Explosion Summary for California

Explosion Summary for California

 

What the Media tells us (the buyers/sellers) about real estate can be true or false.  As a consumer, how do you know when to decide that the truth is being told?  It’s simple.  Instead of saying “show me the money”… say, “Show me the stats”. 

 

Tell us if you believe these 12 questions to be true or false.  So here they go:

  1. April 22nd:  The OC Register reported that Home buying demand jumps 23%.  Wave of 1st time buyers causes number of properties in escrow to soar as compared to a year ago.   True or false:  Activity is a strong hint that the county will see mathematical end to the home buying slump. 
  2. May 23rd:  The OC Register reported that Chino Hills opens a 400,000 square foot mall called The Shoppes.  The mall is 91% leased and will be surrounded by 240 units of luxury housing and 50,000 square feet of office space.  True or false:  Placing this huge mall in the heart of Chino Hills will attract new comers to the city. 
  3. May 23rd:  The OC Registered reported that Wall Street Investors sink $500 million into Standard Pacific home builders.  Marlin Patterson which oversees $9 billion in investments, will employ a series of deals to help get the builder back on trackTrue or false:  Wall Street Investors are out of their mind to sink in so much money into building more homes, they must have too much money lying around that they don’t know of a better way to get rid of it
  4. May 30th:  The OC Register reported that a 15,000 square foot home in Coto De Caza sold for $19.5 million the previous week which was a record over the previous $15 million high in 2005.  True or false:  The people who bought this Coto De Caza home are Realtors running a conspiracy to make the rest of us think the housing slump days are over. 
  5. June 1st:  The LA Times reported that sales of bank-owned properties are picking up.  REO’s in good condition and listed at $300,000 or less is drawing as many as 15-20 bids from home buyers.  True or false:  One home in LA was listed at $250,000 and it was bid up to over $500,000, which was the market price.  
  6. June 3rd: OC Register reported that the demand for OC homes NOW is topping 2006 pace.  The number of deals in escrow as of the previous Thursday was 2720, an improvement of 46% from a year ago and 4% higher than at this time in 2006.  True or false:  The index shows that it would take 5.61 months of buyers to purchase all the homes listed for sale today compares to 5.82 (two weeks ago) and 8.86 months (one year ago).   
  7. June 3rd:  OC Register reported that Economists at Global Insight and National City Bank say Orange County housing is now 5.2% undervalued.  It’s the first time this math shows local homes as relative bargains to board economics since the 2nd quarter of 2003.  It’s also the largest undervaluation since the final three months of 2002.  True or false:  This data shows that new purchase deals in the works are at a two-year high. 
  8. June 3rd:  OC Register reported that Federal Reserve Chairman Ben Bernanke said he does not believe the United States will experience the out-of-control prices seen with the 1970’s oil shock.  “We see little indication today of the beginnings of a 1970’s style wag-price spiral, in which wages and prices chased each other ever upward” Bernanke said.  True or false:  These remarks by Bernanke came just a day after he said that the Fed’s rate-cutting campaign was coming to an end because of increasing concerns of inflation
  9. June 5th:  OC Register reported that the Labor Department stated that productivity rose at an annual rate of 2.6% from January through March, faster than the government’s estimate of 2.2% a month ago.  Wage pressures eased from the final three months of last year as labor costs rose at an annual rate of 2.2% in the first quarter compared to 4.7% surge late in 2007True or false:  Rising productivity allows business to finance higher wages from increased output
  10. June 8th:  OC Register reported that the rent/buy ratio is looking better for O.C. housing.  The rent/buy ratio for orange county in the first quarter was 22.2  (down from a peak of 29.7).  True or false:  Downward slope in the rent ratios is an indication that houses are becoming more affordable to buy.  
  11. June 9th:  National Association of Realtors reported that the pending home sales index rose nationally by 6.3% to 88.2 from a reading of 83 in March.  It’s the highest index since last October, but remains 13.1% lower than April 2007 when it stood at 101.5.  In the West, the Pending home sales index rose 8.3% to 98.8 in April and is 4.0% higher than April 2007.  Lawrence Yun, NAR chief economist, says that the underlying fundamentals point to pent-up demand:  “Home sales are at a bout the same level as they were 10 years ago, yet the population has grown by 25 million people and we have over 10 million more jobs.”  True or false:  Orange County in particular is one of the strongest real estate markets in the nation. 
  12. June 14th:  Market Trends Graph reported that as of May 30th, For Orange County, we have reached the highest number of sales since March 2007.  Sales have been trending up every month since the low of 1056 in January 2008.  (January 2008- 1056; February 2008- 1243; March 2008- 1658; April 2008- 2019; May 2008- 2210).  True or false:  As a buyer, if I am standing on the fence lines waiting to jump at the right opportunity to purchase real estate in Orange County, I should take the jump now. 

 

ANSWER KEY:

1.   TRUE

2.   TRUE

3.   FALSE

4.   FALSE

5.   TRUE

6.   TRUE

7.   TRUE

8.   TRUE

9.   TRUE

10.  TRUE

11.  TRUE

12.  TRUE

 

So… all of this leads me to wonder, how many investments properties should I personally jump into before year’s end?  What about you?

 

Thanks,

 

Your Team @ LovelyCaliforniaHomes.com

Advertisements

0 Responses to “Explosion Summary for California”



  1. Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s





%d bloggers like this: