Positive Signs in the Real Estate Market

The following article discusses some of the positive signs that have been happening across the country. In the Los Angeles area we have been getting quite a bit of traffic during our open houses. It appears that buyers are looking, they are just taking their time to find the perfect home.

Homes that are well priced, are clean and in good locations are moving quickly, with some going into multiple offers. Our high-end market continues to be strong, with a great selection available throughout the area.

Americans Optimistic about Homeownership - AOL/Zogby Poll
Americans still feel optimistic about homeownership, according to a recent survey from AOL Real Estate and Zogby International. More than half of the survey respondents said they believe homeownership is still attainable for most people. Continued messaging about the long-term investment value of a home is taking hold:

 69 percent of those surveyed said they see real estate as a viable investment; 31 percent of participants said they feel their home is worth more today than it was a year ago, and 56 percent do not think their home will be worth less in five years.

 The "buyers market" message is taking hold as well. According to the survey, if Americans had to sell today, 50 percent would consider buying another home instead of waiting out the market and renting.

-- "AOL/Zogby Survey: U.S. Trends on Home Values," AOL Real Estate, April 21, 2008.

Positive Signs for Economy Provide Hope for the Housing Market
It's undeniable that there are some glimmers out there that the underlying economy and financing marketplace, which after all are what support real estate activity, finally may be headed in a positive direction.

 The latest Conference Board "Index of Leading Indicators," which is based on a broad survey of industry data and predicts economic activity three to six months down the road, registered its first increase in six months. The index suggests that there should be positive growth underway in the second half of the year, if not sooner.

 A new report from the National Bureau of Economic Research which found that industrial production in the U.S. showed an unexpected uptick in March.

-- "Real Estate Outlook: Index Says Positive Growth Underway," by Kenneth Harney, Realty Times, April 24, 2008.

OFHEO: Home Prices Rise 0.6% in February
U.S. home prices rose 0.6% in February from the prior month, the Office of Federal Housing Enterprise Oversight reported Tuesday. The OFHEO index is based on repeat sales of homes mortgaged through Fannie Mae and Freddie Mac. For February, prices rose a seasonally adjusted 2.2% in New England, and 0.3% in the Pacific region.

-- "U.S. Feb. OFHEO Home Prices Rise 0.6%," by Ruth Mantell, MarketWatch, April 22, 2008.

Home Affordability Provides Opportunity for First Time Homebuyers
 "The home affordability index is at a 58 month high and I think that first-time buyers have noticed this. ... Thirty-nine percent of homebuyers now are first-time homebuyers."

 "Interest rates are at historic lows, inventory levels make this a buyers market because there's a lot more to choose from and prices are relatively flat across most of the country."

-- Jim Gillespie, president and CEO, Coldwell Banker, "Real Estate Realities - Interview with Jim Gillespie," CNBC (video), April 22, 2008.

"I'm still a believer in the long-term viability of housing as a solid investment if you buy at the right price. This has me thinking that the current shakeout is in fact creating an interesting sweet spot for first-time homebuyers to at least start checking out the market."

-- Suzie Orman, author and TV host, "This Could be the Time to Buy a House," Detroit Free Press, April 21, 2008.

It's too early to talk of a trend, but lower house prices and mortgage rates are bringing buyers out of hibernation, at least in some markets. Provided sellers are prepared to cut prices, buyers are willing to bid, real estate agents say. "I'm seeing a lot more young purchasers. The phones are ringing, multiple offers, more showings, just a lot more activity than we were having."

-- Lauralee Ensign, owner, Fairfield, Calif. real estate office, "Brokers Feel a Pulse in Home Market,"
by Lynn Adler, Reuters, April 16, 2008.

Regional Update: Good News from Markets around the Nation

San Francisco, Calif.
A market dynamics study for single-family dwellings and condominiums in San Francisco shows sale prices continue to climb. In March 2006, the median sale price was $780,000 and it jumped to $810,000 in March 2008. "There is a great deal of inventory in the marketplace, interest rates are low and, as this data clearly indicates, San Francisco continues to be one of the best performing areas in the entire country."

-- Chuck Colliver, president of the board of directors of the San Francisco Association of REALTORS®,  "Median Sale Price of San Francisco Single-Family Dwellings and Condominiums Continue to Rise," Business Wire, April 22, 2008.

Brevard County, Fla.
New numbers from the University of Central Florida said Brevard County was getting hit harder than anywhere else in Central Florida by the housing slump, but things could be changing. "It's actually increased over the last couple months. I'm surprised that they're still coming out with reports the housing market's down. We are swamped."

-- Jason Bucci, a real estate agency sales manager, "Study: Brevard Housing Slump Worst in Central Florida," News 13, April 21, 2008.

Spokane, Wash.
Fortunately for the local real estate market, the wintry weather has passed, and Spokane's housing industry still enjoys a key benefit: The area's diversified economy is in better shape than are many other parts of the nation. Forbes.com recently named Spokane the country's ninth-best metro area for business and careers. "We're bucking the trend that's around the country."

-- Rob Higgins of the Spokane Association of Realtors, "Diversified Economy Helps Spokane Home Prices Hold Up," USA Today, April 22, 2008.