Restore Housing Loan Limits

October 31, 2011

On September 30th, 2011, the temporary loan limits for FHA and GSE insured home loans expired, resulting in a reduction of consumer credit in 669 counties across 42 states. The expiration is making a weak housing market even weaker and also makes it harder for middle class homebuyers to get mortgages when credit is already tight.

Luckily, there is a solution in the form of a bipartisan amendment, referred to as the Menendez-Isakson Amendment, which would restore the recently expired temporary loan limits until December 31, 2013.

Fortunately, some leaders in Congress are taking steps to extend the temporary loan limits and pass this important amendment. The legislation now goes to a "Conference Committee" to iron out differences between the House & Senate versions. But they need your help to succeed as some members of the US House are opposed to a loan limit extension and thus will likely push to exclude the Menendez-Isakson Amendment from the Conference Report. The Conference Report could be finalized as early as next week so time is very critical.

We need to apply pressure on rank & file House Republicans to reach out to House Leadership to encourage them to preserve the Menendez-Isakson language.

Please contact your elected representative in Congress today and ask them to support Appropriations Bill HR 2112. This legislation enjoys bi-partisan support in the House and is our only chance to restore the temporary loan limits that are so important to stabilizing the housing market.

Please click here to send your message to Congress today!

Sincerely,

Ken Gear
Executive Director
Leading Builders of America

Union Ranch Park ready to break ground

The most controversial neighborhood park project in Manteca’s history is about to break ground.

The City Council on Tuesday is expected to approve the final documents to allow work to start on improvements for the 7.37-acre Union Ranch East Park along with 3.3 acres of linear park improvements. It includes a bike path that will eventually connect to the Tidewater Bikeway.

Residents of the neighborhood immediately east of Del Webb at Woodbridge in North Manteca balked at being assed landscape maintenance district fees for a park that didn’t yet exist. They also argued the city had no authority to assess the tax.

City officials cited state law that gave them the power to do so. Most of the controversy occurred because the park wasn’t constructed when the development broke ground as has been the norm almost everywhere else in Manteca. Also, buyers said the developers didn’t make the actual cost per year clear in their disclosure documents.

The $1.2 million park project is being paid for with fees collected from homes in the 400-plus lot neighborhood.

Park improvements include two playground areas - one for preschoolers and another for those 5 to 12 years of age. The playgrounds will flank a picnic area with a 35-foot octagon canopy. There will be tables under the shade structure as well as outside of it. Several barbecues will be put in place along with a basketball court, drinking fountains, decorative security lighting, benches, and trash receptacles.

The park is expected to be ready for use by spring.

By Dennis Wyatt
Managing Editor
dwyatt@mantecabulletin.com
209-249-3519

Manteca shows bright spots in jobs, housing

New home starts dropped in August across the country.

Not in Manteca. They more than doubled over the previous month.

Unemployment was unchanged nationally in August.

Not in Manteca. Nine hundred people found work for the biggest drop in the jobless rate in three years.

At the same time Manteca for the fourth consecutive year could end up building more new housing units than all other jurisdiction in San Joaquin County combined. Toss in the fact the sales pace of existing homes - primarily foreclosures - still is steady as it is in much of the rest of the county and Manteca appears to be bucking a few negative national trends. Yes, sale prices of existing homes aren’t increasing and the new home building pace is about 40 percent of what many Manteca’s came to expect as normal.

And the somewhat of a disconnect with national economic trends isn’t all positive.

Despite a 1.2 percent improvement in August employment, Manteca’s 14.1 jobless rate is significantly higher than the national 9.1 percent rate and above California’s 12.1 percent rate. It is, though, below the 16.1 percent unemployment rate for San Joaquin County as a whole. That higher number is driven by the fact Stockton has close to one out of every five employable adult looking for work.

“There is big disconnect between Washington and much of the country,” Manteca Mayor Willie Weatherford said. “We’d be thrilled in San Joaquin County to have an unemployment rate of 9 percent.”

