Below is the local market report for the San Fernando valley for January 2014. The report details real estate market statistics with year-over-year data on median price and days on market.
Rodeo Realty Los Angeles Local Market Report–January 2014
Below is the Los Angeles Westside Market Report for January 2014 detailing local real estate market statistics and including year-over-year data:
Economic Update For January 2014 With Syd Leibovitch
January saw some corrections in the stock market with the S&P 500 and the Dow posting their biggest monthly percentage decline since May 2012. This was the first January since 2010 with a decline.
The Dow closed out the month at 15,698.85 down -5.3% from last month’s close of 16,576.60 and down -1.14% from last week’s close of 15,879.11.
The Nasdaq fared a bit better, ended the month at 4,103.88 down -1.7% from last month’s close of 4,166.66 and down -0.59% from last week’s 4,128.17 close.
The S&P 500 ended the month at 1,782.59, a drop of -3.56% from last month’s 1,848.36 close and down -0.43% from last week’s 1,790.29 close.
Interest rates dropped during the month. The Freddie Mac Weekly Primary Mortgage Market Survey showed that the 30-year-fixed rate dropped to 4.32% from 4.39% last week and 4.53% at the start of the month. The 15-year-fixed fell to 3.40% from last week’s 3.44% and 3.55% at the start of the month. A year ago the 30-year fixed was at 3.53% and the 15-year was at 2.81%.
Over the course of January 10-year Treasury note yield rate fell after starting the month at 3.0% It closed out the month at 2.67% after ending last week at 2.75%. It was 2.02% a year ago.
Los Angeles County’s unemployment rate fell to 9.2% in December down from 9.5% in November and 10.3% in December 2012. This is its lowest point in more than five years. The state rate is 8.3% and the national rate was 6.7% in December.
Consumer confidence has risen again. The Conference Board reported that the consumer confidence index increased to 80.7 this month from a downwardly revised 77.5 in December beating economists’ estimates of a 79 reading. The index is now higher than it was in September before the confidence-eroding government shutdown and is at its highest level since August. However the consumer sentiment gauge from the University of Michigan and Thomson Reuters registered a final reading of 81.2 in January, down from December’s 82.5. In December, consumer spending rose a seasonally adjusted 0.4% which was above analysts’ expectations of a 0.2% gain. Economists are predicting consumer spending will rise at least 2% over the course of the year.
The Commerce Department reported that sales of new U.S. homes decreased -7% to a 414,000 annualized pace in December, lower than was predicted by economists who predicted a 455,000 pace last month. For all of 2013, demand was up 16.4% to 428,000. The median sales price of a new home rose 4.6% from December 2012 to $270,200. New-housing demand has rebounded from a record-low 306,000 homes sold in 2011, the record peak was 1.28 million in 2005. I would attribute this to very low inventory which is also causing rapid price increases.
The latest S&P/Case-Shiller Home Price Index shows that the 20-city composite rose 13.7% year over year through November 2013 while declining -0.1% from the previous month. Nine out of 20 cities recorded positive monthly returns including Los Angeles which saw a 0.1% increase. It is predicted that while housing prices will continue to rise, the pace of the rise will be slower in 2014.
The National Association of Realtors reported that its Pending Home Sales Index dropped -8.7%last month to 92.4, the lowest level since October 2011. Contracts were down 8.8% from the December 2012 levels. It is believed that unusually harsh weather across the country caused the low numbers of potential buyers. The index in the West dropped 9.8% in December to 85.7, and is 16.0% below December 2012 and this is attributed to the lack of inventory in the market.
As I wrote last week we are beginning to see another increase in prices and buyer demand. It appears that 2014 will be much like 2013. The question is: How high can prices go? That’s not a new question. We recently sold a home in Beverly Hills for $15 million that the buyer bought for $475,000 in 1976! A valley home that just sold for $630,000 was purchased for $98,000 in 1980. All my life, with the exception of a few down years every 20 years or so, I have been hearing the question: How high can prices go? The answer is: Who knows! Definitely they are going up. The question is how long. I’d expect these gains to begin to level in a year or so. Anyone who doesn’t buy now will wish in 6 months that they did!
