Archive for March, 2011
Beyond The Headlines
March 24th, 2011 categories: Buyer's Advice, Market Reports, Real Estate New, Realtors, Seller's Advice
Orange County Register
Distressed home sales rising Pending home sales rose in February, as did the share of distressed properties sold, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported this week.
MAKING SENSE OF THE STORY
• Pending home sales in California increased in February, according to C.A.R.’s Pending Home Sales Index (PHSI)*. The index was 112.1 in February, rising 20.6 percent from January’s revised index of 93.0, based on contracts signed in February. The index was down 1.6 percent from February 2010, when the presence of housing tax credits played a strong role in home sales. Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market, according to C.A.R.
• “The increase in pending sales is typical for this time of year, as we usually see a seasonal improvement in the spring,” said C.A.R. President Beth L. Peerce.
• The total share of all distressed property types sold statewide increased in February to 56 percent, up from 54 percent in January and up from 55 percent in February 2010. Non-distressed sales made up the remaining share at 44 percent in February, down from 46 percent in January and down from 45 percent in February 2010.
• The statewide share of short sales increased to 23 percent in February, up from 22 percent in January and up from 19 percent in February 2010.
Read the full story:
http://mortgage.ocregister.com/2011/03/24/distressed-home-sales-rising/43621/
In Other News…
San Francisco Chronicle
Rates on 30-year fixed mortgage rises to 4.81 percent
Fixed mortgage rates edged up this week, but even 30-year rates below 5 percent have done little to boost home sales.
Read the full story:
http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2011/03/24/national/a070117D54.DTL&type=business
The Wall Street Journal
Housing inventory increases, listing prices fall
Nationally, the inventory of unsold homes on multiple-listing services increased by 0.6 percent in February from one month prior. Over the past year, inventory is up by 13 percent, according to Move Inc.
Read the full story:
http://blogs.wsj.com/developments/2011/03/23/housing-inventory-increases-listing-prices-fall/
Los Angeles Times
Home resales fall 9.6 percent in February and prices are near 9-year low
Sales of previously owned homes dropped 9.6 percent in February and prices fell to their lowest level since 2002, reflecting a continued slump in the U.S. real estate market.
Read the full story:
http://www.latimes.com/business/la-fi-home-sales-20110321,0,7438761.story
The New York Times
More borrowers are opting for adjustable-rate mortgages
In the years since the financial crisis, adjustable-rate mortgages, or ARMs, with their low initial interest rates that changed over time, have been considered riskier than fixed-rate loans and shunned by most buyers. But these days more people are being persuaded to give the loans a try.
Read the full story:
http://www.nytimes.com/2011/03/20/realestate/20Mortgages.html?_r=1&ref=realestate
CNN Money
New home sales tumble to record low New home sales fell 16.9 percent in February, to the lowest level since the government began keeping records in 1963, as the reeling housing market failed to generate any momentum.
Read the full story:
http://money.cnn.com/2011/03/23/real_estate/new_home_sales/index.htm?hpt=T2
Mercury News
Are buyers turning away from new homes in weak markets? A new home, the dream of many would-be buyers, makes less and less financial sense in many places. A wave of foreclosures has driven down the cost of previously occupied homes and made them even more of a comparative bargain. By contrast, new homes have become more expensive.
Read the full story:
http://www.mercurynews.com/real-estate/ci_17674400
Yahoo Real Estate
Mortgage mod test becomes clearer Mortgage borrowers who are turned down for loan modifications may now get additional information that could help them understand why they didn’t qualify under the so-called “HAMP test.”
Read the full story:
http://finance.yahoo.com/news/Mortgage-mod-test-becomes-brn-3851250881.html?x=0&.v=1&.pf=real-estate&mod=pf-real-estate
What you should know about the market
• Buying a home can be time consuming. One way to save time is by organizing all the necessary documents most lenders require, such as those that prove employment and income. Typically, lenders want two recent pay stubs, two years of tax returns, bank statements, proof of assets, such as 401(k) and trusts, and debts, such as credit card statements. Documents are especially important for borrowers who are self-employed.
• Even if a home purchase is months or years away, having good credit history is essential. A few points on a FICO score can mean the difference between a higher or lower interest rate offered on a mortgage loan.
• Borrowers also are advised to monitor home-lending rates. Every Thursday, Freddie Mac officials calculate average mortgage rates by compiling rates from lenders across the U.S. on Monday through Wednesday. Rates can be found at freddiemac.com/pmms
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Beyond The Headlines
March 18th, 2011 categories: Buyer's Advice
Pasadena Star News
Home prices drop in February
Following three months of sales gains, California home sales posted a weaker-than-expected performance and declined in February, according to data from the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). The statewide median price of an existing, single-family detached home sold in California also declined in February.
