This is very encouraging new, but the lenders need to stop being overly conservative on their new loans by requiring at least one comparable property to have sold for more than the subject property. Buyers are willing to buy and their is competition for homes but if the property won't appraise all bets are off. I think it is great that lenders have learned from previous mistakes and that there needed to be tighter lending requirements but they have swung to the far other side. Don't they realize they are defeating themselves, forcing the banks themselves to list the bank owned properties for lower than what buyers are willing to pay. It seems to me they are cutting off their nose to spite their face. They need to use some common sense when making lending requirements.
Daily Real Estate News | May 29, 2009
As the biggest residential property market in the United States, California often serves as a bellwether for the nation's economic health. And new research from that state suggests that housing prices nationally could start to rebound relatively soon.
The latest data, including two consecutive monthly gains in the median price of existing homes, has some industry officials hopeful that the state housing market has finally reached a bottom and is poised to recover from a prolonged period of declining residential values.
In April, California's single-family median home price rose 1.4 percent to $256,700. While that is still off by more than 36 percent from April 2008, the 540,360 homes sales on a seasonally adjusted annual basis reflect an increase of almost 50 percent over the same period, according to the state’s REALTORS® group.
Source: Wall Street Journal, Jim Carlton (05/29/09)
Friday, May 29, 2009
Tuesday, May 26, 2009
Experts Say Real Estate Industry Is Thinning
As news like this hits the airwaves, I want to make sure you know that I am not going anywhere! I love what I do and I am not going to stop now! I have worked to hard to get here!
Daily Real Estate News | May 26, 2009 | Share
Some people are predicting that the current slump in real estate sales will mean a permanent thinning of the ranks among real estate professionals.
"The real estate brokerage industry is not going away, but the combination of efficiency gains via the Internet and the cyclical downturn will both be significant forces to their rapidly shrinking ranks," said Stuart Gabriel, director of UCLA's Ziman Center for Real Estate.
Other observers are not so sure. Yes, the Internet and the economy are having an impact on housing sales and the way some practitioners do business, but it won’t reduce the need for savvy advice, says David Emerson, an associate with Prudential California Realty with 25 years experience.
“Buying a house is a big deal,” he says – and the paperwork alone is enough to make many buyers avoid the do-it-yourself approach.
Source: The Los Angeles Times, Ricardo DeAratanha (05/25/2009)
Daily Real Estate News | May 26, 2009 | Share
Some people are predicting that the current slump in real estate sales will mean a permanent thinning of the ranks among real estate professionals.
"The real estate brokerage industry is not going away, but the combination of efficiency gains via the Internet and the cyclical downturn will both be significant forces to their rapidly shrinking ranks," said Stuart Gabriel, director of UCLA's Ziman Center for Real Estate.
Other observers are not so sure. Yes, the Internet and the economy are having an impact on housing sales and the way some practitioners do business, but it won’t reduce the need for savvy advice, says David Emerson, an associate with Prudential California Realty with 25 years experience.
“Buying a house is a big deal,” he says – and the paperwork alone is enough to make many buyers avoid the do-it-yourself approach.
Source: The Los Angeles Times, Ricardo DeAratanha (05/25/2009)
Thursday, May 21, 2009
HUD: Homebuyer Tax Credit Loans Still on Track
Yesterday I posted an update that the tax credit could not be used toward the down payment. It appears that the details are still being worked out but that it will be available. See below..
Daily Real Estate News | May 21, 2009
News reports that the federal government is backing away from its plan to permit eligible borrowers to monetize the first-time homebuyer tax credit are off the mark, a spokesperson for the U.S. Department of Housing and Urban Development says.
"The technical details are still being finalized and will soon be published in a mortgagee letter and posted on our Web site," Lemar Wooley, a HUD spokesperson, told REALTOR® Magazine Wednesday afternoon.
Under the guidance that's under development, state agencies and other HUD-approved entities would be able to provide short-term bridge loans that households could use to help with their downpayment. The loans would be repaid with the proceeds from the households' federal tax credit.
The loans were announced on the opening day of NAR's 2009 Midyear Legislative Meetings in Washington, D.C., last week. In his announcement, HUD Secretary Shaun Donovan said guidance would be issued shortly.
When the guidance is released, it is expected to cover eligible lenders and set parameters for loan terms and repayment.
