KW, (Ken Webb) has joined forces with Evergreen Real Estate & Associates to provide you the best service, information, and technology to give you the best Customer Service in Real Estate. Call/text/email me - anytime. - Ken Webb
Showing posts with label First Team Real Estate. Show all posts
Showing posts with label First Team Real Estate. Show all posts
We have done it again. We have combined all of the resources for Real Estate News and combined it in one easy to use central location.
It doesn't matter if you are a buyer, seller, or renter. It is also designed for Commercial as well. Get the info you need - form all the sources in one spot. No agenda and not designed by my Broker. This is the real deal - all of it - in one easy spot.
Both of these women have years of knowledge and experience and they will be able to answer any question you may have about loans. These 2 people are my top go-to people in the mortgage industry at this time and I encourage you to call/email them anytime. Let them know you got the contact info from Ken Webb. Be sure to talk to them TODAY if you have questions.
Lastly with summer fast approaching - now is the time to prepare for the summer buying time and get ready to start your home buying process. I want to speak with you ASAP to sit down and take the time to go over the items that we will need to do to get you the best deal on the best home at the best price.
Have Questions? Have a concern? Need help finding homes? Ask, ask, ask. --Ken Webb
Ken Webb - Realtor/Agent OCAR, NAR, CAR F1RST TEAM Real Estate Email: kenwebb@me.com Phone/Text: (949) 243-6649 DRE Lic # 01844181
KW, REALTOR ON FACEBOOK http://www.facebook.com/pages/Aliso-Viejo-CA/KW-Realtor-Southern-California-Real-Estate-Local-International/109314315761744?v=wall&ref=sgm
"The finest compliment I could ever receive is a referral from my friends and clients"
Three beautiful side by side properties for one low price That's '3' lots for '1' low price. The properites possess an incredible Panoramic...180 degree, unobstructed 'Ocean View' view. Price $395,000
Please forward this email to anyone you know who may be interested in owning ocean view property in Laguna Beach. This bare land presents you with opportunities to build your own home - or build rental/income unit(s) - with stunning 180 degrees of Ocean Views.
This sale includes 3 lots that are side by side.
If you are interested in submitting an offer or would like to drop by the property, let me know so we can arrange a time.
Thank-you for considering this great opportunity,
Ken Webb - Realtor/Agent OCAR, NAR, CAR F1RST TEAM Real Estate Email: kenwebb@me.com Phone/Text: (949) 243-6649 DRE Lic # 01844181
SEARCH JUST LIKE AN AGENT http://www.kwrealestate.listingbook.com
CURRENT REAL ESTATE NEWS http://kenwebbkwrealestate.blogspot.com
UP TO THE MINUTE UPDATES ON TWITTER http://twitter.com/KW_Real_Estate
STATE WIDE AND LOCAL REAL ESTATE FACTS & FIGURES http://kenwebb.housingtrendsenewsletter.com/
BIO AND FUN STUFF ABOUT KW, REALTOR http://www.myspace.com/kenwebbocrealestate
"The finest compliment I could ever receive is a referral from my friends and clients"
Just think, if you where already using my services you would already have this information.
Here they are - Your California Real Estate Updates - FYI,..values are up about 20% from last year - yes things have been looking up. If you are looking to buy - DO NOT wait and wait and wait until prices are too high again because of Interest Rates --->http://www.youtube.com/watch?v=CICufxwD-S0&feature=youtu.be&a
Ken Webb - Realtor/Agent OCAR, NAR, CAR F1RST TEAM Real Estate Email: kenwebb@me.com Phone/Text: (949) 243-6649 DRE Lic # 01844181
Homes for sale in Oxnard CA! These homes are BRAND NEW! Limited Quantity. Prices starting in the mid $200,000! Read further! Click on pictures to expand and enlarge. Be sure to make a reservation to attend this special event coming up soon! There are three (3) Brand New Communities being build in Oxnard, CA.
These new homes are not even listed in the MLS for California. If your agent missed these homes - keep in mind that I work hard to offer EVERYTHING that is an option to buy in Real Estate for my clients.
There are three (3) Brand New Communities being build in Oxnard, CA.
