Up to Date Real Estate News from the Experts in Urban Living, August 2011

Up to Date Real Estate News from the Experts in Urban Living August, 2011

New Home Supplies keeps shrinking; prices pressured higher!

Home builders are slowly reducing inventory. According to Census Bureau data, the number of new homes slid 1 percent from May. On a seasonally-adjusted, annualized basis, home buyers bought 312,000 newly-built homes last month. It’s the third straight month of falling sales and the headline data casts the Southern California housing market in a negative light. Upon closer inspection, however, the numbers appear quite strong.

First, sales are down marginally. Total units sold have dropped just 2 percent from the highs of the year. And, second, the number of newly-built homes for sale is down markedly from last year.

There are 22% fewer new homes for sale today as compared to June 2010. At today’s sales pace, the complete new home inventory would be sold in 6.3 months – the quickest sell-out window since the expiration of the 2010 federal home buyer tax credit.

Builders are feeling better about their business, too. After falling to a 9-month low, homebuilder confidence rebounded this month, boosted by expectations for a strong fall season. For buyers across California , this could be seen as a market-shifting signal. When builder confidence rises, negotiating for upgrades and price reductions can be tougher; “good deals” get scarce.

If you’re a home buyer and are considering new construction, don’t let the headlines fool you. Sales figures areslipping, but that’s because there are fewer homes are for sale nationwide. The inventory is shrinking and that can push home prices higher. With mortgage rates still low, today’s market may be your best value of the year.

JUST LISTED – The Plaza, 8059 Scholarship, $888,000

8059 Scholarship, The Sousse Group, Luxury Irvine Condos

8059 Scholarship, 2 bedroom, 2.5 bath, 1,790 sq ft, $888,000

Views of twinkling city lights, mountains, Fashion Island, golf course and nature habitat preserve that bring the outside in from this ‘big sky’ wrap-a-round terrace. This 2 bedroom plus foyer/gallery, 2.5 bath corner unit on the 5th floor offers gorgeous travertine floors that guide you through the luxury of light cherry wood kitchen cabinetry, granite counter tops, floor to ceiling windows with upgraded window shades, custom paint, custom light fixtures, crown molding, three Plasma TV’s and fireplace with custom built-in entertainment in living room. Experience extraordinary amenities and recreational oasis on nearly one acre of land…The Plaza-Irvine.

Financial Update by Maurice

Debt Ceiling? Does anyone actually think we won’t raise it, increase Federal spending and ruin our country’s credit rating? Please…. This entire debate is all political posturing. There have been 106 increases to the Federal Debt since 1940. President Obama has already raised the debt three times on Feb 17, 2009, December 28, 2009 and February 12, 2010. These are everyday Washington activities. It is strange how the public can go into paralysis sitting the “debt ceiling” and its effects on their personal lives. Bet your hard earned money the debt ceiling will be raised!

What is this doing to interest rates? The 10 year yield is trading at 2.85% this morning which is down from last week’s email. Bond traders aren’t even listening to the rhetoric as they know that investors will flock to safety pushing interest rates down actually lowering the borrowing costs to the government. Stocks may not fair as nicely.

Interest rates are holding steady and looking great today with the 30 year fixed hovering between 4.125% to 4.375% depending on FICO score and down payment. Rates are just great.

Douglas Malloch says “you have to believe in happiness, or happiness never comes”.

Based in Orange County, California, The Soussé Group is ranked number one in total sales in Irvine, California, 92612. Topped $96 million is sales in 2010, 2009, 2008, 2007 along with 260 completed transactions and have successfully risen to the top 50 among the 25,000 agents in Orange County.
Kerry and Maurice Soussé
Realtor / Broker
The Soussé Group
HÔM Real Estate Group
1200 Newport Center Drive, Suite 100
Newport Beach, CA 92660
Direct Line: (714) 412-9014
Direct Line: (714) 412-8512
Direct Fax : (949) 640-7606
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