Even in good times, the county’s jobless rate never dropped far below 9 percent.

Weatherford believes some “micro” economic decisions made by the city over the past few years has put Manteca in a somewhat better position than neighboring jurisdictions.

The other big factor that Weatherford attributes to Manteca faring somewhat better in some types of economic development than its neighbors is location.

“It’s just like in baseball, location is important where you hit the ball,” Weatherford said.

Manteca in August issued 61 permits for new single family homes including three custom homes. That represents the biggest month in at least four years. Through the end of August, 206 new single family homes have been started along with the 152-unit apartment complex on Atherton Drive in South Manteca. Manteca already is enjoying its biggest year for overall new housing starts in four years.

New home sales are still being driven by Del Webb at Woodbridge that accounts for roughly 30 percent of all transactions.

The city has been averaging 300 new homes for the past three years. That has added roughly 1,000 new consumers a year. It is a critical infusion given retail and services are struggling as many existing residents reduce consumer spending. In essence, economists contend growth in such cases actually keeps local economies from being worse off than they already are.

The City Council helped spur new home construction by opting to collect almost all growth-related fees right before a home is actually funded or sold instead of upfront when the home permits are issued. It hasn’t impacted the city’s bottom line but it has allowed builders to create more liquidity which is critical when construction can take as long as six months.

Existing home sales are expected to reach 1,100 closed deals by year’s end for the third straight year. At the same time, several banks have restarted their foreclosure process after getting paperwork in order. Bank of America alone is reported to have increased its foreclosures in Manteca and elsewhere in the Northern San Joaquin Valley by almost 80 percent in August compared to July.

By Dennis Wyatt
Managing Editor
dwyatt@mantecabulletin.com
209-249-3519

California Home Sales Surge in August, Median Price Highest of the Year, Reports C.A.R.

LOS ANGELES, Sep 15, 2011 (BUSINESS WIRE) -- California home sales posted an increase from both the previous month and previous year in August, while the median home price rose to its highest level this year, according to data from the CALIFORNIA ASSOCIATION OF REALTORS(R) (C.A.R.).

Closed escrow sales of existing, single-family detached homes in California rose to a seasonally adjusted 497,390 units in August, up 8.6 percent from a revised 457,930 in July, according to information collected by C.A.R. from more than 90 local REALTOR(R) associations and MLSs statewide. August home sales were up 10.2 percent from the revised 451,520 units sold during the like period a year ago. The statewide sales figure represents what would be the total number of homes sold during 2011 if sales maintained the August pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

"August's median price marked the highest since December 2010, signifying that prices may be stabilizing in some market segments, as investors and first-time buyers continue to see value and opportunity in the market," said C.A.R. President Beth L. Peerce.

The August statewide median price of an existing, single-family detached home sold in California was $297,060, up 1 percent from a revised $294,050 in July, but down 7.4 percent from the $320,860 median price recorded for August 2010.

"While the increase in August sales is encouraging, these sales are based on closings that occurred before the debt ceiling debate in early August and subsequent heightened concern about the future direction of the economy," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "How these events and the impending reduction in the conforming loan limits will impact home sales and prices in the coming months remains to be seen."

Other aspects of C.A.R.'s resale housing report for August 2011 include:

-- The Unsold Inventory Index for existing, single-family detached homes was 5 months in August, down from 5.5 months in July and down from a revised 5.8 months in August 2010. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

-- Thirty-year fixed-mortgage interest rates averaged 4.27 percent during August 2011, down from 4.43 percent in August 2010, according to Freddie Mac. Adjustable-mortgage interest rates averaged 2.93 percent in July 2011, compared with 3.53 percent in August 2010.

-- The median number of days it took to sell a single-family home was 52.7 days in August 2011, compared with 45.5 days for the same period a year ago.

