Category: Uncategorized

Stocks rise on positive news – This week The Commerce Department raised its estimate of the first quarter U.S. Gross Domestic Product to an 0.8% annual increase from the previously reported estimate of 0.5%. The National Association of Realtors reported that U.S. pending home sales reached the highest level in a decade. Consumer confidence rebounded, and oil rose to almost $50 a barrel. The Dow Jones Industrial Average closed the week at 17,873.22, up from 17,500.94 last week. The S&P 500 closed the week at 2,099.06, up from 2,052.32 last week. The NASDAQ closed Friday at 4,933.50, up from 4,769.56 last week. 

Bond yields unchanged – The 10 year U.S. Treasury bond closed Friday yielding 1.85%, unchanged from 1.85% last week. The 30 year U.S. Treasury bond closed Friday yielding 2.65%, also pretty much unchanged from 2.63% last week. Mortgage rates follow bond yields so we watch bonds carefully. 

Mortgage rates slightly higher than last week – The Freddie Mac Primary Mortgage Survey released on May 26, 2016 showed that average mortgage rates from lenders surveyed for the most popular mortgage products were as follows: The 30-year fixed rate average was 3.64% The 15-year fixed average rate was 2.89%. The 5/1 ARM average rate was 2.87%.

U.S. pending home sales at 10 year high – The National Association of Realtors announced that April pending home sales rose for the third consecutive month. April’s 5.1% rise in pending home sales from March brings the number of homes that went under contract to the highest level in a decade. The pending home sale index is a leading indicator of housing activity. It is based on signed real estate contracts for existing single family homes, condominiums, and co-ops. Because homes go under contract a month or two before they close the index is a leading indicator of what closed sales figures will look like in the future.

Consumer confidence rebounds in May – The University of Michigan reported that its index of consumer sentiment rose to 94.7 in May, up from 89 in April. It’s the highest reading in a year, signaling that consumers have grown more optimistic about the economy. It is thought that more confidence could bring greater economic growth, as consumers are more likely to spend. Consumer spending accounts for roughly 70% of U.S. economic activity. The economy slowed the first three months of the year as confidence dropped. Most analysts expect growth to rebound in the April to June quarter. 

Have a great weekend!

Syd

Stocks mixed this week – Stocks climbed Monday, only to be pulled back after The Federal Reserve released minutes from the April meeting suggesting a possible interest rate hike as early as their June meeting. The Dow Jones Industrial Average closed the week at 17,500.94, down from 17,535.32 last week. The S&P 500 closed the week at 2,052.32, up slightly from 2,046.41 last week. The NASDAQ closed Friday at 4,769.56, up from 4,717.68 last week.

Bond yields rise after Fed minutes suggest rate hike possible in June – The 10 year U.S. Treasury bond  closed Friday yielding 1.85%, up sharply from 1.71% last week. The 30 year U.S. Treasury bond closed Friday yielding 2.63%, also up from 2.55% last week. Mortgage rates follow bond yields so we watch bonds carefully. 

Mortgage rates inch up from 3-year low– The Freddie Mac Primary Mortgage Survey released on May 19, 2016 showed that average mortgage rates from lenders surveyed for the most popular mortgage products were as follows: The 30-year fixed rate average was 3.55% The 15-year fixed average rate was 2.81%. The 5/1 ARM average rate was 2.80%.

California state-wide median price breaks $500,000 – The California Association of Realtors reported that the median price of a home in California rose to $509,100 in April. That represents a 5.3% month over month increase from March. 

California home re-sales fewer due to tight inventory – The California Association of Realtors also reported that the number of homes sold in April dropped 2.6% from its annualized level in March. Year over year the number of sales declined 5.4% from April 2015. The Unsold Inventory Index dropped again to a 3.5 month supply in April. A normal market is a 6.1 month supply, so inventory levels are around 60% of normal, according to CAR. This tight inventory is pushing prices higher and sales lower as buyers are again finding it tough to find homes to buy.

Have a great weekend!

Below is the Westside Market Report for April 2016 detailing local real estate market statistics and including year-over-year data:

Westside

Below is the San Fernando Valley Market Report for April 2016 detailing local real estate market statistics and including year-over-year data:
San Fernando Valley

Below is the Conejo Valley Market Report for April 2016 detailing local real estate market statistics and including year-over-year data:

Conejo Valley

Stocks drop again this week – Stocks dropped again this week as a new round of first quarter corporate earnings reports showed consumers pulled back sharply on purchases. Retail sales were particularly weak, as companies revised their outlooks downward for the remainder of the year. Late Friday the Commerce Department released April retail sales figures which showed that sales rebounded. It will be interesting to see how this affects the opening of the market on Monday. The Dow Jones Industrial Average closed the week at 17,535.32, down from 17,740.63 last week. The S&P 500 closed the week at 2,046.61, down from 2,057.41 last week. The NASDAQ closed Friday at 4,717.68, down from 4,736.16 last week. 

