New Data Shows More Home Price Gains

New Data Shows More Home Price Gains
AP--Sept 29

Home prices rose for the third month in a row, a closely watched index said Tuesday.

The Standard & Poor's/Case-Shiller home price index of 20 major cities rose 1.2 percent from June to a reading of 143.05. Though home prices are still 13.3 percent below July a year ago, the annual declines have slowed in all 20 cities for the sixth straight month.

The index is down about 33 percent from the peak in mid-2006. Home prices are now at levels not seen since the third quarter of 2003. And prices in Las Vegas, Detroit and Seattle are still falling on a monthly basis.

"We do need to be cautious in coming months to assess whether the housing market will weather the expiration of the federal first-time buyer's tax credit in November, anticipated higher unemployment rates and a possible increase in foreclosures," said David M. Blitzer, committee chairman for the Case-Shiller index.

First-time homeowners can qualify for a tax credit worth 10 percent of the purchase price, up to $8,000, but it expires at the end of November.

Still, there are clear positive trends: 13 metro area posted at least three straight months of price gains.

Copyright 2009 The Associated Press. .

2009-09-29 09:17:56

Ori Rosenbaum of Laguna Beach

Laguna's owner of Aurie Footwear, Ori Rosenbaum, was named one of America's most promising companies in 2009 by Forbes.com (September 16, 2009). Press release included comments on how to learn the secrets of the top 20 companies.

Studio Resturant at the Montage Receives High Review by LA Times
(latimes.com/features/food/la-fo-review16-2009sep16,0,5053214.story)

The California Credit Union League’s new California housing market forecast says …

• Some stabilization in late 2009 with an increase of home sales especially in the lower priced segment of the market.
• Home sale increase will likely begin with the coastal regions of the state.
• In Los Angeles and Orange County, median home price to increase 8% “due to an uptick in demand” by early 2010.
• 5% increase in state median price by 2010.
• Upturn will be slow and the environment will remain difficult for some time.
• California credit unions “have already begun to see an increase in mortgage applications for first-time homebuyers due in large part to low rates and government incentives to buy. The strongest demand is for foreclosed and lower-priced homes.”

CCUL analyst Daniel Penrod: “The good news is the California housing market should begin to show signs of recovery by 2010. However, consumer sentiment and especially unemployment fears will continue to keep potential buyers on the sidelines, and recovery will not officially be felt until buyers looking to upgrade their homes re-enter the housing market.”  (OC Register by John Lasner)

Southland home sales rise again as higher-cost areas awaken  (Data Quick News, August 18, 2009)

"Sales have increased year-over-year for 13 consecutive months. They’ve been driven higher by increased affordability, low mortgage rates, plentiful government-insured FHA financing for first-time buyers, robust investor demand and, more recently, improved access to the “jumbo” financing used to buy more expensive homes."