California News Blog

Blogging the golden state and beyond

California News Blog header image 1

Newport Beach Real Estate

February 2nd, 2010 · Real Estate

The headquarters of Pacific Life Insurance Com...
Image via Wikipedia

Real estate experts have seen promising signs for Southern California and Newport Beach real estate.  Over the past few months, the Southern California region has posted increases in both its home sales and median sales prices.  Despite real estate struggles that began in 2007, prior to the economic recession of 2008, which only worsened the situation, Southern California has provided real estate experts with optimistic views of the future.  Many experts believe that the greater affordability of housing in the region, as well as favorable interest rates, the decline of the inventory of foreclosed properties, and the federal tax credit will play major roles in the recovery of the Newport Beach real estate market during the 2010 year.

According to DQNews.com, Southern California has posted significant improvements in the region’s real estate markets with an increase in both the number of houses and condos sold and the median sales price.  In December of 2009, a total of 22,328 new and resale houses and condos were sold in Southern California, a 16.4 percent increase from that of the previous year, and a 12.1 percent from that of the previous year.  December marked the 18th consecutive month in which Southern maintained a year-over-year gain in terms of home sales.  December also marked the first month with year-over-year gains in the median sales price.  In December, the median sales price for houses and condos in Southern California was $289,00, a 1.4 percent increase from $285,000 in November and a 4 percent increase from $278,000 a year earlier.

The Los Angeles Times has also reported on the recent improvements made to the Southern California real estate market.  The LA Times reported that very favorable interest rates and more affordable housing played a major role in the recent increases in real estate activity and median sales prices.  The rebounding home prices is expected to lead the recovery of the housing market as construction and development projects are also increased to satisfy the increasing demand for housing in the Southern California region.  Real estate experts also believe that the federal tax credit will spur real estate activity as the deadline approaches in the spring.

Reblog this post [with Zemanta]

→ No CommentsTags: ·······

San Jose Starting Over

January 26th, 2010 · Art, Business, Real Estate

San Jose, the oldest city in California, is rich in cultural and historical heritage. It has a diverse racial population and numerous economic opportunities. Families journeying to San Jose are finding out why the city is said to be enjoyable to live in.

The HP Pavilion at San Jose in San Jose, Calif...

The city is about 175 square miles and perfectly situated in northern California. It’s the third largest in the state of California and the 11th largest in the nation with over 912,000 residents. San Jose is located in the Santa Clara Valley and nearby city neighbors Buena Vista and Burbank. After a 14.2% increase in population from 1990 to 2000, the number of people heading over to San Jose slowed down in recent years. Based from the 2005 statistics of the U.S. Census Bureau, the median age of city residents was 34.7 years. Three parts make nearly the whole population of San Jose with 32% of White

non-Hispanic, 32% Asian and 31% Hispanic races. Accounting for 73% of city households is the average of 3.1 people per home. English is not the primary language for 55% of city homes because 38% of San Jose’s residents are foreign-born.

San Jose has low unemployment and poverty; their earnings are among the best in California. People going to San Jose are finding well-paying jobs with a median household income of $70,921, as of 2005. Management, professional and other related occupations, which make up 40% of the workforce, are among the most common in the city. Also in 2005 study, poverty was 3% below the national average of 10%, only 4.9% for White non-Hispanic residents. A large part of the city’s economy is Agriculture with wine production and food processing and distribution among the leading industries. However, it is technology that has made San Jose what it is today. At the heart of the city is Silicon Valley, known for its prominence in semiconductor and computer-related technology. In Silicon Valley, you’ll find some of the industry giants’ headquarters, like Adobe Systems, Cisco and eBay. Hewlett-Packard, IBM and Hitachi also have bases in the city.

San Jose real estate has some high property values that have risen greatly since 2000, when the median home was marked at a value of $427, 800. The value went up to 625,400 in 2005. This is a very moderate increase in a state with surging home values. Still, new home construction is in decline. The number of building permits has dwindled from 2329 building built in 1997 to 602 permits in 2006. Home ownership in San Jose is high compared to the rest of California with 62% of homes occupied by owners. The average age of city dwellings is below the state average with 18% of housing units built since 1990. The median housing costs of mortgaged owners was $2409, non-mortgaged owners $439, and renters $1,153.

