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Monday, January 25, 2010
ALL The Real Estate News! All of it!
Friday, January 22, 2010
Median Price of an Existing Home Rose 8.4 Percent
Quick Facts:
· Existing, single-family home sales increased 4 percent in December to a seasonally adjusted rate of
558,320 units on an annualized basis.
· The statewide median price of an existing single-family home increased 0.8 percent in December to
$306,820, compared with November 2009.
· C.A.R.’s Unsold Inventory Index fell to 3.8 months in December, compared with 5.6 months in
December 2008.
LOS ANGELES (Jan. 22) – Home sales increased 1.7 percent in December in California compared with the same period a year ago, while the median price of an existing home rose 8.4 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.
“As expected, the large year-to-year sales gains have diminished substantially compared with earlier in the year,” said C.A.R. President Steve Goddard. “However, home sales in December were strong, and were comparable to sales of late 2008. Activity in December can be attributed in part to the extension and expansion of the home buyer tax credit, as well as near-historic highs in affordability due to current price levels and low interest rates.
“For the second consecutive month, California’s median home price rose year-to-year in December, and had the largest year-to-year increase in more than three years,” said Goddard. “The state’s median price also remained above $300,000 for the second straight month.”
Closed escrow sales of existing, single-family detached homes in California totaled 558,320 in December at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity increased 1.7 percent from the revised 549,190 sales pace recorded in December 2008. Sales in December 2009 increased 4 percent compared with the previous month.
The statewide sales figure represents what the total number of homes sold during 2009 would be if sales maintained the December pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
The median price of an existing, single-family detached home in California during December 2009 was $306,820, an 8.4 percent increase from the revised $283,060 median for December 2008, C.A.R. reported. The December 2009 median price rose 0.8 percent compared with November’s $304,520 median price.
“Home sales were unusually strong in December and were more consistent with peak season trends,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “Historically, the median price declines November through February and then rises in March. However, lean inventory, historically low interest rates, and incentives for home buyers have resulted in California’s housing market experiencing non-seasonal variations.
Full article is available upon request -
Email your First and Last Name, your email and phone number to: kenwebb@me.com
· Existing, single-family home sales increased 4 percent in December to a seasonally adjusted rate of
558,320 units on an annualized basis.
· The statewide median price of an existing single-family home increased 0.8 percent in December to
$306,820, compared with November 2009.
· C.A.R.’s Unsold Inventory Index fell to 3.8 months in December, compared with 5.6 months in
December 2008.
LOS ANGELES (Jan. 22) – Home sales increased 1.7 percent in December in California compared with the same period a year ago, while the median price of an existing home rose 8.4 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.
“As expected, the large year-to-year sales gains have diminished substantially compared with earlier in the year,” said C.A.R. President Steve Goddard. “However, home sales in December were strong, and were comparable to sales of late 2008. Activity in December can be attributed in part to the extension and expansion of the home buyer tax credit, as well as near-historic highs in affordability due to current price levels and low interest rates.
“For the second consecutive month, California’s median home price rose year-to-year in December, and had the largest year-to-year increase in more than three years,” said Goddard. “The state’s median price also remained above $300,000 for the second straight month.”
Closed escrow sales of existing, single-family detached homes in California totaled 558,320 in December at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity increased 1.7 percent from the revised 549,190 sales pace recorded in December 2008. Sales in December 2009 increased 4 percent compared with the previous month.
The statewide sales figure represents what the total number of homes sold during 2009 would be if sales maintained the December pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
The median price of an existing, single-family detached home in California during December 2009 was $306,820, an 8.4 percent increase from the revised $283,060 median for December 2008, C.A.R. reported. The December 2009 median price rose 0.8 percent compared with November’s $304,520 median price.
“Home sales were unusually strong in December and were more consistent with peak season trends,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “Historically, the median price declines November through February and then rises in March. However, lean inventory, historically low interest rates, and incentives for home buyers have resulted in California’s housing market experiencing non-seasonal variations.
Full article is available upon request -
Email your First and Last Name, your email and phone number to: kenwebb@me.com
Daily Forecast Update: Weekly Mortgage Rate Survey
Daily Forecast Update: Weekly Mortgage Rate Survey
January 22, 2010
By Ken Fears, Manager, Regional Economics
Daily Forecast Update
* NAR's monthly official forecast as of January 5th
* GDP 2009 Q4: +4.2%
* GDP 2010 Q1: +2.7%
* GDP 2010 Q2: +2.4%
* Unemployment rate by the mid-2010: 10.1% ↑
* Average 30-year fixed mortgage rate by mid-2010 2009: 5.6%
What does today's data mean for REALTORS® and consumers?
* Good news: mortgage rates have moderated for 2 straight weeks after leaping in early January from record lows.
* Bad news: A string of less than stellar economic news appears to have stunted Wall Street's expectations for a rapid recovery. The reality of a long, slow slog back to a stable economy is more realistic.
* While tax incentives have helped generate a boost to demand, record low mortgage rates paved the way.
* Rates have been near record lows for more than a year, but buyer confidence has only recently been restored resulting in the upward trend in sales witnessed this fall. An early and sharp increase in rates could suspend the housing recovery and cause the economy to stumble. The sour economic news is reining in equities and causing rates to fall…a good sign for a sustainable economic recovery.
Freddie Mac Weekly Mortgage Rate Survey
* The average 30-year fixed rate fell 7 basis points to 4.99% with an average of 0.7 points for the week ending January 21st.
* Rates are 8 basis points higher than their average for the same week in 2009.