Here is your change to get in on a Brand New Home! The prices start in the mid $200,000 and the sizes range from 1300 square feet all the way up to over 2,000 square feet!
This could be your chance to own a home that fits your lifestyle and your dreams at a price you can afford!
If you are interested - a special trip will be planned to Oxnard.
If you are interested in attending and know you are a ready, willing, and able buyer, you NEED to get in touch and make your reservations for this unique and special event for Southern California Buyers! You need to send me your First and Last Names, your email, your phone number to your cell and you also need to be a READY, WILLING, and ABLE BUYER.
If you have been looking for an awesome home that is BRAND NEW - in the LA areas - this deal is for you - if you wait - you won't get to buy one of these beautiful homes.
I have taken the first step to get you the information. Your next step is to contact me.
You hear people talk about investing in Real Estate.
In the back of your mind you think,.."Riiiiiiiight! Who can afford that?"
You Can - That's Who!
Did you know you could buy a home or an income growing property.
Prices start amazingly low here in California.
Was previewing and saw something under $10,000.
Yes,..that's $10,000.
Most Investors start where they can afford, build up equity and wealth and then buy another, and repeat the process to the point where they retire and live off the income from their income producing properties.
WHAAAATT?!
For those of you who might enjoy stepping away from the office and managing your own properties or even having a service do it for you - maybe even quitting work within 10 years or less.
Not all of us can afford multi-million $$ properties. BUT, many of us can afford homes that cost under $100,000. Even more of us can afford homes that cost under $80,000. And even more can afford homes that start under $70,000.
I have written in this blog that if you use my website search tool you can search like a REAL AGENT and get access to all of the MLS. I do mean ALL of it.
My website has all of the MLS - It's All In There!
If you are serious about owning Real Estate - Talk To Me.
The time is ripe for you to swoop in and pick up many properties all around Southern California and start renting them out and earning a positive cash flow.
Want to see the proof?
Here is a short list of just a few of the homes available right now. These homes start at 2 bedrooms, 2 bathrooms and 1200 square feet of living.
Imagine, you could own one of most STUNNING, LUXURIOUS, & SPECTACULAR homes in all of California and in many case the entire USA.
If having the means is something you take pride in - maybe it is time to take a look at what Southern California has to offer you.
Here is the Master List of all of The Top Luxury Properties in Southern California. Nothing has been spared. This list is truly the most exclusive list of the best California has to offer you.
Newport Coast: Premiere Pt., Fairway Pt., Beachcrest. Pacific Palisades: Amalfi Drive, Corona Del Mar, Chataugua Boulevard.
This MASTER LIST is updated every 15 minutes with price changes or information changes as they occur. This list also includes sales history for each area as well as loan information for your convenience.
Remember - be sure to FAVORITE theBlog at: http://kenwebbkwrealestate.blogspot.com - This blog will always have postings or new articles and links to new searches and important Real Estate information - This blog will also have back-up links to postings on properties you may have missed.
My name is Ken Webb. I am a Realtor in Southern California. I work with First Team Real Estate and I help people buy or sell their dream home(s) in Southern California.
I understand that Real Estate is no longer business as usual and I approach it as such.
I value and place a very high price on your privacy and smoothness of transaction. I will do what needs to be done to get you the best deal on any of these properties. With the tools at my disposal and the ability and skill to meet the needs of my clients - you will not be disappointed in my level of service, integrity & loyalty to my customer.
I demand privacy with other agents and will work very hard to keep your transaction that way.
I have done what I need to do to get the information to you. The next step is yours.
Sincerely,
Ken Webb, Realtor.
Ken Webb - Realtor/Agent OCAR, NAR, CAR F1RST TEAM Real Estate Email: kenwebb@me.com Phone/Text: (949) 243-6649 DRE Lic # 01844181
Be sure and bookmark this blog and bookmark the Facebook Fan Page. There is a lot of action in Real Estate and if you are in the market or going to be in the market you do not want to miss a Smoke'n Hot Deal or a new reduced price on what could be your perfect home!
Staying on top of the Real Estate market has NEVER been easier. You can have all the best of the best of what you want sent to you every day - before other people even begin to search on the internet.
Take the first step and find out - just how easy it is. There where 5 buyers who used my websites to buy homes just in the last 3 months of 2009. There are another hundred currently active and looking now.