-- View Unsold Inventory by price point

Note: The County MLS median price and sales data in the tables are generated from a survey of more than 90 associations of REALTORS(R) throughout the state, and represent statistics of existing single-family detached homes only. County sales data are not adjusted to account for seasonal factors that can influence home sales. Movements in sales prices should not be interpreted as changes in the cost of a standard home. Median prices can be influenced by changes in cost, as well as changes in the characteristics and the size of homes sold. Due to the low sales volume in some areas, median price changes in June may exhibit unusual fluctuation.

Leading the way...(R) in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS(R) ( www.car.org ) is one of the largest state trade organizations in the United States, with more than 160,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.


SOURCE: CALIFORNIA ASSOCIATION OF REALTORS

CALIFORNIA ASSOCIATION OF REALTORS
Lotus Lou, 213-739-8304
lotusl@car.org

Copyright Business Wire 2011

Temporary loan limits set to expire on October 1: Take Action Now!

September 07, 2011

In 2008, when the economy and the housing market were in freefall Congress temporarily raised the limits for FHA and GSE loans. This common sense response to a severe credit crisis has been critical to ensuring access to mortgage loans.

Unfortunately, unless Congress acts before October 1, the temporary loan limits will expire. If that occurs, conforming and FHA loan limits will be slashed by over 50% in some markets dealing a devastating blow to a housing market struggling to recover. And the impact won't be limited to only "high cost" markets. Limits will be reduced in 608 counties which contain 59% of all U.S. households.

Fortunately, some leaders in Congress are taking steps to extend the temporary loan limits. But they need your help to succeed.

Please contact your elected representative in Congress today and ask them to co-sponsor HR 1754 the "Preserving Equal Access to Mortgage Finance Programs Act." This legislation enjoys bi-partisan support in the House and is our only chance to preserve the existing loan limits that are so important to stabilizing the housing market.
Please click here to send your message to Congress today!

Manteca Housing Sales Hold Steady

Manteca’s housing market continues to perform better than California as a whole when it comes to the number of existing homes being purchased.

The median selling price movement, though, is close to mirroring that of the rest of the state. California prices were off 6 percent in July compared to July of 2010. The decline in Manteca was 5.8 percent. But unlike the state as a whole, Manteca’s home prices jumped from 2009 to 2010 going from a median of $178,000 to $185,000 while the California median closing price declined.

The number of existing homes closing escrow has remained steady for the past four years. There were 1,165 homes sold in 2008, 1,211 homes in 2009, and 1,181 homes in 2011. As of Monday, 718 homes have been sold this year. That reflects 3.2 homes closing escrow every day. At that rate, Manteca will hit 1,169 sold homes by year’s end.

The pending deals offer encouraging numbers in terms of the median price not slipping. There are 206 homes currently in contract with a median pending price of $186,450.

There are 200 active listings with a median asking price of $194,750. The inventory has been dropping after climbing back up to 268 in February. Prior to the start of this year, the number of available homes had been steadily declining since September 2007 when a record 651 homes were waiting for buyers.

Realtors have indicated it is not clear if the decline is the result of inventory actually dropping or the foreclosure process taking longer to put homes back on the market. In either case, the market absorption of existing homes has remained virtually unchanged since March of 2008.

By Dennis Wyatt
Managing Editor
dwyatt@mantecabulletin.com
209-249-3519

Manteca’s Plan for 143 acres of Family Entertainment!

In the not-too-distant future you may be able to dine at a restaurant along the shores of a man-made lake just across the street from the proposed Great Wolf Resort.

A promenade around the lake would allow you to take in the sights of people using paddle boats and kayaks. It could also take you to a smorgasbord of other possible entertainment opportunities ranging from an outdoor venue for concerts to attractions such as a paintball course, zip lines, rock climbing, go-karts, miniature golf, skate park, destination playground, microbrewery, specialty shops, and even a revival of the original Manteca Waterslides.

It is all part of a conceptual plan now being hammered out to turn 143 acres of corn grown for silage that’s irrigated with treated wastewater into a family entertainment zone designed to tap into the pocketbooks of a million consumers within a 30-mile radius of Manteca.

