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
Monday, September 26, 2011
Thursday, September 22, 2011
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
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
Thursday, September 8, 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!
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!
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