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.
More info
 
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
 
 
- - - - - - -
 
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.
 
 
- - - - - - -
 
 
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
 
- - - - - - -
 
 
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
 
- - - - - - -
 
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

 

 


 

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

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.
More info

 

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.
More info

 

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.
More info

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

- - - - - - -

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

- - - - - - -

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

- - - - - - -

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

 

 

 

 

 

Save

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


Powered By Blackbaud

​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

 

 


 

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

 

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.”

 


- - - - - - -

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.

 

- - - - - - -

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.

 

- - - - - - -

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.

- - - - - - -
 

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%

 

 

 

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.)

 

​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

 

 


 

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

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.
More info

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.
More info

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.

More info

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.
More info


- - - - - - -

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.
 

- - - - - - -

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.
More info 


- - - - - - -

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.
More info


- - - - - - -

 

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.
More info

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.
More info

 

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.)

 

​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

 

 


 

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

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.
More info

 

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
- - - - - - -

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
 

- - - - - - -

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.
More info 

- - - - - - -

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

- - - - - - -

 

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.
More info

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.
More info

 

 

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.)

 

​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

 

 


 

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

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

- - - - - - -

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
 

- - - - - - -

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


- - - - - - -

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®.


- - - - - - -

 

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.
More info

 

 

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.)

 

​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

 

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

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


- - - - - - -

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


- - - - - - -

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


- - - - - - -

 

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

 

 

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.)

 

​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

- - - - - - -

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
 

- - - - - - -

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


- - - - - - -

 

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

 

 

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.)

 

​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

 

 -----------------

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. 
More info

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. 
More info

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.
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 3.2 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.
More info


- - - - - - -

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.
More info

- - - - - - -

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.
More info

- - - - - - -
  

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.
More info

 

 

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.)

 

​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.

More info

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. 
More info

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.
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) 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.
More info


- - - - - - -

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. 
More info 


- - - - - - -

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.
More info


- - - - - - -

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. 
More info


- - - - - - -

 

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.
More info

 

 

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.)

 

​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

 

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

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.

More info

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.
More info

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.
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) 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.
More info


- - - - - - -


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.
More info


- - - - - - -

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.
More info


- - - - - - -

 

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..

More info

 

 

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.)

 

​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

 

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

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.
More info

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.

More info

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


- - - - - - -

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 


- - - - - - -

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


- - - - - - -

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


- - - - - - -

 

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.
More info

 

 

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.)

 

​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

 

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

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


- - - - - - -

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.

 

- - - - - - -

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


- - - - - - -

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
 

- - - - - - -

 

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.
More info

 

 

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.)

 

​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


- - - - - - -

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

  


- - - - - - -

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


- - - - - - -

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
 


- - - - - - -

 

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

 

 

 

 

Connect with us
FacebookLinkedInTwitterYouTube

 

 

This message was sent to breidyiii@gmail.com. Visit your subscription management page to modify your email communication preferences or to update your personal profile. To stop receiving this email in the future, click to remove yourself from this list.

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

ADVERTISING INQUIRIES: learn how you can advertise in this email newsletter.

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.

QUESTIONS OR COMMENTS: contact C.A.R.      

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

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

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

​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.
More info

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.
More info

- - - - - - -

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

 


- - - - - - -

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

- - - - - - -
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!
- - - - - - -

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
 


- - - - - - -

 

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.
More info

 

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

 

 

 

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.)

 

​6/22/2016​

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

 -----------------

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.
More info

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
More info

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

- - - - - - -

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


- - - - - - -

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
 


- - - - - - -

 

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
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

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

- - - - - - -

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 


- - - - - - -

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


- - - - - - -

  

 

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
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.)

 

​6/8/2016​

​​

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


- - - - - - -

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.


- - - - - - -

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


- - - - - - -

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
 


- - - - - - -

 
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

 

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

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


- - - - - - -

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


- - - - - - -

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


- - - - - - -

 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
 


- - - - - - -

 

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%

 

 

 

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.)

 

​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

 

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

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).
More info

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


- - - - - - -

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

- - - - - - -

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


- - - - - - -

 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
 


- - - - - - -


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

 

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.)

 

​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

 

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

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


- - - - - - -

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


- - - - - - -

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


- - - - - - -

 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.
 


- - - - - - -


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

 

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

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

 

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

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.  
More info

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


- - - - - - -

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


- - - - - - -

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


- - - - - - -

 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
 

- - - - - - -


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

 

 

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

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

 

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

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 

- - - - - - -

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

- - - - - - -
 

 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. 

 


- - - - - - -


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%

 

- - - - - - -

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.)

 



 

​4/20/2016​


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


- - - - - - -

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®.


- - - - - - -

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


- - - - - - -

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
 


- - - - - - -

 

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


- - - - - - -

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! 


- - - - - - -

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


- - - - - - -

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
 


- - - - - - -

 

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

 

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

 

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


- - - - - - -

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


- - - - - - -

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


- - - - - - -

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
 


- - - - - - -

 

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
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​

<![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
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.)

<![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
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.)

​3/9/2016​


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
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.)


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


- - - - - - -

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


- - - - - - -

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


- - - - - - -

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®.
 


- - - - - - -

 

 

 

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.)


Powered By Blackbaud

​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

 

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

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

- - - - - - - 

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

- - - - - - - 

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

- - - - - - -

 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
 

- - - - - - -

 

 

 

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

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

 

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

 

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


- - - - - - -

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


- - - - - - -

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


- - - - - - -

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
 


- - - - - - -

 

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

 

Connect with us
FacebookLinkedInTwitterYouTube

 

 

This message was sent to breidyiii@gmail.com. Visit your subscription management page to modify your email communication preferences or to update your personal profile. To stop receiving this email in the future, click to remove yourself from this list.

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]>

 

​2/11/2016​


CALIFORNIA ASSOCIATION OF REALTORS

C.A.R. Newsline

Table of contents

»

Homeowners Pay Less for Car Insurance

»

Everyday Ethics Webinar: The Duty to Provide Competent Service

»

Realtor.com Unveils “House Talk” as a New Consumer Resource

»

Buying Beats Renting in Less Than Two Years

»

C.A.R. Housing Market Presentations for Your Office

»

Additional stories

 

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

 

Realtor.com Unveils “House Talk” as a New Consumer Resource
Realtor.com recently announced the launch of
House Talk, a new online community created to help the millions of people who visit realtor.com® get answers to their home-related questions.

House Talk is a resource for all things real estate – whether one is buying or selling a home, wants to share a home improvement tip, or has a question about a rental lease. With a robust community of peers and professionals, participants are empowered to ask questions and give answers on real estate topics that matter to them. Users looking for fast answers can also search for key discussion topics to see if they have already been addressed by the group.

Conversation topics that are currently trending include: adjustable rate mortgages, bathroom remodels, and kitchen cabinets. General community topics include: financing, buying and selling, home improvement, renting, talk of the town, unique homes, and block party. 
More info

 

Buying Beats Renting in Less Than Two Years
On average, Americans can break even on a home purchase in less than two years in 70 percent of U.S. metros, thanks to low interest rates, healthy home value forecasts, and the relatively fast pace of rents in recent years, according to Zillow's Breakeven Horizon analysis for the fourth quarter of 2015.

The analysis found that, generally, one does not need to live in a home for even two years to make purchasing the home more financially advantageous than renting it over the same time period.

However the decision to buy may not be so simple for millennials – whose first jobs often take them to job centers with relatively high Breakeven Horizons. Boston, one of the nation's youngest cities, has a Breakeven Horizon of just over three years. San Francisco's Breakeven Horizon is 2.9 years, up from 2.6 years in the fourth quarter of 2014. Both markets are attracting young people following jobs, and many of those remain renters despite record-high rental costs.
More info

 

Metro Home Prices Accelerate in Q4
A moderating pace of sales had little impact on the trajectory of home prices during the final three months of the year, which picked up speed and showed continued growth in most of the U.S., according to NAR’s latest quarterly report.

The median existing single-family home price increased in 81 percent of measured markets, with 145 out of 1791 metropolitan statistical areas (MSAs) showing gains based on closings in the fourth quarter compared with the fourth quarter of 2014. Thirty-four areas (19 percent) recorded lower median prices from a year earlier.

There were slightly fewer rising markets in the fourth quarter compared to the third quarter, when price gains were recorded in 87 percent of metro areas. Thirty metro areas in the fourth quarter (17 percent) experienced double-digit increases, a jump from the 20 metro areas in the third quarter. Twenty-two metro areas (12 percent) experienced double-digit increases in the fourth quarter of 2014.
More info

 

Fast Facts

Calif. median home price: December California 2015:

  • California: $489,310
  • Calif. highest median home price by region/county: San Francisco, $1,215,620
  • Calif. lowest median home price by region/county: Siskiyou, $140,000

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 2/4/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.72% fees/points: 0.6% 
  • 15-yr. fixed: 3.01% fees/points: 0.5%

Homeowners Pay Less for Car Insurance
Major auto insurance companies charge good drivers as much as 47 percent more for basic liability auto insurance if they don’t own their home, according to a new analysis of premiums by the nonprofit Consumer Federation of America (CFA).  Based on a sampling of insurance quotes across the country for a 30-year old safe driver, CFA found that premiums averaged seven percent higher – about $112 per year – for drivers who rent instead of own homes. Liberty Mutual penalized renters the most with premium hikes averaging $307 per year, or 19 percent more, for state mandated auto insurance coverage.

For the analysis, CFA tested rates for minimum limits liability coverage in 10 cities from the nation’s largest insurers – State Farm, Geico, Allstate, Progressive, Farmers, Liberty Mutual, and Nationwide.  CFA used company websites to solicit two premiums in each city for a 30-year old female motorist who has a 2005 Honda Civic and a perfect driving record.  The only characteristic that was altered during the testing was whether she owned or rented her home. 

Geico was the only company tested that did not consider homeownership status in any of the 10 cities.  The only premium decrease for renters was found in Chicago, where Allstate lowered rates by 11 percent compared with premiums for homeowners.
More info


- - - - - - -

Everyday Ethics Webinar: The Duty to Provide Competent Service
Join C.A.R. Attorney Brian Polinksy on Tuesday, Feb. 23 at 1:30 p.m. for an hour-long webinar about Article 11 of the Code of Ethics.

Article 11 of the Code of Ethics states that the services REALTORS® provide to their customers must conform to the standards of practice and competence in the specific real estate disciplines in which they engage. In particular, NAR suggests that Article 11 should be applied when REALTORS® are considering providing appraisal services to clients. When is a REALTOR® competent to provide appraisal services? What disclosures do REALTORS® need to make to clients about their appraisal experience? And what types of interests in a property that a REALTOR® is appraising must be disclosed to clients?

Brian will answer these questions, address the key concepts REALTORS® need to know about Article 11 of the Code of Ethics, and provide examples of specific real estate practices that violate this Article.

Sign up for this webinar - Space is limited and may fill up fast. As soon as you register you should immediately receive a confirmation email which you will need to attend the webinar.
Register


- - - - - - -

 C.A.R. Housing Market Presentations for Your Office
C.A.R.’s Research and Economics team are available to visit brokerages as a part of C.A.R.’s outreach program. Generally, C.A.R. schedules in-person presentations for groups of 100 or more. If you cannot meet that minimum, two alternatives might be to hold a joint event with other real estate offices, OR to conduct a C.A.R.-hosted webinar.  Please contact
Paula Green or (213) 739-8337 about available dates/times for outreach events.
View the latest housing market and survey infographics. Share these with your colleagues and clients.


- - - - - - -

Home Purchase Sentiment Index Decreases in January
Fannie Mae’s Home Purchase Sentiment Index (HPSI) decreased 1.7 points to 81.5 in January, with housing affordability constraints reflected in the downward movement of two of the HPSI components. “Good Time to Buy” figures trended down on net in 2015, declining an additional 4 percentage points in January. The share of consumers who reported that their income was significantly higher than it was 12 months ago fell 3 percentage points after climbing 9 percentage points on net in December.
More info
 


- - - - - - -

 

Foreclosure Inventory Declines in December
CoreLogic has released its December 2015 National Foreclosure Report which shows that foreclosure inventory declined 23.8 percent and completed foreclosures declined 22.6 percent compared with December 2014. The number of completed foreclosures nationwide decreased year over year from 41,000 in December 2014 to 32,000 in December 2015. The number of completed foreclosures in December 2015 was down 72.8 percent from the peak of 117,722 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 6.1 million completed foreclosures across the country, and since homeownership rates peaked in the second quarter of 2004, there have been about 8 million homes lost to foreclosure.