It's time to get off the sidelines - and if you are ready - now is the time.
If I had your perfect house RIGHT NOW - could you buy it right now? If we had a listing on the MLS that was your perfect house. Your pool, spa and view. Your master Bedroom Suite. Your ease of access to drive to work. Your Dream Home!
Could you buy today?
If your answer is "No" or "I do not know" then today is the time to get serious about owning a home.
I know multiple lenders here in South OC. Lenders who have proven track records.
I know and have access to agents all over the world who can help you find what you want and need. It does not matter the cost, country or language. I can help you.
Don't need a loan and you are a cash buyer? Right NOW CASH IS KING! Cash buyers are sweeping in and picking up deals right and left.
The next step is yours. Are you ready, willing, and able to take it?
Ken Webb - Realtor/Agent OCAR, NAR, CAR F1RST TEAM Real Estate Email: kenwebb@me.com Phone/Text: (949) 243-6649 DRE Lic # 01844181
SEARCH JUST LIKE AN AGENT http://www.kwrealestate.listingbook.com
CURRENT REAL ESTATE NEWS http://kenwebbkwrealestate.blogspot.com
UP TO THE MINUTE UPDATES ON TWITTER http://twitter.com/KW_Real_Estate
STATE WIDE AND LOCAL REAL ESTATE FACTS & FIGURES http://kenwebb.housingtrendsenewsletter.com/
BIO AND FUN STUFF ABOUT KW, REALTOR http://www.myspace.com/kenwebbocrealestate
"The finest compliment I could ever receive is a referral from my friends and clients"
This blog has readership all over the world. Remember, Real Estate is no longer JUST local. Real Estate is GLOBAL.
Pulled up today's list of the best 2-3 bedroom homes with at least 1200 square feet in South OC.
Areas include:
Lake Forest Mission Viejo Irvine Rancho Santa Margarita Trabuco Canyon Laguna Niguel
One of the houses has over 1800 Square feet! 2 Car Garage, 3 bedrooms and no Mello Roos! The home looks beautiful and comfortable and is ready for someone to buy.
Are You Thinking of owning a home? You must speak with me - today!
FYI - Aliso Viejo - still is retaining higher prices than surrounding areas and is in more demand by buyers.
Ken Webb - Realtor/Agent OCAR, NAR, CAR F1RST TEAM Real Estate Email: kenwebb@me.com Phone/Text: (949) 243-6649 DRE Lic # 01844181
SEARCH JUST LIKE AN AGENT http://www.kwrealestate.listingbook.com
CURRENT REAL ESTATE NEWS http://kenwebbkwrealestate.blogspot.com
UP TO THE MINUTE UPDATES ON TWITTER http://twitter.com/KW_Real_Estate
STATE WIDE AND LOCAL REAL ESTATE FACTS & FIGURES http://kenwebb.housingtrendsenewsletter.com/
BIO AND FUN STUFF ABOUT KW, REALTOR http://www.myspace.com/kenwebbocrealestate
"The finest compliment I could ever receive is a referral from my friends and clients"
The U.S. Treasury publishes estimates of the impact of recovery act programs, which includes information on the homebuyer tax credit from the IRS. Though this report is dated February 28, 2010, it was published on the web only in the last week. The notes in the report indicates that it shows information on credits claimed through January 23, 2009, but most likely covers 2009 credits claimed through Jan 2010.
This is one in a series of commentaries by the Research staff of the National Association of REALTORS®.
"Copyright National Association of REALTORS®, Reprinted with permission."
Economists' Commentary: Metro-Area Housing Equity, Part One
April 14, 2010
By Economist Danielle Hale
For the third year in a row, NAR Research has looked at the equity a homeowner might have in a home owned for 5, 10, 15, and 20 years if it were purchased at the median price. This analysis allows us to learn about the effect of price patterns in many metro areas on homeowner equity over longer periods of time. Examining longer periods of time is important because typical buyers expect to own their home for 7 to 15 years, depending on the buyer’s age. Among all buyers, the typical expected time of ownership is 10 years. This is the first year that the effect of falling house prices has shown up in our look at equity in a wide-spread manner at the 5 year time frame. Still, over a 10 year period, the typical expected time of ownership, the equity situation for our experimental buyers is much more sanguine.
