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