Source: REALTOR® Magazine Online
Daily Real Estate News | May 21, 2009
News reports that the federal government is backing away from its plan to permit eligible borrowers to monetize the first-time homebuyer tax credit are off the mark, a spokesperson for the U.S. Department of Housing and Urban Development says.
"The technical details are still being finalized and will soon be published in a mortgagee letter and posted on our Web site," Lemar Wooley, a HUD spokesperson, told REALTOR® Magazine Wednesday afternoon.
Under the guidance that's under development, state agencies and other HUD-approved entities would be able to provide short-term bridge loans that households could use to help with their downpayment. The loans would be repaid with the proceeds from the households' federal tax credit.
The loans were announced on the opening day of NAR's 2009 Midyear Legislative Meetings in Washington, D.C., last week. In his announcement, HUD Secretary Shaun Donovan said guidance would be issued shortly.
When the guidance is released, it is expected to cover eligible lenders and set parameters for loan terms and repayment.
Source: REALTOR® Magazine Online
Wednesday, May 20, 2009
Update for Using Tax Credit for Down Payment
Can the $8,000 First-Time Home Buyer Tax Credit for Down Payments on FHA Loans? The Department of Housing and Urban Development (HUD) account last week that first time home buyers would be able to use the $8,000 “first-time home buyer tax credit” for down payments on FHA loans through the use of bridge loans.
The Department of Housing and Urban Development posted the information on their website in HUD Mortgagee Letter 09-15. For some reason they have completely removed the information from their website. People are speculating that the program is on hold because they have decided to make changes to the program.
While no official explanation has been given, it appears that The Department of Housing and Urban Development and the Internal Revenue Service are researching the details of the program, leaving the status unknown for now
The Department of Housing and Urban Development posted the information on their website in HUD Mortgagee Letter 09-15. For some reason they have completely removed the information from their website. People are speculating that the program is on hold because they have decided to make changes to the program.
While no official explanation has been given, it appears that The Department of Housing and Urban Development and the Internal Revenue Service are researching the details of the program, leaving the status unknown for now
Tuesday, May 19, 2009
Home Prices Have Hit Bottom
As the following explains, many feel that home prices have hit bottom. I agree that if left up to buyers and sellers this would be the bottom. We are seeing multiple offers at or above the listed price which indicates the properties could sell for more except for one very important player. This player is the lenders. The lenders are continuing to devalue property by requiring an appraisal with at least one sometimes 2 comparables must have sold for more. This is creating a perpetual declining market. Also with the banks flooding the market with houses priced under market, looking for a quick cash deal they are further driving down the comps. The lenders are forcing the market lower by listing properties so low and making it tough for buyers to get a loan with the appraisal situation.
The second part of the article discusses the seller’s perspective of home prices. This is very true. Seller's often times feel that their property is exempt from the issues affecting the rest of the market. They feel their property is worth more than the one down the street. Some like overlook the any negatives about the property and see pink carpet and paneling as a reason their house is worth more than the neighbors. I try to explain that the reality is, their house’s value has declined and that even if a buyer comes along and is willing to pay over market value, they will not be able to get the loan. Many times the seller lists the home with the agent that tells them everything they want to hear as opposed to one who was upfront with them from the start. It can be difficult to watch as the property languishes on the market as prices continue to decline. So keep this in mind if you are considering selling your home, if the list price sounds too good to be true, it probably is.
Daily Real Estate News | May 19, 2009 | Share
Practitioners Say Homes Prices Have Hit Bottom
Real estate professionals are optimistic that home prices will hit bottom in the next six months, according to a survey from listing and home-pricing site HomeGain.com.
About half of practitioners surveyed expect home prices to stay the same in the next six months, 29 percent expect them to drop, and 22 percent believe they will increase.
More than 84 percent of practitioners believe their clients’ homes lost value in the last year, while 12 percent say values had stayed the same. Only 3 percent believe homes had gained value.
Meanwhile, sellers were skeptical of their real estate professional’s analysis, with 69 percent believing their homes were worth more than the practitioner recommended. About 35 percent of home sellers thought their home was worth 10 percent to 20 percent more, and 10 percent thought their home was worth at least 21 percent more than their real estate professional suggested.
