Real Estate News

More Americans are signing contracts to buy existing homes than at any time in nearly two years, boosting the housing industry’s slow recovery, according to the National Association of REALTORS®’ index of pending home sales. Last month saw the highest point on the index since April 2010, when consumers drawn by a home-buyer tax credit pushed the figure to 111.3. That was the last time the measure exceeded 100 — the benchmark for industry health. The index showed year-over-year increases in every region.

Contracts are usually signed a month or two before a deal closes and the home purchase is finalized, making the pending-sales index a leading indicator for where the market is headed. The REALTORS® group said last week that existing home sales in January were up more than 4 percent to an annual rate of 4.57 million.

Housing experts such as Lawrence Yun, the REALTOR® group’s chief economist, credit the sliding unemployment rate—which fell in January to its lowest point in three years —as well as a downward trend in home prices and a supply of homes that is at a nearly seven-year low.

When will housing come back in California? Three experts offer their views. South Bay Brokers invited  California experts for their take on the state of real estate and what they think is needed to get the housing market moving again. They range from the pessimism of a banking executive to the more upbeat view of a Realtor association economist. California home sales and median price are predicted to improve only slightly in 2012. For details on what Mark Vitner, Managing Director and Senior Economist, Wells Fargo Securities projects you can download his presentation: Click Here For another perspective, see the projections form Joel Singer, Chief Executive Officer, California Association of Realtors you can download his presentation: Click Here

The Year of the Dragon officially began yesterday. This sign is associated with prosperity, will this be a good omen for home prices? Historically, this is a good year – at least the last three times it came around. Just look at the statistics from state and national Realtor associations. Home prices were up considerably the last three Years of the Dragon — 1976, 1988 and 2000. And sales were up on a state and national basis in two of those three years. If past history is any guide, the new lunar year could be when the housing recovery really gets under way.

– In 1976, the median price of a single-family U.S. home was up almost 8%, while in California, it jumped nearly 17%.

– Sales that year were up at least by 23% both statewide and nationally.

– In 1988, prices were up a more modest 4.3% nationally, while California’s price shot up 18%. It’s also the first year that the California Association of Realtors had figures for Orange County. How were prices locally that year? Up 25%!

– Sales likewise was booming on the state and local level in 1988, rising 10% statewide and up 8% in O.C.

– In 2000, prices were up on national, state and local levels, with California and O.C. home prices up 11% and nearly 13%, respectively.

– Sales that year were down in the U.S. and in California. But in Orange County, home sales increased 2.2%..
Will the Year of the Dragon be good for real estate? Let’s hear your comments.