San Jose is one of the safest places to live in America, especially for its size. Morgan Quitno ranked it #1 among the big cities for 3 years in a row. Stolen reports, however, have been on the rise from 2615 thefts in 1999 to over 5,500 in 2005. The FBI Crime Rate dropped during the same period to 236.8 compared to the U.S. average of 325.2. In San Jose, 36% of its citizens hold a bachelor’s degree or higher, which is high compared to the national average. One big college in the city is San Jose State University having full-time enrollment of 20,861 students.

San Jose also has a good climate. Residents enjoy mild but semi-arid weather with about 15 inches of annual precipitation. The average temperature in January is 48.7 while July sees high temperatures averaging 84 degrees. With 300 sunny days per year, the average annual temperature is 70 degrees.

Cranium Inc., named San Jose as the Most Fun City in America. This is due to several things like a number of popular beaches on the Pacific Ocean are 20 minutes away from San Jose. Nearby Santa Cruz is a popular hangout for surfers. Residents can also access nearby mountain ranges for summer hiking and water skiing. The city is also a short distance from the topnotch golf courses, including the popular Pebble Beach. One major sports franchise, the NHL’s San Jose Sharks makes their home on the ice at the HP Pavilion, known as the “Shark Tank”. Commuters seldom use public transportation. In 2005, 78% of workers drove to work alone while only 3% used mass transit. Those who commuted to work took an average of 25 minutes to arrive at their respective jobs. There are also three international airports in the area, with Norman Y. Mineta San Jose International being the closest, followed by Oakland and San Francisco. Amtrak also offers its services to San Jose.

Reblog this post [with Zemanta]

→ No CommentsTags: ·······

Santa Rosa Real Estate

January 22nd, 2010 · Real Estate

City of Santa Rosa
Image via Wikipedia

Located about an hour north of San Francisco, the city of Santa Rosa lies at the northern end of the Bay Area. Despite the real estate struggles faced by many real estate markets throughout California since 2007, the economic recession that began in the fall of 2008 only worsened the situation, causing foreclosure rates to rocket upwards, median prices to slide, and real estate activity to stall. The financial stability of California and the concern for job security have also been major obstacles slowing the recovery of the Santa Rosa real estate, as well as that of the entire Bay Area real estate market. However, real estate experts have seen promising signs over the past few months with increasing median prices and a pick up in home sales, providing optimistic views of the Santa Rosa real estate market and suggesting that recovery is near.

According to DQNews.com, the Bay Area real estate has posted major improvements over the past several months, resulting in the first year over year gains in home sales and median prices seen in months. The median price for new and resale houses posted during the month of November was $387,000, a slight drop from the $390,000 level posted during the previous months, but still up 10.6 percent from the $350,000 seen during November of 2008. Home sales also rose over the past several of months, with a total of 6,878 new and resale houses and condos sold in November, down 13.3 percent from the previous month, but up 19.5 percent from the previous year. Real estate experts aren’t worried about the slight drop between October and November though, because historical data trends have shown the decline to be normal. Experts believe that the dwindling inventory of foreclosed or distressed properties have been the major cause for the increase in median sales prices, and the federal tax credit is believed to have played a major role in the recent uptick in home sales.

The North Bay Business Journal has also reported that there are promising signs for the commercial real estate market in the North Bay area. Many real estate experts believe the market has already hit bottom, so the only direction it can go in is up. The affordability of office space has allowed vacancy rates to stabilize as landlords take extra measures to keep their tenants happy. Experts have also noted that stabilizing unemployment rates have also played a major role in the recent improvements made in the commercial real estate market.

Reblog this post [with Zemanta]

→ No CommentsTags: ·······

Berkeley Real Estate

January 13th, 2010 · Real Estate

City of Berkeley
Image via Wikipedia

Real estate experts hold optimistic views of the Berkeley real estate market’s future, as recent months have shown promising improvements with increases in both home sales and median prices.  Despite concerns over job security and another wave of home foreclosures, activity in the Berkeley real estate market has increased in the past few months as a result of the federal tax credit and affordability of housing due to the large inventory of “bargain” priced properties that were previously foreclosed on.  Although it is unsure whether the Bay Area real estate is out of the woods and working towards a full recovery, real estate experts are hopeful that the future will continue to bring improvements.