MAKING SENSE OF THE STORY
• Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 497,660 in February, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.
• February’s sales were down 9 percent from January’s revised pace of 547,080 units, and down 4 percent from the 518,390 sales pace recorded in February 2010. The statewide sales figure represents what would be the total number of homes sold during 2011 if sales maintained the February 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 sold in California in February declined 2.8 percent to $271,320, from a revised $279,140 in January, and was down 2.5 percent from the $278,190 median price recorded for February 2010. The February 2011 median price was the lowest since May 2009, when it was $263,440.
• “The market pulled back in February, following three months of sales gains, when the ramifications of the robo-signing delays from last fall pushed sales into the period from November of last year to January,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “February’s sales drop indicates the effects of the foreclosure freeze are diminishing, and the market is returning to a more moderate sales pace.”
• C.A.R. has posted median prices, unsold inventory stats, sales figures, time on market data, and more by county and region.
To view this information, visit:
http://www.car.org/newsstand/newsreleases/feb2011salesprice/
Read the full story:
http://www.pasadenastarnews.com/business/ci_17619755
In Other News… San Francisco Chronicle
Average rate on 15-year mortgage dips below 4 percent
Fixed mortgage rates tumbled this week and the 15-year loan dipped below 4 percent for the first time in three months.
Read the full story
http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2011/03/17/national/a070205D58.DTL
The New York Times
A red flag on reverse mortgages
It is the saddest of paradoxes: A government-backed financial maneuver intended to free up extra money for struggling older people turns out to have left some widows and widowers on the brink of foreclosure.
Read the full story
http://www.nytimes.com/2011/03/12/your-money/12money.html?ref=realestate
Los Angeles Times
Home improvements can be funded but options are limited
The home-improvement sector, already benefiting from spending on rehabilitating foreclosed properties, can be expected to get an even larger boost in the coming months from owners who have deferred maintenance during the recession, and newly minted empty nesters who want to turn bedrooms into home offices.
Read the full story
http://www.latimes.com/business/realestate/la-fi-lew-20110313,0,7006590.story
The New York Times
More loan-modification options for the “underwater”
Struggling homeowners who owe more on their mortgages than their properties are worth have had few options to restructure their loans, but that may soon be changing for a few of them.
Read the full story:
http://www.nytimes.com/2011/03/13/realestate/13Mortgages.html?ref=realestate
Los Angeles Times
Passing the test on canceled mortgage debt has tax rewards
With hundreds of thousands of homeowners having negotiated loan modifications or short sales or been foreclosed upon during the past year, the Internal Revenue Service has issued fresh guidance on how to handle canceled mortgage debt in the upcoming tax season.
Read the full story:
http://www.latimes.com/business/realestate/la-fi-harney-20110313,0,6669801.story
The New York Times
A swift deal may not be a sound one
One crucial reason the nation’s mortgage industry ran itself – and the entire nation – off the rails was its obsession with speed. Mortgage had to be approved chop-chop, loans pooled instantly. When it came to foreclosure, well, the quicker the better. So it is disturbing that the same need for speed is at work in the bank settlement being devised by state attorneys general relating to improper loan-servicing and foreclosure practices.
Read the full story:
http://www.nytimes.com/2011/03/13/business/13gret.html?ref=realestate
Los Angeles Times
Bank of America offers mortgage relief for military
Bank of America, the nation’s largest bank, announced new initiatives intended to keep military families from losing their homes to foreclosure.
Read the full story:
http://latimesblogs.latimes.com/money_co/2011/03/bank-of-america-will-take-further-steps-for-military-families-facing-foreclosure.html
What you should know about the market
• As home prices decline, mortgage rates rise, and more uncertainty about the housing market abounds, more would-be home buyers are opting for rentals. However, new costs associated with renting – not to mention the increase in rents – is making renting less than the bargain it appears.
• For former homeowners, renting often means living in a smaller space – which means larger furniture and non-essential items often end up in storage. At one popular storage facility, the popular 100-square foot unit can cost up to $270 per month, depending on location.
• Anecdotal evidence suggests that more landlords are requiring tenants to sign up for renter’s insurance, according to the Insurance Information Institute. A typical policy covers a tenant’s possessions and pays for hotel stays and additional living expenses in the event a rental is destroyed or seriously damaged. Premiums usually range between $100 and $300 per year, and vary based on location and amount of coverage.
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Beyond The Headlines
March 10th, 2011 categories: Buyer's Advice
Los Angeles Times
Banks drag feet on short sales, survey finds
The CALIFORNIA ASSOCIATION OF REALTOR® (C.A.R.) published its findings of a survey this week, which show that tedious lender requirements and poor communication hamper short sales.
