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

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

Housing starts rising! New construction turns the corner!!!

Another day, another signal that the market for newly-built homes is improving. Single-Family Housing Starts rose to a seasonally-adjusted, annualized 430,000 units in October – a 4 percent increase from September and the highest reading in 3 months.
Housing Starts (2009-2011), The Sousse Group, Luxury Irvine Condos

A “Housing Start” is a home on which ground has been broken. The increase in surprised Wall Street analysts, although it shouldn’t have. Earlier this week, the National Association of Homebuilders showed that Homebuilder Confidence is at its highest point since May 2010, the effect of better market conditions and more sold units. Rising housing starts amid a lift in builder confidence is to be expected ­ the two metrics have moved with loose correlation since mid-2000.

However, as with everything in real estate, Single-Family Housing Starts volume varied by location. The nation’s 4 regions posted wide-ranging results:

  • Northeast Region : + 10.0% from September
  • Midwest Region : -4.1% from September
  • South Region : +11.3% from September
  • West Region : -10.2% from September

Buyers of new construction in Orange County can infer two key points from last month’s data. First, with more homes will being built, home supply should rise, thereby softening pressure on rising home prices. This should help keep homes affordable. However, the second point is that, with builder confidence rising, buyers are less likely to win price concessions and “free upgrades” in negotiations.

The last 6 weeks of 2011 may be your optimal time to buy new construction. Home prices remain affordable and mortgage rates are rock-bottom. In addition, because there are typically fewer active home buyers during the holidays, you’ll be more likely to locate one of the few remaining new construction “deals”.

JUST LISTED – The Plaza, 8059 Scholarship, $868,888

8059 Scholarship, The Sousse Group, Luxury Irvine Condos

8059 Scholarship, 2 bedroom, 2.5 bath, 1,790 sq ft, $868,888

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

Interest rates are pretty flat from last week fighting off the rise in the 10 year treasury yield closing today at 2.10%. That closing is much higher than last week, but, rates are basically flat.

The president of the St. Louis Federal Reserve Bank stated at a meeting today to Bloomberg that he did not expect a Quantitative Easing 3 to happen until the FED can see the Christmas sales numbers. He does not expect the US to go back into a recession unless something violent happens in Europe. He also stated he thinks that Italy can withstand higher interest rates that they have in place now.

Take a look at the 15 year fixed rate today. We have had several clients lock in at rates in the low 3’s and their house will be fully paid off in 15 years!!!! Nice…

In regards to jumbo rates, the 10 year fixed rate up to $4 million is at an incredibly low rate as well.

Remember what President Roosevelt said, “When you are asked if you can do a job, tell ’em ‘Certainly I can’ then get busy and find out how to do it”.

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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