David Breidenbach
Century 21 Award

Realtor®

CA DRE License Number: 01297253

Century 21 Award
9934 Mercy Road, Suite 200 San Diego CA 92129
CALIFORNIA ASSOCIATION OF REALTORS CALIFORNIA ASSOCIATION OF REALTORS
C.A.R. Newsline
 

 
 
 
11/1/2017 
Table of contents
 
» Wildfire Recovery Resources
» The Return of the HELOC
» National Home Price Index Reaches New High
» Homeownership Rate Rises Slightly in Q3
» Additional stories
 
 
 
The Return of the HELOC
Approximately 10 million consumers are expected to originate a home equity line of credit (HELOC) between 2018 and 2022. This would more than double the 4.8 million HELOCs originated in the previous five-year period (2012-2016). The projection is part of a new TransUnion study that evaluated recent dynamics in the HELOC industry.
 
TransUnion projects 1.4 million new HELOC borrowers in 2017 and 1.6 million in 2018, about a 30 percent increase from the previous two-year period of 2015 (1.1 million) and 2016 (1.2 million).
 
The TransUnion HELOC study found that rising home prices and the resulting increase in equity is beginning to fuel interest in HELOCs. The Case-Shiller home price index rose as high as 180 in 2005 and 185 in 2006 before dropping to 134 in 2012. By July 2017 it had risen again to 194, and is expected to rise in the next few years to well over 200.
 
According to the study, there were 4.9 million HELOC originations in 2005 when home equity stood at $13.3 Trillion. HELOC originations dropped to a mere 600,000 in 2011 as home equity declined to $6.3 Trillion. Home equity has once again risen to $13.3 Trillion in 2016, yet HELOC originations continued to be low at 1.2 million.
More info
 
Homeownership Rate Rises Slightly in Q3
National vacancy rates in the third quarter 2017 were 7.5 percent for rental housing and 1.6 percent for homeowner housing. The rental vacancy rate of 7.5 percent was 0.7 percentage points higher than the rate in the third quarter 2016 (6.8 percent) and not statistically different from the rate in the second quarter 2017 (7.3 percent). The homeowner vacancy rate of 1.6 percent was 0.2 percentage points lower than the rate in the third quarter 2016 (1.8 percent) and not statistically different from the rate in the second quarter 2017 (1.5 percent).
 
The homeownership rate of 63.9 percent was not statistically different from the rates in the third quarter 2016 (63.5 percent) or the second quarter 2017 (63.7 percent).
More info
 
West Coast Markets Leading Nation in Home Value Growth
Booming West Coast markets Seattle and San Jose, Calif. are leading the nation in home value growth. After one of the most competitive home shopping seasons in recent history, demand for homes in the West remains high as people flood the area for jobs.
 
Nationally, home values are 6.9 percent more expensive than a year ago, with the median U.S. home now worth $202,700, according to the September Zillow Real Estate Market Report.
 
Seattle and San Jose reported double-digit home value appreciation over the past year. In Seattle, home values are 12.4 percent higher than at this time last year, and home values are just over 10 percent higher in San Jose. Following these two metros in home value growth are Las Vegas, Charlotte, N.C. and Orlando, Fla. This is the ninth month in a row that Seattle home values have been the fastest growing in the nation.
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Fast Facts
 
Calif. median home price: September 2017:
California: $555,410
Calif. highest median home price by region/county: San Mateo, $1,400,500
Calif. lowest median home price by region/county: Lassen, $145,500
Calif. Pending Home Sales Index:
 
Pending Home Sales Index declining 6 percent from 127.7 in September 2016 to 120 in September 2017.
 
Mortgage rates:
 
Week ending 10/26/2017 (Source: Freddie Mac)
 
30 year fixed: 3.94% fees/points: 0.5%
15-year fixed: 3.25% fees/points: 0.6%
 
Study: Your Listing’s Words Carry Weight
A new study by CoreLogic finds that properties that contain certain words in their listing comments tend to sell for higher prices.
 
Researchers analyzed more than 1 million single-family transactions that closed in the first half of 2017. Every property analyzed had public remarks and comments from which researchers extracted word pairs. Prices can vary geographically on how much weight certain words may have.
 
But one house feature that stood out was “pane windows,” which could represent dual-pane windows or energy-efficient windows, CoreLogic researchers found. The use of “pane windows” in listing comments tended to equate to higher home prices, researchers found. Other words that tended to carry the most weight are “new construction,” “remodeled kitchen,” and several paint references, whether for the interior or exterior.
More info
 
 
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Wildfire Recovery Resources
Recovery and assistance efforts for the many victims of the wildfires that ravaged northern and central California nearly one month ago are ongoing and still very fresh in the minds of those affected.
 
If you, a family member, friend, or colleague have been impacted by the wildfires or other natural disaster, you can find information here. The California Governor’s Office of Emergency Services also has information about housing and assistance available.
 
C.A.R. also would like to remind members of the REALTOR® family that donations are still very much needed for the C.A.R. Disaster Relief Fund. Donations can be made online. Checks also can be sent to the California Community Foundation at 221 S. Figueroa St., Suite 400, Los Angeles, CA 90012. Please note on the member line that the donation is for the CALIFORNIA ASSOCIATION OF REALTORS® Disaster Relief Fund.
 
 
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National Home Price Index Reaches New High
Data released for August 2017 shows that home prices continued their rise across the country over the last 12 months. The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index reported a 6.1 percent annual gain in August, up from 5.9 percent in the previous month. The 10-City Composite annual increase came in at 5.3 percent, up from 5.2 percent the previous month. The 20-City Composite posted a 5.9 percent year-over-year gain, up from 5.8 percent the previous month.
 
Seattle, Las Vegas, and San Diego reported the highest year-over-year gains among the 20 cities. In August, Seattle led the way with a 13.2 percent year-over-year price increase, followed by Las Vegas with an 8.6 percent increase, and San Diego with a 7.8 percent increase.
More info
 
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Consumer Confidence Improves in October
The Conference Board Consumer Confidence Index, which had improved marginally in September (an upward revision), increased again in October. The Index now stands at 125.9 (1985=100), up from 120.6 in September. The Present Situation Index increased from 146.9 to 151.1, while the Expectations Index rose from 103.0 last month to 109.1.
 
Consumers’ appraisal of present-day conditions improved in October. The percentage saying business conditions are “good” increased from 33.4 percent to 34.5 percent, while those saying business conditions are “bad” rose marginally from 13.2 percent to 13.5 percent. Consumers’ assessment of the job market was more upbeat. The percentage of consumers stating jobs are “plentiful” increased from 32.7 percent to 36.3 percent, while those claiming jobs are “hard to get” decreased slightly from 18.0 percent to 17.5 percent.
More info
 
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C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 195,000 REALTORS® statewide. C.A.R. does not in any way endorse or sponsor any product or service or vendor mentioned herein unless expressly stated.
 
EDITED BY: Mary Belongia
 
Copyright © 2017 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)


​2/23/2017​


CALIFORNIA ASSOCIATION OF REALTORS


CALIFORNIA ASSOCIATION OF REALTORS

C.A.R. Newsline

Table of contents

»

Foreclosure Inventory Declines in December

»

Mastering the New CAR.org

»

Building Permits Fall, Housing Starts Rise in January

»

California Housing Market Kicks Off Year Higher in January

»

Older Americans Face Challenges When Aging in Place

»

Additional stories

 

 


 

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California Housing Market Kicks Off Year Higher in January
California’s housing market started the year on a high note, following up on December’s strong showing with higher sales both on a monthly and yearly basis in January, C.A.R. reported.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 420,100 units in January, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.

The January figure was up 2.1 percent from the 411,430 level in December, and up 4.4 percent compared with home sales in January 2016 of a revised 402,220. The month-to-month gain was the first December-to-January increase since 2012, which is an encouraging sign.

The median price of an existing, single-family detached California home fell below the $500,000 mark for the first time since March 2016, but home prices remain seasonably strong. The median price was down 3.8 percent from a revised $508,870 in December to $489,580 in January.

January’s median price was up 4.8 percent from the revised $467,160 recorded in January 2016, a slightly slower pace than the 5.6 percent increase averaged last year. Since 2011, price declines from December to January have usually ranged from -11.7 percent to as little as -4.6 percent, but January’s 3.8 percent monthly smaller price decline suggests that price pressure remains relatively robust and could translate into additional price growth as the spring and summer home-buying seasons near.
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Study Finds Even Renters Can Be NIMBYs
Usually it’s existing homeowners who are associated with blocking new lower income construction, due to fears that their property value could be affected, neighborhood aesthetics, or local protectionism. But a new study shows that renters in high-cost cities may hold that same NIMBYism—not-in-my-back-yard—mentality too.

Renters in high-rent cities are showing NIMBYism toward market-rate housing at a level that matches homeowners, finds new research by Michael Hankinson at the Joint Center for Housing Studies at Harvard University. Hankinson examined attitudes toward new development in a new survey with more than 3,000 respondents, and then juxtaposed the data with a poll to more than 1,600 San Francisco residents.

He found impressions changed due to the proximity and type of housing proposed. For example, affordable housing proposed within a 2-minute walking distance was more unpopular than market-rate development two miles away. Notably, in high-rent cities renters objected to market-rate development at the same rate that homeowners did. Renters objected even though they showed strong support for increasing the city’s housing supply.
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New Loan Allows Borrowers to Tap into Equity from Renovated Multifamily Properties
Fannie Mae recently introduced a new Moderate Rehabilitation Supplemental Loan that allows multifamily property owners to take advantage of increases in the value of their multifamily properties following significant renovations.

As apartment buildings age and borrowers look to maximize rehabilitation opportunities, Fannie Mae’s new Mod Rehab Supplemental Loan gives borrowers access to equity when coupled with an existing Mod Rehab loan. Borrowers can take advantage of the increased value created through the renovation of a multifamily property that has been completed within 36 months of first lien origination and amounts to at least $10,000 per unit. Also, borrowers may qualify for a standard Supplemental Loan in addition to the new Mod Rehab Supplemental Loan.
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Fast Facts

  • California: $489,580
  • Calif. highest median home price by region/county: Marin and San Mateo, $1,150,000
  • Calif. lowest median home price by region/county: Kings, $200,000

Calif. Pending Home Sales Index
Statewide pending home sales increased in December on a seasonally adjusted basis, with the Pending Home Sales Index (PHSI)* rising 1.9 percent from 115.8 from December 2015 to 118.1 in December 2016.

Calif. Traditional Housing Affordability Index: 
Fourth Quarter 2016: 31 percent

Mortgage rates: Week ending 2/16/2017 
(Source: Freddie Mac)

  • 30 year fixed: 4.15% fees/points: 0.5%
  • 15-year fixed: 3.35% fees/points: 0.5%

Foreclosure Inventory Declines in December
Foreclosure inventory declined 30 percent and completed foreclosures declined 40 percent year-over-year in December, according to a report by CoreLogic.

The foreclosure inventory represents the number of homes at some stage of the foreclosure process and completed foreclosures reflect the total number of homes lost to foreclosure.

As of December 2016, the national foreclosure inventory included approximately 329,000, or 0.8 percent, of all homes with a mortgage compared with 467,000 homes, or 1.2 percent, in December 2015.
More info

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Building Permits Fall, Housing Starts Rise in January

Building permits for single-family homes decreased 2.7 percent at a rate of 808,000 in January, while single-family housing starts increased 1.9 percent at a rate of 823,000, according to a joint report by HUD and the Census Bureau.
More info

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Older Americans Face Challenges When Aging in Place
Freddie Mac released its Insight for February, which outlines challenges, costs and potential solutions of addressing the desire of older Americans to age in place. Survey data shows half of all 55+ Americans and three quarters of 75+ Americans are impacted by at least one physical functional limitation, heightening the growing demand for retrofitting.

Highlights include:

  • The Freddie Mac survey of the 55+ population indicates almost two-thirds of homeowners -- 43 million people -- wish to age in place.
  • Two-thirds of survey participants report their homes are not accessible for someone with arthritis, limited mobility, or in a wheelchair.
  • About 1.5 million older households today need some retrofitting, and that number rises to 2 million per year by 2030.
  • If a major retrofit is required, it can be 40 times more expensive than a simple retrofit such as adding some grab bars and new drawer handles.
  • Retrofitting may be too expensive for many of those who wish to age in place.

More info

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NAR, Realtor.com® Identify Growing Rift Between Housing Availability and Affordability
Existing-home sales are forecast to expand 1.7 percent in 2017, but a new housing affordability model created jointly by the NATIONAL ASSOCIATION OF REALTORS® and realtor.com suggests homebuyers at many income levels could see an inadequate amount of listings on the market within their price range in coming months. 

Using data on mortgages, state-level income, and listings on realtor.com, the REALTORS® Affordability Distribution Cure and Score is NAR and realtor.com's new ongoing monthly research designed to examine affordability conditions at difference income percentiles for all active inventory on the market.

The Affordability Distribution Curve examines how many listings are affordable to those in a particular income percentile. The Affordability Score — varying between zero and two — is a calculation that is equal to twice the area below the Affordability Distribution Curve on a graph. A score of one or higher generally suggests a market where homes for sale are more affordable to households in proportion to their income distribution.
More info

 

 

 

 

 

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C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. C.A.R. does not in any way endorse or sponsor any product or service or vendor mentioned herein unless expressly stated.

EDITED BY: Mary Belongia

Copyright © 2017 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)


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​9/28/2016​

C.A.R. Newsline

Table of contents

»

Governor Brown Signs C.A.R.’s PACE Loans Bill

»

Home Price Gains Slow in July

   

»

Consumer Confidence Index Improved in September

»

FHA Proposes New Approval Process for Condo Developments

»

Additional stories

 

 


 

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FHA Proposes New Approval Process for Condo Developments
In response to changing conditions in the condominium market, the Federal Housing Administration (FHA) proposed new regulations governing the approval process for condominium developments. FHA proposes to reinstate single unit approvals in unapproved condominium developments and to require condo projects to recertify their approval status every three years rather than the current two-year requirement.

FHA is also seeking the public's comment on a proposal to create a range of thresholds required for FHA approval including the minimum owner-occupants in approved condo developments and limits on commercial/non-residential space. Ultimately, FHA will have the ability to specify new owner-occupancy, commercial/non-residential, and single-unit thresholds within the proposed ranges through a notice, handbook or mortgagee letter.

FHA's intent is to modify its condominium rules to ensure financial soundness and project viability, but in a manner that is more flexible where possible and responsive to the market. The proposed rule published today includes the following key provisions that will allow the agency to be more nimble in responding to future changes to the condo market.

Low Mortgage Rates Sustain Improving Housing Markets
Freddie Mac released its
Multi-Indicator Market Index (MiMi), showing two additional metro areas -- Indianapolis, Indiana, and Columbus, Ohio -- entering their historic benchmark levels of housing activity.

The national MiMi value stands at 85.1, largely unchanged from last month, indicating a housing market that's on the outer range of its historic benchmark level of housing activity with a +0.14 percent improvement from June to July and a three-month improvement of +1.24 percent. On a year-over-year basis, the national MiMi value improved +4.70 percent. Since its all-time low in October 2010, the national MiMi has rebounded 43 percent, but remains significantly off its high of 121.7. 

Seventy-nine of the 100 metro areas have MiMi values within range, with Los Angeles, (99.5); Salt Lake City, Utah (100.6); Provo, Utah (98.9); Honolulu, Hawaii (98.7); and Nashville, Tenn (101.6) ranking in the top five with scores closest to their historical benchmark index levels of 100.

 

 

 

Governor Brown Signs C.A.R.’s PACE Loans Bill
Governor Brown has signed C.A.R.’s Property Assessed Clean Energy (PACE) loans bill. Existing law requires home loans to be accompanied by the Truth in Lending RESPA Integrated Disclosure (TRID), which is intended to allow an “apples to apple” comparison shopping of various loan products. However, PACE transactions are technically not loans and are not required to be accompanied by a TRID disclosure. Current law gives delinquent PACE assessments “super-priority” status, as part of the tax bill, over other recorded obligations; lenders require these “super liens” to be paid off before any new financing can be obtained. This measure will required a TRID-like disclosure be provided to a property owner participating in a PACE program, a three-day right of rescission, and a notice that the property owner may not be able to refinance or sell without paying off the PACE “loan.”

 


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Home Price Gains Slow in July
S&P Dow Jones Indices’ latest results for the S&P CoreLogic Case-Shiller Indices for July 2016 show that home prices continued their rise across the country over the last 12 months.

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 5.1 percent annual gain in July, up from 5 percent last month. The 10-City Composite posted a 4.2 percent annual increase, down from 4.3 percent the previous month. The 20-City Composite reported a year-over-year gain of 5 percent, down from 5.1 percent in June. 

Before seasonal adjustment, the National Index posted a month-over-month gain of 0.7 percent in July. The 10-City Composite recorded a 0.5 percent month-over-month increase while the 20-City Composite posted a 0.6 percent increase in July. After seasonal adjustment, the National Index recorded a 0.4 percent month-over- month increase, the 10-City Composite posted a 0.1 percent decrease, and the 20-City Composite remains unchanged.

 

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Consumer Confidence Index Improved in September
The Conference Board Consumer Confidence Index, which had increased in August, improved further in September. The Index now stands at 104.1 (1985=100), up from 101.8 in August. The Present Situation Index rose from 125.3 to 128.5, while the Expectations Index improved from 86.1 last month to 87.8.

Consumers’ assessment of current conditions improved in September. Those stating business conditions are “good” decreased from 30.3 percent to 27.4 percent. However, those saying business conditions are “bad” declined from 18.2 percent to 16.2 percent. Consumers’ appraisal of the labor market was more positive than last month. Those stating jobs were “plentiful” increased from 26.8 percent to 27.9 percent, while those claiming jobs are “hard to get” declined from 22.8 percent to 21.6 percent.

 

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New Home Sales Rise in August
Sales of new single-family houses in August 2016 were at a seasonally adjusted annual rate of 609,000, according to estimates released jointly by the U.S. Department of Housing and Urban Development (HUD) and the U.S. Census Bureau. This is 7.6 percent below the revised July rate of 659,000, but is 20.6 percent above the August 2015 estimate of 505,000.

The median sales price of new houses sold in August 2016 was $284,000; the average sales price was $353,600. The seasonally adjusted estimate of new houses for sale at the end of August was 235,000. This represents a supply of 4.6 months at the current sales rate.

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Fast Facts

  • California: $526,580
  • Calif. highest median home price by region/county: San Francisco, $1,257,500
  • Calif. lowest median home price by region/county: Del Norte, $174,500

Calif. Pending Home Sales Index
The Pending Home Sales Index (PHSI) increased 3.5 percent from 118.4 in July 2015 to 122.5 in July 2016

Calif. Traditional Housing Affordability Index:
Second Quarter 2016: 31 percent

Mortgage rates: Week ending 9/22/2016
(Source: Freddie Mac)

  • 30 year fixed: 3.48% fees/points: 0.6%
  • 15-year fixed: 2.76% fees/points: 0.5%

 

 

 

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C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. C.A.R. does not in any way endorse or sponsor any product or service or vendor mentioned herein unless expressly stated.

EDITED BY: Mary Belongia

Copyright © 2016 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

 

​9/21/2016​



C.A.R. Newsline

Table of contents

»

Homeowners Embrace Smart Technology When Renovating Homes

»

SFAOR Wins Ellis Act Case on 10-year Waiting Period

»

California Housing Market Loses Momentum in August

»

Building Permits Rise, Housing Starts Fall in August

»

U.S. Home Flipping Increases to a Six-Year High in Q2 2016

»

Additional stories

 

 


 

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California Housing Market Loses Momentum in August
California home sales downshifted in August as low housing affordability and a tight supply of homes for sale cut into demand, especially in high cost areas of the San Francisco Bay region, C.A.R. said earlier this week.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 420,360 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 up 1.1 percent from the revised 415,840 level in July and down 2.2 percent compared with home sales in August 2015 of a revised 429,900. Home sales remained above the 400,000 pace for the fifth straight month, but sales have declined year over year for the sixth consecutive month.

The statewide median price remained above the $500,000 mark for the fifth straight month and is at its highest level in nearly seven years. There are, however, signs of an expected slowing in price growth. The median price of an existing, single-family detached California home was up 1.7 percent in August to $526,580 from $517,650 in July. August’s median price increased 5.8 percent from the revised $497,520 recorded in August 2015.
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U.S. Home Flipping Increases to a Six-Year High in Q2 2016
ATTOM Data Solutions the new parent company of RealtyTrac, released its Q2 2016 U.S. Home Flipping Report, which shows a total of 51,434 U.S. single family home and condo sales were completed flips in the second quarter of 2016, up 14 percent from the previous quarter and up 3 percent from a year ago to the highest number of home flips since Q2 2010 — a six-year high.

For the report, a home flip is defined as a property that is sold in an arms-length sale for the second time within a 12-month period based on publicly recorded sales deed data collected by ATTOM Data Solutions in more than 950 counties accounting for more than 80 percent of the U.S. population.

Homes flipped in Q2 2016 accounted for 5.5 percent of all single family and condo sales during the quarter, down from 6.7 percent of all sales in the first quarter but up from 5.4 percent of all sales in Q2 2015.

A total of 39,775 investors (including both individuals and institutions) completed at least one home flip in Q2 2016, the highest number of home flippers since Q2 2007 — a nine-year high.
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Outlook Finds Housing Remains a Bright Spot for Economy
Freddie Mac recently released its monthly Outlook for September showing that housing remains a bright spot for the U.S. economy. Mortgage originations are expected to surge in the third quarter, and our forecast for the best year in home sales since 2006 looks increasingly on the mark.

Highlights from the Outlook include:

  • Expecting the 30-year fixed rate mortgage to average 3.6 percent in 2016, the lowest annual average in over 40 years. The current record low annual average occurred in 2012 at 3.66 percent.
  • Showing that falling mortgage rates from 4 percent at the end of 2015 to about 3.5 percent in the third quarter of 2016 have more than offset the rise in house prices in most markets, helping to preserve homebuyer affordability.
  • Revising up the forecast of home price appreciation to 5.6 percent and 4.7 percent in 2016 and 2017, respectively. This is up from last month's forecast of 5.3 percent for 2016 and 4 percent for 2017.
  • Showing cash-out refinance activity on the rise in the second quarter, with an estimated $13.3 billion net dollars of home equity converted to cash during refinancing. This is up from $11.4 billion in the first quarter of 2016 but substantially less than the peak cash-out refinance volume of $84.0 billion during the second quarter of 2006.
  • Remaining on track for mortgage originations to reach $2 trillion in 2016, the highest total since 2012.

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Fast Facts

Calif. median home price: August 2016:

  • California: $526,580
  • Calif. highest median home price by region/county: San Francisco, $1,257,500
  • Calif. lowest median home price by region/county: Del Norte, $174,500

Calif. Pending Home Sales Index
The Pending Home Sales Index (PHSI) increased 3.5 percent from 118.4 in July 2015 to 122.5 in July 2016

Calif. Traditional Housing Affordability Index:
Second Quarter 2016: 31 percent

Mortgage rates: Week ending 9/15/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.50% fees/points: 0.5% 
  • 15-yr. fixed: 2.77% fees/points: 0.5%

Homeowners Embrace Smart Technology When Renovating Homes
Renovating homeowners are integrating “smart” features into their homes, according to the 2016 U.S. Houzz Smart Home Trends Survey, conducted in collaboration with CEDIA. The survey of nearly 1,000 homeowners in the midst of, planning, or who have recently completed a home renovation project found that nearly half of renovating homeowners are incorporating “smart” technology: systems or devices that can be monitored or controlled via smartphone, tablet or computer (45 percent). In fact, renovated homes are more than twice as likely to include a smart system or device than before the renovation (51 versus 20 percent, respectively). Nearly a third of upgraded smart home systems or devices can be controlled via a central hub (30 percent), and a quarter include voice-controlled features (26 percent). Homeowners report greater levels of satisfaction with their upgraded smart features than their non-smart features.
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SFAOR Wins Ellis Act Case on 10-year Waiting Period
The San Francisco Association of REALTORS® won a case earlier this week when it challenged an ordinance by the City of San Francisco that requires property owners to wait 10 years before merging multiple units into one unit, if the owner had previously exercised the right under the Ellis Act to exit the residential rental business.

The Ellis Act is a California statute that, among other things, protects property owners’ rights to exit the residential rental business and prohibits local government entities from forcing an owner to continue to offer a residential property for rent. 

The court found that the San Francisco ordinance penalized property owners for attempting to exit the residential rental business and that the Ellis Act overrides this local ordinance.

This is an important ruling for REALTORS® because it impacts a REALTOR®’s ability to sell property where an owner has previously exercised the right under the Ellis Act to exit the residential real estate business.
 

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Building Permits Rise, Housing Starts Fall in August
Building permits for single-family homes rose 3.7 percent to a rate of 737,000 in August, while housing starts for single-family homes declined 6 percent to a rate of 722,000, according to a joint announcement by the U.S. Census Bureau and the Dept. of Housing and Urban Development.
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Economic Growth on the Upswing
Economic growth is poised to accelerate to 2.6 percent in the second half of the year, a rebound from the lackluster growth of 1 percent in the first half of 2016, according to Fannie Mae’s Economic & Strategic Research (ESR) Group’s September 2016 Economic and Housing Outlook. The ESR Group’s full-year 2016 forecast remains at 1.8 percent, consistent with their prior forecast. Consumer and government spending are expected to drive growth despite a cooldown in consumer activity so far in the third quarter. At the same time, inventory investment and net exports are likely to drag on growth and nonresidential and residential investment are expected to be neutral for the year.
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Builder Confidence Surges in September
Builder confidence in the market for newly built, single-family homes in September jumped six points to 65 from a downwardly revised August reading of 59 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). This marks the highest HMI level since October 2015.

Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair,” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

All three HMI components moved higher in September. The component measuring current sales expectations rose six points to 71 and the gauge charting sales expectations in the next six months increased five points to also stand at 71. The index measuring traffic of prospective buyers posted a four-point gain to 48.

The three-month moving averages for HMI scores posted gains in three out of the four regions. The Northeast and South each registered a one-point gain to 42 and 64, respectively, while the West rose four points to 73. The Midwest was unchanged at 55.
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U.S. Home Inventory Falls for Fifth Straight Quarter
Trulia released a report that finds inventory falling for the fifth straight quarter, pushing home affordability further out of reach for more Americans. Meanwhile, in some markets across the country, inventory show signs of picking up.

Nationally, housing inventory continues to decline. This summer, the number of homes on the market dropped for the fifth straight quarter, extending a slump and dropping 6.7 percent over the past year. The number of starter and trade-up homes on the market nationwide has dropped 10.7 percent and 9.2 pecent, respectively. Meanwhile, premium home inventory dropped just 3.2 percent over the past year. The persistent and disproportional drop in starter and trade-up home inventory is pushing affordability further out of reach for homebuyers. Starter and trade-up homebuyers need to spend 1.7 percent and 0.9 percent more of their income than this time last year, whereas premium homebuyers only need to shell out 0.6% more of their income.
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C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. C.A.R. does not in any way endorse or sponsor any product or service or vendor mentioned herein unless expressly stated.

EDITED BY: Mary Belongia

Copyright © 2016 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

 

​9/14/2016​

C.A.R. Newsline

Table of contents

   

»

Home Prices Up 6 Percent in July

»

Ten Best Cities for Family Home Buyers

»

Real Estate's Public Image Surges

»

Less than Two Weeks Until EXPO

»

Additional stories

 

 


 

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Ten Best Cities for Family Home Buyers
BUILDER Magazine and Metrostudy combined their findings with recent research from WalletHub to pinpoint the best cities for families in home-shopping mode.

The analysis factors in the median price of new single-family homes as well as quality education, job markets, healthcare, crime, and divorce rates.

The following places emerged on top as the most family-friendly in 2016 for those looking to buy new single-family homes:

  • Omaha, Neb.: $244,200 (Median price of new single-family home Q2 2016)
  • Lincoln, Neb.: $288,800
  • Chesapeake, Va.: $300,000
  • Madison, Wis.: $312,500
  • Colorado Springs, Colo.: $324,100
  • Aurora, Ill.: $387,500
  • Virginia Beach, Va.: $407,100
  • Plano, Texas: $457,100
  • Overland Park, Kan.: $520,000
  • Fremont, Calif.: $1,577,800

While Fremont, Calif., has a high median new home price, researchers note it had one of the lowest divorce rates at 12.2 percent.
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Residential Vacancies Decrease 9 percent in Q3
ATTOM Data Solutions, the new parent company of RealtyTrac, released its Q3 2016 U.S. Residential Property Vacancy and Zombie Foreclosure Report, which shows nearly 1.4 million (1,361,188) U.S. residential properties (1 to 4 units) representing 1.6 percent of all residential properties were vacant as of the end of the third quarter. The number of vacant properties decreased 3 percent from the previous quarter and was down 9 percent from a year ago.