MAKING SENSE OF THE STORY
• Fewer than three of five short sales close in California, illustrating the complexity and difficulty of navigating lenders’ and servicers’ short sale procedures, according to C.A.R.’s survey, which gauged REALTORS®’ experience in working with short sale transactions – transactions in which the lender or lenders agree to accept less than the mortgage amount owed by the current homeowner.
• Although not every homeowner or mortgage is eligible for a short sale, those who are able to finalize a short sale avoid a foreclosure on their credit record and can move on with their lives.
• Banks are taking much longer to respond to short sale offers than those specified in government guidelines for banks. Nearly two-thirds of survey respondents said banks took longer than 60 days to respond to short sale offers. Often, this results in buyers walking away from the transaction.
• “Increasing the number of successful short sale transactions is one important way we can help California families avoid foreclosure and move our economy closer to recovery,” said C.A.R. President Beth L. Peerce.
• C.A.R. is asking government agencies, such as the U.S. Dept. of the Treasury, to force banks to complete all short sales following HAFA guidelines and to comply with the program’s time frames.
Read the full story:
http://www.latimes.com/business/la-fi-short-sales-20110307,0,6800709.story
In Other News…
The New York Times
Without loan giants, 30-year mortgage may fade away
How might home buying change if the federal government shuts down the housing finance giants Fannie Mae and Freddie Mac?
Read the full story:
http://www.nytimes.com/2011/03/04/business/04housing.html?ref=realestate
The Wall Street Journal
Mortgage practices overhaul proposed
State and federal officials are pushing to more tightly regulate the way banks and other mortgage servicers treat struggling homeowners in a bid to stem foreclosures.
Read the full story:
http://online.wsj.com/article/SB10001424052748704076804576180884064589622.html?mod=WSJ_RealEstate_LeftTopNews
Los Angeles Times
Foreclosure activity drops sharply nationwide
Big banks put the brakes on foreclosure activity last month as the American foreclosure system faced a major overhaul and homeowners challenged their lenders in court.
Read the full story:
http://www.latimes.com/business/realestate/la-fi-foreclosures-20110310,0,5000417.story
The Wall Street Journal
FHA powers what’s left of the home market
As one of the few backers of low-down-payment mortgages in time of stringent lender underwriting, the Federal Housing Administration has become a primary means of financing for U.S. home buyers.
Read the full story:
http://online.wsj.com/article/SB10001424052748703867704576183003307736130.html?mod=WSJ_hpp_sections_personalfinance
CNN Money
We paid cash for our million-dollar home
Cash buyer are becoming common. The number of homes bought with cash jumped to 32 percent in January compared with 26 percent a year earlier, according to the NATIONAL ASSOCIATION OF REALTORS®
Read the full story:
http://money.cnn.com/2011/03/10/real_estate/homebuyers_paying_cash/index.htm?source=cnn_bin&hpt=Sbin
The Washington Post
Picky first-time buyers losing out on great housing deals
Are today’s first time home buyers passing up great deals because they insist on flawless “move-in-ready” houses requiring little or no changes – even at the starter-home price levels at which shoppers
traditionally have been willing to factor fix-ups and renovations into their offers?
Read the full story:
http://www.washingtonpost.com/wp-dyn/content/article/2011/03/04/AR2011030402606.html
SmartMoney
New rules for first-time home buyers
Without a house to sell, first-time buyers have had a field day in the depressed housing market. Until recently, anyway. A series of new rules, regulations, and policies have changed the landscape, making buying that new home harder and more expensive.
Read the full story:
http://www.smartmoney.com/personal-finance/real-estate/new-rules-for-firsttime-home-buyers-1299539050817/
San Francisco Chronicle
Underwater mortgages rise as home prices fall
The number of Americans who owe more on their mortgages than their homes are worth rose at the end of last year, preventing many people from selling their homes in an already weak housing market.
Read the full story:
http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2011/03/08/national/w070515S66.DTL
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Beyond The Headlines
March 6th, 2011 categories: Buyer's Advice, Seller's Advice
The Wall Street Journal
Five signs that say “buy”
Home buyers sitting on the fence wondering if now is the right time to buy should consider five factors when making this decision: Jobs, recent sales activity, construction, mortgage availability, and anecdotal evidence. Each of these issues can help consumers make the best choice for their situation and financial circumstance.
MAKING SENSE OF THE STORY
• Jobs: Although many areas of the country were deeply impacted by the recession, some areas were less affected by job loss. If employment stability is a concern, prospective buyers should review job-growth data from the U.S. Bureau of Labor Statistics at www.bls.gov. The data provided by the Bureau is approximately one month old and shows the direction of the local economy.
