Buying beats renting in most U.S. cities

By Les Christie @CNNMoney August 2, 2012: 11:10 AM

Buying  a home in most major markets will end up being cheaper than renting one.
Buying a home in most major markets will end up being cheaper than renting one.

NEW YORK (CNNMoney) — For people who are willing to stay put for a few years, buying a home has become a much better deal than renting in almost every major housing market in the nation.

In more than 75% of the 200 metro areas analyzed by real estate listing web site Zillow, homeowners would reach a “breakeven point” – where owning the home makes better financial sense than renting it — in three years or less.

“Historic levels of affordability make buying a home a better decision than ever, especially considering rents have risen more than 5% over the past year,” said Stan Humphries, chief economist for Zillow.

The survey was Zillow’s first buy-versus-rent analysis, incorporating all homeownership costs, including down payments, closing costs, mortgage payments, property taxes, utilities and maintenance costs, and compared them to rental costs. It also took into account projected home price appreciation and rent increases, as well as tax deductions and inflation.

Zillow’s findings support other reports that show that rising rents, record-low mortgage rates and falling home prices have made homeownership a more attractive option.

In some of the metro areas Zillow looked at, home buyers would break even in less than two years.

In Miami, for example, a homebuyer would only have to stay in their home for about 1.6 years for the purchase to pay off, Zillow said.

Homes in the metro area are selling for about 45% less than they were five years ago. Meanwhile, over the past three years, rents have climbed 20%, according to RentJungle.

Miami’s metro area, along with Tampa, Fla., Memphis, Tenn., and several smaller cities, have the shortest break-even times of the markets Zillow analyzed.

Renters still have the upper hand in some cities. It would take home buyers in San Jose, Calif., 8.3 years to break even on their homes — the longest period of time of any of the metro areas Zillow surveyed. Other big cities where buying was not such a good a deal were Honolulu, at a six-year break-even point, and San Francisco at 5.9 years. To top of page

Buy vs. rent in 30 major cities
City State Breakeven time in years
New York N.Y. 5.1
Los Angeles Calif. 4.3
Chicago Ill. 2.8
Dallas Texas 2.1
Philadelphia Pa. 3
Washington D.C. 3.5
Miami Fla. 1.6
Atlanta Ga. 2.5
Boston Mass. 4.3
San Francisco Calif. 5.9
Detroit Mich. 1.7
Riverside Calif. 2
Phoenix Ariz 1.7
Seattle Wash. 4
Minneapolis Minn. 2.7
San Diego Calif. 3.6
Tampa Fla. 1.6
St. Louis Mo. 2.5
Baltimore Md. 2.8
Denver Colo. 2.5
Pittsburgh Pa. 2.1
Portland Ore. 3.5
Sacramento Calif. 3.1
Orlando Fla. 1.7
Cincinnati Ohio 2.1
Cleveland Ohio 2.4
Las Vegas Nev. 1.7
San Jose Calif. 8.3
Columbus Ohio 2.4
Charlotte N.C. 2.7
Source: Zillow

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Olympic Medal Count 2012: Early Day 5 Standings and Bold End-of-Play Predictions

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Rob Schumacher-USA TODAY

The London Olympics are going strong, and Day 5 looks to continue the fun and excitement.

After the crowing of Michael Phelps’ Olympic record on Tuesday, we turn our heads to some different action.

Medals will be handed out in 11 different sports on Wednesday. From kayaking to weightlifting, athletes will rise to the occasion for their countries or falter and return home without realizing their Olympic dreams.

Most of the medals being earned today are not in the high-profile events, but they add to to the overall medal count all the same.

London Olympics Medal Count as of Aug. 1, 8 a.m. ET.

Olympic Medal Tracker Gold Silver Bronze
China Total: 23 13 6 4
United States Total: 23 9 8 6
Japan Total: 13 1 4 8
France Total: 11 4 3 4
South Korea Total: 8 3 2 3
For full medal results, check out Bleacher Report’s official leaderboard.

 

Quiet Day for Americans

Wednesday won’t be a day filled with medal upon medal for the USA. There are opportunities here and there to snag a few, most notably in the men’s individual all-around gymnastics finals and women’s 4×200-meter freestyle relay, but overall it should be fairly quiet on the American front.

The American contingent will be focused on preliminary action. Misty May-Treanor and Kerri Walsh-Jennings look to continue their Olympic set and match records in beach volleyball, and Team USA attempts to continue their domination in women’s basketball.

Don’t look for a big influx in gold on Wednesday.

Gymnastics Redemption

After a disappointment in the team competition, the men will go their separate ways and look for individual gold. This will be their chance to some sort of redemption after not claiming a medal as a group.

The men are talented and can come away with some individual hardware. Supposedly they have the best talent since the 1984 squad, but they have yet to live up to that potential in London.

It will be interesting to see what their mindset is entering the competition after their previous performances. As much as they were celebrated entering the Games, it is time for the men to step up. Maybe they can be inspired by what the women did on Tuesday.

China Will Extend Gold Lead

With the Americans only having a select few opportunities to close the gap on gold, look for the Chinese to extend their lead.

They already have one gold guaranteed as the gold-medal match in women’s table tennis features Ding Ning and Li Xiaoxia.

Their early grasp on gold may be difficult to overcome, but it’s still early in the Games, and the Americans have plenty of opportunities to close the gap as the days pass. But for today, it looks as if they will extend the lead and continue their firm grasp over the rest of the world.

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Growing Panes: Homeowners Go Big on Glass Walls

Anita and Bob Dethlefs wanted the new Portland, Ore. home they were building to really let the sunshine in. So, the couple installed 2,700 square feet of Marvin windows—about $300,000 worth—on nearly every wall of the property.

Giant spans of glass,once seen mainly in commercial construction, are now more common in residential homes. Wendy Bounds explains how technology has enabled glass makers to make these more affordable, safe (if tempered) and energy efficient.

And then they put up 12 security cameras.

“We’re getting about as much light as you can in the Northwest but with so many windows, safety was the No. 1 concern for me as a mommy with kids running around the house,” says 43-year-old Ms. Dethlefs, who has five children. Her husband started a leadership conference business, Evanta Inc., in 2003 and later sold it. Their 13,000-square-foot, $5 million Frank Lloyd Wright-inspired home even has a glass front door, letting visitors on the front stoop see through the family’s living room out to Mount Hood.

Forget about a room with a view. Today, homeowners want views from every room. As large expanses of glass have become architecturally acceptable for modern and traditional homes, new technology is making living in a fishbowl more practical—albeit sometimes challenging.

Homes That Let the Sun Shine In

Leah Nash for The Wall Street Journal

Anita and Bob Dethlefs moved into their new Portland 13,000-square-foot home in November. The Frank Lloyd Wright-inspired home has about $300,000 worth of windows to let in as much light as possible and help with the ‘gray sky’ malaise Ms. Dethlefs says she gets living in the Pacific Northwest.

Homeowners’ desire for more open floor plans with combined kitchen and living-room spaces has paved the way structurally for bigger spreads of glass. A growing appetite for more energy-efficient windows and associated tax incentives and rebates have also supported the trend.

“The open floor plan is predominant in almost everyone’s design now,” says builder Tim Wilkinson of Great Falls, Mont. “They want more light and bigger windows to take advantage of views.”

Today, thanks to technological advances, nearly all windows installed in new homes have special, invisible coatings that block heat and keep ultraviolet rays from fading furniture. Many also use double or triple-panes with argon or krypton gas sandwiched in between, which helps insulate in cold climates. Now standard on Andersen Windows glass: a titanium dioxide coating the company says sheds dirt and virtually eliminates water spots. Some glass makers are even marketing windows for residences that can tint and untint with the push of a button.

And for those put off by the prospect of raising and lowering so many blinds, companies such as Lutron Electronics sell window shades that can be controlled with an iPhone app.

“Across the board, people want more light,” says Mike Rogers, senior vice president of GreenHomes America Inc., a company specializing in energy-efficient home renovations, which has been incorporating more glass in its projects.

Beyond privacy and safety—Ms. Dethlefs’s chief worries—there are maintenance issues, such as how to keep so much glass spotless. (The couple pay $850 to $950 for professional cleaning at least three times a year.) And despite technological improvements, glass still doesn’t typically insulate as well as a wall packed with insulation.

Then there is the bird problem: Anywhere from 100 million to 1 billion are killed in window collisions every year, according to the U.S. Fish and Wildlife Service.

While manufacturers such as Andersen Corp. and Marvin Windows and Doors say overall window sales have slowed amid a sluggish new-house market, the companies say they are seeing more and larger windows going into new homes.

In modern homes, “they are filling space between floor and ceiling with as much glass as they can,” says Jay Sandgren, an architectural representative for Andersen. He says builders are being “a lot smarter” about positioning a home and the roof overhang to capture the most sunlight in winter and to block much of the heat from the sun in summer.

Building with glass isn’t cheap. Mr. Wilkinson the Montana builder estimates the price is about double the cost of installing regular walls packed with insulation. His own 4,800-square-foot home that he completed last year has $85,000 worth of Andersen glass, giving him a 240-degree view of three mountain ranges and the Missouri River. Even the deck railings are glass panels.

Tempered safety glass is installed according to local building codes in areas of homes where breakage might be of particular concern, such as windows and doors close to the floor or near a stairway or landing. Glass can sometimes attract vandals in the construction phase, a headache for builders, Mr. Wilkinson says. But breakage for homeowners “is rarely a problem,” he says, although he cautions that people mowing the lawn should look out for rocks that the mower can kick out to crack a pane.

Architect Thomas Roszak took the fishbowl aesthetic to the extreme in his own Northfield, Ill. home, which features commercial curtain-wall glass around the entire building.The walls are constructed from two argon-filled glass panes covered with what’s called low-emissivity, or “low-e,” metallic coating to block heat flow through the window, keeping the home cooler in the summer and warmer in winter.

With little traditional wall space, art is suspended in front of windows from a floor-to-ceiling, museum-type wire hanging system, Mr. Roszak says. For privacy, he planted trees around his one-acre property and installed $60,000 worth of electronically operated blinds.

One low point of glass-house design: The day his 8-year-old son spied a dead bird that had hit home’s glass siding, likely mistaking the trees’ reflection for safe habitat. “He said, ‘Daddy, I don’t think that bird is sleeping, I think it’s broken,’” Mr. Roszak says.

Glass homeowners must be mindful of clutter, since the view goes both ways. When Beata and Brad Peters built their 3,900-square-foot brick home in Hawthorn Woods, Ill., they incorporated large panels of glass symmetrically throughout. While most windows have wood blinds, the family tends to leave them open for aesthetics.

“I don’t put a lot of stuff in front of the windows,” Ms. Peters says. In the kitchen, appliances like toasters get packed along a wall with no glass.

Window-treatment companies are pushing to make shade operation less of a chore. Rotterdam-based Hunter Douglas this spring added a “Solar Energy Sensor” that raises and lowers blinds based on the amount of sun detected. Despite the slump in the housing market, the company’s North American sales rose almost 5% last year. An electronically controlled Lutron shade sells for about $900 more than manual ones and can be controlled via remote control or an app for Apple Inc. or Android devices.

Some glass companies now make windows that reduce the need for blinds altogether. One is Sage Electrochromics Inc. of Faribault, Minn., whose product consists of clear panes that morph to a grayish-blue tint when a user flips a switch to send a low-voltage current across the window. The tint reduces glare and heat but not visibility. Sage began selling the glass for residential applications around 2005, though they are typically found in high-end homes due to cost. An installed window costs between one-and-a-half to two times as much as one with typical low-e glass.

“If you’re on the West Coast facing the ocean when the sun is beating on the glass, what people do is pull their blinds and shades to block the glare,” says Helen Sanders, Sage’s vice president of technical business development. “What that means is you’ve just lost your view you paid a huge amount of money for.”

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Joel Schumacher Lists California Estate for $9.5 Million

 

Filmmaker Joel Schumacher has listed his Carpinteria, Calif., home for $9.5 million. Candace Jackson has details on The News Hub. Photo: Jim Bartsch.

Filmmaker Joel Schumacher has listed his 7-acre Carpinteria, Calif., estate for $9.5 million.

Photos

Jim BartschFilmmaker Joel Schumacher has listed his 7-acre Carpinteria, Calif., estate for $9.5 million.

Just outside of Santa Barbara, the compound was built by Mr. Schumacher on four separate parcels and includes a 6,500-square-foot main house with three bedrooms. Built in 2000, it has both mountain and ocean views and was built in a modern-rustic style with reclaimed barn wood. The home’s large living room has vaulted ceilings, two fireplaces and a loft currently configured as an office. A rotunda-shaped dining room has large windows overlooking a swimming pool. The master suite has a fireplace and a terrace.

The property also includes a guesthouse and a home for a property manager, each of which has two bedrooms and two bathrooms, and a pool house.

Known for such movies as “Batman Forever” and “A Time to Kill,” Mr. Schumacher is selling because he’s no longer using the property as much as he used to, according to a listing agent.

Rebecca Riskin & Associates is handling the listing.

A Miami, Fla., home has re-listed for $19 million, up from an original list price of $16.5 million. The seller is Dean Ziff, a private investor whose family founded and owned SunglassHut retail stores. Candace Jackson has details on The News Hub. Photo: Sotheby’s International Realty.

Miami Home Relists and Ups Its Price by 15% to $19 Million

A Miami home has relisted for $19 million, up from an original list price of $16.5 million. The seller is Dean Ziff, a private investor whose family founded and owned Sunglass Hut retail stores.

Built in 1990, the home is on 2½ acres of waterfront along Biscayne Bay. Located in a neighborhood with 24-hour security, the property is surrounded by tropical landscaping. The 14,400-square-foot main house, with Colonial Colombian architectural influences, has eight bedrooms and 10 bathrooms. The home is built around a central atrium, and includes a large master suite and a second-story loggia overlooking the water.

Outside, there’s a swimming pool with an island in the middle and a tennis court. There are also two one-bedroom casitas and a guesthouse with its own kitchen and living room.

The home’s listing agent, Mayi de la Vega of Sotheby’s International Realty, says the listing price was raised because home underwent restorations and updates when it was taken off the market. She shares the listing with Jorge Uribe, also of Sotheby’s.

A Southampton, N.Y. home has listed for $30 million. On more than five acres, the property is directly on the beach with about 200 feet of oceanfront. It includes a two-story, 5,000-square-foot contemporary home with five bedrooms and six bathrooms. Candace Jackson has details on The News Hub. Photo: Philip M. Stamm.

A Home in the Hamptons Lists for $30 Million

A Southampton, N.Y., home has listed for $30 million.

On more than 5 acres, the property is directly on the beach with about 200 feet of oceanfront. It includes a two-story, 5,000-square-foot contemporary home with five bedrooms and six bathrooms. The two-story home has two kitchens, one on each level. There’s a swimming pool surrounded by a glass atrium. It also has a gated entry and a tennis court.

Philip Stamm, an attorney for the owner, whom he described as an 83-year-old relative, says the owner is selling because he has had the property for more than 25 years and is looking to move on. Mr. Stamm is handling the listing; Ryan Podskoch and Matt Podskoch of Global Real Estate Network are also marketing the property.

—Candace Jackson—Email: privateproperties@wsj.com

A version of this article appeared July 27, 2012, on page D8 in the U.S. edition of The Wall Street Journal, with the headline: Private Properties.

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The Top 5 Things Buyers Love

The Top 5 Things Buyers Love

This week’s blogs are chock-full of ways to translate what buyers love into strategies for selling your home this spring. 
Here are the top five things potential buyers want in a brand-new house, according to a recent survey by trade publisher Hanley Wood:
  • Everything is new
  • Less maintenance
  • More energy-efficient
  • Opportunity to customize
  • Contemporary floor plan

And here are the top five things potential buyers like about existing homes:

  • More affordable
  • Established community
  • Opportunity to remodel
  • Character
  • Better neighborhood

Now you know what to emphasize in your listing, whether you are selling a new house or an existing house.

Image courtesy of Morguefile contributor Taliesin

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Rosenthal Wine Estate in Malibu Is Listed for $59.5 Million

 

A 235-acre Malibu, Calif. wine estate has listed for $59.5 million. Candace Jackson has details on Lunch Break. (Photo: Simon Berlyn)

A 235-acre Malibu, Calif., wine estate has listed for $59.5 million. The seller is George I. Rosenthal, the chairman of Raleigh Enterprise, which owns and operates commercial real estate, hotels, and movie and TV studio complexes.

Mr. Rosenthal assembled the Rosenthal Wine Estate beginning in 1977. The property includes a 12,000-square-foot hacienda-style main residence with two swimming pools. There are also horse stables and two guesthouses, including one with an additional pool.

Photos: Private Properties

Nick SpringettA 235-acre Malibu, Calif., wine estate has listed for $59.5 million. The main house has two swimming pools.

The property includes 25 acres of hillside vineyards as well as a wine-tasting room, banquet room and office. The home’s furnishings are included in the purchase price.

“It’s been a great joy in my life but it’s time to take on other things,” says Mr. Rosenthal. His 90-acre Aspen, Colo., property, known as Jigsaw Ranch, is also on the market in two separate parcels, one asking $36 million and the other $22 million.

Irene Dazzan-Palmer and Sandro Dazzan of Coldwell Banker Previews International have the Malibu listing. Joshua Saslove of Joshua & Co. has the Aspen listings.

Former Congressman William Stuckey has listed his Washington, D.C. home for $6.25 million. Candace Jackson has details The News Hub. (Photo: Tom Schweda/Matt and Ryan Podskoch Global Real Estate Network)

Williamson Stuckey Asks $6.25 Million for Washington, D.C., Home

Former Rep. Williamson Stuckey and his wife, Ethelynn, have listed their Washington, D.C., home for $6.25 million.

Located on an acre in the Spring Valley neighborhood, the 8,000-square-foot house has six bedrooms and seven bathrooms. The 1920s-era home has a stone exterior and a slate roof, and there are extensive gardens. Inside, there’s a large dining room, a sunroom and a library. The home was extensively renovated and updated in 2006, though the original windows and exterior features were kept intact.

Mr. Stuckey, who is the chairman of Stuckey’s, a large chain of highway rest stops, purchased the home with his wife 45 years ago from then-Commerce Secretary John T. Connor. According to Mrs. Stuckey, Mr. Connor told Mr. Stuckey about the home over dinner at the White House and he decided then to buy it. They paid about $180,000 for it, says Mrs. Stuckey.

Mrs. Stuckey says they are selling because they plan to return to Georgia, where they are from. “I really have a lot of my heart in the house and the garden,” she said. Cathie Gill of Cathie Gill Inc. Realtors has the listing.

An Evergreen, Colo. home has listed for $18.95 million. Candace Jackson has details on The News Hub. (Photo: Cathie Gill, Inc./HomeVisit)

Home on 160 Acres Near Denver Is Listed for $18.95 Million

An Evergreen, Colo., home has listed for $18.95 million.

The property, about 40 minutes from downtown Denver, includes 160 acres on five separate parcels adjacent to a national forest. It includes a 9,500-square-foot stone and stucco main house, a 3,000-square-foot caretaker’s residence and two barns. The main house has a terrace along the back with mountain views.

The seller is Robert Truscheit, the owner of a private investment firm, who is based in Washington state. Mr. Truscheit assembled the property in 2004 and built the home in 2009. “Admittedly, it’s a high price,” says Mr. Truscheit. “The right person has to come along who wants the privacy.” Matt Podskoch and Ryan Podskoch of Global Real Estate Network have the listing.

—Candace Jackson—Email: privateproperties@wsj.com.

Corrections & Amplifications
Former Rep. Williamson Stuckey’s first name was incorrectly given as William in an earlier version of this article.