As of December 2015, the national foreclosure inventory included approximately 433,000, or 1.1 percent, of all homes with a mortgage compared with 568,000 homes, or 1.5 percent, in December 2014. The December 2015 foreclosure inventory rate is the lowest for any month since November 2007. 
More info

 

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.)


Powered By Blackbaud

 
1/20/2016
CALIFORNIA ASSOCIATION OF REALTORS CALIFORNIA ASSOCIATION OF REALTORS
C.A.R. Newsline

 
Table of contents
» Housing Affordability Constrains
» Housing Starts, Permit End Year Up
» NeighborWorks’ Network Invested Nearly $2 Billion in Affordable Rental Housing
» California Home Sales Bounce Back in December
» Which Renovations Are and Aren't DIY
» Additional stories
-----------------
 
 
NeighborWorks ’ Network Invested Nearly $2 Billion in Affordable Rental Housing
With the supply of affordable rental housing declining throughout the U.S., NeighborWorks America reported today that its network of local non-profit builders invested more than $1.9 billion into the development and preservation of affordable rental homes for low- and moderate-income households. NeighborWorks organizations invested more than $710 million specifically into the construction of new affordable rental homes.

More than 15,300 rental homes were constructed, acquired, and preserved by NeighborWorks in 2015, while another 58,000 rental homes were maintained with investments in repairs. Even minor repairs to apartments have long-lasting effects on the residents and the quality of the property.
More info
 
 
Which Renovations Are and Aren't DIY
A new survey from the Home Projects Council reveals which projects homeowners view as renovations they feel comfortable doing on their own, and which ones they prefer to hire a professional to complete.

Not surprisingly, the online survey of 514 owners found that DIYers (45 percent of respondents) spent less on their last home improvement project than those who want a professional to do it for them (55 percent of respondents).  Regardless of how they described their own skill — beginner, intermediate, or expert — cost was the biggest driver for DIYers; 53 percent said the main reason they did the project on their own was because it was less expensive than hiring a pro. But nearly 30 percent said their main motivation was that they enjoyed the work.
See the list of projects
 
New Your Membership, Your Way Guidebook
The 2016 edition of C.A.R.'s annual "Your Membership, Your Way Guidebook" will be arriving this week. Whether you are a brand-new member of C.A.R., or a long-time veteran, this guide provides you with a reference for all the amazing member benefits available to you from C.A.R. Learn what's new for 2016 and find essential transactional tools, education resources, and how you can get more involved with C.A.R.
More info
 
Celebrating 100 Years of “REALTORS®”
This year marks the centennial of the REALTOR® mark. NAR adopted the term "REALTOR®" 100 years ago to identify that its members are committed to protecting property ownership.

To celebrate, NAR has launched a website for REALTORS® to submit pictures and stories that highlight the work they've done across the nation. REALTORS® are encouraged to read the stories and submit their own to the website.

NAR's latest consumer advertising campaign also focuses on defining the value of the REALTOR® brand. The campaign sets out to help consumers understand how REALTORS® offer a competitive edge and greater insights into local markets, serve as consumer advocates, and form connective tissues in their communities. The campaign uses the "Get REALTOR®" logo, and NAR is asking its members to watch for the messaging on social, digital, radio, and television platforms beginning later this month and into early February.
More info
 
U.S. to Start Tracking "Secret" Luxury Buyers
The Treasury Department announced last week that it will begin tracking all "secret buyers" of luxury properties as concerns mount about money laundering in high-end real estate. The initiative requires shell companies that make all-cash real estate purchases to expose the buyers' identities. The Treasury is asking title insurance companies to discover and report the identities of these buyers.

The government said it would allocate more resources into investigating luxury real estate sales that involve shell companies, such as limited liability companies, partnerships, and other entities. The government will begin its new program in New York's Manhattan as well as Miami-Dade County in Florida. In Manhattan, buyers who purchase property at a sale price of more than $3 million must be reported, and in Miami-Dade County, more than $1 million.

A New York Times series last year revealed that real estate professionals in the luxury market often don't know much about their buyers as the use of shell companies rose with foreign investment in U.S. real estate. In fact, the Times found that nearly half of homes nationwide worth at least $5 million were purchased using shell companies.
More info
 

Housing Affordability Constrains
Further labor market tightening is expected to lead to increased household income and job security amid more relaxed lending standards and easier access to mortgage credit, according to Fannie Mae's Economic and Strategic Research Group's January 2016 Economic and Housing Outlook.

However, strong home price gains, especially in the lower-end of the market, continue to outpace household income growth, eroding affordability. Consumer spending is expected to underpin economic growth again this year, while residential investment and government spending should help drive growth despite some drag from net exports.
More info


- - - - - - -

 

Housing Starts, Permits End 2015 Up
Nationwide housing starts increased 10.8 percent to 1.11 million units in 2015, according to newly released figures from HUD and the U.S. Commerce Department. Single-family starts posted a yearly gain of 10.4 percent to 715,000 units.

Overall permit issuance increased 12 percent to 1.178 million units in 2015. Permit issuance in December fell 3.9 percent to 1.232 million units. Single-family permits increased 7.9 percent to 691,000 units while multifamily permits fell 11.4 percent to 492,000 units.
More info


- - - - - - -

 California Home Sales Bounce Back in December
California existing home sales rebounded in December after new loan disclosure rules delayed closings in November, C.A.R. announced.

Home sales exceeded the 400,000-unit level in December after falling short in November. Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 405,530 units in December, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.

For 2015 as a whole, a preliminary figure of 407,060 single-family homes closed escrow in California, up 6.4 percent from a revised 382,720 in 2014.

The December figure was up 9.6 percent from the revised 370,070 level in November and up 10.7 percent compared with home sales in December 2014 of a revised 366,460. The month-to-month increase in sales was the largest since January 2011, and the year-to-year increase was the largest since July 2015.

The median price of an existing, single-family detached California home rose 2.6 percent in December to $489,310 from $477,060 in November. December's median price was 8.0 percent higher than the revised $453,270 recorded in December 2014.
More info


- - - - - - -

Home Appraisals Fall Short of Owner Expectations
Quicken Loans recently announced average appraised values in December were 1.8 percent lower than the homeowners' opinion of their home’s value, according to the company’s national Home Price Perception Index (HPPI). December is the 11th straight month when appraised values were lower than homeowners expected, although December marks the fourth month the gap between the two values have narrowed.

Quicken Loans' national Home Value Index (HVI) showed home values continuing to climb in December. Appraised values increased a modest 0.18 percent from November, but have risen a steady 5.81 percent since December 2014 and 3.8 percent since the beginning of the year.

Many of the metro areas studied also showed perception moving closer to equal. Appraisals remained higher in Western cities, while homeowner expectations topped appraised values in many of the Northeastern and Midwestern cities examined.
More info


- - - - - - -
 
 

Fast Facts

Calif. median home price: December California 2015:

  • California: $489,310
  • Calif. highest median home price by region/county: San Francisco, $1,215,620
  • Calif. lowest median home price by region/county: Siskiyou, $140,000

Calif. Pending Home Sales Index:
Statewide pending home sales fell in November, with the Pending Home Sales Index (PHSI) declining 11.4 percent from 113.4 in October to 100.4 in November, based on signed contracts.

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

Mortgage rates: Week ending 1/14/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.92% fees/points: 0.6% 
  • 15-yr. fixed: 3.19% 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.

 

 


 

 

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

Powered By Blackbaud
1/13/2016
CALIFORNIA ASSOCIATION OF REALTORS CALIFORNIA ASSOCIATION OF REALTORS
C.A.R. Newsline

 
Table of contents
» Home Purchase Sentiment Index Moves Up in 2015
» Should You Be on a Team in 2016?
» Where Is A "Bargain" Really A Bargain?
» Share of All-Cash Home Sales Jumps in November
» Foreclosure Inventory Declines in November 2015
» Additional stories
-----------------
 
 
Where Is A “Bargain” Really A Bargain?
Analysts at Trulia combed through all of the homes listed for sale on its site in the 100 largest housing markets to find out where properties listed with the word bargain, or similar words, are actually priced at a discount.

Here are the findings:
  • Homes listed for sale with the term “bargain” (or similar) in their description are offered for a lower price compared to other listings without such terms, in only 55 of the largest 100 U.S. housing markets
  • Markets with the largest discount on bargain properties are in the Bargain Belt, where markdowns range from 10-20 percent;
  • Markets with the smallest discount on bargain properties are mostly along the Costly Coasts, where price cuts range from just 2-4 percent.
Seven of the 10 housing markets with the smallest discount are along the Costly Coasts. Riverside, Calif., comes to the bottom of the list, where bargain properties will get you just a 2.1 percent, or $6,480 discount off the median-priced home. Rounding out the bottom five are Orange County, Calif., and Montgomery-Bucks-Chester County, Pa., with a discount of 3.3 percent.
More info
 
Foreclosure Inventory Declines in November 2015
Foreclosure inventory declined 21.8 percent and completed foreclosures declined 18.8 percent in November compared with the previous year, according to CoreLogic’s November 2015 National Foreclosure Report. The number of completed foreclosures in November was down 71.6 percent from the peak of 117,657 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 November, the national foreclosure inventory included approximately 448,000, or 1.2 percent, of all homes with a mortgage compared with 573,000 homes, or 1.5 percent, in November 2014. The November 2015 foreclosure inventory rate is the lowest for any month since November 2007.

California ranked fourth with 24,000 in a list of states with the highest number of completed foreclosures for the 12 months ending in November 2015. Only Florida (83,000), Michigan (51,000), and Texas (29,000) ranked higher.
More info

NAR Forecasting Modest Increase in Home Sales
Following the housing market's best year in nearly a decade, existing-home sales are forecast to expand in 2016 at a more moderate pace as pent-up buyer demand combats affordability pressures and meager economic growth, according to NATIONAL ASSOCIATION OF REALTORS® Chief Economist Lawrence Yun.

In a newly published NAR video Yun discusses his expectations for the U.S. economy and housing market in 2016 and points to pent-up demand, sustained job growth and improving inventory conditions as his reasons for an expected gain (from 2015) in new and existing-home sales.

Despite his forecast increase in sales, Yun cites rising mortgage rates, home prices still outpacing wages, and shaky global economic conditions as headwinds that will likely hold back a stronger pace of sales.
More info
HUD Files Charges Against three California Foreclosure Rescue Companies
HUD is charging three Modesto, Calif., home loan modification companies and nine of their agents with violating the Fair Housing Act by targeting Hispanic homeowners for illegal or unfair loan audit and loan modification assistance because of their national origin. The Fair Housing Act prohibits discrimination in housing transactions, including those related to home mortgage loans, because of national origin.

HUD’s charge of discrimination alleges that The Home Loan Auditors, LLC; Century Law Center, LLC; SOE Assistance Center, Inc., and their agents lured struggling Hispanic homeowners into paying thousands of dollars for home loan audits that the homeowners never received and modification services that had little, if any, value. The companies allegedly exploited the homeowners’ limited-English proficiency and used deceptive marketing in Spanish, at times making false representations, in order to mislead them. Ultimately, the homeowners lost their properties due to foreclosure.

HUD’s charge will be heard by a United States Administrative Law Judge unless any party to the charge elects to have the case heard in federal district court. If an administrative law judge finds after a hearing that discrimination has occurred, he or she may award damages to the complainants for their loss as a result of the discrimination.
More info
Mortgage Credit Availability Decreased in December
Mortgage credit availability decreased in December, according to the Mortgage Credit Availability Index (MCAI) from the Mortgage Bankers Association (MBA).