• Recent Sales Activity: Housing inventory and sales volume should be taken into consideration while house hunting. A large inventory of homes with few actual transactions can be a negative indicator. On the other hand, if inventory is falling and transactions are rising, that is a good sign. In January, the CALIFORNIA ASSOCIATION OF REALTORS®’ Unsold Inventory Index stood at 6.7 months, up from 5 months in December 2010, but down from 5.7 months in January 2010. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.
• Construction: Staying up-to-date on the number of building permits issued for local builders is useful for gauging builder sentiment and the future of housing activity. The California Building Industry Association recently announced that California homebuilders pulled 2,920 total housing permits in January, registering a 5-percent decline compared with a year ago and a 56-percent decline compared with December. However, the Construction Industry Research Board is projecting 62,000 total permits will be pulled in 2011, an increase of 38 percent compared with 2010’s total of 44,893 permits.
• Mortgage Availability: Home buyers hoping to be approved for a mortgage should monitor local lending patterns. Following the financial crisis, most national banks tightened lending standards; however, some local banks haven’t been impacted as much as large lenders and are more willing to lend, even for higher-priced homes.
• Anecdotal Evidence: Although buyers can access home listings online, one of the best ways to monitor the local housing market is to work with a REALTOR® and gather intelligence using their expertise and guidance.
Read the full story:
http://online.wsj.com/article/SB10001424052748703905404576164720668195108.html?mod=WSJ_RealEstate_LeftTopNews
In Other News…
Los Angeles Times
IRS eases rules on property liens for delinquent taxpayers
The Internal Revenue Service says it’s trying to help people who are struggling to pay delinquent tax bills, so it’s reducing the number of property liens and easing rules for small businesses to enter into installment agreements.
Read the full story:
http://www.latimes.com/business/la-fi-irs-20110224,0,5872629.story
The New York Times
FHA to raise insurance premiums
Federal Housing Administration mortgages, the government-insured loans that have surged in popularity in recent years, will be getting more expensive this spring.
Read the full story:
http://www.nytimes.com/2011/02/27/realestate/27mort.html?_r=1&ref=realestate
The Wall Street Journal
Why 2011 may be the end of the housing crash
There might finally be some good news this year about the nation’s dismal housing market. Or, at least, the bad news could stop.
Read the full story:
http://online.wsj.com/article/SB10001424052748703796504576168822497423738.html?mod=WSJ_hpp_sections_personalfinance
The Wall Street Journal
Getting a mortgage before the door shuts
If you have been sitting on the fence trying to decide whether to buy a new house or refinance a mortgage, you should act soon. New loans are starting to get costlier.
Read the full story:
http://online.wsj.com/article/SB10001424052748704520504576162632959543492.html?mod=WSJ_RealEstate_LeftTopNews
The Wall Street Journal
Only one in four got mortgage relief
Just one in four of the 2.7 million homeowners who sought to participate in the Obama administration’s signature mortgage assistance program have succeeded in getting their monthly payments reduced.
Read the full story:
http://online.wsj.com/article/SB10001424052748704692904576166982594828812.html?mod=WSJ_RealEstate_LeftTopNews
The Wall Street Journal
Regulators push 20 percent down payments on homes
Banking regulators are pushing for mortgage-lending rules that require homeowners to make minimum 20 percent down payments on loans classified as lower-risk, according to people familiar with the matter.
Read the full story:
http://online.wsj.com/article/SB10001424052748703409904576175050116997530.html?mod=WSJ_RealEstate_LeftTopNews
The Mercury News
California program offers rebates for making energy-efficient improvements
A new statewide program will give homeowners rebates worth up to $4,000 if they make significant energy-efficient improvements to their houses.
Read the full story:
http://www.mercurynews.com/business/ci_17504980
The Wall Street Journal
Survey: Gloomy views persist on housing, economy
The number of Americans who believe that buying a home is a safe investment continues to fall, according to a new survey on housing attitudes from Fannie Mae.
Read the full story:
http://blogs.wsj.com/developments/2011/02/28/survey-gloomy-views-persist-on-housing-economy/
What you should know about the market
• The U.S. mortgage-lending landscape has changed from the height of the real estate cycle, when many lenders generously offered zero-interest terms and no-down payment loans. Now, the situation is much different. Most lenders have more stringent lending guidelines, and now require more documentation from borrowers.
• Mortgage rates are near historic lows, hovering around 5 percent. However, it’s unclear how long such rates will last, as rates are heavily affected by many factors, including the future of government-backed lenders Fannie Mae and Freddie Mac.
• Lenders have increased the amount of documentation borrowers must provide to obtain a mortgage, such as documentation of income. Processing times also have increased, making it particularly difficult for self-employed borrowers who have trouble providing proof of income.
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