Rodeo Realty Winter Conference Brings Agents Together To Learn From The Best
This week, Rodeo Realty agents gathered for a conference to share knowledge and learn from some of the best. The keynote speaker was popular real estate trainer Rick DeLuca. Rick sold over 200 homes per year and was once the 8th ranked real estage agent in the country but he also has perhaps one of the most interesting stories in real estate, working first as a homicide detective before getting into the real estate market. When DeLuca says he’s seen it all, it’s clear that it is true. Although he entered the market at a time when real estate was booming, he soon had to weather one of the toughest markets ever. This helped him learn to develop the good habits that led him to future success. His goal is always to see what others are doing and then figure out how he can top that. It’s a philosophy that Rodeo Realty agents already believe in but it’s always good to have a reminder. Creating good habits is also about consistency and goal setting. Connection doesn’t just happen when a person is buying or selling, it’s about listening, being available, sharing relevant data and helping people make informed decisions.
Throughout the conference agents shared tips and success stories. Rodeo Realty Beverly Hills Manager John Gould led a panel that featured top-level wealth management professionals. Agents Barbra Stover, Matthew Paul, and Desiree Zuckerman shared their digital marketing strategies while Carol Wolfe, Elyse Arbor, Tom Otero, and Judy Handler discussed hyperlocal marketing in a panel moderated by Rodeo Realty Sherman Oaks Manager Jason Katzman.
Rodeo Realty agents came away from the conference with many ideas and lots of energy to make 2014 the best year yet!
Syd Leibovitch Named To The Los Angeles Business Journal's Who's Who List
Syd Leibovitch, president and founder of Rodeo Realty was honored as one of the leaders in Los Angeles Residential Real Estate by the Los Angeles Business Journal. Their annual special report, “Who’s Who in Los Angeles Business” was published earlier this month. The report lists the executives in the biggest and most important companies and organizations across a variety of industries from aerospace/defense to software.
Syd studied economics and banking, and began selling real estate at age 23 while an NCAA track star at UCLA. He was a top selling Realtor in the area by the time he was 25 and opened his company that same year in 1986. He hasn’t looked back since and today devotes his time and energy into growing his company into a regional powerhouse.
Today, Syd has built Rodeo Realty, Inc. into the largest single-owner real estate firm in California and one of the largest in the country. The company now has twelve offices throughout Los Angeles and Ventura counties and more than 1,000 licensed Realtors. Syd also owns established mortgage and escrow companies and is regularly interviewed on topics relating to the mortgage meltdown, home sales and prices. He is a popular expert witness and a reliable source consulted by the media for his expertise as a qualified leader in the real estate and mortgage industries.
Economic Update For The Week Ending January 24, 2014 with Syd Leibovitch
Stocks took a substantial slide this week as the Dow closed the week under the 16,000 mark with both the Dow and S&P 500 taking their worst weekly losses in over a year. There was a substantial selloff on Thursday as investors digested weak Chinese economic data and dealt with currency drops in emerging markets. Some economists are saying that this may be the beginning of a correction in the stock market after last year’s meteoric rise. The Dow closed out the week at 15,879.11 down -3.52% from last week’s close of 16,458.56. The Nasdaq closed at 4,128.17 down -1.65% from last week’s 4,197.58 close. The S&P 500 finished the week at 1,790.29 down –2.63% from last week’s 1,838.70 close.
Interest rates dropped this week awaiting the next meeting of the Fed later this month. The Freddie Mac Weekly Primary Mortgage Market Survey showed that the 30-year-fixed rate dropped to 4.39% from 4.41% last week. The 15-year-fixed fell to 3.44% from last week’s 3.45%. A year ago the 30-year fixed was at 3.42% and the 15-year was at 2.71%. Loans over $417,000 are about 1/2% higher in rate.
The 10-year Treasury note yield rate continues to fall this week ending at 2.75%, after last week’s 2.84% close. It was 1.88% a year ago, but reached 3% in December.
The National Association of Realtors® reported that existing home sales were up 1.0% in December increasing to a seasonally adjusted annual rate of 4.87 million in December from a downwardly revised 4.82 million in November. This is – 0.6% below the 4.90 million-unit level in December 2012. For all of 2013, there were 5.09 million sales, which is 9.1% higher than 2012. It was the strongest performance since 2006. The national median existing-home price for all of 2013 was $197,100, 11.5% above the 2012 median of $176,800, and was the strongest gain since 2005 when it rose 12.4%. The median existing-home price for all housing types in December was $198,000, up 9.9% from December 2012. Distressed homes represented 14% of December sales; they were 24% in December 2012. Total housing inventory at the end of December fell 9.3% to 1.86 million existing homes available for sale, which represents a 4.6-month supply at the current sales pace, down from 5.1 months in November. I use these numbers to point out that the dramatic price increase we have seen has been similar though out many areas nationally.
