Rodeo Realty

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