Archives for August 2011

Real Estate Week In Review

For the week of Aug 22, 2011 — Vol. 9, Issue 34

In This Issue…
Last Week in Review: What does the wild market mean to home loan rates?Forecast for the Week : The markets will be waiting with bated breath. Read why!

View : How do you maintain focus on your work? Two tips to achieve success!

Last Week in Review
“It’s a small world after all.”  The wild ride over the last few weeks continued again last week, as the US markets danced to the tune of the European debt and economic crisis. Here’s what it means to home loan rates here in the US.

Even inflation hasn’t stopped Bonds.  Last week, consumer inflation and producer inflation came in above expectations. Remember inflation is the archenemy of Bonds and home loan rates, so hotter inflation would normally negatively impact Bonds and home loan rates. But even last week’s inflation news didn’t impact Bonds.

Seeing Bonds dismiss that inflation news indicates that the Bond market senses that the economy (which is already hardly growing) is in a very vulnerable position with things in Europe uncertain and gloomy at best. And when the situation deteriorates further, it may push many world economies into a recession.

It’s all about Europe.   US Bonds – including Mortgage Bonds – have been seen by the markets as a safe haven bid on existing and growing fears that Europe’s debt crisis is coming to a head…and global growth, which is already anemic, is being threatened further. Not helping the situation was the news last week that there is no concrete solution to the European debt problems. Last week, French President Nicolas Sarkozy and German Chancellor Angela Merkel met. However, following the meeting, Sarkozy stated that “EuroBonds can be imagined one day, but at the END of the European integration process, not at the BEGINNING.”

That was a pretty clear message to the financial markets that the creation of a EuroBond is not within the remote daydreams of Germany, which is the strongest nation in Europe and who will determine whether it gets created or not. So let’s be clear, the German taxpayers want no part of a EuroBond, since it would use the surplus that Germany has worked hard to create to fund the poor habits and debt of weaker and less responsible member States.

  The bottom line is that the fear and uncertainty right now is pretty overwhelming, which is supporting Bonds and home loan rates. But Bonds are at “nose bleed levels” and sentiment can change very quickly. If you or someone you know has been considering refinancing or purchasing a home this is an ideal time to look at their unique situation. It only takes a few minutes to look at the options that are available right now.

Forecast for the Week
This week’s economic calendar is light but the impact could be big:

  • New Home Sales will be released on Tuesday. This report comes after a drop in Existing Home Sales, Housing Starts and Building Permits. It would be nice to see some improvement – but the market expectation isn’t high.
  • Gross Domestic Product for the 2nd quarter will be released on Friday, and investors will be waiting with bated breath for signs of weakening in the US economy. The initial read for Q2 came in low. If the second read is weak, Stock markets could move a leg lower and give Bonds a boost. But the report isn’t released until Friday, so Stocks and Bonds will fight for investing dollars throughout the week.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.

As you can see in the chart below, Bonds and Home loan rates improved last week but tapered off a bit on Friday. Stock markets fell once again last week on fears of a double-dip recession. That coupled with a plunge in the Philly Fed Index along with weak housing numbers fueled a rally in the Bond markets that saw Mortgage Bonds hit fresh 2011 highs before giving up some of those gains on Friday.

Overall, however, home loan rates are still at some of the most attractive levels ever seen – making now a great time to consider a refinance or home purchase.

———————–
Chart: Fannie Mae 3.5% Mortgage Bond (Friday Aug 19, 2011)
Japanese Candlestick Chart
The Mortgage Market Guide View…
Focus to Finish: A Mindset
By Jason W. Womack, MEd, MAWhen it’s time to sit down and work on your work, how do you hold your focus?

Over the past 5 months I’ve been working on the book. In that time, I’ve tried it ALL! I’ve planned extra days in hotel rooms, blocked time on the calendar, hired editors, I’ve even kept the calendar completely clear for one 3-day stretch, all to buy a little extra time to write.

Here’s what I’ve learned (or deepened my understanding of) over the past several months:

1. I’ve got to have a solid “start point.” When I sit down to write, it helps a TON if I’ve already decided WHAT I’m going to draft in that session. Now, EVERY time I do this, the topic is expanded on, but…I don’t waste any time getting started. I sit down. I write.

2. I (and this is me, what about you?) need to have some finish line in mind. And, it can’t be time. I don’t know why, but saying to myself, “I’m going to write until 3:45pm” just doesn’t get me going as much as, “I’ll take my next break after I’ve written 3,000 words.”

A starting line. A finish line. Maybe that’s why I like triathlons so much!

 Jason W. Womack is an author and advisor, and founder of The Womack Company, a productivity-training firm based in Ojai, California. Jason’s next book will be published in January 2012. Pre-order copies today at  http://www.amazon.com/Your-Best-Just-Got-Better/dp/1118121988/ref=sr_1_1?ie=UTF8&qid=1313453329&sr=8-1  .

