On Thursday August 28th, the Daily News featured an article on retail growth in the Antelope Valley. Projects approved in boom years are now under construction. For example, in 2005-2006, 500,000 square feet was approved. By the end of the next year, 1.4 million square feet was approved. The article is linked below:
http://www.dailynews.com/antelopevalley/ci_10320591?source=email
Thursday, August 28, 2008
Friday, August 1, 2008
APPRAISAL INSTITUTE ANNUAL CONFERENCE
I attended the Appraisal Institute's annual summer conference, which included presentations from Fannie Mae and Jack Kyser of the Los Angeles Economic Development Corporation. The biggest piece of information that resonates with me today is that Commercial Mortgage Backed Securities (CMBS) transactions are off 92% from last year. That is a near complete collapse of the secondary mortgage market.
While there were plenty of declarations yesterday that the worst is about over, or that the new home market was poised to recover because only 1,000,000 homes will be built this year, UNTIL LIQUIDITY RETURNS TO THE MARKET, THERE CAN BE NO RECOVERY.
While there were plenty of declarations yesterday that the worst is about over, or that the new home market was poised to recover because only 1,000,000 homes will be built this year, UNTIL LIQUIDITY RETURNS TO THE MARKET, THERE CAN BE NO RECOVERY.
SCV HOME SALES RISE IN JUNE
The Southland Association of Realtors reported that June transactions were up 11.2% compared to June 2007, also an increase of 4.1% from May 2008.
Median detached single family home prices dropped 25.6% from a year earlier and stands at $450,000, down from the $643,000 record high recorded in April 2006. The decline is exactly 30% from the peak over the 27 month period. The median price for condos was down 23% from a year ago to $285,000, and down from the January 2006 record of $397,000, down 28% from the peak. This indicates that the slide has been the most dramatic in the past 12 months.
Listings are down 16.4% from June 2007 and the current inventory represents only a 6.4 month supply at the current pace and slightly over the 5 to 6 month supply the Association deems to be "balanced" (though I don't know many sellers that would like to wait 5 to 6 months to sell their home).
The low inventory is optimism that once liquidity returns to the market, prices will stop declining.
Median detached single family home prices dropped 25.6% from a year earlier and stands at $450,000, down from the $643,000 record high recorded in April 2006. The decline is exactly 30% from the peak over the 27 month period. The median price for condos was down 23% from a year ago to $285,000, and down from the January 2006 record of $397,000, down 28% from the peak. This indicates that the slide has been the most dramatic in the past 12 months.
Listings are down 16.4% from June 2007 and the current inventory represents only a 6.4 month supply at the current pace and slightly over the 5 to 6 month supply the Association deems to be "balanced" (though I don't know many sellers that would like to wait 5 to 6 months to sell their home).
The low inventory is optimism that once liquidity returns to the market, prices will stop declining.
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