The report analyzes publicly recorded real estate data collected by ATTOM Data Solutions — including foreclosure status, equity, and owner-occupancy status — matched against monthly updated vacancy data from the U.S. Postal Service.

The report shows that as of the end of the third quarter, 18,304 U.S. residential properties actively in the foreclosure process were vacant (zombie foreclosures), representing 4.7 percent of all residential properties in foreclosure. The number of zombie foreclosures decreased 5 percent from the previous quarter and decreased 9 percent from Q3 2015.
More info

Fast Facts

Calif. median home price: July 2016:

  • California: $509,830
  • Calif. highest median home price by region/county: San Francisco, $1,362,500
  • Calif. lowest median home price by region/county: Tehama, $184,000

Calif. Pending Home Sales Index
The Pending Home Sales Index (PHSI) increased 3.5 percent from 118.4 in July 2015 to 122.5 in July 2016

Calif. Traditional Housing Affordability Index:
Second Quarter 2016: 31 percent

Mortgage rates: Week ending 9/8/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.44% fees/points: 0.6% 
  • 15-yr. fixed: 2.76% fees/points: 0.5%

Get ready for your close up!
C.A.R. is redesigning our website, car.org, and will be featuring some of our members.

Apply by Sept. 20 for a chance to be part of the official photoshoot and for an opportunity to be featured on the new site. Sorry, applications received after this date will not be considered.

The photo shoots will take place in San Francisco and Los Angeles. You should be able to travel to these locations and provide your own transportation. Before you apply, please make sure you’re available for the dates and locations below:
San Francisco: October 12
Los Angeles: October 14

We’d love to use every single REALTOR® who applies, but we’ve only got one website. Applicants will be selected at random and if you’re selected, you will be contacted with more details.

Apply today

- - - - - - -TOP 3 STRATEGIES OF MILLIONAIRE AGENTS No charge 3 hour Bootcamp gives real estate agents the key strategies that separate the winners from the also-rans. Only serious agents determined to achieve massive business growth should >> MORE
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Home Prices Up 6 Percent in July
CoreLogic released its CoreLogic Home Price Index (HPI) and HPI Forecast for July which shows home prices are up both year over year and month over month.

Home prices nationwide, including distressed sales, increased 6 percent year over year in July 2016 compared with July 2015 and increased 1.1 percent month over month in July 2016 compared with June 2016, according to the CoreLogic HPI.

The CoreLogic HPI Forecast indicates that home prices will increase 5.4 percent on a year-over-year basis from July 2016 to July 2017, and on a month-over-month basis home prices are expected to increase 0.4 percent from July 2016 to August 2016.
More info
 

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Real Estate’s Public Image Surges
Americans are rating the real estate industry much more favorably, according to a new Gallup poll of more than 1,000 Americans. Forty-four percent of Americans now view the industry positively and 21 percent view it negatively, according to Gallup. That boosts real estate to a plus-23 rating, which is up from a minus-40 following the housing crash in 2008.

This year, restaurateurs and computer makers topped Gallup’s list of 25 industries, but real estate is showing a significant improvement in its public image, the survey showed. Gallup noted that other recent surveys that have shown many Americans now view real estate as the best long-term investment are helping to buoy the sector’s favorability.
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The Economist Letter to Editor
C.A.R. President Pat “Ziggy” Zicarelli recently submitted a Letter to the Editor of The Economist to rebut an article arguing that the U.S. hasn’t done enough to reform Fannie Mae and Freddie Mac and that the GSEs should play by the same rules as banks. Zicarelli writes, “You argued that America has in effect nationalised its housing market (“Comradely capitalism,” August 20). But the government has been supporting home financing and incentives for the past 80 years, whether through the mortgage-interest deduction or programmes that ensure affordable mortgage capital. Washington’s inability to press forward with reform has caused uncertainty and restricted credit for homebuyers.
Read the full letter

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Home Appraisals Continue to Fall Below Owner Perceptions
Quicken Loans announced appraisals across the country were an average of 1.56 percent lower than what refinancing homeowners expected in August, according the company’s national Home Price Perception Index (HPPI).

The Quicken Loans Home Value Index (HVI), which measures home value changes exclusively through appraisals, moved higher yet in August. Home values increased 1.73 percent over the previous month, while jumping 8.13 percent higher than August 2015, according to the national HVI.
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Affordability Concerns Ensnaring Renters
Lofty home-price growth and tight supply are leading to softening confidence among renters about whether it’s a good time to buy a home, according to the latest installment of the NATIONAL ASSOCIATION OF REALTORS® Housing Opportunities and Market Experience (HOME) survey. The survey also found that a misconception about how much of a down payment is needed to buy could be unnecessarily delaying some qualified young adults from entering the market.

Heading into the autumn months, the share of homeowners and renters who believe now is a good time to buy remains at a solid majority but has crept downward since the beginning of this year. Seventy-eight percent of homeowners (80 percent in June; 82 percent in March) and 60 percent of renters (62 percent in the previous two quarters) said it’s a good time to buy. In the inaugural HOME survey in December 2015, 68 percent of renters said it was a good time to buy.
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C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. C.A.R. does not in any way endorse or sponsor any product or service or vendor mentioned herein unless expressly stated.

EDITED BY: Mary Belongia

Copyright © 2016 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

 

​9/7/2016​

C.A.R. Newsline

Table of contents

»

California Supreme Court to Hear Dual Agency Case

»

Homeownership Still Possible in Many Big U.S. Cities for Working Class

»

Vote for This Year’s Good Neighbor Web Choice Winner

»

Home Purchase Sentiment Down in August

»

AB 1381 Amended at Last Minute

»

Additional stories

 

 


 

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AB 1381 Amended at Last Minute

Late last week C.A.R. successfully pressed amendments to AB 1381 (Weber) only minutes before the bill's scheduled hearing in the Senate.

C.A.R. opposed the bill because it contained surprise amendments added during the last allowable day in the Senate, its second house.  Those amendments would have created a new exemption to the real estate license and would have permitted unlicensed agents to broker leases, sales and easements for the placement of outdoor advertising.

After considerable lobbying by both sides, which involved administration officials and the entire Senate, the bill was called back to the Business and Professions Committee.  C.A.R.'s member mobilization effort forced the proponents to accept the limiting amendments. The amendments ultimately agreed to made the advertising agents' rule essentially the same as the existing "principals' exemption" - that is, a corporation can use its own employees to work on its own transactions without having to have them licensed.  Any agency or brokerage on behalf of another or a third party still requires a licensee.

C.A.R. thanks all of the REALTORS® who contacted their state senators to voice their concerns about AB 1381. Your calls made the difference! 

Download the EXPO App
Stay connected at EXPO! Download C.A.R.’s mobile app for access to everything you need to know at EXPO. From sessions, to speakers and vendors, to special events – C.A.R. has you covered. Don’t forget to register for the WHO’S YOUR REALTOR®? EXPO by Sept. 9 to skip the line and receive your badge in the mail. See you in Long Beach Sept. 27-29!
Download it at expo.car.org/app

Prices Up 6 Percent Year Over Year in July
CoreLogic released its CoreLogic Home Price Index (HPI) and HPI Forecast for July 2016 which shows home prices are up both year over year and month over month.

Home prices nationwide, including distressed sales, increased 6 percent year over year in July compared with July 2015 and increased 1.1 percent month over month in July compared with June according to the CoreLogic HPI.

The CoreLogic HPI Forecast indicates that home prices will increase 5.4 percent on a year-over-year basis from July 2016 to July 2017, and 0.4 percent.
More info

 

Fast Facts

Calif. median home price: July 2016:

  • California: $509,830
  • Calif. highest median home price by region/county: San Francisco, $1,362,500
  • Calif. lowest median home price by region/county: Tehama, $184,000

Calif. Pending Home Sales Index
The Pending Home Sales Index (PHSI) increased 3.5 percent from 118.4 in July 2015 to 122.5 in July 2016

Calif. Traditional Housing Affordability Index:
Second Quarter 2016: 31 percent

Mortgage rates: Week ending 9/1/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.46% fees/points: 0.5% 
  • 15-yr. fixed: 2.77% fees/points: 0.5%

California Supreme Court to Hear Dual Agency Case
The California Supreme Court today heard oral arguments in a case, Horiike v. Coldwell Banker, that is being closely followed by the real estate industry, including C.A.R.

“At its core, the Horiike case is an issue of a buyer not reading all of the information that was presented to him, but Horiike is trying to turn a normal disclosure case into an agency case,” said C.A.R. President Pat “Ziggy” Zicarelli. “Some groups may believe that dual agency should be outlawed and want to use this case for that premise or as a stepping stone to that end.”

In the case, a homebuyer, Hiroshi Horiike purchased a mansion in Malibu, Calif., and worked with a Beverly Hills, Coldwell Banker real estate licensee. The property was listed by a Coldwell Banker licensee in another office. Horiike complained he was misled about the property’s square footage. The issue is complex, however.  The City of Malibu includes some outdoor living areas in determining square footage, which impacts whether the property may be expanded. Most square footage measurements do not include outdoor living areas in square footage. These facts were fully disclosed, but apparently the buyer never read the information. Horiike sued the seller’s licensee, Chris Cortazzo, stating that Cortazzo and Coldwell Banker breached their fiduciary duty and failed to advise him to hire a third party to verify the actual square footage.  He did not sue the Beverly Hills licensee with whom he was working.
More info

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Homeownership Still Possible in Many Big U.S. Cities for Working Class
Home buyers in cities across the U.S. are saying affordability is their biggest concern as home prices rise and inventory shrinks. But there is some good news for working-class home buyers. Across 40 large U.S. cities, 55 percent of homes for sale last month were affordable for a working-class household and still between two and four bedrooms in size, according to Redfin. Homes of this size matter because affording a home that’s big enough to comfortably fit a family is more difficult than affording a studio or a one-bedroom condo.

In 25 major U.S. cities, more than half the listings were affordable last month. Detroit was the most affordable U.S. city for a working-class household. Almost 97 percent of Detroit’s listings were big enough and affordable on a working-class household income. More than 80 percent of homes were affordable to working-class households in Cleveland, Baltimore, Columbus, Memphis and Philadelphia. But in San Francisco, the least affordable city, just 3 percent of these homes were priced within reach of a working-class household.
More info
 

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Home Purchase Sentiment Down in August
Fannie Mae’s August 2016 Home Purchase Sentiment Index (HPSI) decreased 1.5 points in August to 85, after an all-time high in July. Overall, the HPSI is up 4.2 points since this time last year.

Highlights from the Index include:

  • Increasing for the third consecutive month, the net share of Americans who say it is a good time to buy a house rose by 1 percentage point to 34 percent.
  • The net percentage of those who say it is a good time to sell fell 5 percentage points from an all-time high in July to 15 percent.
  • The net share of Americans who say that home prices will go up fell 6 percentage points from last month to 35 percent.
  • The net share of those who say mortgage rates will go down over the next year fell 2 percentage points to -38 percent, after increasing for the past three months.

More info


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New Reminder Added When Accessing zipForm®
Starting tomorrow, when accessing zipForm® via a desktop computer, members will see a new interstitial page informing users that zipForm® is an NAR and C.A.R. member benefit. After 5 seconds, a yellow button will appear that will allow users to continue to zipForm®.


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Buyers Feel Discouraged by the Housing Market
Homeowners are feeling increasingly confident that now is a good time to sell a home, but renters are feeling uncertain they'll be able to afford to buy, according to the latest Zillow Housing Confidence Index.

Existing homeowners have a more positive attitude toward selling than buying, an imbalance that is causing a slowdown in many markets, especially in the more expensive, urban cores. Less than 65 percent of homeowners surveyed said now is a good time to buy, a number that's been declining for the past two years.

Just 38 percent of renters surveyed said now is a good time to buy a home and about 50 percent of renters in San Francisco and New York expressed a lack of confidence in their ability to afford a home in the future. Almost half of the renters surveyed in Seattle, San Jose, and Boston had similar feelings.
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C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. C.A.R. does not in any way endorse or sponsor any product or service or vendor mentioned herein unless expressly stated.

EDITED BY: Mary Belongia

Copyright © 2016 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

 

​8/31/2016​

C.A.R. Newsline

Table of contents

»

June Home Price Gains Concentrated in South and West

   
   

»

Consumer Confidence Improved in August

»

Win a Ticket to Tech Tuesday or An EXPO Event

»

Additional stories

 

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U.S. Housing Market Holding Steady 

Freddie Mac released its Multi-Indicator Market Index (MiMi) showing that the national MiMi value stands at 85, largely unchanged from last month, indicating a housing market that's on the outer range of its historic benchmark level of housing activity, with a +0.08 percent improvement from May to June and a three-month improvement of +1.37 percent. On a year-over-year basis, the national MiMi value improved +5.76 percent. Since its all-time low in October 2010, the national MiMi has rebounded 42 percent, but remains significantly off from its high of 121.7.

Seventy-seven of the 100 metro areas have MiMi values within range, with Los Angeles (99.8); Salt Lake City (100.4); Honolulu (98.9); Portland, Ore. (98.2); and Provo, Utah (98.2); ranking in the top five with scores closest to their historical benchmark index levels of 100.
More info

Fast Facts

Calif. median home price: June 2016:

  • California: $519,440
  • Calif. highest median home price by region/county: San Francisco, $1,350,000
  • Calif. lowest median home price by region/county: Glenn, $205,560

Calif. Pending Home Sales Index
The Pending Home Sales Index (PHSI) increased 3.5 percent from 118.4 in July 2015 to 122.5 in July 2016

Calif. Traditional Housing Affordability Index: Second Quarter 2016: 31 percent

Mortgage rates: Week ending 8/25/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.43% fees/points: 0.6% 
  • 15-yr. fixed: 2.74% fees/points: 0.5%

June Home Price Gains Concentrated in South and West
The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 5.1 percent annual gain in June, unchanged from last month. The 10-City Composite posted a 4.3 percent annual increase, down from 4.4 percent the previous month. The 20-City Composite reported a year-over-year gain of 5.1 percent, down from 5.3 percent in May.


Before seasonal adjustment, the National Index posted a month-over-month gain of 1 percent while both the 10-City Composite and the 20-City Composite posted a 0.8 percent increase in June. After seasonal adjustment, the National Index recorded a 0.2 percent month-over-month increase, and both the 10-City Composite and 20-City Composite posted 0.1 percent month-over-month decreases. After seasonal adjustment, nine cities saw prices rise, two cities were unchanged, and nine cities experienced
negative monthly prices changes.
More info


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Consumer Confidence Improved in August
The Conference Board Consumer Confidence Index, which had decreased slightly in July, increased in August. The Index now stands at 101.1 (1985=100), compared to 96.7 in July. The Present Situation Index rose from 118.8 to 123, while the Expectations Index improved from 82 last month to 86.4.

Consumers’ appraisal of current conditions improved in August. Those stating business conditions are “good” increased from 27.3 percent to 30 percent, while those saying business conditions are “bad” remained virtually unchanged at 18.4 percent. Consumers’ assessment of the labor market was also more favorable. Those claiming jobs were more “plentiful” increased from 23 percent to 26 percent, however, those claiming jobs are “hard to get” also rose, from 22.1 percent to 23.4 percent.
More info


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Average Fixer-Upper Home Lists for 8 Percent Discount
While a fixer-upper home may have an appealing price tag, the discount might not cover basic renovation costs, according to a new Zillow Digs analysis. Fixer-upper homes list for just 8 percent less than market value, which for the median fixer-upper would save buyers only $11,000 for renovations.

Zillow Digs analyzed nearly 70,000 listings for fixer-uppers from around the country to see how their list prices compared to their estimated values. If renovation costs exceed the home's discount, then it may be more cost-effective to buy a similar home that doesn't require renovations. Fixer-uppers were identified based on listing description keywords that signaled the home needs work, like "TLC," "good bones," and "fixer-upper."

Of all the metros analyzed, fixer-uppers in Phoenix have the smallest cash discount ($1,000 less than market value) and in turn give buyers the least financial leeway for renovations. Fixer-uppers in Atlanta and Miami also list very close to market value, saving buyers minimal cash up front.

While no two fixer-uppers are alike, buyers are more likely to find large upfront cash savings on fixer-uppers in expensive markets, where just a small percentage discount could yield quite a bit of money to spend on renovations. For example, fixer-uppers in San Francisco are discounted only 10 percent, which is lower than other metros, but still gives buyers $54,000 in upfront savings for renovations on the median home. Other metros with high cash savings include San Jose ($38,000) and Seattle ($24,000).
More info


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New Streamlined Refinance Offering for High LTV Borrowers
The Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac, at FHFA's direction, will implement a new refinance offering aimed at borrowers with high loan-to-value (LTV) ratios.  The new refinance offering will provide much-needed liquidity for borrowers who are current on their mortgage but are unable to refinance through traditional programs because their LTV ratio exceeds the Enterprises' maximum limits.

To qualify for the new offering, borrowers: (1) must not have missed any mortgage payments in the previous six months; (2) must not have missed more than one payment in the previous 12 months; (3) must have a source of income; and (4) must receive a benefit from the refinance such as a reduction in their monthly mortgage payment.  Full details will be available in the coming months through the Enterprises, but the offering will make use of the lessons learned from the Home Affordable Refinance Program (HARP) and its streamlined approach to refinancing.

The new high LTV streamlined refinance offering is more targeted than HARP but as with HARP, eligible borrowers are not subject to a minimum credit score, there is no maximum debt-to-income ratio or maximum LTV, and an appraisal often will not be required.  However, unlike HARP, there are no eligibility cut-off dates connected with the new offering, and borrowers will be able to use it more than once to refinance their mortgage.  Borrowers with existing HARP loans are not eligible for the new offering unless they have refinanced out of HARP using one of the Enterprises traditional refinance products.
More info

 

 

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C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. C.A.R. does not in any way endorse or sponsor any product or service or vendor mentioned herein unless expressly stated.

EDITED BY: Mary Belongia

Copyright © 2016 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

 

​8/24/2016​

C.A.R. Newsline

Table of contents

»

Baby Boomers Gaining Optimism in Housing

»

California Pending Home Sales Post Fourth

   

»

Freddie Mac Announces Redesigned U.S. Residential Mortgage Loan Application

»

Buzzwords That Bump Up a Sales Price

»

Additional stories

 

 

Buzzwords That Bump Up a Sales Price

Certain words included on the MLS public remarks section about a listing can help bring about a higher sales price than ads that don’t have any comments, according to real estate data firm CoreLogic.

CoreLogic analyzed the public comments on 81,025 MLS-listed property sales between January 2015 and January 2016 in Los Angeles County. Researchers then grouped the comments into three categories: location, condition, and design. They found that keywords related to great locations, such as “overlook,” “step” (as in, steps to the beach), “hill,” and “park” sell for a higher final price than those that do not list such positive location attributes.

The study also found that in describing property condition words like “finish” and “best” tended to net higher sales prices. Also, in describing design, researchers found the following buzzwords: “slide,” “central” (central AC), “dual,” and “Spanish” (Spanish style) to result in higher sales prices.
More info

Will That Home Work as You Age?
Many older adults say they want to stay put in their homes as they age. But how many older adults will actually be able to do so is another question.

According to a recent AARP study, 71 percent of 50 to 64 year olds want to stay in their homes and their current communities. However, communities generally do not have the options that people need to age well in place.

Older adults find the following community amenities are most important for them to live near (1 mile or less):
Bus stop: 50%

  • Grocery store: 47%
  • Pharmacy/drug store: 42%
  • Park: 42%
  • Hospital: 29%
  • Church/religious: 29%
  • Train/subway: 23%
  • Big box store: 18%
  • Entertainment: 16%
  • Shopping mall: 13%

More info

Fast Facts

Calif. median home price: June 2016:

  • California: $519,440
  • Calif. highest median home price by region/county: San Francisco, $1,350,000
  • Calif. lowest median home price by region/county: Glenn, $205,560

Calif. Pending Home Sales Index
The Pending Home Sales Index (PHSI) increased 3.5 percent from 118.4 in July 2015 to 122.5 in July 2016

Calif. Traditional Housing Affordability Index: Second Quarter 2016: 31 percent

Mortgage rates: Week ending 8/18/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.43% fees/points: 0.5% 
  • 15-yr. fixed: 2.74% fees/points: 0.5%

Baby Boomers Gaining Optimism in Housing
Baby boomers have typically held the most pessimistic view on housing among all age groups, but their opinions are changing. Sixty percent of baby boomers now view the housing market favorably, a 6 percentage point increase from the spring, according to a Berkshire Hathaway HomeServices' Homeowner Sentiment Survey. Seventy-two percent of that group say low interest rates are the primary reason behind their increased optimism.

Among all home owners, 66 percent view the housing market favorably, a 5 percentage point jump from the spring and the highest level in more than a year.

Millennials remain the most optimistic generation when it comes to the housing market. Seventy-six percent of those ages 18 to 34 say they view housing favorably, up 17 percentage points from November 2015. Eighty-five percent say that owning a home is a crucial part of the American Dream.
More info

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California Pending Home Sales Post Fourth Straight Annual Increase in July
Led by the Southern California region, California statewide pending home sales continued to build momentum in July, posting an increase from both the previous month and year, C.A.R. said this week.

Statewide pending home sales rose in July on a seasonally adjusted annualized basis, with the Pending Home Sales Index (PHSI) increasing 3.5 percent from 118.4 in July 2015 to 122.5 in July 2016, based on signed contracts. Pending sales have been on a rising trend for the past couple of months, which should translate into an increase in closed transactions in the fall.

On a month-to-month basis, California pending home sales were up 3 percent from June’s index of 119.0.

At the regional level, Southern California pulled up the market with a year-over-year increase in pending home sales, while the San Francisco Bay Area reversed its gain last month. Pending sales in the Central Valley were essentially flat.
More info
 

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Freddie Mac Announces Redesigned U.S. Residential Mortgage Loan Application
Freddie Mac announced this week a redesigned standard application for borrowers to use when they apply for a single-family mortgage. The redesigned Uniform Residential Loan Application (URLA) was developed jointly with Fannie Mae under the direction of the Federal Housing Finance Agency (FHFA). This marks the first substantial revision to the URLA in more than 20 years.

In addition to a reorganized layout and simplified terminology, the new URLA includes data fields such as mobile phone number, email address, and military service.

Lenders may begin using the redesigned URLA on Jan. 1, 2018, for single-family loans submitted to Freddie Mac and Fannie Mae as well as mortgages that are federally insured by the Federal Housing Administration (FHA), the Veterans Administration (VA), or the U.S. Department of Agriculture's Rural Housing Service (RHS).
More info


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New Home Sales Rise in July
Sales of new single-family houses rose 31.3 percent in July to a seasonally adjusted annual rate of 654,000 compared with the previous year’s 498,000, according to the U.S. Census Bureau and the Dept. of Housing and Urban Development. On a month to month comparison, sales of new single-family houses rose 12.4 percent.
More info

 

 

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C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. C.A.R. does not in any way endorse or sponsor any product or service or vendor mentioned herein unless expressly stated.

EDITED BY: Mary Belongia

Copyright © 2016 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

 

​8/10/2016​

 

C.A.R. Newsline

Table of contents

»

Home Purchase Sentiment Index Surpasses Survey High

   

»

Strong Seasonal Home Prices Weaken Housing Affordability in Q2

»

Housing Markets Continue Gradual Climb Back to Normal

»

Completed Foreclosures Decrease in June

»

Additional stories

 

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Strong Seasonal Home Prices Weaken Housing Affordability in Q2
Lower interest rates failed to offset strong seasonal price increases, making it harder for Californians to purchase a home in the second quarter of 2016, C.A.R. reported today.

The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California in second-quarter 2016 fell to 31 percent from the 34 percent recorded in the first quarter of 2016 and was up from 30 percent in second-quarter 2015, according to C.A.R.’s Traditional Housing Affordability Index (HAI). This is the 13th 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 first quarter of 2012.

Home buyers needed to earn a minimum annual income of $101,217 to qualify for the purchase of a $516,220 statewide median-priced, existing single-family home in the second quarter of 2016.  The monthly payment, including taxes and insurance on a 30-year, fixed-rate loan, would be $2,530, assuming a 20 percent down payment and an effective composite interest rate of 3.85 percent.  The effective composite interest rate in first-quarter 2016 was 4.01 percent and 3.95 percent in the second quarter of 2015. 
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Completed Foreclosures Decrease in June
CoreLogic released its June 2016 National Foreclosure Report which shows the foreclosure inventory declined 25.9 percent and completed foreclosures declined 4.9 percent compared with June 2015. The number of completed foreclosures nationwide decreased year over year from 40,000 in June 2015 to 38,000 in June 2016, representing a decrease of 67.5 percent from the peak of 117,835 in September 2010.

The foreclosure inventory represents the number of homes at some stage of the foreclosure process and completed foreclosures reflect the total number of homes lost to foreclosure.

As of June 2016, the national foreclosure inventory included approximately 375,000, or 1 percent, of all homes with a mortgage compared with 507,000 homes, or 1.3 percent, in June 2015. The June 2016 foreclosure inventory rate is the lowest for any month since August 2007. 
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Realtor.com Adds Yelp Local Info
Realtor.com recently announced the launch of Yelp local amenity information and realtor.com neighborhood trend data to help buyers get to know the community surrounding a potential new home.

Users can now view grocery stores, coffee shops, restaurants, drug stores, gas stations, and insurance companies directly on the property listing map for all realtor.com for-sale homes. Map pins include the business's Yelp star rating to help potential buyers get a better understanding of the amenities in the area.   

Potential buyers can also now read up on the latest community statistics for more than 20,000 different cities on realtor.com Local. A deeper understanding of a neighborhood's median list prices, time on market and price per square foot can help consumers have more informed discussions with their agent and make educated purchase decisions.
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Fast Facts

Calif. median home price: June 2016:

  • California: $519,440
  • Calif. highest median home price by region/county: San Francisco, $1,350,000
  • Calif. lowest median home price by region/county: Glenn, $205,560

Calif. Pending Home Sales Index
The Pending Home Sales Index (PHSI) increased 3.2 percent from 123.4 in June 2015 to 127.3 in June 2016

Calif. Traditional Housing Affordability Index: Second Quarter 2016: 31 percent

Mortgage rates: Week ending 8/4/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.43% fees/points: 0.5% 
  • 15-yr. fixed: 2.74% fees/points: 0.5%

Home Purchase Sentiment Index Surpasses Survey High
Fannie Mae’s Home Purchase Sentiment Index(HPSI) increased 3.3 points to 86.5 in July, reaching a new all-time survey high and indicating a more positive outlook in the housing market-specific HPSI components.

Each of the six HPSI components increased in July. The largest increases were seen in the net share of consumers who expect home prices to go up over the next 12 months, which rose 8 percentage points after a drop in June, and the net share of consumers who expect mortgage interest rates to go down over the next 12 months, which rose 5 percentage points. The Household Income component also rebounded after dropping in June, rising 3 percentage points to 11 percent. Notably, the share of consumers who said they would buy if they were going to move increased to 67 percent, while the share of consumers who said they would rent moved down to 26 percent, equaling an all-time National Housing Survey low.
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Housing Markets Continue Gradual Climb Back to Normal
Markets in 146 of the approximately 340 metro areas nationwide returned to or exceeded their last normal levels of economic and housing activity in the second quarter of 2016, according to the latest NAHB/First American Leading Markets Index (LMI). This represents a year-over-year net gain of 66 markets.

The index’s nationwide score ticked up to .97, meaning that based on current permit, price and employment data, the nationwide average is running at 97 percent of normal economic and housing activity. Meanwhile, 91 percent of markets have shown an improvement year over year.
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Study Finds Owners Overestimate Home Values
Quicken Loans' National Home Price Perception Index found appraised values were an average of 1.69 percent lower than what homeowners expected in July. The gap between these two measures of home values narrowed since June when appraisals lagged behind expectations by 1.93 percent.

Home values continued to rise in July, according to the Quicken Loans Home Value Index (HVI), the only measure of home value changes based solely on appraisals. The national index reflected a 1.43 percent increase from June, and a year-over-year gain of 6.24 percent.
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Rising Sea Levels Threaten to Put Nearly 2 Million U.S. Homes Underwater
Nearly 2 million U.S. homes would be lost if the oceans rise by six feet as scientists expect by the year 2100, according to a new Zillow analysis. The endangered homes represent just under two percent of the national housing stock, and are worth a cumulative $882 billion.

