California's fiercely competitive housing market

For months now, north state real estate agents have talked about the very low number of houses on the market and how it's created bidding wars, especially at the lower end.

On Thursday, the California Association of Realtors released results of a survey that shows this playing out across the state.

More homes in 2012 have received multiple offers than in any year since 2000.
Affordable prices and record-low interest rates are also fueling sales.

Nearly 6 of every 10 sales got an average of 4.2 offers, up from 3.5 in 2011, the CAR survey shows.

No surprise that lower-priced homes, many owned by the bank after being foreclosed, attracted more multiple offers than equity sales. Seven of 10 foreclosure and short sales got more than one offer.

In the release announcing the survey results, CAR President LeFrancis Arnold said the highly competitive market can make it tough on first-time home buyers. That's because they often are competing with investors armed with all-cash offers.

Nearly one of every three buyers in California has paid with cash this year. That's more than triple the amount it was in 2001 as demand for investment properties grows.

Foreclosure research firm RealtyTrac released data earlier this year that show speculators are getting more bullish on the north state's housing market.

There were 232 properties flipped in Shasta County in the first half of 2012, a 176 percent increase from the same six months a year ago.

By David Benda

Winter cleaning tips

The winter season brings shorter days, cooler temperatures and often, lots of guests and holiday entertaining. A deep cleaning of your space leaves your home looking great and may keep flu season at bay. Here are some ideas to freshen up your home.

1. Sanitize commonly overlooked items. Germs are most prevalent on heavily used items. Disinfect your computer keyboards, remote controls, light switches, phones, appliances, doorknobs and cabinet handles regularly.
2. Flip and rotate mattresses. This ensures the mattress will maintain its shape, comfort and resilience. Feel free to vacuum the mattress for added cleanliness.
3. Wash any bedding that was in storage. Launder winter bedding and if possible, dry outdoors to rid it of any musty odor that may have seeped in during storage.
4. Clean your chimney and flues. This should be done at least once a year and should be conducted by a professional. It is important for safety and may cut down on your heating bill.
5. Protect and clean wood and tile. Deep clean to remove any dirt or grime and reseal wood floors to protect against scratches.

Home Depot Profit Tops Estimates as Housing Market Heals

Home Depot Inc., the largest U.S. home-improvement retailer, posted third-quarter profit that topped analysts' estimates as the recovering U.S. housing market prompted customers to spend more on home repairs.

Net income climbed 1.4 percent to $947 million, or 63 cents a share, from $934 million, or 60 cents, a year earlier, the Atlanta-based company said today in a statement. Excluding some items, profit was 74 cents. The average estimate of 25 analysts surveyed by Bloomberg was 70 cents. Sales rose 4.6 percent to $18.1 billion, topping the $17.9 billion average estimate.

The U.S. housing market is healing, with new-home sales rising to the fastest pace in two years and construction starting at the fastest rate in four years. The rebound has helped sales at Home Depot locations open at least a year gain 4.2 percent, the sixth straight quarterly increase, as customers visited more often and spent more per trip.

Home Depot "did an excellent job driving its sales growth with lower promotions," John Tomlinson, an analyst at ITG Investment Research in New York, said today in an e-mail. "There is no doubt improvements in housing turnover and home prices are also positively impacting its sales trends."

Home Depot rose 3.6 percent to $63.38 at the close in New York, the biggest gain since Dec. 20. The shares have climbed 51 percent this year.

Housing Rebound

New-home sales in September climbed 5.7 percent to a 389,000 annual pace, the most since April 2010, according to the Commerce Department. Housing starts that month jumped 15 percent to the fastest rate since July 2008, a report last month showed. Beginning construction rose to an 872,000 annual rate, exceeding all forecasts in a Bloomberg survey, Commerce Department figures showed.

Americans' real estate holdings have risen in value for two straight quarters, making them worth $730 billion more than at the end of 2011, Federal Reserve data show. More than 1.3 million homeowners who had owed more than their property was worth have moved above the break-even point on their homes, according to CoreLogic of Santa Ana, California. U.S. home prices rose 4.6 percent in August from a year earlier, according to the service.

Those rising property values are bolstering household finances and spurring the consumer spending that accounts for 70 percent of the economy.

Sales this year will gain 5.2 percent, Home Depot said today. That's up from a previous projection for a 4.6 percent gain. Profit excluding the effect of closing seven stores in China will be $3.03 a share, up from a previous forecast of $2.95 and topping the $2.98 average estimate.

Written by Chris Burritt