Existing home sales see largest gain in years

From MSNBC.com:
Sales of existing homes rose by the largest amount in more than five years in September. But analysts cautioned against reading too much into the gain, noting that it reflected conditions before the latest upheaval in financial markets increased the likelihood of a recession in the overall economy.

The National Association of Realtors reported that sales of existing homes rose by 5.5 percent from August to September to a seasonally adjusted annual rate of 5.18 million units — far better than the flat results analysts had expected. On an unadjusted basis, sales were up 7.8 percent from September last year.

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Rates on 30 Year Mortgages Drop

Rates on 30-year fixed-rate mortgages dropped sharply this week, falling to the lowest level in five weeks, Freddie Mac reported in its nationwide survey. The rates fell to 6.04 percent, down from 6.46 percent last week.

Rates on 15-year fixed-rate mortgages fell to 5.72 percent from 6.14 percent. Rates on five-year adjustable-rate mortgages fell to 6.06 percent from 6.14 percent last week. However, rates on one-year adjustable-rate mortgages rose to 5.23 percent from 5.16 percent last week.
Rates don't include add-on fees known as points. The nationwide fee for 30-year, 15-year and five-year mortgages was 0.6 point. For one-year mortgages, the fee was 0.5 point.

Local Experts: Housing Downturn Approaching Bottom

SAN DIEGO UNION-TRIBUNE:

An unusual September jump in home sales, together with the biggest monthly drop yet in prices, could be early signs that San Diego County housing is approaching the bottom of a three-year-old downturn, industry experts and observers said yesterday.

MDA DataQuick reported that the median price for all homes dropped $22,000 from August to stand at $328,000 last month, the lowest since June 2002. The figure represented a 34.6 percent drop from the all-time peak of $517,500 set in November 2005.
Sales jumped 56.4 percent to 3,366 transactions from year ago levels, a reflection of the very low sales completed in September 2007 in reaction to the credit crunch and subprime mortgage crisis.

Though the timing of a recovery will hinge on the course of the overall economy, some observers said the increase in volume suggests that more investors are deciding that prices have fallen to bargain levels and are getting into the market.

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10 Most Expensive Zipcodes in the U.S.

Rancho Santa Fe ranks #9 in a list of the most expensive zip codes in the U.S, as compiled by Forbes.

Here's the list:


33109 – Fisher Island, Fla., Miami-Dade County Median sales price: $3.85 million
07620 – Alpine, N.J., Bergen County Median sales price: $3.59 million
11765 – Mill Neck, N.Y., Nassau County Median sales price: $3 million
92657 – Newport Coast, Calif. Orange County Median sales price: $2.8 million
11976 – Water Mill, N.Y. Suffolk County Median sales price: $2.72 million
94027 – Atherton, Calif. San Mateo County Median home price: $2.7 million
93108 – Santa Barbara, Calif. , Santa Barbara County Median home price: $2.7 million
11975 – Wainscott, N.Y. Suffolk County Median home price: $2.56 million
92067 – Rancho Santa Fe, Calif. San Diego County Median home price: $2.47 million
90210 – Beverly Hills, Calif. , Los Angeles County Median home price: $2.41 million

Alan Greenspan: Housing Set to Recover Early 2009

From Reuters: Former Federal Reserve chairman Alan Greenspan said the U.S. housing market will begin to recover in the first half of 2009, according to an article he wrote for Emerging Markets magazine published on Friday.

Greenspan wrote that the recent slowing in the rate of decline in U.S. home prices is the first positive note in the year-long trauma and that eventually, frozen credit markets will thaw "as frightened investors take tentative steps toward reengagement with risk."

"More conclusive signs of pending home price stability are likely to become visible in the first half of 2009," he wrote.

Th former Fed chief says a healing housing market will aid the credit crisis.

Click here for a link to the article on MSNBC.com.

Pending Home Sales Up for August...up 18.4% in the West

Good news as the combination of lower prices, low interest rates, and pent up demand comes to a head...

Pending home sales in a report issued by the National Association of Realtors are up 7.4 percent in August compared to July, 2008. The numbers are up 8.8 percent over August, 2007. For the West, the gain is more significant...up 18.4%.

While it is not time to crack open the champagne bottles, it is a sign that consumer demand and pricing are finding an equilibrium.

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Mortgage Rates Drop Below 6%

WASHINGTON - Rates on 30-year mortgages fell below 6 percent this week, recording the first decline in three weeks.

Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed rate mortgages averaged 5.94 percent this week, down from 6.10 percent last week. It marked the first decline since rates fell on Sept. 18 to 5.78 percent, a seven-month low.

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