By Ilyce Glink of CBS Money Watch
What does the U.S. housing market look like without all the life support provided by the federal government?
A little too much like a corpse.
In the wake of the 27 percent drop in existing home sales announced by the National Association of Realtors (NAR) earlier this week to a level last seen 15 years ago, and a 12.1 percent drop in new home sales to a level not ever seen since records started being kept in 1963, Department of Housing and Urban Development (HUD) Secretary Shaun Donovan took to the airwaves this morning to announce that the federal government was going to do everything in its power to restart the housing market, including:
New mortgage program for unemployed borrowers. Apparently the HAMP unemployed borrowers program isn’t exactly catching on fire with lenders.
New FHA refinance program for homeowners who are underwater. Gee, HAMP isn’t working there too well, so perhaps HUD is going to take the very savvy suggestion made by Bill Gross at PIMCO and perhaps refinance all homeowners who are current on their loans to an FHA loan at 4 percent. If 10 million Americans can take advantage of an FHA refinance and lower their payments by $100 per month, the government is betting that at least SOME of that money will find its way into economic firmament, and help pull us out of the recession.
New home buyer tax credits. Donovan didn’t exactly say “Yes” to this one, but he hasn’t ruled it out either.
Let’s just call it like it is, folks. The real estate market is in a depression. It’s not a recession when your sales are down 80 percent or more. It’s not a recession when you’ve wound back sales to where they were 15 years ago.
Will any of these programs pull the housing market out of its depression? I doubt it. As I said more than a year ago, what we need are jobs. Jobs pay the bills - mortgage, credit card, utilities, food, etc. If you don’t have a job, all the government refinancing programs in the world aren’t going to make a difference.
Sunday, August 29, 2010
Friday, August 27, 2010
OPEN HOUSE In CARLSBAD CA. 8/28-8/29
3016 Rancho La Presa Carlsbad, CA. 92009. Come on down and view this delightful twinhome with a downstairs Master Suite on a quiet cul-de-sac in wonderful Rancho Carrillo. This great home with a flexible floor plan features 2 upstairs bedrooms plus a large loft (great as an office, library, gym - you name it), spacious living room w/ soaring ceilings, & an open kitchen (with granite counters) w/ views to the private backyard. You'll enjoy the ease of the downstairs tile floors & the low maintenance yard. Plus, enjoy all that Rancho Carrillo has to offer!
San Diego Prices Decline
San Diego County home prices decline
By Jennifer Davies, UNION-TRIBUNE
Friday, August 27, 2010 at 1:11 p.m.
Even with the horrific housing downturn, we here in San Diego are still pretty cocky about how our housing prices (typically) appreciate more quickly than, say, Dubuque, Iowa. Sure, we have our busts but we have our booms, too. Plus — the argument goes — we have one of the most desirable locales in the country with very little buildable land so our prices should outpace those less-glamourous areas.
But despite all that, San Diego doesn’t hold a candle to Dubuque, Springfield, Ill. or Buffalo, N.Y. when it comes to rising home prices, at least according to a recent report by the Federal Housing Finance Agency. The agency, which oversees Freddie Mac and Fannie Mae, tracks home sales price information by looking at mortgages — both sales and refinances — acquired through those lenders. (The good thing about this index is that it compares how the same homes perform over time. The not-so good thing about it is that looks at only conforming loans of $417,000 so a wide swath of the local market isn’t included. Also, the data is way back from the second quarter.)
In the second quarter, the metro areas with the largest increases in home prices were Springfield, up 2.68 percent from a year ago; Dubuque, up 2.41 percent; San Jose, up 1.89 percent; Orange County, up 1.45 percent; and the Huntington-Ashland area near the borders of Kentucky, West Virginia and Ohio, which was up 1.40 percent.
San Diego, by way of comparison, ranked 50th of the 303 areas surveyed with a decrease in home prices of -1.05 percent.
But what is more interesting is the five-year appreciation numbers. Whereas San Diego County’s home prices are down more than 26 percent in that time frame, Dubuque, for instance, had a 13.67 increase. Other top performers include Shreveport, La., with price gains 15.75 percent; Amarillo, Tex.; up 15.39 percent; and Buffalo, up 13.60 percent.
By Jennifer Davies, UNION-TRIBUNE
Friday, August 27, 2010 at 1:11 p.m.
Even with the horrific housing downturn, we here in San Diego are still pretty cocky about how our housing prices (typically) appreciate more quickly than, say, Dubuque, Iowa. Sure, we have our busts but we have our booms, too. Plus — the argument goes — we have one of the most desirable locales in the country with very little buildable land so our prices should outpace those less-glamourous areas.
But despite all that, San Diego doesn’t hold a candle to Dubuque, Springfield, Ill. or Buffalo, N.Y. when it comes to rising home prices, at least according to a recent report by the Federal Housing Finance Agency. The agency, which oversees Freddie Mac and Fannie Mae, tracks home sales price information by looking at mortgages — both sales and refinances — acquired through those lenders. (The good thing about this index is that it compares how the same homes perform over time. The not-so good thing about it is that looks at only conforming loans of $417,000 so a wide swath of the local market isn’t included. Also, the data is way back from the second quarter.)
In the second quarter, the metro areas with the largest increases in home prices were Springfield, up 2.68 percent from a year ago; Dubuque, up 2.41 percent; San Jose, up 1.89 percent; Orange County, up 1.45 percent; and the Huntington-Ashland area near the borders of Kentucky, West Virginia and Ohio, which was up 1.40 percent.
San Diego, by way of comparison, ranked 50th of the 303 areas surveyed with a decrease in home prices of -1.05 percent.
But what is more interesting is the five-year appreciation numbers. Whereas San Diego County’s home prices are down more than 26 percent in that time frame, Dubuque, for instance, had a 13.67 increase. Other top performers include Shreveport, La., with price gains 15.75 percent; Amarillo, Tex.; up 15.39 percent; and Buffalo, up 13.60 percent.
Tuesday, August 24, 2010
Home Sales Down, Prices Go Up
Daily Real Estate News | August 24, 2010 |
July Existing-Home Sales Fall, But Prices Rise
Existing-home sales were sharply lower in July following expiration of the home buyer tax credit but home prices continued to gain, according to the National Association of REALTORS®.
Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums, and co-ops, dropped 27.2 percent to a seasonally adjusted annual rate of 3.83 million units in July from a downwardly revised 5.26 million in June, and are 25.5 percent below the 5.14 million-unit level in July 2009. Sales are at the lowest level since the total existing-home sales series launched in 1999, and single family sales – accounting for the bulk of transactions – are at the lowest level since May of 1995.
Lawrence Yun, NAR chief economist, said a soft sales pace likely will continue for a few additional months. “Consumers rationally jumped into the market before the deadline for the home buyer tax credit expired. Since May, after the deadline, contract signings have been notably lower and a pause period for home sales is likely to last through September,” he said. “However, given the rock-bottom mortgage interest rates and historically high housing affordability conditions, the pace of a sales recovery could pick up quickly, provided the economy consistently adds jobs.
“Even with sales pausing for a few months, annual sales are expected to reach 5 million in 2010 because of healthy activity in the first half of the year. To place in perspective, annual sales averaged 4.9 million in the past 20 years, and 4.4 million over the past 30 years,” Yun added.
Mortgage Rates Dip
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.56 percent in July from 4.74 percent in June; the rate was 5.22 percent in July 2009. Last week, Freddie Mac reported the 30-year fixed was down to 4.42 percent.
The national median existing-home price for all housing types was $182,600 in July, up 0.7 percent from a year ago. Distressed home sales are unchanged from June, accounting for 32 percent of transactions in July; they were 31 percent in July 2009.
“Thanks to the home buyer tax credit, home values have been stable for the past 18 months despite heavy job losses,” Yun said. “Over the short term, high supply in relation to demand clearly favors buyers. However, given that home values are back in line relative to income, and from very low new-home construction, there is not likely to be any measurable change in home prices going forward.”
Inventory Rises
Total housing inventory at the end of July increased 2.5 percent to 3.98 million existing homes available for sale, which represents a 12.5-month supply at the current sales pace, up from an 8.9-month supply in June. Raw unsold inventory is still 12.9 percent below the record of 4.58 million in July 2008.
NAR President Vicki Cox Golder said there are great opportunities now for buyers who weren’t able to take advantage of the tax credit. “Mortgage interest rates are at record lows, home prices have firmed and there is good selection of property in most areas, so buyers with good jobs and favorable credit ratings find themselves in a fortunate position,” she said.
A parallel NAR practitioner survey shows first-time buyers purchased 38 percent of homes in July, down from 43 percent in June. Investors accounted for 19 percent of sales in July, up from 13 percent in June; the balance were to repeat buyers. All-cash sales rose to 30 percent in July from 24 percent in June.
Breakdown of the Numbers
• Single-family home sales dropped 27.1 percent to a seasonally adjusted annual rate of 3.37 million in July from a pace of 4.62 million in June, and are 25.6 percent below the 4.53 million level in July 2009; they were the lowest since May 1995 when the sales rate was 3.34 million.
• The median existing single-family home price was $183,400 in July, which is 0.9 percent above a year ago.
• Single-family median existing-home prices were higher in 11 out of 19 metropolitan statistical areas reported in July in comparison with July 2009 (the price in one of 20 tracked markets was not available). However, existing single-family home sales fell in all 20 areas from a year ago.
• Existing condominium and co-op sales fell 28.1 percent to a seasonally adjusted annual rate of 460,000 in July from 640,000 in June, and are 24.0 percent below the 605,000-unit level in July 2009. The median existing condo price was $176,800 in July, down 1.7 percent from a year ago.
By Region
• Existing-home sales in the Northeast dropped 29.5 percent to an annual pace of 620,000 in July and are 30.3 percent lower than a year ago. The median price in the Northeast was $263,800, up 4.8 percent from July 2009.
• Existing-home sales in the Midwest fell 35.0 percent in July to a level of 800,000 and are 33.3 percent below July 2009. The median price in the Midwest was $151,600, down 2.8 percent from a year ago.
• In the South, existing-home sales dropped 22.6 percent to an annual pace of 1.54 million in July and are 19.8 percent below a year ago. The median price in the South was $156,300, down 3.3 percent from July 2009.
• Existing-home sales in the West fell 25.0 percent to an annual level of 870,000 in July and are 23.0 percent below a year ago. The median price in the West was $224,800, up 3.3 percent from July 2009.
Source: NAR
July Existing-Home Sales Fall, But Prices Rise
Existing-home sales were sharply lower in July following expiration of the home buyer tax credit but home prices continued to gain, according to the National Association of REALTORS®.
Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums, and co-ops, dropped 27.2 percent to a seasonally adjusted annual rate of 3.83 million units in July from a downwardly revised 5.26 million in June, and are 25.5 percent below the 5.14 million-unit level in July 2009. Sales are at the lowest level since the total existing-home sales series launched in 1999, and single family sales – accounting for the bulk of transactions – are at the lowest level since May of 1995.
Lawrence Yun, NAR chief economist, said a soft sales pace likely will continue for a few additional months. “Consumers rationally jumped into the market before the deadline for the home buyer tax credit expired. Since May, after the deadline, contract signings have been notably lower and a pause period for home sales is likely to last through September,” he said. “However, given the rock-bottom mortgage interest rates and historically high housing affordability conditions, the pace of a sales recovery could pick up quickly, provided the economy consistently adds jobs.
“Even with sales pausing for a few months, annual sales are expected to reach 5 million in 2010 because of healthy activity in the first half of the year. To place in perspective, annual sales averaged 4.9 million in the past 20 years, and 4.4 million over the past 30 years,” Yun added.
Mortgage Rates Dip
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.56 percent in July from 4.74 percent in June; the rate was 5.22 percent in July 2009. Last week, Freddie Mac reported the 30-year fixed was down to 4.42 percent.
The national median existing-home price for all housing types was $182,600 in July, up 0.7 percent from a year ago. Distressed home sales are unchanged from June, accounting for 32 percent of transactions in July; they were 31 percent in July 2009.
“Thanks to the home buyer tax credit, home values have been stable for the past 18 months despite heavy job losses,” Yun said. “Over the short term, high supply in relation to demand clearly favors buyers. However, given that home values are back in line relative to income, and from very low new-home construction, there is not likely to be any measurable change in home prices going forward.”