According to DQNews.com, the Bay Area in California has posted increases in both home sales and median sales prices to top levels seen during the previous year.  In November, the median price paid for new or resale houses and condos sold in the Bay Area was $387,000, a 10.6 percent increase from $350,000 in November of 2008.  November was the second month that the Bay Area has posted year-over-year gains in its median sales price, but the current median price level is still 41.8 percent below the $665,000 average posted during the peak reached in the summer of 2007.  The Bay Area also posted 6,878 new and resale house and condo sales during the month of November, which was a 19.5 percent increase from the 5,756 sales posted in November of 2008.  There was a slight dip in the sales and median price between October and November, but real estate experts aren’t concerned since the market was only following the usual market trends.

Nuwire Investor has also reported the recent improvements made in the Bay Area real estate market in terms of its median prices.  Nuwire Investor has noted that most real estate experts feel that the reduced number of foreclosures selling and greater activity in the more expensive housing markets have been the major factors in the recent increase in the median sales prices.  The year-over-year increases posted in October and November of 2009 were the first time the Bay Area has had year-over-year increases since November of 2007.

Reblog this post [with Zemanta]

→ No CommentsTags: ·······

Oakland Real Estate Market

December 30th, 2009 · Art, Real Estate

City of Oakland
Image via Wikipedia

Like so many other cities in the Golden State, Oakland, California, took a heavy hit when the residential real estate crisis began plaguing communities across America, helping to trigger the country’s worst economic recession in decades. Oakland saw more struggling mortgage holders, higher inventory due to foreclosures and a falling in prices. But lately the market there has shown signs of improvement and reason for optimism.

According to the California Association of Realtor’s data, prices in Oakland, unlike in so many other cities across the nation, actually saw a bounce back up in late 2009. In October, the median price for homes for sale in Oakland the sold, including ew and existing, condos and single-family homes, was $250,000, up slightly from the figure during the same time of 2008, when it was just $238,000. The figure makes for a 5% increase year-over-year.

The Oakland Association of Realtor’s data shows similar figures. In October, there were 454 homes listed for sale in the Oakland real estate market, at a median sales price of $402,113. The asking price was down from 2008’s $419,013, but the number of listings in the month has seen a steady drop. In 2008, there were 666 homes listed; this year, there were just 454.

Sales, too, show signs of improvement. The market for real estate in Oakland saw 388 homes closed upon in October, up slightly from 2008, when 368 homes sold. The homes sold had a median price of nearly $373,000, up from 2008, when that figure was just around $352,000. The days the homes spent on the market had fallen too — from 56 to 40. The coming of 2010 will show whether the Oakland market is back on its way up for good, or if these signs were just passing.

Reblog this post [with Zemanta]

→ No CommentsTags: ·······

Santa Cruz Homes Sales Report

December 23rd, 2009 · Real Estate

Santa Cruz de la Sierra

The Santa Cruz real estate market seems to be in a bit of trouble, considering an unpleasant combination of decreasing property values and an overall bad economy. Even efforts at relief by the federal government seem to be falling flat, according to a November 7, 2009 article in the Santa Cruz Sentinel. According to the article by Jondi Gumz, “The housing bubble that pushed prices above $700,000 in Santa Cruz County appears to preclude most local borrowers from taking advantage of a new program designed to help borrowers on the foreclosure stay in their homes…In Santa Cruz County, 30 to 40 borrowers a week are getting notices of default for failure to pay – 1,764 so far this year, according to the Santa Cruz Record…Figures for Santa Cruz County are comparable. The median price for a single-family home topped $700,000 for a three-year stretch starting in 2005, and median rent in the last quarter was the most expensive rent in the state at $1,569 a month.”

