Archive for February, 2014

2014 C.A.R’s Housing Forecast

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California home sales and prices to rise in 2014 as market transitions toward primary home buyers.

The C.A.R. forecast sees sales gaining 3.2% next year.  Sales in 2013 will be down 2.1% from 2012. (Home sales in Santa Clara County are down 13.1% through November.)

“The housing market has improved over the past year, and we expect this trend to continue into 2014,” said C.A.R. President Don Faught. “As the economy enters the fourth year of a modest recovery, we expect to see a strong demand for homeownership, as buyers who have been competing with investors and facing an extreme shortage of housing return from the sidelines.”

The average for 30-year fixed mortgage interest rates will rise to 5.3%.

The California median home price is forecast to increase 6% to $432,800 in 2014, following a projected 28% increase in 2013 to $408,600. (The median price in Santa Clara County is up 18.5% through November.)

“We’ve seen a marked improvement in housing market conditions in a year with the distressed market shrinking from one in three sales a year ago to less than one in five in recent months, thanks primarily to sharp gains in home prices,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.  “As the market continues to improve, more previously underwater homeowners will look toward selling, making housing inventory less scarce in 2014.  As a result of these factors, we’ll see home price increases moderate from the double-digit increases we saw for much of this year to mid-single digits in most of the state.”

To read the full report: http://hartland.rereport.com/

 

Trends at a Glance

(Single-family Homes)

 

Nov 13

Oct 13

Nov 12

Median Price:

$   790,000

 $   760,000

 $685,000

Average Price:

$1,066,870

 $   994,010

 $885,921

Home Sales:

735

779

903

Pending Sales:

990

1,147

1,500

Inventory:

831

1,087

782

Sale/List Price Ratio:

102.7%

102.7%

102.3%

Days on Market:

28

28

32

Days of Inventory:

33

42

25

The Real Estate Report provides an automatic, easy to use, property analysis feature, a mini-CMA. You can access it in the Property Analysis tab. Input your address and get a list of properties around yours that have recently sold or are currently listed for sale, all on an easy to read map.

 

Market Normalizing?

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There are signs the Santa Clara real estate market is backing off from the latest push to bubblehood.

Investors are backing out of the market, mortgage rates are expected to keep rising, although mortgage rates did ease a bit recently, and, rather than 10+ offers on the best properties, we’re seeing 2-3 offers.

Prices are reflecting the pull back. The 3-month moving average for single-family, re-sale homes average price dropped below $1,000,000 in October, after being above that mark for five straight months.

These are all good signs for your regular buyer who wants to move into a home.

To read the full report: http://hartland.rereport.com/

 

Trends at a Glance

(Single-family Homes)

 

Oct 13

Sep 13

Oct 12

Median Price:

$760,000

 $   775,535

 $695,000

Average Price:

$994,010

 $   981,838

 $901,408

Home Sales:

779

904

982

Pending Sales:

1,147

1,147

1,640

Inventory:

1,087

1,293

1,038

Sale/List Price Ratio:

102.7%

102.6%

102.2%

Days on Market:

28

26

34

Days of Inventory:

42

41

32

The Real Estate Report provides an automatic, easy to use, property analysis feature, a mini-CMA. You can access it in the Property Analysis tab. Input your address and get a list of properties around yours that have recently sold or are currently listed for sale, all on an easy to read map.

Click http://hartland.rereport.com/ to see an example.

Government Shutdown to Put Brakes on Market

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Many, but not all, government agencies involved in the real estate market have either closed or curtailed their activities since congress failed to approve funding.

The IRS is closed and has suspended the processing of all forms. Some of these forms, particularly tax return transcripts, are required for many kinds of loans, including FHA and VA.

SSA is also closed and will not be verifying social security numbers, a further complication for mortgage processing.

The FHA will continue to endorse new loans for the Single Family Mortgage Loan Program, but will not make new commitments to the Multi-family program.

Lends will continue to process and guaranty mortgages through the VA Loan Guaranty program. Expect some delays.

To read the full report: http://hartland.rereport.com/

 

Trends at a Glance

(Single-family Homes)

 

Sep 13

Aug 13

Sep 12

Median Price:

$   775,535

 $   808,197

 $   655,000

Average Price:

$   981,838

 $1,010,830

 $   832,293

Home Sales:

904

1,035

886

Pending Sales:

1,147

1,306

1,769

Inventory:

1,293

1,227

1,228

Sale/List Price Ratio:

102.6%

103.5%

102.5%

Days on Market:

26

21

34

Days of Inventory:

41

36

40

The Real Estate Report provides an automatic, easy to use, property analysis feature, a mini-CMA. You can access it in the Property Analysis tab. Input your address and get a list of properties around yours that have recently sold or are currently listed for sale, all on an easy to read map.

Click http://hartland.rereport.com/ to see an example.

Jumbo Loans Cheaper Than Conforming Loans

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The Mortgage Bankers Assn. reported the average contract rate for a conforming loan with a 20% down payment was 4.73% last week, compared with 4.71% for a similar jumbo loan.

Jumbos are defined as mortgages over $625,500 in much of California.

The difference was more pronounced in the “hybrid” loans, popular with affluent buyers, that have a fixed rate for five, seven or 10 years before becoming adjustable.

Wells Fargo was making 30-year fixed jumbos with no upfront costs to borrowers at 4.75% on Thursday, compared with conforming loans at 5%.

For a loan with a rate fixed for the first 10 years, Wells was writing mortgages at 4.125% for jumbos compared with 4.875% for conforming loans.

The reason for the difference is that Wells Fargo has been keeping low-risk jumbo loans on its books rather than selling them as fodder for mortgage-backed securities.

Big banks are flooded to the gills with deposits that are costing them virtually nothing. Wells Fargo, for example, reported that as of the second quarter this year it was paying an average of 0.14% a year interest on its $1 trillion in deposits.

To read the full report: http://hartland.rereport.com/

 

Trends at a Glance

(Single-family Homes)

 

Aug 13

Jul 13

Aug 12

Median Price:

$   808,197

 $   840,000

 $   675,000

Average Price:

$1,010,830

 $1,052,610

 $   860,478

Home Sales:

1,035

1,052

1,026

Pending Sales:

1,306

1,284

1,577

Inventory:

1,227

1,433

1,194

Sale/List Price Ratio:

103.5%

104.7%

101.8%

Days on Market:

21

21

32

Days of Inventory:

36

41

35

The Real Estate Report provides an automatic, easy to use, property analysis feature, a mini-CMA. You can access it in the Property Analysis tab. Input your address and get a list of properties around yours that have recently sold or are currently listed for sale, all on an easy to read map.