Inventory Rises
Total housing inventory at the end of July increased 2.5 percent to 3.98 million existing homes available for sale, which represents a 12.5-month supply at the current sales pace, up from an 8.9-month supply in June. Raw unsold inventory is still 12.9 percent below the record of 4.58 million in July 2008.
NAR President Vicki Cox Golder said there are great opportunities now for buyers who weren’t able to take advantage of the tax credit. “Mortgage interest rates are at record lows, home prices have firmed and there is good selection of property in most areas, so buyers with good jobs and favorable credit ratings find themselves in a fortunate position,” she said.
A parallel NAR practitioner survey shows first-time buyers purchased 38 percent of homes in July, down from 43 percent in June. Investors accounted for 19 percent of sales in July, up from 13 percent in June; the balance were to repeat buyers. All-cash sales rose to 30 percent in July from 24 percent in June.
Breakdown of the Numbers
• Single-family home sales dropped 27.1 percent to a seasonally adjusted annual rate of 3.37 million in July from a pace of 4.62 million in June, and are 25.6 percent below the 4.53 million level in July 2009; they were the lowest since May 1995 when the sales rate was 3.34 million.
• The median existing single-family home price was $183,400 in July, which is 0.9 percent above a year ago.
• Single-family median existing-home prices were higher in 11 out of 19 metropolitan statistical areas reported in July in comparison with July 2009 (the price in one of 20 tracked markets was not available). However, existing single-family home sales fell in all 20 areas from a year ago.
• Existing condominium and co-op sales fell 28.1 percent to a seasonally adjusted annual rate of 460,000 in July from 640,000 in June, and are 24.0 percent below the 605,000-unit level in July 2009. The median existing condo price was $176,800 in July, down 1.7 percent from a year ago.
By Region
• Existing-home sales in the Northeast dropped 29.5 percent to an annual pace of 620,000 in July and are 30.3 percent lower than a year ago. The median price in the Northeast was $263,800, up 4.8 percent from July 2009.
• Existing-home sales in the Midwest fell 35.0 percent in July to a level of 800,000 and are 33.3 percent below July 2009. The median price in the Midwest was $151,600, down 2.8 percent from a year ago.
• In the South, existing-home sales dropped 22.6 percent to an annual pace of 1.54 million in July and are 19.8 percent below a year ago. The median price in the South was $156,300, down 3.3 percent from July 2009.
• Existing-home sales in the West fell 25.0 percent to an annual level of 870,000 in July and are 23.0 percent below a year ago. The median price in the West was $224,800, up 3.3 percent from July 2009.
Source: NAR
Saturday, August 21, 2010
A Great Voice For A Great Cause
Five-Time Grammy Award Winning Christopher Cross to Headline Benefit Concert to Solve Family Homelessness at the renovated Moonlight Amphitheatre in Vista, California on October 16, 2010.
Full story: http://soulutionsforchange.org
According to the National Center of Family Homelessness, one in 50 children in America experience homelessness annually - more than 1.5 million children. Their estimated high school graduation rate is less than 25%. For those who do graduate, few are proficient in reading and math. 292,624 California children experience homelessness each year.
Full story: http://soulutionsforchange.org
According to the National Center of Family Homelessness, one in 50 children in America experience homelessness annually - more than 1.5 million children. Their estimated high school graduation rate is less than 25%. For those who do graduate, few are proficient in reading and math. 292,624 California children experience homelessness each year.
Friday, August 13, 2010
Mortgage Rates Still Falling
By ANDREW KEATTS, The Daily Transcript
Monday, August 9, 2010
Mirroring the national trend, average mortgage rates continued to fall in San Diego County during the week ending Aug. 6, according to numbers released by the San Diego Chapter of the California Association of Mortgage Professionals (SD-CAMP).
A 30-year fixed mortgage in San Diego carries an average interest rate of 4.075 percent, down from 4.1 percent last week. Interest on 15-year fixed loans remained at 3.725 percent.
Freddie Mac (NYSE: FRE) reported last week that 30-year fixed loans during the same period hit an all-time low of 4.49 percent, down from 4.45 percent the week previous and 5.22 percent a year ago.
Interest rates for 15-year fixed mortgages during the period were 3.95 percent, down from 4 percent a week ago and 4.63 percent a year ago.
Conventional seven-year ARM rates remained at 3.25 percent in the county. Rates on five- and three-year ARMs were 2.95 and 2.925 percent, down from the previous week when both were 3.031 percent.
Thirty-year fixed FHA and VA loans were both 4.225 percent, up from the week previous when FHA loans were 4.175 percent and VA loans were 4.188 percent.
"This is a continuation of the national trend with slight adjustments," said David Van Waldick, president elect for 2011 of SD-CAMP and principal of Western Mortgage in Carlsbad, adding that the averages can be affected in any given week by market conditions or an individual lender’s position.
Warning that predicting short-term fluctuations of mortgage rates is difficult because they are affected by global economic developments, Van Waldick said he could envision rates continuing to decline, setting 3.5 percent on a 30-year fixed loan as the absolute basement.
"You could argue that given government stimulus and bank borrowing rates, that we’d see rates lower still," he said. "With the Fed charging banks at essentially 0 percent interest, you could say they should be passing this on to consumers. Clearly banks seem to be holding a little juice in their own pockets."
He said the increases in rates for FHA and VA loans could be attributed to adjustments from individual lenders, but speculated that they might be the result of the Department of Housing and Urban Development’s announcement last week that it would reduce upfront premiums on FHA loans while increasing monthly premiums.
The averages reflect the published rates of five major mortgage lenders or banks in San Diego County for each of the six mortgage types.
Marsha Lenyk, president of Award Mortgage Inc. compiled the rates on Friday, Aug. 6.
SD-CAMP’s averages assume a loan amount up to the conforming loan limit of $417,000, a maximum loan-to-value of 80 percent and an interest rate with one point origination fee for borrowers with a minimum credit score of 720 -- with fully documented income for a single-family, detached, owner-occupied, primary residence
Monday, August 9, 2010
Mirroring the national trend, average mortgage rates continued to fall in San Diego County during the week ending Aug. 6, according to numbers released by the San Diego Chapter of the California Association of Mortgage Professionals (SD-CAMP).
A 30-year fixed mortgage in San Diego carries an average interest rate of 4.075 percent, down from 4.1 percent last week. Interest on 15-year fixed loans remained at 3.725 percent.
