USA Today

Housing appears to be rated a “buy” these days, especially among investors, who see a ripe and rising rental market and big potential for income.

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http://www.usatoday.com/money/economy/housing/story/2012-03-04/cnbc-real-estate-is-it-time-to-buy/53338660/1

Recent improvements in the overall economy, combined with extremely low interest rates lifted California home sales from both the prior month and year in February, according to data from C.A.R. The median price dipped from January but is beginning to show signs of stabilization.

“While the median home price dipped in February, the year-over-year decline was the smallest recorded since December 2010,” said C.A.R. President LeFrancis Arnold. “This may be a signal of a possible stabilization in home prices, which should bode well for prospective buyers who have been on the sidelines waiting for prices to level out and may entice them to jump into the market.”

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 528,010 in February, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. February’s sales were up 2.1 percent from January’s revised pace of 517,120 and up 5.5 percent from the revised 500,480 sales pace recorded in February 2011. The statewide sales figure represents what would be the total number of homes sold during 2012 if sales maintained the February pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

The statewide median price of an existing, single-family detached home dipped 0.6 percent to $266,660 in February from January’s $268,280 median price. The median price was down 1.7 percent from the revised $271,370 median price recorded in February 2011.

http://www.car.org/newsstand/newsreleases/2012releases/Febsales

Lower home prices and interest rates led to an increase in home affordability in the third quarter, the CALIFORNIA ASSOCIATION OF REALTORS® reported.

Making sense of the story

• The percentage of California households that could afford to purchase a median priced home of $292,120 rose to 52 percent in the third quarter, up from 51 percent in the second quarter.
• C.A.R.’s HAI measures the percentage of all households that can afford to purchase a median-priced, single-family home in California.  C.A.R. also reports affordability indices for regions and select counties within the state.
• Home buyers needed to earn a minimum annual income of $61,530 to qualify for the purchase of a $292,120 statewide median-priced, existing single-family home in the third quarter of 2011.  The monthly payment, including taxes and insurance, would be $1,540, assuming a 20 percent down payment and an effective composite interest rate of 4.63 percent.
• Regionally, housing affordability rose in most counties in the San Francisco Bay Area but was down in Los Angeles County and Fresno County.  At 77 percent, San Bernardino County was the most affordable, while San Mateo County was the least affordable, with only 25 percent of households able to purchase the county’s median-priced home.   

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http://www.latimes.com/business/realestate/la-fi-housing-affordability-20111111,0,6083426.story

REALTORS® and housing experts say new appraisal requirements and a difficult housing market are disrupting home sales.

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http://www.smartmoney.com/spend/real-estate/how-appraisals-are-derailing-home-sales-1320357466034/?grcc=88888Z0&mod=WSJ_hpp_sections_personalfinance