Santa Cruz homes for sale are facing decreased property values recently, according to a November 12, 2009 article released in the Santa Cruz Sentinel. The piece noted that “In 2005, when the project was on the drawing board, the housing market was hot. A 3-bedroom 2 1/2-bath townhome might have fetched $700,000 then but now asking prices for two of the units are $430,000 and $450,000. The downturn has created upheaval for everyone involved in the Doyle Street project, from the developers to the tenants, the lenders and the tradespeople who worked on the project… ‘I was so proud of the that project,’ said Judith Miller, a Corralitos real estate broker who built the development with her husband, Wayne, an architect. ‘It’s a horrible situation. The value is gone. You can’t get a non-owner-occupied loan without equity.’”

A larger scale problem for real estate in Santa Cruz was reported by a November 24, 2009 article in the Santa Cruz Sentinel. According to the piece by Kurtis Alexander, “One in five county residents have moved in temporarily with friends or family. One in five are without health insurance. And nearly a quarter are no longer saving money. The sobering figures come with the new Santa Cruz County Community Assessment Project…”

Reblog this post [with Zemanta]

→ No CommentsTags: ·······

Anaheim

December 15th, 2009 · Real Estate

Angel Stadium of Anaheim, home of the Los Ange...
Image via Wikipedia

Anaheim, a neighborhood in the Los Angeles area, has suffered like many of its neighbors in the housing market downtown. With the onset of the financial crisis across the U.S., with ripples felt worldwide, the housing market in California began to take a dive, seeing home values plummet and foreclosures rise. Though the Anaheim real estate market is beginning to signs of improvement, it hasn’t made its way out of the woods yet completely.

Inventory is one area where the market has seen improvement in the area lately. According to the Orange County Housing Report, houses on the market as of Nov. 25 had spent an average of 2.74 months on the market before selling, down markedly from 7.14 months one year ago and 10.93 months two years ago. Much of the increased activity of these homes for sale in Anaheim can be attributed to the government’s program to offer tax incentives to home buyers in order to stimulate the housing market.

Prices in Anaheim, however, are still suffering and have not yet climbed their way out of the hole. One of the city’s ZIP codes featured a median home price in during a three-week period in November of $420,000, while another ZIP code featured a $375,000 median price. Those prices were down 9.7% and 35.3%, respectively.

The higher-priced market of real estate in Anaheim is also still suffering, with many homes stagnating on the market as buyers sit on the sidelines. As of November, according to local realtor Lesslie Giacobbi, there were nine homes for 29 homes on the market for more than $1 million, while there were more than 50 homes for sale in the under $1 million range, though those homes tend to spend less time on the market.

Reblog this post [with Zemanta]

→ No CommentsTags: ·······

Santa Barbara Real Estate

December 9th, 2009 · Real Estate

Southern California has had its great share of real estate struggles since 2007, and the economic recession of 2008 only made it worse.  However, over the past few months, a stabilizing real estate market has offered optimistic views of the future of the Southern California real estate market.  Home sales are beginning to rise and the drop in median prices have slowed, giving real estate experts the impression that the real estate market has hit bottom and is poised for a rebound.  However, many still feel that the economic stability of the state of California and the concern for job security still pose as major obstacles to the successful recovery of the Southern California real estate market.

Santa Barbara Blacklight
Image by BURИBLUE via Flickr

According to DQNews.com, many cities, including Santa Barbara, are beginning to post increases in home sales and slower declines in the median price of home sales.  In fact, October experienced the smallest decline in median home prices since 2007, primarily due to a smaller inventory of foreclosed and distressed properties on the market.  The median price for a home in Southern California was $280,000, up 1.8 percent from the previous month but down 6.7 percent from the previous year.  Some regions near Santa Barbara are even beginning to experience year over year gains in the overall median home price.  In October of 2009, about 22,000 new and resale houses and condos were sold in Southern California, which was a 2.8 percent increase from the previous month and also a 2.8 percent increase form the previous year.  October also marked the 16th consecutive month ending in a year over year gain in home sales.  Experts also believe that the federal tax credit for first time home buyers has also been a major factor in the increase in home sales, as well as affordable mortgage rates and home prices.