The MCAI decreased 2.4 percent to 124.3 in December.  A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit.  The index was benchmarked to 100 in March 2012. Of the four component indices, the Conventional MCAI saw the greatest tightening (down 4.8 percent) over the month followed by the Jumbo MCAI (down 4.2 percent), and the Government MCAI (down 0.6 percent). The Conforming MCAI increased 0.1 percent over the month.
More info
 
 
 

Home Purchase Sentiment Index Moves Up in 2015
Fannie Mae’s Home Purchase Sentiment Index (HPSI) increased 2.4 points to 83.2 in December, capping off its strongest year thus far, as Americans’ household income prospects bounced back to levels of three months ago. Coupled with an improved financial outlook, more consumers said they believe now is a good time to sell a home – climbing 4 percentage points on net – although the share who believe now is a good time to buy remained flat in December.

Highlights from the Index include:

  • The net share of respondents who say that it is a good time to buy a house remained flat at 35 percent.
  • The net percentage of respondents who say it is a good time to sell a house rose after falling for two months in a row – rising 4 percentage points to 8 percent in December.
  • The net share of respondents who say that home prices will go up rose 2 percentage points to 40 percent.
  • The net share of those who say mortgage interest rates will go down continued to decrease, dropping 4 percentage points to negative 52 percent.

More info


- - - - - - -

 

Should You Be on a Team in 2016?
There are many opportunities to expand your market and your earnings when you begin working with a real estate team. But before you begin there are legal requirements you need to know, such as: how to use team names in advertising, how to list properties in the MLS, and important regulations to protect your business.

C.A.R. Business Products now offers a printed guide and an online course to help REALTORS® evaluate if a team is the right choice for them. Learn the best practices of highly successful teams, as well as the legal issues involved.

Checkout the guide to “I to We: Building and Working as a Team” or checkout the online course.


- - - - - - -

 Share of All-Cash U.S. Home Sales Jumps in November
RealtyTrac November home sales data derived from publicly recorded sales deeds shows the share of cash sales jumped to 38.1 percent of U.S. single-family home and condo sales during the month — up from 29.8 percent in October and up from 30.9 percent a year ago to the highest level since March 2013, when 38.8 percent of all sales were all-cash. The 23 percent year-over-year increase in share of cash sales nationwide followed 29 consecutive months of annual declines in the share of all-cash home sales.

Major metro areas (population of at least 1 million) with the biggest annual jumps in share of cash sales were San Francisco (up 89 percent), San Jose (up 74 percent), Columbus, Ohio (up 73 percent), Milwaukee (up 71 percent), Providence (up 59 percent), and Portland (up 53 percent).
More info


- - - - - - -

Fannie Mae Reaches Two Million HARP Refinances
Fannie Mae announced that it has helped more than two million American households save money, reduce their interest rates, move into more stable loans or shorten their loan terms by refinancing their mortgages under the Home Affordable Refinance Program (HARP). By refinancing through HARP, those households have been able to save an average of nearly $200 a month since the program's inception in 2009.

Last year, the HARP program was extended through the end of 2016, giving homeowners who have not refinanced additional time to take advantage of lower mortgage rates. Fannie Mae estimates that tens of thousands of households across the U.S. could still be eligible to refinance under HARP.
More info


- - - - - - -
 

Joel Singer named to Swanepoel’s Power 200

C.A.R. CEO Joel Singer has been named to Swanepoel’s Power 200 list, which identifies the 200 leaders that have the most power and influence to impact the residential real estate brokerage industry. Singer comes in at #31 on the overall list and #3 on the Association/MLS Executives list.

Singer has a 30-year history of challenging the industry to face its threats while working on practical solutions for keeping the agent at the center of the transaction.  He was instrumental in the recent transaction between the NATIONAL ASSOCIATION OF REALTORS® and zipLogix to provide zipForm Plus® and zipTMS™ as a free member benefit to all NAR members.

Singer has held the Association's top staff position since November 1989 after serving as C.A.R.'s chief economist and heading the Association's public affairs department. He was instrumental in developing Real Estate Business Services Inc. (REBS), C.A.R.'s for-profit subsidiary, and serves as its president. He also is president and chief executive officer of zipLogix.
See the full list

Fast Facts

Calif. median home price: November California 2015:

  • California: $475,000
  • Calif. highest median home price by region/county: San Francisco, $1,323,830
  • Calif. lowest median home price by region/county: Siskiyou, $165,000

Calif. Pending Home Sales Index:
Statewide pending home sales fell in November, with the Pending Home Sales Index (PHSI) declining 11.4 percent from 113.4 in October to 100.4 in November, based on signed contracts.

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

Mortgage rates: Week ending 1/7/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.97% fees/points: 0.6%
  • 15-yr. fixed: 3.26% 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.)

Powered By Blackbaud
1/6/2015
CALIFORNIA ASSOCIATION OF REALTORS CALIFORNIA ASSOCIATION OF REALTORS
C.A.R. Newsline

 
Table of contents
» Home Prices Up 6.3 Percent Year Over Year
» CFPB Moves to Calm Fears Over Minor Closing Errors
» Webinar: What Motivates Today's Consumer Marketplace?
» Asian Americans Creating Buying Boom
» Pending Home Sales Decline Modestly in November
» Additional stories
-----------------
 
 
 
Asian Americans Creating Buying Boom
The Asian American community has become the fastest-growing minority demographic in the country and their stake in homeownership is quickly widening.

By 2024, 1.8 million more Asian households will be formed, according to the newly released Asian Real Estate Association of America’s 2015 report on the State of Asian Americans.

The Asian American community applied for — and received — the largest share of purchase money mortgages of any minority group in terms of both number and monetary value, according to the 2014 study "Asian American Outcomes in the U.S. Mortgage Market."

What’s more, Asian Americans tend to have higher credit scores, low APRs, and lower LTV ratios than the general public. They also have higher median personal and household incomes than the U.S. general population, as well as more education.
More info
 
Just Listed — Facebook Marketing for REALTORS®
C.A.R. recently partnered with SocialMadeSimple to offer a new way to secure leads using Facebook’s most cutting-edge ad types and advanced targeting. SocialMadeSimple’s team of experts will use your listing or sale to create an optimized campaign with your branding, and put it in front of the right people in a way that makes it easy for them to become leads, prospects and clients. At the end of your campaign, you'll receive a full report of your results, including lead contact information.

The process is simple. In as little as five minutes you can be on your way to more sales in 2016. Begin your first campaign today.

Learn more about SocialMadeSimple during a webinar on Wednesday, Jan. 13 at 10 a.m. Register here.
 
 

Fast Facts

Calif. median home price: November California 2015:

  • California: $475,000
  • Calif. highest median home price by region/county: San Francisco, $1,323,830
  • Calif. lowest median home price by region/county: Siskiyou, $165,000

Calif. Pending Home Sales Index:
Statewide pending home sales fell in November, with the Pending Home Sales Index (PHSI) declining 11.4 percent from 113.4 in October to 100.4 in November, based on signed contracts.

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

Mortgage rates: Week ending 12/24/2015 (Source: Freddie Mac)

  • 30-yr. fixed: 3.96% fees/points: 0.6%
  • 15-yr. fixed: 3.22% fees/points: 0.6%
  • 1-yr. adjustable: 2.68% Fees/points: 0.2%

Home Prices Up 6.3 Percent Year Over Year
CoreLogic recently released its CoreLogic Home Price Index (HPI) and HPI Forecast data for November 2015 which shows home prices are up both year over year and month over month.

Home prices nationwide, including distressed sales, increased 6.3 percent in November compared with a year ago and increased 0.5 percent compared with the previous month, 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 November 2015 to November 2016, and on a month-over-month basis home prices are expected to remain flat. 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


- - - - - - -

 

CFPB Moves to Calm Fears Over Minor Closing Errors
Prior to the close of 2015, the Consumer Financial Protection Bureau told bankers that they won’t be held liable for most minor errors in loan processing and paperwork under new mortgage disclosure rules, known as the "Know Before You Owe " rule or TRID.

The new rule took effect Oct. 3, 2015, and has been blamed for causing longer closings due to concerns over minor clerical errors in Closing Disclosures. The rule requires lenders to provide borrowers with a new combined Closing Disclosure that lists all the charges, fees, and line items three days prior to closing.

Average closing times on loans have grown since TRID took effect, by as many as five days. The delay in closings also has resulted in some borrowers having to pay more in loan lock fees to hold interest rates until closings.

The new clarification from CFPB may prompt lenders to proceed more confidently.
More info


- - - - - - -

Pending Home Sales Decline Modestly in November
Pending home sales declined slightly in November for the third time in four months as buyers continued to battle both rising home prices and limited homes available for sale, according to NATIONAL ASSOCIATION OF REALTORS®. Modest gains in the Midwest and South were offset by larger declines in the Northeast and West.

The Pending Home Sales Index, a forward-looking indicator based on contract signings, decreased 0.9 percent to 106.9 in November from an upwardly revised 107.9 in October but is still 2.7 percent above November 2014 (104.1). Although the index has increased year-over-year for 15 consecutive months, last month's annual gain was the smallest since October 2014 (2.6 percent).

Pending home sales in the West, which includes California, declined 5.5 percent in November to 100.4, but remains 4.5 percent above a year ago.
More info


- - - - - - -

The "Missing Link" in Housing
For years, first-time home buyers have accounted for approximately 40 percent of all buyers. However, since the recession, this percentage has been shrinking. In 2015, first time buyers made up fewer than 30 percent of the market share, according to the NATIONAL ASSOCIATION OF REALTORS®.

The decrease of first-time home buyers will have broad economic implications, housing analysts say. Without first-time home buyers, an entire cycle of homeownership is stalled. Current homeowners are usually unable to sell their homes and move up. And without move-up transactions, many older people can’t sell and downsize for retirement.

It’s not that millennials don’t show an interest in home ownership: according to a survey conducted by Fannie Mae, 56 percent of respondents between the ages of 18 and 34 plan to buy a home next time they move.

But housing analysts say that the real estate industry has an important part in bringing them into homeownership by driving home the financial benefits and teaching them about ways to make homeownership possible.
More info


- - - - - - -
 
 
 

 

 

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, maryb@car.org

ADVERTISING INQUIRIES: learn how you can advertise in this email newsletter.

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.

QUESTIONS OR COMMENTS: contact C.A.R.

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

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

Powered By Blackbaud

​1/20/2016​


CALIFORNIA ASSOCIATION OF REALTORS

C.A.R. Newsline

Table of contents

»

Housing Affordability Constrains

»

Housing Starts, Permit End Year Up

»

NeighborWorks’ Network Invested Nearly $2 Billion in Affordable Rental Housing

»

California Home Sales Bounce Back in December

»

Which Renovations Are and Aren't DIY

»

Additional stories

 

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

 

NeighborWorks’ Network Invested Nearly $2 Billion in Affordable Rental Housing
With the supply of affordable rental housing declining throughout the U.S., NeighborWorks America reported today that its network of local non-profit builders invested more than $1.9 billion into the development and preservation of affordable rental homes for low- and moderate-income households. NeighborWorks organizations invested more than $710 million specifically into the construction of new affordable rental homes.

More than 15,300 rental homes were constructed, acquired, and preserved by NeighborWorks in 2015, while another 58,000 rental homes were maintained with investments in repairs. Even minor repairs to apartments have long-lasting effects on the residents and the quality of the property.
More info

 

Which Renovations Are and Aren't DIY
A new survey from the Home Projects Council reveals which projects homeowners view as renovations they feel comfortable doing on their own, and which ones they prefer to hire a professional to complete.

Not surprisingly, the online survey of 514 owners found that DIYers (45 percent of respondents) spent less on their last home improvement project than those who want a professional to do it for them (55 percent of respondents).  Regardless of how they described their own skill — beginner, intermediate, or expert — cost was the biggest driver for DIYers; 53 percent said the main reason they did the project on their own was because it was less expensive than hiring a pro. But nearly 30 percent said their main motivation was that they enjoyed the work.
See the list of projects
 

New Your Membership, Your Way Guidebook
The 2016 edition of C.A.R.’s annual “Your Membership, Your Way Guidebook” will be arriving this week. Whether you are a brand-new member of C.A.R., or a long-time veteran, this guide provides you with a reference for all the amazing member benefits available to you from C.A.R. Learn what’s new for 2016 and find essential transactional tools, education resources, and how you can get more involved with C.A.R.
More info

 

Celebrating 100 Years of “REALTORS®”
This year marks the centennial of the REALTOR® mark. NAR adopted the term "REALTOR®" 100 years ago to identify that its members are committed to protecting property ownership.

