Category: Uncategorized

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

San Fernando Valley

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

Westside

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

Conejo Valley

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

San Fernando Valley

Stocks sold off on Friday to end the week down sharply – U.S. stocks fell sharply as investors were unnerved by comments from Federal Reserve officials that pointed towards an interest rate hike. Positive comments about the economy from Fed Bank of Boston President, Eric Rosengren, who said,”a case could be made for the central bank to raise its key interest rate sooner rather than later,” seemed to support experts opinions that the era of historical ultra low interest rates may be ending, as the economy has made up the job and economic loss from the recession. Oil prices were down more than 2% Friday, which did not help. In corporate news, Wells Fargo must pay a $185 million penalty over illegal practices by bank employees who opened millions of unauthorized bank accounts in order to meet aggressive sales goals. 5,300 employees were fired in connection with the widespread banking scam. For stocks, Friday was the worst day since February. The Dow Jones Industrial Average fell 406 points, or 2.2% for the week. The Dow Jones Industrial Average closed the week at 18,085.46, down from 18,491.96 last Friday. The S&P 500 closed the week at 2,127.81, down from 2,179.98 last week. The NASDAQ closed the week at 5,125.91, down from last week’s close of 5,249.90.

Bond yields up on Fed rate hike speculation – The 10 year U.S. Treasury Bond yield closed the week at 1.67%, up from 1.60% last Friday. The 30-year U.S. Treasury Bond closed at 2.39%, up from 2.29% last week. Mortgage rates follow bond yields so we watch bond yields closely.

Mortgage rates unchanged at time of survey, but were higher Friday – The Freddie Mac Primary Mortgage Survey released on September 8, 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 3.44%. The 15-year fixed average rate was 2.76%. The 5/1 ARM average rate was 2.81%. 

Have a great weekend!
Syd

U.S. Employers add 151,000 new employees in August – The Bureau of Labor Statistics reported that employers added 151,000 new non-farm jobs in August, which was below the 180,000 new jobs analysts expected. The unemployment rate held steady at 4.9%. Wage growth grew on an annual rate of just 2.4% which was also disappointing after showing larger increases in the previous few months. This report, which was released on September 2, actually caused stocks to rally, because it came at a crucial time when experts had expected an interest rate hike at the Fed’s September 20-21 meeting. Experts now believe the Fed may wait to make sure the job market is not slowing before they make a rate increase. The Federal Funds Rate and Discount Rate which are overnight rates are just around 1/2%. The Fed began dropping rates during the recession to stimulate the economy. In 2009 they had dropped rates so many times that their overnight rate was 0%. The lowest in history. Last year they raised them 1/2% and announced that there would be several more rate increases this year. As the economy showed signs of weakness they have held off. This month they announced that a rate increase was coming as they were moving from a stimulus stance to a more neutral stance. This jobs report may cause them to hold steady a little longer. 

Stock markets stable in August. Markets were mostly unchanged in August. The Dow Jones Industrial Average closed the month on August 31 at 18,400.88 down slightly from 18,432.24 at the end of July. The S&P 500 closed the month at 2,170.95 just below July’s close of 2,173.60. The NASDAQ closed on August 31 at 5,213.22, up from July’s close of 5,162.13. 

Stocks finish week higher – Stocks rallied Friday following a jobs report which was below expectations. Investors feel that a softening of new jobs created could cause the Federal Reserve to hold off on an expected upcoming interest rate rise. The Dow Jones Industrial Average closed the week at 18,491.96, up from 18,395.40 last Friday. The S&P 500 closed the week at 2,179.98, up from 2,169.04 last week. The NASDAQ closed the week at 5,249.90, up from last week’s close of 5,218.92. 

Bond yields rise in August – Statements released from the Federal Reserve Open Market Committee meeting, and statements from Fed officials were designed to let investors and analysts know that interest rate hikes were likely soon. While The Fed left itself a little wiggle room they made it clear that historically low rates designed to stimulate the economy would soon rise to more “market neutral” rates. The 10 year U.S. Treasury Bond close on August 31 at 1.58%, up from 1.46% at the end of July. The 30 Year U.S. Treasure Bond yield close at 2.23% on August 31, up from 2.18% at the end of July. 