New research published in the scientific journal Nature found that sea levels could rise six feet by the year 2100, mostly due to melting Antarctic ice sheets. This new estimate nearly doubles previous expectations for rising oceans.

Using data from the National Oceanic and Atmospheric Administration, Zillow identified which homes would be affected by the predicted six-foot rise in ocean levels.

More than half of all homes that would be lost are in Florida, and they account for nearly half of the lost housing value as well. In all, one in eight Florida homes would be lost. More than 9 percent of homes in Hawaii would be underwater; 81 percent of those are in the capital city of Honolulu. Thirty-six coastal cities would be entirely underwater, and nearly 300 cities would lose at least half their homes. In California, 42,353 homes are at risk of being underwater with a total value of $49.2 billion.
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C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. C.A.R. does not in any way endorse or sponsor any product or service or vendor mentioned herein unless expressly stated.

EDITED BY: Mary Belongia

Copyright © 2016 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

 

​8/3/2016​

 

C.A.R. Newsline

Table of contents

»

President Obama signs H.R. 3700

»

U.S. Treasury Expands All Cash Rule to California

»

CFPB Outlines Guiding Principles for Foreclosure Prevention

»

CFPB Proposes TRID Changes

»

CCRE Releases Inaugural Journal on Housing Affordability

»

Additional stories

 

According to a Redfin Survey of home sellers conducted this month, 52 percent think now is a good time to sell in their neighborhood (up from 34 percent last year) and 58 percent think sellers have more power than buyers (up from 44 percent last year). This is the second consecutive quarter in which the majority of sellers think now is a good time to sell and nearly the highest level of seller confidence we’ve recorded.

 

June was the fastest and most competitive housing market on record. Inventory has been down nationally and is downright barren in cities such as Seattle, Denver and Oakland. Nationally, there are just 2.8 months of housing supply, the lowest level Redfin has recorded since we began keeping track in 2009. Six months of inventory is considered to be balanced, with lower figures favoring sellers.

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CFPB Outlines Guiding Principles for Foreclosure Prevention

The Consumer Financial Protection Bureau (CFPB) has outlined consumer protection principles to guide mortgage servicers, investors, government housing agencies, and policymakers as they develop new foreclosure relief solutions. The Bureau’s action comes as the Department of Treasury’s Home Affordable Modification Program, a foreclosure relief program put in place in response to the financial crisis, is nearing its expiration date. The CFPB’s proposed principles are meant to inform the discussion of potential options to help prevent avoidable foreclosures.

The CFPB principles call for assistance to consumers facing foreclosure that is accessible, affordable, sustainable, and transparent. These principles span the spectrum of home-retention options such as forbearance, repayment plans and modifications, and home-disposition options such as short sales and deeds-in-lieu. 

In summary, the principles promote:

• Accessibility: Consumers should easily be able to obtain and use information about loss mitigation options, and how to apply for those options. 

• Affordability: Repayment plans and mortgage loan modifications should generally be designed to produce a payment and loan structure that is affordable for consumers. 

• Sustainability: Loss mitigation options used for home retention should be designed to provide affordability throughout the remaining or extended loan term. 

• Transparency: Consumers should get clear, concise information about the decisions servicers make. 
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CCRE Releases Inaugural Journal on Housing Affordability
Be the first to read incisive commentary on how to solve housing affordability in California in the inaugural issue of The Journal of Case Study Research™: A Publication of the Center for California Real Estate. The brand new journal is published by the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) Center for California Real Estate, an institute dedicated to advancing real estate knowledge. The importance of housing affordability to the industry and the state of California as a whole is reflected in the solitary theme assessed by the contributors of the first volume. The case studies collected by the journal present insightful commentary from key experts with a clear point of view, supported by research, data, and personal experience. The ideas range widely, but the common denominator is a solutions-based approach to ensure the state’s sizeable affordability problem is addressed from a variety of perspectives.
Read the Journal

Freddie Mac Reports Solid 2nd Quarter Earnings
Freddie Mac this week reported net income of $993 million for the second quarter of 2016, compared to a net loss of $354 million for the first quarter of 2016. The company also reported comprehensive income of $1.1 billion for the second quarter of 2016, compared to a comprehensive loss of $200 million for the first quarter of 2016.

The GSE reported both solid business and financial results this quarter, reflecting further improvement in its competitiveness and capabilities, highlighted by strong new guarantee business volumes. It further reduced taxpayer risk through both the efficient disposition of legacy assets and its credit risk transfer transactions, which achieved a major milestone in having now cumulatively transferred a significant portion of credit risk on over $650 billion of single-family and multi-family loans.

The company will have returned $99.1 billion to taxpayers following its third-quarter payment, $27.8 billion more than cumulative cash draws of $71.3 billion received from Treasury through June 30, 2016.
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Fast Facts

Calif. median home price: June 2016:

  • California: $519,440
  • Calif. highest median home price by region/county: San Francisco, $1,350,000
  • Calif. lowest median home price by region/county: Glenn, $205,560

Calif. Pending Home Sales Index
The Pending Home Sales Index (PHSI) increasied 3.2 percent from 123.4 in June 2015 to 127.3 in June 2016

Calif. Traditional Housing Affordability Index: First Quarter 2016: 34 percent

Mortgage rates: Week ending 7/28/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.48% fees/points: 0.5% 
  • 15-yr. fixed: 2.78% fees/points: 0.5%

President Obama signs H.R. 3700
Last week, President Obama signed H.R. 3700, the "Housing Opportunity Through Modernization Act. The legislation includes reforms to current Federal Housing Administration restrictions on condominium financing, among other provisions, and was long supported by both C.A.R. and NAR.

Changes include efforts to make FHA's recertification process "substantially less burdensome," while lowering FHA's current owner-occupancy requirement from 50 percent to 35 percent. The bill also requires FHA to replace existing policy on transfer fees with the less-restrictive model already in place at the Federal Housing Finance Agency. 

This legislation will help offer relief to well-qualified potential home buyers who have been facing tight housing inventories, rising home prices, and strict mortgage credit underwriting guidelines.

C.A.R. thanks the 19,000-plus California REALTORS® who responded to NAR's Call-for-Action and urged their senators to pass this legislation and offer relief to home buyers.
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U.S. Treasury Expands All Cash Buyer Rule to California
The Financial Crimes Enforcement Network (FinCEN) announced last week that it has expanded its Geographic Targeting Orders (GTO), temporarily requiring U.S. title insurance companies to identify the natural persons behind shell companies used to pay “all cash” for high-end residential real estate in six major metropolitan areas, including five in California.  Expanding the GTOs is a continued effort to monitor financial real estate transactions to combat money laundering and the financing of terrorism.

FinCEN remains concerned that all-cash purchases (i.e., those without bank financing) may be conducted by individuals attempting to hide their assets and identity by purchasing residential properties through limited liability companies or other opaque structures. FinCEN issued a similar requirement earlier this year covering transactions in Manhattan and Miami-Dade County, Fla. 

The additional areas in California now include Los Angeles, San Francisco, San Mateo, and Santa Clara, and San Diego counties. 
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CFPB Proposes TRID Changes
The Consumer Finance Protection Bureau announced a change to the TILA-RESPA Integrated Disclosure, or TRID, which clarifies the rules regarding sharing the mortgage “closing disclosure” form, or CD. 

The CD is delivered to homebuyers in advance of their closing and contains important financial information related to their purchase. Since the October 2015 implementation of TRID, REALTORS® have raised red flags over challenges in gaining access to the form. Many lenders chose to withhold this document from real estate agents since Know Before You Owe went into effect, despite a longstanding tradition of sharing similar information.

The CFPB said it understands that it is usual, accepted and appropriate for creditors and settlement agents to provide a closing disclosure to consumers, sellers and their real estate brokers or other agents.

Giving REALTORS® access to the CD would strengthen consumers' understanding of their mortgage and home purchase by helping agents continue to provide expert advice to their clients. “This is a significant victory that will help REALTORS® continue to provide the expert service their clients have come to expect,” said NAR President Tom Solomone.
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Homeownership Rate Hits 50-Year Low
The share of Americans who own their own homes dropped to the lowest rate since 1965 and well below its peak of 69.2 percent in June 2004, according to the U.S. Census Bureau.

The homeownership rate of 62.9 percent in second quarter 2016 was lower than the second quarter 2015 rate of 63.4 percent and lower than the 63.5 percent rate in the first quarter 2016, 

By race, the homeownership rate for the second quarter 2016 for non-Hispanic white households was the highest at 71.5 percent. The homeownership rate for Asian or Native Hawaiian and Pacific Islander households was 53.7 percent and 41.7 percent for blacks. 

The homeownership rate for black households was lower than the second quarter 2015 rate, while the rate for non-Hispanic white households was not statistically different from the second quarter 2015 rate. The rate for Asian or Native Hawaiian and Pacific Islander households cannot be compared to second quarter 2015, as data prior to 2016 are not tabulated. 
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Mortgage Applications Decrease in Weekly Survey
Mortgage applications decreased 3.5 percent from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending July 29, 2016.

The Market Composite Index, a measure of mortgage loan application volume, decreased 3.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 4 percent compared with the previous week. The Refinance Index decreased 4 percent from the previous week. The seasonally adjusted Purchase Index decreased 2 percent from one week earlier to the lowest level since February 2016 while the seasonally adjusted Government Purchase Index fell to the lowest level since November 2015. The unadjusted Purchase Index decreased 2 percent compared with the previous week and was 6 percent higher than the same week one year ago.
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C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. C.A.R. does not in any way endorse or sponsor any product or service or vendor mentioned herein unless expressly stated.

EDITED BY: Mary Belongia

Copyright © 2016 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

 

​7/27/2016​

 

C.A.R. Newsline

Table of contents

»

Home Price Increases Ease in May

»

New Shareable Digital Content

»

Housing Remains a Priority for Most Americans

»

Consumer Confidence Virtually Unchanged in July

»

CCRE Releases Inaugural Journal on Housing Affordability

»

Additional stories

 

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Housing Remains a Priority for Most Americans
An overwhelming four-out-of-five Americans believe that owning a home is a good investment, according to a recent poll commissioned by the National Association of Home Builders (NAHB) to gauge public sentiment on the value of homeownership and government programs that encourage homeownership and housing production

Among the key findings:

  • 82 percent rate “a home for you to live in” a good or excellent investment (the highest of six choices), far ahead of the second option, retirement accounts, at 67 percent.
  • 81 percent of 18-29-year-olds want to buy a home.
  • 72 percent support the government providing tax incentives to encourage homeownership.
  • 46 percent say now is a good time to buy a home, twice the 23 percent who say it is not.
  • 36 percent would like to buy a home in the next three years.

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CCRE Releases Inaugural Journal on Housing Affordability
Be the first to read incisive commentary on how to solve housing affordability in California in the inaugural issue of The Journal of Case Study Research™: A Publication of the Center for California Real Estate. The brand new journal is published by the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) Center for California Real Estate, an institute dedicated to advancing real estate knowledge. The importance of housing affordability to the industry and the state of California as a whole is reflected in the solitary theme assessed by the contributors of the first volume. The case studies collected by the journal present insightful commentary from key experts with a clear point of view, supported by research, data, and personal experience. The ideas range widely, but the common denominator is a solutions-based approach to ensure the state’s sizeable affordability problem is addressed from a variety of perspectives.
Read the Journal

Millennials Concerned About Their Level of Debt
FICO’s latest consumer finance trend research has revealed that 37 percent of Millennials are concerned about their level of debt, while 33 percent of them are interested in getting assistance to help manage their debts.

After residential mortgages, the biggest debt burden for this age group is student loans, with 32 percent of Millennials saying they owe $20,000 or more. A close second is auto loans, with 45 percent of Millennials reporting they owe $7,000 or more.

The FICO survey revealed car ownership was seen as a necessity, with 91 percent of Millennials preferring the use of one for daily transport. A further 19 percent said they would buy a car using a credit card.
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New Single-family Home Sales Up in June
Sales of new single-family houses were at a seasonally adjusted annual rate of 592,000 in June 2016, according to estimates released jointly by the U.S. Department of Housing and Urban Development (HUD) and the U.S. Census Bureau. This is 3.5 percent above the revised May rate of 572,000 and is 25.4 percent above the June 2015 estimate of 472,000.
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Fast Facts

Calif. median home price: June 2016:

  • California: $519,440
  • Calif. highest median home price by region/county: San Francisco, $1,350,000
  • Calif. lowest median home price by region/county: Glenn, $205,560

Calif. Pending Home Sales Index
The Pending Home Sales Index (PHSI) increasied 3.2 percent from 123.4 in June 2015 to 127.3 in June 2016

Calif. Traditional Housing Affordability Index: First Quarter 2016: 34 percent

Mortgage rates: Week ending 7/21/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.45% fees/points: 0.5% 
  • 15-yr. fixed: 2.75% fees/points: 0.5%

Home Price Increases Ease in May
Data released this week for the S&P CoreLogic Case-Shiller Indices show that home prices continued their rise nationwide in May 2016.

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, which covers nine U.S. divisions, reported a 5 percent annual gain in May, the same as the month prior. The 10-City Composite posted a 4.4 percent annual increase, down from 4.7 percent the previous month. The 20-City Composite reported a year-over-year gain of 5.2 percent, down from 5.4 percent in April.
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Consumer Confidence Virtually Unchanged in July

The Conference Board Consumer Confidence Index, which had increased in June, was relatively unchanged in July. The Index now stands at 97.3 (1985=100), compared to 97.4 in June. The Present Situation Index increased from 116.6 to 118.3, while the Expectations Index edged down to 83.3 from 84.6 in June.

Consumers’ assessment of present-day conditions improved slightly in July. Those stating business conditions are “good” increased from 26.8 percent to 28.1 percent, however those saying business conditions are “bad” also rose, from 18.3 percent to 19 percent. Consumers’ appraisal of the labor market was little changed from last month. Those claiming jobs are “plentiful” declined marginally from 23.2 percent to 23.0 percent, however those claiming jobs are “hard to get” also decreased, from 23.7 percent to 22.3 percent.
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California Pending Home Sales Up in June
Led by the San Francisco Bay Area, California pending home sales continued their upward momentum in June to post three straight months of annual increases, C.A.R. said this week.

Statewide pending home sales rose in June on an annual basis, with the Pending Home Sales Index increasing 3.2 percent from 123.4 in June 2015 to 127.3 in June 2016, based on signed contracts. With pending sales on a rising trend in the past couple of months, June’s increase should portend for higher closed transactions in July and August.

California pending home sales declined 7 percent on a monthly basis compared to May, primarily due to seasonal factors. When adjusting pending sales for typical seasonal patterns, pending sales were down 3.2 percent from May and up 3 percent from June 2015.
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Fannie Mae Enhances HomeReady Mortgage
Fannie Mae announced enhancements to its HomeReady mortgage program. HomeReady is Fannie Mae’s affordable mortgage option designed to meet the diverse needs of today’s borrowers. HomeReady allows borrowers to provide as little as 3 percent down, and was the first affordable lending option to offer creditworthy borrowers the ability to qualify with income from non-borrower household members.

New enhancements offer:

  • Simplified income eligibility – Fannie Mae raised income limits to 100 percent of an area’s median income in all areas, except low income market tracts that have no limit, making it easier for lenders to determine eligibility for HomeReady and helping more homebuyers take advantage of this affordable mortgage option.
  • More support for sustainable homeownership – In addition to the popular online course offered by Fannie Mae’s partner Framework, Fannie Mae will accept one-on-one pre-purchase advising from HUD-approved providers to meet HomeReady’s homeownership education requirement. In the coming months, Fannie Mae will offer lenders a $500 credit to encourage borrowers to take advantage of this new personalized support option. 
  • Market-driven features – More than 700 Fannie Mae lenders have already adopted the HomeReady mortgage, helping thousands of families become homeowners. HomeReady features continue to evolve to incorporate feedback from lenders, making it a simpler, more effective product for the affordable and underserved market..

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C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. C.A.R. does not in any way endorse or sponsor any product or service or vendor mentioned herein unless expressly stated.

EDITED BY: Mary Belongia

Copyright © 2016 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

 

​7/20/2016​

 

C.A.R. Newsline

Table of contents

»

Home Purchase Sentiment Index Decreases in June

»

Housing Starts Rise in June

»

Condo Legislation Passes U.S. Senate

»

Property Managers Concerned About Identity Theft, Online Fraud

»

California Home Sales Up Double-digits Monthly for First Time Since 2011

»

Additional stories

 

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Condo Legislation Passes U.S. Senate
The U.S. Senate has passed H.R. 3700, the "Housing Opportunity Through Modernization Act," by unanimous consent. This legislation includes reforms to current Federal Housing Administration restrictions on condominium financing, among other provisions, and is long supported by both C.A.R. and NAR.

Changes include efforts to make FHA's recertification process "substantially less burdensome," while lowering FHA's current owner-occupancy requirement from 50 percent to 35 percent. The bill also requires FHA to replace existing policy on transfer fees with the less-restrictive model already in place at the Federal Housing Finance Agency.

C.A.R. would like to thank the 19,000-plus California REALTORS® who responded to NAR's Call-for-Action and urged their senators to pass this legislation and offer relief to home buyers.

What makes REALTORS® so strong politically is the number of constituents we have in every congressional district. Even if your business model is not based on condominium or Rural Housing Service transactions, all REALTORS® need to band together to support homebuyers to help ensure future transactions, and that is what California REALTORS® did with H.R. 3700.
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California Home Sales Up Double-digits Monthly for First Time Since 2011
After a couple months of lackluster growth in transaction volume, California existing home sales rose to their highest level in nearly four years in June, as sales surpassed the 400,000 mark for the fourth consecutive month, C.A.R. said earlier this week.
  
Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 450,960 units in June, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.

The June figure was up 10 percent from the revised 409,840 level in May and up 2.2 percent compared with home sales in June 2015 of 441,450 (revised). The month-to-month increase was the first double-digit monthly gain since January 2011 when sales of existing homes rose 11.3 percent from December 2010.

Rising demand combined with tight supply kept upward pressure on prices in June. The median price of an existing, single-family detached California home increased 5.5 percent in June to $519,440 from $492,320 in June 2015. June’s median price was 0.1 percent lower than the revised $519,750 recorded in May 2016.

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Last Chance for C.A.R. Committee Selection
Each year, C.A.R. seeks the best and brightest from within our industry to serve as members of a variety of C.A.R. Committees. The 2017 C.A.R. Leadership Team wants to know which committees you would like to serve on. You may recommend yourself for up to five committee positions.

July 22 - deadline to submit all General Membership for Standing Committees
July 22 - deadline to submit Region Representatives/Liaison assignments (Note: Only 2017 Regional Chairs make these recommendations).
Learn more about the 2017 C.A.R. Committee Selection Process and to make recommendations.

If you have any questions regarding this process you may contact C.A.R. Staff at governance@car.org

Fast Facts

Calif. median home price: June 2016:

  • California: $519,440
  • Calif. highest median home price by region/county: San Francisco, $1,350,000
  • Calif. lowest median home price by region/county: Glenn, $205,560

Calif. Pending Home Sales Index
Statewide pending home sales rose in May on an annual basis, with the Pending Home Sales Index increasing 3.8 percent from 131.4 in May 2015 to 136.5 in May 2016

Calif. Traditional Housing Affordability Index: First Quarter 2016: 34 percent

Mortgage rates: Week ending 7/14/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.42% fees/points: 0.5% 
  • 15-yr. fixed: 2.72% fees/points: 0.5%

C.A.R. Disappointed in HUD Decision to Insure FHA Mortgages with PACE Loans
Yesterday, HUD announced a new policy that the FHA will begin insuring mortgages on certain properties with Property Assessed Clean Energy (PACE) loans. C.A.R. issued a statement expressing disappointment in HUD’s decision.

In the statement, C.A.R. President Pat “Ziggy” Zicarelli said, “Although C.A.R. supports voluntary consumer-friendly energy improvement programs for homeowners, C.A.R. believes that HUD was ill advised to approve placing PACE loans in a senior position to FHA first mortgages. Doing so places FHA homebuyers and taxpayers at risk and does homeowners a disservice by approving a loan product without consumer protections and which is aggressively sold to homeowners who rely on FHA financing for safe and affordable mortgages.

“This loan product has no minimum disclosures, no underwriting of the borrower, no proof that the borrower has the ability to repay, no three-day right to rescind, no marketing limitations, no interest rate or fee caps, no kickback prohibitions; nothing,” added Zicarelli. “If the housing market of the last decade has taught us anything, it’s that first-time homeowners, and low- and moderate-income homeowners are the most vulnerable and will be taken advantage of. Sadly, it is they who the FHA is inviting unregulated PACE lenders to target.”
Read the statement


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Housing Starts Rise in June
Nationwide housing starts rose 4.8 percent in June to a seasonally adjusted annual rate of 1.19 million units, according to newly released data from the U.S. Department of Housing and Urban Development and the Commerce Department.

Single-family housing starts rose 4.4 percent to a seasonally adjusted annual rate of 778,000 units in June while multifamily production ticked up 5.4 percent to 411,000 units.
More info 


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Property Managers Concerned About Identity Theft, Online Fraud
A new survey from TransUnion revealed how the growth of online rental applications has coincided with concerns of property managers about identity theft and online fraud.

TransUnion’s survey found that more than half (56.5 percent) of property managers have experienced an increase in online applications in the past year while nearly seven in 10 (67.1 percent) respondents reported concerns about identity theft and online fraud

According to the survey, nearly four in 10 (36.5 percent) property managers are not confident about the accuracy of residents’ application information.

Other key survey findings include:

  • In the past year, eight in 10 (80.6 percent) property managers have increased rent on their rental units. Two in five (40 percent) property managers increase rents more than once per year, while half (51.9 percent) of the property managers increase rent once per year.
  • Property managers ranked income and employment information as the most important technique for screening prospective residents, followed by criminal background checks, rental and eviction history and credit history.


More info


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Percentage of Subprime Mortgage Loan Origination Volume Increases
Equifax Inc. released its May 2016 National Consumer Credit Trends Report, which shows among other findings, that total mortgage volume increased in Q1 2016, compared to opening quarters in previous years.

Total new accounts and year-over-year increases for the first quarter of 2016 include:

  • Home equity installment loans: 182,400, an increase of 23.5 percent and an eight-year high for an opening quarter;
  • First mortgages: 1.86 million, an increase of 10.3 percent; and
  • Home equity lines of credit (HELOC): 314,400, an increase of 10.2 percent.

Similarly, the latest data shows that lending to borrowers with subprime credit scores (consumers with an Equifax Risk Score of 620 or below) - as a share of total lending - has remained consistent for the third consecutive year. New first mortgage accounts to subprime borrowers during Q1 of 2015-2016 have increased on a consistent basis alongside that of prime lending, with approximately 95 percent accounting for prime loans and 5 percent accounting for subprime loans.
More info


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Builder Confidence Holds Firm in July
Builder confidence in the market for newly built, single-family homes fell one point to 59 in July from a June reading of 60 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).

The NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair,” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average,” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

All three HMI components edged lower in July. The components measuring current sales expectations and buyer traffic each fell one point to 63 and 45, respectively. The index measuring sales expectations in the next six months posted a three-point decline to 66.
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C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. C.A.R. does not in any way endorse or sponsor any product or service or vendor mentioned herein unless expressly stated.

EDITED BY: Mary Belongia

Copyright © 2016 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

 

​7/13/2016​

 

C.A.R. Newsline

Table of contents

»

Home Purchase Sentiment Index Decreases in June

   

»

C.A.R. Sues PDFfiller.com for Unlawfully Selling C.A.R. Forms

»

Appraisers View Home Values Lower than Home Owners Estimate

»

Have you Registered for the “Who’s Your REALTOR®?” EXPO?

»

Additional stories

 

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C.A.R. Sues PDFfiller.com for Unlawfully Selling C.A.R. Forms
C.A.R. has sued PDFfiller.com for approximately $136 million in statutory damages arising from PDFfiller.com's unauthorized use and publication and sale of C.A.R.’s suite of copyrighted real estate forms. PDFfiller.com has advertised its platform as one that may be used to create and obtain blank and fillable C.A.R. forms without authorization or permission from C.A.R.  Members of the general public may purchase subscriptions to PDFfiller.com in order to gain access to the C.A.R. forms and PDFfiller.com’s various editing functions.  The lawsuit charges misappropriation and copying of dozens of the association’s most popular and valuable forms, including selling access to and advertising the ability to create reusable and fillable forms.  According to PDFfiller.com’s own site, PDFfiller has sold and granted access to the C.A.R. forms to hundreds of thousands of users, in violation of C.A.R.’s copyrights and trademarks.

The complaint alleges willful infringement of both C.A.R.’s copyrighted forms and its registered trademarks.   The suit further alleges that PDFfiller.com has purchased search terms intended to lead the public to its site when they search for C.A.R. documents, and then sells access to its website.  PDFfiller.com has charged users for access to counterfeit C.A.R. documents bearing C.A.R.'s registered tradename and logo which they have no right to do.   

C.A.R.’s lawsuit seeks a permanent injunction to prohibit future infringing activity and also over $136 million in monetary compensation, including statutory penalties, and attorneys’ fees.   
More info

Have you Registered for the “Who’s Your REALTOR®?” EXPO?
Join us in Long Beach this fall at the WHO’S YOUR REALTOR®? 2016 EXPO! From Sept. 27 to 29, experience all that EXPO has to offer and take advantage of your FREE C.A.R. member benefit. Attend more than 30 free educational sessions and learn new strategies you can immediately implement into your business. Build connections, develop relationships, and network with more than 11,000 real estate professionals - all under one roof. Meet new contacts in the classroom during interactive Speed Networking, Mentor/Mentee Meetups, and Tech Talks, on the EXPO exhibit floor while talking to more than 200 exhibitors with solutions for your business needs, and during fun EXPO events. We hope to see you there!

Let’s get people asking, “Who's Your REALTOR®?”

Register now at expo.car.org.

Become an Innovators Workshop Advisor
C.A.R. recently launched the Innovator’s Workshop – a “Shark Tank” for real estate, of sorts. Through the workshop, innovators make their best pitch for an idea or tool that can help elevate the business of real estate professionals.

To help review ideas, C.A.R. is assembling a team of industry experts to provide their feedback and recommendation on whether C.A.R. should pursue the idea. The Innovators Workshop Advisory (IWAG) will review submissions electronically, and may be asked to participate in follow up conference calls and/or web conferences to review submissions.

Sub-groups of the IWAG will be identified by C.A.R. staff and asked to review ideas submitted to the Innovators Workshop as they align with their particulars skills and expertise. The volume of idea submissions is unknown, but you can determine how often you would like to be contacted to review submissions.

And if you are interested or know innovators in our industry that would be a part of our Innovator’s Workshop Advisory Group, apply here.

Homes Within Walking Distance of Outdoor Music Venues Command Higher Premium
An analysis by Realtor.com and Vivid Seats found that homes within a one-mile radius of outdoor concert venues tend to command at least a 9-percent premium compared with the surround ZIP.

The study examined home prices within a walkable distance – one mile – of 68 outdoor concert venues with the home prices in the surrounding ZIP code. According to the analysis, 20 venues stood out from the pack showing at least a 9-percent premium.

The location where it pays the most to be walkable to the venue is Capital City Amphitheater in Tallahassee, where the median homes within walking distance are 78 percent more expensive, at $177,500, than the surrounding ZIP code, 32301. Homes located within a mile of OKC Zoo Amphitheatre in Oklahoma City – ranked second on the list – are 68 percent more expensive than the surrounding ZIP code of 73111 at $49,500. Homes within one mile of the Greek Theatre in Los Angeles, ranked third, are 63 percent higher at $2.1 million than the surrounding ZIP code, 90027.
More info

Fast Facts

Calif. median home price: May 2016:

  • California: $518,760
  • Calif. highest median home price by region/county: San Francisco, $1,409,370
  • Calif. lowest median home price by region/county: Siskiyou, $174,000

Calif. Pending Home Sales Index
Statewide pending home sales rose in May on an annual basis, with the Pending Home Sales Index increasing 3.8 percent from 131.4 in May 2015 to 136.5 in May 2016

Calif. Traditional Housing Affordability Index: First Quarter 2016: 34 percent

Mortgage rates: Week ending 7/7/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.41% fees/points: 0.5% 
  • 15-yr. fixed: 2.74% fees/points: 0.4%

Home Purchase Sentiment Index Decreases in June
Fannie Mae’s Home Purchase Sentiment Index (HPSI) decreased 2.1 points to 83.2 in June, down from May’s all-time survey high, as more consumers report mixed views toward housing and income growth. Among those surveyed, the share who said now is a good time to sell a home increased 5 percentage points on net to a survey-high of 18 percent, and those saying now is a good time to buy a home rose 3 percentage points on net to 32 percent. The share of consumers who expect home prices to go up over the next 12 months dropped 9 percentage points on net. In addition, those reporting that their household income is significantly higher than it was 12 months ago dropped 10 percentage points on net in June, and the net share of consumers who are not concerned about losing their job fell 4 percentage points. Fewer consumers also reported a positive outlook on the state of the economy – those who think the economy is on the wrong track ticked up to 59 percent in June.
More info


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Wait Times Now Available on C.A.R. Legal Hotline App
C.A.R. recently released an update to the C.A.R. Legal Hotline App that now shows the estimated wait time of the two hotlines –one for brokers and one for agents. The hotlines have three possible states available, with a range of wait times to indicate how busy the lines are:

  • 0-15 minutes – green,
  • 15-30 minutes – yellow, 
  • 30+ minutes – red

Because phone calls can vary greatly in length, the wait time range is C.A.R.’s best estimate for the current call volume. The wait time status is refreshed every 5 minutes and will update in the app automatically.