Freddie Mac (NYSE: FRE) reported last week that 30-year fixed loans during the same period hit an all-time low of 4.49 percent, down from 4.45 percent the week previous and 5.22 percent a year ago.
Interest rates for 15-year fixed mortgages during the period were 3.95 percent, down from 4 percent a week ago and 4.63 percent a year ago.
Conventional seven-year ARM rates remained at 3.25 percent in the county. Rates on five- and three-year ARMs were 2.95 and 2.925 percent, down from the previous week when both were 3.031 percent.
Thirty-year fixed FHA and VA loans were both 4.225 percent, up from the week previous when FHA loans were 4.175 percent and VA loans were 4.188 percent.
"This is a continuation of the national trend with slight adjustments," said David Van Waldick, president elect for 2011 of SD-CAMP and principal of Western Mortgage in Carlsbad, adding that the averages can be affected in any given week by market conditions or an individual lender’s position.
Warning that predicting short-term fluctuations of mortgage rates is difficult because they are affected by global economic developments, Van Waldick said he could envision rates continuing to decline, setting 3.5 percent on a 30-year fixed loan as the absolute basement.
"You could argue that given government stimulus and bank borrowing rates, that we’d see rates lower still," he said. "With the Fed charging banks at essentially 0 percent interest, you could say they should be passing this on to consumers. Clearly banks seem to be holding a little juice in their own pockets."
He said the increases in rates for FHA and VA loans could be attributed to adjustments from individual lenders, but speculated that they might be the result of the Department of Housing and Urban Development’s announcement last week that it would reduce upfront premiums on FHA loans while increasing monthly premiums.
The averages reflect the published rates of five major mortgage lenders or banks in San Diego County for each of the six mortgage types.
Marsha Lenyk, president of Award Mortgage Inc. compiled the rates on Friday, Aug. 6.
SD-CAMP’s averages assume a loan amount up to the conforming loan limit of $417,000, a maximum loan-to-value of 80 percent and an interest rate with one point origination fee for borrowers with a minimum credit score of 720 -- with fully documented income for a single-family, detached, owner-occupied, primary residence
Saturday, August 7, 2010
Over Priced Homes Don't Sell Well
Overpriced Homes-Sell Slower and For Less If there’s anything we can take away from the plethora of Bank Owned Foreclosures is they certainly know how to price a home to move!
I maintain that you almost always shoot yourself in the foot by overpricing your home. Your home will almost always sale at or above market value by pricing at or below market value.
So why is that? Well think back at when YOU were buying a home. Remember when a “great deal” came on the market and everybody and their agents were “swarming” to the open house? You placed your offer only to find out their were 10 other offers and they were going above the asking price? This “bargain price” created an auction affect and got people excited. THAT is how banks are pricing their homes and if you want your home to move quickly and for the most amount of money, this is a winning strategy.
So why don’t sellers do it? I think it’s because there’s a little voice inside of our head (and pocketbook) that says “what if”.
“What if”- I can get $50K over market value. (even if someone were excited enough about your home to pay $50K over appraised value, their lender won’t loan the money if the value isn’t there. No loan, no buyer)
“What if”- I don’t get multiple offers and I only get one offer (May be still overpriced!)
Often fear (and greed) hold us back from making smart choices! Don’t feel bad though, even Real Estate Agents are guilty of senselessly overpricing their homes. Somehow when it’s our turn to sell all of our “market knowledge” becomes goo and leaks out of our ears! It’s like the hairdresser with bad hair!
The bottom line is, almost always, an Over Priced House will sit on the market longer and sell for less than it should have had it been priced strategically from the beginning.
Copyright © 2010 By Stephen Munson,Munson RealtyPasadena|Overpriced Homes-Sell Slower and For Less*overpriced homes,overpriced house
I maintain that you almost always shoot yourself in the foot by overpricing your home. Your home will almost always sale at or above market value by pricing at or below market value.
So why is that? Well think back at when YOU were buying a home. Remember when a “great deal” came on the market and everybody and their agents were “swarming” to the open house? You placed your offer only to find out their were 10 other offers and they were going above the asking price? This “bargain price” created an auction affect and got people excited. THAT is how banks are pricing their homes and if you want your home to move quickly and for the most amount of money, this is a winning strategy.
So why don’t sellers do it? I think it’s because there’s a little voice inside of our head (and pocketbook) that says “what if”.
“What if”- I can get $50K over market value. (even if someone were excited enough about your home to pay $50K over appraised value, their lender won’t loan the money if the value isn’t there. No loan, no buyer)
“What if”- I don’t get multiple offers and I only get one offer (May be still overpriced!)
Often fear (and greed) hold us back from making smart choices! Don’t feel bad though, even Real Estate Agents are guilty of senselessly overpricing their homes. Somehow when it’s our turn to sell all of our “market knowledge” becomes goo and leaks out of our ears! It’s like the hairdresser with bad hair!
The bottom line is, almost always, an Over Priced House will sit on the market longer and sell for less than it should have had it been priced strategically from the beginning.
Copyright © 2010 By Stephen Munson,Munson RealtyPasadena|Overpriced Homes-Sell Slower and For Less*overpriced homes,overpriced house
Friday, August 6, 2010
Mortgage Rate Falls Under 4.5%
Freddie Mac reports that long-term mortgage rates moved south again this week.
Interest on 30-year fixed loans hit a new low of 4.49 percent, compared to 4.54 percent last week and 5.22 percent a year ago; and the 15-year mortgage landed at 3.95 percent, down from 4 percent last week and 4.63 percent a year ago.
Five-year adjustable-rate mortgages reached a new low of 3.63 percent, down from 3.76 percent last week and 4.73 percent a year ago; while one-year ARMs fell to 3.55 percent from 3.64 percent last week and 4.78 percent a year ago.
Source: The Wall Street Journal, Amy Hoak and Nick Timiraos (08/06/10)
Interest on 30-year fixed loans hit a new low of 4.49 percent, compared to 4.54 percent last week and 5.22 percent a year ago; and the 15-year mortgage landed at 3.95 percent, down from 4 percent last week and 4.63 percent a year ago.
