e-EDGE is now available as an RSS feed. [Click here to subscribe to it.]The California Association of Realtors (CAR) recently released their January 2010 report for existing home sales and prices in California. Statewide, sales of existing single-family homes fell by -10.6% (compared with January 2009) to 539,040 units (seasonally adjusted, annualized rate), while the median price increased by +15.0%. The year-over median price has risen in each of the previous three months with January’s increase the largest since December 2005. On a month-over basis, however, the median price fell by -6.3%, ending a run of ten consecutive monthly price gains.
In Los Angeles County, unit sales during January fell by -4.6% over the year. The median price increased by +9.0% to $332,270. In Orange County, unit sales advanced by +13.1% during January, while the median price jumped by +13.6% to $480,790. Compared with December, the median price in both counties fell – by -6.0% in Los Angeles County and by -3.1% in Orange County.
In the Riverside-San Bernardino area, unit sales experienced a sharp drop – falling by -26.2% compared with January 2009 (and that followed a drop of -19.3% in December) and by -25.9% for the month. The median price also fell in January, declining by -1.4% over the year to $173,790.
Unit sales in San Diego County during January were down by -15.2%, while the median price was up by +10.4% to $366,780. On a month-over basis, sales plummeted by -38.5% after advancing by +22.0% in December. Ventura County also lost ground in unit sales (-4.0% over the year) in January, but the median price rose by +15.4% to $420,690.
In the San Francisco Bay area, unit sales increased by -3.8% over the year but fell by -35.4% for the month. The median price jumped by +20.7%.
In January, 77% of all homes sold in California were priced below $500,000 reflecting the difficulty of obtaining financing for higher priced homes, and the continuing high number of lower priced distressed properties on the market. Despite the decline last month, however, sales remained above 500,000 units statewide for the 17th consecutive month. Additionally, the median price was 17.2% higher than it was during the trough of this economic cycle.
The CAR reported that the unsold inventory index fell to 5.8 months in January, compared with 7.3 months at this time last year. (Kimberly Ritter)
PR: http://www.car.org/newsstand/newsreleases/januarysalesandprice/
The total number of housing permits issued in California during January shot up by +55.9% to 43,500 units from 27,900 units a year earlier – the low point of last year (seasonally adjusted annual rate or SAAR). Single-family home permits were up by +57.9% to 29,500 units and multi-family permits increased by +52.5% to 14,000 units. Over the month, permits for single-family homes fell by -16.2% while the number of multi-family permits rose by +16.7%.
In Los Angeles County, 295 permits were issued in January compared with 456 during the same time last year (-35.3%). Permits for single-family homes rose by +9.8% to 145 units, while multi-family permits sank by -53.7% to 150. (Note: data at the county level are not seasonally adjusted).
Residential construction in Orange County barely budged last month compared with January 2009. A total of 104 permits were issued, up by +3.0% from the same period last year. Permits for single-family homes rose by +15.2% to 76 units, but the count for multi-family permits fell again – by -20.0% to just 28 units.
In the Inland Empire, housing permits increased by +4.2% to 498 units in January. Single-family housing accounted for 81% of the total – 403 units compared with 95 multi-family units. Last month, single-family permits surged by +79.9% while permits for multi-family residences dropped by -62.6%.
The January permit count in Ventura County was only 25 units, but this was still a considerable improvement over January of last year, when only 10 new residential permits were issued. Just 11 permits for single-family homes were posted this year (compared to 10 units in January 2009), while 14 permits were issued for multi-family homes (in contrast to zero activity during the same period last year). Residential construction fared rather better in San Diego County. The total number of permits issued was 282 compared with just 87 last year. There were 215 single-family homes permitted and 67 multi-family residences.
Results in the Bay Area were mixed. Only 10 permits were issued in the San Francisco metro area in January. This represented a decline of -52.3% compared to the previous year. In the Oakland metro area, a total of 136 permits were issued, up by +54.5% for the twelve months ending in January. In the San Jose area, permits jumped by +112.5% (from a very low base of 32 units during the same period last year) to 68 units.
New housing permits were up in 22 out of California’s 28 metro areas in January 2010 compared with the extreme lows of January 2009. (Kimberly Ritter)
While the news on commercial real estate has been rather downbeat, the January report from the Construction Industry Research Board had some interesting nuggets. In Los Angeles County, no permits were issued for industrial buildings compared with $1.2 million in permits last year. And no permits were issued for hotels in either 2009 or 2010. Office permits worth $3.2 million were issued in January, a decline over the year of -78.2%, while retail permit values declined by -78.6% to $9.5 million.
Orange County’s industrial market started the year with a bang, a $23.0 million project, after 2009 when no industrial permits were issued. $1.2 million in office projects were permitted compared with none last January. Retail declined by -34.0% over the year to $4.3 million. No hotel permits were issued this January or last.
No industrial permits were issued in Riverside County in January compared with $8.6 million in projects last year. Office activity rose by +31.1% over the year to $2.1 million, while retail rose by +44.6% to $6.8 million. No hotel permits were issued in the County in January this year or last. San Bernardino County recorded $2.8 million in industrial permits versus none last January. However, there was no activity during the month in office, retail or hotels.
San Diego County had no new industrial activity during January, compared with $1.3 million in permits last year. However, office permit values rose by +93.3% to $3.5 million, and retail was up by +124.5% to $7.7 million. No hotel permits were issued. January was not a good month for nonresidential construction in Ventura County, with no permits issued. January 2009 was no great shakes, however, with just $1.3 million in retail permitted.