————————–

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

Economic Calendar for the Week of August 22 – August 26

Date ET Economic Report For Estimate Actual Prior Impact
Tue. August 23 10:00 New Home Sales Jul 310K 312K Moderate
Wed. August 24 08:30 Durable Goods Orders Jul 2.0% -1.9% Moderate
Thu. August 25 08:30 Jobless Claims (Initial) 8/20 400K 408K Moderate
Fri. August 26 08:30 Gross Domestic Product (GDP) Q2 1.1% 1.3% Moderate
Fri. August 26 08:30 GDP Chain Deflator Q2 2.3% 2.3% Moderate
Fri. August 26 10:00 Consumer Sentiment Index (UoM) Aug 55.4 54.9 Moderate
The material contained in this newsletter is provided by a third party to real estate, financial services and other professionals only for their use and the use of their clients. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is without errors.
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Costa Mesa- Ready for some football?

Costa Mesa Pop Warner kicks off 2011 season with ceremonies,
scrimmages.

 Costa Mesa Mayor Gary Monahan speaks
during Costa Mesa Pop Warner opening day ceremonies at Jim Scott Stadium on
Saturday. (KEVIN CHANG, Daily Pilot / August 20, 2011)

August 20,
2011 | 9:26
p.m.

COSTA MESA — On a sunny Saturday with temperatures in the low 70s, a nice
breeze rustled through Jim Scott Stadium at just after noon.

Costa Mesa Mayor Gary Monahan wasn’t kidding when he told the crowd, “What a

From left- Sotomayer, Letterman, and Galitski

 

wonderful day for football, huh?”

A few seconds later, Monahan said something else that made the crowd applaud
even louder. He announced that the 2011 Costa Mesa Pop Warner season was
officially open.

Everything appeared to be in place on opening day. There were more than 200
Mesa Eagles on eight teams, from Flag all the way up to Midget, ready to get
their season going with scrimmages Saturday afternoon. There were 40 Pop Warner
cheerleaders on three squads. The Costa Mesa High band and Estancia High
cheerleaders got everyone in the mood, as did drummer Daniel Castro, an Estancia
High student, on the field.

School board members and city leaders were all present. The one man who
wasn’t was the one who the stadium was named after, Jim Scott. This is the first
Pop Warner season since Scott died in May at 85. He was instrumental in bringing
the stadium, which was built in 2008, to Estancia, as well as an Olympic-sized
pool at Costa Mesa High.

“Everybody wants to come play us,” said Ed Baume, Costa Mesa Pop Warner’s
director of football. “They want to come and play on this field. Jim Scott would
be proud to know that what his dream was is a reality. We wouldn’t have it if it
wasn’t for him. They talked about it ever since I’ve lived here, about building
a second stadium. It’s a good facility. Even the referees say, ‘Yeah, we want to
go to Costa Mesa.’ ”

Baume pointed to the letters that spell “Jim Scott Stadium” above the locker
rooms.

“Normally they don’t name [a stadium] for somebody who’s alive,” he said.
“They made an exception for Jim.”

Saturday was also a big day for Baume, 83, who said he has been involved with
Costa Mesa Pop Warner since 1965. He was one of three people who received
special recognition from league President Chris Cox during the opening day
ceremonies. The others were Costa Mesa Pop Warner cheer advisor and Estancia
High cheer coach Yumi Patterson, as well as Costa Mesa City Council member and
former CMPW President Steve Mensinger.

Baume kept his speech to the crowd, which gave him a standing ovation, short
and sweet.

“I have been around a while, and I hope to be around even longer,” he said.
“In 2013, Costa Mesa Pop Warner will be 50 years old, and the very first team we
ever had was the Costa Mesa Pee Wee Colts. I hope that in 2013 we’ll be able to
restore the Costa Mesa Pee Wee Colts to the standing they deserve. I look
forward to that day.”

As part of his duties, Baume set up Saturday’s scrimmages, mostly against
teams from Yorba Linda and the Palos Verdes area. The Flag team of 5- and
6-year-olds was first up in the stadium at 1 p.m.

The real games begin next weekend for Costa Mesa Pop Warner. The
organization’s home stadium bears the name of someone gone, but definitely not
forgotten.

“I think that kind of leadership, that boldness of Jim Scott has helped all
of us to push and get involved,” Costa Mesa Chief Executive Tom Hatch said.
“That leadership is going to be guiding us for many years.”

Cox is just in his first year leading the Eagles as president. He said he
also saw opening day as an event that really brought the community together. So
did Newport-Mesa Unified School District school board member Judy Franco.