Five-year adjustable-rate mortgages reached a new low of 3.63 percent, down from 3.76 percent last week and 4.73 percent a year ago; while one-year ARMs fell to 3.55 percent from 3.64 percent last week and 4.78 percent a year ago.
Source: The Wall Street Journal, Amy Hoak and Nick Timiraos (08/06/10)
Monday, August 2, 2010
Prudential Real Estate Ranks Highest for Seller Satisfaction
J.D. Power and Associates announced July 28 that the Prudential Real Estate Network ranked “Highest Overall Satisfaction for Home Sellers among National Full Service Real Estate Firms” in J.D. Power and Associates' 2010 Home Buyer/Seller Study. This marks the second time in three years that the Network ranked highest in seller satisfaction.
The annual study measures customer satisfaction of home sellers and buyers with major national real estate companies. Overall satisfaction is determined by examining four factors for the home-selling experience: agent (44%); marketing (30%); office (15%); and services (11%). Among home sellers, Prudential Real Estate scored highest on a 1,000-point scale and received particularly high ratings from customers in the marketing and agent factors.
PRERS Chairman Jim Mallozzi said the award speaks for the quality and consistency of the Prudential Real Estate Network. “Affiliate to affiliate, our sales professionals are the local-market experts who market and price homes right, while providing attentive service,” Mallozzi said.
The annual study measures customer satisfaction of home sellers and buyers with major national real estate companies. Overall satisfaction is determined by examining four factors for the home-selling experience: agent (44%); marketing (30%); office (15%); and services (11%). Among home sellers, Prudential Real Estate scored highest on a 1,000-point scale and received particularly high ratings from customers in the marketing and agent factors.
PRERS Chairman Jim Mallozzi said the award speaks for the quality and consistency of the Prudential Real Estate Network. “Affiliate to affiliate, our sales professionals are the local-market experts who market and price homes right, while providing attentive service,” Mallozzi said.
Saturday, July 31, 2010
Finding a Realtor® by Accident
When someone decides it is time to sell their home, they interview several Realtors® from different companies to determine which one is best for them. They want someone who will represent them and someone they feel will do an effective job at marketing their home.
However, when someone decides to buy a home, they usually end up with their Realtor® through sheer accident. Why don't home buyers search for a Realtor® the same way that home sellers do?
Instead, homebuyers usually end up with a Realtor® as a result of answering an advertisement. The advertisement will give a brief summary of a home available for sale along with the price, but it says nothing at all about the Realtor.
So...
...does it really make a difference?
Listing Agents and Selling Agents
You see, there are two "sides" to every sale. The listing side and the selling side. Most deals have an agent representing each side, so there are generally two agents involved The seller's side is represented by the listing agent. The buyer's side is represented by the selling agent (also known as the buyer's agent).
Agents can deal with both buyers and sellers, but the majority tend to focus their efforts on one or the other. Some even exclusively handle either buyers or sellers.
So what should you do?
We simply recommend that you take as much care to hire a real estate agent as you would for any other professional. Ask questions. Ask about education, experience, and focus.
After all, buying your next house is probably the biggest purchase you've ever made in your life. Does it make more sense to find your agent by accident...or by design?
You can find me by Design. I'm Thomas J. Farris of theSDRealtor.com, Let me help you with any of your real estate needs. thomasjfarris@gmail.com
However, when someone decides to buy a home, they usually end up with their Realtor® through sheer accident. Why don't home buyers search for a Realtor® the same way that home sellers do?
Instead, homebuyers usually end up with a Realtor® as a result of answering an advertisement. The advertisement will give a brief summary of a home available for sale along with the price, but it says nothing at all about the Realtor.
So...
...does it really make a difference?
Listing Agents and Selling Agents
You see, there are two "sides" to every sale. The listing side and the selling side. Most deals have an agent representing each side, so there are generally two agents involved The seller's side is represented by the listing agent. The buyer's side is represented by the selling agent (also known as the buyer's agent).
Agents can deal with both buyers and sellers, but the majority tend to focus their efforts on one or the other. Some even exclusively handle either buyers or sellers.
So what should you do?
We simply recommend that you take as much care to hire a real estate agent as you would for any other professional. Ask questions. Ask about education, experience, and focus.
After all, buying your next house is probably the biggest purchase you've ever made in your life. Does it make more sense to find your agent by accident...or by design?
You can find me by Design. I'm Thomas J. Farris of theSDRealtor.com, Let me help you with any of your real estate needs. thomasjfarris@gmail.com
Friday, July 30, 2010
Record Lows Continue For Mortgage Rates
Record Lows Continue for Mortgage Rates
The 30-year fixed mortgage rate fell to a new low of 4.54 percent this week from 4.56 percent last week and an average of 5.25 percent a year ago.
The 15-year fixed loan rate also hit a record low of 4 percent, down from 4.03 percent a week ago and 4.69 percent last year. The five-year adjustable-rate mortgage averaged 3.76 percent, compared to 3.79 percent last week and 4.75 percent a year earlier; and one-year ARMs averaged 3.64 percent, down from 3.7 percent and 4.80 percent, respectively.
Source: The Wall Street Journal, Nathan Becker (07/30/10)
The 30-year fixed mortgage rate fell to a new low of 4.54 percent this week from 4.56 percent last week and an average of 5.25 percent a year ago.
The 15-year fixed loan rate also hit a record low of 4 percent, down from 4.03 percent a week ago and 4.69 percent last year. The five-year adjustable-rate mortgage averaged 3.76 percent, compared to 3.79 percent last week and 4.75 percent a year earlier; and one-year ARMs averaged 3.64 percent, down from 3.7 percent and 4.80 percent, respectively.
Source: The Wall Street Journal, Nathan Becker (07/30/10)
Thursday, July 29, 2010
Home Affordability the Best In Decades
There is mounting evidence that the residential real estate prices are picking up momentum, even though naysayers continue to suggest another sharp drop is just around the corner.
Tuesday's Case-Shiller home price index shows that San Diego has seen prices increase 12.4 percent in the past 12 months, second only to San Francisco among the top 20 metropolitan areas in the country.
So, set aside the real estate bulls and bears that have emotional opinions about where prices may be headed. Instead, what do portfolio managers who run real estate mutual funds think about the current market conditions?
Remember, these people can't just hope prices go up or down, they have to make investing decisions to protect their portfolios both when prices are rising or falling.
