Category Archives: Purchase

Home values rise for first time in 5 years

By Les Christie @CNNMoney July 24, 2012: 5:16 AM ET

Home prices nationwide have hit a bottom, and home values are finally on the rise.

Home prices nationwide have hit a bottom, and home values are finally on the rise.

NEW YORK (CNNMoney) — Home prices hit a bottom and are finally bouncing back, according to an industry report released Tuesday.

Nationwide, home values rose 0.2% year-over-year to a median $149,300 during the second quarter, the first annual increase since 2007, real estate listing site Zillow reported. Prices were up 2.1% from the first quarter.

Even though June marked the fourth consecutive month of home value increases, overall home prices are still down almost 24% since April 2007, when Zillow began to track home values.

“[I]t seems clear that the country has hit a bottom in home values,” said Zillow’s chief economist Stan Humphries. “The housing recovery is holding together despite lower-than-expected job growth, indicating that it has some organic strength of its own.”

Last winter, Zillow projected that the housing market turnaround would not arrive until the end of the year.

Other home price indexes have also recorded gains lately, including the S&P/Case-Shiller home price index. In it latest release, it reported thathome prices in 20 major markets rose 1.3% in April, the first monthly increase in seven months.

Zillow uses a different methodology in calculating home values than other home price indexes like Case-Shiller and the Federal Housing Finance Agency. Sales of foreclosed, bank-owned properties, for example, are not factored into Zillow’s data. Zillow does include short sales, however, which are more difficult to distinguish from conventional sales.

“Our index is geared to consumers, conventional sellers deciding whether they want to put their homes on the market,” said Humphries.

The indexes that include foreclosures in their market data show larger price declines. The peak-to-trough drop for the S&P/Case-Shiller home price index, for example, is about 34% compared with Zillow’s 24%.

Fewer than one third of the 167 metro areas Zillow surveyed recorded annual increases in home values, but the size of the price gains in these areas more than offset the losses posted by the remaining two-thirds of the markets.

In Phoenix, the biggest gainer, home values soared 12.1% year-over-year to a median of $136,200. Meanwhile, the biggest loss sustained by any of the 30 largest metro areas was in Chicago where median home values fell 5.8% to $158,600…….

==> Continue reading article here – http://money.cnn.com/2012/07/24/real_estate/home-values/index.htm

Fannie Mae sees 2012 home sales up 3.5% to 4.74 million

by ANDREW SCOGGIN

The housing sector will likely take incremental steps forward in 2012, though total originations will fall on fewer refinances, according to economists at Fannie Mae.

The second half of the year should outpace the first six months in terms of growth, though fiscal policy and political uncertainty in Washington will likely drive consumer and business activity, the mortgage giant said.

Chief Economist Doug Duncan said positive consumer activity and challenges in housing and the global economy will equate to moderate growth for the year.

“We’re entering 2012 with decent momentum, especially on the employment side, which is fostering positive household and consumer behavior,” Duncan said in a release. “Unfortunately, we expect this momentum to slow as we move through the first half of the year.”

The report released Friday forecast total home sales to increase 3.5% to about 4.74 million in 2012 from 2011 with another 5% gain in 2013 to nearly 5 million. New home sales could jump 10.4% for 2012. Continue reading

Obama administration ramps up mortgage refinancing effort

From McClatchy News Service

WASHINGTON — The Obama administration, worried that the housing crisis is strangling the economic recovery, is stepping up efforts to aid the battered market as another wave of home foreclosures threatens to drive values down further and rattle consumer confidence again.

But the administration’s piecemeal approach — giving temporary reprieves to the jobless, converting empty homes into rental properties, allowing more people to refinance mortgages — isn’t going to help much, said industry leaders and even some lawmakers in the president’s own party. Continue reading

Mortgage rates at all-time lows, but few qualify

Carolyn Said, Chronicle Staff Writer
Friday, October 7, 2011

Steven Senne / AP
A home with a for sale sign in front, in Newton, Mass. The average rate on the 30-year fixed mortgage fell to 3.94 percent this week, the lowest rate ever. For those who can qualify, it’s an extraordinary opportunity to buy or refinance.

