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Real Estate News Archive May 1-7 2006

Here is the real estate news making headlines across the state and country in May 1st to 7th, 2006.

May 5th, 2006

Mortgage Rates highest in 4 years

Mortgage rates hit their highest level in nearly 4 years this week.

Freddie Mac reported that for the week ending May 4, rates on 30-year fixed-rate mortgages averaged 6.59%, up slightly from 6.58% percent last week.

This week's rate was the highest since the week ending June 20, 2002, when 30-year mortgage rates stood at 6.63%

Rates on 15-year, fixed-rate mortgages also edged up this week to 6.22%, from 6.21% last week.

However, 1 year ARMs dipped to 5.67% this week, down from 5.68% last week. Rates on 5 year ARMs averaged 6.21% this week, unchanged from last week.

A year ago, 30-year mortgages averaged 5.75%, 15-year mortgages stood at 5.31%, one-year ARMs were at 4.22% and five-year ARMs averaged 5.16%.

Higher mortgage rates are expected to slow home sales this year. For five years running, home sales have hit record highs, powered by low mortgage rates.

Source: Associated Press

May 4th, 2006

Fewer New Homes in Central Valley

Fewer new single-family homes are being built in 8 counties of the Central Valley in March 2006 than a year ago. Exceptions are of Kern and Merced counties.

The Bakersfield metropolitan area saw its single-family building permits up 12.% over March 2005, to 722 permits.

Merced was up 25.7% with 279 building permits issued compared to 222 a year earlier.

Single-family starts were lower in the following Central Valley metropolitan areas:

. Chico, 89 permits, off 28.2 percent;

. Fresno, 384 permits, down 25.9 percent;

. Hanford, 74 permits, off 30.2 percent;

. Madera, 157 permits, down 19.9 percent;

. Modesto, 302 permits, down 28.6 percent;

. Stockton, 488 permits, down 27.9 percent;

. Visalia-Porterville, 200 permits, down 9.5 percent; and,

. Yuba City-Marysville, 103 permits, down 44.3 percent.

There was, however, a sharp increase in the number of building permits issued for multi-family developments

In Merced County, permits to build apartment complexes were up by 1,100 percent in March compared to a year earlier. That translates into permits to build 24 multi-family units compared to two a year earlier.

Bakersfield also saw a jump in multi-family building permits being issued. The percentage was up 486.7%; the actual number of permits issued was 88 compared to 15 a year earlier.

10 Multi-family permits were issued in Chico, comapred toa year ago this month; Stockton saw a 10.4% increase - 53 permits compared to 48 in 2005 -- and Visalia-Porterville saw a 15.5% increase with 82 permits issues compared to 71 a year earlier.

In March, permits were pulled for 10,902 single-family homes statewide, down 25.8% from March 2005. Multifamily housing starts - condos and apartments - totaled 5,217, down just 2.2% from March 2005.

Builders pulled a total permits for 16,119 homes and apartments, down 19.5 percent from March 2005.

Statistics were compiled by the Burbank-based Construction Industry Research Board.

Source: Central Valley Business Times

 

May 3rd, 2006

Foreclosures in CA

According to DataQuick Information Systems, foreclosure activity in California increased to its highest level in 2 years this past first quarter of 2006.

Lending institutions sent 18,668 default notices to California homeowners during January to March 2006. This reflected an increase of 23.4% from 15,122 for the prior quarter in Oct-Dec 2005, and up 28.7% from 14,501 for 1st quarter in 2005.

DataQuick's records showed that the lowest activitiy recorded was during 3rd quarter of 2004 with 12,145 default notice. Highest default notices recorded was during the 1st quarter of 1996.

In California, the annual home price appreciation rate peaked at 22.8% in the 2nd quarter of 2004 and has cooled to an annual appreciation of 12.4% in 1st quarter of 2006.

In San Diego County, home price increased 4.8% while default notices jumped 59.7% in the 1st quarter of 2006.