Daniel Kelley is the lead real estate analyst and portfolio manager of the Fidelity Select Construction and Housing Portfolio.
"Having just gone through a potentially once-in-a-lifetime down market, there is a bright light. Home affordability is the best in decades. In fact, on average, today's homebuyers have the lowest mortgage payments as a percentage of income in 30 years," wrote Kelley in a recent research report.
He also points out that inventories of homes for sale are at 40-year lows, meaning that homebuilders could be at a point where they could actually begin building homes again. The inventory of new homes for sale plunged last month from 9.6 months to just 7.6 months.
"I think well-capitalized public homebuilder companies are particularly well positioned to benefit from any demand improvement. These companies have had to survive through the worst market of our generation and many of the weaker firms went bankrupt," adds Kelley.
He adds that when sales ultimately pick up, new homeowners will be anxious to make their new abodes more livable, meaning trips to Home Depot and Lowe's.
"As the homebuilding rebound gains traction, companies in the building products group should benefit from improved capacity utilization rates. Homeowners looking to put their homes back on the market are frequenting home improvement retailers to make necessary repairs and updates in order to increase the sale price," said Kelley.
What about the commercial real estate situation? Kelley's colleague at Fidelity, Steve Buller, who manages the Real Estate Investment Portfolio, has a different opinion that most observers.
"While some commentators are calling commercial real estate the next shoe to drop, I don't believe it. In fact, you could argue that we've already seen the worst of the commercial real estate crisis.
Last year, commercial real estate prices had fallen roughly 40 percent from the peak. However, commercial real estate property prices have steadily risen, climbing 20 percent since their trough in May 2009," said Buller.
History says that real estate investment trusts -- and the stocks they own - have a tendency to rise months ahead of any actual turnaround in the markets.
When -- as always happens -- this recession comes to an end, many nonbelievers will find themselves left in the dust as markets move back into growth. The only problem, of course, is no one knows exactly when that will happen. - From George Chamberlin
Tuesday's Case-Shiller home price index shows that San Diego has seen prices increase 12.4 percent in the past 12 months, second only to San Francisco among the top 20 metropolitan areas in the country.
So, set aside the real estate bulls and bears that have emotional opinions about where prices may be headed. Instead, what do portfolio managers who run real estate mutual funds think about the current market conditions?
Remember, these people can't just hope prices go up or down, they have to make investing decisions to protect their portfolios both when prices are rising or falling.
Daniel Kelley is the lead real estate analyst and portfolio manager of the Fidelity Select Construction and Housing Portfolio.
"Having just gone through a potentially once-in-a-lifetime down market, there is a bright light. Home affordability is the best in decades. In fact, on average, today's homebuyers have the lowest mortgage payments as a percentage of income in 30 years," wrote Kelley in a recent research report.
He also points out that inventories of homes for sale are at 40-year lows, meaning that homebuilders could be at a point where they could actually begin building homes again. The inventory of new homes for sale plunged last month from 9.6 months to just 7.6 months.
"I think well-capitalized public homebuilder companies are particularly well positioned to benefit from any demand improvement. These companies have had to survive through the worst market of our generation and many of the weaker firms went bankrupt," adds Kelley.
He adds that when sales ultimately pick up, new homeowners will be anxious to make their new abodes more livable, meaning trips to Home Depot and Lowe's.
"As the homebuilding rebound gains traction, companies in the building products group should benefit from improved capacity utilization rates. Homeowners looking to put their homes back on the market are frequenting home improvement retailers to make necessary repairs and updates in order to increase the sale price," said Kelley.
What about the commercial real estate situation? Kelley's colleague at Fidelity, Steve Buller, who manages the Real Estate Investment Portfolio, has a different opinion that most observers.
"While some commentators are calling commercial real estate the next shoe to drop, I don't believe it. In fact, you could argue that we've already seen the worst of the commercial real estate crisis.
Last year, commercial real estate prices had fallen roughly 40 percent from the peak. However, commercial real estate property prices have steadily risen, climbing 20 percent since their trough in May 2009," said Buller.
History says that real estate investment trusts -- and the stocks they own - have a tendency to rise months ahead of any actual turnaround in the markets.
When -- as always happens -- this recession comes to an end, many nonbelievers will find themselves left in the dust as markets move back into growth. The only problem, of course, is no one knows exactly when that will happen. - From George Chamberlin
Wednesday, July 28, 2010
CalHFA loans???
In order to qualify for a CalHFA loan, certain requirements must be met. They are:
•Be a first-time homebuyer.
(CalHFA considers you a first-time homebuyer if you have not owned and occupied your own home during the last 3 years.).
(This requirement is not necessary if the property is located in a Federally designated "Targeted Area*”)
•Have an annual household/family income within CalHFA’s income limits for the family size and county in which the home is located.
•Purchase a home that is within CalHFA’s sales price limits for the family size and county in which the home is located.
•Live in the home you are purchasing for the entire term of the loan, or until the home is sold or refinanced.
•Meet credit, income and loan requirements of the CalHFA lender and the mortgage insurer.
•Be a citizen or other national of the United States or a qualified alien.
•All borrowers must have completed homebuyer education counseling and received a certificate of completion through an eligible homebuyer counseling organization.
◦CalHFA will accept a homebuyer’s education counseling certificate of completion issued through Fannie Mae or Freddie Mac identified counseling administration agencies, mortgage insurance companies, or HUD-approved homebuyer counselors. CalHFA accepts education completion via online, face-to-face, or phone.
■Fannie Mae Homebuyer Counseling Counselors/Administrators Search
■Freddie Mac Homebuyer Counseling Counselors/Administrators Search
■Genworth Homebuyer Counseling Online Option
■HUD-approved Housing Counselors
■U.S. Department of Housing and Urban Development
451 7th Street, S.W., Washington, DC 20410
Telephone: (202) 708-1112
Of course you can always contact me at thomasjfarris@gmail.com and I can help you with any of your Real Estate needs. :-D
•Be a first-time homebuyer.
(CalHFA considers you a first-time homebuyer if you have not owned and occupied your own home during the last 3 years.).
(This requirement is not necessary if the property is located in a Federally designated "Targeted Area*”)
•Have an annual household/family income within CalHFA’s income limits for the family size and county in which the home is located.
•Purchase a home that is within CalHFA’s sales price limits for the family size and county in which the home is located.