The Pacific Coast Business Times also reports that real estate experts forecast that the Santa Barbara real estate market will rebound in the coming months as signs show that the market has already hit bottom.  Declining foreclosure rates will play a major role in the improvement of median home prices.  However, experts still believe that the commercial real estate market has a longer way to come, given that the market is still struggling with a 13.3 percent vacancy rate and virtually nonexistent construction activity.

Reblog this post [with Zemanta]

→ No CommentsTags: ·······

San Bruno Real Estate

December 8th, 2009 · Real Estate

The most expensive real estate in the Bay Area
Image by Jose C Silva via Flickr

Real estate experts are optimistic that the real estate in San Bruno and the surrounding Bay Area has hit bottom and is ready to rebound.  Realtors are reporting dwindling inventory of distressed properties and many communities in the Bay Area are even beginning to post year over year gains in median prices.  Although the recession of 2008 greatly deepened the real estate troubles in San Bruno, the real estate in the region was already struggling after experiencing a significant decline in sales and median prices during 2007.  However, many real estate experts still believe that the Bay Area might experience a few more slight declines in sales and/or median prices as the year comes to an end, with a full recovery not coming round till early to mid 2010.

According to DQNews.com, the Bay Area posted its first year over year gain in median sales price since 2007.  However, many communities are still struggling to sell, especially those with large inventories of luxury homes.  Currently, distressed properties and entry-level homes offering homebuyers the “bargain” prices that many are looking for are making up the vast majority of home sales in the Bay Area.  However, as the number of distressed properties for sale decreases, homebuyers are being forced to move up to the slightly more expensive homes, causing the increases in median sales prices.  The median prices for all new and resale houses and condos in the Bay Area during October rose 6.8 percent to $390,000 from $365,000 in September of 2009 and up 4 percent from $375,000 in October of 2008.  A total of 7,993 homes were sold in October, a 0.7 increase from the previous month and a 4.2 percent increase from October the year before.

The San Francisco Chronicle noted the recent success and improvements seen in the Bay Area real estate, but also noted the concern by many local real estate experts that the recent increase may not be proof that the real estate market in the area is ready for a full recovery.  Many experts believe that recovery is still a few months away, most likely sometime during the first or second quarter of 2010.  Experts also believe that the region might even experience slight declines during the next few months as the market may not have completely hit bottom.

Reblog this post [with Zemanta]

→ No CommentsTags: ·······

Walnut Creek real estate update

October 2nd, 2009 · Real Estate

walnut-creekWalnut Creek is not immune to the global recession that has affected places around the world.  Interestingly, Walnut Creek homes for sale are facing stiff consequences as a result of the “economic downturn that we are experiencing which is far from over and we need to settle in for a long and slow recovery,” according to San Francisco Business Times reporter Blanca Torres on September 17, 2009.  In her interview with economics guru Chris Thornberg, Torres writes that “the problems began years ago when homebuilders began producing more supply than there was demand and financiers figured out ways to inflate securities, especially commercial mortgage-backed securities.”

Yahoo! Real Estate’s recent estimates place Walnut Creek real estate at a relatively stead state with 321 new homes for sale at a median price of $530,000.  This marks a one percent increase in price since August which is a welcome change to home sellers who have been suffering in the local market for years.  However, foreclosures spell a different story.  There are 363 homes on the foreclosure market, selling at a median price of just $421,600.  This is a notable 2.4 percent decline from the previous month.  However, most analysts believe that in the bigger scheme of things, minimal declines can be considered an achievement.

Like many other towns and cities in the Bay Area, Walnut Creek has seen significant downturns in its local housing markets on both the commercial and residential sides of real estate.  A September 16, 2009, article in the San Francisco Business Times by Eric Young claimed that despite the Bay Area’s competitive advantages, the global recession that has hit almost every housing market around the world would continue to “inflict pain on the region into next year.”  According to Young, homes and real estate in Walnut Creek will experience sales declines through 2010 and plateau in 2012.  Hopefully, beyond 2012, the market will experience growth and regain the pricing power it had prior to the market collapse.  Uncertainty with regard to the future of the housing market has led to more people hanging on to their properties instead of selling early.

→ No CommentsTags: ··