Up to Date Real Estate News from the Experts in Urban Living, March 2012

Up to Date Real Estate News from the Experts in Urban Living March, 2012

Consumer confidence is rising, home prices are expected to follow

Retail Sales Rates, The Sousse Group, Irvine Luxury CondosThe U.S. economy continues to show signs of a rebound. According to the Census Bureau, Retail Sales climbed to $329 billion last month on a seasonally-adjusted basis, excluding automobiles. January’s data marks the 18th time in 19 months that Retail Sales rose, a run that’s increased total sales receipts by 11 percent. This is big news because Retail Sales accounts for close to 70% of the U.S. economy.

In addition, consumer confidence is rising. In a separate, joint report from the University of Michigan and Thompson Reuters, it was shown that consumer attitudes toward the economy and the future are improving, primarily the result of recent job gains. The Survey of Consumers posted its highest value in 12 months.

It is not a coincidence that Retail Sales and consumer confidence both made multi-month highs — the readings are more than loosely linked. As consumers feel more confident about the economy and their personal prospects for the future, they’re more likely to spend money on goods and services, which leads to an increase in consumer spending. For the housing market, the ramifications are two-fold.

First, from the financing side, an expanding economy is linked to rising mortgage rates. This is because Wall Street tends to chase risk in a growth economy and the bond market offers little in the way of risk. As demand for bonds drops, then, mortgage rates rise throughout California.

Second, rising consumer confidence can lead Costa Mesa home values higher, too. Confident consumers are more likely than fearful ones to become home buyers. They’re more likely to stop renting and start buying; more likely to list their home and “move-up” to something bigger; more likely to “take the next step”.

So, as more buyers enter the market at a time when the national home supply is shrinking, the supply-demand balance in housing is shifting toward the sellers. This creates price pressures and should lead to higher home valuations in neighborhoods like Corona Del Mar. If you have plans to buy a home in 2012, the best time to buy may be now. Today’s mortgage rates are low and so are the home prices — a combination that’s unlikely to last.


JUST SOLD – The Plaza, 8059 Scholarship, $850,000

8059 Scholarship, The Sousse Group, Luxury Irvine Condos

JUST SOLD 8059 Scholarship, 2 bedroom, 2.5 bath, 1,790 sq ft, $850,000

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

Some great news on the forefront…Capital Economics expects the housing crisis to end this year according to a report released on Tuesday. Their main basis?…loosening credit. The firm notes that the average credit score to obtain a loan has been lowered by most PMI companies and the 5% down conventional programs have opened up again with FICO score’s down to 680. This is great news for all of us in the industry. This coupled with an increase in consumer spending of .2% shows signs the markets are starting to stabilize.

You must take a look at our jumbo loan programs featuring the 5/1, 7/1 and 30 year fixed rates. They are absolutely incredible.

How about this from Ralph Marston…You’ve done it before and you can do it now. See the positive possibilities. Redirect he substantial energy of your frustration and turn it into a positive, effect, unstoppable determination.


Based in Orange County, California, The Soussé Group is ranked number one in total sales in Irvine, California, 92612. Topped $120 million in sales in 2011, 2010, 2009, 2008, 2007 alone with 320 completed transactions and have successfully risen to the top 50 along 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
info@thesoussegroup.com
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