Mortgage rates hit historic lows on Thursday, falling below 4 percent for the first time since Freddie Mac started keeping track in 1971.

The average rate for a 30-year fixed was 3.94 percent for the week ended Thursday, it said. The average 15-year rate was 3.26 percent.

The bad news is that only a small pool of borrowers can qualify to take advantage of those cheap mortgages – and many of them have already done so during the past months of falling rates.

“It’s certainly a historic and psychological barrier to go below 4 percent,” said Guy Cecala of Inside Mortgage Finance. “But I don’t think it will have a huge impact because people are not buying homes for other reasons than the interest rate. We tend to be refinancing the same group of qualified borrowers, not really opening up the market to other people.”

Mitchell Chernock, president of Sky Valley Financial, a mortgage broker in Benicia, put it more bluntly. Continue reading

Vacant Condos Trade in Short Sale, Buyer to Lease Units

Article by Bob Howard of GlobeSt.com

LOS ANGELES COUNTY
EAGLE ROCK, CA-The newly built Oxy Lofts condominiums at 4547-4555 Eagle Rock Blvd. have traded in a lender-assisted short sale in this week’s roundup of commercial real estate news in the West. Marcus & Millichap executive vice president Ron Harris and associate director Paul Darrow in the company’s Downtown L.A. office, who represented both the buyer and the seller, tell GlobeSt.com that the buyer paid $8.6 million in the all-cash transaction. Harris and Darrow point out that the property, which includes 32 residential units and one commercial space, features loft and townhome style floorplans designed by architect Jay Vanos to appeal to young professionals who have begun moving eastward to Eagle Rock from areas like Silverake and Los Feliz. “Although the units were individually parceled for condominiums, the buyer will lease the apartments and consider selling the units as condos in a future market cycle,” Harris said. Darrow noted that, “This is the second transaction that Eagle Rock has seen this quarter in which an institutionally profiled buyer purchased a site from a local developer.  Continue reading

Gov. Brown signs AB 771

For release:
September 1, 2011

Governor Brown Signs Bill Preventing Gouging of Condominium/Townhome Buyers

LOS ANGELES (Sept. 1) – The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) applauds Gov. Jerry Brown for signing AB 771, a bill that prevents home buyers in a common interest development (CID), such as a condominium or townhome, from being charged excess document fees. Continue reading

Short sale process broken, REALTOR survey finds

For release:
July 21, 2011

Short-sale process broken, pushing Central Valley families into foreclosure,
REALTOR® survey shows
Latest lender satisfaction survey highlights glaring issues in short-sale process

FRESNO, CALIF.  (July 21) – More than half of Central Valley REALTORS® characterized closing short-sale transactions as “difficult” or “extremely difficult,” according to a Lender Satisfaction Survey conducted by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).  The survey gauges REALTORS®’ experience working with lenders in their most recent transaction.  The majority of those surveyed dealt with short-sale transactions – transactions in which the lender or lenders agree to accept less than the mortgage amount owed by the current homeowner. Continue reading

NEW – Search Properties for Sale Throughout San Diego, CA!

My property search page has been completely redesigned to make searching properties available for sale just a bit easier. Browse through and take a look! You have the option to register which will allow you to receive updates as new properties hit the market. Also, click on “Schedule Showing” to alert me and we can set something up to take a look. If you’re REALLY interested, click “Place an Offer” and type in your details:

 

http://www.JerryBice.com/search.html

Fannie Mae Buyer Incentive – Closing Cost Assistance

Please view the HomePath website here to learn more about the current buyer incentives – http://www.homepath.com/incentive/index.html

HomePath® Buyer Incentive: June 14 – October 31

Fannie Mae is currently offering buyers up to 3.5% in closing cost assistance through October 31, 2011. A $1,200 selling agent bonus is also available to selling agents who close on an owner occupant property and meet all eligibility requirements and terms and conditions. Continue reading