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New Data on California Home Sales and Price Report – Upward Momentum Continues

November 22, 2012 by

California’s housing market continued its momentum in October, posting strong year-over-year sales and price gains in nearly every county of the state, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) released its most recent housing data.

Also, C.A.R. Chief Economist expected to see solid year-over-year price gains through the first quarter of next year, as sales of higher-priced homes grow

Here are the highlights:

  • Most counties in the Northern California region, for example, posted double-digit year-over-year sales gains in October
  • Sales in October were up 12.5 percent from a revised 484,050 in September and up 10.2 percent from a revised 493,790 in October 2011.
  • October’s price was up 23 percent from October 2011, marking the eighth consecutive month of annual price increases and the fourth consecutive month of double-digit annual gains.  The year-to-year increase was the largest since May 2010.
  •  California’s housing inventory tightened in October, with the Unsold Inventory Index for existing, single-family detached homes dropping to 3.1 months, down from 3.7 months in September and a revised 5.5 months in October 2011.  The index indicates the number of months needed to sell the supply of homes on the market at the current sales rate.  A six- to seven-month supply is considered normal.
  • Homes continued to sell at a faster pace in October, with the median number of days it took to sell a single-family home falling to 38 days in October 2012 from 39.3 days in September and down from a revised 55.1 days for the same period a year ago.

Read complete report here.

Filed Under: Market Update Tagged With: , , ,

Fed Chairman Ben Bernanke Said Mortgage Lending Standards “Overly Tight”

November 15, 2012 by

Clients who have been doing loans with me over the past few years all felt the first hand how many documents lenders asked for nowadays. Personally, I think many new guidelines are not reasonable.

Well, they all stems from the guidelines set out by Fannie Mae and Freddie Mac and trickles downhill from there.

Finally, even Federal Reserve Board Chairman Ben Bernanke said Thursday that mortgage lending standards now appear to be “overly tight,” and are preventing creditworthy borrowers from buying homes. Some tightening of credit standards was appropriate to the lax lending conditions that led up to the housing bubble, he said. “However, it seems likely at this point that the pendulum has swung too far the other way, and that overly tight lending standards may now be preventing creditworthy borrowers from buying homes, thereby slowing the revival in housing and impeding the economic recovery,” Bernanke said

The Fed’s survey of senior loan officers shows that lenders began tightening mortgage credit standards in 2007 and “have not significantly eased standards since,” Bernanke said.

The latest survey released late last month showed that banks were not making it easier to get a mortgage even though interest rates were at record lows, housing prices are starting to creep higher and foreclosures have dropped.

Bernanke did not offer any solution to the tight standards.

However, at least for our clients, we will try our best to make the process of getting a loan as smooth as possible for you and be here to answer all your questions.

Ultimately, helping you get the best interest rate and save money are our focus.

 

Filed Under: Mortgage Rate Tagged With: , , , , ,

Tips for Buyers to Get a House in Tight Inventory Housing Market

October 15, 2012 by

In low-inventory markets, some buyers are having a hard time finding a home to buy. There are steps you can take to improve your odds of finding a home at a time when interest rates are at record lows and affordability is high.

Tip One: broaden your search. You should be clear about what it is you want to buy. But, homebuying involves making compromises. Just make sure you don’t give in on the essentials. You need a home that will last you for the long term. Avoid listings with major defects that will be expensive or impossible to fix.The sorts of features you should be willing to give up, if necessary, are house style, or a large yard, which can be a maintenance drain. If you’re having no luck buying in your first-choice neighborhood, check out the adjacent areas. These could be the next turn-around neighborhoods when the overall housing market improves. You could also do an about-face and consider condos rather than single-family homes. This might have the advantage of shortening your commute to work.

Tip Two: Ask your agent to cull the inventory of expired, withdrawn, and canceled listings that didn’t sell in the last year or two. These may not have sold because they were priced too high. If the sellers are still interested in selling, and aren’t locked into a lease, you might be able to work out a mutually acceptable price.

Tip Three: Be open to making improvements rather than holding out for a home that’s in move-in condition. Major fixers will probably be snapped up by investors to rehab and resell at a profit. This is a competitive market and not one for novice homebuyers. However, if a listing isn’t receiving attention because of its dated décor, this could work if you intend to live in the property and not try to flip it for a profit. Be sure to work with an agent who has experience with cosmetic renovations, or consult with a decorator. You’d be surprised what updated plumbing and light fixtures, new paint, floor finishes, appliances and improving the outdoor living can do to turn a dowdy listing into a comfortable abode. Just make sure you don’t tackle too much. You don’t want to over-improve for the neighborhood, and structural issues are taboo.

Filed Under: Real Estate Knowledge Tagged With: , ,
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