Time to sell a home

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.

Survey Identifies Home Shoppers’ Preferences in 2017

Posted in Atascadero, Central Coast Real Estate, Paso Robles, Templeton, Time to buy a Home, Time to sell a home on April 13th, 2017 by Jim – Be the first to comment

Ranch-style homes, large backyards and updated kitchens top shoppers’ wish lists this spring, according to realtor.com®’s home buyer survey. More than half of home seekers are looking for a three-bedroom home, while 75 percent of shoppers are considering a two-bathroom home.

The following are key findings of the realtor.com® home buyer survey:
•Large backyards, garages and updated kitchens top list of most searched attributes: All age groups are looking for some combination of a backyard, garage and updated kitchen.
•Ranch-style homes and kitchens rule in 2017: Ranch homes led shoppers’ rankings of desired home styles by far, with 42 percent of shoppers looking for a ranch home.
•Privacy ranks as shoppers’ top goal for buying, largely driven by buyers over age 45: This preference can be attributed to mostly buyers between 45 and 64 years old, for whom privacy tends to beat out other preferences such as stability, family needs, and financial investment.
•Millennial shoppers cite family needs as the primary reason for entering the housing market: As millennial buyers prioritize family needs, it is no surprise that most millennials cited life events like increasing family size and getting married or moving in with a partner as their primary triggers for finding a new home.
•Desire for single-family home rises with age: Among younger buyers, many of whom are buying starter homes, 40 percent of shoppers were looking for townhouses and row houses.

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.

Mortgage Foreclosures and Delinquencies Continue to Drop

Posted in Atascadero, Central Coast Real Estate, Home loans, Paso Robles, Templeton, Time to buy a Home, Time to sell a home on March 16th, 2016 by Jim – Be the first to comment

The delinquency rate for mortgage loans on one-to-four-unit residential properties decreased to a seasonally adjusted rate of 4.77 percent of all loans outstanding at the end of the fourth quarter of 2015, according to the Mortgage Bankers Association’s National Delinquency Survey. This was the lowest level since the third quarter of 2006. The delinquency rate decreased 22 basis points from the previous quarter, and 91 basis points from one year ago. The delinquency rate includes loans that are at least one payment past due but does not include loans in the process of foreclosure.

The percentage of loans on which foreclosure actions were started during the fourth quarter was 0.36 percent, a decrease of two basis points from the previous quarter, and down 10 basis points from one year ago. This foreclosure starts rate was at the lowest level since the second quarter of 2003.

The percentage of loans in the foreclosure process at the end of the third quarter was 1.77 percent, down 11 basis points from the third quarter and 50 basis points lower than one year ago. This was the lowest foreclosure inventory rate seen since the third quarter of 2007.

The serious delinquency rate, the percentage of loans that are 90 days or more past due or in the process of foreclosure, was 3.44 percent, a decrease of 13 basis points from last quarter, and a decrease of 108 basis points from last year. This was the lowest serious delinquency rate since the third quarter of 2007.

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.

Mortgage Standards Are Easing

Posted in Atascadero, Central Coast Real Estate, Home loans, Paso Robles, Templeton, Time to buy a Home, Time to sell a home on October 28th, 2015 by Jim – Be the first to comment

Fannie Mae’s third quarter 2015 Mortgage Lender Sentiment Survey reveals that more lenders report easing of mortgage lending standards across all loan types. Conducted in August 2015, the survey asked senior mortgage executives whether their lending organization’s credit standards have eased, tightened, or remained essentially unchanged for GSE eligible, non-GSE eligible, and government loans during the prior three months. Notably, the gap between lenders reporting easing as opposed to tightening over the prior three months jumped to 20 percentage points and 18 percentage points for GSE eligible and non-GSE eligible loans, respectively—reaching new survey highs of “net easing.” In addition, the share of lenders who expect their organizations to ease credit standards over the next three months ticked up this quarter for both GSE eligible and non-GSE eligible loans.

Highlights from the survey include:
•Senior mortgage executives continue to be more optimistic about the economy than general consumers.
•Senior mortgage executives continue to be more optimistic than general consumers about future home prices.
•Senior mortgage executives continue to be less optimistic than general consumers when it comes to the ease of getting a mortgage today.
•The share of lenders reporting increased purchase mortgage demand over the prior three months fell slightly this quarter (Q3 2015) from last quarter (Q2 2015), but overall remains at a high level compared with the 2014 readings.
•For purchase mortgage demand over the next three months, the share of lenders expecting demand to go up fell this quarter from last quarter, likely reflecting seasonal influences, but remains higher than the same period last year (Q3 2014).