To celebrate, NAR has launched a website for REALTORS® to submit pictures and stories that highlight the work they've done across the nation. REALTORS® are encouraged to read the stories and submit their own to the website.

NAR's latest consumer advertising campaign also focuses on defining the value of the REALTOR® brand. The campaign sets out to help consumers understand how REALTORS® offer a competitive edge and greater insights into local markets, serve as consumer advocates, and form connective tissues in their communities. The campaign uses the "Get REALTOR®" logo, and NAR is asking its members to watch for the messaging on social, digital, radio, and television platforms beginning later this month and into early February.
More info

 

U.S. to Start Tracking "Secret" Luxury Buyers
The Treasury Department announced last week that it will begin tracking all "secret buyers" of luxury properties as concerns mount about money laundering in high-end real estate. The initiative requires shell companies that make all-cash real estate purchases to expose the buyers' identities. The Treasury is asking title insurance companies to discover and report the identities of these buyers.

The government said it would allocate more resources into investigating luxury real estate sales that involve shell companies, such as limited liability companies, partnerships, and other entities. The government will begin its new program in New York's Manhattan as well as Miami-Dade County in Florida. In Manhattan, buyers who purchase property at a sale price of more than $3 million must be reported, and in Miami-Dade County, more than $1 million.

A New York Times series last year revealed that real estate professionals in the luxury market often don't know much about their buyers as the use of shell companies rose with foreign investment in U.S. real estate. In fact, the Times found that nearly half of homes nationwide worth at least $5 million were purchased using shell companies.
More info

Housing Affordability Constrains
Further labor market tightening is expected to lead to increased household income and job security amid more relaxed lending standards and easier access to mortgage credit, according to Fannie Mae’s Economic and Strategic Research Group’s January 2016 Economic and Housing Outlook.

However, strong home price gains, especially in the lower-end of the market, continue to outpace household income growth, eroding affordability. Consumer spending is expected to underpin economic growth again this year, while residential investment and government spending should help drive growth despite some drag from net exports.
More info


- - - - - - -

Housing Starts, Permits End 2015 Up
Nationwide housing starts increased 10.8 percent to 1.11 million units in 2015, according to newly released figures from HUD and the U.S. Commerce Department. Single-family starts posted a yearly gain of 10.4 percent to 715,000 units.

Overall permit issuance increased 12 percent to 1.178 million units in 2015. Permit issuance in December fell 3.9 percent to 1.232 million units. Single-family permits increased 7.9 percent to 691,000 units while multifamily permits fell 11.4 percent to 492,000 units.
More info


- - - - - - -

 California Home Sales Bounce Back in December
California existing home sales rebounded in December after new loan disclosure rules delayed closings in November, C.A.R. announced.

Home sales exceeded the 400,000-unit level in December after falling short in November. Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 405,530 units in December, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.

For 2015 as a whole, a preliminary figure of 407,060 single-family homes closed escrow in California, up 6.4 percent from a revised 382,720 in 2014.

The December figure was up 9.6 percent from the revised 370,070 level in November and up 10.7 percent compared with home sales in December 2014 of a revised 366,460. The month-to-month increase in sales was the largest since January 2011, and the year-to-year increase was the largest since July 2015.

The median price of an existing, single-family detached California home rose 2.6 percent in December to $489,310 from $477,060 in November. December’s median price was 8.0 percent higher than the revised $453,270 recorded in December 2014.
More info


- - - - - - -

Home Appraisals Fall Short of Owner Expectations
Quicken Loans recently announced average appraised values in December were 1.8 percent lower than the homeowners’ opinion of their home’s value, according to the company’s national Home Price Perception Index (HPPI). December is the 11th straight month when appraised values were lower than homeowners expected, although December marks the fourth month the gap between the two values have narrowed.

Quicken Loans’ national Home Value Index (HVI) showed home values continuing to climb in December. Appraised values increased a modest 0.18 percent from November, but have risen a steady 5.81 percent since December 2014 and 3.8 percent since the beginning of the year.

Many of the metro areas studied also showed perception moving closer to equal. Appraisals remained higher in Western cities, while homeowner expectations topped appraised values in many of the Northeastern and Midwestern cities examined.
More info
 


- - - - - - -

 

Fast Facts

Calif. median home price: December California 2015:

  • California: $489,310
  • Calif. highest median home price by region/county: San Francisco, $1,215,620
  • Calif. lowest median home price by region/county: Siskiyou, $140,000

Calif. Pending Home Sales Index
Statewide pending home sales fell in November, with the Pending Home Sales Index (PHSI) declining 11.4 percent from 113.4 in October to 100.4 in November, based on signed contracts.

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

Mortgage rates: Week ending 1/14/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.92% fees/points: 0.6% 
  • 15-yr. fixed: 3.19% 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.

 

 

 

           

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


Powered By Blackbaud

​1/13/2016​

​​


CALIFORNIA ASSOCIATION OF REALTORS

C.A.R. Newsline

Home Purchase Sentiment Index Moves Up in 2015
Fannie Mae’s Home Purchase Sentiment Index (HPSI) increased 2.4 points to 83.2 in December, capping off its strongest year thus far, as Americans’ household income prospects bounced back to levels of three months ago. Coupled with an improved financial outlook, more consumers said they believe now is a good time to sell a home – climbing 4 percentage points on net – although the share who believe now is a good time to buy remained flat in December.

Highlights from the Index include:

  • The net share of respondents who say that it is a good time to buy a house remained flat at 35 percent.
  • The net percentage of respondents who say it is a good time to sell a house rose after falling for two months in a row – rising 4 percentage points to 8 percent in December.
  • The net share of respondents who say that home prices will go up rose 2 percentage points to 40 percent.
  • The net share of those who say mortgage interest rates will go down continued to decrease, dropping 4 percentage points to negative 52 percent.

More info


- - - - - - -

Should You Be on a Team in 2016?
There are many opportunities to expand your market and your earnings when you begin working with a real estate team. But before you begin there are legal requirements you need to know, such as: how to use team names in advertising, how to list properties in the MLS, and important regulations to protect your business.

C.A.R. Business Products now offers a printed guide and an online course to help REALTORS® evaluate if a team is the right choice for them. Learn the best practices of highly successful teams, as well as the legal issues involved.

Checkout the guide to “I to We: Building and Working as a Team” or checkout the online course.


- - - - - - -

 Share of All-Cash U.S. Home Sales Jumps in November
RealtyTrac November home sales data derived from publicly recorded sales deeds shows the share of cash sales jumped to 38.1 percent of U.S. single-family home and condo sales during the month — up from 29.8 percent in October and up from 30.9 percent a year ago to the highest level since March 2013, when 38.8 percent of all sales were all-cash. The 23 percent year-over-year increase in share of cash sales nationwide followed 29 consecutive months of annual declines in the share of all-cash home sales.

Major metro areas (population of at least 1 million) with the biggest annual jumps in share of cash sales were San Francisco (up 89 percent), San Jose (up 74 percent), Columbus, Ohio (up 73 percent), Milwaukee (up 71 percent), Providence (up 59 percent), and Portland (up 53 percent).
More info


- - - - - - -

Fannie Mae Reaches Two Million HARP Refinances
Fannie Mae announced that it has helped more than two million American households save money, reduce their interest rates, move into more stable loans or shorten their loan terms by refinancing their mortgages under the Home Affordable Refinance Program (HARP). By refinancing through HARP, those households have been able to save an average of nearly $200 a month since the program's inception in 2009.

Last year, the HARP program was extended through the end of 2016, giving homeowners who have not refinanced additional time to take advantage of lower mortgage rates. Fannie Mae estimates that tens of thousands of households across the U.S. could still be eligible to refinance under HARP.
More info
 


- - - - - - -

 
Joel Singer named to Swanepoel’s Power 200

C.A.R. CEO Joel Singer has been named to Swanepoel’s Power 200 list, which identifies the 200 leaders that have the most power and influence to impact the residential real estate brokerage industry. Singer comes in at #31 on the overall list and #3 on the Association/MLS Executives list.

Singer has a 30-year history of challenging the industry to face its threats while working on practical solutions for keeping the agent at the center of the transaction.  He was instrumental in the recent transaction between the NATIONAL ASSOCIATION OF REALTORS® and zipLogix to provide zipForm Plus® and zipTMS™ as a free member benefit to all NAR members.

Singer has held the Association's top staff position since November 1989 after serving as C.A.R.'s chief economist and heading the Association's public affairs department. He was instrumental in developing Real Estate Business Services Inc. (REBS), C.A.R.'s for-profit subsidiary, and serves as its president. He also is president and chief executive officer of zipLogix.
See the full list

 

Fast Facts

Calif. median home price: November California 2015:

  • California: $475,000
  • Calif. highest median home price by region/county: San Francisco, $1,323,830
  • Calif. lowest median home price by region/county: Siskiyou, $165,000

Calif. Pending Home Sales Index
Statewide pending home sales fell in November, with the Pending Home Sales Index (PHSI) declining 11.4 percent from 113.4 in October to 100.4 in November, based on signed contracts.

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

Mortgage rates: Week ending 1/7/2016
(Source: Freddie Mac)

  • 30-yr. fixed: 3.97% fees/points: 0.6% 
  • 15-yr. fixed: 3.26% fees/points: 0.5%

Table of contents

»

Home Purchase Sentiment Index Moves Up in 2015

»

Should You Be on a Team in 2016?

»

Where Is A “Bargain” Really A Bargain?

»

Share of All-Cash Home Sales Jumps in November

»

Foreclosure Inventory Declines in November 2015

»

Additional stories

 

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

 

Where Is A “Bargain” Really A Bargain?
Analysts at Trulia combed through all of the homes listed for sale on its site in the 100 largest housing markets to find out where properties listed with the word bargain, or similar words, are actually priced at a discount.

Here are the findings:

  • Homes listed for sale with the term “bargain” (or similar) in their description are offered for a lower price compared to other listings without such terms, in only 55 of the largest 100 U.S. housing markets
  • Markets with the largest discount on bargain properties are in the Bargain Belt, where markdowns range from 10-20 percent;
  • Markets with the smallest discount on bargain properties are mostly along the Costly Coasts, where price cuts range from just 2-4 percent.

Seven of the 10 housing markets with the smallest discount are along the Costly Coasts. Riverside, Calif., comes to the bottom of the list, where bargain properties will get you just a 2.1 percent, or $6,480 discount off the median-priced home. Rounding out the bottom five are Orange County, Calif., and Montgomery-Bucks-Chester County, Pa., with a discount of 3.3 percent.
More info

 

Foreclosure Inventory Declines in November 2015
Foreclosure inventory declined 21.8 percent and completed foreclosures declined 18.8 percent in November compared with the previous year, according to CoreLogic’s November 2015 National Foreclosure Report. The number of completed foreclosures in November was down 71.6 percent from the peak of 117,657 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 November, the national foreclosure inventory included approximately 448,000, or 1.2 percent, of all homes with a mortgage compared with 573,000 homes, or 1.5 percent, in November 2014. The November 2015 foreclosure inventory rate is the lowest for any month since November 2007. 

California ranked fourth with 24,000 in a list of states with the highest number of completed foreclosures for the 12 months ending in November 2015. Only Florida (83,000), Michigan (51,000), and Texas (29,000) ranked higher.
More info


NAR Forecasting Modest Increase in Home Sales
Following the housing market's best year in nearly a decade, existing-home sales are forecast to expand in 2016 at a more moderate pace as pent-up buyer demand combats affordability pressures and meager economic growth, according to NATIONAL ASSOCIATION OF REALTORS® Chief Economist Lawrence Yun.

In a newly published NAR video Yun discusses his expectations for the U.S. economy and housing market in 2016 and points to pent-up demand, sustained job growth and improving inventory conditions as his reasons for an expected gain (from 2015) in new and existing-home sales.