“[Costa Mesa Pop Warner] is a magnificent program,” Franco said. ” It teaches
so much in the way of values and teamwork. This is really what life is about.”

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Market Trends For Costa Mesa Area

Here is the latest edition of the Market Trends for Costa Mesa And Surronding Communities.

In it you will find information on:

Average Listing Price One way to understand where the market is heading is by examining whether home sellers are increasing what they want for their home.
Click here for more

Average Price Reduction To understand the trends in today’s market, we need to look at whether home sellers had to come down a bit to get the home sold.
Click here for more

Days on Market Time on Market will give a good indication of how fast or slow properties are selling, and when you would need to start if you are thinking of selling or buying.
Click here for more

 

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Real Estate Week In Review

In This Issue…

Last Week in Review: Volatility was the name of the game, with steep selloffs in Stocks and whipsaw trading. How did Bonds and home loan rates fare?Forecast for the Week: With housing news, manufacturing news, and inflation news, plus the continued credit crisis in Europe, more volatility could be in store.

View: Still trying to understand the implications of Standard & Poor’s downgrade of the United States’ credit rating? Check out the key points below.

Last Week in Review
“Where do we go from here?”That question from Alicia Keys’ song was one many traders were probably asking, after a week where we saw a massive and historic selloff in Stocks and rallies in safe-haven instruments like Treasuries and Gold. What happened and what does all of this mean for Bonds and home loan rates? Read on for details.

Standard and Poor’s downgrade of the United States’ credit rating from AAA to AA+ late Friday, August 5th led to an especially volatile week, with the Dow Jones Industrial Average falling over 600 points and the S&P 500 Index experiencing its worst day since December 1, 2008-and that was just on Monday! The extreme volatility continued through the week, including Tuesday after the Fed released their Policy Statement, which was rather downbeat on the economy. In fact, Fed Chairman Ben Bernanke said, “Economic growth so far this year has been considerably slower than the Committee had expected.”

So where does our economy go from here?

The incoming economic data will be under a microscope, as global markets try to decipher if the US (and the world) is slipping back into a recession, or just experiencing a slow patch. If economic reports here in the US show even modest strength and an improvement from the recent weak news, Stocks could retrace some lost ground, which would come at the expense of Bonds and home loan rates. We saw some of this happen late last week, after Initial Jobless Claims fell below 400,000 for the first time in weeks and Retail Sales for July had their biggest increase in four months.

That being said, the current and ongoing concerns out of Europe should continue to provide a safe haven bid into the US Bond market… and this will help Bonds and home loan rates. But as you can see, with so many if’s, about the only thing we can be sure of is more volatility.

Wherever we go from here, the key takeaway is that RIGHT NOW, home loan rates remain near some of the best levels we’ve ever seen. If you’ve been thinking about buying or refinancing a home, give me a call or send me an email to learn how you can take advantage of this situation. Or forward this newsletter on to someone you know who may benefit.

Forecast for the Week
A slew of economic reports this week could give us a hint as to where we’re heading. Look for:

  • Housing news with July’s Housing Starts and Building Permits Report on Tuesday and July’sExisting Home Sales Report on Thursday.
  • Inflation news with the Producer Price Index, which measures inflation at the wholesale level, on Wednesday, followed by Thursday’s Consumer Price Index. Inflation readings are important to watch right now, as a deflationary or low inflation environment will support low home loan rates.
  • Manufacturing news with Thursday’s Philadelphia Fed Index.
  • Thursday also brings another weekly Initial and Continuing Jobless Claims Report. Last week’s Initial Claims came in at 395,000, below the crucial 400,000 level which signals real improvement in the labor market.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.

As you can see in the chart below, Bonds and home loan rates reached some of their best levels last week, and still remain at great levels even with all the volatility. Let me know if you have any questions at all about whether you can benefit from this situation.

———————–
Chart: Fannie Mae 3.5% Mortgage Bond (Friday Aug 12, 2011)
Japanese Candlestick Chart
The Mortgage Market Guide View…
The Downgrade and Home Loan RatesStandard & Poor’s (S&P) downgrade of the United States’ credit rating from AAA to AA+ was historic-and Stocks have certainly been volatile since the downgrade.

But US Bonds and home loan rates haven’t been crushed by the news. If you’ve heard questions about the downgrade and home loan rates, keep the following points in mind:

  • Despite the downgrade, there are a number of factors that bode well for US Bonds and home loan rates.
  • S&P is currently the only credit rating agency that has downgraded the United States.
  • Both credit rating agencies Moody’s and Fitch have maintained the United States’ AAA rating.
  • More importantly, the ongoing credit crisis in Greece and other parts of Europe means that US Bonds are still considered one of the safest places to invest.

The bottom line is that home loan rates remain near their historic best levels, but about the only thing that is certain in the markets right now is the volatility. If you know someone who has been thinking about buying a home or refinancing, call or email today to get started.