Bond yields lower again this week – The 10 year U.S. Treasury bond closed Friday yielding 1.71%, down from 1.79% last week. The 30 year U.S. Treasury bond closed Friday yielding 2.55%, also lower than 2.62% last week. Mortgage rates follow bond yields so we watch bonds carefully. 

Mortgage rates drop to 3 year low – The Freddie Mac Primary Mortgage Survey released on May 12, 2016 showed that average mortgage rates from lenders surveyed for the most popular mortgage products were as follows: The 30-year fixed rate average was 3.57%. The 15-year fixed average rate was 2.81%. The 5/1 ARM average rate was 2.78%.

Retail sales surge in April – The Commerce Department reported that U.S. retail sales recorded their biggest increase in a year as consumers stepped up purchases of automobiles and other goods in April. This report suggested that the economy may be gaining momentum after a disappointing first quarter. Retail sales surged 1.3% in April. It’s largest gain since March 2015. Coming just days after Macy’s and Nordstrom’s reported poor first quarter sales, this report suggests that fear of consumer spending slowing sharply may have been over exaggerated. 

Homes more affordable in the first quarter – The California Association of Realtors reported that housing affordability in the state improved in the first quarter. Strong wage growth, lower interest rates and leveling home prices pushes housing affordability higher. According to C.A.R. 34% of California households could afford to purchase a $465,280 median priced home. The income required to purchase a median priced home was $92,571. This was up from the fourth quarter of 2015 when only 30% of households could afford to purchase a median priced home. Condos and town-homes were even more affordable with 41% of households able to afford a condo or town-home. The income needed to purchase the median priced condo or town-home was $77,575.

Have a great weekend!

Syd

 U.S. job growth slows – The Labor Department reported that employers added 160,000 net new jobs in April. This fell short of the 200,000 net new jobs analysts had expected. The unemployment rate held steady at 5%, an 8-year low. Retail sales lost 3,000 net jobs. This was especially surprising after retailers’ adding 39,000 net new jobs in March, and 157,000 in the first quarter of 2016. Construction added just 1,000 net new jobs after adding 41,000 last month. Those two sectors alone account for April’s decline. The report showed that wage growth is finally beginning to show signs of improvement. Average hourly wages ticked up 8 cents an hour, after increasing 6 cents an hour last month. Wages are up 2.5% for the past 12 months ending April 30, after remaining fairly stagnant since the recession. 

Stocks lower this week – Stocks dropped for a third week in a row as renewed concerns of persistent weakness overseas made investors cautious. This followed a disappointing first quarter GDP report last week and some earnings reports that were not as robust as expected. Stocks also dropped Thursday when ADP, the nation’s largest payroll company suggested that Friday’s jobs report would be disappointing. It was, yet stocks actually recovered slightly, because investors hoped that it would give pause to the Federal Reserve to leave interest rates unchanged in June rather than raise them for only the second time since 2006. The Dow Jones Industrial Average closed the week at 17,740.63, down from 17,763.64 last week. The S&P 500 closed the week at 2,057.41, down from 2,065.30 last week. The NASDAQ closed Friday at 4,736.16 down from 4,775.36 last week. 

Bond yields slightly lower again this week – The 10 year U.S. Treasury bond closed Friday yielding 1.79%, slightly down from 1.83% last week. The 30 year U.S. Treasury bond closed Friday yielding 2.62%, also slightly lower than 2.66% last week. Mortgage rates follow bond yields so we watch bonds carefully. 

Mortgage rates lower this week – The Freddie Mac Primary Mortgage Survey released on May 5, 2016 showed that average mortgage rates from lenders surveyed for the most popular mortgage products were as follows: The 30-year fixed rate average was 3.61%. The 15-year fixed average rate was 2.88%. The 5/1 ARM average rate was 2.80%.

Below is the Westside Market Report for March 2016 detailing local real estate market statistics and including year-over-year data:

Westside

Below is the SF Valley Market Report for March 2016 detailing local real estate market statistics and including year-over-year data:

SF Valley