Housing Starts Drop 5.3 Percent in June

Housing Starts Drop 5.3 Percent in June
(Washington - July 19, 2006) - Total housing starts dropped 5.3 percent in June to a seasonally adjusted annual rate of 1.850 million units, according to figures released by the Commerce Department today. This was 11.0 percent below the pace of a year ago.
Single-family housing starts were down 6.5 percent for the month to a pace of 1.486 million units, a 13.8 percent drop from the June 2005 pace. Multifamily housing construction was up 0.3 percent for the month to a seasonally adjusted pace of 364,000 units.
'NAHB's surveys of single-family builders have been showing a steady decline in confidence since the middle of last year, and builders are acting accordingly. They are slowing their production as market conditions and demand cool down,' said David Pressly, president of the National Association of Home Builders (NAHB) and a home builder from Statesville, N.C. "

Home prices could start falling

USATODAY.com - Home prices could start falling: "Home prices could start falling

By Noelle Knox, USA TODAY
For the first time in more than a decade, home prices could start to fall around the country in coming months, the National Association of Realtors said Tuesday after a report showed that sales of existing homes fell in June and the number of homes for sale soared to their highest point since 1997.

Condo prices are already being hit: They fell 2.1% from June last year to a median $226,900 (median means half cost less and half cost more). Prices of single-family homes edged up 1.1% in June to $231,500. With a 6.8-month supply of single-family homes on the market and an eight-month supply of condos, sellers are under more pressure to cut prices, and buyers can be choosy.

David Lereah, NAR's chief economist, said he expects 'price numbers to start deteriorating,' though he still projects home prices will be up 5.3% for the year. "

Home Price Drop for San Diego

For June '06, the median home price in San Diego fell for the first time in nearly a decade and sales tumbled in Los Angeles County, according to just released real estate figures.

The median price of all homes sold in San Diego last month fell 1% from the same month last year to $488,000, according to DataQuick Information Systems.

The importance of this, is that the traditionally strongest real estate marketing time is from May through August. For a price drop to occur now,
can only be a harbinger of a much more pronounced drop as we enter into Fall/Winter.

I'm not selling my San Diego home, but have sold all my investment properties.

If one considers the BILLIONS in adjustable loans due for their first adjustment in 2007/8 combined with the huge percentage of 100%loans used to purchase at the height of our market....you have to worry!

But, than again what is so bad about a 20-30% decline in values if we are coming off 100% increase over the last five years?

I'll answer my own question....nothing so bad as long as you were not speculating, purchased beyond your means or refinanced you property at 90% or more of its high value.
Newer real estate sites: La Jolla real estate -Del Mar real
estate - Poway real estate - Sacramento real estate - San Francisco real estate - Orange County real estate - San Jose real estate - Los Angeles real estate

San Diego County home prices take a tumble

SignOnSanDiego.com > News > Business -- San Diego County home prices take a tumble: "By Roger M. Showley
UNION-TRIBUNE STAFF WRITER
11:45 a.m. June 13, 2006
SAN DIEGO – San Diego County's home prices took their biggest tumble for any spring on record last month, DataQuick Information Systems reported Tuesday.
The median price of all homes sold in May was $490,000, down $15,000 from April, although it was still slightly higher than a year ago.

Sales slowed for the 23rd straight month on a year-over-year basis, reaching 4,217 transactions in new and existing homes and condos.
Local real estate agents reported about seven months' worth of unsold inventory, but argued that the pace of activity reflects a normal market rather than a crash. "