Despite his forecast increase in sales, Yun cites rising mortgage rates, home prices still outpacing wages, and shaky global economic conditions as headwinds that will likely hold back a stronger pace of sales.
More info
 

HUD Files Charges Against three California Foreclosure Rescue Companies
HUD is charging three Modesto, Calif., home loan modification companies and nine of their agents with violating the Fair Housing Act by targeting Hispanic homeowners for illegal or unfair loan audit and loan modification assistance because of their national origin. The Fair Housing Act prohibits discrimination in housing transactions, including those related to home mortgage loans, because of national origin.

HUD’s charge of discrimination alleges that The Home Loan Auditors, LLC; Century Law Center, LLC; SOE Assistance Center, Inc., and their agents lured struggling Hispanic homeowners into paying thousands of dollars for home loan audits that the homeowners never received and modification services that had little, if any, value. The companies allegedly exploited the homeowners’ limited-English proficiency and used deceptive marketing in Spanish, at times making false representations, in order to mislead them. Ultimately, the homeowners lost their properties due to foreclosure.

HUD’s charge will be heard by a United States Administrative Law Judge unless any party to the charge elects to have the case heard in federal district court. If an administrative law judge finds after a hearing that discrimination has occurred, he or she may award damages to the complainants for their loss as a result of the discrimination.
More info
 

Mortgage Credit Availability Decreased in December
Mortgage credit availability decreased in December, according to the Mortgage Credit Availability Index (MCAI) from the Mortgage Bankers Association (MBA).

The MCAI decreased 2.4 percent to 124.3 in December.  A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit.  The index was benchmarked to 100 in March 2012. Of the four component indices, the Conventional MCAI saw the greatest tightening (down 4.8 percent) over the month followed by the Jumbo MCAI (down 4.2 percent), and the Government MCAI (down 0.6 percent). The Conforming MCAI increased 0.1 percent over the month.
More info

 

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.)


Powered By Blackbaud

​1/6/2016​


CALIFORNIA ASSOCIATION OF REALTORS

C.A.R. Newsline

Table of contents

»

Home Prices Up 6.3 Percent Year Over Year

»

CFPB Moves to Calm Fears Over Minor Closing Errors

»

Webinar: What Motivates Today's Consumer Marketplace?

»

 Asian Americans Creating Buying Boom

»

Pending Home Sales Decline Modestly in November

»

Additional stories

 

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

 

 

Asian Americans Creating Buying Boom
The Asian American community has become the fastest-growing minority demographic in the country and their stake in homeownership is quickly widening.

By 2024, 1.8 million more Asian households will be formed, according to the newly released Asian Real Estate Association of America’s 2015 report on the State of Asian Americans.

The Asian American community applied for – and received – the largest share of purchase money mortgages of any minority group in terms of both number and monetary value, according to the 2014 study “Asian American Outcomes in the U.S. Mortgage Market.”

What’s more, Asian Americans tend to have higher credit scores, low APRs, and lower LTV ratios than the general public. They also have higher median personal and household incomes than the U.S. general population, as well as more education.
More info
 

Just Listed – Facebook Marketing for REALTORS®
C.A.R. recently partnered with SocialMadeSimple to offer a new way to secure leads using Facebook’s most cutting-edge ad types and advanced targeting. SocialMadeSimple’s team of experts will use your listing or sale to create an optimized campaign with your branding, and put it in front of the right people in a way that makes it easy for them to become leads, prospects and clients. At the end of your campaign, you'll receive a full report of your results, including lead contact information.

The process is simple. In as little as five minutes you can be on your way to more sales in 2016. Begin your first campaign today.

Learn more about SocialMadeSimple during a webinar on Wednesday, Jan. 13 at 10 a.m. Register here.

 

Fast Facts

Calif. median home price: November California 2015:

  • California: $475,000
  • Calif. highest median home price by region/county: San Francisco, $1,323,830
  • Calif. lowest median home price by region/county: Siskiyou, $165,000

Calif. Pending Home Sales Index
Statewide pending home sales fell in November, with the Pending Home Sales Index (PHSI) declining 11.4 percent from 113.4 in October to 100.4 in November, based on signed contracts.

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

Mortgage rates: Week ending 12/24/2015 (Source: Freddie Mac)

  • 30-yr. fixed: 3.96% fees/points: 0.6% 
  • 15-yr. fixed: 3.22% fees/points: 0.6%
  • 1-yr. adjustable: 2.68% Fees/points: 0.2%

Home Prices Up 6.3 Percent Year Over Year
CoreLogic recently released its CoreLogic Home Price Index (HPI) and HPI Forecast data for November 2015 which shows home prices are up both year over year and month over month.

Home prices nationwide, including distressed sales, increased 6.3 percent in November compared with a year ago and increased 0.5 percent compared with the previous month, 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 November 2015 to November 2016, and on a month-over-month basis home prices are expected to remain flat. 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


- - - - - - -

CFPB Moves to Calm Fears Over Minor Closing Errors
Prior to the close of 2015, the Consumer Financial Protection Bureau told bankers that they won’t be held liable for most minor errors in loan processing and paperwork under new mortgage disclosure rules, known as the “Know Before You Owe” rule or TRID.

The new rule took effect Oct. 3, 2015, and has been blamed for causing longer closings due to concerns over minor clerical errors in Closing Disclosures. The rule requires lenders to provide borrowers with a new combined Closing Disclosure that lists all the charges, fees, and line items three days prior to closing.

Average closing times on loans have grown since TRID took effect, by as many as five days. The delay in closings also has resulted in some borrowers having to pay more in loan lock fees to hold interest rates until closings.

The new clarification from CFPB may prompt lenders to proceed more confidently.
More info


- - - - - - -

Pending Home Sales Decline Modestly in November
Pending home sales declined slightly in November for the third time in four months as buyers continued to battle both rising home prices and limited homes available for sale, according to NATIONAL ASSOCIATION OF REALTORS®. Modest gains in the Midwest and South were offset by larger declines in the Northeast and West.

The Pending Home Sales Index, a forward-looking indicator based on contract signings, decreased 0.9 percent to 106.9 in November from an upwardly revised 107.9 in October but is still 2.7 percent above November 2014 (104.1). Although the index has increased year-over-year for 15 consecutive months, last month's annual gain was the smallest since October 2014 (2.6 percent).

Pending home sales in the West, which includes California, declined 5.5 percent in November to 100.4, but remains 4.5 percent above a year ago.
More info


- - - - - - -

The “Missing Link” in Housing
For years, first-time home buyers have accounted for approximately 40 percent of all buyers. However, since the recession, this percentage has been shrinking. In 2015, first time buyers made up fewer than 30 percent of the market share, according to the NATIONAL ASSOCIATION OF REALTORS®.

The decrease of first-time home buyers will have broad economic implications, housing analysts say. Without first-time home buyers, an entire cycle of homeownership is stalled. Current homeowners are usually unable to sell their homes and move up. And without move-up transactions, many older people can’t sell and downsize for retirement.

It’s not that millennials don’t show an interest in home ownership: according to a survey conducted by Fannie Mae, 56 percent of respondents between the ages of 18 and 34 plan to buy a home next time they move.

But housing analysts say that the real estate industry has an important part in bringing them into homeownership by driving home the financial benefits and teaching them about ways to make homeownership possible.
More info
 


- - - - - - -

 

 

Connect with us
FacebookLinkedInTwitterYouTube

 

 

This message was sent to breidyiii@gmail.com. Visit your subscription management page to modify your email communication preferences or to update your personal profile. To stop receiving this email in the future, click to remove yourself from this list.

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

ADVERTISING INQUIRIES: learn how you can advertise in this email newsletter.

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.

QUESTIONS OR COMMENTS: contact C.A.R.      

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

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


Powered By Blackbaud

12/30/2015
​ 12​
CALIFORNIA ASSOCIATION OF REALTORS CALIFORNIA ASSOCIATION OF REALTORS
C.A.R. Newsline

 
Table of contents
» Continued Increases in Home Prices for October
» Mortgage Rates Little Unchanged
» Joel Singer named in Inman Top 101 list
  Consumer Confidence Improves in December
» New Law Alert for Brokers
» Additional stories
 
-----------------
 
Joel Singer named in Inman Top 101 list
C.A.R. CEO Joel Singer has been named to Inman’s 2015 101 honorees list. The 2015 Inman 101 list consists of leading rebels, CEOs, power brokers, misfits, deal-makers, newbies and innovators whose ingenuity, outspokenness, strength, conviction, power, and persistence are driving change in the United States.
 
In naming Singer to the list, Inman stated that Singer has a 30-year history of challenging the industry to face its threats while working on practical solutions for keeping the agent at the center of the transaction. Singer was one of only three state and local REALTOR® Association leaders named.
Of the honorees, publisher Brad Inman said, “It is not who you are, it is what you do. It is not about yesterday’s achievements but what we expect from them in the future.”
 
The selection process for the Inman 101 involved nominations and recommendations from Inman’s readership, Ambassadors, the editorial team, outside advisors and industry experts. 
 
New Law Alert for Brokers
All CalBRE Brokers with licenses expiring after Dec. 31, 2015 are now required to take three (3) hours of Office Management and Supervision as part of your 45-hour continuing education requirement to renew. Even if you've completed your 45 hours of CE, you'll NEED to include this topic with your list of course certificates you provide for your license renewal in 2016.
 
Now is a good time to double check to see if the package you used to complete your 45 hours included “Broker Management and Supervision.” If not, C.A.R. Education is offering this as a FREE online course* as part of your 12 FREE Hours on Online CE courses from C.A.R. Learn more > and select the “California Management and Supervision” course.
 
Or you may take a live webinar class with an online exam for only $59 that will allow you to complete this new requirement. Upcoming live webinar dates:
 
Learn more about the new rules and regulations as stated by the California Bureau of Real Estate.
 
*Free hours are only available to members in good standing with C.A.R. and who have not yet used their 12 free hours of online CE courses in 2015.
 
Home Values Gained $1.1 Trillion in 2015
The value of all homes nationwide grew $1.1 trillion in 2015, and is expected to end the year at $28.5 trillion total, according to a report by Zillow. The value of the entire housing stock grew 4.1 percent over the past year, slower than the 6 percent growth in 2014.
 
The total value of all homes has regained $5.3 trillion since hitting its lowest point during the housing bust in December 2011, but is still $782 billion below the bubble peak value of $29.2 trillion, reached in October 2006.
 
Housing value isn't distributed equally across the country. California is home to about 12 percent of the U.S. population, but the state accounts for nearly a quarter of the country's total home value, driven by highly valued markets like Los Angeles and San Francisco. 
 

Fast Facts

Calif. median home price: November California 2015:

  • California: $475,000
  • Calif. highest median home price by region/county: San Francisco, $1,323,830
  • Calif. lowest median home price by region/county: Siskiyou, $165,000

Calif. Pending Home Sales Index
Statewide pending home sales fell in November, with the Pending Home Sales Index (PHSI) declining 11.4 percent from 113.4 in October to 100.4 in November, based on signed contracts.

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

Mortgage rates: Week ending 12/24/2015 (Source: Freddie Mac)

  • 30-yr. fixed: 3.96% fees/points: 0.6% 
  • 15-yr. fixed: 3.22% fees/points: 0.6%
  • 1-yr. adjustable: 2.68% Fees/points: 0.2%

Continued Increases in Home Prices for October
S&P  Dow  Jones  Indices released  the  latest  results  for  the  S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices. Data released today for October 2015 show that home prices continued their rise across the country over the last 12 months.

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 5.2% annual increase in October 2015 versus a 4.9% increase in September 2015. The 10-City Composite increased 5.1% in the year to October compared to 4.9% previously. The 20-City Composite’s year-over-year gain was 5.5% versus 5.4% reported in September. 

San Francisco, Denver and Portland continue to report the highest year-over-year gains among the 20 cities with another month of double-digit price increases of 10.9% for all three. Twelve cities reported greater price increases in the year ending October 2015 versus the year ending September 2015. Phoenix had the longest streak of year-over-year increases, reporting a gain of 5.7% in October 2015, the eleventh consecutive increase in annual price gains.

More info


- - - - - - -

 

Mortgage Rates Little Changed 
Freddie Mac released the results of its Primary Mortgage Market Survey (PMMS), showing fixed mortgage rates largely unchanged heading into the holiday weekend.