Bond yields unchanged from last week – The 10 year U.S. Treasury Bond yield closed the week at 1.60%, almost unchanged from 1.62% last Friday. The 30-year U.S. Treasury Bond closed at 2.28%, unchanged from 2.29% last week. Mortgage rates follow bond yields so we watch bond yields closely.

Mortgage rates unchanged – still near record lows – The Freddie Mac Primary Mortgage Survey released on September 1, 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 3.46%. The 15-year fixed average rate was 2.77%. The 5/1 ARM average rate was 2.83%.

Retail sales unchanged – The Commerce Department reported that retail sales in July showed no increase over June’s figure which increased 0.8% from May. Still retail sales rose 2.3% from a year ago, but economists had expected sales to rise 0.4% in July. After two months of very strong job growth experts were not expecting spending to weaken. 

Producer Price Index takes unexpected drop – The Labor Department reported that the producer price index, a key measure of inflation dropped 0.4% last month. Year over year the index shows that producer prices have slipped 0.2% since last July. Fed officials have repeatedly expressed concern about low inflation, as a strong dollar and low oil prices have muted prices.

California employers add 36,400 new jobs in July – The Employment Development Department reported that California’s employers added 36,400 new jobs in July. Although this was considered solid job gains by experts, the unemployment rate actually rose from 5.4% in June to 5.5% in July, as more workers entered the job search. 

Number of existing homes sold in California in July drops as tight inventory puts a squeeze on sales – The California Association of Realtors reported that the number of existing homes sold in California declined 4.1% from June’s sales pace and 5.1% from last July’s annualized rate as historically low inventory levels dragged down sales. The statewide median price in July was $509,830 which was down 1.8% from June and up 3.9% from July 2016. The unsold inventory index edged up from a 3.2 month supply in June to a 3.6 month supply in July.

Pending home sales in California rise in July – The California Association of Realtors announced that statewide pending home sales increased 3.5% in July over last July’s seasonally adjusted annualized rate. Month over month, July’s pending home sales were up 3% from June’s figures. After June and July’s increased rate of new signed real estate purchase contracts it is expected that closed existing sales will increase in the coming months as those homes close escrow. July’s closed sales were disappointing as low inventories caused closed sales to decline after hitting multi year high closed existing sales numbers in June. 

Nationwide existing home sales slowed by low inventory levels – The National Association of Realtors reported that existing home sales slowed in July after hitting the highest levels in many years in June. July’s slowdown was attributed to extremely low inventories of single family existing homes, which include single family homes, town homes, condominiums, co-ops. Sales fell 3.2% from June’s figures and year over year close sales declined 1.6% from last July. Only the western states region had an increase in closed sales. While unsold inventory inched up 0.9% from June the number of existing homes for sale nationwide are still 5.8% below last July’s number. 32% of all sales were purchased by first time buyers, up from 28% one year ago. All-cash transactions accounted for 21% of all sales, down from 23% one year ago. 

New home sales hit highest pace in nearly a decade – The Commerce Department reported that sales of new homes surged in July to the highest level since October 2007. July’s new home sales were up 12.4% from June and 31.3% from last July.That’s a number that stunned experts; however, the number of new homes being completed have risen significantly as home-builders are full production.

Stocks lower as investors grow cautious of higher rates – Hints of future interest rate increases by Federal Reserve committee members throughout the week, and an official statement Friday by Fed Chairperson, Janet Yellen that conditions have improved opening a path to higher rates investors were more cautious. Some late earnings reported this week by retailers, like The Gap were below expectations. This followed mostly positive corporate earnings reported earlier in the month. Oil prices also dropped this week after rising last week, and healthcare stocks slipped. Markets are still just below all-time highs. The Dow Jones Industrial Average closed the week at 18,395.40 down from 18,552.57 last Friday. The S&P 500 closed the week at 2,169.04, down from 2,183.87 last week. The NASDAQ closed the week at 5,218.92, down from last week’s close of 5,238.38. 

