Have We Reached the Bottom of the Market?

On Thursday, July 9, 2009, IAS360, a leader in default management and residential collateral valuations, released its House Price Index which indicates that the national house prices gained 1.6% in May.

New home sales in June increased 11% when compared to May sales, which is the largest increase in more than 8 years.  According to David Resler, chief economist at Nomura Securities, “The worst of the housing recession is now behind us.”

According to Jonathan Dienhart, Director of Published Research for HWMI, “The incremental gains since March are counter to (the) typical seasonal trend, which suggests the market has found the bottom and is truly stabilizing, albeit slowly.”

 

As for the local Santa Ynez Valley market, the trend indicates (via the adjacent Market Velocity graph) that we are seeing a shift in the *days of inventory, which is now close to 1/2  when compared to the highest point.

Speaking with Realtors in other areas where there is a larger number of  “starter” homes, they are now seeing multiple offers on homes that at one time would have been considered over-priced.  As the low-end of the market recovers we are seeing an upward trickle affect. Generally speaking the low-end of the market is the first to be affected and the first to recover.

*Market Velocity-Days of Inventory-the number of days that it will take to eliminate the inventory at the rate properties are entering escrow.

If you are interested in Real Estate in the Santa Ynez Valley, Santa Barbara, Hollister Ranch or surrounding areas, please contact me at jenae@jenae-johnson.com or 805.452.9812.

You can also visit my web site at www.HomesOfSantaYnez.com

Jenaé Johnson

Broker Associate

Village Properties

Lic# 01308742

Santa Ynez Valley-Wine Country of the Central Coast

Located just 30 Miles from Santa Barbara and about 125 miles from Los Angeles this quaint community is renowned for its wine and equestrian lifestyle.

Enjoy wine tasting at any one of our gorgeous wineries, shopping at our fabulous boutiques or an equestrian experience at our various ranches.

The Santa Ynez Valley consists of the six communities of Ballard, Buellton, Los Alamos, Los Olivos, Santa Ynez and Solvang. Each town offers its individual contribution that makes the Valley a unique, special place.

For more information about the Santa Ynez Valley and real estate or activities in the Valley, please contact me either via email at jenae@jenae-johnson.com or mobile at 805.452.9812.

You can also visit my web site at www.HomesOfSantaYnez.com

Jenaé Johnson

Broker Associate

Village Properties

Lic# 01308742

Why Should I Buy Now?

Why Should I Buy Now?

No one will know when the bottom has hit until it has already turned around.

We are already beginning to see positive indicators on many fronts and with the rise in consumer confidence people are once again out buying.

The Conference Board Consumer Confidence Index™ Increases Sharply

• Consumer confidence is up considerably again in May at 54.9 from 40.8 in April according to the Conference Board Consumer Confidence Index TM. This is highest level since September 2008.

Forecasters Say Recession Nearing End

• 90% of economist think that we are near the end of the recession. Almost 75% of these economist think that the recession will end in the third quarter of 2009. The remaining economist think that the recession will end in the first quarter of 2010.

NAR: Existing-Home Sales Jump

• As of April existing home sales in the West rose 19.4% annualized over the year before.

Single-Family Home Construction Up Again in April, CBIA Announces

• New home permits pulled in California are up 21% in April over the previous month. The number of permits pulled is at its highest since October 2008.

Homeownership Still Pays ~ Home-equity snapshots paint a bright picture.

“In comparison to renters, home owners have greater wealth. Home equity gains are a rule rather than an exception… The data clearly show that homeownership remains the biggest store of wealth for the typical household, even when markets are buffeted by some admittedly very rocky years.”

• According to the National Association of Realtors (NAR), housing affordability is at its highest level since NAR began tracking the measure.

If you are interested in Real Estate in the Santa Ynez Valley, Santa Barbara, Hollister Ranch or surrounding areas, please contact me at jenae@jenae-johnson.com or 805.452.9812.

You can also visit my web site at www.HomesOfSantaYnez.com

Jenaé Johnson

Broker Associate

Village Properties

Lic# 01308742