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FHA’s Mortgage Delinquencies Soar

Closer to a bailout? FHA’s mortgage delinquencies soar

By Tami Luhby @CNNMoney July 9, 2012: 12:38 PM ET

Delinquencies and foreclosures of FHA-backed mortgages are soaring, putting further strain on the housing agency's finances and making a taxpayer bailout more likely.Delinquencies and foreclosures of FHA-backed mortgages are soaring, putting further strain on the housing agency’s finances and making a taxpayer bailout more likely.

NEW YORK (CNNMoney) — The mortgage market appears to finally be stabilizing — as long as you ignore loans backed by the Federal Housing Administration.

Increasingly, FHA-insured loans are falling into foreclosure or serious delinquency, moving in the opposite direction of loans guaranteed by Fannie Mae and Freddie Mac or those held by banks, which are all showing signs of improvement.

And taxpayers could ultimately be on the hook for FHA’s growing number of troubled mortgages. The agency’s finances are already on shaky ground, and additional losses from loans going sour could prompt the need for a federal bailout, experts said.

“We can’t escape this one,” said Joseph Gyourko, a real estate professor at the University of Pennsylvania’s Wharton School. “This is an arm of the U.S. government.”

The share of government-guaranteed loans, a majority of which are backed by FHA, that were 90 days or more delinquent soared nearly 27% during the year ending March 31. Foreclosures jumped nearly 17%, according to a report published recently by federal regulators.

At the same time, bank loans saw a dramatic improvement, with delinquencies shrinking by 39% and foreclosures declining by nearly 10%. Fannie and Freddie’s portfolio also improved as delinquencies dropped by nearly 15% and foreclosures slid by more than 6%, the quarterly report issued by the Office of the Comptroller of the Currency said.

FHA has also had a tougher time successfully modifying loans. More than 48% of government-guaranteed mortgages re-defaulted 12 months after modification, compared to 36.2% of loans overall, the report said.

FHA’s risky borrowers: FHA doesn’t make loans, but it backstops lenders if borrowers stop paying. With this guarantee in place, banks are more likely to offer mortgages to borrowers with lower credit scores or incomes.

FHA-backed loans made up more than 29% of the market for home purchases in the first quarter of 2012, according to Inside Mortgage Finance, an industry publication.

Housing experts have been warning for years that many FHA-insured loans are not sustainable, especially in these troubled times. That’s particularly concerning because FHA’s share of the market has swelled in recent years as lenders pulled back on providing mortgages that weren’t backed by the government.

One of the main critiques of FHA loans is that they require very low downpayments — a minimum of 3.5%. In an environment where home prices are declining, borrowers can quickly slip underwater and owe more than their property is worth.

“These are very risky loans,” said Ed Pinto, resident fellow at the American Enterprise Institute, a conservative think tank. And loans made in the past three years are “moving into the beginning of the peak delinquency period and they are very big books of business.”

Unless the economy improves significantly over the next few years, FHA will experience even more delinquencies, said Guy Cecala, publisher of Inside Mortgage Finance.

Little room for failure: The dramatic jump in delinquencies comes despite the agency’s efforts to improve the quality of the loans it insures.

Over the past several years, soaring defaults have been eating away atFHA’s emergency reserves, which cover losses on the mortgages it insures. In fiscal 2009, the reserve fund dropped to 0.53% of FHA’s insurance guarantees, well below the 2% ratio mandated by Congress. By late last year, it had fallen to 0.24%.

FHA pledged to shore up its standards and its finances in 2009. The agency has since increased its insurance premiumsestablished minimum credit scores for borrowers, required larger downpayments from those with credit scores below 580 and banned sellers from assisting borrowers with the downpayment. It also created an office of risk management and cracked down on lenders with questionable underwriting processes.

Despite the emergency fund’s diminishing reserves, FHA maintains that its efforts are working. The loans insured starting in 2009 are much higher quality and should lower delinquency levels over time, an FHA official said.

“We expect the new books will continue with their better performance, primarily because of the steps that were put in place,” he said. “And we are benefiting from having more high-credit borrowers.”