Bond yields slightly higher – The 10 year U.S. Treasury bond yield closed the week at 1.62%, up from 1.58% last Friday. The 30-year U.S. Treasury bond closed at 2.29%, unchanged from 2.29% last week. Mortgage rates follow bond yields so we watch bond yields closely.

Mortgage rates unchanged – still near record lows – The Freddie Mac Primary Mortgage Survey released on August 25, 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 3.43%. The 15-year fixed average rate was 2.74%. The 5/1 ARM average rate was 2.75%.

Pending home sales rise in July – The California Association of Realtors announced that statewide pending home sales increased 3.5% in July over last July’s seasonally adjusted annualized rate. Month over month, July’s pending home sales were up 3% from June’s figures. After June and July’s increased rate of new signed real estate purchase contracts it is expected that closed existing sales will increase in the coming months as those homes close escrow. July’s closed sales were disappointing as low inventories caused closed sales to decline after hitting multi year high closed existing sales numbers in June. 

Nationwide existing home sales slowed by low inventory levels – The National Association of Realtors reported that existing home sales slowed in July after hitting the highest levels in many years in June. July’s slowdown was attributed to extremely low inventories of single family existing homes, which include single family homes, town homes, condominiums, co-ops. Sales fell 3.2% from June’s figures and year over year close sales declined 1.6% from last July. Only the western states region had an increase in closed sales. While unsold inventory inched up 0.9% from June the number of existing homes for sale nationwide are still 5.8% below last July’s number. 32% of all sales were purchased by first time buyers, up from 28% one year ago. All-cash transactions accounted for 21% of all sales, down from 23% one year ago. 

New home sales hit highest pace in nearly a decade – The Commerce Department reported that sales of new homes surged in July to the highest level since October 2007. July’s new home sales were up 12.4% from June and 31.3% from last July. That’s a number that stunned experts; however, the number of new homes being completed have risen significantly as home-builders are full production. 

Have a great weekend! 
Syd

Stocks flat for the week – The Dow Jones Industrial Average, S&P 500, and the NASDAQ reached all-time highs on Monday, before losing ground and ended the week almost unchanged. Oil strengthened which could help oil producing regions, and the dollar softened which could be good for exports if these trends continue. The Federal Reserve released its July meeting minutes on Wednesday, but there was little impact, as committee members gave no detail about when they plan to raise rates next. The committee left the door open for a September or December rate hike, but the minutes showed that members have mixed views on the employment and inflation trends, along with the impact Brexit will have, indicating that they will raise rates at a very slow pace. The Dow Jones Industrial Average closed the week at 18,552.57, down slightly from 18,576.47 last Friday. The S&P 500 closed the week at 2,183.87, almost unchanged from 2,184.05 last week. The NASDAQ closed the week at 5,238.38, almost unchanged from last week’s close of 5,232.90.

Bond yields slightly higher – The 10 year U.S. Treasury bond yield closed the week at 1.58%, up from 1.51% last Friday. The 30-year U.S. Treasury bond closed at 2.29%, up from 2.23% last week. Mortgage rates follow bond yields so we watch bond yields closely.

Mortgage rates remain near record lows – The Freddie Mac Primary Mortgage Survey released on August 18, 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 3.43%. The 15-year fixed average rate was 2.74%. The 5/1 ARM average rate was 2.76% 

California employers add 36,400 new jobs in July – The Employment Development Department reported that California’s employers added 36,400 new jobs in July. Although this was considered solid job gains by experts, the unemployment rate actually rose from 5.4% in June to 5.5% in July, as more workers entered the job search. 

Number of existing homes sold in July drops as tight inventory puts a squeeze on sales – The California Association of Realtors reported that the number of existing homes sold in California declined 4.1% from June’s sales pace and 5.1% from last July’s annualized rate as historically low inventory levels dragged down sales. The statewide median price in July was $509,830 which was down 1.8% from June and up 3.9% from July 2016. The unsold inventory index edged up from a 3.2 month supply in June to a 3.6 month supply in July.