C.A.R. also added the legal hotline form (the third item on the Contact Us list) to submit a question online as an alternative should the hotline be closed or experience long wait times.
 
Update the app today or download it from the Apple App Store or Google Play store.

 

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Appraisers View Home Values Lower than Home Owners Estimate
Quicken Loans recently announced home values assigned by appraisers were 1.93 percent lower than what homeowners estimated in June, according to the company’s national Home Price Perception Index (HPPI). The difference between value perceptions from appraisers and owners has slightly widened since May, when appraised values were 1.89 percent lower than expected.

Home valuations across the country rose in June, as reported by the Quicken Loans Home Value Index (HVI). The average home appraisal increased 0.84 percent since May and enjoyed a 4.47 percent boost since June 2015.
More info


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Student Debt Causing Chasm about Buying between Homeowners, Renters
Despite lackluster economic growth and stark home-price appreciation in several parts of the country in recent months, roughly three-quarters of surveyed households still believe now is a good time to buy a home, but there's a considerable gap in morale between homeowners and renters, according to the latest installment of the NATIONAL ASSOCIATION OF REALTORS®’ Housing Opportunities and Market Experience (HOME) survey. The survey also found that roughly half of young adults with student debt are uncomfortable about taking on a mortgage.

Through the first half of the year, NAR's survey found that the share of homeowners and renters who believe now is a good time to buy a home is mostly holding steady, with 80 percent of homeowners (82 percent in March) and 62 percent of renters (unchanged from last quarter) saying it's a good time to buy. However, the share of renters who think so is down from 68 percent in December 2015, and those under 35 were the least confident that now is a good time to buy.

This quarter's HOME survey also revealed that carrying student debt is causing many to be uneasy about taking on additional debt. According to the survey, roughly two-thirds of non-homeowners and half of respondents under 35 with student debt said they aren't comfortable also having a mortgage. Furthermore, of those with student debt, non-homeowners and younger adults were less likely to believe they'd be able to qualify for a mortgage if they applied.
More info
 

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CoreLogic Reports 38,000 Completed Foreclosures in May
CoreLogic released its May 2016 National Foreclosure Report which shows that foreclosure inventory declined 24.5 percent and completed foreclosures declined 6.9 percent compared with May 2015. The number of completed foreclosures nationwide decreased year over year from 41,000 in May 2015 to 38,000 in May 2016, representing a decrease of 67.9 percent from the peak of 117,813 in September 2010.

The foreclosure inventory represents the number of homes at some stage of the foreclosure process and completed foreclosures reflect the total number of homes lost to foreclosure. Since the financial crisis began in September 2008, there have been approximately 6.3 million completed foreclosures nationally, and since homeownership rates peaked in the second quarter of 2004, there have been approximately 8.3 million homes lost to foreclosure.

As of May 2016, the national foreclosure inventory included approximately 390,000, or 1.0 percent, of all homes with a mortgage compared with 517,000 homes, or 1.3 percent, in May 2015. The May 2016 foreclosure inventory rate is the lowest for any month since October 2007. 
More info

 

Since the Bust, Foreclosed Homes Have Boomed
Homes that were foreclosed during the housing crisis have gained almost twice as much value as other homes, according to a new analysis by Zillow. But the original owners of those homes have not benefited from that recovery.

Since low-end homes were much more likely to be foreclosed, the analysis shows how the housing crisis worsened the gap between rich and poor in the U.S.

During the run-up to the housing bubble, many low-income earners bought homes, and the homeownership rate rose from about 65 percent in the mid-1990s to almost 70 percent in 2006. When home values crashed in 2007, millions of homeowners had to walk away – abandoning their initial investment and missing the opportunity to gain equity as home values recovered.
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C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. C.A.R. does not in any way endorse or sponsor any product or service or vendor mentioned herein unless expressly stated.

EDITED BY: Mary Belongia

Copyright © 2016 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

 

​7/6/2016​

 

C.A.R. Newsline

Table of contents

»

Home Prices Up in May

»

C.A.R. Innovator’s Workshop

   

»

International Home Sales Dollar Volume Retracts in U.S.

»

BRE Issues Alert for Broker-Owned Escrows

»

Additional stories

 

 

BRE Issues Alert for Broker-Owned Escrows
The BRE has issued an alert to brokers who conduct broker-owned escrows that they must file an Escrow Activity Report if they meet the threshold level of escrow activities.

Pursuant to Business and Professions (B&P) Code §10141.6, brokers who engage in escrow activities as follows are required to file a report with the Bureau within 60 days following the completion of the calendar year:

  • Five or more transactions in a calendar year under the broker-owned escrow exemption, or
  • Escrow activities pursuant to that exemption equal, or exceed one million dollars ($1,000,000) in a calendar year

Note that the $1 million threshold refers to the activity level and not the broker’s income from the activity.

The BRE notes that the number of brokers reporting has declined since 2013. Based on this, and also audits and complaints, the BRE believes that hundreds of brokers who are required to report have failed to do so. They state that they will conduct audits, and they are threatening fines and disciplinary action.

To comply, an “Escrow Activity Report” must be submitted online to www.bre.ca.gov by the broker.  
More info

The Brexit Impact is Real: Refis Jump to 18-month High
Brexit’s impact on mortgage applications is in and looks like borrowers cashed in on the ultra-low interest rates.

Last week’s mortgage application news underwhelmed in the immediate aftermath of Brexit, with applications posting a drop for the week. It seemed like Brexit did nothing to spur people into homeownership, that’s until this week’s news came out.

Mortgage applications surged 14.2 percent from one week earlier, significantly driven by refinance activity, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending July 1.

The Refinance Index soared 21 percent from the previous week to the highest level since January 2015, while the Purchase Index only increased 4 percent from one week earlier. Up until this point, the refinance index kept hovering around 2 percent to 7 percent increases and decreases each week.

Even more, the refinance share of mortgage activity increased to 61.6 percent of total applications, the highest level since February 2016. This is drastically up from 58.1 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 5.6 percent of total applications.
More info

Fast Facts

Calif. median home price: May 2016:

  • California: $518,760
  • Calif. highest median home price by region/county: San Francisco, $1,409,370
  • Calif. lowest median home price by region/county: Siskiyou, $174,000

Calif. Pending Home Sales Index
Statewide pending home sales rose in May on an annual basis, with the Pending Home Sales Index increasing 3.8 percent from 131.4 in May 2015 to 136.5 in May 2016

Calif. Traditional Housing Affordability Index: First Quarter 2016: 34 percent

Mortgage rates: Week ending 6/30/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.48% fees/points: 0.5% 
  • 15-yr. fixed: 2.78% fees/points: 0.4%

Home Prices Up 5.9 Percent Year Over Year in May
CoreLogic released its CoreLogic Home Price Index (HPI) and HPI Forecast data for May 2016 which shows home prices are up both year over year and month over month.

Home prices nationwide, including distressed sales, increased 5.9 percent year over year in May 2016 compared with May 2015 and increased 1.3 percent month over month in May 2016 compared with April 2016, according to the CoreLogic HPI.

The CoreLogic HPI Forecast indicates that home prices will increase 5.3 percent on a year-over-year basis from May 2016 to May 2017, and on a month-over-month basis home prices are expected to increase 0.8 percent from May 2016 to June 2016. 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.
More info


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C.A.R. Innovator’s Workshop
C.A.R. recently launched the Innovator’s Workshop – a “Shark Tank” for real estate, of sorts. Innovators are welcome to make their best pitch for an idea or tool that can help elevate the business of real estate professionals. Individuals or company submissions that are selected will gain access to assets and resources from C.A.R. to help turn the vision into reality. Similar to the premise of the popular TV show “Shark Tank,” C.A.R. will offer capital, expertise, and support staff  -- whatever is deemed necessary – in readying the idea for the market. Applications for the program are open to REALTORS®, brokers, real estate industry gurus, engineers, software developers, and entrepreneurs.
More info

  


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International Home Sales Dollar Volume Retracts in U.S.
Waning economic growth in many countries and higher home prices further enhanced by a strengthening U.S. dollar resulted in a slight decline in international sales dollar volume of U.S. property over the past year and a significant retreat in buying from non-resident foreigners.

This is according to an annual survey of residential purchases from international buyers released by the NATIONAL ASSOCIATION OF REALTORS®. The survey also amazingly revealed that the dollar volume of sales from Chinese buyers exceeded the total dollar sales figure of the next top four ranked countries combined.

NAR’s 2016 Profile of International Activity in U.S. Residential Real Estate, covering U.S. residential real estate sales to international clients between April 2015 and March 2016, found that foreign buyers purchased $102.6 billion of residential property, a 1.3 percent decline from the $103.9 billion of property purchased in last year’s survey. Overall, a total of 214,885 U.S. residential properties were bought by foreign buyers (up 2.8 percent), and properties were typically valued higher ($277,380) compared to the median price of all U.S. existing home sales ($223,058).
More info


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Millennials Most Likely to Live Alone in Richmond and Pittsburgh
More millennials live alone in Richmond, Va. than in any other major U.S. metro, according to a recent Zillow analysis. In Richmond, 15 percent of millennials live alone, followed by 14 percent in Pittsburgh and Buffalo, N.Y.

Across the U.S., almost 9 percent of millennials live alone, a number that's been declining since 2005, likely due to unaffordable rents and rising home prices. Consequently, millennials choose to live with their parents or find roommates.

The percentage of 23-34 year olds living with family increased 46 percent between 2000 and 2013, according to a recent Zillow analysis. Similarly, 21 percent of millennials across the U.S. are still living at home with their moms, proving that living with friends or family may be one of the ways to afford housing in some of the nation's hottest markets.
More info
 


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Women Are the Primary Borrower on Millennial Mortgages
Within the Millennial generation, women were listed as the primary borrower on more than one-third of closed loans, according to Ellie Mae’s Millennial Tracker.

Out of those 32 percent of closed loans where women were the primary borrower, more than 60 percent are single, and only 38 percent are married, according to the tool. On the other hand, of the loans where men are the primary borrower, just 41 percent are single while 58 percent are married.

Highlights include:

  • More Millennials tend toward FHA loans, which make up 37 percent of their closed loans. In the general population, FHA loans make up about 23 percent of total closed loans.
  • The average day for Millennials to close got just a little slower, from 43 days in April to 44 days in May.
  • The average FICO score among Millennials who closed loans is up from 721 in April to 722. The average FICO score for men was slightly higher than the average score for women at 724 versus 723.
  • The average age for women who closed on a loan was 29, while men came in slightly higher at 29.2.

More info

 

 

 

 

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C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. C.A.R. does not in any way endorse or sponsor any product or service or vendor mentioned herein unless expressly stated.

EDITED BY: Mary Belongia, maryb@car.org

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​6/29/2016​

 

C.A.R. Newsline

Table of contents

»

Nearly All Top Housing Metros Improve Year Over Year

»

Consumer Confidence Improves in June

»

California Pending Home Sales Hold Pace in May

»

Baby Boomers Poised to Compete for Affordable Rental Housing

»

Nearly One-Fifth of Housing Markets Less Affordable Than Historically Normal Levels

»

Additional stories

 

California Pending Home Sales Hold Pace in May
Building on April’s gain, California pending home sales continued to rebound on a year-to-year basis, as listings increased, C.A.R. recently announced.

Statewide pending home sales rose in May on an annual basis, with the Pending Home Sales Index increasing 3.8 percent from 131.4 in May 2015 to 136.5 in May 2016, based on signed contracts. May’s increase comes as welcome news since closed transactions declined in May despite low interest rates and high housing demand.

California pending home sales declined 3.6 percent on a monthly basis compared to April, which was almost entirely due to seasonal factors. When adjusting pending sales for typical seasonal patterns, pending sales actually edged up 0.1 percent from April and 3.1 percent from May 2015.
More info 

Nearly One-Fifth of Housing Markets Less Affordable Than Historically Normal Levels
RealtyTrac released its Q2 2016 Home Affordability Index, which shows that 18 percent of U.S. county housing markets were less affordable than their historically normal levels in Q2 2016, up from 5 percent of markets in the previous quarter but down from 20 percent of markets exceeding historically normal home affordability levels a year ago.

The report analyzed median home prices derived from publicly recorded sales deed data collected by RealtyTrac and average wage data from the U.S. Bureau of Labor Statistics in 417 U.S. counties with a combined population of nearly 210 million. The affordability index was based on the percentage of average wages needed to make monthly house payments on a median-priced home with a 30-year fixed rate and a 3 percent down payment — including property taxes and insurance (see full methodology below).

Out of the 417 counties analyzed in the report, 74 counties (18 percent) had an affordability index below 100 in the second quarter of 2016, meaning buying a median-priced home was less affordable than the historically normal level for that county going back to the first quarter of 2005. That was up from 22 counties (5 percent) exceeding historically normal affordability levels in Q1 2016 but down from 82 counties (20 percent) exceeding historically normal affordability levels in Q2 2015.
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Study Suggests that Homebuyer Education Could be a Cornerstone of Successfully Expanding Homeownership Opportunity
HUD recently published early findings from a rigorous, large-scale, random assignment study on the benefits that housing education and counseling provides to first-time homebuyers.  Early results from The First-Time Homebuyer Education and Counseling Demonstration are encouraging and suggest homebuyer education and counseling may lead to favorable results for first-time homebuyers in terms of mortgage literacy and preparedness, homebuyer outcomes, and loan performance.

Each family was randomly assigned to one of three treatment groups: remote (online education and telephone-based counseling), in-person (group workshops and individual counseling) and a control group that was not offered any services. HUD found that 65 percent of early participants who were offered remote homebuyer education and counseling initiated services versus just 25 percent of those who were offered in-person education and counseling.

The preliminary impacts of the study include:

  • Improved mortgage literacy. Participants in a treatment group performed better a four-question mortgage literacy quiz than their control group counterparts.
  • Greater appreciation for communication with lenders. Treatment group members are more likely to report that they would contact their lender before missing a mortgage payment. This finding indicates that education and counseling are successfully encouraging participants to engage productively with their lenders in times of distress.
  • Improved underwriting qualifications. Treatment group members are more likely than their control group counterparts to have a credit score of 620 or higher. This finding shows that education and counseling are helping treatment group members correct inaccuracies in their credit reports, reduce bad credit events such as late or missed payment, or both to push their credit scores over the 620 threshold.
  • No evidence of improved budgeting practices. Treatment group members are no more or less likely than their control group counterparts to compare a budget with their actual spending.

More info

Fast Facts

Calif. median home price: May 2016:

  • California: $518,760
  • Calif. highest median home price by region/county: San Francisco, $1,409,370
  • Calif. lowest median home price by region/county: Siskiyou, $174,000

Calif. Pending Home Sales Index
Statewide pending home sales rose in May on an annual basis, with the Pending Home Sales Index increasing 3.8 percent from 131.4 in May 2015 to 136.5 in May 2016

Calif. Traditional Housing Affordability Index: First Quarter 2016: 34 percent

Mortgage rates: Week ending 6/16/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.56% fees/points: 0.6% 
  • 15-yr. fixed: 2.83% fees/points: 0.5%

Nearly All Top Housing Metros Improve Year Over Year
Freddie Mac recently released its Multi-Indicator Market Index (MiMi), showing the spring homebuying season staying on course in most areas of the country, with two additional metros -- Charlotte, North Carolina, and Knoxville, Tennessee -- entering their benchmark ranges.

The national MiMi value stands at 84.1, indicating a housing market that's on the outer range of its historic benchmark level of housing activity, with a +0.27 percent improvement from March to April and a three-month improvement of +1.63 percent. On a year-over-year basis, the national MiMi value has improved +7.37 percent. Since its all-time low in October 2010, the national MiMi has rebounded 42 percent, but remains significantly off from its high of 121.7.
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Consumer Confidence Improves in June
Consumer confidence, which had decreased in May, improved in June. The Index now stands at 98 (1985=100), up from 92.4 in May. The Present Situation Index increased from 113.2 to 118.3, while the Expectations Index rose from 78.5 to 84.5 in June.

Consumers’ appraisal of current conditions improved in June. Those stating business conditions are “good” increased slightly from 26.1 percent to 26.9 percent, while those saying business conditions are “bad” decreased from 21.4 percent to 17.7 percent. Consumers’ assessment of the labor market was mixed. Those claiming jobs are “plentiful” declined from 24.5 percent to 23.4 percent, however those claiming jobs are “hard to get” also decreased from 24.5 percent to 23.3 percent.

Consumers’ optimism regarding the short-term outlook improved in June. Those expecting business conditions to improve over the next six months increased from 15.0 percent to 16.8 percent, while those expecting business conditions to worsen decreased slightly, from 11.7 percent to 11.4 percent.
More info

 


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Baby Boomers Poised to Compete for Affordable Rental Housing
Baby Boomers and others aged 55 or older, including several million current homeowners, are poised to move to rental units based on estimates from the first Freddie Mac 55+ Survey of housing plans and perceptions of people born before 1961.

The Freddie Mac 55+ Survey shows an estimated 6 million homeowners and nearly as many renters prefer to move again and rent at some point. Of those that expect to move again, over 5 million indicate they are likely to rent by 2020.

Majorities of 55+ renters (79 percent) and homeowners (83 percent) who expect to rent their next home predict it will cost the same or less than their current one, according to the Freddie Mac 55+ Survey.

Other findings from the Freddie Mac 55+ Survey found just over half of renters (51 percent) prefer renting over owning. This is especially true among existing multifamily renters (60 percent). The survey also underscores the need for additional affordable rental housing. Specifically, 47 percent of 55+ renters say they struggle from payday to payday, while 13 percent admitted they sometimes could not afford basics until their next paycheck.
More info

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Get ready for Long Beach! The CALIFORNIA REALTOR® EXPO is an event you won’t want to miss out on! Join us Sept. 27-29 and let’s get people asking, “WHO’S YOUR REALTOR®?”  Register now and save with early-bird pricing!
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Housing Costs Pinch 21.3M Renters
A record high number of American renters — about 21.3 million — are devoting 30 percent or more of their income to paying rent, according to the annual State of the Nation's Housing report from Harvard University's Joint Center for Housing Studies. What's more, 11 million renters in 2014 paid at least half of their income toward housing costs, which marked another record high, the report shows. Most financial experts say consumers shouldn't pay more than 30 percent of their monthly income for housing costs.

Rents, however, have been rising faster than wages for years now. In 2015, the median rent for a new apartment was $1,381, according to the report. That means a renter would need to earn at least $55,000 a year to afford the rent. Yet on average, renters earn about $34,000 a year — so for them, an affordable rent would be closer to $850.
More info
 


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Homes with White Kitchens Sell for Less than Homes with Yellow Kitchens
A home's paint colors can have a notable impact on its final sale price. According to a new analysis from Zillow Digs, for-sale listings with rooms painted in sage green or wheat yellow can sell for as much as $1,300 more than expected.

Zillow Digs analyzed photos from nearly 50,000 sold homes from around the country to see how certain room type and paint color combinations impacted their sale price.

Of all the colors analyzed, homes with yellow kitchens, often in hues of creamy or wheat yellow, yielded the highest sale premium ($1,360 above expected values). Wall colors painted in other earthy tones like sage green or dove gray were also present in top-performing listings.

While everyone's style choices are different, there are some paint colors that could actually deter buyers. For example, homes with dark or style-specific wall colors, like slate gray or terracotta sold for as much as $1,100 less than expected. Lack of paint color could also have a negative impact on a home's sale price as those with white or eggshell-colored kitchens also sold below expectations.
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New Collaborative Launches Effort to Highlight Housing Counseling for Consumers
Housing counseling is available to consumers across the country and represents a tremendous opportunity for those who need assistance on the path to homeownership; but too often, homebuyers and sellers are not even aware it exists.

A national collaboration of lenders, investors, real estate agents, and housing counseling agencies announced that they are joining forces to raise awareness of the opportunities and benefits of working with housing counseling agencies.

The Homeownership Collaborative will try out ideas in four markets during the next year and explore a broader effort in the future, all with the goal of increasing housing counseling awareness.
More info

 

 

 

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C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. C.A.R. does not in any way endorse or sponsor any product or service or vendor mentioned herein unless expressly stated.

EDITED BY: Mary Belongia

 

Copyright © 2016 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

 

​6/22/2016​

C.A.R. Newsline

Table of contents

»

FAA Finalizes Rule for Commercial Drones

»

#HomeChampSweepstakes Ending Soon

»

More Home Buyers Have Renovation in Mind

»

Presidential Elections Have Little Impact on California Housing Market

»

Inventory Drops Again, But Demand for Starter Homes Also Falling

»

Additional stories

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More Home Buyers Have Renovation in Mind
As buyers face more hurdles finding their dream home because of limited inventories, some are settling for a property they can eventually mold into what they want. Over a quarter of renovation projects are being driven by recent home purchases, according to the 5th annual Houzz & Home survey of more than 120,000 respondents. Home owners say they are opting to renovate instead of buying a "perfect" home largely because they think remodeling is a more affordable option or could provide a better return on investment, the survey found.

Recent home buyers invest more in renovation than other home owners — $66,600 versus $59,800. They also tend to take on larger projects and are nearly three times as likely to renovate all of their interior spaces than other home owners, according to the survey.

Kitchen remodels are the most popular renovation projects, followed by master and non-master bathrooms. Other top priorities include the addition of home automation and curb-appeal projects, such as upgrading exterior paint, roofing, exterior doors, and decks.
More info

Presidential Elections Have Little Impact on California Housing Market
Presidential elections have historically had little or no negative impact on the California housing market, according to findings by C.A.R.

In an analysis of home sales dating back to 1990, the average growth in home sales during an election year is usually either slightly higher or lower each month than in non-presidential election years. Notably, sales growth is rarely negative during an election year, and there is no evidence of a systematic negative impact on home sales or prices stemming from election season. In fact, C.A.R. found that growth in home sales at the end of an election year actually outperforms non-election years by 7.1 percentage points.

In a separate poll by leading think tank The Futures Company commissioned by C.A.R.’s Center for California Real Estate, nearly three-fourths (70 percent) of survey respondents who plan to buy a home agreed that they would like the current presidential candidates to address how to make housing more affordable in their campaigns.

And, across all incomes, generations, and races/ethnicities, consumers were strongly in agreement that housing affordability should be a top priority on the presidential campaign trail as candidates make their pitches for ballots in the lead-up to the November contest.
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C.A.R. Disaster Relief Fund Available
C.A.R. stands ready to assist REALTORS® who have been impacted by wildfires with its Disaster Relief Fund. The Association established the fund in the wake of the 2003 California wildfires. Grants provided by the fund are used to help members of the REALTOR® family -- REALTORS®, their staff, and Association members and their staff -- who have incurred substantial losses due to wildfires and other disasters by distributing grants of $1,000 to $10,000. If you are a REALTOR® who has been impacted by the wildfires, you may make an application to request a grant from the C.A.R. Disaster Relief Fund by calling Jennifer Ly at (213) 739-8203 or e-mail JenniferL@car.org
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Forecast Predicts Top Outdoor Living Trends for 2016
Zillow Digs announced the top outdoor living trends for 2016 and the three biggest fads to ditch from 2015. Concrete coffee tables, teak chairs or dining sets and bright, aquamarine colors are predicted to be some of the biggest outdoor trends for summer 2016, according to the latest Zillow Digs Home Trend Forecast, a one-of-a-kind report combining data from a survey of interior design experts and an analysis of popular photos on Zillow Digs.

Top three outdoor patio trends for 2016:

  • The "new" concrete: Typically mixed with fiberglass and resin for a softer look, designers predict elements of concrete will show up in anything from coffee tables to tastefully stamped concrete patio floors.
  • Teak furniture: From Adirondack chairs to modern platform seating, furniture made from teak or other natural wood will take outdoor living by storm.
  • Aquamarine: Aquamarine will be the most popular statement color for summer 2016.

Three fads to forget:

  • Wrought iron furniture: Ornate patio sets are headed out of style, as summer 2016 is all about simplicity and clean lines.
  • High-maintenance lawns: This season homeowners will move away from designing outdoor spaces that require expensive, year-round maintenance.
  • Floral patterns: Intricate patterns, especially florals are overdone and quickly fading out of style.

More info

FAA Finalizes Rule for Commercial Drones
Using a drone to capture listing photos and videos or inspect properties is about to become significantly easier now that the federal government has finalized its long-awaited regulations over the commercial use of unmanned aerial systems.

The final rule issued Tuesday by the Federal Aviation Administration paves the way for people who obtain a remote pilot certificate to operate drones that weigh less than 55 pounds, as long as the aircraft remains within visual line-of-sight. Earning the certificate will involve passing a test of aeronautical knowledge at an FAA-approved testing center — but it will not require applicants to have formal flight training.

The new FAA regulations, which take effect in August, follow requests from industry groups, including the NATIONAL ASSOCIATION OF REALTORS®, for regulators to develop a framework that would allow people without specialized training to use drones for purposes other than a hobby. NAR sent multiple letters to the FAA during the rulemaking process and testified before Congress in support of the use of drones in the real estate industry.
More info

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Inventory Drops Again, But Demand for Starter Homes Also Falling
Trulia recently released its latest quarterly edition of the Trulia Inventory and Price Watch. This quarter's report offers buyers and sellers deeper insight into the change in supply and affordability of homes over the past year, within three different segments: starter homes, trade-up homes, and premium homes.

The spring house-hunting season brought very little relief for homebuyers, as the national inventory of all homes has dropped by about 6 percent over the past year. The number of starter and trade-up homes on the market nationwide has dropped by 12.3 percent and 11.5 percent, respectively. Meanwhile, decreased inventory continues to take a toll on the affordability of all home segments. Buyers will need to set aside between 0.5 percent and 1.3 percent more of their income towards a home purchase than they did last year. However, starter affordability has been hit the hardest, and as a result, starter homebuyers need to dedicate 1.3 percent more of their monthly income to buy a starter home.
More info


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Housing Costs Pinch 21.3M Renters
A record high number of American renters — about 21.3 million — are devoting 30 percent or more of their income to paying rent, according to the annual State of the Nation's Housing report from Harvard University's Joint Center for Housing Studies. What's more, 11 million renters in 2014 paid at least half of their income toward housing costs, which marked another record high, the report shows. Most financial experts say consumers shouldn't pay more than 30 percent of their monthly income for housing costs.

Rents, however, have been rising faster than wages for years now. In 2015, the median rent for a new apartment was $1,381, according to the report. That means a renter would need to earn at least $55,000 a year to afford the rent. Yet on average, renters earn about $34,000 a year — so for them, an affordable rent would be closer to $850.
More info
 


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Fast Facts

Calif. median home price: May 2016:

  • California: $518,760
  • Calif. highest median home price by region/county: San Francisco, $1,409,370
  • Calif. lowest median home price by region/county: Siskiyou, $174,000

Calif. Pending Home Sales Index: 
Statewide pending home sales rose in April on an annual basis, with the Pending Home Sales Index (PHSI)* increasing 4.1 percent from 135.9 in April 2015 to 141.6 in April 2016, based on signed contracts.

Calif. Traditional Housing Affordability Index: First Quarter 2016: 34 percent

Mortgage rates: Week ending 6/2/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.54% fees/points: 0.5% 
  • 15-yr. fixed: 2.81% fees/points: 0.5%

 

 

 

 

Connect with us
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C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. C.A.R. does not in any way endorse or sponsor any product or service or vendor mentioned herein unless expressly stated.

EDITED BY: Mary Belongia

QUESTIONS OR COMMENTS: contact C.A.R.      