Notices of Default on Houses and Condos

County/Region 2005Q1 2006Q1 %Chg
Los Angeles 3,535 4,211 19.1%
Orange 775 1,107 42.8%
San Diego 960 1,533 59.7%
Riverside 1,307 2,148 64.3%
San Bernardino 1,427 1,670 17.0%
Ventura 261 433 65.9%
SoCal Total 8,330 11,102 33.3%
San Francisco 104 127 22.1%
Alameda 516 564 9.3%
Contra Costa 576 605 5.0%
Santa Clara 500 527 5.4%
San Mateo 188 186 -1.1%
Marin 64 76 18.8%
Solano 269 294 9.3%
Sonoma 139 157 12.9%
Napa 29 47 62.1%
Bay Area Total 2,385 2,583 8.3%
Santa Cruz 67 108 61.2%
Santa Barbara 93 133 43.0%
San Luis Obispo 70 75 7.1%
Monterey 79 129 63.3%
Coast Total 309 445 44.0%
Sacramento 763 1,136 48.9%
San Joaquin 451 586 29.9%
Placer 126 239 89.7%
Kern 406 461 13.5%
Fresno 494 540 9.3%
Madera 55 79 43.6%
Merced 135 153 13.3%
Tulare 211 212 0.5%
Yolo 42 48 14.3%
El Dorado 62 54 -12.9%
Stanislaus 291 451 55.0%
San Benito 27 49 81.5%
Yuba 23 48 108.7%
Sutter 31 28 -9.7%
Central Valley Total 3,117 4,130 32.5%
Mountains Total 110 96 -12.7%
North Calif Total 250 312 24.8%
Statewide 14,501 18,668 28.7%

Source: DataQuick Information Systems

 

May 3rd, 2006

March 2006 Median Home Prices in the Central Valley

Median Home Prices for all sales, including single family homes and condos in, in March 2006 in Central Valley counties, with year-over-year increases are:

. Fresno County, $295,000; 20.41 percent

. Kern County, $269,500; 28.33 percent

. Madera County, $325,000; 25.0 percent

. Merced County, $375,000; 25.0 percent

. Sacramento County, $370,000; 9.47 percent

. San Joaquin County, $436,500; 14.87 percent

. Stanislaus County, $375,000; 13.98 percent

. Tulare County, $252,500; 32.89 percent

. Yolo County, $419,500; 4.07 percent

Source: Central Valley Business Times

 

 

May 2nd, 2006

Central Valley Population on the Rise

Population in California grew 1.2% last year to 37.2 million persons.

One of the state's fastest growing cities was Bakersfield, which added 13,979 residents.

Bakersfield is now one of the 11 cities in California with population of over 300,000.

The over fast-growing cities in California are Patterson in Stanislaus County, which grew 19% to 19,269 residents; Lathrop in San Joaquin County which grew 13.5% to 14, 625 residents; Newman which grew 10.8% to 10,140 residents; Kerman which grew 10.3% to 12,633

According to the state, of 478 California cities, 357 gained population, eight experienced no change, and the remaining 113 lost population.

Los Angeles, California's largest city, added the most number of residents - 41,357, to a total population of 3,976,071.

Fresno is the 6th largest city in California with a population of 471,479, up 1.4% in the past year.

The state capital, Sacramento, grew 1.2% to 457,514 residents. .

The ranking of the state's ten most populated counties is the same since January 2004: Los Angeles (over 10 million people), Orange, San Diego (over 3 million people each), San Bernardino, Riverside, Santa Clara, Alameda, Sacramento, Contra Costa, and Fresno.

 

The10 fastest growing counties based on percent change are:

1. Yuba 69,827 (3.6 percent)

2. Riverside 1,953,330 (3.4 percent)

3. Imperial 166,585 (3.1 percent)

4. Kern 779,869 (2.9 percent)

5. Placer 316,508 (2.6 percent)

6. Madera 144,396 (2.6 percent)

7. Colusa 21,512 (2.6 percent)

8. Sutter 91,450 (2.6 percent)

9. Merced 246,751 (2.2 percent)

10. Tulare 420,619 (2.2 percent)

Source: Central Valley Business Times

May 1st, 2006

30 Year Mortgage Rates Continue to Rise

According to Freddie Mac, 30 year fixed mortgage rates averaged 6.58% last week, compared to 6.53% the previous week.

The 15 year fixed mortgage rates were also higher at 6.21% last week compared to 6.17% the previous week.

1 year ARMS were at 5.68% last week compared to 5.63% the previous week.

5 year ARMS were at 6.21% compared to 6.16% the previous week.

A year ago, the average rates were