Home Prices

California Housing Affordability Inches up in First Quarter

Posted in Central Coast Real Estate, Home Prices, Paso Robles, Templeton, Time to buy a Home, Time to sell a home on June 3rd, 2017 by Jim – Be the first to comment

Despite a moderate increase in mortgage interest rates, seasonal price declines and higher household income elevated California’s housing affordability in first-quarter 2017, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said this week.

The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California in first-quarter 2017 inched up to 32 percent, up from 31 percent in the fourth quarter of 2016 but was down from 34 percent in the first quarter a year ago, according to C.A.R.’s Traditional Housing Affordability Index (HAI). This is the 16th consecutive quarter that the index has been below 40 percent and is near the mid-2008 low level of 29 percent. California’s housing affordability index hit a peak of 56 percent in the fourth quarter of 2012.

C.A.R.’s HAI measures the percentage of all households that can afford to purchase a median-priced, single-family home in California. C.A.R. also reports affordability indices for regions and select counties within the state. The Index is considered the most fundamental measure of housing well-being for home buyers in the state.

Home buyers needed to earn a minimum annual income of $102,050 to qualify for the purchase of a $496,620 statewide median-priced, existing single-family home in the first quarter of 2017. The monthly payment, including taxes and insurance on a 30-year, fixed-rate loan, would be $2,550, assuming a 20 percent down payment and an effective composite interest rate of 4.36 percent. The effective composite interest rate in fourth-quarter 2016 was 3.91 percent and 4.01 percent in the first quarter of 2016.

Freddie Mac Announces New Foreclosure Prevention Program

Posted in Atascadero, Central Coast Real Estate, Home loans, Home Prices, Mortgage shopping, Paso Robles, Templeton, Time to buy a Home, Time to sell a home on March 25th, 2017 by Jim – Be the first to comment

Freddie Mac recently announced the Freddie Mac Flex Modification foreclosure prevention program, which is designed to help America’s families by offering significant reductions in their monthly mortgage payments. It replaces Freddie Mac’s version of the Home Affordable Modification Program (HAMP), which is set to expire at the end of this year.

The new program was developed in alignment with Fannie Mae at the direction of the Federal Housing Finance Agency (FHFA).

The Flex Modification is expected to provide a 20 percent payment reduction for eligible borrowers. A high percentage of those who are at least 60 days delinquent would be eligible; the modification could also be an option for those who are current or less than 60 days delinquent in certain situations.

Servicers must implement the new program by Oct.1, 2017. In the interim, while HAMP expires on Dec.30, 2016, Freddie Mac’s Standard and Streamlined Modifications will remain in effect until the new program is implemented.

Most Home Buyers Keep Their Options Open

Posted in Atascadero, Central Coast Real Estate, Home loans, Home Prices, Paso Robles, Templeton, Time to buy a Home, Time to sell a home on November 18th, 2016 by Jim – Be the first to comment

In today’s competitive housing market, most of those who moved recently considered both buying and renting while looking for a new place to live, according to the Zillow Group Report on Consumer Housing Trends.

It takes more than 10 weeks to find a new home to rent – and more than 12 weeks for those with low incomes or those searching in tight rental markets, according to an analysis of the Zillow Group Report and U.S. Census data. For home buyers, the search is longer – 17 weeks.

More than half — 54 percent — of buyers do not get the first home on which they make an offer. First-time home buyers make up 47 percent of all buyers, so it’s feasible for many potential buyers to keep their options open and return to renting if they aren’t successful purchasing a home.

March Sales, Median Price Accelerate From Previous Month, Year

Posted in Atascadero, Central Coast Real Estate, Home Prices, Paso Robles, Templeton, Time to buy a Home, Time to sell a home on April 25th, 2016 by Jim – Be the first to comment

California home sales rose from both the previous month and year to post the highest sales pace in six months, while strained housing supplies continued to push home prices higher, according to C.A.R.’s March sales and price report.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 415,220 units in March, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.

The March figure was up 5.5 percent from the revised 393,430 level in February and up 5.7 percent compared with home sales in March 2015 of a revised 392,660. March’s sales level rose above the 400,000 level for the first time in three months.

The median price of an existing, single-family detached California home rose 8.9 percent in March, reversing a two-month decline, to $483,280 from $443,950 in February. March’s median price was 4 percent higher than the revised $464,640 recorded in March 2015.

Consumer Confidence Increases in January

Posted in Atascadero, Central Coast Real Estate, Home Prices, Paso Robles, Templeton, Time to buy a Home, Time to sell a home on February 12th, 2016 by Jim – Be the first to comment

The Conference Board Consumer Confidence Index, which increased in December, improved moderately in January. The Index now stands at 98.1 (1985=100), up from 96.3 in December. The Present Situation Index was unchanged at 116.4, while the Expectations Index increased from 83 to 85.9 in January.

Consumers’ appraisal of current conditions was relatively flat in January. The percentage saying business conditions are “good” was virtually unchanged at 27.2 percent, while those saying business conditions are “bad” declined slightly from 18.9 percent to 18.5 percent. Consumers’ assessment of the labor market was modestly more positive. The proportion claiming jobs are “plentiful” decreased from 24.2 percent to 22.8 percent, while those claiming jobs are “hard to get” declined to 23.4 percent from 24.5 percent.

Buying More Affordable than Renting in 58 Percent of U.S. Markets

Posted in Atascadero, Central Coast Real Estate, Home loans, Home Prices, Paso Robles, Templeton, Time to buy a Home, Time to sell a home on January 30th, 2016 by Jim – Be the first to comment

RealtyTrac released its 2016 Rental Affordability Analysis which shows that buying is still more affordable than renting in 58 percent of U.S. housing markets despite home price appreciation outpacing rent growth in 55 percent of markets. The report also shows that the rise in rents is outpacing weekly wage growth in 57 percent of markets.