Source: Inman News (05/18/2009)
The second part of the article discusses the seller’s perspective of home prices. This is very true. Seller's often times feel that their property is exempt from the issues affecting the rest of the market. They feel their property is worth more than the one down the street. Some like overlook the any negatives about the property and see pink carpet and paneling as a reason their house is worth more than the neighbors. I try to explain that the reality is, their house’s value has declined and that even if a buyer comes along and is willing to pay over market value, they will not be able to get the loan. Many times the seller lists the home with the agent that tells them everything they want to hear as opposed to one who was upfront with them from the start. It can be difficult to watch as the property languishes on the market as prices continue to decline. So keep this in mind if you are considering selling your home, if the list price sounds too good to be true, it probably is.
Daily Real Estate News | May 19, 2009 | Share
Practitioners Say Homes Prices Have Hit Bottom
Real estate professionals are optimistic that home prices will hit bottom in the next six months, according to a survey from listing and home-pricing site HomeGain.com.
About half of practitioners surveyed expect home prices to stay the same in the next six months, 29 percent expect them to drop, and 22 percent believe they will increase.
More than 84 percent of practitioners believe their clients’ homes lost value in the last year, while 12 percent say values had stayed the same. Only 3 percent believe homes had gained value.
Meanwhile, sellers were skeptical of their real estate professional’s analysis, with 69 percent believing their homes were worth more than the practitioner recommended. About 35 percent of home sellers thought their home was worth 10 percent to 20 percent more, and 10 percent thought their home was worth at least 21 percent more than their real estate professional suggested.
Source: Inman News (05/18/2009)
Thursday, May 7, 2009
Market Shift: More Houses Get Multiple Offers
The article blow is definately applies San Diego. I am writing multiple offers for buyers who keep getting out bid on properties. This can be extremely frustrating for them. Many buyers are confused by this, they hear all the doom and gloom in the news and think they can submit lower than the asking price offers. The reality is that many of the bank owned properties list the home very low, knowing they will attract multiple offer and the property will sell for over the list price. There is definate competition for the starter price range homes. Buyers need to know what other properties in the area are selling for and take that into consideration when they submit their offer.
The good new is, this is definately a sign that the market is improving!
Daily Real Estate News | May 7, 2009 | Share
Julie Holt of Tarpon Springs, Fla.-based Anclote Title Services says 10 percent of the homes for sale are generating more than one bid.
Experts say markets hit hard by foreclosure are seeing more multiple offers, as residential price declines make homes more affordable and banks low-ball asking prices on distressed properties.
"If a house is in a good neighborhood, is maintained and is a good value, it'll get multiple offers," says Holt.
Although many markets are far from fully shaking off the downturn, the pick-up in multiple offers is a reason for optimism.
"When you begin to see people willing to fight for a property, that's a good sign," says Beth Peerce, treasurer of the CALIFORNIA ASSOCIATION OF REALTORS®. "We are beginning to see the beginning of the end of a disaster time."
Source: USA Today, Julie Schmit (5/6/09)
© Copyright 2009 Information Inc.
The good new is, this is definately a sign that the market is improving!
Daily Real Estate News | May 7, 2009 | Share
Julie Holt of Tarpon Springs, Fla.-based Anclote Title Services says 10 percent of the homes for sale are generating more than one bid.
Experts say markets hit hard by foreclosure are seeing more multiple offers, as residential price declines make homes more affordable and banks low-ball asking prices on distressed properties.
"If a house is in a good neighborhood, is maintained and is a good value, it'll get multiple offers," says Holt.
Although many markets are far from fully shaking off the downturn, the pick-up in multiple offers is a reason for optimism.
"When you begin to see people willing to fight for a property, that's a good sign," says Beth Peerce, treasurer of the CALIFORNIA ASSOCIATION OF REALTORS®. "We are beginning to see the beginning of the end of a disaster time."
Source: USA Today, Julie Schmit (5/6/09)
© Copyright 2009 Information Inc.
Wednesday, May 6, 2009
Mortgage Applications Up, Despite Rate Rise
Daily Real Estate News | May 6, 2009 | Share
Total mortgage loan applications inched up last week, according to the Mortgage Bankers Association weekly applications survey.
The Market Composite Index, a measure of mortgage loan application volume, was 979.7, an increase of 2.0 percent on a seasonally adjusted basis from 960.6 one week earlier. On an unadjusted basis, the Index increased 2.4 percent compared with the previous week and 43.7 percent compared with the same week one year earlier.
The Refinance Index increased 1.2 percent to 5169.3 from 5108.2 the previous week.