Equity and Wealth
Homeowner equity is a substantial component of homeowner wealth. The Federal Reserve's Survey of Consumer Finances, conducted once every three years, provides a snapshot of family income and net worth along with basic demographic details and more detailed information on where families keep the wealth they have accumulated. The most recent survey, concluded in 2007, offers a picture of the situation before home price declines and the tumbling equities market hit household balance sheets. At that time, median homeowners had well over $200,000 in net worth compared to median renters who had just over $5,000. Furthermore, $200,000 was the median value of owners’ homes. In the research paper accompanying the survey results, Fed researchers conducted a thought experiment to determine how market declines might have impacted the mean and median households through October 2008.
Looking at aggregate data, the National Association of Realtors® estimated the impact for renter and homeowner households through calendar year 2008. The result, shown below in Figure 1, suggests that despite declines in equity and housing markets, homeowners ended 2008 with a net worth orders of magnitude greater than renters. How has the recovery of the stock market and a sluggish housing market affected owners and renters? For the first time ever, the Federal Reserve resurveyed the 2007 participants in 2009 to directly measure how the crisis and recession affected their finances. These results are expected in late 2010.
National Association of Realtors® Research, Profile of Home Buyers and Sellers 2009
This is part one in a two part commentary. The specific results of NAR’s study will follow in the tomorrow’s second installment.
This is one in a series of commentaries by the Research staff of the National Association of REALTORS®.
This is one in a series of commentaries by the Research staff of the National Association of REALTORS®.
"Copyright National Association of REALTORS®, Reprinted with permission."
Did You Know: Global Home Prices
April 19, 2010
By Selma Lewis, Research Economist
According to the the Organization for Economic Co-operation and Development’s (OECD) interim assessment of the economic outlook released last week, G-7 economies will continue to grow in the first half of 2010, but at a slower speed and with different rhythms. OECD is 30-nation think tank based in Paris.
Most interestingly, however, the report showed that at the end of 2009, house prices have turned around in almost 75 percent of the 19 OECD countries.
In a separate article by Deutsche Bank, titled “Housing markets in OECD countries - Risks remain in Europe”, the group discusses how far the correction of house prices has progressed in Europe and the US.
Based on a range of indicators, DB finds that the correction is fairly advanced in the US but has still a considerable way to go in Europe. Further adjustment seems likely in Spain, Ireland, the Netherlands, but also Italy, France, and, to a somewhat lesser extent, in the UK. The need for further house price adjustment in these countries poses risks to both the banking sector and economic growth.
Furthermore, while house price adjustment is advanced or under way in the industrial countries, there is an increasing risk of new bubbles in other regions of the world. This holds in particular for Asian housing markets. House prices have already increased above pre-crisis levels in Shanghai and Hong Kong and they are close to their previous peak in Singapore.
Existing-home sales fell as expected in December after first-time buyers rushed to complete deals during the months leading up to the original November deadline for the tax credit. However, prices rose from December 2008 and annual sales improved in 2009, according to the National Association of REALTORS®.
Existing-home sales—including single-family, townhomes, condominiums and co-ops—fell 16.7 percent to a seasonally adjusted annual rate of 5.45 million units in December from 6.54 million in November, but remain 15 percent above the 4.74 million-unit level in December 2008.
There were approximately 5,156,000 existing-home sales in 2009, which was 4.9 percent higher than the 4,913,000 transactions recorded in 2008. It was the first annual sales gain since 2005.
Tax Credit Creates Swing in Market
Lawrence Yun, NAR chief economist, says there were no surprises in the data.
“It’s significant that home sales remain above year-ago levels, but the market is going through a period of swings driven by the tax credit,” he said. “We’ll likely have another surge in the spring as home buyers take advantage of the extended and expanded tax credit. By early summer the overall market should benefit from more balanced inventory, and sales are on track to rise again in 2010."
However, Yun says, the job market remains a concern and could dampen the housing recovery. "Job creation is key to a continued recovery in the second half of the year,” he says.
