Median price of a home in California at $568,890 in August, up 20.1 percent from year ago; sales increase 7 percent
From the California Association of Realtors this week comes some data that shows a statewide increase in the median price of a home of over 20% since a year ago. The rise for the San Francisco Bay Area was over 13%.
CAR President Jim Hamilton is quoted, “While fixed mortgage interest rates have not increased, adjustable rates have risen in reaction to the Federal Reserve and a more general increase in short-term rates,” he said. “Since more buyers are relying on adjustable-rate mortgages to finance the purchase of their homes, buyers may be moving more quickly to make the home purchase decision in anticipation of future rate increases. This is adding more pressure to the price of a home.”
Available Affordable Housing Units
At the request of one of my readers… There is a page on the SFGov.org site under the Mayor’s Office of Housing where they list all currently available units that fit into the ‘affordable’ program. This is where the Beacon units were advertised as well as the meeting referred to in my post earlier today.
Remember, they are affordable to get into, but you must resell them at a zero-profit. This is, of course, better than renting in that you still get a tax deduction for your mortgage payments, but you must sell for what you paid plus any documentable costs (in nearly all cases). Not that all things real estate must result in profit, but that is many people’s motivation for purchasing in San Francisco.
Consumer confidence takes big dive
From the USA Today, “Consumer confidence took the biggest tumble in 15 years in September, as Americans grappled with soaring energy prices after Hurricane Katrina, the New York-based Conference Board said Tuesday.”
“Economists said that while the September consumer confidence figures were not good news, they did not necessarily mean a dramatic slowdown in consumer spending, about two-thirds of the economy. The outlook depends on the pace of job growth and how far gasoline prices decline from recent highs of more than $3 a gallon.”
“Accept this for what it is: an emotional reaction to tragic circumstances. But are people going to stop spending? No,” says Ken Mayland of ClearView Economics.
“The decline in new-home sales followed Monday’s report that existing-home sales in August were the second-highest on record. Even with the drop in new-home sales, they were 6.2% above year-ago levels. Further, builders must replace hundreds of thousands of homes damaged or destroyed by Katrina. That will boost the industry, as well as related sectors such as furniture makers.”
“Sam Bullard of Wachovia said that, given strong fundamentals, he does not expect to see any major slowing until mortgage rates rise toward 7%.”
Thanks again to Brett for the tip on this article.
The well-off are better off, but the ranks of the poor are growing, and middle- and low-income workers feel pressure of high prices
From today’s SF Gate, “The gap between high-income and low-income Americans is widening, the ranks of the poor in California and nationwide are swelling, and middle-class workers have lost ground compared with the 1970s, several national and state studies show.”
“And on Labor Day, the Budget Project reported that California’s highest-paid workers — those in the top 10 percent — earned 5.1 times more than workers making wages in the lowest 10 percent, up from 3.8 times more in 1979.”
Condo-conversion ordinance to be heard
From the Examiner, “The Board of Supervisors Land Use Committee today (Wednesday) is scheduled to take up a proposal by Supervisor Bevan Dufty to factor seniority into The City’s lottery for converting jointly owned tenancies in common to sought-after, individually owned condominiums. Under current rules, people who’ve tried unsuccessfully for several years become less likely to win one of the 200 slots awarded annually.”
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