Still, FHA watchers warn that the agency doesn’t have much of a cushion against these rising delinquencies and foreclosures. And if the losses grow too great, the agency could need a taxpayer-funded bailout.

The FHA says that its reserves should be restored by 2014 barring a second recession, but outside experts aren’t so sure.

“They are doing very badly … there’s no two ways about it,” said Andrew Caplin, a New York University economics professor who has studied the agency. “Over the next five years, there won’t be enough of an economic recovery to fix FHA’s finances. Not a chance.” To top of page

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How the West is winning on home prices: Clear Capital

REAL ESTATE
How the West is winning on home prices: Clear Capital
By Jessica Huseman

• July 10, 2012 • 8:14am

Quarterly home values in June improved nationally, continuing a positive trend from the spring. National prices rebounded with quarterly and yearly gains of 1.7%, according to Clear Capital, which forecast continued growth through the remainder of the year.

National home prices picked up notable momentum over last month’s marginal gains of 0.1%, the Trukee, Calif.-based data and valuation company said. It predicted additional growth of 2.5% forecasted through the end of the year.

“June home price trends provided further evidence that housing has turned the corner, with the momentum of the recovery picking up speed,” said  Alex Villacorta, director of research and analytics at Clear Capital.

Clear Capital uses a rolling quarter measure, which compares the most recent four months to the previous three months. The rolling quarters have no fixed start date and can be used to generate indices as data flows in to reduce multimonth lag time.

The West came in with the highest gains, showing quarter-over-quarter growth of 3.5% — an increase of 0.8% over May and annual price gains of 4.1%. Clear Capital expects the trend to continue through 2012 with an additional 5.75% growth over the next two quarters.

While the recovery generally began in the lower-priced segments, growth spread across all price tiers in the West, which the report calls an “important step in the progression of this recovery.”

In the quarter, low-tier gains in the West hit 3.6% (sales less than $140,000), mid-tier gains reached 3.1% (homes selling between $140,000 and $347,000) and top-tier gains climbed to 3.2%. This led the West to push ahead of the South, the next closest region, by 2%.

The South continued to grow in June, pushing up 1.5% over the rolling quarter, slightly above May’s 1.2% gain.

The Midwest saw the largest increase over last month in quarterly home prices, rising 1.2% compared to May’s quarterly losses of 2%. It was the only region not posting year-over-year gains, with a loss of 0.6%.

Home prices in the Northeast rose 2.3% over the last year. The South experienced a smaller price hike of 1.5% over the last year and during the quarter, an improvement over the annual growth of 0.9% shown in last month’s report.

The top 50 metro markets also posted gains in June, with the large majority of markets seeing quarterly gains and only seven seeing slides. Of those markets that posted losses, only four saw declines larger than 1%.

The report indicates more good news out of Phoenix, which has been showing consistent signs of strength for the past 10 months. Clear Capital reported quarterly growth of 8.7% in Phoenix with annual gains of 20.4%.

Seattle, where prices rose 8.4% over the quarter, could see prices rise 14.4% annually once final numbers of 2012 are in, while Phoenix prices could rise by 10.4% annually.

Atlanta is not positioned to do as well. It sustained the largest declines of all the MSAs. However, the anticipated losses of 3.2% seem mild in comparison to Atlanta’s total declines of 53.5% from peak prices in 2006.

jhuseman@housingwire.com
@JessicaHuseman

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Home sale contracts declined last month in California

home sales

A worker tapes a window ledge while working on a home in San Diego’s San Elijo Hills community. (Sam Hodgson / Bloomberg / May 22, 2012)

By Alejandro LazoMay 22, 2012, 10:47 a.m.

The number of contracts signed for new home purchases in the Golden State dropped nearly 8% last month as the inventory of homes for sale remained tight, according to a real estate group.

The California Assn. of Real Estate’s home sale index of pending sales declined 7.9% from March, though that was up 11.9% from April 2011. The index is based on the number of contracts signed by potential buyers and is one indicator of where the housing market is headed.