The refinance share of mortgage activity decreased to 74.4 percent of total applications from 75.3 percent the previous week.
Interest rates rose slightly last week:
30-year fixed-rate mortgages increased to 4.79 percent from 4.62 percent.
15-year fixed-rate mortgages increased to 4.57 percent from 4.45 percent.
One-year ARMs increased to 6.36 percent from 6.23 percent.
Source: Mortgage Bankers Association
Total mortgage loan applications inched up last week, according to the Mortgage Bankers Association weekly applications survey.
The Market Composite Index, a measure of mortgage loan application volume, was 979.7, an increase of 2.0 percent on a seasonally adjusted basis from 960.6 one week earlier. On an unadjusted basis, the Index increased 2.4 percent compared with the previous week and 43.7 percent compared with the same week one year earlier.
The Refinance Index increased 1.2 percent to 5169.3 from 5108.2 the previous week.
The refinance share of mortgage activity decreased to 74.4 percent of total applications from 75.3 percent the previous week.
Interest rates rose slightly last week:
30-year fixed-rate mortgages increased to 4.79 percent from 4.62 percent.
15-year fixed-rate mortgages increased to 4.57 percent from 4.45 percent.
One-year ARMs increased to 6.36 percent from 6.23 percent.
Source: Mortgage Bankers Association
Friday, May 1, 2009
More Signs the Market is Recovering
There are many signs that the housing market is recovering. I know I have seen a definate increase in buyer activity. If you are considering buying a home for the first time or you are looking for a good investment, the time is here. Don't wait to completely miss the bottom, you will end up kicking yourself. Let me know what I can do to help.
HUD Sees Signs of Stabilization
The housing market is looking healthier, but U.S. Housing and Urban Development Secretary Shaun Donovan said Wednesday that it is too early to tell if the recovery has taken hold.
"We do have some early signs, I think, that the market is stabilizing. Since January, what we've seen is both prices and sales volumes moving up and down around a relatively stable number," Donovan said
Donovan said he was optimistic that President Obama’s policies are bolstering the market.
"I think in particular when you get below the national level what you see is that in markets like California that were the hardest hit, that is where the signs (of recovery) are the strongest," he said.
[Editor's note: Remarks last week by NAR Chief Economist Lawrence Yun at a press conference on existing-home sales are consistent with Secretary Donovan's analysis. Video highlights of Yun's press conference are available online.]
Source: Reuters News (04/29/2009)
HUD Sees Signs of Stabilization
The housing market is looking healthier, but U.S. Housing and Urban Development Secretary Shaun Donovan said Wednesday that it is too early to tell if the recovery has taken hold.
"We do have some early signs, I think, that the market is stabilizing. Since January, what we've seen is both prices and sales volumes moving up and down around a relatively stable number," Donovan said
Donovan said he was optimistic that President Obama’s policies are bolstering the market.
"I think in particular when you get below the national level what you see is that in markets like California that were the hardest hit, that is where the signs (of recovery) are the strongest," he said.
[Editor's note: Remarks last week by NAR Chief Economist Lawrence Yun at a press conference on existing-home sales are consistent with Secretary Donovan's analysis. Video highlights of Yun's press conference are available online.]
Source: Reuters News (04/29/2009)
First-Time Buyers Boosting House Sales
The NATIONAL ASSOCIATION OF REALTORS® says more than 50 percent of March's home sales were tied to first-time buyers, many of whom snapped up foreclosed homes and other distressed properties.
Experts believe getting first-time buyers off the sidelines to take advantage of historically low interest rates and federal tax credits will reduce the glut of homes on the market and spark a recovery. Some point out that first-time buyers are helping to revitalize communities in Florida, California, and other states hit hard by foreclosures.
However, distressed properties often sell for 20 percent less than traditional properties, and the increase in lower-end sales is driving down the national median home price.
Source: USA Today, Stephanie Armour (04/30/09)
© Copyright 2009 Information Inc.
Experts believe getting first-time buyers off the sidelines to take advantage of historically low interest rates and federal tax credits will reduce the glut of homes on the market and spark a recovery. Some point out that first-time buyers are helping to revitalize communities in Florida, California, and other states hit hard by foreclosures.
However, distressed properties often sell for 20 percent less than traditional properties, and the increase in lower-end sales is driving down the national median home price.
Source: USA Today, Stephanie Armour (04/30/09)
© Copyright 2009 Information Inc.
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