No, it wasn't a typo. The median price of single-family resale homes in California fell 29 percent in March compared to the same month last year, falling from $582,930 to $413,980, the California Association of Realtors reported this month. Sales, meanwhile, were down 24.5 percent year-over-year in March.
Robert Kleinhenz, deputy chief economist for the statewide Realtor trade group, provided some additional details about these statistics in an interview with Inman News.
The year-over-year decline in median price in March was a record -- actually it was the sixth consecutive monthly record for a year-over-year decline. "We've never seen such year-to-year declines before, (even in) the '80s or '90s," Kleinhenz said.
During the worst periods of the '90s housing slump, year-over-year price declines were typically in the 4 percent to 6 percent range, he said, and the previous record for an annual median price drop before this latest cycle of decline was 9.9 percent.
"But this clearly is a sign of an anomaly in the market in the sense of the credit crunch basically choking off demand," he said.
The median price in the state reached an all-time record in April 2007, and if the state's single-family median price continues to hover around the low $400,000 range then the median resale price in the state may be about one-third lower than it was last year.
The state has also experienced 30 consecutive months of year-over-year declines in sales of resale single-family homes.
The year-over-year sales drops are not record-setting, Kleinhenz said, as the state experienced "severe decreases in sales in the early 1980s." There was record year-over-year sales decline of 47.3 percent in October 1981, and dwindling sales in October 2007 came close -- dropping 42 percent compared to the same month in the previous year.
CAR's Unsold Inventory Index, which measures the supply of resale, single-family detached homes, was 11.6 months in March 2008. That means it would take nearly a full year at the March sales rate to exhaust the supply of for-sale resale homes in the state. Kleinhenz said that the level is reflective of a very slow sales environment -- not of a huge inventory of for-sale homes.
"Back in the 1990s the weak economy was really the main culprit" for housing doldrums, though these days the market problems have less to do with job losses and more to do with financing troubles and people who can't make their payments, he said.
Wednesday, April 30, 2008
Investors to Congress: Let us have those ugly houses
HomeVestors of America, the company behind the infamous "We Buy Ugly Houses" campaign, announced that hundreds of real estate professionals converged on Washington, D.C., today to protest what they deem a "federal bailout of the housing industry."
"There is no doubt that the housing industry is in a crisis situation, but the problem will not be solved by throwing taxpayer money at the situation and putting more restrictions and regulations on those of us who are helping people out of their ugly situations," said John Hayes, president and CEO for HomeVestors, in a statement.
The HomeVestors franchise network has purchased about 35,000 homes nationwide.
Some investors have complained that lenders have severely restricted their ability to get financing to buy investment properties. Meanwhile, some cash-rich investors may thrive in troubled real estate markets even during this credit crunch by gobbling up cheap foreclosure properties in all-cash transactions and assembling a stock of homes to sell off as the market rebounds and prices recover.
HomeVestors says in its announcement that investors can assist in a down market through their efforts to "rehabilitate older neighborhoods, to provide affordable housing, to assist first-time homebuyers," among other aims.
"There is no doubt that the housing industry is in a crisis situation, but the problem will not be solved by throwing taxpayer money at the situation and putting more restrictions and regulations on those of us who are helping people out of their ugly situations," said John Hayes, president and CEO for HomeVestors, in a statement.
The HomeVestors franchise network has purchased about 35,000 homes nationwide.
Some investors have complained that lenders have severely restricted their ability to get financing to buy investment properties. Meanwhile, some cash-rich investors may thrive in troubled real estate markets even during this credit crunch by gobbling up cheap foreclosure properties in all-cash transactions and assembling a stock of homes to sell off as the market rebounds and prices recover.
HomeVestors says in its announcement that investors can assist in a down market through their efforts to "rehabilitate older neighborhoods, to provide affordable housing, to assist first-time homebuyers," among other aims.
3 Tips Before Becoming a Real Esatate Agent Today
Jennifer is a home buyer and seller on AmericawideRealEstateBlog who is thinking about becoming a real estate agent. She wants to know if now is the right time to get into the business and what skills she will need in order to succeed. These are fantastic questions with no magic bullet answers. I’ll share some my thoughts on this and if you’d like to add yours too that would be great.