30-year fixed-rate mortgage (FRM) averaged 3.96 percent with an average 0.6 point for the week ending December 24, 2015, down from last week when it averaged 3.97 percent. A year ago at this time, the 30-year FRM averaged 3.83 percent. 

15-year FRM this week averaged 3.22 percent with an average 0.6 point, unchanged from last week. A year ago at this time, the 15-year FRM averaged 3.10 percent.  

More info

 

- - - - - - -

Consumer Confidence Improves in December
The Conference Board Consumer Confidence Index®, which had decreased moderately in November, improved in December. The Index now stands at 96.5 (1985=100), up from 92.6 in November. The Present Situation Index increased from 110.9 last month to 115.3 in December, while the Expectations Index improved to 83.9 from 80.4 in November.

Consumers’ appraisal of current conditions was mixed in December. Those saying business conditions are “good” increased from 25.0 percent to 27.3 percent. However, those saying business conditions are “bad” also increased from 16.9 percent to 19.8 percent. Consumers, however, were more positive about the labor market. The proportion claiming jobs are “plentiful” increased from 21.0 percent to 24.1 percent, while those claiming jobs are “hard to get” decreased to 24.7 percent from 25.8 percent.

Consumers’ optimism about the short-term outlook was somewhat mixed in December. Those expecting business conditions to improve over the next six months decreased slightly to 15.2 percent from 15.7 percent. However, those expecting business conditions to worsen increased slightly to 11.0 percent from 10.6 percent.

More info


- - - - - - -

U.S. Housing Market Posts Strong Improvement
Freddie Mac released its Multi-Indicator Market Index (MiMi), showing the U.S. housing market continuing to improve.

The national MiMi value stands at 81.9, indicating a housing market that is on its outer range of stable housing activity, while showing an improvement of +0.59 percent from September to October and a three-month improvement of +1.54 percent. On a year-over-year basis, the national MiMi value has improved +6.31 percent. Since its all-time low in October 2010, the national MiMi has rebounded 38 percent, but remains significantly off from its high of 121.7. 

Fifty-three of the 100 metro areas have MiMi values in a stable range, with Fresno, Calif. (101.9), Austin, Texas (96.5), Honolulu, Hawaii, (95.5), Salt Lake City, Utah (95.2), and Los Angeles (95) ranking in the top five. Compared to the same time last year, 29 of the top 100 metros had MiMi values in a stable range.

In October, 43 of the 50 states and 89 of the top 100 metros were showing an improving three-month trend. The same time last year, 36 of the 50 states, and 70 of the top 100 metro areas were showing an improving three-month trend.

More info


- - - - - - -
 
 
 
 
Connect with us
FacebookLinkedInTwitterYouTube
   

 

​ Reprinted with permission of: 
the CALIFORNIA ASSOCIATION OF REALTORS®, 

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 © 2015 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

Powered By Blackbaud


12/24/2015
CALIFORNIA ASSOCIATION OF REALTORS CALIFORNIA ASSOCIATION OF REALTORS
C.A.R. Newsline

 
Table of contents
» PATH Act of 2015
» California Pending Home Sales Dial Back in November
» Buying More Affordable than Renting in 58 Percent of U.S. Markets
  New Law Alert for Brokers
» Holiday Discount for .REALTOR web domains
» Additional stories
-----------------
 

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

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

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

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

Holiday Discount for .REALTOR web domains
The NATIONAL ASSOCIATION OF REALTORS® (NAR) is offering a 25 percent discount on all new purchases of the .REALTOR web address using promo code Holiday. The first .REALTOR member address is still free for the first year. Individual REALTORS®, brokerages, and boards may claim their .REALTOR web address here.

FHFA House Price Index Up 0.5 Percent in October
U.S. house prices rose 0.5 percent in October on a seasonally adjusted basis from the previous month, according to the Federal Housing Finance Agency (FHFA) monthly House Price Index (HPI). The previously reported 0.8 percent increase in September was revised downward to reflect a 0.7 percent increase.

The FHFA HPI is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac.  From October 2014 to October 2015, house prices were up 6.1 percent.

For the nine census divisions, seasonally adjusted monthly price changes from September 2015 to October 2015 ranged from -0.5 percent in the New England division to +1.2 percent in the East South Central division. The 12-month changes were all positive, ranging from +2.9 percent in the New England division to +8.9 percent in the Mountain division.
More info

Fast Facts

Calif. median home price: November 2015:

  • California: $475,000
  • Calif. highest median home price by region/county:
    San Francisco, $1,323,830
  • Calif. lowest median home price by region/county:
    Siskiyou, $165,000

Calif. Pending Home Sales Index:
Statewide pending home sales fell in November, with the Pending Home Sales Index (PHSI) declining 11.4 percent from 113.4 in October to 100.4 in November, based on signed contracts.

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

Mortgage rates: Week ending 12/17/2015 (Source: Freddie Mac)

  • 30-yr. fixed: 3.97% fees/points: 0.6%
  • 15-yr. fixed: 3.22% fees/points: 0.5%
  • 1-yr. adjustable: 2.67% Fees/points: 0.3%

PATH Act of 2015
Just before recessing for the holidays, the House and Senate passed the Protecting Americans from Tax Hikes Act of 2015 (PATH Act). President Obama is expected to sign the bill as soon as it reaches the White House. The Act does considerably more than the typical tax extenders legislation seen in prior years. It makes permanent over 20 key tax provisions, including the research tax credit, enhanced Code Sec. 179 expensing, and the American Opportunity Tax Credit. It also extends other provisions, including bonus depreciation, for five years; and revives many others for two years. In addition, many extenders have been enhanced. Further, Act imposes a two-year moratorium on the ACA medical device excise tax.
More info


- - - - - - -

 

California Pending Home Sales Dial Back in November
California pending home sales retreated in November primarily due to seasonal factors and delayed escrow closings caused by new loan disclosure rules, C.A.R. said earlier this week.

Statewide pending home sales fell in November, with the Pending Home Sales Index (PHSI)* declining 11.4 percent from 113.4 in October to 100.4 in November, based on signed contracts. The month-to-month decrease was the largest since December 2014.

On an annual basis, California pending home sales remained strong and continued to improve from 2014 with double-digit gains. Statewide pending sales were up 13.6 percent from the 88.4 index recorded in November 2014. Pending sales have been increasing on a year-over-year basis since November 2014.
More info


- - - - - - -

New Law Alert for Brokers
All CalBRE Brokers with licenses expiring after Dec. 31, 2015 are now required to take three (3) hours of Office Management and Supervision as part of your 45-hour continuing education requirement to renew. Even if you've completed your 45 hours of CE, you'll NEED to include this topic with your list of course certificates you provide for your license renewal in 2016.

Now is a good time to double check to see if the package you used to complete your 45 hours included "Broker Management and Supervision." If not, C.A.R. Education is offering this as a FREE online course* as part of your 12 FREE Hours on Online CE courses from C.A.R. Learn more and select the "California Management and Supervision" course.

Or you may take a live webinar class with an online exam for only $59 that will allow you to complete this new requirement. Upcoming live webinar dates:
Learn more about the new rules and regulations as stated by the California Bureau of Real Estate.

*Free hours are only available to members in good standing with C.A.R. and who have not yet used their 12 free hours of online CE courses in 2015.


- - - - - - -

Desire to Buy Strong Despite Affordability, Economic Concerns
Although only half of surveyed households believe the economy is currently improving, nearly all young renters eventually want to buy a home, and a convincing majority still view homeownership as part of their American Dream, according to a new quarterly consumer survey released by the NATIONAL ASSOCIATION OF REALTORS® (NAR).

The HOME survey data reveals that an overwhelming majority of current renters who are 34 years of age or younger want to own a home in the future (94 percent). Overall, 83 percent of polled renters have a desire to own, and 77 percent believe homeownership is part of their American Dream.

The top two reasons given by renters for not currently owning was the inability to afford to buy (53 percent) and needing the flexibility of renting rather than owning (19 percent). When asked what would likely be the main reason for buying in the future, renters cited lifestyle considerations such as getting married, starting a family or retiring (33 percent) and an improvement in their financial situation (26 percent).
More info


- - - - - - -
 
 

 

 

Connect with us
FacebookLinkedInTwitterYouTube
   

 

​Reproduced here with permission​

 

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 © 2015 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

Powered By Blackbaud
 

12/16/2015
CALIFORNIA ASSOCIATION OF REALTORS CALIFORNIA ASSOCIATION OF REALTORS
C.A.R. Newsline

 
Table of contents
» Fed Raises Key Interest Rate
» C.A.R. Education's Annual Holiday Sale
» California Housing Market Loses Momentum in November
  Foreclosure Prevention Actions Approaching 3.6 Million
» Email Scams Targeting the Real Estate Industry
» Additional stories
-----------------
 

California Housing Market Loses Momentum in November
California existing home sales fell in November from both the previous month and year for the first time in nearly a year as low housing affordability extended into Southern California, C.A.R. said today.

Home sales posted below the 400,000 level in November for the first time since March 2015 and were at the lowest level since February 2015. Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 369,680 units in November, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.

The November figure was down 8.4 percent from the revised 403,580 level in October and down 1.6 percent compared with home sales in November 2014 of a revised 375,740. The year-to-year decrease was the first since January 2015 and was significantly below the six-month average of 8.3 percent observed between May 2015 and October 2015.

The median price of an existing, single-family detached California home dipped 0.2 percent in November to $475,000 from $475,990 in October.  November’s median price was 6.8 percent higher than the revised $444,630 recorded in November 2014.
More info

Sophisticated Email Scams Targeting the Real Estate Industry
Criminals are hacking into the email accounts of real estate agents or other persons involved in a real estate transaction and using information gained from the hack to dupe a party into a fraudulent wire transfer. The hackers often send an email that appears to be from an individual legitimately involved in the transaction, informing the recipient, often the buyer, that there has been a last minute change to the wiring instructions.  Following the new instructions, the recipient will wire funds directly to the hacker’s account, which will be cleared out in a matter of minutes. The money is almost always lost forever.

In the next two weeks, real estate professionals will be contending with high transactional volumes during year-end closings. This is a busy and hectic time for real estate professionals, and many millions of dollars will be sent and received via wire before the end of the year. This is exactly the environment in which online criminals seek to operate.

NAR and C.A.R. urge its members and state and local REALTOR® associations to be on high alert for email and online fraud.
More info

256,000 U.S. Properties Regained Equity in Q3
CoreLogic released a new analysis showing 256,000 properties regained equity in the third quarter of 2015, bringing the total number of mortgaged residential properties with equity at the end of Q3 2015 to approximately 46.3 million, or 92 percent of all homes with an outstanding mortgage. Nationwide, borrower equity increased year over year by $741 billion in Q3 2015.

The total number of mortgaged residential properties with negative equity stood at 4.1 million, or 8.1 percent, in Q3 2015. That was down 4.7 percent quarter over quarter from 4.3 million homes, or 8.7 percent, compared with Q2 2015 and down 20.7 percent year over year from 5.2 million homes, or 10.4 percent, compared with Q3 2014.

For the homes in negative equity status, the national aggregate value of negative equity was $301 billion at the end of Q3 2015, declining approximately $8.1 billion from $309.1 billion in Q2 2015, a decrease of 2.6 percent. On a year-over-year basis, the value of negative equity declined overall from $341 billion in Q3 2014, representing a decrease of 11.8 percent in 12 months.
More info

Builder Confidence Edges Down in December
Builder confidence in the market for newly constructed single-family homes remained relatively flat in December, dropping one point to 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.

All three HMI components posted modest losses in December. The index measuring sales expectations in the next six months fell two points to 67, the component gauging current sales conditions decreased one point to 66, and the index charting buyer traffic dropped two points to 46.
More info

Fast Facts

Calif. median home price: California November 2015:

  • California: $475,000
  • Calif. highest median home price by region/county: San Francisco, $1,323, 830
  • Calif. lowest median home price by region/county: Siskiyou, $165,000

Calif. Pending Home Sales Index:
Pending home sales increased in October, with the Pending Home Sales Index (PHSI) rising 2.5 percent from a revised 110.7 in September to 113.4 in October 


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

Mortgage rates: Week ending 12/10/2015 (Source: Freddie Mac)

  • 30-yr. fixed: 3.95% fees/points: 0.6%
  • 15-yr. fixed: 3.19% fees/points: 0.5%
  • 1-yr. adjustable: 2.64% Fees/points: 0.2%

 

Fed Raises Key Interest Rate
The Federal Reserve announced Wednesday that it is raising interest rates from record lows. The Fed coupled its first rate hike in nine years with a signal that further increases will likely be made slowly as the economy strengthens further and inflation rises from undesirably low levels.

