According to a recent article in the Union Tribune, Ben Bernanke of the Federal Reserve believes the economy will continue to inch forward in 2012, but it appears the economy is bumping along at a slower pace than expected.

Unemployment remains a large factor in the current state of our economy. The Bureau of Labor Statistics states that annual average unemployment rates in 2010 rose in 31 states and the District of Columbia, but declined in 18 and did not change in 1. Employment-population ratios decreased in 43 states and the District of Columbia, increased in 3 and were unchanged in 4. Source: http://www.bls.gov/lau/

On a statewide perspective, the seasonally adjusted unemployment rates for California hovered around 11.7% for May 2011.

Ben Bernanke states, "We do believe that growth is going to pick up going into 2012, but at a somewhat slower pace than what we had anticipated in April. We don't have a precise read on why this slower pace of growth is persisting". -Ben Bernanke

Read the entire report from the Federal Open Market Committee here.

One way to think about it is that maybe some of the head winds that have been concerning us, like, you know, weakness in the financial sector, problems in the housing sector, balance sheets and deleveraging issues, some of these head winds may be stronger or more persistent than we thought.

Source: Union Tribune, http://www.signonsandiego.com/news/2011/jun/22/quote-day-bernanke-economy/

For more real estate information on your neighborhood, contact us today for a complimentary market analysis. Stay connected with us on www.LakeHodgestoLakePowayHomes.com.

When it comes time for you to buy or sell a home, it's crucial that you make an educated decision based on solid data and the assistance of a trustworthy realtor who can guide you through the process.

According to the North San Diego County Association of REALTORS®, NSDCAR is dedicated to bringing you relevant information and statistics on the San Diego housing market through their monthly HomeDex^TM report.

NSDCAR's HomeDex^TM report focuses on providing you with the most up-to-date and detailed statistical data of local home sales, median home prices, median days-on market, affordability, and foreclosure data and includes a detailed zip code index. (NSDCAR HomeDex Report - May 2011)

Below is the May 2011 HomeDex^TM Report, which provides April 2011 housing statistics.

Inside this month's report:

The median price for all North County home sales - attached and detached - decreased from $393,500 in March 2011 to $380,000 in April 2011.

Detached homes in North County decreased slightly by 0.04 percent from $450,165 in March 2011 to $450,000 in April 2011.  Year-over median single-family detached homes in North San Diego County declined 5.16 percent, from $474,500 in April 2010, making three months of year-over declines following an 18-month trend of increases in median price (with the exception of August 2010).

The number of SFD listings (active and contingent) increased 3.03 percent from March 2011 to April 2011. Year-over listings increased by 12.04 percent from April 2010.

The number of sold North San Diego County SFD units increased 3.74 percent from March 2011 to April 2011, following a 50 percent monthly jump in March 2011.

Median days-on-market for single-family detached homes in North County decreased from 58 days in March 2011 to 50 days in April 2011.

(NSDCAR HomeDex Report - May 2011)

According to the HomeDex report data, it appears the housing market is moving along but it remains to be seen if we will see a slight decrease in median price for May's statistical report.

For more real estate information on your neighborhood, contact us today for a complimentary market analysis. Stay connected with us on www.LakeHodgestoLakePowayHomes.com .

 According to a recent article in the San Diego Union Tribune, March 2011 home sales were considered "weak" in comparison to home sales this time last year.

A valid reason for the lull in March home sales could be attributed to 2010 first time home buyer tax credit. Although spring and summer are typically the busiest home buying seasons, we experienced a false market in March 2010. Consumers rushed to meet the April 30^th deadline in order to take advantage of the tax credit. This year, it seems some buyers are back on the fence waiting to see if home prices will stabilize or take another dip.  

That being said, there has been a slight increase in market activity following tax season and spring break vacations. Stay tuned to www.lakehodgestolakepowayhomes.com for more news on market trends. For a complementary market analysis on your neighborhood, contact us today!

For the full UT article click here: http://www.signonsandiego.com/news/2011/apr/13/dataquick-san-diego-home-sales-weak-march/ or see below.

DataQuick: San Diego home sales 'weak' in March

March home sales in San Diego County were weak and prices fell, heavily influenced by the absence of a government tax credit that drove buyers to the market one year ago and tight lending rules.

