"The Process of Recovery Has Begun"

Good news and bad news: Sales of existing homes rose in July, surpassing expectations, as buyers snapped up deeply discounted properties in parts of the nation hit hardest by the housing bust.

However, the number of unsold properties hit an all-time high, the latest indication that the worst housing slump in decades is far from over. Prices nationwide are not expected to hit bottom until early next year.

The National Association of Realtors reported yesterday that sales rose 3.1 percent to a seasonally adjusted annual rate of 5 million units, up from June's downwardly revised rate of 4.85 million units. Sales had been expected to rise by 1.6 percent, according to economists surveyed by Thomson/IFR.

“The process of a recovery has begun,” said Joel Naroff, president of Naroff Economic Advisors. “It's not going to be short and swift, but it's begun nonetheless.”

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What the Media Isn't Telling You About the Real Estate Market

I enjoyed the latest blog post from TheRealEstateBloggers.com which talks about things the media ISN'T telling you about the real estate market.

Here are some facts from a government study done by the Office of Federal Housing Enterprise Oversight:
1. Coincidentally, the 3 states that have had the sharpest decline in home sales & prices are also 3 of the states that experienced the biggest booms (sharpest appreciation) during the early 2000s - California, Florida and Nevada.
2. Over half of all metropolitan statistical areas (MSAs) are showing price appreciation each quarter.
3. Of the 20 ranked cities with the greatest price declines over the latest four quarters, all but one (Las Vegas-Paradise, NV) are in California or Florida.
4. Only 15 out of 50 states have shown any actual price decline in the past year. The rest still show modest appreciation in home values.
5. Only 3 states have shown significant price declines from the first quarter of 2007 to the first quarter of 2008.
6. There are still many areas showing 5% or more appreciation over the past year, including but not limited to Bayou Cane LA with 11.22%, Wenatchee WA with 8% and Idaho Falls ID with 5.06%.
7. The type of annual appreciation we’ve seen since 2005 (ranging from 1.8% to 3.7%) is similar to the type of appreciation the U.S. experienced in the mid to late 90s, right before the real estate boom.

Wow, who knew? :)

Villa on French Riveria Sells for $750 Million

Think San Diego real estate is expensive? Try the French Riveria. A 106-year-old villa on the French Riviera has reportedly sold for $750 million, 10 times the costliest home on the market in San Diego today, according to the San Diego Union-Tribune.

The Villa Leopolda, a 20-acre estate with 1,200 olive, cypress and fruit trees, once owned by Belgian King Leopold II, was purchased by a Russian billionaire, according to the Nice-Matin newspaper.

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Lighting Up the Coronado Bridge

From the San Diego Union-Tribune...

Firms from France, the United Kingdom and California are the finalists to create an artistic lighting design to illuminate the San Diego-Coronado Bridge.

The three teams are the Bideau Company of Ballan-Mire, France; the Peter Fink team of London; and the team of Ned Kahn/Patrick McInerney Associates/ Jason Edling of California.

The design teams will be paid a stipend of $15,000 to cover design fees, research, accommodations and travel during public presentations at the end of the year.

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Associated Press: Pending Home Sales Rise 5.3 Percent

WASHINGTON – A measurement of pending home sales rose in June in a rare piece of positive news for the beleaguered market.

The National Association of Realtors' seasonally adjusted index of pending sales for existing homes rose 5.3 percent to 89 from May's reading, which was revised downward to 84.5 from an earlier reading of 84.7.

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Thinking about Buying? Know this Date: June 30, 2009.

According to housing expert Kenneth Harney, if you're thinking about buying, know this date: June 30, 2009. This date is the current deadline to qualify for the home purchase tax credit created by the massive housing bill approved by Congress.

What's the story? If you have not owned a house during the past three years – or are considering buying your first home – and can go to closing before the end of next June, you may be eligible for up to a $7,500 credit against your federal taxes for 2008 or 2009 ($3,750 if you file taxes as a single person).

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Property Tax Reassessments save San Diego Homeowners $91 Million

Property tax reassessments will save San Diego homeowners roughly $91 million annually--the most reductions since the housing decline, giving strapped property owners a welcome break.

This article from the San Diego Union-Tribune has more information.

But it is important to note...
"The relief is only temporary. When the housing market starts to rise again, the assessor can raise the assessed value back to its original level and tack on up to an additional 2 percent for each year, as if the reduction had never taken place."

Here's a comment from a reader:

"People need to crunch their numbers...if they are planning on using their house for what it was intended...a long term investment, then you have the potential for ALOT more taxation in the future if you sign up for this "offer.""

What do you think?

Housing Decline: The Beginning of the End?

California may be the first state to hit the bottom of the housing market, according to this article from Bloomberg.

"California is having a wrenching decline in wealth, but this is a cathartic event that will lay the foundation for a recovery,'' said Mark Zandi, chief economist at Moody's Economy.com in West Chester, Pennsylvania, in an interview. ``This signals the beginning of the end.''

Experts claim that the amount of foreclosures on the market--at about 40% to 60% of the price from the height of the market--are boosting sales. In addition, Bloomberg reports that home sales in California rose for three consecutive months starting in April. That’s the first time that’s happened in 30 months.

While experts say it will take some time to get thru the huge inventory of homes on the market--and of course option ARMS are set to start adjusting across the state next Spring--there might be some truth to the report: the end may be near.