Wednesday's action signaled the central bank's belief that the economy has finally regained enough strength 6½ years after the Great Recession ended to withstand modestly higher borrowing rates.

The Fed said that it was lifting its key rate by a quarter-point to a range of 0.25 percent to 0.5 percent. Its move ends an extraordinary seven-year period of near-zero borrowing rates. But the Fed's statement suggested that rates would remain historically low well into the future, saying it expects "only gradual increases."

According to C.A.R.’s Chief Economist, Leslie Appleton-Young, ”The Federal Reserve’s announcement today to raise the federal funds rate negligibly has long been anticipated and shouldn’t have a significant adverse impact on the housing market since rates are still historically low. In fact, it may spur potential home buyers who have been waiting on the sidelines to finally jump in now that they see the rates may continue to rise slowly in the next couple of years.”
More info


- - - - - - -

 

C.A.R. Education’s Annual Holiday Sale
As a special holiday gift to all C.A.R. members, C.A.R. Education is offering the lowest prices of the year on the online license renewal and professional development courses at store.car.org/holidaysale.

Choose from a variety of courses to further your success in real estate and complete anytime over the next 12 months. Sale prices end Dec. 21, 2015 at 11:59 p.m. Pacific time.
Learn more


- - - - - - -

Foreclosure Prevention Actions Approaching 3.6 Million
The Federal Housing Finance Agency (FHFA) recently reported that Fannie Mae and Freddie Mac completed 54,744 foreclosure prevention actions in the third quarter of 2015, bringing the total number of foreclosure prevention actions to just under 3.6 million since the start of the conservatorships in September 2008.  These measures have helped more than 2.9 million borrowers stay in their homes, including more than 1.8 million who received permanent loan modifications.

Further details can be found in FHFA's third quarter Foreclosure Prevention Report, which also includes data on Fannie Mae and Freddie Mac home retention actions, delinquency data and real estate owned (REO) inventory.

Other foreclosure prevention data for Fannie Mae and Freddie Mac noted in the quarterly report include:

  • The number of 60+ day delinquent loans declined another 3 percent during the quarter.
  • The REO inventory of Fannie Mae and Freddie Mac declined 11 percent during the third quarter to 77,204.
  • The serious delinquency rate of Fannie Mae and Freddie Mac loans fell to 1.5 percent at the end of the third quarter.

More info


- - - - - - -

Majority of Current Home Shoppers Still Plan to Purchase
The Federal Reserve raised interest rates this week for the first time in nine years, but the impact on potential home buyers' behavior is expected to be minimal, according to a new Zillow® survey. Most people (70 percent) who say they are currently searching for a home or plan to buy within the next year will continue with their homebuying plans even if rates rise to 4.5 percent – roughly where economists expect they will be by mid-2016. That said, while plans to purchase will remain intact, almost half (45 percent) of current home shoppers claim they would reconsider the type of home they are searching for, such as looking for a smaller home or less expensive community, should this 50 basis point increase in mortgage rates occur.

According to the survey, rising interest rates rank relatively low among the top concerns of home buyers.  Respondents who are currently in the process of searching for or buying a home claimed they were most concerned about finding an affordable home amidst low inventory (29 percent), followed by saving for down payment (19 percent). Rising mortgage rates ranked low among the concerns of potential home buyers, and were cited as a top concern for only 14 percent of Americans. Millennials, or survey respondents age 25 to 34, also claimed that qualifying for a loan with their credit score was a larger concern than rising mortgage rates.
More info


- - - - - - -
Building Permits, Housing Starts Rise
Building permits for single-family homes increased 1.1 percent in November to a rate of 723,000 compared with October's figure of 715,000, according to a report by the U.S. Census Bureau and HUD.

Housing starts for single-family homes increased 7.6 percent to a rate of 768,000 in November compared with October's figure of 714,000.
More info

 

 
 

 

 

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 © 2015 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

Powered By Blackbaud


12/9/2015
CALIFORNIA ASSOCIATION OF REALTORS CALIFORNIA ASSOCIATION OF REALTORS
C.A.R. Newsline

 
Table of contents
» FHA Announces New Loan Limits
» San Francisco, L.A., Boston Top List of Potential Bubble Markets
» Hottest 2016 Markets for Millennials
  C.A.R. Victorious in Beating Back Mortgage Tax
» California Regional MLS and MLSListings Inc. Sign Data Share Agreement
» Additional stories
-----------------
 

Hottest 2016 Markets for Millennials
Numbering 43.5 million, the older group of millennials (aged 25 to 34) makes up 13.6 percent of the U.S. population but fully 30 percent of the current population of existing-home buyers.

In 2016, millennials have the power to remake the real estate landscape wherever they choose to settle. But where will that be?

realtor.com is forecasting the top 10 markets likely to see a surge of millennial buyers and five places these buyers are likely to leave next year.

The ranking takes into proprietary 2016 sales and price projections, the representation of millennial users among viewers of “for sale” listing pages on realtor.com from July to October, and the share of head of households aged 25 to 34 relative to all heads of households, from 2015 Nielsen Pop-Facts.

  1. Atlanta, Ga.
  2. Pittsburgh, Pa.
  3. Memphis, Tenn.
  4. Boston, Mass.
  5. Austin, Texas
  6. San Diego, Calif.
  7. Seattle, Wash.
  8. Houston, Texas
  9. Denver, Colo.
  10. Charlotte, N.C.

realtor.com also identified five out of the 100 largest markets that millennial buyers will probably shun in 2016. In these five places, the number of mortgages purchased in 2015 by 25- to 34-year-olds was below average, and relatively few members of that age group were looking at listings on realtor.com. In addition, these five markets have no growth forecasted for next year—and younger buyers are driving much of the growth in real estate, according to realtor.com’s forecast.

The following list is not ranked.
Jacksonville, Fla.
Phoeniz, Ariz.
Port St. Lucie, Fla.
Spokane, Wash.
Stockton, Calif.
More info

California Regional MLS and MLSListings Inc. Sign Data Share Agreement
California Regional MLS (CRMLS) has signed a data share agreement with MLSListings Inc. In this new agreement, CRMLS and MLSListings will share listing data directly, allowing real estate professionals of each multiple listing service access to the other’s listing data and exposure for their listings to nearly 100,000 brokers and agents. Both MLSListings and CRMLS currently use the Matrix system, so the integration of listing data should be smooth, with little or no effect on the user experience. The new partnership will bring over 8,000 active listings to CRMLS’s database of over 80,000, including listings from other data share agreements.
More info

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

The MCAI decreased 0.8 percent to 127.4 in November.  A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit.  The index was benchmarked to 100 in March 2012. Of the four component indices, the Conventional MCAI saw the greatest tightening (down 2.0 percent) over the month followed by the Conforming MCAI (down 1.0 percent), and the Jumbo MCAI (down 0.8 percent). The Government MCAI increased 0.1 percent over the month.

Reductions among ARM programs were the main driver of tightening credit.
More info

Keep Your Home California Can Help with Mortgage Assistance
California homeowners with unaffordable or underwater mortgages could receive as much as $100,000 in free mortgage assistance from Keep Your Home California, but they are encouraged to apply soon while the federally funded program has funds remaining.

The Principal Reduction Program — the only one of the five Keep Your Home California programs that offers the maximum funding of $100,000 with a single payment — has been expanded to assist more homeowners dealing with unaffordable or underwater mortgages, or in many cases both.

Thousands of homeowners who qualified for the program had the outstanding principal balance on their first mortgage reduced, with many also enjoying lower monthly mortgage payments. Homeowners approved for the program have received an average of $75,000 in principal reduction and a 14 percent drop in their monthly payment.

At the current pace, Keep Your Home California funds will be exhausted by early 2017, meaning the program could stop accepting applications by the end of 2016.
More info

37,000 Completed Foreclosures in October 2015
Corelogic recently released its October 2015 National Foreclosure Report which shows foreclosure inventory declined 21.5 percent and completed foreclosures declined 27.1 percent compared with October 2014. The number of completed foreclosures nationwide decreased year over year from 51,000 in October 2014 to 37,000 in October 2015. The number of completed foreclosures in October 2015 was down 68.2 percent from the peak of 117,543 in September 2010.

As of October 2015, the national foreclosure inventory included approximately 463,000, or 1.2 percent, of all homes with a mortgage compared with 589,000 homes, or 1.5 percent, in October 2014. This is lowest rate since November 2007.

CoreLogic also reports that the number of mortgages in serious delinquency (defined as 90 days or more past due, including those loans in foreclosure or REO) declined 19.7 percent from October 2014 to October 2015 with 1.3 million mortgages, or 3.4 percent, in this category. This is the lowest serious delinquency rate since December 2007.
More info

Fast Facts

Calif. median home price: California 2015:

  • California: $475,990
  • Calif. highest median home price by region/county: Marin, $1,207,140
  • Calif. lowest median home price by region/county: Kings, $183,330

Calif. Pending Home Sales Index:
Pending home sales increased in October, with the Pending Home Sales Index (PHSI) rising 2.5 percent from a revised 110.7 in September to 113.4 in October


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

Mortgage rates: Week ending 12/3/2015 (Source: Freddie Mac)

  • 30-yr. fixed: 3.93% fees/points: 0.6%
  • 15-yr. fixed: 3.16% fees/points: 0.5%
  • 1-yr. adjustable: 2.61% Fees/points: 0.3%

FHA Announces New Loan Limits
The Federal Housing Administration (FHA) has announced the agency's new schedule of loan limits for 2016. These loan limits are effective for case numbers assigned on or after Jan. 1, 2016, and will remain in effect through the end of the year.

Due to changes in housing prices, the maximum loan limits for forward mortgages increased in 188 counties.  There were no areas with a decrease in the maximum loan limits for forward mortgages.

Each year, FHA recalculates its loan limits based on 115 percent of the median house price in the area. For counties, or equivalent, located in Metropolitan Statistical Areas (MSAs) the limit for all areas in the MSA is calculated based on the highest cost county.

There is no change to the FHA national loan limit “ceiling” which remains at $625,500 and the "floor" which remains at $271,050.   FHA’s minimum national loan limit "floor" is set at 65 percent of the national conforming loan limit of $417,000. The floor applies to those areas where 115 percent of the median home price is less than 65 percent of the national conforming loan limit.

Any area where the loan limit exceeds the "floor" is considered a high cost area. The maximum FHA loan limit "ceiling" for high cost areas is 150 percent of the national conforming limit.
More info


- - - - - - -

 

San Francisco, L.A., Boston Top Experts' List of Potential Bubble Markets
A third of the experts surveyed in the latest Zillow Home Price Expectations Survey said the San Francisco housing market is in a bubble, and another 20 percent believe the market is at-risk for bubble conditions within the next year.

The survey responses revealed that some housing experts are concerned about over-valuation in some of the nation's hottest housing markets – and that there is significant disagreement among experts about whether the rapid home-value growth in those markets puts consumers at risk.

Some experts said they think bubble conditions are already present in Miami, Los Angeles, Houston, San Diego, and Seattle. A quarter of respondents said they think there is significant risk of a housing bubble in the next three years in Boston. (The same number of panelists said there is no risk of a bubble in Boston in the next five years).
More info


- - - - - - -

C.A.R. Victorious in Beating Back Mortgage Tax
President Obama has signed H.R. 22, the Surface Transportation Reauthorization and Reform Act of 2015, which does NOT include an extension of the higher guarantee-fees set to expire in 2021.  The bill funds several highway and transit-related projects, with monies coming from a variety of sources. While the Senate version of the long-term transportation bill included this "mortgage tax" to pay for transportation infrastructure, the final version does not. This is a HUGE win for REALTORS® and their clients.

