Walter Stauss • Cell 831.246.4663 • walter@831.com • Lifestyles Real Estate • DRE 01105052  | |
SEPTEMBER 2009 | |
Santa Cruz Real Estate and Community News | |
Highlights: Inventory declined in August, while pending sales continued to rise. Home sales up 3.2% year-over-year. Year-to-date, home sales up 16.6%. The median price for homes fell 7.5% from July, and was down 13.4% year-over-year. | |
Quick links ... Statistics, charts, graphs October EventsAnnual Monte Foundation Fireworks Open Studio Art Tour Dates Arboretum Fall Plant Sale FeedbackI welcome your comments about this issue and ideas for future ones. Send me email ReferralsIf you know anyone who is thinking about buying or selling real estate in Santa Cruz County, please let me know via email or call me at 831.246-4663 Thank you! | In this issue: Inventory Declines, While Pending Sales Continue to Rise | Mortgage Rate Outlook | 10 Most-Affordable, 10 Least-Affordable Areas in the Country To read the on-line version of this newsletter with chart and graphs, and the complete articles, go to my website (click on NEWSLETTER). Market NewsInventory Declines, While Pending Sales Continue to RiseInventory of single-family, re-sale homes fell for the thirteenth month in a row in August, and it is now down 43.1% year-over-year. [More] Mortgage Rate OutlookMortgage rates ended summer on a softer note, drifting back to late-spring levels. A pause (at least) in stock markets after a strong summer run saw some investors shift cash from equities into less-risky investments to lock in gains, driving influential Treasury yields lower. [More] Pending Home Sales on a Record RollContract activity for pending home sales has risen for six straight months, a pattern not seen in the history of the index since it began in 2001, according to the National Association of Realtors®. [More] Real Estate NewsCredit Market Makes Economists NervousInterest rates are low and home prices are down, but banks continue to be stingy with loans. At the height of the housing boom, seven out of 10 mortgages were approved. At the end of 2008, only five out of 10 got the green light. During the boom years, homebuyers could qualify for the cheapest rates with a credit score of 660. Today, they need 740 or better. [More] 10 Most-Affordable Areas in the Country:1. Kokomo, Ind. Not really a surprise there, but the least-affordable list is interesting. Find it [More]. Is Santa Cruz on the list?
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Green CornerSay No to That | |
Monday, September 21, 2009
Santa Cruz Real Estate & Community News, September 2009
Credit Market Makes Economists Nervous
Credit Market Makes Economists Nervous
Interest rates are low and home prices are down, but banks continue to be stingy with loans.
At the height of the housing boom, seven out of 10 mortgages were approved. At the end of 2008, only five out of 10 got the green light. During the boom years, homebuyers could qualify for the cheapest rates with a credit score of 660. Today, they need 740 or better.
"Banks are going to be in a defensive posture for several years. Most borrowers can't meet their criteria," says Christopher Whalen, managing director at research firm Institutional Risk Analytics.
Consumers cut back borrowing by $21.6 billion from June to July, the biggest drop since the Federal Reserve began keeping records in 1943. That made some analysts nervous.
The reduction in borrowing could slow the economic recovery, says David Olson, president of Access Mortgage Research & Consulting.
"If they cut back, it would be catastrophic," Olson says. "We could have a second downturn."
Source: The Associated Press, Stevenson Jacobs (09/17/2009)
For More Information
Please contact me if you'd like more information about our community or real estate market:
Interest rates are low and home prices are down, but banks continue to be stingy with loans.
At the height of the housing boom, seven out of 10 mortgages were approved. At the end of 2008, only five out of 10 got the green light. During the boom years, homebuyers could qualify for the cheapest rates with a credit score of 660. Today, they need 740 or better.
"Banks are going to be in a defensive posture for several years. Most borrowers can't meet their criteria," says Christopher Whalen, managing director at research firm Institutional Risk Analytics.
Consumers cut back borrowing by $21.6 billion from June to July, the biggest drop since the Federal Reserve began keeping records in 1943. That made some analysts nervous.
The reduction in borrowing could slow the economic recovery, says David Olson, president of Access Mortgage Research & Consulting.
"If they cut back, it would be catastrophic," Olson says. "We could have a second downturn."
Source: The Associated Press, Stevenson Jacobs (09/17/2009)
For More Information
Please contact me if you'd like more information about our community or real estate market:
Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com DRE #01105052
Most Affordable, Least Affordable
In its annual survey of most- and least-affordable housing markets, BusinessWeek quoted a number of experts who believe that for many people, the current low interest rates and low housing prices have combined to offer a once-in-a-lifetime opportunity to buy a home.
10 Most-Affordable Areas in the Country:
1. Kokomo, Ind.
2. Lansing-East Lansing, Mich.
3. Mansfield, Ohio
4. Elkhart-Goshen, Ind.
5. Lima, Ohio
6. Bay City, Mich.
7. Indianapolis-Carmel, Ind.
8. Saginaw-Saginaw Township North, Mich.
9. Youngstown-Warren-Boardman, Ohio-Pa.
10. Canton-Massillon, Ohio
10 Least-Affordable Areas in the Country:
1. New York-White Plains, N.Y.-Wayne, N.J.
2. San Francisco-San Mateo-Redwood City, Calif.
3. San Luis Obispo-Paso Robles, Calif.
4. Ocean City, N.J.
5. Honolulu
6. Los Angeles-Long Beach-Glendale, Calif.
7. Santa Ana-Anaheim-Irvine, Calif.
8. Santa Cruz-Watsonville, Calif.
9. Nassau-Suffolk (Long Island), N.Y.
10. Flagstaff, Ariz.
To calculate the most- and least-affordable areas, BusinessWeek considered the share of homes sold in the second quarter of this year that would have been affordable to a family earning the local median income. Housing costs were calculated using new and existing sales records supplied by First American Real Estate Solutions and include principal, interest, estimated property taxes, and insurance.
For More Information
Please contact me if you'd like more information about our community or real estate market:
Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com DRE #01105052
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