•Live in the home you are purchasing for the entire term of the loan, or until the home is sold or refinanced.
•Meet credit, income and loan requirements of the CalHFA lender and the mortgage insurer.
•Be a citizen or other national of the United States or a qualified alien.
•All borrowers must have completed homebuyer education counseling and received a certificate of completion through an eligible homebuyer counseling organization.
◦CalHFA will accept a homebuyer’s education counseling certificate of completion issued through Fannie Mae or Freddie Mac identified counseling administration agencies, mortgage insurance companies, or HUD-approved homebuyer counselors. CalHFA accepts education completion via online, face-to-face, or phone.
■Fannie Mae Homebuyer Counseling Counselors/Administrators Search
■Freddie Mac Homebuyer Counseling Counselors/Administrators Search
■Genworth Homebuyer Counseling Online Option
■HUD-approved Housing Counselors
■U.S. Department of Housing and Urban Development
451 7th Street, S.W., Washington, DC 20410
Telephone: (202) 708-1112
Of course you can always contact me at thomasjfarris@gmail.com and I can help you with any of your Real Estate needs. :-D
Monday, July 26, 2010
Mr. Mojo Risin is Selling
The house that Doors frontman Jim Morrison once lived in with longtime love Pamela Courson is being sold for $1.19 million. On Laurel Canyon, the house was the original inspiration for the song "Love Street" and comes complete with custom-designed furniture, outdoor patios and fire pits, and an outdoor shower - perfect for entertaining all your closest hippy-rocker friends. There's another shower of note in this house: the famed "secret shower" where Jim wrote lyrics and poetry on the bathroom walls.
Saturday, July 24, 2010
San Diego Foreclosures Lowest in Three Years
San Diego County had fewer mortgage defaults and foreclosures in the second quarter than it has had in the past three years, according to a report released today by MDA DataQuick, a real-estate research firm based in La Jolla.
Countywide, 5,458 homes went into default during the second quarter, a 45 percent drop from the total of 9,866 during the same period of last year. That’s the lowest number since the second quarter of 2007, just as the county was slipping into recession.
Foreclosures dropped 6 percent from 3,518 in the second quarter of 2009 to 3,315.
The same trend is showing up throughout California, with the number of defaults dropping for five consecutive months, resulting in a 44 percent year-to-year drop. Foreclosures, however, rose by 4 percent, driven partly by jumps in relatively pricy neighborhoods in Orange County, San Mateo , Marin, Los Angeles, Santa Barbara and San Francisco counties.
John Walsh, DataQuick’s president, said there were several reasons for the decline in defaults, including “motivated sellers and accommodating lenders” who have been doing more short sales; public policy, including tax incentives for homebuyers; and a rise in prices over the past year.
Walsh said that if prices continue to rise, “fewer homeowners will find themselves under water, which is a significant factor in letting a home go.”
Out of the 85 ZIP codes in the county, only two had a rise in defaults: Coronado and Del Mar. Two others had the same number this year as last year: Borrego Springs and the area around Rancho Santa Fe’s post office. Except for Borrego Springs, those neighborhoods are among the priciest in the county, with median home prices above $1 million.
DataQuick noted that statewide, mortgage defaults spread from lower-cost markets into more expensive neighborhoods, although that trend appears to be leveling off.
Dean Calbreath: (619) 293-1891; dean.calbreath@uniontrib.com
Countywide, 5,458 homes went into default during the second quarter, a 45 percent drop from the total of 9,866 during the same period of last year. That’s the lowest number since the second quarter of 2007, just as the county was slipping into recession.
Foreclosures dropped 6 percent from 3,518 in the second quarter of 2009 to 3,315.
The same trend is showing up throughout California, with the number of defaults dropping for five consecutive months, resulting in a 44 percent year-to-year drop. Foreclosures, however, rose by 4 percent, driven partly by jumps in relatively pricy neighborhoods in Orange County, San Mateo , Marin, Los Angeles, Santa Barbara and San Francisco counties.
John Walsh, DataQuick’s president, said there were several reasons for the decline in defaults, including “motivated sellers and accommodating lenders” who have been doing more short sales; public policy, including tax incentives for homebuyers; and a rise in prices over the past year.
Walsh said that if prices continue to rise, “fewer homeowners will find themselves under water, which is a significant factor in letting a home go.”
Out of the 85 ZIP codes in the county, only two had a rise in defaults: Coronado and Del Mar. Two others had the same number this year as last year: Borrego Springs and the area around Rancho Santa Fe’s post office. Except for Borrego Springs, those neighborhoods are among the priciest in the county, with median home prices above $1 million.
DataQuick noted that statewide, mortgage defaults spread from lower-cost markets into more expensive neighborhoods, although that trend appears to be leveling off.
Dean Calbreath: (619) 293-1891; dean.calbreath@uniontrib.com
Thursday, July 22, 2010
Wall Street Reform Encourages Safe Loans
The new financial overhaul law that President Obama signed into law is still being dissected, but some regulations that affect homebuying and mortgages have already been defined. Here are the key tenets:
• Lenders must prove that borrowers can afford their mortgages. Government guarantees will be voided if lenders don’t demonstrate that they have thoroughly investigated a borrowers’ ability to pay.
• Banks and other entities that pool mortgages and sell them to investors must keep at least 5 percent of the investments on their own books – an incentive to avoid poor quality loans.
• Low-risk mortgages, mostly 30-year fixed-rate loans, are exempt from many regulations. That should encourage lenders to put homebuyers into “plain vanilla” mortgages.
• Bonuses for brokers based on the cost of a mortgage are banned.
Source: Associated Press, Daniel Wagner (07/21/2010)
• Lenders must prove that borrowers can afford their mortgages. Government guarantees will be voided if lenders don’t demonstrate that they have thoroughly investigated a borrowers’ ability to pay.
• Banks and other entities that pool mortgages and sell them to investors must keep at least 5 percent of the investments on their own books – an incentive to avoid poor quality loans.
• Low-risk mortgages, mostly 30-year fixed-rate loans, are exempt from many regulations. That should encourage lenders to put homebuyers into “plain vanilla” mortgages.
• Bonuses for brokers based on the cost of a mortgage are banned.
