Los Angeles Home Prices and Home Values - 11/10/11

Hey everyone!

We just saw this graph on Zillow today and wanted to share it with you.

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Los Angeles Zillow Home Value Index

Los Angeles Home Values - Interactive chart

LA MORTGAGE UPDATE: "U.S. MORTGAGE RATES HIT RECORD LOW"

U.S. MORTGAGE RATES HIT RECORD LOW
The average rate for a 30-year fixed loan dropped to 4.01%, the lowest level in Freddie Mac records. This comes after the Federal Reserve announced a plan to reduce borrowing costs even further.

By Bloomberg News

September 29, 2011 11:11 a.m.

(Bloomberg) - Mortgage rates in the U.S. fell to the lowest level in Freddie Mac records after the Federal Reserve announced a plan to reduce borrowing costs even further.

The average rate for a 30-year fixed loan dropped to 4.01% in the week ended Thursday from 4.09%, Freddie Mac said in a statement. That's the lowest in the McLean, Va.- based company's records dating back to 1971. The average 15-year rate declined to 3.28% from 3.29% last week.

Yields on 10-year Treasuries, a guide for consumer loans, touched the lowest level in more than a half-century, after the central bank said on Sept. 21 that it would begin a program aimed at boosting the economy and lowering mortgage rates. The effort, called Operation Twist, would replace shorter-term securities in the Fed's portfolio with longer-term debt. Policymakers also plan to support the home-loan market by reinvesting maturing housing debt into mortgage-backed securities.

“Mortgage rates have fallen some ways already, but they probably haven't fully caught up with the decline in the 10-year Treasury,” said Paul Dales, senior U.S. economist at Capital Economics Limited. “It's possible the effects of Operation Twist will drag 10-year yields down further, thereby weighing on mortgage rates more.”

The gap, or spread, between the average 30-year fixed mortgage rate and the benchmark 10-year Treasury yield widened to 2.26 percentage points last week, the biggest gap since 2009, according to data compiled by Bloomberg. If the spread matched the gap of 1.17 percentage points in February, the 2011 low, home-loan rates now would be close to 3%.

Homeowners are taking advantage of low borrowing costs to reduce their monthly payments. A Mortgage Bankers Association index of refinancing rose 11% in the week ended Sept. 23. The Washington-based trade group's purchase gauge increased 2.6%.

Declining interest rates have done little to stimulate the U.S. housing market as the unemployment rate sticks above 9% and lenders tighten credit. The number of contracts to purchase previously owned homes fell 1.2% in August, following a 1.3% decline the previous month, according to a National Association of Realtors index released Thursday.

Record-low borrowing costs “are only a marginal support right now,” said Michael Feroli, chief U.S. economist at JPMorgan Chase & Co. “Mortgage credit is still tight and secondly, on the demand side, households are concerned about the job market and falling house prices.”

The S&P Case-Shiller index of home values in 20 U.S. cities decreased 4.1% in July from a year earlier, the group reported Sept. 27.

Purchases of new houses fell in August to a six-month low, Commerce Department data showed this week. Sales of previously owned homes that month rose to a five-month high, boosted by demand for lower-priced distressed properties, the National Association of Realtors said Sept. 21. The median price dropped to $168,300 from $177,300 in August 2010.

Source: www.crainsnewyork.com

Picfair Village & Faircrest Heights Home Sales Update: August 2011

Hi All-

Here is the full list of homes sold and new on market for August 2011 in Picfair Village/Faircrest Heights:

New Listings
1486 Stearns Drive - 2BR/1BA - $649,000
1806 S. Orange Grove - 4BR/3BA - $915,000
1841 S. Point View St - 3BR/1BA - $639,000
1632 S. Stanley Avenue - 2BR/2BA - $525,000
5980 Pickford Street - 2BR/1BA - $599,000
1636 Ellsmere Ave - 2BR/1BA - $469,000
1943 S. Point View St - 3BR/2BA - $590,000

In Escrow
1623 Carmona Avenue - 2BR/2BA - $489,000
1551 S. Orange Grove Ave - 2BR/1BA - $539,000
1922 S. Point View St - 2BR/2BA - $587,000
1646 Stearns Drive - 4BR/2BA - $829,950
1637 S. Hayworth Ave - 3BR/2BA - $699,900
1958 S. Crescent Heights Ave - 2BR/1BA - $589,000
1625 S. Sierra Bonita Ave - 2BR/2BA - $599,000

SOLD
1789 S. Fairfax Ave - 2BR/2BA - $452,000
1856 S. Hayworth Ave - 3BR/1.5BA - $560,000
1731 S. Hayworth Ave - 3BR/2BA - $570,000
1749 S. Orange Grove Ave - 4BR/2BA - $535,000

For further details about any of these properties or for a free market evaluation of your own home, feel free to call me anytime on my cell at 310-228-8856.

-Jerry

May 2011: Median Neighborhood Homes Sales - Quarter 1 of 2011

CLICK CHART BELOW FOR LARGE VIEW

April 2011 Median Home Sales for Los Angeles

Hi Everyone-

Sorry it's been a couple months since I posted. Here are the median sales stats from our MLS with latest MLS stats for 2011.
Jerry
310-228-8856