Copyright © 2016 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

 

​6/15/2016​

C.A.R. Newsline

Table of contents

»

Owners in Western Cities Underestimate the Value Appraisers Put on Their Homes

   

»

Foreclosure Inventory Declines in April

»

Finance Helpline's Back-to-Basics Webinar: Underwriting & Loan Programs

»

Student Debt Delays Buyers By 5 Years

»

Additional stories

 

-----------------

Foreclosure Inventory Declines in April
CoreLogic recently released its April 2016 National Foreclosure Report which shows the foreclosure inventory declined 23.4 percent and completed foreclosures declined 15.8 percent compared with April 2015. The number of completed foreclosures nationwide decreased year over year from 43,000 in April 2015 to 37,000 in April 2016, representing a decrease of 68.9 percent from the peak of 117,813 in September 2010.

As of April 2016, the national foreclosure inventory included approximately 406,000, or 1.1 percent, of all homes with a mortgage compared with 530,000 homes, or 1.4 percent, in April 2015. The April 2016 foreclosure inventory rate is the lowest for any month since September 2007.

CoreLogic also reports that the number of mortgages in serious delinquency (defined as 90 days or more past due including loans in foreclosure or REO) declined 21.6 percent from April 2015 to April 2016, with 1.1 million mortgages, or 3 percent, in this category. The April 2016 serious delinquency rate is the lowest in more than eight years, since October 2007.
Read more

Student Debt Delays Buyers By 5 Years
Nearly three-quarters of non-home owners say that repaying their student loan debt is delaying their home purchase, according to a new survey by NAR and SALT, a program provided by the American Student Assistance.

What’s more, more than 50 percent of consumers say they expect to be delayed from buying a home by more than five years. Forty percent of consumers surveyed also said that student debt was delaying them from moving out of a family member’s house after graduating from college.

While a college degree increases the likelihood of stable employment and earning enough to buy a home, consumers graduating with student debt are putting home ownership on the backburner because of the multiple years it takes to pay off their student loans at an interest rate that is often nearly double current mortgage rates, says Lawrence Yun, NAR’s chief economist.
Read the report

How Much Will Buyers Pay for Walkable Space?
Urban development that boasts high density and walkability is in demand over life in the suburbs, according to a report by the Center for Real Estate and Urban Analysis at George Washington University School of Business and LOCUS: Responsible Real Estate Developers and Investors. In fact, such places are gaining market share against suburban areas for the first time in decades.

The report defines walkable urban areas as those with high density, more mixed-use real estate, and multiple transportation options. The report found that these areas command drastically larger rent premiums over suburban spaces, with the ability to charge 90 percent more for office space, 71 percent for retail, and 66 percent for multifamily rentals.
Read the report

Owners in Western Cities Underestimate the Value Appraisers Put on Their Homes
Quicken Loans announced that home appraisals in May were an average of 1.89 percent lower than what homeowners were expecting, according to the national Home Price Perception Index (HPPI). This is a slight move toward equilibrium compared to a difference of 1.95 percent in April. The East and Midwest are seeing the same discrepancy as the national aggregate, while the West is bucking this trend, with many of the region’s metro areas appraising higher than owners’ estimates.

Appraised values continued to climb in May. Quicken Loans’ National Home Value Index (HVI) reported values rising an average of 0.79 percent since April, but posting a robust 4.36 percent increase since May 2015. All four regions examined told a similar story – modest monthly growth and substantial annual increases.
Read more

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Facebook Now Included in #HomeChampSweepstakes
C.A.R.’s #HomeChampSweepstakes has now been expanded to include Facebook as an eligible form of entry into the sweepstakes. To enter, simply add a photo of you and your client during any phase of the home buying or selling transaction to your publicly accessible (cannot be an account set to “private”) Facebook, Instagram, or Twitter account, tag your client (or post their names if you don’t follow them on social media), and add the hashtag #HomeChampSweepstakes to the description.

Each week from now until July 1, 2016, two pairs of winners will be randomly selected to win a cool tech prize, including an Amazon Echo, Nest Thermostat, and more.
Learn more about the sweepstakes and see the official rules 


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Finance Helpline's Back-to-Basics Webinar: Underwriting & Loan Programs
Wednesday, June 22, 10 a.m. - 11 a.m.

Join C.A.R.’s Finance Helpline for a new Back-to-Basics Webinar on Wednesday, June 22, 10 a.m. to 11 a.m. where they will host expert speakers from Bank of the West to cover underwriting basics.  The underwriting process is often opaque and not easily understood by clients, but it holds the key to obtaining the right mortgage.  This hour-long webinar will cover what is to be expected during the underwriting process, what qualification criteria is required as well as taking a closer look at loan programs designed for first time buyers, jumbo, and low to moderate or 1099 income earners.

Don’t miss out on this opportunity to help you set expectations, timelines, and unlock lending opportunities for you and your client’s.
Register now


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Fast Facts

Calif. median home price: April 2016:

  • California: $509,100
  • Calif. highest median home price by region/county: San Francisco, $1,408,330
  • Calif. lowest median home price by region/county: Siskiyou, $166,670

Calif. Pending Home Sales Index
Statewide pending home sales fell in March on an annual basis, with the Pending Home Sales Index (PHSI) decreasing 1.7 percent from 138 in March 2015 to 135.6 in March 2016, based on signed contracts.

Calif. Traditional Housing Affordability Index: First Quarter 2016: 34 percent

Mortgage rates: Week ending 6/2/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.66% fees/points: 0.5% 
  • 15-yr. fixed: 2.87% fees/points: 0.5%

 

 

 

 

Connect with us
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C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. C.A.R. does not in any way endorse or sponsor any product or service or vendor mentioned herein unless expressly stated.

EDITED BY: Mary Belongia       

Copyright © 2016 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

 

​6/8/2016​

​​

C.A.R. Newsline

Table of contents

»

Move, Zillow Reach Settlement on Eve of Trial

»

Town Hall Webinar

»

Housing Matters Podcast: Hear Weekly Market Analysis from C.A.R. Economists

»

Majority of 55+ Homeowners Confident of Financially Comfortable Retirement

»

Turn a Memory into a Winning Moment

»

Additional stories

 

 

Housing Matters Podcast: Hear Weekly Market Analysis from C.A.R. Economists
The all-new Housing Matters Podcast is your housing hub for market analysis, real estate research, economic trends, and housing news from the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) and its institute the Center for California Real Estate (CCRE). Be sure to subscribe on iTunes to hear the latest episode every Friday to learn what you need to know about the market from C.A.R. experts who will give you their take on the week’s top real estate stories. Chief Economist Leslie Appleton-Young, Senior Economist Oscar Wei, and Economist Jordan Levine will discuss the market weekly on the podcast. The goal of the Housing Matters Podcast, and by extension CCRE, is to provide C.A.R.’s 180,000 members with ideas that help them become more knowledgeable, professional, and insightful in their work as practitioners and stakeholders in the future of real estate. Join the conversation and tune into the Housing Matters Podcast.
Listen here
Subscribe here

 

Home Purchase Sentiment Index Reaches New Survey High of 85.3 in May
Fannie Mae’s May 2016 Home Purchase Sentiment Index (HPSI) rose 1.6 percentage points in May to 85.3, reaching a new all-time survey high and rebounding from an 18-month low in March. While the Good Time to Sell component fell 2 percentage points in May, selling a home remains an attractive option as 52 percent of consumers believe it is a good time to sell a home. Overall, the HPSI is up 1 point since this time last year.

Highlights from the survey include:

  • The net share of Americans who say that it is a good time to buy a house fell 1 percentage point to 29 percent, reaching an all-time survey low for the second straight month.
  • Selling sentiment fell slightly in May, with the net percentage of those who say it is a good time to sell falling 2 percentage points to 13 percent. However, an all-time survey high (52 percent) continue to believe it is a good time to sell.
  • The net share of Americans who say that home prices will go up rose 5 percentage points to 42 percent, continuing the rising trend that began in March.
  • The net share of those who say mortgage interest rates will go down rose 3 percentage points to negative 43 percent.
  • The net share of Americans who say they are not concerned with losing their job fell 2 percentage points to 72 percent.
  • The net share of Americans who say their household income is significantly higher than it was 12 months ago rose 7 percentage points to 18 percent, reaching a new all-time survey high.

More info

Bay Area Has the Lowest Rates of Negative Equity Among Large Markets
As the housing market continues to recover, homeowners who are underwater on their mortgages are increasingly concentrated in the Rust Belt, while West Coast homeowners are less likely to be in negative equity, according to the first quarter Zillow Negative Equity Report.

Nationally, 12.7 percent of homeowners with a mortgage were in negative equity, meaning they owed more on their mortgage than their homes were worth. U.S. negative equity is down from a peak level of 31.4 percent in the first quarter of 2012.

For years, Las Vegas has been the prime example of the housing bubble and bust, with nearly three-quarters of mortgaged homeowners underwater when the market bottomed out in in the first quarter of 2012. But Chicago now has the highest negative equity rate among large U.S. markets, surpassing Las Vegas in the first quarter of 2016. 

Four years later, the West Coast, home to hot markets like the Bay Area, Portland, and Seattle, has only 10.2 percent of homeowners with negative equity, but 15.2 percent of all mortgaged homeowners.
More info

 

 

Move, Zillow Reach Settlement on Eve of Trial
Zillow agreed Monday to pay $130 million to settle allegations that two of its executives stole trade secrets from Move Inc., operator of realtor.com®. The settlement came just as the case was preparing to move to trial, with jury selection slated for this week.

NAR was a co-plaintiff in the suit, brought in 2014 against Zillow and the two executives, both former executives of Move. Move and NAR had accused the former Move executives, Errol Samuelson and Curt Beardsley, of stealing confidential documents and breaching their fiduciary duties to the company.

Among the key issues to be decided was whether the executive defections played a role in derailing a potential Move-Trulia merger. Judge Sean O’Donnell of the King County Superior Court in Seattle ruled in pre-trial motions that Move and NAR showed sufficient evidence to argue that, because of the defendants’ acts, Zillow was “unjustly enriched” by its acquisition of Trulia – a claim that could have carried up to $1 billion in damages. O’Donnell had also granted a motion to allow a jury instruction on evidence destruction by Beardsley.
More info


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Town Hall Webinar
Join C.A.R.’s Vice President and Chief Economist Leslie Appleton-Young and Senior Vice President and Chief Lobbyist Alex Creel for a town hall webinar Tuesday, June 14, 10 a.m. – 11 a.m. as they discuss housing affordability and inventory from an economic and political perspective.
Space is limited, so register today.


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Majority of 55+ Homeowners Confident of Financially Comfortable Retirement
Three out of four homeowners born before 1961 are confident they will have a financially comfortable retirement according to the Freddie Mac 55+ Survey, a comprehensive survey of the housing perceptions and preferences of Americans over the age of 55 released by Freddie Mac.

The survey also found that the majority of homeowners in this age group were very satisfied with their homes, their communities and their quality of life. Consistent majorities also said homeownership makes financial sense at almost every stage of adult life, whether or not a person is married or has children.
More info


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Renters Value Homeownership, Face Affordability Challenges
Current renters value homeownership and want to buy a home but many are encountering affordability and financial obstacles that prevent them from buying, according to C.A.R.’s “2016 Renter Survey.”

Nearly half of renters (48 percent) plan to buy a home in the future, with 10 percent saying that they plan to buy within a year. For those not planning to buy, an improvement in finances, lower housing prices, and saving enough for a downpayment would motivate them to buy now.

Homeownership remains important to renters, with nearly half (45 percent) rating it 8 or higher in importance on a scale of 1-10, with 10 being extremely important. The average was 6.8. Nearly all renters (95 percent) see advantages to homeownership; freedom to do what you want with your home, building equity, and having permanence and stability were the top benefits mentioned by renters.
More info
 


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Home Prices Up 6.2 Percent in April 2016
CoreLogic released its CoreLogic Home Price Index (HPI) and HPI Forecast data for April 2016 which shows home prices are up both year over year and month over month.

Home prices nationwide, including distressed sales, increased 6.2 percent year over year in April compared with the previous year and increased 1.8 percent month over month, according to the CoreLogic HPI.

The CoreLogic HPI Forecast indicates that home prices will increase 5.3 percent on a year-over-year basis from April 2016 to April 2017, and 0.9 percent on a month-over-month basis.
More info

Fast Facts

Calif. median home price: April 2015:

  • California: $509,100
  • Calif. highest median home price by region/county: San Francisco, $1,408,330
  • Calif. lowest median home price by region/county: Siskiyou, $166,670

Calif. Pending Home Sales Index
Statewide pending home sales fell in March on an annual basis, with the Pending Home Sales Index (PHSI) decreasing 1.7 percent from 138 in March 2015 to 135.6 in March 2016, based on signed contracts.

Calif. Traditional Housing Affordability Index: First Quarter 2016: 34 percent

Mortgage rates: Week ending 6/2/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.66% fees/points: 0.5% 
  • 15-yr. fixed: 2.92% fees/points: 0.5%

 

 

 

 

Connect with us
FacebookLinkedInTwitterYouTube

 

 

C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. C.A.R. does not in any way endorse or sponsor any product or service or vendor mentioned herein unless expressly stated.

EDITED BY: Mary Belongia 

Copyright © 2016 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

 

​6/1/2016​

C.A.R. Newsline

Table of contents

»

Senior Housing Facing Affordability Crisis

»

Facebook Is Motivating Home Buying Decisions

»

Living With Parents Edges Out Other Living Arrangements for 18- to 34-Year-Olds

»

Single Men vs. Women: Who Fares Best in Housing?

»

Affordability, Competition are Homebuyers’ Top Concerns

»

Additional stories

 

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Living With Parents Edges Out Other Living Arrangements for 18- to 34-Year-Olds
Broad demographic shifts in marital status, educational attainment and employment have transformed the way young adults in the U.S. are living, and a new Pew Research Center analysis of census data highlights the implications of these changes for the most basic element of their lives – where they call home. In 2014, for the first time in more than 130 years, adults ages 18 to 34 were slightly more likely to be living in their parents’ home than they were to be living with a spouse or partner in their own household.

This turn of events is fueled primarily by the dramatic drop in the share of young Americans who are choosing to settle down romantically before age 35. Dating back to 1880, the most common living arrangement among young adults has been living with a romantic partner, whether a spouse or a significant other. This type of arrangement peaked around 1960, when 62 percent of the nation’s 18- to 34-year-olds were living with a spouse or partner in their own household, and only one-in-five were living with their parents.

By 2014, 31.6 percent of young adults were living with a spouse or partner in their own household, below the share living in the home of their parent(s) (32.1 percent). Some 14 percent of young adults were heading up a household in which they lived alone, were a single parent or lived with one or more roommates. The remaining 22 percent lived in the home of another family member (such as a grandparent, in-law or sibling), a non-relative, or in group quarters (college dormitories fall into this category).
More info

Affordability, Competition are Homebuyers’ Top Concerns
One in four respondents to a recent survey cited affordability as their top concern in buying a home, making it the most common response, according to Redfin. Competition was the next-most common worry, cited by one in five homebuyers, a number that has increased from one in 10 in November.

Many of those looking to buy are fleeing an expensive rental market. About one in four homebuyers surveyed this month cited high rent as their reason for house hunting, a significant jump since last summer.

The change is attributable to first-time buyers. In the most recent survey, more than fifty percent said high rent led them to the market, as compared to only 25 percent of first-timers in August.
More info

Banks Rush to Offer 3% Down Payment Loans
As some banks veer from Federal Housing Administration loans, they're offering their own low down payment mortgages to appeal to home shoppers struggling to save enough to buy a home. Wells Fargo recently made headlines when it debuted its 3 percent down payment loan.

PMorgan Chase also announced its offering called the “Standard Agency 97%” program, a 3 percent down payment loan geared for first-time home buyers and requires a FICO score of 680. Chase also has a loan program called “DreaMaker Mortgage,” which offers a 5 percent down payment – 3 percent of which can come from the borrower as well as flexible funding options for closing costs and reduced mortgage insurance requirements.

Other banks have recently announced their low down payment offerings. Earlier this year, Bank of America began offering a 3 percent down payment loan that did not involve the Federal Housing Administration and does not require mortgage insurance. The bank requires a minimum FICO score of 660.

Senior Housing Facing Affordability Crisis
Millions of older adults will struggle to find housing that is affordable and physically suits their needs, according to a new report by the Bipartisan Policy Center’s Senior Health and Housing Task Force, which outlines recommendations for states and legislators to help alleviate the lack of suitable senior housing.

In 2013, about 11.2 million "extremely low-income" renter households existed, which includes 2.6 million senior households with no children. Yet the former HUD secretaries note that only 4.3 million affordable and rental homes were available. The shortfall: 6.9 million homes.

What's more, the number of households aged 65 to 74 and 75 and older with "severe" rent burdens — which means they pay more than 50 percent of their income on housing — is expected to rise by 42 percent and 39 percent, respectively, by 2025, according to the Harvard Joint Center for Housing.
More info


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Facebook Is Motivating Home Buying Decisions
Facebook friends can be a powerful motivator when it comes to home ownership, according to a report by the National Bureau of Economic Research. Researchers found that Facebook users whose friends had a positive home ownership experience are more likely to be influenced to buy a home of their own.

Consumers who had online networks post about their home values rising more than 5 percent over the past two years, for example, are 3.1 percent more likely to buy a home over the next two years, researchers found. What’s more, they are 1.7 percent more likely to purchase a bigger home, 3.1 percent more likely to pay a higher price for it, and 7 percent more likely to make a larger down payment.

In the study, researchers evaluated nearly 1,250 responses to a housing market survey distributed to Facebook users in Los Angeles as well as LA public deed records of nearly 434,000 renters and more than 1 million home owners.
More info


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Single Men vs. Women: Who Fares Best in Housing?
Home ownership is more profitable for single men than for single women, according to a new study by RealtyTrac.

Indeed, researchers found that homes owned by single men are valued 10 percent higher, on average, than homes owned by single women. Also, homes owned by single men have gained an average of $63,921 since purchase, which equates to a 33 percent return on purchase price. That is $10,112 – or 16 percent – higher than average gains single women have seen from their home purchase.

The current value of homes owned by single men averages $255,226 – 10 percent above the current market value average of homes owned by single women ($229,094).
More info


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 Consumers Applying for a Mortgage Up to Three Times as Likely to Open New Credit Cards and Auto Loans
A new TransUnion study found that consumers applying for a new mortgage are on average two to three times more likely to open a new auto loan or credit card account over the next 12 months. In fact, many of these consumers open these accounts as soon as one month after their existing mortgage payoff.

The study found that prime or better mortgage applicants on average are over 50 percent as likely to open a new credit card over the next 12 months following a mortgage inquiry compared to the overall population. These same consumers can be up to three times as likely to open a new auto loan in that same 12 month period.
More info
 


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Fast Facts

Calif. median home price: April 2015:

  • California: $509,100
  • Calif. highest median home price by region/county: San Francisco, $1,408,330
  • Calif. lowest median home price by region/county: Siskiyou, $166,670

Calif. Pending Home Sales Index
Statewide pending home sales fell in March on an annual basis, with the Pending Home Sales Index (PHSI) decreasing 1.7 percent from 138 in March 2015 to 135.6 in March 2016, based on signed contracts.

Calif. Traditional Housing Affordability Index: First Quarter 2016: 34 percent

Mortgage rates: Week ending 5/26/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.64% fees/points: 0.5% 
  • 15-yr. fixed: 2.89% fees/points: 0.5%

 

 

 

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C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. C.A.R. does not in any way endorse or sponsor any product or service or vendor mentioned herein unless expressly stated.

EDITED BY: Mary Belongia

Copyright © 2016 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

 

​5/25/2016​

C.A.R. Newsline

Table of contents

»

Share First-Time Homebuyers Increases in April

»

California Pending Home Sales Trend Higher in April

»

CRMLS Expands Access to Marin County, North Bay AORs

»

Webinar: Will This Year’s Renters Become Next Year’s Home Buyers?

»

Vacant “Zombie” Foreclosures Decrease in Second Quarter

»

Additional stories

 

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CRMLS Expands Access to Marin County, North Bay AORs
California Regional MLS (CRMLS) has signed agreements with Marin County and North Bay Association of REALTORS®. The addition of these organizations brings CRMLS Association/Board membership count to 36. As the nation’s largest and most recognized multiple listing service, it is the mission of CRMLS to provide each of its 80,000+ subscribers with a voice in the operation of their listing service.

The purpose of the partnership is to provide the Associations’ brokers and agents with enhanced MLS service and expanded product offerings, bringing true choice to their membership for the first time. As Participating Associations with CRMLS, Marin County and North Bay brokers will have full access to CRMLS’ database of over 100,000 active listings.

These agreements come as CRMLS actively works with other Northern California MLSs to reach a regional data sharing agreement. This initiative to consolidate MLS data across the state is led by CRMLS’s It’s My Business campaign, which aims to create a better future for agents and brokers by breaking down boundaries to California listing data access.
More info

Vacant “Zombie” Foreclosures Decrease in Second Quarter 2016
RealtyTrac released its Q2 2016 U.S. Residential Property Vacancy and Zombie Foreclosure Report, which shows nearly 1.4 million (1,398,046) U.S. residential properties (1 to 4 units) were vacant as of May 2016. The number of vacant properties increased 2.7 percent from the previous quarter when 1,361,628 U.S. residential properties were vacant.

The report also shows that 19,187 U.S. residential properties actively in the foreclosure process were vacant (zombie foreclosures), representing 4.7 percent of all residential properties in foreclosure — down 3.1 percent from the previous quarter and down 30.1 percent from a year ago.

States with the most vacant “zombie” foreclosures were New Jersey (4,003), New York (3,352), Florida (2,467), Illinois (1,074), and Ohio (1,064).
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U.S. House Prices Rise 1.3 Percent in First Quarter
U.S. house prices rose 1.3 percent in the first quarter of 2016 according to the Federal Housing Finance Agency (FHFA) House Price Index (HPI).  This is the 19th consecutive quarterly price increase in the purchase-only, seasonally adjusted index.  House prices rose 5.7 percent from the first quarter of 2015 to the first quarter of 2016.  This is the fourth consecutive year in which prices grew more than 5 percent. FHFA's seasonally adjusted monthly index for March was up 0.7 percent from February.  The HPI is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac.  FHFA has produced a video of highlights for this quarter. 
More info

 

Fast Facts

Calif. median home price: April 2015:

  • California: $509,100
  • Calif. highest median home price by region/county: San Francisco, $1,408,330
  • Calif. lowest median home price by region/county: Siskiyou, $166,670

Calif. Pending Home Sales Index
Statewide pending home sales rose in April on an annual basis, with the Pending Home Sales Index increasing 4.1 percent from 135.9 in April 2015 to 141.6 in April 2016.

Calif. Traditional Housing Affordability Index: First Quarter 2016: 34 percent

Mortgage rates: Week ending 5/19/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.58% fees/points: 0.6% 
  • 15-yr. fixed: 2.81% fees/points: 0.5%

Share First-Time Homebuyers Increases in April
The share first-time homebuyers continued to grow in April, even with low inventory and tough competition, according to results from the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey.

First-time homebuyers accounted for 38.9 percent of home purchases in April, based on a three-month moving average. That was up from 38.1 percent the previous month and 37.2 percent in April 2015.
As of the end of April, the market share for first-time homebuyers had increased for five consecutive months, taking share from both current homeowners and investors. Current homeowners accounted for 45.7% of home purchases in April and investors had a 15.4% share.
More info


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California Pending Home Sales Trend Higher in April
Led by the Central Valley, California statewide pending home sales reversed a three-month decline and posted higher in April, but a persistent shortage of homes for sale may dampen the upcoming spring homebuying season, according to C.A.R.

Statewide pending home sales rose in April on an annual basis, with the Pending Home Sales Index increasing 4.1 percent from 135.9 in April 2015 to 141.6 in April 2016, based on signed contracts. April’s annual increase was the strongest thus far this year. The Index is now at its highest level since March 2012.

At the regional level, pending sales were up on an annual basis in all major regions of the state, with the Central Valley Region’s index reaching an all-time high, thanks to its high affordability and ample inventory. The Southern California region also saw a healthy uptick in pending sales from a year ago, driven by double-digit increases in Orange County and Riverside.
More info

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Webinar: Will This Year’s Renters Become Next Year’s Home Buyers?
It's not too late to learn everything there is to know about renters so you can convert them into future clients! Join C.A.R.’s Research team for this webinar which will cover the results of C.A.R.'s 2016 Renter Survey. The survey includes the following information about renters:

  • Demographics
  • Current residence
  • Reasons for renting
  • Aspirations for home ownership and views on the importance and advantages of owning a home
  • When and where they plan to buy
  • How they plan to find a home and much more!

Date: Thursday, May 26, 2016
Time: 1 p.m. to 1:30 p.m. PST
Register now


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 Sales of New Homes Rise in April
Sales of new single-family houses were at a seasonally adjusted annual rate of 619,000 in April 2016, according to  estimates released jointly by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 16.6 percent above the revised March rate of 531,000 and is 23.8 percent above the April 2015 estimate of 500,000.

The median sales price of new houses sold in April 2016 was $321,100; the average sales price was $379,800.  The seasonally adjusted estimate of new houses for sale at the end of April was 243,000.  This represents a supply of 4.7 months at the current sales rate
More info
 


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More U.S. Housing Markets Improving
Freddie Mac recently released its Multi-Indicator Market Index (MiMi), showing the spring home buying season off to a strong start across many parts of the country.

The national MiMi value stands at 83.8, indicating a housing market that's on the outer range of its historic benchmark level of housing activity, with a 1 percent improvement from February to March and a three-month improvement of 1.56 percent. On a year-over-year basis, the national MiMi value has improved 7.23 percent. Since its all-time low in October 2010, the national MiMi has rebounded 41 percent, but remains significantly off from its high of 121.7.
More info

 

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C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. C.A.R. does not in any way endorse or sponsor any product or service or vendor mentioned herein unless expressly stated.

EDITED BY: Mary Belongia   

Copyright © 2016 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

 

​5/18/2016​


CALIFORNIA ASSOCIATION OF REALTORS

C.A.R. Newsline

Table of contents

»

Owner Perception of Home Values Improve

   

»

Foreclosure Starts Lowest Since 2000

»

Thin housing supply constrains California home sales in April

»

CALIFORNIA REALTOR® EXPO Registration Now Open

»

Additional stories

 

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Foreclosure Starts Lowest Since 2000
The delinquency rate for mortgage loans on one-to-four-unit residential properties remained unchanged from the previous quarter at a seasonally adjusted rate of 4.77 percent of all loans outstanding at the end of the first quarter of 2016. This was the lowest level since the third quarter of 2006. The delinquency rate was 77 basis points lower than one year ago, according to the Mortgage Bankers Association's (MBA) National Delinquency Survey.

The percentage of loans on which foreclosure actions were started during the first quarter was 0.35 percent, a decrease of one basis point 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 2000.

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 in the foreclosure process at the end of the first quarter was 1.74 percent, down three basis points from the previous quarter and 48 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 3.29 percent, a decrease of 15 basis points from previous quarter, and a decrease of 95 basis points from last year. This was the lowest serious delinquency rate since the third quarter of 2007.
More info

 

C.A.R. Historical Data Summary Now Available
C.A.R.’s Annual Historical Data Summary Report tracks trends in California's housing market from 1968 to present.  Updated to include 2015 data, this report provides historical data of California’s housing market including single-family and condominium home sales, pending home sales, housing affordability, and equity home sales.

REALTORS® can use this data to gauge how current market conditions compare to prior years and help their clients make more informed decisions.
View the 2016 Annual Historical Data Summary

Fast Facts

Calif. median home price: April 2015:

  • California: $509,100
  • Calif. highest median home price by region/county: San Francisco, $1,408,330
  • Calif. lowest median home price by region/county: Siskiyou, $166,670

Calif. Pending Home Sales Index
Statewide pending home sales fell in March on an annual basis, with the Pending Home Sales Index (PHSI) decreasing 1.7 percent from 138 in March 2015 to 135.6 in March 2016, based on signed contracts.

Calif. Traditional Housing Affordability Index: First Quarter 2016: 34 percent

Mortgage rates: Week ending 5/12/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.57% fees/points: 0.5% 
  • 15-yr. fixed: 2.86% fees/points: 0.5%

Owner Perception of Home Values Improve
Quicken Loans announced appraiser valuations were 1.95 percent lower than what homeowners estimated in April, according to the national Home Price Perception Index (HPPI). The gap between the two values narrowed since March when appraiser opinions of value were 2.17 percent lower than homeowner expectations. The HPPI is based on the company’s mortgage application and appraisal data.

