Thread: Spring buying boosts home prices, market still sluggish

Spring buying boosts home prices, market still sluggish

By Derek Kravitz, Associated Press
Updated 4h 20m ago

WASHINGTON – Home prices rose for a fourth straight month in most major U.S. cities in July, buoyed by the peak buying season. But the housing market remains depressed, and prices are expected to decline in the coming months.

The Standard & Poor's/Case-Shiller index released Tuesday showed home prices increased in July from June in 17 of the 20 cities tracked.

Prices rose sharply in Minneapolis and Chicago. Prices in two cities hit hardest by the housing crisis —Las Vegas and Phoenix — declined.

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The index, which covers half of all U.S. homes, measures prices compared with those in January 2000 and creates a three-month moving average. The July data are the latest available.

Analysts cautioned that the price increases are temporary, and not evidence of a housing recovery. Home sales have declined in each of the months in which prices rose.

Prices are expected to drop again this fall and winter, based on the poor sales and expectations that banks will resume processing a raft of foreclosures that have been in limbo.

"This is still a seasonal period of stronger demand for houses, so monthly price increases are expected," said David M. Blitzer, chairman of Standard & Poor's index committee. "While we have now seen four consecutive months of generally increasing prices, we do know that we are still far from a sustained recovery."

Over the past 12 months, prices have fallen in all but two cities: Detroit and Washington.

In Detroit, prices have risen 1.2% during that stretch. Still, the city has been among the nation's worst housing markets over the past decade. In July, homes prices there were equal to 1995 levels.

"In some cities, prices are so undervalued they are not likely to fall further," said Patrick Newport, U.S. economist at IHS Global Insight. "Detroit, which largely avoided a run-up in prices but still saw prices collapse, may be a case in point."

Washington, conversely, has had America's best housing market. Home prices in the nation's capital have increased 0.3% in those 12 months, and were equal to 2004 levels in July.

Housing is a key reason the economy has struggled more than two years after the recession officially ended.

High unemployment, larger required down payments and tighter credit are preventing many buyers from entering the market. Many who could afford to buy are waiting because they are worried the U.S. could fall back into another recession and prices could fall further.

Sales of previously occupied homes are only slightly ahead of last year, which was the weakest since 1997.

New-home sales dropped in August for a fourth straight month. This year is shaping up to be the worst for sales of new homes on records dating back to 1963.

And home prices are certain to fall further once banks resume millions of foreclosures, which have been delayed because of a 10-month government investigation into mortgage lending practices.

"This effect (of spring buying) will fade soon because sales have dropped back in recent months," said Ian Shepherdson, chief U.S. economist for High Frequency Economics. "We expect to see price declines again by the autumn, but we do not anticipate a renewed collapse" in the housing market.

http://www.usatoday.com/money/economy/h ... 50565604/1

San Diego home prices up fourth month in a row

San Diego home prices have inched up for four straight months but are still below year-ago levels, a trend also reflected nationally, said officials at a leading housing monitor on Tuesday.

The composite for the 20 major metro cities tracked by the S&P/Case-Shiller Home Price Index was 142.77 in July, up 0.9 percent from June but down 4.1 percent from a year ago.

The San Diego region recorded a 0.1 percent bump month-to-month and a 5.9 percent drop from the same time last year.

What does that all mean?

David M. Blitzer, chairman of the S&P's index committee, said the June-to-July gains see in 17 of 20 areas, including San Diego, reflect "a seasonal period demand for houses."

Still, Blitzer added, “...we do know that we are still far from a sustained recovery."

The three areas that did not see month-to-month improvement were the heavily distressed areas of Las Vegas and Phoenix, where values decreased, and Denver, which saw no change.

On a year-over-year basis, Washington D.C. and Detroit were the sole areas that showed a positive change, increasing 0.3 percent and 1.2 percent respectively.

http://www.signonsandiego.com/news/2011 ... onal-pace/

168 more new homes coming to Irvine

September 25th, 2011, 10:36 pm
posted by Jon Lansner

The Irvine Co. plans to sell a fresh batch of new homes in north Irvine — 168 in the Village of Stonegate’s Santa Maria community — starting Oct. 15.

The community will be be the fifth neighborhood constructed by the developer’s own builder, Irvine Pacific. Since early 2009, Irvine Co. — working with both with other builders as well as Irvine Pacific — has more than 1,500 homes in north Irvine.

Santa Maria will feature (click on images above for larger view!):
Townhomes and flats, rangin in size from 1,386 to 1,614 square feet.
Two to three bedrooms, two to three baths
Certain homes have first-floor bedroom, courtyards, atriums or decks for outdoor entertaining.
Priced from the mid $400,000s.

Tom Veal of Irvine Pacific: “Attainable home prices, historically low interest rates and innovative floorplans that emphasize casual living and outdoor entertaining all combine to make Santa Maria very attractive to young professionals.â€

Ritz Cove home sale is year’s 4th highest for area

posted by KELLI HART KEHLER, THE ORANGE COUNTY REGISTER

A home in Monarch Beach’s Ritz Cove community sold last week for $4.599 million, according to the Southern California MLS.

CLICK THROUGH photos above for larger images.

That makes it the fourth-priciest MLS-recorded home sale in the Dana Point area for the last year, 3 sales behind the reportedly record-breaking $14.15 million sale of an oceanfront home in the Strand at Headlands in April.

The $6.35 million sale of another home in the Strand community in July comes in at second place.

A Niguel Shores home sold for $5.05 million in February, taking third place.

The Mediterranean style residence in Ritz Cove was first listed for $5.999 million in June 2010. It has 4 bedrooms, 5 bathrooms, 6,850 square feet of living space on a .38-acre (16,373-square-foot) lot, two levels and ocean views. It sold for $671 per square foot.

Per the listing description:

“Another 200K PRICE REDUCTION!! AND WE’VE HAD A MAJOR FACELIFT!!!!Don’t miss this fabulous ocean view Ritz Cove home. There are ocean views from almost every room. New exterior paint. New carpet. Beautiful sweeping staircase with new carpet and refinished dark wood stairs. New dark wood floors in formal living and dining rooms, family room and master bedroom. New travertine floors in kitchen nook, kitchen and baths. Gourmet kitchen with center island, refinished cabinets, new appliances, fixtures and granite counters. Huge pantry, elevator. 4 Bedrooms, 5 baths, 4 car garage. Huge game room with bar and doors opening to ocean view yard with spa and new BBQ Bar. Close to private entrance to Salt Creek Beach.â€