January trends in the 9-county Bay Area were quite mixed. Industrial permit values jumped over the year by +78.8% to $10.5 million. Office permits jumped to $25.9 million compared to $3.2 million last year. However, retail permits came in at just $7.4 million compared with $44.7 million last year. And no hotel permits were issued in the area this year or last. (Jack Kyser)
PKF Consulting has recently released their December data for Bay Area hotels, and the news wasn’t pleasant. In San Francisco, the occupancy rate was 64.8% compared with 66.8% last year. Worse, the average daily room rate (ADR) declined by -20.6% to $132.81. By area in the City, the best occupancy rate was found in the Financial District at 68.1%. However, the ADR declined by -17.0% over the year to $169.02. For the year 2009, San Francisco’s occupancy rate was 75.5% compared with 78.9% in 2008. The ADR declined by -15.7% to $160.27
The December occupancy rate in San Jose/Peninsula was 54.7% compared with 58.1% a year ago. The ADR fell by -15.0% to $113.95. For the year 2009, the area’s occupancy rate was 59.3% compared with 67.9% in 2008. The ADR for the year fell by -14.9% to $115.19. (Jack Kyser)
Asia: Nations across Asia announced official GDP figures for the fourth quarter of 2009 this past week. The results demonstrated that Developing Asia is indeed leading the global recovery. Taiwan had the best result amongst the countries that reported GDP last week. The Taiwanese economy exited its deepest recession in recorded history (dating back to the 1950’s). Taiwan’s GDP grew by +9.2% in the fourth quarter of 2009 when compared to a year earlier. This was the best performance for the Taiwanese economy in more than five years. However, Taiwan’s overall GDP did contract by -1.8% in 2009, as the loss of global demand for its exports proved to be too much for the economy to overcome (exports make up 50% of Taiwan’s GDP).
Next, we turn to Thailand. The second largest economy in Southeast Asia reported a +5.8% increase in GDP in the fourth quarter of 2009. The positive result ended four consecutive quarters of economic deterioration in Thailand and was the strongest growth in ten years. Again, as was the case in Taiwan, the fourth quarter result was not enough to avoid an annual decrease in GDP, as the Thai economy declined by -2.7% in 2009.
In addition, Malaysia, Vietnam and Singapore reported robust growth figures for the fourth quarter. All of this follows very strong fourth quarter GDP reports from China (+10.7%), South Korea (+6.0%) and Indonesia (+5.4%). The solid performances in Taiwan and Thailand are closely tied to China’s strong fourth quarter performance, as both nations greatly benefitted from a surge in exports to China. A recovery in private consumption along with a resurgence in tourism also played significant roles in increase in economic growth.
World Trade: The World Trade Organization (WTO) this past week officially declared that world trade volumes fell by -12% in 2009. This was the worst result for global commerce since the end of World War II and the first drop since 1982. In fact, the decline from the peak of global trade volumes (Fall 2008) to the trough (Summer 2009) was an astounding -24%. However, world trade volumes have begun to recover, as witnessed by traffic at the local ports over the past few months. Global trade volumes are expected to grow by +4% to +5% this year as the global economy recovers from the recession. China, along with the rest of Developing Asia will lead the recovery in global trade this year. Inventory restocking will be the major contributor to trade growth, particularly over the first half of 2010. (Ferdinando Guerra)
Wednesday, March 3, 2010: Town Hall Los Angeles: Civic Series: "Everyone Counts: The 2010 Census."
12:00 PM Luncheon. 12:30 PM Panel Discussion Followed by Audience Q&A. At National Center for the Preservation of Democracy (111 N. Central Avenue), Los Angeles. FREE Event, Registration Required.
The US Census counts every resident in the United States, and is required by the Constitution to take place every 10 years. The 2010 Census will help communities receive more than $400 billion in federal funds each year for things like: hospitals, job training, senior centers, schools, bridges, tunnels and other-public works projects, and emergency services. Panelists: The Honorable Mike Davis, Assembly Member – District 48, California Assembly Select Committee on the Census; Sneha Desai, Assistant Regional Census Manager, Partnership Program, Los Angeles Regional Census Center; Representative from the business community. Moderator: Antonia Hernandez, President and CEO, California Community Foundation
March 3-4, 2010: LA Area Chamber of Commerce: 2nd annual The Americas Business Forum: Creating Jobs Through Exports
UCLA - Covel Commons (330 De Neve Drive), Los Angeles
Join the Los Angeles Area Chamber of Commerce, the UCLA Anderson School of Management and the U.S. and Foreign Commercial Service to learn about business and exporting opportunities in the Americas, primarily in Latin America.
March 3-5, 2010: CALED and IEDC: Economic Development Credit Analysis
The Westin Bonaventure (404 South Figueroa Street), Los Angeles. Early bird registration (by Jan 20th): $525. Non-IEDC Member Rate: $625.
This hands-on course presents an overview of business financing tools and available private financing options, as well as how the public sector can complement bank financing. Learn how to read financial reports, financial statements, balance sheets and profit and loss statements. Course participants will perform credit analysis by determining how well a company buys and sells to make a profit. Also, they will learn how to determine if the company pays its suppliers on time, collects its receivables, and controls costs to make a profit. Enroll now to understand the basics of structuring deals for small businesses that often combine public and private sector financing programs.
April 19-20, 2010: USC Marshall School of Business: Asia/Pacific Business Outlook 2010
USC - Davidson Conference Center (on Campus), 3415 S. Figueroa St., Los Angeles, CA
As the world economies slowly rebound from the financial crisis in 2010, Asian economic growth leads the globe. Learn how your firm can benefit from Asia’s surge. Now in its 23rd year, APBO is North America’s premier event for business leaders who want to expand their trade and investment in Asia/Pacific. APBO features 60 concurrent sessions on 15 Asia/Pacific economies. Build your international business network through APBO’s unprecedented access to 60 business experts with on-the-ground knowledge and experience.
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