————————–

Economic Calendar for the Week of August 15-19, 2011

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

Economic Calendar for the Week of August 15 – August 19

Date ET Economic Report For Estimate Actual Prior Impact
Mon. August 15 08:30 Empire State Index Aug -0.4 -3.76 HIGH
Tue. August 16 08:30 Housing Starts Jul 608K 629K Moderate
Tue. August 16 08:30 Building Permits Jul NA 624K Moderate
Tue. August 16 09:15 Capacity Utilization Jul 77.0% 76.7% Moderate
Tue. August 16 09:15 Industrial Production Jul NA 0.2% Moderate
Wed. August 17 08:30 Core Producer Price Index (PPI) Jul 0.2% 0.4% Moderate
Wed. August 17 08:30 Producer Price Index (PPI) Jul NA -0.4% Moderate
Thu. August 18 08:30 Jobless Claims (Initial) 8/13 400K 305K Moderate
Thu. August 18 08:30 Consumer Price Index (CPI) Jul 0.2% -0.2% HIGH
Thu. August 18 08:30 Core Consumer Price Index (CPI) Jul 0.2% 0.3% HIGH
Thu. August 18 10:00 Existing Home Sales Jul 4.87M 4.77M Moderate
Thu. August 18 10:00 Philadelphia Fed Index Aug 1.0 3.20 HIGH
Thu. August 18 10:00 Index of Leading Econ Ind (LEI) Jul 0.2% 0.3% Low
The material contained in this newsletter is provided by a third party to real estate, financial services and other professionals only for their use and the use of their clients. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is without errors.
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Your Market Data for: Costa Mesa

Your Market Data for: Costa Mesa

August 2011

Your real estate information source.

Welcome to the latest issue of my newsletter!

As your Realtor and Broker, I strive to keep in touch with my clients and provide you with information that I hope you will find useful. This newsletter is an opportunity to let you know about the state of the market and current trends. It may even touch on ways that you could enhance your home’s value. I hope the market data and articles will help you with understanding real estate today and help you with your real estate decisions. If you have any questions, please do not hesitate to contact me.

Kurt Galitski

Costa Mesa Real Estate Sales Data

Average List Price in July

Single
Family Homes

$599,736

Condos/
Townhomes

$339,830

Multi-family

$788,633

August

While August can bring joy to
parents and sadness to kids as they get ready to return to school, it also is
the last full month of summer.

August was originally called Sextilis which is Latin for “sixth
month” (the first month in the Roman calendar is March) but was renamed
for Augustus Caesar in 8 BC. He chose this month not because it was his birth
month as was customary, but to mark the defeat of Cleopatra as this was her
birth month.

The birth flower for August is Poppy or Gladiolus. The modern birthstone is
Peridot (success, protection, dignity and fame) and the traditional birthstone
is Sardonyx (security and relaxation).

Costa Mesa Real Estate Sales Data

Recent Price Reductions in July

Single
Family Homes

5.2%

Condos/
Townhomes

6.0%

Multi-family

9.7%

Home Improvements and Which Ones to Do

Whether you plan to sell in the near future, or just want to improve the value of your home, here is one low cost improvement you should consider.

Refinish your hardwood floors. Scratched and worn hardwood floors detract from your home’s value and if left untended, you may need to replace
them at a huge cost. Paying a professional to refinish them is a good idea – going a little too far with the sander can leave permanent indentations on your
floors. Ask around for a reliable professional or check out a site like www.needcontractor.com. And while you are refinishing your floors, consider
staining them a different shade for a dramatic new look.

Costa Mesa Real Estate Sales Data

Current Average Days on Market in July

Single
Family Homes

117

Condos/
Townhomes

143

Multi-family

123

Keys for Selling When the Market is Slow

It’s a whole new world for home buyers. So, how do you make a smart purchase? You can find some excellent bargains but you still need to do some work.

Check out the Deed.

Don’t take the word of the Seller. They may be telling you what they were told. All sorts of legal issues and problems could
ensue should your deed not match the previous deeds. Make sure the property lines for the house are the same on the deed as they are physically. You don’t
want to find that the property had been subdivided and your driveway actually belongs to someone else and you have no access to your house.

Check the public records. Investigate anything that looks a little irregular or different from what you have been told. Make sure the deed includes everything
you thought you were getting.

Kurt Galitski

Cell: 714-957-6677

Tel: 877-957-6677

Kurt@KurtRealEstate.com

http://www.KurtRealEstate.com

 

Weichman Associates-Realtors

1525 Mesa Verde Drive East, Suite
111

COSTA MESA, CA, 92626

Data is deemed accurate but not
absolute, no warranty is given. If you are already working with a REALTOR© this
is not meant to be a solicitation.

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