Consultants hired by the Manteca Redevelopment Agency to develop a plan aimed at creating a community gathering place on city-owned water treatment plant land immediately west and north of Big League Dreams conducted a workshop on Tuesday.

The final draft of the plan is is expected to go before the City Council at the Sept. 20 meeting.

It is part of a broad-based economic and cultural development plan aimed at generating jobs, providing family entertainment in Manteca, and luring people from throughout the region to spend time and money.

Consultant Dan Martin of Market Feasibility Advisors noted there are two primary markets that Manteca needs to target:

• a million people within a 30-mile radius of the site northwest of the 120 Bypass and Airport Way interchange.

•the 400,000 plus people who attend BLD games and tournaments as well as those who spend weekends at Woodward Park at regional and north state soccer tournaments taking place on eight different fields.

At the same time Martin noted it would give Manteca a fighting chance to snag some of the pass-thru traffic heading from the Bay Area to the Sierra as well as some of the 1.2 million plus annually visitors to the Manteca Bass Pro Shops.

The goal is to provide a plan that has a strong mix of entertainment options across the age spectrum. To that end, the consultants devised a list of possible attractions that also included a destination playground, possible interactive water play features, as well as a venue for organized team sports competition such as basketball, volleyball, and gymnastics. Residents attending the workshop suggested the consultant may want to consider such things as an aquatics center with a competition swimming pool as well as wine tasting.

The large manmade lake is at the heart of the plan. Martin noted it would easily be filled thanks to the high water table in the area.

Lodi has a similar gathering place for community entertainment in the form of Lodi Lake that was created just off the Mokelumne River. The proposed Manteca lake would go a step further and incorporate entertainment venues with the appeal of lake based activities. Lodi Lake offers paddle boats, canoes, and even a manmade beach with a separated swimming area.

By Dennis Wyatt
Managing Editor
dwyatt@mantecabulletin.com
209-249-3519

City staff noted that any work that involves turning earth would be at least two years away.

Close Out Specials!

Atherton Homes would like to announce that Unit 2 of the Union Ranch community, featuring the Summit Collection is nearing completion, only 4 lots remain. If you’ve considered purchasing a new home at Union Ranch, there’s no better time than now!

This will be your final opportunity to take advantage of Unit 2 pricing, as new legislation was recently passed by the State of California that will require additional safety materials to be installed in all new homes. This new mandate has made it necessary to increase pricing for homes in Union Ranch – Unit 3.

Stop by the Sales Office today and ask a Sales Representative about the generous incentives available for all remaining lots in Unit 2.

Act now to take advantage of the additional savings.
Upgrade to an Atherton Home today!

261% jump in new homes

February hot month for Manteca housing starts

New home buying activity made February the strongest month for single family housing starts in Manteca in nearly four years.

Builders were issued 47 permits for single family homes last month. That compares to 13 in February of 2010.

At the same time the value of the construction is up almost 10 percent per home reflecting buyers that are able to afford more square footage and upgrades.

The average value of the actual construction of homes issued permits last month was $157,469. That compares to $144,778 a year ago. That figure does not reflect the cost of the lot, various growth and connection fees or the cost of the infrastructure to serve the house that the developer installed or grading improvements.

Manteca has now started 69 homes in the first two months of 2011

If the current pace continues Manteca could end up building just over 400 new homes by the time the year ends.

Manteca for the last two years has built more than 300 new homes annually making it the Northern San Joaquin Valley new housing leader. February marked the 27th straight month Manteca topped all of San Joaquin County jurisdictions for new housing starts.

Three different developers are preparing to work ground to create additional lots to meet the increasing demand in Manteca.

Manteca is among those jurisdictions bucking the national trend for anemic housing starts in the first two months of this year.

By Dennis Wyatt
Managing Editor
dwyatt@mantecabulletin.com
209-249-3532

Manteca 3-peats as housing leader

19 times as many homes built in Manteca than Tracy

Manteca continued to dominate the Northern San Joaquin Valley new housing market with 345 homes built in 2010.