Have a great weekend!
Syd

Stocks up slightly this week – The DOW, S&P, and NASDAQ hit record highs again on Thursday, as investors responded to higher oil prices, and strong second quarter earnings from several large retailers. With almost all companies in the S&P 500 reporting, 69% beat analysts’ earnings estimates. Unfortunately, Friday after a disappointing retail sales report, and a drop in the producer price index stocks dropped as investors digested that spending stalled in July, despite two months of very strong job growth. The Dow Jones Industrial Average closed the week at 18,576.47, up slightly from 18,543.53 last Friday. The S&P 500 closed the week at 2,184.05, up slightly from 2,182.87 last week. The NASDAQ closed the week at 5,232.90, up from last week’s close of 5,221.12.

Bond yields drop – Weak July retail sales data, and falling producer prices caused bond yields to drop. It is widely felt that with inflation below the Fed’s target rate, and spending softening the Fed will not be raising its key interest rates. The 10 year U.S. Treasury bond yield closed the week at 1.51%, down from 1.59% last Friday. The 30-year U.S. Treasury bond closed at 2.23%, down from 2.32% last week. Mortgage rates follow bond yields so we watch bond yields closely.

Mortgage rates remain near record lows – The Freddie Mac Primary Mortgage Survey released on August 11, 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 3.45%. The 15-year fixed average rate was 2.77%. The 5/1 ARM average rate was 2.74%. 

Retail sales unchanged from June – The Commerce Department reported that retail sales in July showed no increase over June’s figure which increased 0.8% from May. Still retail sales rose 2.3% from a year ago, but economists had expected sales to rise 0.4% in July. After two months of very strong job growth experts were not expecting spending to weaken. 

Producer Price Index takes unexpected drop – The Labor Department reported that the producer price index, a key measure of inflation dropped 0.4% last month. Year over year the index shows that producer prices have slipped 0.2% since last July. Fed officials have repeatedly expressed concern about low inflation, as a strong dollar and low oil prices have muted prices.

Employers add 255,000 new jobs in July – The Bureau of Labor Statistics reported that U.S. employers added 255,000 net new jobs in July. Expectations were in the 180,000 new jobs range. Job gains had stalled out in the beginning of the year, bottoming out in May when only 24,000 new jobs were created, the worst month since the recovery began. Jobs rebound in June with a revised figure of 292,000 new jobs, one of the best months ever, and now in July with 255,000 new jobs created. July marked 70 straight months of job gains. The only sector that lost jobs in July was oil and mining, as low oil prices have caused companies to cut production. The unemployment rate held steady at 4.9%. Hourly wages also ticked up slightly bringing wages up 2.6% from last July, up from 2.2% for the 12 months ending July 2015. Wages were increasing between 3% and 3.5% annually before the recession. 

Stocks rise following strong job gains – NASDAQ and S&P at all time highs – Stocks rose Friday following the announcement of an interest rate cut by The Bank of England and other measures to stimulate the economy in the United Kingdom, and a stronger than expected U.S. new jobs report that showed that employers added 255,000 new jobs in July. Stocks had slid throughout the week. Last Friday’s GDP announcement that the economy grew just 1.2% last quarter weighed on the market early in the week.investors also pulled back due to falling oil prices which slipped to $41 per barrel, after hitting $50 a barrel in June. Oil was $120 a barrel two years ago before beginning a steep slide, bottoming out at $28 a barrel in February. Oil prices had been on the rise until slipping over the past few weeks. The Dow Jones Industrial Average closed the week at 18,543.53, up from 18,432.24 last Friday. The S&P 500 closed the week at 2,182.87, an all time high, up from 2,173.60 last week. The NASDAQ closed the week at 5,221.12, also a record high, up from last week’s close of 5,162.13. 

Bond yields rise – Investors moved funds from bonds to stocks pushing rates up. The 10 year U.S. Treasury bond yield closed the week at 1.59%, up from 1.46% last Friday. The 30-year U.S. Treasury bond closed at 2.32%, up from 2.18% last week. Mortgage rates follow bond yields so we watch bond yields closely. Mortgage rates rose with bonds at the end of the week.

Mortgage rates – The Freddie Mac Primary Mortgage Survey released on August 4, 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 3.43%. The 15-year fixed average rate was 2.74%. The 5/1 ARM average rate was 2.73%. Rates were about 1/8% higher to end the week, so expect next week’s survey to reflect that.

Have a great weekend!

Syd