I hope you are enjoying the summer that has finally arrived in Southern California. This has to be one of the cloudiest and dreariest summers in the past quarter century. With the sun finally coming out, people are out taking advantage of it and the real estate news cycle is fairly slow but as you will see below, we have a few interesting items to alert you to.
Mortgage Delinquencies Up Nationally: One in 10 American households with a home loan was behind on payments by at least one month this summer, the Associated Press reported. Mortgage Bankers Assn. report on second-quarter delinquencies as saying that 9.9% of borrowers fell into that category as of June 30. In a worrisome sign, the number of homeowners starting to have problems paying their home loans rose after trending downward last year. But the number of homes in the actual foreclosure process fell slightly, the first drop in four years, according to the Mortgage Bankers Assn. quarterly report.
New Homes Sales Reach Record Low: With the expiration this spring of federal tax credit, sales of new homes were at their lowest point since the government began keeping records in 1963…California even has a $10,000 tax credit in place for buying new construction but it doesn’t seem to be helping.
Sign of the Times: Sales of previously occupied homes plunged last month to the lowest level in 15 years, despite the lowest mortgage rates in decades and bargain prices in many areas. July’s sales fell by more than 27 percent, the largest monthly drop on records dating back to 1968, and sharp declines were recorded in all regions of the country.
Another example of 2004 pricing… A look at the 90401 zip (Santa Monica): This area is bordered by 11th Street to the East, The Pacific Ocean to the West, Wilshire Boulevard to the North and Pico Boulevard to the South and considered a starter area for Santa Monica, is within walking distance to Downtown and the Santa Monica shopping center. A few notable sales show prices trending toward 2003 levels…
1252 11th Street # 304 90401; 2+2, 1,142 sq. ft. YB:1973
Sold on 5/27/04 for $500,000
Sold on 5/6/10 for $450,000
Note: REO, Tenant Occupied
1239 9th Street # 7 90401 1+1, 598 sq. ft. YB:1987
Sold on 10/28/05 for $440,000
Sold on 4/27/10 for $385,000