“Inventory constraints could be a contributing factor to lower pending sales,” said LeFrancis Arnold, president of the real estate group. “The tight inventory we’ve been experiencing in the distressed market over the past several months is now spreading.”

Sales overall in the last few months have been better than last year, but real estate agents have complained that they might be better if there were more properties on the market. Investors have snapped up properties vigorously in recent months. Non-distressed sales are also becoming increasingly competitive, real estate agents said.

A separate report by the National Assn. of Realtors said that the number of closed sales nationally were up 3.4% from March and were up 10% from the same month last year.

Locals go 4 for 4 at Masters

Locals go 4 for 4 at Masters

Track and Field: Kieffer-Wright, Ezold, Crear and De La Torre all move on.

La Salle's Daniel De La Torre qualified for the CIF State Meet in the the 1,600- and 3,200-meter runs.Friday.La Salle’s Daniel De La Torre qualified for the CIF State Meet in the the 1,600- and 3,200-meter runs.Friday. (Raul Roa/Staff Photographer / May 25, 2012)
By Andrew J. Campa, andrew.campa@latimes.comMay 25, 2012| 10:55 p.m.

NORWALK — Perhaps the qualifying standards were too simple, or maybe the Pasadena area’s track and field athletes are hitting their strides at the right moment.

Whatever the reason, there was little doubt Friday evening’s CIF Southern Section Masters Meet was a wild success as all four local competitors — La Salle High’s Daniel De La Torre, Maranatha’s Ebony Crear, San Marino’s Kyle Ezold and South Pasadena’s Claire Kieffer-Wright – qualified to the following weekend’s CIF-State Meet in Clovis.

The ever-hungry De La Torre turned in the most impressive effort as he was the only area athlete to qualify in two events: the 1,600- and 3,200-meter runs.

“I know I should be happy, but I really thought I’d do better than my times today,” De La Torre said. “I guess the goal was to advance and I did that. The best thing is that I have one more week to run my best race.”

Like every athlete who competed Friday, De La Torre needed to either finish in the top five in his respective event or hit a state at-large qualifying mark.

In the 3,200, De La Torre moved from fifth after four laps to third with a lap remaining before settling for fourth in 9 minutes, 06.13 seconds.

De La Torre began the day by racing out to third place through the first three laps of the 1,600 before tiring and finishing sixth with a qualifying mark of 4:12.84.

“My muscles were tightening up and I just didn’t feel my strongest today,” De La Torre said, “but I guess it could have been worse.”

Like De La Torre, Crear also hoped to advance in two events, but wasn’t as fortunate, as the sophomore qualified in the 100-meter dash, but just missed out in the 300 hurdles.

Crear, who was sixth after 40 meters, rallied into fourth (14.09) in the 100 hurdles, but fell from fifth to seventh over the final 20 meters of the 300 hurdles as her time of 44.29 missed the at-large mark of 43.75.

“I’m a little disappointed, but this is all a learning experience,” Crear said. “My goal was to make it to state and I did that, so that’s cool.”

San Marino multi-sport athlete Ezold entered Friday’s 400-meter dash having finished second in the Division III championships last weekend and seventh overall with a mark of 48.12, well ahead of the at-large time of 48.65.

Yet, Ezold needed no at-large mark, as he finished fourth in 48.60.

“I worked on my form this week and on finishing,” Ezold said. “I kept a faster pace than last week and finished hard.”

As for the area’s close call, that came from Kieffer-Wright in the high jump.

The sophomore needed two turns to hit 5 feet 3 inches before eventually landing on the state qualifying mark of 5-5 on her third try at that height, which tied her for seventh.

“I’ve never really jumped when it was this windy before, but I know it affected everyone,” Kieffer-Wright said. “When it came around to 5-5 and I missed on my first two attempts, I can’t lie, I was really nervous. I was telling myself, ‘This is it.’“

Friday also marked the end of the road for two Pasadena residents as Loyola 3,200-meter runner Charles Marquardt (ninth, 9:20.38) and Cubs’ junior Josh Lewis, who finished seventh in the 800 (1:54.37), did not advance to state.