Appraisers’ valuations also continued the upward trend in April. Home values dipped a slight 0.66 percent since March, but grew at a measured pace on an annual basis – rising 3.79 percent according to Quicken Loans’ national Home Value Index (HVI).
More info


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C.A.R. Finance Helpline Library Now Available in zipForm®
The C.A.R. Finance Helpline (CARFIN) library is now available in zipForm®. The CARFIN library provides you with the tools to help you assist your clients by putting information about financing the transaction at your fingertips – and it’s easily sharable with your clients. This new library will continue to grow with relevant informational tools that provide clarity for clients on financing. Included is how to increase the inventory of VA or FHA financing, detailed information about down payment assistance and a direct line to the Finance Helpline, a valuable free C.A.R. member benefit designed to help you smooth out the kinks with lenders in your real estate transactions.            

Your new C.A.R. library is accessible when you log-in to zipForm®. Look for CARFIN library when clicking the “Select Library” drop-down menu from your form viewer. Learn how to access your new member benefit by attending a webinar today!
More info


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Thin housing supply constrains California home sales in April
While sales remained above the 400,000 benchmark level, California existing home sales fell from the previous year in April as tight housing inventory continues to impede the housing market, according to C.A.R. April marked the second worst start to a spring home-buying season since the housing recovery began in 2009.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 406,800 units in April, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.

The April figure was down 2.6 percent from the revised 417,580 level in March and down 5.4 percent compared with home sales in April 2015 of a revised 430,030. The year-to-year decline was the first in five months and the largest sales drop since August 2014.

An imbalance between supply and demand pushed the median price of an existing, single-family detached California home 5.3 percent higher in April to $509,100 from $483,280 in March. April’s median price was 5.1 percent higher than the revised $484,370 recorded in April 2015. April marked the first time in nine years that the median price has risen above the $500,000 level; it is still below the pre-recession peak of $594,530 reached in May 2007.
More info


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 New Tool Helps Exchange and Store Sensitive Data
Citrix Sharefile has recently joined the C.A.R. Member Discount Program. Citrix ShareFile, and related products, is the solution of choice for fast, easy, and secure storage and sharing of files that integrates with the tools you use to get more done. Citrix helps you fulfill your technology needs to efficiently manage work, meet with clients, exchange information easily, access desktop computers remotely, and much more.

C.A.R. members can take advantage of the 15 percent lifetime discount and other exclusive benefits only through this link.
 


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HARP Refinances Surpass 3.4 Million
The Federal Housing Finance Agency (FHFA) announced that more than 3.4 million homeowners have refinanced their mortgages through the Home Affordable Refinance Program (HARP).  FHFA's first quarter Refinance Report shows that more than 19,000 HARP refinances were completed through March, bringing the total to 3,400,543 refinances since the program began in 2009. 

HARP expires at the end of this year and there are still more than 325,000 U.S. borrowers eligible for the program who have a financial incentive to refinance.  These so called "in-the-money" borrowers meet the basic HARP eligibility requirements, have a remaining balance of  $50,000 or more on their mortgage, have a remaining term on their loan of greater than 10 years, and their mortgage interest rate is at least 1.5 percent higher than current market rates.  These borrowers could save, on average, $2,400 per year by refinancing their mortgage through HARP. 
More info

 

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C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. C.A.R. does not in any way endorse or sponsor any product or service or vendor mentioned herein unless expressly stated.

EDITED BY: Mary Belongia

FOR PERMISSION TO REPRINT CONTENT FROM C.A.R. NEWSLINE, please complete this request form.

Copyright © 2016 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

 

​5/11/2016​

C.A.R. Newsline

Table of contents

»

Active Military Homebuyers Buy Larger, More Expensive Homes

»

National Foreclosure Inventory Down 23.2 Percent

»

Level Home Prices Buoy Housing Affordability

»

C.A.R. Partners with New Client Review and Referral Service

»

Home Purchase Sentiment Index Increases to 83.7 in April

»

Additional stories

 

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Strong Wage Growth, Level Home Prices Buoy Housing Affordability
Higher wages and lower seasonal home prices combined to push California housing affordability higher in the first quarter of 2016, compared to the previous quarter, according to a recent report by C.A.R. Affordability was flat when compared to the previous year as rising home price offset income gains.

The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California in first-quarter 2016 rose to 34 percent from the 30 percent recorded in the fourth quarter of 2015 and was unchanged from first-quarter 2015, according to C.A.R.’s Traditional Housing Affordability Index (HAI).  This is the 12th 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 first quarter of 2012.

Home buyers needed to earn a minimum annual income of $92,571 to qualify for the purchase of a $465,280 statewide median-priced, existing single-family home in the first quarter of 2016.  The monthly payment, including taxes and insurance on a 30-year, fixed-rate loan, would be $2,314, assuming a 20 percent down payment and an effective composite interest rate of 4.01 percent.  The effective composite interest rate in fourth-quarter 2015 was 4.07 percent and 3.97 percent in the first quarter of 2015.  
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Home Purchase Sentiment Index Increases to 83.7 in April
Fannie Mae’s April 2016 Home Purchase Sentiment Index (HPSI) rose 3.5 percentage points in April to 83.7. More consumers think home prices will go up over the next 12 months compared to March, and slightly fewer consumers expect Mortgage Rates to go up over the next 12 months. Overall, the HPSI is up 1.4 points since this time last year.

  • The net share of American who say that it is a good time to buy a house fell 3 percentage points to 30 percent, reaching an all-time survey low.
  • Selling sentiment approached its all-time survey high in March, with the net percentage of those who say it is a good time to sell rising 16 percentage points to 15 percent.
  • The net share of respondents who say that home prices will go up rose 3 percentage point to 37 percent, continuing the rising trend from March.
  • The net share of those who say mortgage interest rates will go down fell 1 percentage point to negative 46 percent.
  • The net share of respondents who say they are not concerned with losing their job rose 6 percentage points to 74 percent, nearly making up the 7 percentage point decrease in March.
  • The net share of respondents who say their household income is significantly higher than it was 12 months ago remained the same at 11 percent.

More info

Regulatory Costs Account for Nearly a Quarter of the Price of a New Home
On average, regulations imposed by all levels of government account for 24.3 percent of the sales price of a new single-family home, according to a new study by the National Association of Home Builders (NAHB).

Breaking down the total regulatory costs further, the study revealed that three-fifths of this--14.6 percent of the final house price--is due to a higher price for a finished lot resulting from regulations imposed during the lot's development. The other two-fifths--9.7 percent of the house price--is the result of costs incurred by the builder after purchasing the finished lot.

While NAHB's previous regulatory estimates in a 2011 study were fairly similar, the price of new homes increased substantially in the interim. When applying these percentages to Census data on new home prices, the data show an estimate that regulatory costs in an average home built for sale went from $65,224 to $84,671--a 29.8 percent increase during the roughly five-year span between NAHB's 2011 and 2016 estimates. Meanwhile, disposable income per capita in the U.S. increased 14.4 percent during that same time period, meaning that the average cost of regulation embodied in a new home is rising more than twice as fast as the average American's ability to pay for it.
More info

Fast Facts

Calif. median home price: March 2015:

  • California: $483,280
  • Calif. highest median home price by region/county: San Francisco, $1,360,580
  • Calif. lowest median home price by region/county: Merced, $189,500

Calif. Pending Home Sales Index
Statewide pending home sales fell in March on an annual basis, with the Pending Home Sales Index (PHSI) decreasing 1.7 percent from 138 in March 2015 to 135.6 in March 2016, based on signed contracts.

Calif. Traditional Housing Affordability Index: First Quarter 2016: 34 percent

Mortgage rates: Week ending 5/5/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.61% fees/points: 0.6% 
  • 15-yr. fixed: 2.86% fees/points: 0.5%

Active Military Homebuyers Purchase at Younger Ages, Buy Larger, More Expensive Homes
Differences in household demographics and affordable financing options spur homebuying demand for young active-service military members, causing them to significantly outpace the share of non-military homebuyers under the age of 35, according to the first-ever 2016 Veterans & Active Military Home Buyers and Sellers Profile by NAR. The profile evaluates the differences of recent active-service and veteran home buyers and sellers compared to those who’ve never served. The survey also found that while nearly all veteran and non-military buyers and sellers use an agent, usage is practically universal among active-service military members.

The results revealed quite a few contrasts between active-service military buyers and buyers who’ve never served. At a median age of 34 years old, the typical active-service buyer was a lot younger than non-military buyers (40 years old) and was more likely to be married and have multiple children living in their household. As a result, they typically bought a larger home that cost more than those purchased by both non-military buyers and veterans.
More info


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National Foreclosure Inventory Down 23.2 Percent
CoreLogic released its March 2016 National Foreclosure Report which shows that foreclosure inventory declined 23.2 percent and completed foreclosures declined 14.9 percent compared with March 2015. The number of completed foreclosures nationwide decreased year over year from 42,000 in March 2015 to 36,000 in March 2016, representing a decrease of 69.7 percent from the peak of 117,782 in September 2010.

As of March 2016, the national foreclosure inventory included approximately 427,000, or 1.1 percent, of all homes with a mortgage compared with 556,000 homes, or 1.4 percent, in March 2015. The March 2016 foreclosure inventory rate is the lowest for any month since October 2007. 
More info


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C.A.R. Partners with New Client Review and Referral Service
eEndorsements has joined the C.A.R. Member Discount Program to offer members a complete review management solution to help capture verified customer testimonials and easily share them across social media and review sites. REALTORS® can also promote their customer endorsements on their website, Facebook business page, and in email with eEndorsements. Multi-user tools also are available for teams, brokerages, and other shared accounts. C.A.R. members receive a 65% savings and a FREE trial.
More info


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 FHFA Adjusts Multifamily Lending Caps for Fannie Mae and Freddie Mac
The Federal Housing Finance Agency (FHFA) announced that it has increased the 2016 multifamily lending caps for Fannie Mae and Freddie Mac (the Enterprises) from $31 billion to $35 billion, effective immediately. The adjustment is consistent with FHFA's 2016 Scorecard for the Enterprises in which FHFA committed to review the estimates for the size of the multifamily finance market each quarter and increase the caps, if warranted.  The adjustment is based on increased estimates of the overall size of the 2016 multifamily finance market.  As described in the Scorecard, loans in certain affordable and underserved market segments will continue to be excluded from the purchase caps.  

The multifamily lending caps are intended to further FHFA's strategic goal of maintaining the presence of the Enterprises as a backstop for the multifamily finance market, while not impeding the participation of private capital.  The 2016 multifamily finance market is larger than had been estimated due to continued high levels of property acquisitions and deliveries of newly constructed apartment units, as well as record levels of loan maturities that require refinancing.  
More info
 

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HUD Launches Healthy Homes App

The U.S. Department of Housing and Urban Development has unveiled a new mobile app to help educate the public about hidden home hazards that can impact the health of their families. The Healthy Homes App is designed to raise awareness about potentially serious health and safety problems in the home and the steps consumers can take to protect themselves.

The app provides extensive content in clear, simple language so that users can quickly understand the potential hazards throughout a home. The app also helps residents who live in condominiums, single- family detached homes, townhouses, or in apartment buildings.

A series of quizzes have been included in the app to help familiarize users with the basic information on lead, indoor air quality, mold, and many other housing-related hazards. Toxins such as lead, asbestos, and household chemicals are detrimental to health in many ways. Invisible poisonous gases such as carbon monoxide and radon also pose serious threats to family health. Since most residents spend 70% or more of their time inside their home, this app was developed to provide tips on how to make and keep homes safe from health hazards.

 

More info

 

 

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C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. C.A.R. does not in any way endorse or sponsor any product or service or vendor mentioned herein unless expressly stated.

EDITED BY: Mary Belongia

FOR PERMISSION TO REPRINT CONTENT FROM C.A.R. NEWSLINE, please complete this request form.

Copyright © 2016 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

 

C.A.R. Newsline

Table of contents

»

Homeownership Rate Continues to Decline

   

»

CCRE Housing Affordability Panel Tackles Challenges, Policy Solutions

»

Low Credit Scores May Dash Millennials’ Home-Buying Dreams

»

Fannie Mae HomeReady® Mortgage Webinar

»

Additional stories

 

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HUD Allocates $174 million Through New Housing Trust Fund

For the first time ever, the U.S. Department of Housing and Urban Development (HUD) has allocated nearly $174 million through the nation’s Housing Trust Fund. The Housing Trust Fund is a new affordable housing production program that will complement existing federal, state and local efforts to increase and preserve the supply of decent, safe, and sanitary affordable housing for extremely low- and very low-income households, including families experiencing homelessness.

By law, each state is allocated a minimum of $3 million. HUD has allocated more than $10 million to California. State affordable housing planners will use these funds for the following eligible activities:

  • Real property acquisition
  • Site improvements and development hard costs
  • Related soft costs
  • Demolition
  • Financing costs
  • Relocation assistance
  • Operating cost assistance for rental housing (up to 30% of each grant)
  • Reasonable administrative and planning costs

More info

Homeownership Rate Continues to Decline
National vacancy rates in first quarter 2016 stood at 7 percent for rental housing and 1.7 percent for homeowner housing, the Dept. of Commerce's Census Bureau announced last week. The homeowner vacancy rate was 0.2 percentage points lower than the rate in first quarter 2015 and 0.2 percentage points lower than the rate in fourth quarter 2015.

The homeownership rate of 63.5 percent was 0.2 percentage points lower than the first quarter rate of 63.7 percent and 0.3 percentage points lower than the fourth quarter 2015 rate of 63.8 percent.
More info 

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Low Credit Scores May Dash Millennials’ Home-Buying Dreams
Nearly one-third of millennials hope to purchase a home within the next year, but more than 40 percent may not have the credit to do so, according to a new TransUnion survey.

TransUnion’s survey found that while 32 percent of millennials say they plan to buy a home within the next 12 months, 43 percent currently have a subprime credit score – defined as a score within the 300 – 600 VantageScore range.

Millennials surveyed recognized their finances will impact their ability to become homeowners. When asked their primary concerns about the home buying process, millennials said they are worried about having a low credit score (47 percent), not being able to fund a down payment (59 percent), and/or not qualifying for a low interest rate on a mortgage (56 percent), above all other concerns.
More info

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 New First-time Home Buyer Vignettes Now Airing
C.A.R.’s annual consumer advertising campaign launched last month on NBC with two television commercials telling the long story of how a REALTOR® helped someone buy a home and close on their dreams of entrepreneurship and finding the perfect riding companion.

As an added benefit of working with NBC, C.A.R. also has access to its talent. This year, C.A.R. is working with author, host, and REALTOR® Egypt Sherrod on a series of four, 30-second vignettes. Through the series, Sherrod shares advice with home buyers that only a REALTOR® knows.

Sherrod also will be at CALIFORNIA REALTOR® EXPO in Long Beach. More details about her attendance will be available at a later date.

Visit C.A.R.’s YouTube channel to watch the vignettes and share them with your clients. 

 


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California REALTORS® Vote to Support Affordable Housing Proposal
The Board of Directors of the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) voted last Friday to support a $1.3 billion proposal by California Assembly members to create affordable housing programs.

“With a historically low homeownership rate of 54 percent and record high rental costs, the dream of owning a home in California is evaporating. Our teachers, nurses, firefighters, police officers, and other middle class workers should be able to afford to live in the communities they serve,” said C.A.R. President Pat “Ziggy” Zicarelli. “C.A.R. recognizes the urgency of California’s housing crisis and is fully supporting the proposal by the Assembly Housing and Community Development Committee to invest a portion of our state’s budget surplus to address this housing crisis.”

C.A.R. formed an Affordable Workforce Housing Task Force in August 2015 to examine existing policies in California designed to expand the availability of “affordable housing” and to make recommendations to increase the availability of affordable work force housing in California.
More info

 

Fast Facts

Calif. median home price: March 2015:

  • California: $483,280
  • Calif. highest median home price by region/county: San Francisco, $1,360,580
  • Calif. lowest median home price by region/county: Merced, $189,500

Calif. Pending Home Sales Index
Statewide pending home sales fell in March on an annual basis, with the Pending Home Sales Index (PHSI) decreasing 1.7 percent from 138 in March 2015 to 135.6 in March 2016, based on signed contracts.

Calif. Traditional Housing Affordability Index: Fourth Quarter 2015: 30 percent

Mortgage rates: Week ending 4/28/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.66% fees/points: 0.6% 
  • 15-yr. fixed: 2.89% fees/points: 0.5%

 

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Connect with us
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C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. C.A.R. does not in any way endorse or sponsor any product or service or vendor mentioned herein unless expressly stated.

EDITED BY: Mary Belongia

Copyright © 2016 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

 



 

​4/20/2016​


CALIFORNIA ASSOCIATION OF REALTORS

C.A.R. Newsline

Table of contents

»

HomeStyle Energy Mortgage Webinar

»

Leg Day is One Week Away

»

Keep Your Home California Receives Additional Funding

»

Automate Your Business With Realvolve

»

Home Sales and Median Home Price Accelerate in March

»

Additional stories

 

-----------------

 

Keep Your Home California Receives Additional Funding
Keep Your Home California will receive an additional $383.3 million in funding from the federal government, allowing the mortgage-assistance program to help prevent foreclosure for more homeowners struggling with financial hardships.

The U.S. Department of the Treasury announced the additional funding Wednesday, the second phase of additional funding approved for the Hardest Hit Fund program during the past two months.

The combined $383.3 million will allow the state-managed program to help at least 12,000 more homeowners. Qualifying homeowners can receive up to $100,000 in mortgage payment assistance from Keep Your Home California.

With the additional funding, Keep Your Home California will now continue to Dec. 31, 2020, or until the money is used, whichever comes first. The previous deadline for the program was December 31, 2017.
More info

 

March Sales, Median Price Accelerate From Previous Month, Year
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.
More info

 

Realtor.com® Identifies America's Boom Towns
Realtor.com released its list of America's Top 'Boom Towns'. Led by Gilbert, Ariz. (85297); Los Angeles (90012), and Dallas (75201), these neighborhoods are striking it rich when it comes to new home construction, job creation, and an increasing number of households – the gold mine for housing market growth.

America's Top Boom Towns are demonstrating some of the strongest growth in jobs, household formation, and housing starts across the country. Every market on the list has experienced between one and five times the average job growth of the top 100 counties in the country. Household growth in each of these areas is between one and seven times the average growth of the top 100 areas. New home starts are between one and six times the average growth in the top 100 counties. Most importantly, each individual ZIP code is projected to see a growth in households of between nine and 19 percent over the next five years.

The top 10 Boom Towns are:

  1. Gilbert, Ariz.
  2. Los Angeles
  3. Dallas
  4. Miami
  5. Las Vegas
  6. Seattle
  7. Rolesville, N.C.
  8. Brooklyn, N.Y.
  9. Chicago
  10. Atlanta

 

Survey Finds Investors Shifting to Niche Properties
More real estate investors are turning to niche properties and away from investing in single-family homes and multifamily properties than they have in recent years, according to a C.A.R. survey of its members about their interactions with real estate investors.

C.A.R.’s 2016 California Investor Survey found 10 percent of investors purchased commercial, land, mobile homes, or other types of properties in the past year, up from 7 percent in 2015 and 6.7 percent in 2014.

Given a lack of inventory of distressed homes on the market, the share of single-family homes being purchased by investors has been declining gradually since 2013. Seventy percent of investors purchased single-family homes in 2016, down from 78 percent in 2013.
More info

HomeStyle Energy Mortgage Webinar
Join Fannie Mae for a free webinar about its HomeStyle Energy mortgage, which helps lenders offer affordable financing to borrowers looking to make their homes more energy-efficient, comfortable, and reduce utility costs.

With HomeStyle Energy, borrowers can:

  • Pay off higher-interest energy improvement debt, including PACE (Property Assessed Clean Energy) loans.
  • Finance up to 15 percent of the as-completed appraised property value of a home.
  • Finance up to $3,500 in weatherization or water-efficient improvements with no energy report.

HomeStyle Energy mortgage loans can be originated by any Fannie Mae lender with no special approval. This webinar will review the options and requirements, and provide sample scenarios.

Register for an upcoming webinar

Tuesday, April 26, 2016 12:00 pm

Thursday, May 12, 2016 12:00 pm


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Leg Day is One Week Away
Every year, C.A.R. hosts Legislative Day as an opportunity for California REALTORS® to go to the Capitol, hear from the state’s top political leaders, learn more about issues affecting the real estate industry, network with other real estate professionals, and meet with their elected officials. Highlights of the day include the Morning Briefing where Speaker Atkins will speak, legislative office visits, and the Capitol Reception.

This year, Gov. Jerry Brown has accepted C.A.R.’s invitation to speak at Legislative Day on April 27 at the Sacramento Convention Center.

More info about Legislative Day.

To register for Legislative Day, please contact your local association of REALTORS®.


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Automate Your Business With Realvolve
Join C.A.R. Business Products along with special guest, Kendyl Young, for a free webinar on Thursday, April 28 at 10 a.m. for a guided tour of
Realvolve. This new tool, designed specifically for real estate will help you automate, communicate and manage your business to ensure no details get left undone.

Learn how you can use templates and workflows to automate your business and improve your bottom-line to create a lasting business that performs in any market condition with
Realvolve.
Register now


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FHFA Announces Principal Reduction Modification Program
The Federal Housing Finance Agency (FHFA) recently announced that Fannie Mae and Freddie Mac will offer principal reduction to certain seriously delinquent, underwater borrowers who are still struggling in the aftermath of the financial crisis to help them avoid foreclosure and stay in their homes.  The new Principal Reduction Modification program is a one-time offering for borrowers whose loans are owned or guaranteed by Fannie Mae or Freddie Mac and who meet specific eligibility criteria.  The modification will be available to owner-occupant borrowers who are 90 days or more delinquent as of March 1, 2016, whose mortgages have an outstanding unpaid principal balance of $250,000 or less, and whose mark-to-market loan-to-value (MTMLTV) ratios exceed 115 percent.  Other eligibility criteria apply.
More info
 


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Home Sellers Realize Highest Gains Since December 2007
RealtyTrac released its March and Q1 2016 U.S. Home Sales report, which shows that U.S. home sellers in March on average sold for $30,500 more than they purchased for, a 17 percent average gain in price — the highest average price gain for home sellers in any month since December 2007 at the onset of the Great Recession.

The RealtyTrac Home Sales report is based on publicly recorded sales deeds collected and licensed by RealtyTrac in more than 900 counties nationwide accounting for more than 80 percent of the U.S. population.

Among 125 metropolitan statistical areas with at least 300 sales in March, home sellers realized the biggest average gains compared to purchase price in San Francisco (72 percent average gain); San Jose, Calif. (60 percent); Boulder, Colo. (53 percent); Prescott, Ariz. (51 percent); and Los Angeles (48 percent).
More info

 

Fast Facts

Calif. median home price: March 2015:

  • California: $483,280
  • Calif. highest median home price by region/county: San Francisco, $1,360,580
  • Calif. lowest median home price by region/county: Merced, $189,500

Calif. Pending Home Sales Index
C.A.R.'s Pending Home Sales Index decreased 0.4 percent from 121.4 in February 2015 to 120.9 in February 2016, based on signed contracts.

Calif. Traditional Housing Affordability Index: Fourth Quarter 2015: 30 percent

Mortgage rates: Week ending 4/7/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.59% fees/points: 0.5% 
  • 15-yr. fixed: 2.88% fees/points: 0.4%

 

Connect with us
FacebookLinkedInTwitterYouTube

 

 

C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. C.A.R. does not in any way endorse or sponsor any product or service or vendor mentioned herein unless expressly stated.

EDITED BY: Mary Belongia          

Copyright © 2016 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

​4/13/2016​


CALIFORNIA ASSOCIATION OF REALTORS

C.A.R. Newsline

Table of contents

»

Wells Fargo Agrees to Pay $1.2 Billion for Improper Mortgage Lending Practices

»

How Are Disruptors and Pretenders Impacting Your Business?

»

Home Purchase Sentiment Index Posts Lowest Reading in Last 18 Months

»

Mortgage Apps Jump 10 Percent

»

New Homes Attract Consumers Looking to Save on Energy Costs

»

Additional stories

 

-----------------

 

Home Purchase Sentiment Index Posts Lowest Reading in Last 18 Months
Fannie Mae’s Home Purchase Sentiment Index (HPSI) decreased 2.5 points to 80.2 in March. Four of the six HPSI components fell in March, and the survey shows a more negative consumer outlook on the direction of the economy. The largest drop among the HPSI components was the net share of consumers who think now is a good time to sell a home, which fell by 8 percentage points.

Index highlights include:

  • The net share of respondents who say that it is a good time to buy a house fell 2 percentage points to 33 percent as more Americans say it is a bad time to buy.
  • The net percentage of those who say it is a good time to sell a house fell 8 percentage points to negative 1 percent, as more feel it is a bad time to sell than a good time to sell for the first time in over a year.
  • The net share of respondents who say that home prices will go up rose 1 percentage point to 34 percent, breaking the downward trend from the last few months.
  • The net share of those who say mortgage interest rates will go down rose 5 percentage points to negative 45 percent this month, as fewer consumers say mortgage rates will go down, continuing the trend from February.

More info

 

New Homes Attract Consumers Looking to Save on Energy Costs
The National Association of Home Builders recently surveyed builders about the features they are most likely to include in new homes they build this year. Four of the top 10 features focused on energy efficiency: low-E windows, Energy Star-rated appliances and windows, and programmable thermostats.

These features correspond to the list of features that consumers say are most important to them, as well. According to NAHB’s latest survey of home buyer preferences, Energy Star appliances and windows, as well as an Energy Star rating for the entire house, are among the top five most-wanted features.

In fact, home buyers are willing to pay more for a home if they can get lower utility costs in return. On average, they will pay an additional $10,732 up front to save $1,000 a year in utilities.

Other popular features that builders said they are most likely to add to their homes include a walk-in closet in the master bedroom, laundry room, great room (kitchen-family room-living room) and a central island and granite countertop in the kitchen.
More info

 

National Foreclosure Inventory Down in February
Foreclosure inventory declined 23.9 percent and completed foreclosures declined 10 percent in February compared with a year earlier, according to CoreLogic’s February 2016 National Foreclosure Report. The number of completed foreclosures nationwide decreased year over year from 38,000 in February 2015 to 34,000 in February 2016. The number of completed foreclosures in February 2016 was down 71.3 percent from the peak of 117,776 in September 2010.

The foreclosure inventory represents the number of homes at some stage of the foreclosure process and completed foreclosures reflect the total number of homes lost to foreclosure. Since the financial crisis began in September 2008, there have been approximately 6.2 million completed foreclosures across the country, and since homeownership rates peaked in the second quarter of 2004, there have been approximately 8.2 million homes lost to foreclosure.

As of February 2016, the national foreclosure inventory included approximately 434,000, or 1.1 percent, of all homes with a mortgage compared with 571,000 homes, or 1.5 percent, in February 2015. The February 2016 foreclosure inventory rate is the lowest for any month since November 2007. 
More info

 

Listings with Certain Keywords Can Sell Faster and for More
Listings mentioning keywords like "barn door," "shaker cabinets," or "subway tiles," sell faster and for up to 13 percent more than expected, according to a Zillow Digs analysis.

Zillow Digs analyzed listing descriptions from over 2 million homes nationwide sold between January 2014 and March 2016 to see how certain keywords referring to home features, amenities and design styles impacted their sale price.

Of the 60 keywords analyzed, listings mentioning "barn doors," a rustic sliding door often used on bedroom closets and kitchen pantries, saw the highest sale premium (13 percent above expected values). Other common craftsman-style keywords like "farmhouse sink" were also found in top-performing listings. Furthermore, homes described as "craftsman" performed better than any other design style analyzed. While people may think the rustic mason jar-vibe is out, it is still very popular with today's buyers. 
More info

 

 

 

 

Wells Fargo Agrees to Pay $1.2 Billion for Improper Mortgage Lending Practices
The Department of Justice recently announced that the United States has settled civil mortgage fraud claims against Wells Fargo Bank, N.A. (Wells Fargo) and Wells Fargo executive Kurt Lofrano, stemming from Wells Fargo’s participation in the Federal Housing Administration (FHA) Direct Endorsement Lender Program. In the settlement, Wells Fargo agreed to pay $1.2 billion and admitted, acknowledged and accepted responsibility for, among other things, certifying to HUD, during the period from May 2001 through December 2008, that certain residential home mortgage loans were eligible for FHA insurance when in fact they were not, resulting in the government having to pay FHA insurance claims when some of those loans defaulted.  The agreement resolves the United States’ civil claims in its lawsuit in the Southern District of New York, as well as an investigation conducted by the U.S. Attorney’s Office for the Southern District of New York regarding Wells Fargo’s FHA origination and underwriting practices subsequent to the claims in its lawsuit and an investigation conducted by the U.S. Attorney’s Office for the Northern District of California into whether American Mortgage Network, LLC (AMNET), a mortgage lender acquired by Wells Fargo in 2009, falsely certified and submitted ineligible residential mortgage loans for FHA insurance.
More info


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How Are Disruptors and Pretenders Impacting Your Business?
C.A.R. CEO Joel Singer will address how disruptors and pretenders are impacting real estate at the mid-year luncheon in Sacramento on Thursday, April 28, 2016. He will discuss how competition is not only between REALTORS® but extends industry-wide with new brokerage models, online portals such as Zillow, Trulia, and realtor.com, and with tech companies promising to automate the real estate process from top to bottom.

