Sacramento Median down 40% from peak
The Sacramento Area Realtors have the April numbers out
Apr 08 Median - 236.8K
Aug 05 Median - 392.7K
That is a 40% drop from the Aug 05 peak.
Brentwood The Poster Child For Housing Bust
The San Francisco Chronicle is reporting :
“This farming community on the eastern edge of the Bay Area absorbed an outsize portion of the region’s growth during the prolonged housing and development boom, adding 40,000 residents in the past 16 years as subdivisions and strip malls overtook agricultural land. It regularly ranked among the state’s fastest-growing cities. Now, Brentwood is suffering disproportionately from the bust.
Hundreds of families have lost their homes to foreclosure since the beginning of last year, and in a sign of more to come, at least 1 out of every 16 households has received default notices.
For the neighbors left behind, the dreams of the pretty, tight-knit community that lured many there in the first place have dissolved.”
HBB visited Brentwood in Dec 06 and documented the massive overbuilding in the area.
Recession threat makes many more cautious
The San Francisco Chronicle is Reporting :
“From Morgan Hill to Moraga, from Santa Rosa to Santa Cruz, Bay Area residents are tightening their belts. You might say it’s a move from shop till you drop to dropping the shopping. Dire reports of an economy on a downward spiral are prompting people from many walks of life to rethink spending plans, cut back on extravagances and set aside what they can in anticipation of harder times.
It’s all part of a nationwide consumer retrenchment that’s not only an effect of a listless economy, but also a major contributor to that weakness. The gathering pullback by consumers threatens to knock out the most important prop holding up the economy, across the region and across the nation.
Purchases of goods and services by ordinary Americans - everything from haircuts and soda to SUVs and HDTVs - represent roughly two-thirds of the nation’s economic activity. The question now is how far consumers will pare their spending and how much damage that might do to an economy already on its knees.”
Foreclosures leave renters in the lurch
The San Francisco Chronicle is reporting :
“As the mortgage crisis claims more homes - more than 11,000 Bay Area residences were repossessed by lenders last year - an increasing number of tenants are facing rapid evictions by banks eager to partially recoup their losses by selling the properties. In November, a Chronicle analysis of Bay Area foreclosures showed that about one-fifth had nonresident owners. Presumably many of those investor-owners rented out their properties to produce income.
Foreclosure-related evictions of renters show how fallout from the mortgage meltdown can spread even to people who don’t own houses.
Tenants’ rights in such situations are minimal. If they live in a city with rent control, they are covered by its eviction regulations. Hayward, where Diharce and Vasquez live, does not have rent control for single-family residences.
Otherwise, renters are subject to state law, which generally requires 30 days notice. A foreclosure usually invalidates an existing lease, legal experts said.”
AZ, NV And So Cal - Countrywide’s Bermuda Triangle
From Blown Mortgage (PDF File)
This is the market wise risk assessment by Countrywide.
Higher Risk -> Lower Risk
5 -> 4 -> 3 -> 2 -> 1
AZ Mohave Lake Havasu City-Kingman, AZ 5
AZ Maricopa Phoenix-Mesa-Scottsdale, AZ 5
AZ Pinal Phoenix-Mesa-Scottsdale, AZ 5
AZ Yavapai Prescott, AZ 5
CA Merced Merced, CA 5
CA Stanislaus Modesto, CA 5
CA Riverside Riverside-San Bernardino-Ontario, CA 5
CA San Bernardino Riverside-San Bernardino-Ontario, CA 5
CA Monterey Salinas, CA 5
CA San Joaquin Stockton, CA 5
FL Volusia Deltona-Daytona Beach-Ormond Beach, FL 5
FL Broward Fort Lauderdale-Pompano Beach-Deerfield Beach, FL 5
FL Miami-Dade Miami-Miami Beach-Kendall, FL 5
FL Collier Naples-Marco Island, FL 5
FL Charlotte Punta Gorda, FL 5
FL Manatee Sarasota-Bradenton-Venice, FL 5
FL Sarasota Sarasota-Bradenton-Venice, FL 5
MI Genesee Flint, MI 5
NV Carson City Carson City, NV 5
NV Clark Las Vegas-Paradise, NV 5
NV Storey Reno-Sparks, NV 5
NV Washoe Reno-Sparks, NV 5
HELOC On Hold
“Tens of thousands of homeowners with home equity lines of credit are getting a rude surprise: They’ve been told by their lender that they can no longer take money out on their credit lines because sinking home prices have put them “upside down” on their mortgages.
Countrywide Financial Corp. sent letters to 122,000 customers last week telling them they could no longer borrow against their credit lines because the total debt on the home exceeded the market value of the property. The lender says it is using computer modeling to determine which of its customers would have their cash spigot shut off.”
Tousa Files Bankruptcy
“Florida-based home builder TOUSA Inc TOUS.PK said it is filing for protection under Chapter 11, as part of a proposed restructuring, in the wake of the crumbling U.S. housing market.
The filing includes TOUSA Homes Inc, Newmark Homes LP and entities that represent all their brands — Engle Homes, Newmark Homes, Fedrick, Harris Estate Homes and Trophy Homes.”
First of the public builders in this cycle.
Expect to see many more this year and next.
Housing Fire Sale in Idaho
“CBH Homes Meridian sales center reported selling six homes in the first hour of its “Deal of a Lifetime” which started Friday morning and continues through this weekend.
Mega homebuilder Corey Barton hopes to push potential homebuyers off the fence by reducing prices on 200 Treasure Valley homes by up to $70,000.
Barton’s heavily advertised sale is the latest — and perhaps most visible — sign of the Treasure Valley’s struggling housing market. As in other markets nationwide, builders here are slashing prices and adding amenities to lure buyers.
If all 200 homes sell this weekend, Barton’s inventory of 470 unsold homes in Ada and Canyon counties would be cut by 43 percent before property tax bills go out in early November.
Not every sale home will be discounted $70,000. Barton declined to say where the discounted homes are, and he gave no details about how discounts will be meted out.
But he said lists will be available at CBH’s sales centers this weekend.”
Millenum Tower - Yet Another One…
This is the Millenium Tower on Fremont & Mission in San Francisco.
58 Stories of Luxury Condos, will be open for occupancy next year.
Making Way For Another Mega Project
This is the corner of 10th & Market in San Francisco on Aug 11. The previous structure has been demolished and the bulldozers are gone. The lot is now waiting for the giant cranes to arrive.
Here is the full scoop from SFCondo.org
“It will consist of two buildings sharing a common base and containing approximately 719 dwelling units, approximately 19,000 square feet of commercial space, and a garage with a capacity of up to 668 parking spaces (578 residential spaces and 90 commercial spaces), according to the Business Times.
The taller north tower, at the corner of Tenth and Market Streets, will be 35 stories and approximately 352 feet high with a 12-story, 123-foot-high base along Market Street. The shorter south tower, at the corner of Tenth and Jessie Streets, will be 19 stories and approximately 220 feet high. The two towers will be connected by a nine-story, 93-foot-high base running along Tenth Street. As there are few high-rise buildings nearby, views from 10th and Market should be fantastic.”
And this is what is expected to go up
Image courtesy of SFCondo.org