January 22, 2010
By Ken Fears, Manager, Regional Economics
Daily Forecast Update
* NAR's monthly official forecast as of January 5th
* GDP 2009 Q4: +4.2%
* GDP 2010 Q1: +2.7%
* GDP 2010 Q2: +2.4%
* Unemployment rate by the mid-2010: 10.1% ↑
* Average 30-year fixed mortgage rate by mid-2010 2009: 5.6%
What does today's data mean for REALTORS® and consumers?
* Good news: mortgage rates have moderated for 2 straight weeks after leaping in early January from record lows.
* Bad news: A string of less than stellar economic news appears to have stunted Wall Street's expectations for a rapid recovery. The reality of a long, slow slog back to a stable economy is more realistic.
* While tax incentives have helped generate a boost to demand, record low mortgage rates paved the way.
* Rates have been near record lows for more than a year, but buyer confidence has only recently been restored resulting in the upward trend in sales witnessed this fall. An early and sharp increase in rates could suspend the housing recovery and cause the economy to stumble. The sour economic news is reining in equities and causing rates to fall…a good sign for a sustainable economic recovery.
Freddie Mac Weekly Mortgage Rate Survey
* The average 30-year fixed rate fell 7 basis points to 4.99% with an average of 0.7 points for the week ending January 21st.
* Rates are 8 basis points higher than their average for the same week in 2009.
Did You Know?
January 13, 2010
By Sophia Stuart, Research Economist
Did You Know: Sources of Downpayment
* Fifty-four percent of buyers who made a downpayment relied on their savings, slightly less than the previous survey.
* Almost one in four of those who made a downpayment used proceeds from the sale of their primary residence; however, that is down from 34 percent in 2008 and 60 percent in 2007.
* A greater share of first-time buyers used their savings as a source of downpayment, while 42 percent of repeat buyers used proceeds from the sale of their primary residence.
* Single males more often used savings as a source of downpayment, while one in five unmarried couples used a gift from friends or relatives as a source of downpayment.
January 13, 2010
January 12, 2010
By Sophia Stuart, Research Economist
Did You Know: Mortgage Application Process
* Just over two-thirds of those who financed their homes said that the mortgage application process was no more difficult than expected.
* The share of those who said that the process was much more difficult increased from seven percent in last year's survey to 11 percent in the current survey.
* Repeat buyers generally had less difficulty than expected compared to first-time buyers. Single males and unmarried couples believe the process was slightly more difficult than they expected compared with married couples and single females.
* When seeking financing for their homes, 93 percent of recent buyers who successfully completed a purchase transaction were not rejected by any mortgage lenders, and 2 percent being rejected by two or more lenders.
January 11, 2010
By Sophia Stuart, Research Economist
Did You Know: Neighborhood Choice
* Many factors influence where a person chooses to purchase a home such as convenience to work, proximity to relatives or friends, and the quality of the school system.
* A majority of all home buyers (64 percent) across different locations listed quality of neighborhood as the most important factor influencing neighborhood choice.
* Convenience to work was the second most important factor with half of respondents citing its importance in choosing their neighborhood.
* Affordability of homes was also very important with 43 percent citing it as a factor in their neighborhood choice.
January 8, 2010
By T.J. Doyle, Research Marketing and Communications Manager
Did You Know: Most Important Factors When Choosing A Real Estate Agent
-> Home buyers rate honesty and trustworthiness among the most important factors when choosing a real estate agent. Nearly one-quarter said that the reputation of an agent was also an important factor. These two factors were considered most important by half of home buyers.
-> The honesty and integrity of a real estate agent was considered very important by the greatest number of buyers - 98 percent.
-> Knowledge of the purchase process, responsiveness, and knowledge of the real estate market were other qualities considered very important by more than 90 percent of home buyers. This pattern has been consistent over time as well.
-> The qualities and skills valued by buyers are nearly the same for first-time and repeat buyers and for buyers of
new and previously occupied homes and among different types of households. Honesty and integrity and knowledge of the purchase process top the list of skills and qualities considered very important by households of all types.
-> For a complete 2009 NAR Profile of Home Buyers and Sellers - available free only for REALTOR® members - For NAR members only.
Thursday, January 21, 2010
Harder to get an Uncle Sam mortgage
Harder to get an Uncle Sam mortgage
Rising defaults on loans insured by the Federal Housing Administration (FHA) have led the agency to impose future policy changes to its home loan program. The FHA provides mortgage insurance on loans made by FHA-approved lenders. Borrowers must meet certain requirements established by the FHA to qualify for the insurance, but lenders bear less risk because the FHA will pay the lender if a homeowner defaults on his or her loan.
MAKING SENSE OF THE STORY FOR CONSUMERS
The FHA is federally mandated to maintain reserve funds at 2 percent or greater. As of November, the agency reported that its fund had declined to .53 percent. The funding is used to cover losses on mortgages insured by the FHA that go into default.
Loans insured by the FHA generally are less expensive to borrowers because of the lower down payment requirements. However, these loans also have fees, such as up-front mortgage insurance. To help the agency raise its cash reserves, the FHA is increasing the up-front mortgage insurance premium from its current 1.75 percent to 2.25 percent. HUD released a Mortgagee Letter today making the premium increase effective in the spring.
The agency also is raising the minimum credit score requirements. Currently, borrowers with FICO scores as low as 500 have been approved for FHA-insured loans. Under the policy changes, new borrowers will be required to have a minimum FICO score of 580 to qualify for the FHA’s 3.5 percent down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10 percent. FHA expects this to take effect in early summer once it passes the normal regulatory process.
The new policy also will reduce the amount of money sellers can provide to home buyers at closing to 3 percent, down from its current 6 percent, of the home’s price. The change brings the agency in line with industry standards and removes the incentive to inflate appraisals. The FHA expects this to take effect in early summer after it passes the normal regulatory process.
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