An NAR practitioner survey shows first-time buyers purchased 43 percent of homes in December, down from 51 percent in November. Repeat buyers rose to 42 percent of transactions in December from 37 percent in November; the remaining sales were to investors.
The national median existing-home price for all housing types was $178,300 in December, which is 1.5 percent higher than December 2008.
“The median price rose because of an increased number of mid- to upper-priced homes in the sales mix,” Yun says. It was the first year-over-year gain in median price since August 2007.
Falling Inventories
NAR President Vicki Cox Golder said market conditions are challenging in some areas.
“There’s a shortage of lower-priced homes for sale in much of the country, resulting in multiple bids in some areas,” she says. “Raw unsold inventory has been trending down. As the market heats up again this spring, buyers may need to be prepared to move quickly on a particular home."
Total housing inventory at the end of December fell 6.6 percent to 3.29 million existing homes available for sale, which represents a 7.2-month supply at the current sales pace. That is an increase from a 6.5-month supply in November.
Raw unsold inventory is 11.1 percent below a year ago, is at the lowest level since March 2006, and is 28.2 percent below the record of 4.58 million in July 2008.
Distressed homes, which accounted for 32 percent of sales last month, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes in the same area.
For all of 2009, the median price was $173,500, down 12.4 percent from $198,100 in 2008. Distressed homes accounted for 36 percent of total sales last year.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 4.93 percent in December from 4.88 percent in November; the rate was 5.29 percent in December 2008.
Single-Family Home, Condo Sales Dip
Single-family home sales fell 16.8 percent to a seasonally adjusted annual rate of 4.79 million in December from a pace of 5.76 million in November. Sales are 12.7 percent above the 4.25 million level in December 2008. For all of 2009, single-family sales rose 5 percent to 4,566,000.
The median existing single-family home price was $177,500 in December, which is 1.4 percent above a year ago. For all last year, the median price for a single-family home was $173,200, down 11.9 percent from 2008.
Meanwhile, existing condominium and co-op sales fell 15.4 percent to a seasonally adjusted annual rate of 660,000 in December from 780,000 in November. Sales are 34.7 percent higher than the 490,000-unit pace a year ago. For all of 2009, condo sales rose 4.8 percent to 590,000 units.
The median existing condo price was $183,700 in December, up 1 percent from December 2008. For all of last year, the median condo price was $176,100, which is 16.1 percent below 2008.
Regional Breakdown
Here are existing-home sales figures by region:
Northeast: sales dropped 19.5 percent to an annual level of 910,000 in December but are 21.3 percent above a year ago. Median price: $241,700, up 3.2 percent from December 2008.
Midwest: sales fell 25.8 percent in December to a level of 1.15 million but are 8.5 percent higher than December 2008. Median price: $143,200, which is 1.8 percent above a year ago.
South: sales dropped 16.3 percent to an annual pace of 2.01 million in December but are 15.5 percent above December 2008. Median price: $152,000, down 1 percent from a year ago.
West: sales declined 4.8 percent to an annual rate of 1.38 million in December but are 15 percent higher than a year ago. Median price: $236,000, up 2.7 percent from December 2008.
Happy New Year - Here Me GO, into the New Year, 2010!
Welcome to the most current Housing Trends eNewsletter. This eNewsletter is specially designed for you, with national and local housing information that you may find useful whether you’re in the market for a home, thinking about selling your home, or just interested in homeowner issues in general.
Please click on this link to view the JANUARY-2010 Newsletter Newsletter Housing Trends eNewsletter: http://kenwebb.housingtrendsenewsletter.com?Newsletter_ID=239&Period_ID=181
The Housing Trends eNewsletter contains the latest information from the National Association of REALTORS®, the U.S. Census Bureau, Realtor.org reports and other sources.
It also includes press releases with charts and videos, key market indicators and real estate sales and price statistics, a video message by a nationally recognized economist, maps, mortgage rates and calculators, consumer articles, plus local neighborhood information and more.
If you are interested in determining the value of your home, click the “Home Evaluator” link for a free evaluation report:
Sound decisions can only be made with accurate and reliable information, and I am happy to be a trusted resource for you. Thank you for the opportunity to provide you with this monthly eNewsletter, and I look forward to answering any questions you may have and to the opportunity to be your REALTOR® in the future.