Register now to hear how these new business models are competing for real estate market share, how it might change your future, and how they are already impacting the way you do business.

Get your tickets now and take advantage of early bird ticket pricing. Tickets are only $60, but prices will go up soon so register now and save! 


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Mortgage Apps Jump 10 percent
Mortgage applications increased 10 percent from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending April 8, 2016.

The Market Composite Index, a measure of mortgage loan application volume, increased 10 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 10 percent compared with the previous week. The Refinance Index increased 11 percent from the previous week to its highest level since February 2016. The seasonally adjusted Purchase Index increased 8 percent from one week earlier its highest level since October 2015. The unadjusted Purchase Index increased 9 percent compared with the previous week and was 24 percent higher than the same week one year ago.
More info


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More Than One-fifth of Americans Look to Tax Refunds to Stay on Top of Bills
More than one-fifth (21 percent) of Americans plan to use their expected tax refund to pay down or pay off debt, while less than 10 percent will use the money to pay everyday expenses, according to the third annual consumer financial capability household survey from NeighborWorks America. The millions of adults who will use their tax refund in this way underscores the fragility of finances for millions of Americans, particularly for those who have the lowest incomes.

While 8 percent of adults overall said that they would use a tax refund to pay everyday expenses, 19 percent of people with annual incomes below $20,000 plan to use a refund this way, and 14 percent of millennials (18-34 years old) will use their refund for this purpose.
More info
 


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Fast Facts

Calif. median home price: February 2015:

  • California: $446,460
  • Calif. highest median home price by region/county: San Francisco, $1,437,500
  • Calif. lowest median home price by region/county: Siskiyou and Tehama, $175,000

Calif. Pending Home Sales Index
C.A.R.'s Pending Home Sales Index decreased 0.4 percent from 121.4 in February 2015 to 120.9 in February 2016, based on signed contracts.

Calif. Traditional Housing Affordability Index: Fourth Quarter 2015: 30 percent

Mortgage rates: Week ending 4/7/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.59% fees/points: 0.5% 
  • 15-yr. fixed: 2.88% fees/points: 0.4%

 

Connect with us
FacebookLinkedInTwitterYouTube

 

 

C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. C.A.R. does not in any way endorse or sponsor any product or service or vendor mentioned herein unless expressly stated.

EDITED BY: Mary Belongia

​  

             

 

Copyright © 2016 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

​4/6/2016​


CALIFORNIA ASSOCIATION OF REALTORS

C.A.R. Newsline

Table of contents

»

HUD Tells Landlords to Give Ex-Cons a Chance

»

Webinar: Unlock Down Payment Assistance for Your Clients

»

C.A.R. Launches Consumer Ad Campaign

»

CalHFA Expands Loan Program

»

First Mortgage Origination Balances Increased in 2015

»

Additional stories

 

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C.A.R. Launches Consumer Ad Campaign
On Monday, April 4, C.A.R. launched its
annual consumer advertising campaign, which illustrates the value REALTORS® provide not only to home buyers and sellers, but also the community at large. Specifically, the campaign connects the dots between REALTORS® and local businesses.

Campaign highlights include:

  • Media partnerships with NBC, HGTV, Bravo, and iHeartRadio
  • More than 1200 TV spots on for 14 weeks during the industry’s peak season
  • At least 310 spots featuring 30-second vignettes with HGTV host and REALTOR® Egypt Sherrod    Over 1600 radio spots over 14 weeks
  • More than 26 million online impressions over 14 weeks
  • Friday afternoon drive-time in four key radio markets: Los Angeles, San Diego, San Francisco, and Sacramento.
  • Online presence on REALTOR.com®, Hulu, Google and Curbed.com as well as local news sites such as NBCLosAngeles.com, NBCBayArea.com, NBCSanDiego.com and KCRA.com (including rich media and strategic placement in Open House channel)
  • New content on the consumer site Champions of Home
  • New REALTOR® tools to create custom marketing content to share with clients and prospective clients through social media, email, newsletters and more.

Coming soon, information about where you can take your photo with C.A.R.’s popular “Who’s Your REALTOR®” block letters and the brand-new real estate-centric emoji keyboard. Both of these tools are extensions of the advertising campaign and can be utilized in your own marketing.
More info 

 

First Mortgage Origination Balances Increased in 2015
The total balance of new first mortgages originated in 2015 increased 42.9 percent year over year, according to data from the March 2016 Equifax National Consumer Credit Trends Report. Meanwhile, the total number of new first mortgages originated in that same time was 7.71 million, an increase of 31.6 percent.

Additional highlights from the report regarding home equity installment loans include:

  • The total number of new home equity installment loans originated in 2015 increased 26.7 percent compared with 2014.   
  • The total number of new loans originated 2015 was the highest level in more than seven years, while in that same time, 2014-2015 showed the third-highest percentage increase, for a calendar year since 2008.
  • There were more than 83,000 new loans originated for borrowers with subprime credit in 2015, a year-over-year increase of 31.2 percent. In that same time, the total balance of new loans was $1.73 billion, an increase of 6.5 percent.
  • In 2015, 10.5 percent of all loans were issued to subprime-credit borrowers, a slight increase from the previous year's share (10.1 percent).

 

Many homeowners are ready to remodel
Nearly 30 percent (28 percent) of U.S. homeowners have plans to remodel, expand, or otherwise improve their homes in the next 12 months, according to the latest Bankrate Money Pulse survey. Millennial homeowners are the most likely age group to indicate they have plans to make home improvements.

As home prices plummeted and access to home equity vanished during the last recession, Americans cut back on their home improvement projects. But the remodeling market has rebounded in recent years. By one measure, called the Leading Indicator of Remodeling Activity, or LIRA, annual home improvement spending in nominal terms is expected to set a record in 2016.

An increase in discretionary remodeling helped drive spending up 5.3% in the 4th quarter of 2015, higher than the historical trend. That means more homeowners are tackling larger projects like bathroom or kitchen renovations.

Credit both a healthier economy and an improved real estate market, which has allowed people to buy and then fix a home, while others have decided to stay put and finally tackle projects they put off during the recession.
More info

 

HUD Tells Landlords to Give Ex-Cons a Chance
Private landlords cannot implement blanket bans on would-be renters with an arrest or criminal record. If so, they are in violation of the Fair Housing Act and can face penalties or a lawsuit for discrimination, according to the Department of Housing and Urban Development.

HUD Secretary Julián Castro issued guidance on Monday, April 4, 2016, about how fair housing laws apply to those with criminal records. While the group is not explicitly protected by the Fair Housing Act, there are certain circumstances that landlords must follow when screening possible tenants.

When an applicant has a conviction, property owners must prove that the exclusion is justified, HUD notes.

The guidance emphasizes to landlords that “blanket bans” are illegal. HUD says that landlords may need to revise their screening policies in light of the new guidance.
More info


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Webinar: Unlock Down Payment Assistance for Your Clients
C.A.R.’s Finance Helpline is hosting another “Back to Basics” webinar on Wednesday, April 20, 12 noon – 1 p.m.

In this webinar, Sean Moss, senior vice president and director of operations and customer support at Down Payment Resource, will explain everything REALTORS® need to know about the 400+ down payment assistance programs available in the state of California.

Attendees will discover how to utilize this free member benefit with their clients. The webinar will cover eligibility requirements, features of the programs, benefits of the programs and much more.
Register today


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CalHFA Expands Loan Program
The California Housing Finance Agency announced a program change that will help more California households qualify for CalHFA Conventional mortgages.

Currently, families who earn up to 120 percent of their county's median income could be eligible for CalHFA loans, although home prices in many communities throughout California still exceed what the median income household can afford. To address this problem, CalHFA has identified 35 California counties that have the greatest disparity between housing costs and household incomes. The maximum qualifying income in these counties has been raised to 140 percent of the median.

With the increase in income limits, thousands of additional households across the 35 high-cost counties may now be eligible for a mortgage.
More info


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Home Prices Increase Year Over Year in February 2016
Home prices nationwide, including distressed sales, increased 6.8 percent year over year in February and increased 1.1 percent month over month, according to CoreLogic’s February Home Price Index.

CoreLogic’s  HPI Forecast indicates that home prices will increase 5.2 percent on a year-over-year basis from February 2016 to February 2017, and on a month-over-month basis home prices are expected to increase 0.6 percent from February 2016 to March 2016. 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.
More info
 


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HUD Kicks Off Fair Housing Month
The U.S. Department of Housing and Urban Development (HUD) kicked off Fair Housing Month 2016 with the launch of a new national media campaign that helps the public to envision what communities with shared opportunity for all might look like. The new campaign is designed to further educate the public about their housing rights and the ideals behind HUD’s new Affirmatively Furthering Fair Housing (AFFH) initiative.

The campaign, which was developed in partnership with the National Fair Housing Alliance (NFHA), will include print Public Service Announcements (PSAs) in various languages, television PSAs in English and Spanish, online videos, and social media outreach.

Every April, HUD, local communities, fair housing advocates, and fair housing organizations across the country commemorate Fair Housing Month by hosting a variety of activities that enhance Americans’ awareness of their fair housing rights, highlight HUD’s fair housing enforcement efforts, and emphasize the importance of ending housing discrimination.
More info

 

Fast Facts

Calif. median home price: February 2015:

  • California: $446,460
  • Calif. highest median home price by region/county: San Francisco, $1,437,500
  • Calif. lowest median home price by region/county: Siskiyou and Tehama, $175,000

Calif. Pending Home Sales Index
C.A.R.'s Pending Home Sales Index decreased 0.4 percent from 121.4 in February 2015 to 120.9 in February 2016, based on signed contracts.

Calif. Traditional Housing Affordability Index: Third Quarter 2015: 29 percent

Mortgage rates: Week ending 3/31/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.71% fees/points: 0.5% 
  • 15-yr. fixed: 2.98% fees/points: 0.4%

 

Connect with us
FacebookLinkedInTwitterYouTube

 

 


C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. C.A.R. does not in any way endorse or sponsor any product or service or vendor mentioned herein unless expressly stated.

EDITED BY: Mary Belongia

Copyright © 2016 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

​3/23/2016​


CALIFORNIA ASSOCIATION OF REALTORS

C.A.R. Newsline

Table of contents

»

Scammers Phish for Mortgage Closing Costs

»

California Pending Sales Continue Decline

»

Study Finds Cognitive Decline Impacts Housing Behavior of Older Americans

»

New Home Sales Rise in February

»

Rising Home Prices Causing Homebuyer Gridlock

»

Additional stories

 

-----------------

 

Study Finds Cognitive Decline Impacts Housing Behavior of Older Americans
There is a strong correlation between housing behavior and the cognitive decline of older Americans, according to a report by the Mortgage Bankers Association's (MBA) Research Institute for Housing America (RIHA). Of note is that normal cognitive aging also correlates to a potential borrower's ability to make decisions relating to their own housing and financial situation.

Key findings from the report include:

  • Nearly 30 percent (28 percent) of homeowners and 36 percent of renters aged 65 and older in 2012 rated themselves as having a fair or poor memory.
  • Seven percent of homeowners and 16 percent of renters aged 65 and older in 2012 self-reported a medical diagnosis of memory disease.
  • For older homeowners, memory and cognition hold relatively stable until the late 70s, then decline fairly rapidly. 
  • Likewise, the incidence of memory disease rises steadily with age.  By age 90, about 20 percent of older homeowners suffer from memory disease.
  • Typical declines in memory and cognition are associated with substantial increases in difficulty with managing money; a new diagnosis of memory disease, in particular, is associated with very large increases in such difficulty.
  • A new diagnosis of memory disease is associated with large changes homeownership and shared living arrangements; typical declines in memory and cognition are associated with small to modest changes in these domains.
  • Declines in memory and cognition are associated with an increase in mortgage delinquency, especially for older women.

More info

 

Rising Home Prices Causing Homebuyer Gridlock
Trulia’s new quarterly report, Trulia Inventory and Price Watch, found that inventory remains tight and affordability continues to worsen. The number of starter and trade-up homes on the market nationwide has dropped 43.6 percent and 41 percent, respectively. Meanwhile, buyers will need to spend between 2-6 percent more of their income towards a home purchase than in 2012. In turn, this builds a higher barrier to entry for first-time buyers to become homeowners, and for existing homeowners to trade up – thus creating gridlock between housing segments.

Since 2012, the number of starter homes has decreased in 95 of the 100 largest U.S. metros. Housing markets in the South and West experienced the biggest drops.

Strong job growth, tight inventory, and rising prices in California have led to the largest drop in starter-home affordability in the nation during the period covered. The report found that starter-home buyers in Oakland would have to spend nearly 70 percent of their median income to afford a 30-year fixed rate mortgage on a starter home, which is 29 percent more of their income than in 2012. Meanwhile, affordable starter homes are non-existent in San Francisco. As a result, buyers are increasingly looking down the housing ladder. Trade-up buyers are turning their attention to smaller, less expensive homes in the starter home category, thus inflating prices past what's affordable for true starter-home buyers.
More info

 

Fast Facts

Calif. median home price: February 2015:

  • California: $446,460
  • Calif. highest median home price by region/county: San Francisco, $1,437,500
  • Calif. lowest median home price by region/county: Siskiyou and Tehama, $175,000

Calif. Pending Home Sales Index
C.A.R.'s Pending Home Sales Index decreased 0.4 percent from 121.4 in February 2015 to 120.9 in February 2016, based on signed contracts.

Calif. Traditional Housing Affordability Index: Third Quarter 2015: 29 percent

Mortgage rates: Week ending 3/10/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.73% fees/points: 0.5% 
  • 15-yr. fixed: 2.99% fees/points: 0.4%

Scammers Phish for Mortgage Closing Costs
The Federal Trade Commission and the NATIONAL ASSOCIATION OF REALTORS® are warning home buyers about an email and money wiring scam. Hackers have been breaking into some consumers’ and real estate professionals’ email accounts to get information about upcoming real estate transactions. After figuring out the closing dates, the hacker sends an email to the buyer, posing as the real estate professional or title company. The bogus email says there has been a last minute change to the wiring instructions, and tells the buyer to wire closing costs to a different account. But it’s the scammer’s account. If the buyer takes the bait, their bank account could be cleared out in a matter of minutes.
More info


- - - - - - -

California Pending Sales Continue Decline
Low inventories and eroding affordability coupled with financial market volatility contributed to a second consecutive month of year-over-year declines for pending home sales statewide, according to C.A.R.’s February pending home sales report.

Statewide pending home sales fell in February on an annual basis, with the Pending Home Sales Index decreasing 0.4 percent from 121.4 in February 2015 to 120.9 in February 2016, based on signed contracts.

On a monthly basis, California pending home sales increased 26.4 percent from January, well above the long-run average increase of 15.9 percent typically registered from January to February based on data collected between 2009 and 2015. Even after adjusting for typical seasonal factors, pending sales still rose 6.3 percent over January despite remaining below February 2015 levels.

C.A.R.’s 2016 housing market forecast, released in October 2015, calls for a slightly slower pace of sales growth in 2016 than California experienced last year. Current pending sales figures suggest that tight inventories could begin to weigh more heavily on sales in coming months.
More info


- - - - - - -

New Home Sales Rise in February
Sales of new single-family houses rose 2 percent year over year in February to a rate of 512,000 according to estimates released jointly by the U.S. Census Bureau and the Dept. of Housing and Urban Development. On a monthly basis, sales declined 6.1 percent.

The median sales price of new houses sold in February was $301,400; the average sales price was $348,900.
More info


- - - - - - -

Survey Underscores Need for More Single-family Home Construction
Over three-quarters of surveyed households would purchase a single-family home if they were to buy in the next six months, and 79 percent of renters would choose to buy outside of an urban area, according to the second installment of the NATIONAL ASSOCIATION OF REALTORS®’ new quarterly consumer survey. The survey also found that confidence about now being a good time to buy is waning amongst renters, particularly in the West – where prices have solidly risen.

In NAR’s most-recent Housing Opportunities and Market Experience (HOME) survey, respondents were asked about their confidence in the U.S. economy and various questions about their housing expectations and preferences, including a question on if they were to purchase a house in the next six months, what type of home and in what area would they choose to buy.

The survey data reveals an overwhelming consumer preference for single-family homes in suburban areas. Most current homeowners (85 percent) and 75 percent of renters said they would purchase a single-family home, while only 15 percent of homeowners and 21 percent of renters said that would buy in an urban area.
More info
 

- - - - - - -

 

Existing-Home Sales Fizzle in February
After increasing to the highest annual rate in six months, existing-home sales tumbled in February amidst unshakably low supply levels and steadfast price growth in several sections of the country, according to the NATIONAL ASSOCIATION OF REALTORS®.

Total existing-home sales declined 7.1 percent to a seasonally adjusted annual rate of 5.08 million in February from 5.47 million in January. Despite last month's large decline, sales are still 2.2 percent higher than a year ago. 

The median existing-home price for all housing types in February was $210,800, up 4.4 percent from February 2015 ($201,900). February's price increase marks the 48th consecutive month of year-over-year gains.

Total housing inventory at the end of February increased 3.3 percent to 1.88 million existing homes available for sale, but is still 1.1 percent lower than a year ago (1.90 million). Unsold inventory is at a 4.4-month supply at the current sales pace, up from 4.0 months in January.
More info

 

Connect with us
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C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. C.A.R. does not in any way endorse or sponsor any product or service or vendor mentioned herein unless expressly stated.

EDITED BY: Mary Belongia           

Copyright © 2016 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

​3/23/2016​

<![if !vml]>CALIFORNIA ASSOCIATION OF REALTORS<![endif]>

<![if !vml]>CALIFORNIA ASSOCIATION OF REALTORS<![endif]>

C.A.R. Newsline

Table of contents

»

Scammers Phish for Mortgage Closing Costs

»

California Pending Sales Continue Decline

»

Study Finds Cognitive Decline Impacts Housing Behavior of Older Americans

»

New Home Sales Rise in February

»

Rising Home Prices Causing Homebuyer Gridlock

»

Additional stories

 

-----------------

 

Study Finds Cognitive Decline Impacts Housing Behavior of Older Americans
There is a strong correlation between housing behavior and the cognitive decline of older Americans, according to a report by the Mortgage Bankers Association's (MBA) Research Institute for Housing America (RIHA). Of note is that normal cognitive aging also correlates to a potential borrower's ability to make decisions relating to their own housing and financial situation.

Key findings from the report include:

  • Nearly 30 percent (28 percent) of homeowners and 36 percent of renters aged 65 and older in 2012 rated themselves as having a fair or poor memory.
  • Seven percent of homeowners and 16 percent of renters aged 65 and older in 2012 self-reported a medical diagnosis of memory disease.
  • For older homeowners, memory and cognition hold relatively stable until the late 70s, then decline fairly rapidly. 
  • Likewise, the incidence of memory disease rises steadily with age.  By age 90, about 20 percent of older homeowners suffer from memory disease.
  • Typical declines in memory and cognition are associated with substantial increases in difficulty with managing money; a new diagnosis of memory disease, in particular, is associated with very large increases in such difficulty.
  • A new diagnosis of memory disease is associated with large changes homeownership and shared living arrangements; typical declines in memory and cognition are associated with small to modest changes in these domains.
  • Declines in memory and cognition are associated with an increase in mortgage delinquency, especially for older women.

More info

 

Rising Home Prices Causing Homebuyer Gridlock
Trulia’s new quarterly report, Trulia Inventory and Price Watch, found that inventory remains tight and affordability continues to worsen. The number of starter and trade-up homes on the market nationwide has dropped 43.6 percent and 41 percent, respectively. Meanwhile, buyers will need to spend between 2-6 percent more of their income towards a home purchase than in 2012. In turn, this builds a higher barrier to entry for first-time buyers to become homeowners, and for existing homeowners to trade up – thus creating gridlock between housing segments.

Since 2012, the number of starter homes has decreased in 95 of the 100 largest U.S. metros. Housing markets in the South and West experienced the biggest drops.

Strong job growth, tight inventory, and rising prices in California have led to the largest drop in starter-home affordability in the nation during the period covered. The report found that starter-home buyers in Oakland would have to spend nearly 70 percent of their median income to afford a 30-year fixed rate mortgage on a starter home, which is 29 percent more of their income than in 2012. Meanwhile, affordable starter homes are non-existent in San Francisco. As a result, buyers are increasingly looking down the housing ladder. Trade-up buyers are turning their attention to smaller, less expensive homes in the starter home category, thus inflating prices past what's affordable for true starter-home buyers.
More info

 

Fast Facts

Calif. median home price: February 2015:

  • California: $446,460
  • Calif. highest median home price by region/county: San Francisco, $1,437,500
  • Calif. lowest median home price by region/county: Siskiyou and Tehama, $175,000

Calif. Pending Home Sales Index
C.A.R.'s Pending Home Sales Index decreased 0.4 percent from 121.4 in February 2015 to 120.9 in February 2016, based on signed contracts.

Calif. Traditional Housing Affordability Index: Third Quarter 2015: 29 percent

Mortgage rates: Week ending 3/10/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.73% fees/points: 0.5% 
  • 15-yr. fixed: 2.99% fees/points: 0.4%

Scammers Phish for Mortgage Closing Costs
The Federal Trade Commission and the NATIONAL ASSOCIATION OF REALTORS® are warning home buyers about an email and money wiring scam. Hackers have been breaking into some consumers’ and real estate professionals’ email accounts to get information about upcoming real estate transactions. After figuring out the closing dates, the hacker sends an email to the buyer, posing as the real estate professional or title company. The bogus email says there has been a last minute change to the wiring instructions, and tells the buyer to wire closing costs to a different account. But it’s the scammer’s account. If the buyer takes the bait, their bank account could be cleared out in a matter of minutes.
More info


- - - - - - -

California Pending Sales Continue Decline
Low inventories and eroding affordability coupled with financial market volatility contributed to a second consecutive month of year-over-year declines for pending home sales statewide, according to C.A.R.’s February pending home sales report.

Statewide pending home sales fell in February on an annual basis, with the Pending Home Sales Index decreasing 0.4 percent from 121.4 in February 2015 to 120.9 in February 2016, based on signed contracts.

On a monthly basis, California pending home sales increased 26.4 percent from January, well above the long-run average increase of 15.9 percent typically registered from January to February based on data collected between 2009 and 2015. Even after adjusting for typical seasonal factors, pending sales still rose 6.3 percent over January despite remaining below February 2015 levels.

C.A.R.’s 2016 housing market forecast, released in October 2015, calls for a slightly slower pace of sales growth in 2016 than California experienced last year. Current pending sales figures suggest that tight inventories could begin to weigh more heavily on sales in coming months.
More info


- - - - - - -

New Home Sales Rise in February
Sales of new single-family houses rose 2 percent year over year in February to a rate of 512,000 according to estimates released jointly by the U.S. Census Bureau and the Dept. of Housing and Urban Development. On a monthly basis, sales declined 6.1 percent.

The median sales price of new houses sold in February was $301,400; the average sales price was $348,900.
More info


- - - - - - -

Survey Underscores Need for More Single-family Home Construction
Over three-quarters of surveyed households would purchase a single-family home if they were to buy in the next six months, and 79 percent of renters would choose to buy outside of an urban area, according to the second installment of the NATIONAL ASSOCIATION OF REALTORS®’ new quarterly consumer survey. The survey also found that confidence about now being a good time to buy is waning amongst renters, particularly in the West – where prices have solidly risen.

In NAR’s most-recent Housing Opportunities and Market Experience (HOME) survey, respondents were asked about their confidence in the U.S. economy and various questions about their housing expectations and preferences, including a question on if they were to purchase a house in the next six months, what type of home and in what area would they choose to buy.

The survey data reveals an overwhelming consumer preference for single-family homes in suburban areas. Most current homeowners (85 percent) and 75 percent of renters said they would purchase a single-family home, while only 15 percent of homeowners and 21 percent of renters said that would buy in an urban area.
More info
 

- - - - - - -

 

Existing-Home Sales Fizzle in February
After increasing to the highest annual rate in six months, existing-home sales tumbled in February amidst unshakably low supply levels and steadfast price growth in several sections of the country, according to the NATIONAL ASSOCIATION OF REALTORS®.

Total existing-home sales declined 7.1 percent to a seasonally adjusted annual rate of 5.08 million in February from 5.47 million in January. Despite last month's large decline, sales are still 2.2 percent higher than a year ago. 

The median existing-home price for all housing types in February was $210,800, up 4.4 percent from February 2015 ($201,900). February's price increase marks the 48th consecutive month of year-over-year gains.

Total housing inventory at the end of February increased 3.3 percent to 1.88 million existing homes available for sale, but is still 1.1 percent lower than a year ago (1.90 million). Unsold inventory is at a 4.4-month supply at the current sales pace, up from 4.0 months in January.
More info

 

Connect with us
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C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. C.A.R. does not in any way endorse or sponsor any product or service or vendor mentioned herein unless expressly stated.

EDITED BY: Mary Belongia           

Copyright © 2016 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

<![if !vml]>Powered By Blackbaud<![endif]>

​3/16/2016​

​​

​​


CALIFORNIA ASSOCIATION OF REALTORS


CALIFORNIA ASSOCIATION OF REALTORS

C.A.R. Newsline

Table of contents

»

Hispanic Homeownership Surges

»

Building Permits, Housing Starts Rise

»

California Home Sales Gain Steam in February

»

Legislative Day Video Contest

»

More Than Half of Renters Plan to Keep Renting

»

Additional stories

 

-----------------

 

California Home Sales Gain Steam in February
Moderating home price appreciation and improving housing inventory combined to spur California’s housing market in February as existing home sales increased from both the previous month and year, C.A.R. said today.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 393,360 units in February, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.

The February figure was up 2.6 percent from the revised 383,480 level in January and up 6.4 percent compared with home sales in February 2015 of a revised 369,630. February’s sales level was below the 400,000 level for the second straight month.

After accelerating for five straight months, the median price of an existing, single-family detached California home fell 4.7 percent in February to $446,460 from $468,330 in January. February’s median price was 3.8 percent higher than the revised $429,930 recorded in February 2015.
More info

 

More Than Half of Renters Plan to Keep Renting
Despite rent increases and feeling burdened by their finances, 70 percent of renters currently feel renting is a more affordable choice than homeownership, according to a Freddie Mac survey, and 55 percent plan to keep renting in the next three years.

For the Freddie Mac quarterly online survey of renters conducted in January and February 2016, 46 percent say renting is a good choice for them now regardless of whether they plan to buy or believe they will be able to afford to do so.

Many renters who plan to buy in the next three years still indicate they have financial hurdles to overcome which include:
•    Affording a down payment (36 percent)
•    Not a good enough credit history (35 percent)
•    Not making enough money (30 percent)
•    Carrying too much debt (23 percent)
More info

 

One Million U.S. Borrowers Regained Equity in 2015
Corelogic recently released a new analysis showing 1 million borrowers regained equity in 2015, bringing the total number of mortgaged residential properties with equity at the end of Q4 2015 to approximately 46.3 million, or 91.5 percent of all mortgaged properties. Nationwide, borrower equity increased year over year by $682 billion in Q4 2015. The CoreLogic analysis also indicates approximately 120,000 properties lost equity in the fourth quarter of 2015 compared to the third quarter of 2015.

The total number of mortgaged residential properties with negative equity stood at 4.3 million, or 8.5 percent, in Q4 2015. This is an increase of 2.9 percent quarter over quarter from 4.2 million homes, or 8.3 percent, in Q3 2015 and a decrease of 19.1 percent year over year from 5.3 million homes, or 10.7 percent, compared with Q4 2014.