It marked the third year that Manteca housing starts and new home sales led San Joaquin, Stanislaus and Merced counties based on information obtained from the building departments of various cities in the Northern San Joaquin Valley. It was the second year the number of starts topped 300 housing units.

The next closest city in San Joaquin County for 2010 with 138 housing starts was Lathrop. Stockton was next at 108 homes started and then Tracy with 18 starts.

Modesto in 2010 had 37 housing starts.

In 2009 Manteca had 304 housing starts followed by Stockton with 120, Modesto with eight, and Tracy with six.

There are signs that Manteca will continue to lead the Northern San Joaquin Valley for a fourth year in 2011 when it comes to housing starts and sales.

Three developers - Pulte Homes, Florsheim Homes, and Atherton Homes - have all indicated they plan to break ground on new lots this spring.

More well-heeled buyers are also in the market as Atherton Homes since the start of December has sold six homes larger than 4,000 square feet. They sold just four such homes in the previous 2 ½ years.

By Dennis Wyatt
Managing Editor
dwyatt@mantecabulletin.com
209-249-3532

Strong December for Housing

Manteca ends 2010 with 355 new housing starts

Manteca builders ended 2010 by accelerating housing starts for the third best December on record.

Builders started 60 new homes in December - including seven custom homes. That followed on the heels of the best November for housing starts in seven years with 41 homes breaking ground. The strong finish for the year ratcheted up the city’s housing starts for 2010 to 355 to allow Manteca to lead the Northern San Joaquin Valley for the third consecutive year.

It reflected an increase of 51 new home starts over the 2009 level of 304.

The 355 homes represent 889,336 square feet or living space the equivalent of 11 Manteca Walmart stores. That represents an average of 2,505 square feet per home.

The size of the home reflects a growing confidence in the new housing market.

At the bottom of the new housing market in February 2008 when 10 permits were issued, the average size fell to 1,577 square feet.

There are clear signs in the past two months that the appetite - and ability to pay - for 4,000 square-foot new homes is on the rise.

Since the start of December Atherton Homes has sold six of The Pinnacle models in the Summit Collection at Union Ranch. The Pinnacle goes up to 4,041 square feet of living space. Atherton Homes is the only builder in Manteca currently building homes larger than 4,000 square feet. Prior to that it took Atherton Homes 2 ½ years to sell four homes larger than 4,000 square feet.

By Dennis Wyatt
Managing Editor
dwyatt@mantecabulletin.com
209-249-3532

Classy looks spur steady sales

Union Ranch is a unique neighborhood for many reasons.

•It has a loop street pattern serving eventually more than 400 homes. That means no through streets teeming with traffic.

•It will back up to the future northerly extension of the Tidewater Bike Way.

•Homes are 100 percent owner occupied and there are no distressed properties.

•It is one of the first developments doing well enough to get ready to break ground on installing infrastructure for a new phase this spring.

Union Ranch is located north of Lathrop Road directly east of the age-restricted Del Webb at Woodbridge community.

The location as well as the Summit Collection floor plans are so popular that nine of the next 61 lots yet to have improvements to make them buildable already have holds on them.

There are just 10 lots left in the current unit.

Atherton Homes is offering incentives to sell the existing lots as quickly as possible. Director of Sales Kathy Hammons added that not only will buyers who purchase now get those incentives but they can also beat new state mandates for new residnetial construction that include installing fire sprinklers that are expected to add to the cost of a new home in California when they go into effect.

The community also includes a park where improvements are underway and an area set aside for a possible future elementary school campus.

Homes start at $297,990 for a 1,877-square-foot home and go up to 4.041 square feet with a base price on the larger model of $399,990.

That largest floor plan - The Pinnacle - is typical of the Summit Collection design that incorporates classy lines, well-planned living areas, and unique features that prevents it from being lumped with other large homes as a McMansion.