For those of us who want to search like an agent does and have access to "Real" MLS information and to be able to see exactly the homes and properties available for sale/lease your best place to go is: http://www.kwrealestate.listingbook.com
This website will continue to provide you the best search tool for all homes and properties available anywhere. There is no other website or service you can get that will provide you this level of service and information. This website allows you school information, neighborhood information, city statistics, loan calculator for any price of home, tax information on each property you look up, excellent search options to pin-point the exact type of home you want to buy.
This also allows you to sneak in and see exactly what is going on in your neighborhood and city. This alone is one of the best ways as a SELLER you can get accurate information on what has sold or is in the process of being sold that compares to your home.
I also have great news for those looking to buy or sell their home and who are in an equity position. First Team has implemented a new way to buy homes that is MUCH faster and offers the best service and best pricing for both buyers and sellers. This offers buyers an option to bypass weeks of negotiations and get to ownership in 1 day! This also offers sellers the best opportunity to get the best offer available without spending weeks going back and forth.
Sound interesting? You bet it does! Want to know more? Are you serious about a home purchase? Are you serious about selling your home? TODAY is the time to get serious about your future. Call or email me anytime at any of the links provided below.
Ken Webb - Realtor OCAR, NAR, CAR F1RST TEAM Real Estate Email: kenwebb@firstteam.com Phone/Text: (949) 243-6649 DRE Lic # 01844181
SEARCH JUST LIKE AN AGENT http://www.kwrealestate.listingbook.com
CURRENT REAL ESTATE NEWS http://kenwebbkwrealestate.blogspot.com
UP TO THE MINUTE UPDATES ON TWITTER http://twitter.com/KW_Real_Estate
STATE WIDE AND LOCAL REAL ESTATE FACTS & FIGURES http://kenwebb.housingtrendsenewsletter.com/
"The finest compliment I could ever receive is a referral from my friends and clients"
The housing market is in the midst of a rocky recovery, but it’s too soon to declare the end of the worst real estate slide since the Great Depression.
Sales of existing homes picked up sharply last month and prices stabilized. But that’s because the market got a big boost from tax credits for first-time home buyers. It remains to be seen whether the momentum will carry over through next year after the program was extended through April.
One clue may lie in Wednesday’s report on new home sales for November, which took an unexpected drop. For technical reasons, the tax break didn’t give new sales the same boost as existing homes. That’s because new sales are recorded when contracts are signed, while existing sales are logged when the sale closes. To get the original $8,000 tax credit, buyers had to close before Nov. 30, so new homes purchased in November likely wouldn't have closed in time to qualify.
The housing outlook is further clouded by a big wave of foreclosures that’s expected to break in the next two years.
“We have a tsunami of foreclosures — 3.5 million people who are 60 days delinquent, seriously delinquent, and probably another 3 million after that who are going to reach that stage,” said Yale University economics professor John Geanakoplos. “All six million of those will probably be kicked out of their houses.”
The housing industry got some holiday cheer Tuesday as the latest monthly data showed the sales of existing homes in November posted the biggest gain in nearly three years. But when the impact of the Nov. 30 tax credit deadline wears off, the housing market could face something of a New Year’s hangover when the December figures are released.
“Existing-home sales are likely to plunge in December,” according to Patrick Newport, U.S. economist at IHS Global Insight.
Because it targeted first-time buyers, the impact of the tax credit was felt most heavily at the low end of the market. More than 70 percent of November sales involved houses priced under $250,000.
To keep the housing recovery going, Congress last month extended the tax credit and expanded it. Under the second round, buyers who have lived in their current homes for at least five years can claim a credit of up to $6,500 on a new home if they sign a purchase agreement by April 30.
The hope is that by next spring, the housing market and economy will begin showing sustainable growth without the help of the government. The risk is that the tax credit simply moves up future sales without creating new demand.
That risk was highlighted by a separate report Wednesday showing that sales of new single-family homes unexpectedly fell to their lowest level in seven months in November. (New home sales account for about 5 percent of the housing market.)
The Commerce Department said new home sales dropped 11.3 percent, the biggest decline since January, to a 355,000 unit annual rate. Still, there were some bright spots in the report. The median sale price for a new home rose 3.8 percent from October to $217,400, the highest level since May.
