemployment rate to drop below 10.0 percent before the end of 2013. While this rate is still possible, it is more likely that the jobless rate will not move below this threshold before the first quarter of 2014,” Goss said in a release. Inflation appears to slowing, as the wholesale prices index dropped to 52.5 in August from 58.9 in July. Business confidence improved a little to 51.1 in August from 50.4 in July. The new export orders index dropped to 42.7 in August from an already poor 43.7 in July. Conversely imports rose to 50.5 in August from 47.9 in July.
URL to original article: http://www.thebusinessjournal.com/news/economy/8032-survey-valley-economic-growth-slowing
For further information on Fresno Real Estate check: http://www.londonproperties.com
The San Joaquin Valley Business Conditions index dropped marginally in August but still indicates a growing economy, according to the monthly survey released on Wednesday by Fresno State’s Craig School of Business. The index decreased to 55.4 in August from 55.6 in July—above the growth neutral index of 50—partially due to the lowered unemployment rate. Although each of the four Central Valley counties’ unemployment rates have improved dramatically over the past 12 months, research faculty member Ernie Goss’ prediction of a single-digit percent unemployment rate might not come to fruition. “Last month I indicated that I expected the area's unemployment rate to drop below 10.0 percent before the end of 2013. While this rate is still possible, it is more likely that the jobless rate will not move below this threshold before the first quarter of 2014,” Goss said in a release. Inflation appears to slowing, as the wholesale prices index dropped to 52.5 in August from 58.9 in July. Business confidence improved a little to 51.1 in August from 50.4 in July. The new export orders index dropped to 42.7 in August from an already poor 43.7 in July. Conversely imports rose to 50.5 in August from 47.9 in July.
URL to original article: http://www.thebusinessjournal.com/news/economy/8032-survey-valley-economic-growth-slowing
For further information on Fresno Real Estate check: http://www.londonproperties.com
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