Realtor.com® released its final National Housing Trend Report for 2013 which showed that the median list price for December 2013 was 8.1% above December 2012, the median age of inventory was down by -5.1% and the number of units for sale was essentially unchanged. The total inventory of homes for sale in the United States declined from 1,846,155 units in November to 1,731,017 units in December, while month-over-month inventory rose from 101 to 112 days, and the median list price declined from $197,700 to $194,500. The median price for the Los Angeles-Long Beach MSA rose 28.5% for the year, up to $455,000 while the amount of listings fell by -9.75% to 19,633 and the median age of inventory fell for the year by 12.33% to 64.
DataQuick announced that California foreclosure activity hit an eight-year low in the fourth quarter of 2013 with a total of 18,120 default notices filed on houses and condominiums from October through December, down -10.8% from 20,314 in the previous quarter and down a whopping -52.6%from 38,212 from the same period of 2012. This marks the lowest number of default notices since 15,337 were filed in the fourth quarter of 2005.
The Pending Homes Sales Index for December from the California Association of Realtors® showed that pending sales dropped -25.2% in December to reach 68.8 down from a revised index of 92 in November, based on signed contracts. Pending sales were down 16.8% from the revised 82.8 index recorded in December 2012. The share of equity sales in December dipped to 84.3%, down from 86.4% in November. Equity sales made up 63.4% of sales in December 2012. The share of distressed sales to total sales in Los Angeles County was 18% in December 2013. It was 14% in November and 35% in December 2012.
We are seeing activity begin to increase dramatically. Over the last week our open escrow count has began to increase rapidly. We are also seeing what appears to me as another surge in prices. This is not unusual. It is common for prices to increase steadily from February to June or so and then flatten. I’d expect the same in 2014!
Rodeo Realty January Magazine
The Rodeo Realty January Magazine is out. Read about all the great things happening at Rodeo Realty this month. This year is already flying by!
Rodeo Realty Agent Joe Dunnavant Offers Advice For Newlyweds On MyHotelWedding.com
As we enter spring buying season there’s another season approaching, wedding season. Many people who get married are often looking to buy a home. Rodeo Realty agent Joe Dunnavant isn’t just a real estate expert, his background as Worldwide Sales Account Director at Four Seasons Hotels and Resorts has given him a unique insight into customer service and he shares this on MyHotelWedding.com, a site devoted to all things wedding. For his first column with the site, Joe delivers 5 tips for newlywed home shoppers. Joe’s tips are both practical (get that pre-approval first) and kind (he urges couples to be gentle with themselves as they go through the home search process. Click here to ready the article on MyHotelWedding.com.
Economic Update For The Week Ending January 17, 2014 by Syd Leibovitch
Stocks did a little consolidating this week as investors digested the jobs numbers and continued to ponder the strength of the economic recovery. The Dow and Nasdaq were up for the week but the S&P was slightly lower. The Dow closed out the week at 16,458.56 up 0.13% from last week’s close of 16,437.05. The Nasdaq closed at 4,197.58 up 0.55% from last week’s 4,174.66 close. The S&P 500 finished the week at 1,838.70 down –0.2% from last week’s 1,842.37 close.
On the heels of last week’s low job creation numbers there is some positive employment news, The U.S. Department of Labor reported that the number of job openings in November hit 4 million, up more than 5% from a year before and the highest level since March 2008. The number of quits rose to 2.43 million, the most since September 2008, showing that many workers are seeing more prospects out there and are willing to change jobs.
The latest survey on consumer sentiment fell in January with a reading of 80.4 as compared to a reading of 82.5 in December, well below economists’ forecasts of an 84 reading. Survey respondents may have been reacting to the recent job numbers as well as a slight uptick in the average price of gasoline (up to an average of $3.296 per gallon compared to last month’s $3.216 per gallon).
U.S. housing starts fell less than expected in December. The Commerce Department reported that groundbreaking fell -9.8% to a seasonally-adjusted rate of a 999,000-unit pace, the largest percentage decline since April but above economists’ expectations of a 990,000-unit rate in December. For all of 2013, housing starts rose 18.3% to an average of 923,400-unit rate. Groundbreaking for single-family homes fell 7% to a 667,000-unit pace in December while the multifamily homes segment declined 14.9% to a 332,000-unit rate. Permits to build homes fell 3% in December to a 986,000-unit pace but for all of 2013, permits increased 17.5% to an average of 974,700-units.
The 10-year Treasury note yield rate remained relatively steady this week ending at 2.84%, after last week’s 2.88% close. It was 1.89% a year ago.