In March -- traditionally the start of the buying season -- the region logged 3,063 sales of all home types, down 5.1 from last year, according to figures from DataQuick Information Systems on Wednesday. Combined sales were up 31.5 percent from February, which is typical because the average increase between those months is 37.3 percent, said DataQuick analyst Andrew LePage.

Prices followed the same path as sales in March. The median price for all home types in March was $325,000, up 5.5 percent from February but down 1.5 percent a year ago.

Year-over-year decreases in both sales and price could be attributed to the lack of a homebuyers' tax credit and consumers waiting on the sidelines for confirmation that prices have really bottomed out, LePage said.

"They also want to see the economy stronger," LePage said. "...Sales (in March) were weak."

Bob Kevane, president of the San Diego Association of Realtors, agreed the absence of a tax incentive this year was a big factor. Last year, homebuyers rushed to make the April 30 deadline to take advantage of the benefit, artificially stimulating the market.

He says the market did pretty well despite its incentive, which may hint that the market is stabilizing, he said.

"I think prices and sales are going to remain flat," said Kevane, who has been echoing those thoughts since the start of the year.

Other highlights from this month's DataQuick report:

--The share of absentee buyers in March dropped to 26.4 percent in March from 28.3 percent in February. That percentage is still historically high and could have been influenced by the infusion of more traditional buyers.

--The percentage of cash buyers in the San Diego market decreased slightly to 29.1 percent in March from February's 30.5 percent, the peak for the region.

--The percentage change in the median home price for the last three months on a year-over-year basis has been negative.

Southern California roundup

This week the CEO of Fannie Mae, Michael J. Williams, attended University of San Diego's Burnham-Moores Center for Real Estate annual conference to discuss the future of Fannie Mae lending.  As policy makers aim to phase out Fannie Mae, consumers have questions about what changes we can expect for the secondary mortgage market and 30 year fixed rate loans. Many of these questions have been left unanswered, but the discussion has only begun.

"Our company is preparing for change," said Williams. "As the policymakers consider how to reform the housing market, we expect vigorous debate on all sides of the issue." (Lily Leung, San Diego Union Tribune).

Click here to read the full story...

For more real estate information specific to your neighborhood, contact us today for a complimentary market analysis. We can also connect with you with a mortgage specialist for your lending needs and questions. 

According to the National Association of Realtors and CNNMoney.com, mortgage rates around 4.42 percent will likely remain the lowest rate we will see in a long time as rates continue to up-tick since November of 2010. The National Association of Realtors states that, "Bankrate.com recently reported a rise to 5.02 percent in 30-year fixed rate loans, which is the second time in three weeks rates have crossed the 5 percent mark--many experts say signaling the end to the 4 percent mortgage rate era".

Mortgage rate forecasters predict that mortgage rates for 2011 are likely to flux between 5 and 6 percent, while other experts speculate that a rise in mortgage rates could help simulate the market.

Will the rise in interest rates create some urgency for buyers to purchase homes or will consumers continue to wait on large purchases? It's too soon to know whether the rise in rates will cause consumers to buy before rates get any higher and mortgages become more expense.
Recent market trends have been everything but typical, so only time will tell.

Chief economist at Bankrate.com, Greg McBride, told CNNMoney.com "When rates rise 4.25 percent to 5 percent, it takes away 9 percent of the purchasing power of buyers".

On the other hand, Lawrence Yun, Chief economist of the National Association of REALTORS®, says he doesn't foresee a moderate hike in mortgage rates as a negative for the industry. He says, "The real mortgage challenge is getting lenders to approve creditworthy buyers for a loan".

(Source: National Association of Realtors, CNNMoney.com).

"It's less about rates than it is about underwriting standards ... If lenders return to more normal, safe underwriting standards for creditworthy buyers, there would be a bigger boost to the housing market and spillover benefits for the broader economy," Yun said.

(Source: National Association of Realtors, CNNMoney.com).

To read more visit: http://money.cnn.com/2010/12/30/real_estate/mortgage_rate_spurt/index.htm

 We welcome your questions, feedback and referrals, so please stay tuned to www.LakeHodgestoLakePowayHomes.com for more news and updates. For a complementary market analysis on your home and neighborhood contact us today!