Rents on three-bedroom properties will increase an average of 3.5 percent in 2016 compared to 2015 across all 504 counties analyzed, according to the HUD data. Meanwhile, average weekly wages in the second quarter of 2015 (the most recent wage data available) were up an average of 2.6 percent from a year ago and median home prices were up an average of 5 percent in the third quarter of 2015 compared to a year ago across all 504 counties.

Across all 504 counties analyzed, average wage earners will need to spend 37 percent of their income on rents for a three-bedroom property in 2016, slightly less than the 38 percent of income to make monthly house payments — assuming a 3 percent down payment and including mortgage, taxes, insurance and mortgage insurance — on a median priced home on average across all 504 counties.

Renting was more affordable than buying in 213 of the 504 counties analyzed (42 percent), including counties in Los Angeles, Houston, San Diego, New York City (Brooklyn), and Dallas. Buying was more affordable than renting in 291 counties (58 percent) including counties in Chicago, Phoenix, Miami, the Inland Empire of Southern California, Las Vegas, and Detroit.

Report Shows Home Prices Up Year Over Year

Posted in Atascadero, Central Coast Real Estate, Home Prices, Paso Robles, Templeton, Time to buy a Home, Time to sell a home on December 23rd, 2015 by Jim – Be the first to comment

CoreLogic recently released its CoreLogic Home Price Index (HPI) and HPI Forecast data for October 2015 which shows home prices are up both year over year and month over month.

Home prices nationwide, including distressed sales, increased 6.8 percent in October 2015 compared with October 2014 and increased 1 percent in October 2015 compared with September 2015, according to the CoreLogic HPI.

The CoreLogic HPI Forecast indicates that home prices are projected to increase 5.2 percent on a year-over-year basis from October 2015 to October 2016, and the projected month-over-month gain is negligible (0.1 percent) from October 2015 to November 2015. The CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state.

California Home Sales Cool in August as Price Gains Temper

Posted in Atascadero, Central Coast Real Estate, Home loans, Home Prices, Paso Robles, Templeton, Time to buy a Home, Time to sell a home on September 21st, 2015 by Jim – Be the first to comment

Following a hotter than usual summer of homes sales, California’s housing market cooled in August, but still posted higher year over year for the seventh straight month, C.A.R. reported this week.

Home sales remained above the 400,000 mark in August for the fifth consecutive month and rose to the highest level since October 2012. Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 431,800 units in August, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.

The August figure was down 3.8 percent from the revised 448,900 level in July but up 9.3 percent compared with home sales in August 2014 of a revised 395,080. The year-to-year change was higher than the 6-month average increase of 8.6 percent observed from February 2015 to July 2015.

The median price of an existing, single-family detached California home edged up 1 percent in August to $493,420 from a revised $488,470 in July. August’s median price was 2.5 percent higher than the revised $481,240 recorded in August 2014.

Americans’ Housing Optomism Gains More Momentum

Posted in Atascadero, Central Coast Real Estate, Home Prices, Paso Robles, Templeton, Time to buy a Home, Time to sell a home on July 13th, 2015 by Jim – Be the first to comment

Consumer attitudes about the housing market showed marked improvement last month, strengthening the case for a lift in housing activity this year, according to results from Fannie Mae’s May 2015 National Housing Survey. In line with the positive May jobs report—which showed an acceleration in average hourly earnings—and reflecting recent trends of firming personal income growth, the share of survey respondents reporting a significant increase in their household income climbed 4 percentage points to a near all-time high.

Homeownership and Renting Highlights

•The average 12-month home price change expectation remained at 2.8 percent.
•The share of respondents who say home prices will go up in the next 12 months rose to 49 percent. The share who say home prices will go down fell to 6 percent.
•The share of respondents who say mortgage rates will go up in the next 12 months fell to 47 percent.
•Those who say it is a good time to buy a house rose back up to 66 percent, while those who say it is a good time to sell went up 3 percentage points to 49 percent – a new survey high.
•The average 12-month rental price change expectation rose to 4.3 percent.
•The percentage of respondents who expect home rental prices to go up rose to 55 percent.
•Those who think it would be easy to get a home mortgage decreased by 2 percentage points to 50 percent, while those who think it would be difficult remained at 46 percent.
•The share who say they would buy if they were going to move rose 3 percentage points to 66 percent, while the share who would rent fell to 27 percent.

Mortgage Credit Availability Increases in March

Posted in Atascadero, Central Coast Real Estate, Home loans, Home Prices, Paso Robles, Templeton, Time to buy a Home on April 29th, 2015 by Jim – Be the first to comment

Mortgage credit availability increased in March according to the Mortgage Credit Availability Index (MCAI), a report from the Mortgage Bankers Association (MBA) which analyzes data from Ellie Mae’s AllRegs Market Clarity business information tool.

The MCAI increased 2.3 percent to 121.4 in March. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of a loosening of credit. The index was benchmarked to 100 in March 2012.

“A number of factors contributed to a loosening of credit in March: Freddie Mac’s introduction of their 97 LTV program (Fannie Mae’s was implemented in December), additional loosening of parameters on jumbo loan programs, an increase in offerings of cash-out refinance loans, and continued expansion of the FHA streamline refinance and VA Interest Rate Reduction Refinance Loan (IRRRL) programs,” according to Mike Fratantoni, MBA’s Chief Economist. “As a result of these changes, all four component indexes of the MCAI increased last month: jumbo, conforming, conventional, and government. Although credit remains tight by historical standards, this increase in availability, coupled with low rates and job market strength, should lead to stronger home purchase activity this spring.”