It starts with a casita that accesses the same court yard as the front door and has a door leading to the main house. It is designed as living quarters for grandparents complete with bedroom, large walk-in closet a living room that comes with a sink and refrigerator. You can have it built as a living room and office if you’d like. The two-story, four bedroom, and 4.5 bathroom home has a spacious master suite that is just the right-size, a Jack-n-Jill bedroom and bathroom set-up and an upstairs laundry that rivals most secondary bedrooms in size compete with cabinets and built-in ironing board.

There is a wine room that can replace a dining nook and cabinets. An extended hearth comes standard on the family room fireplace. Coved ceilings and other classic touches blend the family room and kitchen areas together.

The third car stall for the tandem garage can be converted into a bonus room.

The Summit Collection sales office is located on Edgebrook Lane accessed by turning right off Union Road at the traffic signal at the entrance of Del Webb at Woodbridge north of Lathrop Road.

The models are open daily from 11 a.m. to 5 p.m. For more information go to www.atherton-homes.com or call 824-2071.

By Dennis Wyatt
Managing Editor
dwyatt@mantecabulletin.com
209-249-3532

It took Atherton Homes 2 ½ years to sell four homes larger than 4,000 square feet.

But since the start of December the Manteca builder has sold six of The Pinnacle models in the Summit Collection at Union Ranch. The Pinnacle goes up to 4,041 square feet of living space. Atherton Homes is the only builder in Manteca currently building homes larger than 4,000 square feet.

“Interest has picked up considerably in the larger models,” said Atherton Homes Director of Sales Kathy Hammons.

She noted that the Union Ranch neighborhood is a post-market collapse development. That means there are no foreclosures and no investors and that means no renters.

The demands for new home sales is prompting Atherton Homes to break ground this spring on streets, sewer and water lines, and other infrastructure for the next Union Ranch unit of 61 lots. Nine of the 61 lots already have holds on them.

Both are encouraging signs for the housing market. Manteca went nearly four years without any builder investing in infrastructure to create new lots until Del Webb at Woodbridge did so last summer for additional homes for the age-restricted community.

Atherton Homes is the second Manteca builder to announce they will be moving earth this spring. Florsheim Homes plans to create 44 more buildable lots this spring in the Valley Blossom neighborhood southwest of Airport Way and the 120 Bypass.

Three years ago Manteca has an inventory of 940 buildable lots with the entire infrastructure already in place from underground power lines, streets, sewer and water lines, sidewalks, and other utilities to storm drains. That inventory is ready to drop below the 500 mark.

The Pinnacle at 4,041 square feet and starting at $399,990 is the largest home now being built in Manteca while Valley Blossom offers the smallest home being built in Manteca with 1,286 square feet starting at $169,900. The lowest-priced Atherton Homes model has 1,877 square feet starting at $297,990.

The large Summit Collection home is arguably an anti-McMansion with its floor plan with a “casita” designed as separate living quarters off the entry courtyard for grandparents. Virtually every Pinnacle sold has the casita option that replaces the office/living room that is part of the standard design. The rest of the four bedroom, 4.5 bathroom home has a design that is in a decidedly classic look with a floor plan designed to accommodate families with style.

The homes are about 200 square feet smaller than the large rectangular houses built in the Heritage Ranch neighborhood south and east of Joshua Cowell School in East Manteca by Seeno homes. The 4,336-square-foot homes peaked at $750,000 before the housing market nose dived. At the absolute bottom of the upper end market in Manteca, a seven bedroom and four bathroom version of that home in the 600 block of Vasconcellos Avenue closed escrow for $285,000 in the spring of 2009.

Hammons also noted they are now seeing a 50-50 split between Bay Area buyers and those who are from this side of the Altamont Pass. During the housing frenzy close to 90 percent of all new home buyers were from the Bay Area. That flipped during the depths of the housing retreat with valley buyers being dominate.

The Summit Collection sales office is located on Edgebrook Lane accessed by turning right off Union Road at the traffic signal at the entrance of Del Webb at Woodbridge north of Lathrop Road.

By Dennis Wyatt
Managing Editor
dwyatt@mantecabulletin.com
209-249-3532