D.R. Horton New Release at Harmony in Milpitas Sold Out

Buyers waiting for door open at HarmonyHarmony, D. R. Horton’s community in Milpitas, had a new release on Saturday January 25, 2014. Five new town houses released were sold out in a matter of half an hour.

The town houses released were two plan 3, two plan 2 and one plan 1.  Price ranges are from $675,885 for the plan 1 to $760,885 for plan 3.  Buyers were waiting in line a few hours before the sales office opened their door. The first two buyers said they were waiting there since 4 pm the previous day. Others were there starting from 7 am in the morning.

Harmony changed from a lottery system to first come first serve.

When Harmony opened their first release at the beginning of last year, hundreds of people waited outside to get their lucky numbers. Sales people at Harmony then draw the lottery and the winning person got to choose the house they want to buy.

Prices have increased by over $100,000 since their first release and the whole community is expected to be completed in less than a year.

A school and a part are in plan by the city of Milpitas across the street from Harmony. Taylor Morrison and Trumark are both building in the same neighbor but still at their early stage.

Inventory is at very low level even we are at the end of January already.

Below are the most recently  listed existing homes for sale  in Milpitas. Please feel free to call me at 408-799-2558 if you are interested in any of them.

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New Big Mortgage Rules Change Start Today

The Consumer Financial Protection Bureau’s (CFPB) new Qualified Mortgage (QM) mortgage rules take effect today.  The qualified mortgage rule, as defined by CFPB, is designed to create safer loans by prohibiting or limiting certain high-risk products and features.

Here are three key changes to keep in mind when you are considering getting a loan for your home purchase or refinance:

1. Maximum allowed debt to income ratio reduced to 43%. Previously it is 45% and sometimes can go up to 50%

2. These type of loans are no longer accepted: interest-only loans, loans with terms longer than 30 years, balloon loans and negative amortization loans.

3. The points and fees paid by the borrower must not exceed 3% of the total amount borrowed. This will make people have very small loans have less options to get lower rates.

For people who are in Bay Area with high housing price and large loan amount, the reduction on debt to income ratio is the biggest negative impact. So if you got pre-approval last year but still have not purchased house yet, it’s the time to update your pre-approval. Talk to your loan agent to find out if your pre-approval is impacted and whether you need to adjust your loan amount or purchase price. If you would like to have a private meeting with us to review this for you, please feel free to call 408-799-2558.

The mortgages that comply with these rules are purchased by Fannie Mae and Freddie Mac. There are loans that do not need to comply these rules who will be purchased by private investors. However, the non-QM complied loans usually have higher rates.

 

2014 California Housing Market Outlook

The housing market has an amazing run in 2013. California, especially Bay Area Silicon Valley market top the list for the price appreciation. Will the market upward momentum continue in 2014?

Here are 2014 California Housing Market Outlook released for California Realtor Association.

CAR Forecast 2013-09 slide 2

CAR Forecast 2013-09 slide 3

CAR Forecast 2013-09 slide 4

                                   CAR Forecast 2013-09 slide 5

 

 

 

 

 

 

 

 

 

 

 

 

   CAR Forecast 2013-09 slide 6

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