Source: Associated Press, Daniel Wagner (07/21/2010)
Wednesday, July 21, 2010
Mortgage Applications Rise as Rates Stay Low
Applications to purchase homes rose 3.4 percent last week compared to the previous week on a seasonally adjusted basis, according to the Mortgage Bankers Association weekly survey.
On an unadjusted basis, the purchase index rose 15.3 percent compared with the previous week, but was down 35.7 percent compared to the same week a year ago.
This is only the second time in 10 weeks that purchase mortgage applications have increased.
“The strength in purchase applications comes from government loans, likely indicating that prospective buyers are drawn by the lower down payment requirements,” says Michael Fratantoni, MBA’s vice president of research and economics.
Mortgage rates remained low:
• 30-year fixed-rate mortgages decreased to 4.59 percent from 4.69 percent.
• 15-year fixed-rate mortgages decreased to 4.05 percent from 4.12 percent.
• 1-year ARMs decreased to 7.17 percent from 7.20 percent.
Source: Mortgage Bankers Association (07/21/2010)
On an unadjusted basis, the purchase index rose 15.3 percent compared with the previous week, but was down 35.7 percent compared to the same week a year ago.
This is only the second time in 10 weeks that purchase mortgage applications have increased.
“The strength in purchase applications comes from government loans, likely indicating that prospective buyers are drawn by the lower down payment requirements,” says Michael Fratantoni, MBA’s vice president of research and economics.
Mortgage rates remained low:
• 30-year fixed-rate mortgages decreased to 4.59 percent from 4.69 percent.
• 15-year fixed-rate mortgages decreased to 4.05 percent from 4.12 percent.
• 1-year ARMs decreased to 7.17 percent from 7.20 percent.
Source: Mortgage Bankers Association (07/21/2010)
Tuesday, July 20, 2010
Pregnant Women Have Trouble Getting Mortgages
Some lenders are balking at approving loans when a new parent has temporary lost income because she is home taking care of the baby.
Even if a parent expects to be back at work in weeks, banks still may deny the mortgage. “If you are not back at work, it’s a huge problem,” says Rick Cason, owner of Integrity Mortgage, a mortgage firm in Orlando, Fla. “Banks only deal in guaranteed income these days. “
Lenders will not consider disability payments as income because they don’t last for three years.
A spokesperson for Fannie Mae said that a borrower on maternity or paternity leave could qualify for a mortgage by providing a letter from a doctor with the approved return-to-work date and a letter from the employer confirming the acceptability of the return date.
But mortgage brokers and practitioners say lenders aren’t interpreting the guidelines that way. “There is no real assurance that the new mom will come back to work after she has the baby,” says Marc Savitt, president of the Mortgage Center, a brokerage in Martinsburg, W.Va. “It’s just prudent underwriting to go ahead and approve the loan, but she has to be back before closing.”
Source: The New York Times, Tara Siegel Bernard (07/19/2010)
Even if a parent expects to be back at work in weeks, banks still may deny the mortgage. “If you are not back at work, it’s a huge problem,” says Rick Cason, owner of Integrity Mortgage, a mortgage firm in Orlando, Fla. “Banks only deal in guaranteed income these days. “
Lenders will not consider disability payments as income because they don’t last for three years.
A spokesperson for Fannie Mae said that a borrower on maternity or paternity leave could qualify for a mortgage by providing a letter from a doctor with the approved return-to-work date and a letter from the employer confirming the acceptability of the return date.
But mortgage brokers and practitioners say lenders aren’t interpreting the guidelines that way. “There is no real assurance that the new mom will come back to work after she has the baby,” says Marc Savitt, president of the Mortgage Center, a brokerage in Martinsburg, W.Va. “It’s just prudent underwriting to go ahead and approve the loan, but she has to be back before closing.”
Source: The New York Times, Tara Siegel Bernard (07/19/2010)
Monday, July 19, 2010
Buyers Should Shop For The Best Rate
Anyone shopping for a new mortgage these days should shop around, says Cameron Findlay, chief economist for LendingTree.
Although mortgage rates look astoundingly low, the spread between what the bank receives and what it pays investors has actually increased, giving banks more room to negotiate.
Applicants with good credit scores should aggressively seek the best rates they can find by comparison shopping, starting with the bank they usually do business with.
Source: The New York Times, Jennifer Saranow Schultz (07/17/2010)
Although mortgage rates look astoundingly low, the spread between what the bank receives and what it pays investors has actually increased, giving banks more room to negotiate.
Applicants with good credit scores should aggressively seek the best rates they can find by comparison shopping, starting with the bank they usually do business with.
Source: The New York Times, Jennifer Saranow Schultz (07/17/2010)
Sunday, July 18, 2010
California Home Sales Rise In June
California Home Sales Rise in June
Where California goes, eventually, the rest of the country follows. That’s why it appears to be good news that the state’s home sales rose more than 7 percent in June compared with May, according to real estate tracking firm MDA DataQuick.
Median prices declined about 3 percent. DataQuck says that’s because foreclosures remain high — but down from what they were — and speculative buying continues.
"The next few months should be very interesting," DataQuick President John Walsh says. "We're about to see how well the housing market can fly on its own. The tax credits no doubt stole some demand from the rest of this year, and soon we'll see have a better sense of just how much."
Source: Associated Press (07/15/2010)
Where California goes, eventually, the rest of the country follows. That’s why it appears to be good news that the state’s home sales rose more than 7 percent in June compared with May, according to real estate tracking firm MDA DataQuick.
Median prices declined about 3 percent. DataQuck says that’s because foreclosures remain high — but down from what they were — and speculative buying continues.
"The next few months should be very interesting," DataQuick President John Walsh says. "We're about to see how well the housing market can fly on its own. The tax credits no doubt stole some demand from the rest of this year, and soon we'll see have a better sense of just how much."
Source: Associated Press (07/15/2010)
Tuesday, June 22, 2010
Welcome to theSDRealtor.com
Thank you for visting my site. It is currently a work in progress.
If you have any questions on real estate in the California area,
please contact me at thomasjfarris@gmail.com
or call 760-632-4000.
Please check back often where you will find links, photos, and information.
Have a great day.
If you have any questions on real estate in the California area,
please contact me at thomasjfarris@gmail.com
or call 760-632-4000.
Please check back often where you will find links, photos, and information.
Have a great day.
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