So is it a good time to get into the real estate business? From my perspective, I don’t have a clear answer to that question. Just too many variables involved. It’s almost like asking, “How is the weather in the U.S. today?” It really depends on where your standing doesn’t it? So, what I’d like to do is share 3 tips that I learned when I entered the real estate business.
1. Spread the word - Before you even start taking your real estate classes, make sure you tap into your existing sphere of influence. Let everyone you know that you will be getting your real estate license soon. This includes informing all the people and businesses in your local neighborhood. You never know who might be in the market to buy or sell. This will prime your pipeline up and help you get a jump start. Because let’s face it, before you can become a superstar agent, you need to get your feet wet. Working with people that you or your sphere know will help you get over those awkward “green” agent hiccups a lot easier. This worked for me when I first started and it can work for you too.
2. Educate yourself - Research the brokerage models that are available in your local market. Don’t join the first one you see. Whether you choose a mom and pop operation or a national big box brand, find out what they can offer you and create a business plan. Then, make sure you have a mentor within your office that will help you learn the ropes. Watch them closely. Absorb everything they do and say. Let it simmer. Then digest. Apply what you feel comfortable with into your routine. Regardless, having a mentor is priceless. You will be amazed on what that course textbook did not teach you. Don’t get me wrong. By all means, continue to read real estate, marketing and technology books and trade publications. Knowledge is power. The more you know, the better you will be able to serve your clients.
3. Have some reserves - Don’t expect to be bringing home the bacon overnight. The real estate cycle is not an expeditious one by any means. You can go months before you generate any income. First you have to find a buyer and seller to work with. Then find a home for your buyer or a buyer for your seller. Then get into contract. Inspections. Etc……You know what I’m saying, right? So, depending on your financial situation and local market, make sure you have at between 3-9 months of cash in the stash. You need to live and take care of yourself and your family before you can take care of others.
Bonus:
Get Social - Home buyers, sellers and agents are online. They are having a two way conversation with each other. Engage them or someone else will. More on this in a follow up post….
So is it a good time to get into the real estate business? From my perspective, I don’t have a clear answer to that question. Just too many variables involved. It’s almost like asking, “How is the weather in the U.S. today?” It really depends on where your standing doesn’t it? So, what I’d like to do is share 3 tips that I learned when I entered the real estate business.
1. Spread the word - Before you even start taking your real estate classes, make sure you tap into your existing sphere of influence. Let everyone you know that you will be getting your real estate license soon. This includes informing all the people and businesses in your local neighborhood. You never know who might be in the market to buy or sell. This will prime your pipeline up and help you get a jump start. Because let’s face it, before you can become a superstar agent, you need to get your feet wet. Working with people that you or your sphere know will help you get over those awkward “green” agent hiccups a lot easier. This worked for me when I first started and it can work for you too.
2. Educate yourself - Research the brokerage models that are available in your local market. Don’t join the first one you see. Whether you choose a mom and pop operation or a national big box brand, find out what they can offer you and create a business plan. Then, make sure you have a mentor within your office that will help you learn the ropes. Watch them closely. Absorb everything they do and say. Let it simmer. Then digest. Apply what you feel comfortable with into your routine. Regardless, having a mentor is priceless. You will be amazed on what that course textbook did not teach you. Don’t get me wrong. By all means, continue to read real estate, marketing and technology books and trade publications. Knowledge is power. The more you know, the better you will be able to serve your clients.
3. Have some reserves - Don’t expect to be bringing home the bacon overnight. The real estate cycle is not an expeditious one by any means. You can go months before you generate any income. First you have to find a buyer and seller to work with. Then find a home for your buyer or a buyer for your seller. Then get into contract. Inspections. Etc……You know what I’m saying, right? So, depending on your financial situation and local market, make sure you have at between 3-9 months of cash in the stash. You need to live and take care of yourself and your family before you can take care of others.
Bonus:
Get Social - Home buyers, sellers and agents are online. They are having a two way conversation with each other. Engage them or someone else will. More on this in a follow up post….
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