For the homes in negative equity status, the national aggregate value of negative equity was $311 billion at the end of Q4 2015, increasing approximately $5.5 billion, or 1.8 percent, from $305.5 billion in Q3 2015. On a year-over-year basis, the value of negative equity declined overall from $348 billion in Q4 2014, representing a decrease of 10.7 percent in 12 months. 
More info

 

Fast Facts

Calif. median home price: February 2015:

  • California: $446,460
  • Calif. highest median home price by region/county: San Francisco, $1,437,500
  • Calif. lowest median home price by region/county: Siskiyou and Tehama, $175,000

Calif. Pending Home Sales Index
C.A.R.'s Pending Home Sales Index (PHSI) decreased 2.9 percent from 98.5 in January 2015 to 95.6 in January 2016, based on signed contracts.

Calif. Traditional Housing Affordability Index: Third Quarter 2015: 29 percent

Mortgage rates: Week ending 3/10/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.68% fees/points: 0.5% 
  • 15-yr. fixed: 2.96% fees/points: 0.5%

Hispanic Homeownership Surges
The Hispanic Wealth Project, in collaboration with the National Association of Hispanic Real Estate Professionals (NAHREP), revealed data in their State of Hispanic Homeownership Report that shows an increase in both Hispanic homeownership rates and in the number of owner Hispanic households while overall U.S. homeownership rates have declined for the 12th consecutive year.

In addition, the report showed that Latinos also led the nation in workforce participation and household formation growth which indicates that Hispanics will likely be the primary driver of new homeowners for the next decade and beyond.
More info


- - - - - - -

Building Permits, Housing Starts Rise
Building permits rose 6.3 percent in February to a seasonally adjusted annual rate of 1,167,000, according to a joint announcement from the U.S. Census Bureau and the Dept. of Housing and Urban Development. On a month-over-month basis, building permits declined 3.1 percent.

Privately owned housing starts rose 7.2 percent in February at a rate of 822,000 compared with January's figure of 767,000.
More info


- - - - - - -

Legislative Day Video Contest
C.A.R. wants to hear why YOU think it’s important to attend Legislative Day on April 27 in Sacramento.  Just post a short video of 60 seconds or less to C.A.R.’s Facebook page between March 14 and April 22 to enter.

The poster of the video with the most “likes” will get a very cool REALTOR® Party travel coffee mug. Be sure to “like” C.A.R.’s page and use the hashtag #CARLegDay16 in your update.
More information and official rules


- - - - - - -

Join CCIM for Working with International Investors
Wednesday, March 23, 1 p.m. - 5 p.m.
Beverly Wilshire

C.A.R. encourages its members to register and attend a four-hour classroom seminar about working with international investors. The seminar is being offered by CCIM and provides U.S.-based real estate practitioners, developers, asset managers, bankers, attorneys, CPAs, and allied professionals with the keys to successfully do business with inbound commercial real estate investors.

Participants will learn how to:

  • Qualify inbound investment prospects
  • Discover investor motivations like EB-5
  • Navigate cultural and business differences
  • Monitor U.S. government regulations, including international taxpayer ID
  • Assess how currency fluctuations affect investment returns

More info
 


- - - - - - -

 

Report Reveals if It's Better to Own Near Target or Walmart
RealtyTrac recently analyzed home values for homes near Walmart and Target to determine which superstore gives homeowner the best returns.

The analysis determined that homeowners near a Target have experienced better home value appreciation since their purchase, but also pay more and have higher property taxes on average.

Among homeowners who sold in 2015, those near a Target saw an average 27 percent increase in home price since they purchased their home, which equates to an average price gain of $65,569, compared to 16 percent appreciation and an average price gain of $24,900 for homeowners near a Walmart. The average appreciation for all zip codes nationwide is 22 percent, while the average price gain is $40,626.

Homes near a Target also have a higher value on average: $307,286, 72 percent more than the $178,249 average value for homes near a Walmart. The average value of homes was $215,921 across all zip codes nationwide.
More info

 

Connect with us
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C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. C.A.R. does not in any way endorse or sponsor any product or service or vendor mentioned herein unless expressly stated.

EDITED BY: Mary Belongia

Copyright © 2016 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

​3/9/2016​


CALIFORNIA ASSOCIATION OF REALTORS

C.A.R. Newsline

Table of contents

»

Difference Between Owner Expectation and Appraised Value Widens

»

Foreclosure Inventory Declines in January

»

Home Purchase Sentiment Index Increases

»

Millennials Increasingly Buying in Suburban Areas

»

How Are Disruptors and Pretenders Impacting Your Business?

»

Additional stories

 

-----------------

 

Home Purchase Sentiment Index Increases
Fannie Mae’s February 2016 Home Purchase Sentiment Index (HPSI) rose 1.2 percentage points in February to 82.7. More consumers reported Household Income growth in February compared to January, and fewer consumers expect mortgage rates to go up over the next 12 months. Overall, the HPSI is up 1.2 points since this time last year.

Highlights from the Index include:

  • The net share of respondents who say that it is a good time to buy a house rose 4 percentage points to 35 percent. Rebounding from last month’s all-time survey low, 63 percent of respondents now say it is a good time to buy a house.
  • The net percentage of those who say it is a good time to sell a house fell 2 percentage points to 7 percent.
  • The net share of respondents who say that home prices will go up fell 4 percentage points to 33 percent.
  • The net share of those who say mortgage interest rates will go down rose 2 percentage points to negative 50 percent this month, as fewer consumers say mortgage rates will go up.

 

Millennials Increasingly Buying in Suburban Areas
A growing share of homebuyers are millennials, and more of them are purchasing single-family homes outside of urban areas, according to the 2016 NATIONAL ASSOCIATION OF REALTORS® Home Buyer and Seller Generational Trends study, which evaluates the generational differences of recent home buyers and sellers.

The share of millennials buying in an urban or central city area decreased to 17 percent (21 percent a year ago) in this year’s survey, and fewer of them (10 percent) purchased a multifamily home compared to a year ago (15 percent). Overall, the majority of buyers in all generations continue to purchase a single-family home in a suburban area, and the younger the buyer, the older the home they purchased.

For the third straight year, the largest group of recent buyers were millennials, who composed 35 percent of all buyers (32 percent in 2014), more than the combined amount of younger and older boomers (31 percent). Generation X were 26 percent of buyers, and the Silent Generation made up 9 percent.
More info

 

Fast Facts

Calif. median home price: January California 2015:

  • California: $468,330
  • Calif. highest median home price by region/county: San Francisco, $1,173,610
  • Calif. lowest median home price by region/county: Del Norte, $156,670

Calif. Pending Home Sales Index
C.A.R.'s Pending Home Sales Index (PHSI) decreased 2.9 percent from 98.5 in January 2015 to 95.6 in January 2016, based on signed contracts.

Calif. Traditional Housing Affordability Index: Third Quarter 2015: 29 percent

Mortgage rates: Week ending 3/3/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.64% fees/points: 0.5% 
  • 15-yr. fixed: 2.94% fees/points: 0.5%

Difference Between Owner Expectation and Appraised Value Widens
Home appraisals were an average of 1.99 percent lower than what homeowners expected in February, according to Quicken Loans’ Home Price Perception Index (HPPI). The study compares actual appraised values to what refinancing homeowners estimated their home was worth at the beginning of the mortgage process. February brings a reversal to the previous five-month trend of a narrowing gap between the two data points.

Home values showed continued growth in February, making up for the slight dip in January. Nationally, appraised values increased an average of 1.51 percent according to the Quicken Loans Home Value Index (HVI) – the only measure of home values based solely on appraisals. The index has increased 3.89 percent when compared to February 2015.

The areas where appraisers valued homes higher than homeowners estimated were largely found in the West. San Jose leads the group, with appraisals 4.35 percent higher than expected. On the other side of the spectrum, appraised values were 3.64 percent lower than homeowners expected in Philadelphia.
More info


- - - - - - -

Foreclosure Inventory Declines in January
CoreLogic released its January 2016 National Foreclosure Report which shows foreclosure inventory declined 21.7 percent and completed foreclosures declined 16.2 percent compared with January 2015. The number of completed foreclosures nationwide decreased year over year from 46,000 in January 2015 to 38,000 in January 2016. The number of completed foreclosures in January 2016 was down 67.6 percent from the peak of 117,743 in September 2010.

As of January 2016, the national foreclosure inventory included approximately 456,000, or 1.2 percent, of all homes with a mortgage compared with 583,000 homes, or 1.5 percent, in January 2015. The January 2016 foreclosure inventory rate has been steady at 1.2 percent since October of 2015 and is the lowest for any month since November 2007. 

CoreLogic also reports that the number of mortgages in serious delinquency (defined as 90 days or more past due, including loans in foreclosure or REO) declined 22.5 percent from January 2015 to January 2016, with 1.2 million mortgages, or 3.2 percent, in this category. The January 2016 serious delinquency rate is the lowest in eight years, since November 2007.
More info


- - - - - - -

How Are Disruptors and Pretenders Impacting Your Business?
C.A.R. CEO Joel Singer will address how disruptors and pretenders are impacting real estate at the mid-year luncheon in Sacramento on Thursday, April 28, 2016. He will discuss how competition is not only between REALTORS® but extends industry-wide with new brokerage models, online portals such as Zillow, Trulia, and realtor.com, and with tech companies promising to automate the real estate process from top to bottom. Register now to hear how these new business models are competing for real estate market share, how it might change your future, and how they are already impacting the way you do business.
 
Get your tickets now and take advantage of early bird ticket pricing. Tickets are only $60, but prices will go up soon so register now and save! 


- - - - - - -

Negative Equity Continues to Weigh Down Housing Markets
Fewer homeowners were underwater as the negative equity rate fell to 13.1 percent in the United States, according to the fourth quarter Zillow Negative Equity Report. But more than 820,000 underwater homeowners still owe more than twice as much on their mortgages as their homes are worth, a reminder that some owners may not see positive equity in their homes in the foreseeable future.

In the past year, millions of underwater homeowners resurfaced as the total amount of negative equity declined by $75 billion, but some owners are so far underwater that positive equity may be several years away, leaving them stuck in their homes unable to sell.

Las Vegas, ground zero of the housing crash, still had the highest rate of negative equity at 20.9 percent, followed closely by Chicago, where 20.5 percent of homeowners were upside down on their mortgages. In San Jose, Calif. only 2.8 percent of mortgaged homeowners were underwater.
More info
 


- - - - - - -

 

 

 

Connect with us
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C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. C.A.R. does not in any way endorse or sponsor any product or service or vendor mentioned herein unless expressly stated.

EDITED BY: Mary Belongia 

Copyright © 2016 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)


Powered By Blackbaud

​3/2/2016​


CALIFORNIA ASSOCIATION OF REALTORS


CALIFORNIA ASSOCIATION OF REALTORS

C.A.R. Newsline

Table of contents

»

Study Reveals Boomer Generation Housing Preferences

»

High Rent Cited as Reason for Buying

»

How Are Disruptors and Pretenders Impacting Your Business?

»

U.S. Home Price Report Shows Home Prices Up

»

Renew Your zipForm® Account by March 31

»

Additional stories

 

-----------------

 

How Are Disruptors and Pretenders Impacting Your Business?
C.A.R. CEO Joel Singer will address how disruptors and pretenders are impacting real estate at the mid-year luncheon in Sacramento on Thursday, April 28, 2016. He will discuss how competition is not only between REALTORS® but extends industry-wide with new brokerage models, online portals such as Zillow, Trulia, and realtor.com, and with tech companies promising to automate the real estate process from top to bottom.

 

Register now to hear how these new business models are competing for real estate market share, how it might change your future, and how they are already impacting the way you do business.
 
Get your tickets now and take advantage of early bird ticket pricing. Tickets are only $60, but prices will go up soon so register now and save!  

 

Renew Your zipForm® Account by March 31
Every March, C.A.R. members are required to renew their zipForm® account. The software will automatically prompt you to renew beginning March 1.

Once you have renewed your account for the upcoming year, you will not receive another prompt.

Avoid service interruption and renew your zipForm® account today!
More info

 

Data Reveals Best Window to Sell Homes Faster and for the Highest Price
New data released by Zillow shows that, nationally, homes sold in late spring (May 1 through May 15), sell around 18.5 days faster and for 1 percent more than the average listing. The optimal listing window, according to Zillow, has shifted since Zillow's first analysis, likely because of low inventory in housing markets across the country. When Zillow conducted this analysis previously, there were nine percent more homes on the market, and homes listed between mid-March and mid-April sold fastest and for the highest price.

Local market variations and weather patterns make the buying season more volatile in some parts of the country. The markets with the largest sale differences between the best months and worst months to list are regions with distinct climate changes, such as Seattle, Minneapolis, and Washington D.C., making it more important for sellers in these regions to carefully consider the timeframe of their home sale. Sellers in Texas and California will find themselves with more flexibility in list timeframe, as these markets show little variation in sale price based on listing month.
More info

 

Fast Facts

Calif. median home price: January California 2015:

  • California: $468,330
  • Calif. highest median home price by region/county: San Francisco, $1,173,610
  • Calif. lowest median home price by region/county: Del Norte, $156,670

Calif. Pending Home Sales Index
C.A.R.'s Pending Home Sales Index (PHSI) decreased 2.9 percent from 98.5 in January 2015 to 95.6 in January 2016, based on signed contracts.

Calif. Traditional Housing Affordability Index: Third Quarter 2015: 29 percent

Mortgage rates: Week ending 2/25/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.62% fees/points: 0.6% 
  • 15-yr. fixed: 2.93% fees/points: 0.5%

Study Reveals Boomer Generation Housing Preferences
The National Association of Home Builders (NAHB) released the results of a survey detailing what baby boomers prefer in homes compared to other home buyers.

Highlights from the “Housing Preferences of the Boomer Generation: How They Compare to Other Hoe Buyers,” include:

  • The majority of all buyers (65 percent), and boomers in particular (63 percent), would like to buy a single-family detached home.
  • Most home buyers (64 percent) prefer a single-story home, but there is great variation by generation: Millennials (35 percent), gen Xers (49 percent), boomers (75 percent) and seniors (88 percent).
  • Fifty-eight percent of home buyers want a full or partial basement, but the preference declines with age: Millennials (77 percent), gen Xers (67 percent), boomers (50 percent) and seniors (43 percent).

More info


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High Rent Cited as Reason for Buying
One in four home buyers is looking to purchase because their rent is too high, according to a recent Redfin survey.

That’s up from one in five in November, and up from one in eight last August. In each survey, when Redfin asked buyers what most influenced their decision to buy, the only choice cited more frequently was a major life event, such as the birth of a child or a marriage.

But the grass isn’t always greener. While buyers continued to cite affordability as their top concern, inventory woes are gaining attention. Twenty percent of buyers worried there weren’t enough homes to choose from, up four percentage points from last quarter. And 16 percent of respondents said there was too much competition from other buyers, a five percentage point jump from last quarter.

More than half (53 percent) of buyers anticipated that home prices would increase soon, compared to only 48 percent of respondents in the previous survey. Among those anticipating price increases, 13 percent felt prices would rise significantly, compared with 10 percent in the previous survey.
More info


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U.S. Home Price Report Shows Home Prices Up 6.9 Percent
CoreLogic released its CoreLogic Home Price Index (HPI) and HPI Forecast data for January 2016 which shows home prices are up both year over year and month over month.

Home prices nationwide, including distressed sales, increased 6.9 percent year over year in January 2016 compared with January 2015 and increased 1.3 percent month over month in January 2016 compared with December 2015, according to the CoreLogic HPI.

The CoreLogic HPI Forecast indicates that home prices will increase 5.5 percent on a year-over-year basis from January 2016 to January 2017, and on a month-over-month basis home prices are expected to increase 0.5 percent from January 2016 to February 2016. 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.
More info


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Gov. Brown to Attend Legislative Day
Gov. Jerry Brown has accepted C.A.R.’s invitation to speak at this year’s Legislative Day on April 27 at the Sacramento Convention Center.

Every year, C.A.R. hosts Legislative Day as an opportunity for California REALTORS® to go to the Capitol, hear from the state’s top political leaders, learn more about issues affecting the real estate industry, network with other real estate professionals, and meet with their elected officials. Highlights of the day include the Morning Briefing where Speaker Atkins will speak, legislative office visits, and the Capitol Reception.

More info about Legislative Day.

To register for Legislative Day, please contact your local association of REALTORS®.
 


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C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. C.A.R. does not in any way endorse or sponsor any product or service or vendor mentioned herein unless expressly stated.

EDITED BY: Mary Belongia

Copyright © 2016 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)


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​2/24/2016​

​2/24/2016​


CALIFORNIA ASSOCIATION OF REALTORS

C.A.R. Newsline

Table of contents

»

Nearly Half of Homeowners Expect Equity Gains In 2016

»

Homeowners Express Strong Desire for Renovation Financing

»

California Pending Home Sales Take Breather in January

»

Home Prices Slightly Increased in December

»

Consumer Confidence Declines in February

»

Additional stories

 

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California Pending Home Sales Take Breather in January
Statewide pending home sales in California decreased in January on a year-over-year basis for the first time since August 2014 as a shortage of homes for sale and low housing affordability persist and volatile financial markets distract buyers C.A.R. said this week.

Statewide pending home sales fell in January on an annual basis, with the Pending Home Sales Index (PHSI)* decreasing 2.9 percent from 98.5 in January 2015 to 95.6 in January 2016, based on signed contracts.

On a monthly basis, California pending home sales rose from December, primarily due to seasonal factors. The PHSI increased 21.1 percent from an index of 79 in December to 95.6 in January.

At the regional level, pending sales also were lower on a year-over-year basis in all areas. All regions experienced double-digit, month-to-month increases in pending sales.
More info

 

Consumer Confidence Declines in February
The Conference Board Consumer Confidence Index, which had increased moderately in January, declined in February. The Index now stands at 92.2 (1985=100), down from 97.8 in January. The Present Situation Index declined from 116.6 to 112.1, while the Expectations Index decreased from 85.3 to 78.9 in February.

Consumers’ assessment of present-day conditions declined in February. The percentage saying business conditions were “good” decreased from 27.7 percent to 26.0 percent. Those saying business conditions are “bad” increased from 18.8 percent to 19.8 percent. Consumers’ appraisal of the labor market was also less positive. Those claiming jobs are “plentiful” decreased from 23.0 percent to 22.1 percent, while those claiming jobs are “hard to get” rose to 24.2 percent from 23.6 percent.
More info

 

NAR’s Green Alaska Seminar at Sea
Eco-friendly features typically increase home sales prices, especially those that shave a buyer’s costs to own a home.  Learn what you need to know to serve your clients while cruising the breathtaking beauty of Alaska’s Inside Passage for an experience of a lifetime.

This Sunday, Feb. 28, marks the end of the C.A.R. Education discounted price offer for the August 6th cruise on the Princess Crown.  Visit now before the price increases.   

 

U.S. Housing Market Continues Its Steady Comeback
Freddie Mac released its Multi-Indicator Market Index (MiMi) showing the U.S. housing market continuing to improve with two additional states -- Florida and Arizona -- entering their outer range of stable housing activity. The MiMi purchase applications indicator improved by nine percent in 2015, its best showing since September 2013.

The national MiMi value stands at 82.7, indicating a housing market that is on its outer range of stable housing activity, while showing an improvement of +0.51 percent from November to December and a three-month improvement of +1.70 percent. On a year-over-year basis, the national MiMi value has improved +7.65 percent. Since its all-time low in October 2010, the national MiMi has rebounded 40 percent, but remains significantly off from its high of 121.7.
More info

 

Fast Facts

Calif. median home price: January California 2015:

  • California: $468,330
  • Calif. highest median home price by region/county: San Francisco, $1,173,610
  • Calif. lowest median home price by region/county: Del Norte, $156,670

Calif. Pending Home Sales Index
Statewide pending home sales increased 8.3 percent from 71.9 in December 2014 to 77.9 in December 2015, based on signed contracts.

Calif. Traditional Housing Affordability Index: Third Quarter 2015: 29 percent

Mortgage rates: Week ending 2/18/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.65% fees/points: 0.5% 
  • 15-yr. fixed: 2.95% fees/points: 0.5%

Nearly Half of Homeowners Expect Equity Gains In 2016
Nearly half (46 percent) of all U.S. homeowners with a mortgage expect their equity will increase in 2016, even though three out of five (60 percent) report equity in their homes has already increased during the last three years of the housing recovery, according to new research conducted for loanDepot.

Of those who expect their equity to change this year, 85 percent expect it to rise as much as 10 percent, with a quarter (27 percent) expecting it to rise between 6 to 10 percent. More than half (58 percent) are expecting an equity bump between one and five percent. Industry-wide reports forecast 2016 annual price gains to range between 2.3 and 4.7 percent. Only 3 percent of homeowners expect their equity to fall in 2016, and 27 percent expect it to remain the same.
More info

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Homeowners Express Strong Desire for Renovation Financing
Rising property values are making homeowners more optimistic and ready to invest in their home again, according to recent research from TD Bank.

Among the roughly 1,350 homeowners surveyed nationally in late December and early January for TD Bank's first Home Equity Sentiment Index, 56 percent of respondents believe their home's value has increased, and 60 percent would tap the increased equity to finance renovations.

Highlights from the Home Equity Sentiment Index Survey include:

  • Renovations at the top of most consumers' lists include kitchens (42 percent), bathrooms (25 percent), and other household projects (11 percent).
  • Homeowners are attracted to HELOCs because the loans allow them to borrow as needed over time (32 percent) and provide greater flexibility for use of the loan (24 percent).
  • Interest rates are the biggest factor (57 percent) in choosing a HELOC, followed by trust in the lender (23 percent).

More info

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Home Prices Slightly Increased in December
S&P Dow Jones Indices released the latest results for the S&P/Case- Shiller Home Price Indices, showing that  home prices continued their rise across the country in December.

The S&P/Case-Shiller U.S. National Home Price Index, covering all nine U.S. census divisions, recorded a slightly higher year-over-year gain with a 5.4 percent annual increase in December 2015 versus a 5.2 percent increase in November 2015. The 10-City Composite increased 5.1 percent in the year to December compared to 5.2 percent previously. The 20-City Composite’s year-over-year gain was 5.7 percent, the same as November.

Portland, San Francisco, and Denver continue to report the highest year over year gains among the 20 cities with another month of double digit annual price increases. Portland led the way with an 11.4% year-over-year price increase, followed by San Francisco with 10.3 percent, and Denver with a 10.2 percent increase.
More info

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 Mortgage Foreclosures and Delinquencies Continue to Drop
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.
More info
 

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C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. C.A.R. does not in any way endorse or sponsor any product or service or vendor mentioned herein unless expressly stated.

EDITED BY: Mary Belongia

If you wish to update the email address to which this newsletter is sent, please do not reply to this email. EMAIL ADDRESS change requests must be directed to your local association.   

Copyright © 2016 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R)

​2/18/2016​


CALIFORNIA ASSOCIATION OF REALTORS

C.A.R. Newsline

Table of contents

»

Building Permits, Housing Starts Rise in January

»

ClientDIRECT® is Perfect for You

»

Mortgages More Likely to be Approved When It’s Sunny

»

California Home Sales Kick Off Year Higher in January

»

Home Sellers in 2015 Realized Biggest Price Gains Since 2007

»

Additional stories

 

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Mortgages More Likely to be Approved When It’s Sunny
A recent paper published by the Cleveland Fed found a strong link between sentiment influenced by weather and mortgage approvals.

As might be expected, positive sentiment, which emerges in sunnier weather, leads to higher credit approvals, while rainy-day moods result in tighter credit conditions.

Using the database of the National Oceanic and Atmospheric Administration, the researchers analyzed data in more than 2,000 U.S. counties from 1998 to 2010.

Sunny sentiment boosts approvals for credit applications 0.80 percent while approvals drop 1.41 percent on overcast days.

“Sentiment has a stronger effect on the approvals of applications by low-income and medium-income households, which require more judgment,” the paper notes. “In contrast, the effect of sentiment disappears when the decision is clear-cut and when pre-approvals are common – namely, for high-quality applications from households earning over $100,000 per year.”
More info

 

Home Sellers in 2015 Realized Biggest Price Gains Since 2007
RealtyTrac released its Year-End 2015 U.S. Home Sales Report, which shows that U.S. home sellers in 2015 realized an average price gain of 11 percent ($20,378) since purchase, the biggest average price gain for U.S. home sellers since 2007 — an eight-year high.

The 11 percent average price gain in 2015 marked the second consecutive year where U.S. home sellers realized an average price gain following six consecutive years where U.S. home sellers realized average price losses.

Among 155 U.S. counties analyzed for the report, those where 2015 home sellers realized the highest average price gains were San Mateo County, Calif., Alameda County, Calif., Santa Clara County, Calif., Middlesex County, New Jersey, and Multnomah County, Ore.
More info

 

Fast Facts

Calif. median home price: January California 2015:

  • California: $468,330
  • Calif. highest median home price by region/county: San Francisco, $1,173,610
  • Calif. lowest median home price by region/county: Del Norte, $156,670

Calif. Pending Home Sales Index
Statewide pending home sales increased 8.3 percent from 71.9 in December 2014 to 77.9 in December 2015, based on signed contracts.

Calif. Traditional Housing Affordability Index: Third Quarter 2015: 29 percent

Mortgage rates: Week ending 2/11/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.65% fees/points: 0.5% 
  • 15-yr. fixed: 2.95% fees/points: 0.5%

Building Permits, Housing Starts Rise in January
Permits for privately owned housing units increased 13.5 percent in January compared with the previous year. On a month-over-month basis, permits declined 0.2 percent, the U.S. Dept. of Housing and Urban Development and the Census Bureau reported. Seasonally adjusted, January’s annual rate stood at 1,202,000. Single-family authorizations were at a rate of 720,000, 1.6 percent below the revised December figure of 732,000.

On a seasonally adjusted annual basis, privately owned housing starts were 1.8 percent higher in January compared with January 2015, but 3.8 percent  below the revised December estimate of 1,143,000.
More info


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ClientDIRECT® is Perfect for You
Reliable. Attractive. Supportive. It’s your new ClientDIRECT®, a free, customizable newsletter from C.A.R. that keeps you connected with your clients. ClientDIRECT® is a turnkey, agent-branded online newsletter that gets automatically delivered to your clients every month. C.A.R. provides everything you need, including the content. Personalize your newsletter with your own contact information, a custom header and image, your latest listings, and custom articles, infographics, and more! Get started today; your clients will thank you for it.
More info


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California Home Sales Kick Off Year Higher in January
California existing home sales posted their best January performance in three years as year-over-year sales recovered from delayed escrow closings late last year caused by new loan disclosure rules, C.A.R. reported Wednesday.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 383,670 units in January, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide

The January figure was down 5.4 percent from the revised 405,760 level in December and up 8.8 percent compared with home sales in January 2015 of a revised 352,640. The January 2016 sales level was the highest since January 2013, when an annualized 421,780 homes were sold.

The median price of an existing, single-family detached California home fell 4.3 percent in January to $468,330 from $489,310 in December. January’s median price was 9.2 percent higher than the revised $428,980 recorded in January 2015.
More info


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Builder Confidence Falls in February
Builder confidence in the market for newly-built single-family homes fell three points to 58 in February from an upwardly revised January reading of 61 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).

Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as "good," "fair" or "poor." The survey also asks builders to rate traffic of prospective buyers as "high to very high," "average" or "low to very low." Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

The HMI component measuring sales expectations in the next six months rose one point to 65 in February. The index measuring current sales condition fell three points to 65 and the component charting buyer traffic dropped five points to 39.
More info
 


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HARP Refinances Total 3.38 Million Through Q4
The Federal Housing Finance Agency (FHFA) recently reported that the number of loans refinanced through the Home Affordable Refinance Program (HARP) through the fourth quarter totaled 3,380,558 since the inception of the program in 2009.  FHFA’s fourth quarter Refinance Report shows that 21,079 HARP refinances were completed between September and December.

FHFA estimates that as of third quarter 2015, more than 367,600 borrowers nationwide still have a financial incentive to refinance through HARP before the program expires in December 2016.  FHFA is starting a social media campaign, #HARPNow, focusing outreach efforts on the top 10 states with the highest numbers of “in-the-money” borrowers that remain eligible for a HARP refinance:  Florida, Illinois, Michigan, Ohio, Georgia, California, Pennsylvania, New Jersey, New York, and Maryland. 

Borrowers are considered “in-the-money” if they meet the basic HARP eligibility requirements, have a remaining mortgage balance of $50,000 or more, have a remaining term of greater than 10 years, and an interest rate at least 1.5 percent higher than current market rates. 
More info

 

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C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. C.A.R. does not in any way endorse or sponsor any product or service or vendor mentioned herein unless expressly stated.

EDITED BY: Mary Belongia

Copyright © 2016 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

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​2/11/2016​


CALIFORNIA ASSOCIATION OF REALTORS