A sustained housing recovery will depend on several factors, including a recovery in the labor market. Most economists expect the unemployment rate, currently at 10 percent, to remain close to that level for through next year. Without a paycheck, those jobless workers can’t get a mortgage.
The housing market also faces a stiff headwind from the continuing high rate of foreclosures, which drives down prices and adds to the backlog of unsold homes as lenders put those properties back on the market. Foreclosure filings in the U.S. will hit another record this year, with an estimated 3.9 million notices sent to homeowners in default, according to RealtyTrac. A record 14 percent of homeowners with mortgages are either behind on payments or in foreclosure.
“It looks like builders are having a real problem trying to compete with the depressed prices in the existing home market,” said Joel Naroff, president of Naroff Economic Advisors.
Despite three government relief programs since the housing market collapsed in 2007, millions of families are expected to lose their homes over the next two years. Under the latest program launched in March, some 760,000 eligible borrowers have been offered modified loans, but only 31,000 of those trial plans had been made permanent as of last month, according to a report this week from bank regulators.
Part of the reason for the poor showing is that mortgage servicers don't have adequate staff and systems to process the increasing number of trial plans, the report said.
But lenders have also been slow to take more aggressive steps, such as cutting mortgage balances to reflect lost home values. Mortgages that were pooled and sold to investors have also created financial incentives for mortgage companies to drag out the process, according to Geanakoplos.
“They are leaving (owners) in their homes longer and longer because (mortgage servicers) realize they can continue to keep their fees coming, even as the people sit there,” he said.
Effective foreclosure relief is only one piece of the housing outlook puzzle. A sustained recovery will also depend on the cost and availability of credit.
Mortgage rates remain below 5 percent, though they’ve been inching up in recent weeks. Those low rates have been engineered largely by the Federal Reserve through its program to buy $1.25 trillion in mortgage-backed securities. About two-thirds of that has already been spent. In its latest regular policy statement, the Fed included a reminder that the program is set to end next spring. It’s not clear whether rates will begin rising after the Fed stops buying mortgage-packed paper.
Low mortgage rates have helped millions of homeowners reduce payments on their existing homes; roughly three out of four mortgage applications in the first two weeks of December were for refinancing, according to the Mortgage Bankers Association. That will help household budgets and shore up consumer spending, but it hasn’t spurred home buying.
Consumer spending rose for a second straight month in November as incomes recorded their biggest gain in six months, the Commerce Department reported Wednesday.
Falling real estate prices also have helped boost demand for homes by making homes more affordable. The median price of existing homes sold in November was $172,600, down 4.3 percent from a year earlier.
The combination of cheap mortgage money and lower prices has pushed the so-called “affordability” index close to its highest level in nearly two decades, according to the National Association of Home Builders.
As prices stabilize, lenders may become more confident about writing new mortgages, helping sustain demand after government incentives expire, said Richard DeKaser an economist at Woodley Park Research. “I think that we’ll have the baton passed from the public to the private sector as lenders start to loosen up the purse strings," he said.
Tight credit — a reaction to the wave of easy money that sank the housing market in the first place — also could weigh on a sustained housing rebound. To help ease credit, President Barack Obama met this week with community bankers to seek ways to get more loans flowing to small businesses and home buyers. Lenders have argued that credit has slowed because the weak economy has cut the demand.
They have money to lend. Most banks have been steadily rebuilding their capital reserves as they profit from a favorable interest rate environment. But those reserves could take another hit next year unless the job market bounces back.
“We could see a secondary tightening of credit as the losses from 10 percent unemployment and defaults come through,” said Diane Swonk, chief economist at Mesirow Financial. “That’s is what the Fed's concerned about — averting that secondary tightening of credit.”
I am your Local Area for Realtor and Go-To guy. With connections all over the OC & the world - it won't matter where you want to buy or sell. I have the resources to get you the best service.
There are three (3) Brand New Communities being build in Oxnard, CA.
I WORK HARD TO BE SURE YOU HAVE ACCESS TO EVERYTHING NEW!
By Economist Danielle Hale
By Selma Lewis, Research Economist
