Lofts Hit Their Stride

Dubbed the McLoft in this article, the loft is being built from scratch in the suburbs. For the displaced New Yorker or Chicagoan who doesn't want to step out onto a busy street, a new type of condo is coming of age in Scottsdale, AZ and other unlikely places. Buyers are paying as much as 50% more per square foot for a loft over a single-family home. For builders this is a great return on a projects where they don't have to meet such strict codes as in other multifamily dwellings, and some buyers want raw, unfinished space. If you're looking for lofts, try Long Beach where you can have real converted space in a not too urban city area.

So Cal Median Home Price Lower in January

DataQuick's 2/15 release puts the Southern California January median home price for 6 counties at $469,000, down 2.1 percent from November and December. January is usually a slower month for sales, but was still up from $415,000 in January of 2005, an increase of 13% overall. January 2006 had the lowest number of homes sold since January 2001. Whether or not this means an overall slowing in the market is not known just yet.

Interest Rates Back Down

The 30-year rate average went to 5.81 percent on Friday, according to Bankrate.com's averages based on its survey of 4,000 banks in 40 states.

Zillow.com is a Zing

The new Zillow.com site seems interesting, but in the end doesn't seem any more unusual than any other site based on local property tax records data, which is sometimes inaccurate in itself. This site happens to combine with aerial photo technology so that you can see the exact location, and it gives you an estimate of value. But that doesn't necessarily sync with the current market value, so the viewer should be careful about making final conclusions without further investigation. An average or a median price for a zip code area does not give spccific value for a specific property, any more than the selling price for the last market sale is the same as today's market value.

Commercial/Multifamily Originations Set New Record in 2005 - 48% Higher than in 2004

Multifamily loans made up 36 percent of the total loans made in 2005. They increased by 44 percent over 2004. While single family home and condo sales slowed, commercial and multifamily loans in the 4th quarter of 2005 were the highest ever recorded in the MBA's quarterly survey.

Quick Info on Prices and Rates

Calif. median home price - Dec. 05: $548,430 (Source: C.A.R.)
Calif. affordability index - Nov. 05: 14 percent (Source: C.A.R.)
Calif. highest median home price by C.A.R. region Dec. 05:
Santa Barbara So. Coast $1,300,000 (Source: C.A.R.)

Calif. lowest median home price by C.A.R. region Dec. 05:
High Desert $320,490 (Source: C.A.R.)

Mortgage rates - week ending 1/26:
30-yr. fixed: 6.12%; Fees/points: 0.5%
15-yr. fixed: 5.70%; Fees/points: 0.5%
1-yr. adjustable: 5.20%; Fees/points: 0.6%
(Source: Freddie Mac)

Buy Me Please!

This isn't 2003, but this chart is a good example of different market's selling times, and lately we've been in a lull where sellers might need to think about how much preparation might be necessary to compete for a buyer. In some markets, such as the last 2-3 years, sellers have been able to put minimum effort into curb appeal and get a fast offer. In any market, though, a buyer feels a lot more welcome when the seller puts some effort into their home's appearance and condition, and often when the buyer feels good, the transaction is even better. Think about how your house appears to someone else, and you'll probably come a lot closer to an easier negotiating process!

January 2006 Economic Outlook

The big question: Will home price appreciation continue? The answer at this article is yes, but slowing to around 7% as the 30-year fixed interest rate rises overall to about 6.4%. House price appreciation is seen as being driven by income, employment and population growth increases. The adjustable rate mortgage loan holders, though, may end up refinancing this year as those ARM rates do go up.

DQNews - Southern California Press Release

Buyers may be waiting for the price to drop, but local sales still indicate a 1-2% difference in selling vs. list price. The Southern California median home price was still $479,000, the same as November, but up 14% from December 2004. California Association of Realtors, meanwhile, still forecasts an overall increase in median price statewide for 2006, with a stronger increase in the inland areas. Still a good time with 30-year fixed mortgage rates hovering around 6% or less.

Rates in a Lull

Some buyers are taking advantage of this period, but many others are not. Mortgage interest rates fell for 5 consecutive weeks. While the difference may not seem like a lot, it is when multiplied out over time. If you're willing to pay even a .5 point, you can buy down your rate even more. Click on the link for more information.