Interest rates dropped this week awaiting the next meeting of the Fed later this month. The Freddie Mac Weekly Primary Mortgage Market Survey showed that the 30-year-fixed rate dropped to 4.41% from 4.51% last week. The 15-year-fixed fell to 3.45% from last week’s 3.56%. A year ago the 30-year fixed was at 3.38% and the 15-year was at 2.66%.
The California Association of Realtors® (C.A.R.) released numbers showing that California home sales fell for the fifth straight month in December partly because the distressed market plays a smaller role in the state’s housing market so there was less movement by lenders trying to move properties off their books by the end of the year. Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 361,890 units in December, down -6.7% from a revised 387,860 in November and down -18.6% from a revised 444,770 in December 2012. For 2013 as a whole, a preliminary 413,870 single-family homes closed escrow in California, –5.9% from a revised 2012 figure of 439,790.
Home prices rose in December according to C.A.R. The statewide median price of an existing, single-family detached home rose 3.7% from November’s median price of $422,210 to $438,040 in December. December’s price was 19.7% higher than the revised $365,840 recorded in December 2012, marking a year and a half of double-digit annual gains and the first time in 15 months that the annual increase was below 20%. For Los Angeles County the median sold price $439,590 was up 8.5% over November’s $405,260 price and up 19.6% over December 2012’s $367,400 price. The amount of sales was up 9.5% month over month but down -15.1% year over year. The available supply of existing, single-family detached homes for sale dropped in December to 3 months, down from November’s Unsold Inventory Index of 3.6 months, it was 2.6 months in December 2012. The median number of days it took to sell a single-family home also increased to 40.2 days in December, up from 36.7 days in November and from 38.1 days in December 2012.
The latest information from DataQuick shows that home sales across the six-county Southland area fell to a six-year-low for December while the median price paid for a home rose to the highest level in nearly six years. A total of 18,415 homes were sold in Los Angeles, Riverside, San Diego, Orange, Ventura, and San Bernandino counties last month. The number was up 6.5% from 17,283 sales in November and down -9.2% from 20,274 sales in December 2012. Last month’s sales were -24.1% lower than the average number of sales in the month of December. The median sales price for the Southland region was $395,000 last month 2.6% gain from November and 22.3% over December 2012. DataQuick attributes the numbers to investor activity decreasing as buyers faced a low inventory of homes with demand continuing to outstrip supply. The typical monthly mortgage payment Southland buyers committed themselves to paying last month was $1,594, up from $1,517 the month before and up from $1,139 a year earlier. Buyers paying cash in December accounted for 27.7% of home sales, down from 28.0% the month before and down from 35.8% a year earlier. For Los Angeles County alone 7,198 homes were sold compared to 6,240 last December, a decrease of -13.30%. The median price in LA Country rose year over year from $352,000 to $430,000, a gain of 22.2%.
CoreLogic reported that the number of completed foreclosures and the U.S. foreclosure inventory were down in November. There were 46,000 completed foreclosures in the United States in November 2013, down -29% from 64,000 in November 2012. Month over month foreclosures were down 8.3% from 50,000 in October. Before the housing crash, completed foreclosures averaged 21,000 per month (2000 to 2006). The total U.S. foreclosure inventory dropped 34% with 812,000 homes in some stage of foreclosure in November, compared to 1.2 million in November 2012. Foreclosure inventory represented 2.1% of all homes with a mortgage, compared to 3% in November 2012. The rate of seriously delinquent mortgages is at its lowest level since November 2008.
Realty Trac reported that foreclosure activity dropped by -26% in 2013 and U.S. homes that got started on the path to foreclosure fell last year to a low not seen since before the housing boom. Foreclosure starts were down 33% from a year earlier and at the lowest annual level since 2006.
The National Association of Home Builders released their latest survey which shows builder confidence holding relatively steady. The NAHB/Wells Fargo Housing Market Index was at 56 points in January from a downwardly revised 57 in December. The December reading originally reported at 58 was the highest level since August. Rising prices, low interest rates and continued demand continue to make home builders optimistic about the current market.
The Consumer Price Index increased 0.3% in December, the largest 1-month increase since June 2013 however much of that was due to energy prices. Year-over-year prices rose 1.5%, well under the Federal Reserve’s 2% inflation target.
very active. We are starting to see the beginning of another price surge!
December 2013 Local Market Report For The San Fernando Valley
Below is the local market report for the San Fernando valley for December 2013. The report details real estate market statistics with year-over-year data on median price and days on market.