In November, the House of Representatives approved a long-term-transportation bill with an amendment to exclude the tax. C.A.R. and the NATIONAL ASSOCIATION OF REALTORS® vigorously opposed the "add-on" fee for all new conforming mortgages in order to pay for transportation infrastructure. This "g-fee," which was a disguised tax on home buyers, would have cost average California home buyers more than $8,100 over the life of their mortgage on a new home purchase or refinance.

C.A.R. thanks its members, local Association Executives and local Association Government Affairs Directors for their support and efforts in successfully beating back this tax and helping to meet its goal of exceeding a 20 percent response rate to the Call-for-Action. Nearly 31,000 California REALTORS® called or emailed Congress to oppose this proposal.


- - - - - - -

35 Percent of U.S. Markets at New All-Time Home Price Peaks in 2015
RealtyTrac released its October 2015 U.S. Home Sales Report, which shows that among 94 major metro areas analyzed for the report, 33 markets (35 percent) have now reached new all-time home price peaks in 2015.

The report also shows that the median sales price of U.S. single family homes and condos in October was $207,500, up 1 percent from the previous month and up 10 percent from a year ago — the highest year-over-year percentage increase since February 2014.

The 10 percent increase in October 2015 came following 20 consecutive months of single-digit annual increases in median home sales prices and marked the 44th consecutive month with a year-over-year increase in median home prices. Despite nearly four years of increases, the U.S. median sales price in October was still 9 percent below the previous peak of $228,000 in July 2005.

There were a total of 2,815,704 single family homes and condos sold in the first 10 months of 2015, according to public record sales deeds collected by RealtyTrac. That was a nine-year high for the first 10 months of the year and a 6 percent jump from the same time period in 2014, when there were a total of 2,667,436 single family and condos sold in the first 10 months of the year.

Major markets with double-digit appreciation compared to a year ago included Palm Bay, Fla. (up 15 percent), Modesto, Calif. (up 14 percent), Raleigh, N.C. (up 14 percent), Washington, D.C. (up 13 percent), Philadelphia, Penn. (up 13 percent), and Ocala, Fla. (up 13 percent).
More info


- - - - - - -

Homeowners Reap Remodeling Benefits Whether Selling or Staying

Homeowners preparing to sell often make improvements, both big and small, to their homes that can help yield positive results and garner top dollar from buyers. According to a new report from the NATIONAL ASSOCIATION OF REALTORS®, remodeling projects also can bring major benefits to homeowners who choose to remain in their homes.

According to NAR's 2015 Remodeling Impact Report, which uncovers the reasons homeowners choose a remodel and the increased happiness certain projects bring once completed, 64 percent have experienced increased enjoyment in their home after completing a remodeling project. Additionally, 75 percent of respondents said they felt a major sense of accomplishment when thinking of their completed project. Fifty-four percent of respondents felt happy about the changes to their home, and 40 percent felt satisfied. As for their reasons to complete a remodeling project, 38 percent of homeowners said they wanted to upgrade worn-out surfaces, finishes and materials; 17 percent wanted to add features and improve livability; and 13 percent believed it was time for a change.

Realtors® named kitchen upgrades, complete kitchen renovations, bathroom renovations and new wood flooring as the interior projects that most appeal to potential buyers. Similarly, Realtors® also ranked projects based on expected value at resale (without accounting for project price); the projects that ranked the highest in this category were complete kitchen renovations, kitchen upgrades, bathroom renovations and the addition of a bathroom.

More info

 
 

 

 

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

​Reprinted with permission

Copyright © 2015 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

Powered By Blackbaud


 
CALIFORNIA ASSOCIATION OF REALTORS
CALIFORNIA ASSOCIATION OF REALTORS
 C.A.R. Newsline  
 
     
  12/2/2015
 
 
  Realtor.com forecast predicts healthy market
  Home insurance estimates available through zipForm®
  Affordability to drive first-time buyers to suburbs in 2016
  C.A.R. Legal App Now Available
  Home Prices Up in October
  Additional stories
 
 

Lack of Affordable Options Will Drive First-Time Buyers Out to the Suburbs in 2016
A lack of affordable homes near city centers will push new and first-time home buyers to suburbs that feel like walkable, amenity-rich mini-cities, according to Zillow’s 2016 Housing Market Predictions. Rising rents will force more young renters to wait longer before buying a home, and the looming threat of rising mortgage interest rates will slowly erode some of the terrific mortgage affordability the market has enjoyed for the past few years.

Highlights from Zillow’s Market Predictions include:

  • The median age of first-time buyers will reach new highs in 2016 as millennials put off homeownership and other major life decisions.
  • Growth in home values will outpace incomes, especially for low-income Americans. In 2016, those whose incomes fall in the bottom third of all incomes will be priced out of homeownership and unable to afford even the least expensive homes on the market.
  • Rising rents won't let up in 2016, and will continue to set new records. The next year will bring the least affordable median rents ever.
  • As affordable housing close to city centers grows increasingly scarce, people will move farther out. Dense, walkable suburbs with an urban feel – especially those that offer good access to the city – will be 2016's new hot spots.
  • The median expectation of more than 100 economic and housing experts surveyed in the latest Zillow Home Price Expectations Survey was for home values to grow about 3.5 percent in 2016. 

More info

Report Shows Home Prices Up Year Over Year in October
CoreLogic recently released its CoreLogic Home Price Index (HPI) and HPI Forecast data for October 2015 which shows home prices are up both year over year and month over month.

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

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

Pending Home Sales Nudge Forward in October
Pending home sales were mostly unchanged in October, but shifted marginally higher after two straight months of declines, according to the NATIONAL ASSOCIATION OF REALTORS®. Gains in the Northeast and West were offset by declines in the Midwest and South.

The Pending Home Sales Index, a forward-looking indicator based on contract signings, inched 0.2 percent to 107.7 in October from an upwardly revised 107.5 in September and is now 3.9 percent above October 2014 (103.7). The index has increased year-over-year for 14 consecutive months.

The PHSI in the Northeast rose 4.5 percent to 93.6 in October, and is now 6.8 percent above a year ago. In the Midwest the index declined 1.0 percent to 103.9 in October, but remains 3.3 percent above October 2014.

Pending home sales in the South decreased 1.7 percent to an index of 118.1 in October and are now 0.3 percent below last October. The index in the West climbed 1.7 percent in October to 106.2, and is 10.4 percent above a year ago.
More info

Fast Facts

Calif. median home price: California 2015:

  • California: $475,990
  • Calif. highest median home price by region/county: Marin, $1,207,140
  • Calif. lowest median home price by region/county: Kings, $183,330

Calif. Pending Home Sales Index
Pending home sales increased in October, with the Pending Home Sales Index (PHSI) rising 2.5 percent from a revised 110.7 in September to 113.4 in October 


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

Mortgage rates: Week ending 11/25/2015 (Source: Freddie Mac)

  • 30-yr. fixed: 3.95% fees/points: 0.7% 
  • 15-yr. fixed: 3.18% fees/points: 0.6% 
  • 1-yr. adjustable: 2.59% Fees/points: 0.3%
 

Realtor.com® Forecast Predicts Healthy Market
New home construction and moderate gains in the existing home market will deliver the necessary one-two punch to push total home sales to the highest levels since 2006, according to the recently released 2016 housing forecast issued by realtor.com®. The forecast also identifies the top 10 markets for growth, as well as expectations for home prices and sales, interest rates, and new home sales and starts.

Highlights from the forecast include:

  • The 2016 housing market is expected to be a picture of moderate, but solid growth as acceleration in existing home sales and prices both slow to 3 percent year over year due to higher mortgage rates, continuing tight credit standards, and lower affordability.
  • Total sales for existing and new homes will reach 6 million for the first time since 2006, a result of a strong gross domestic product increase of 2.5 percent and continued job creation. 
  • Next year's standout year in total sales will be driven by three distinct segments of home buyers – older millennials (25-34 years old), younger gen X'ers (35-44 years old), and retirees (65-74 years old), according to realtor.com.

More info

 

 

Home Insurance Estimates Available Through zipForm®
Get an instant home insurance estimate for clients directly through zipForm®. zipLogix® has recently partnered with Answer Financial®, one of the largest personal lines insurance agencies in the U.S., to offer members this valuable new service.
 
To locate this new service, logi n to your zipForm® account and click the “Services” tab at the top. Locate “Answer Financial” and hit the “Go” button. Answer a few questions about the property and complete the form. The home insurance estimate1 (in PDF format) will automatically display within your zipForm® account for you to email the estimate to your client.
Learn more

1Rate is an estimate only off information given and is subject to change. Eligibility is subject to meeting applicable underwriting criteria.

 

 

 

 

 
 
 

 

 

 

     

 

This message was sent to breidyiii@gmail.com. Visit your subscription management page to modify your email communication preferences or to update your personal profile. To stop receiving this email in the future, click to remove yourself from this list.

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

ADVERTISING INQUIRIES: learn how you can advertise in this email newsletter.

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.

QUESTIONS OR COMMENTS: contact C.A.R.      

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

 
 

Copyright © 2015 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

 
 
 




CALIFORNIA ASSOCIATION OF REALTORS CALIFORNIA ASSOCIATION OF REALTORS
C.A.R. Newsline
11/25/2015
 
Table of contents
» Average Down Payments Rise as Housing Demand Increases
» Buyers Bought Bigger Homes in 2015
» C.A.R. Disappointed FHFA Did Not Increase GSE Conforming Loan Limits
  Home Prices Increase Nationwide in September
» U.S. Housing Market Recovery Inches Forward
» Additional stories
-----------------
 

C.A.R. Disappointed FHFA Did Not Increase GSE Conforming Loan Limits
The Federal Housing Finance Agency’s (FHFA) announced yesterday it is keeping the 2016 maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac at $417,000 on one-unit properties and a cap of $625,500 in high-cost areas. Loan limits were increased in Monterey, Napa, San Diego, and Sonoma counties. In response, C.A.R. issued the following statement: in response to the:

"C.A.R. is disappointed that the FHFA didn’t raise the Fannie Mae and Freddie Mac conforming loan limits for next year,” said C.A.R. President Ziggy Zicarelli.  "Home prices in California have risen sharply over the past four years, yet conforming loan limits haven’t changed during that time.  Not increasing the loan limits will hurt California’s housing market, further exacerbating housing affordability and preventing tens of thousands of California homebuyers from a chance at homeownership."
More info

U.S. Housing Market Recovery Inches Forward
Freddie Mac recently released its updated Multi-Indicator Market Index (MiMi) showing the U.S. housing market continuing to slowly stabilize.

The national MiMi value stands at 81.3, indicating a housing market that is on its outer range of stable housing activity, while showing an improvement of +0.67 percent from August to September and a three-month improvement of +1.85 percent. On a year-over-year basis, the national MiMi value has improved +5.79 percent. Since its all-time low in October 2010, the national MiMi has rebounded 37 percent, but remains significantly off from its high of 121.7.

Highlights from the MiMi include:

  • Thirty of the 50 states plus the District of Columbia have MiMi values in a stable range.
  • Fifty of the 100 metro areas have MiMi values in a stable range, with Fresno, Calif. (100.2); Austin, Texas (97.4); Honolulu, Hawaii (95.6); Salt Lake City, Utah (94.5); and Los Angeles, Calif. (94.3) ranking in the top five. Compared to the same time last year, 30 of the top 100 metros had MiMi values in a stable range.
  • The most improving states month-over-month were Florida (+1.58%), Colorado (+1.49%), South Carolina (+1.45%), Utah (+1.22%), and Mississippi (+1.21%). On a year-over-year basis, the most improving states were Florida (+13.34%), Oregon (+11.52%), Colorado (+11.31%), Washington (+10.49 %), and Nevada (+10.14%).
  • In September, 46 of the 50 states and 92 of the top 100 metros were showing an improving three- month trend. The same time last year, 37 of the 50 states, and 82 of the top 100 metro areas were showing an improving three-month trend.

More info

One in Three Regret DIYing a Home Improvement Project
Three-quarters of homeowners completed a do-it-yourself (DIY) project in the past three years. However, nearly 40 percent of them wish they hadn't, according to a new survey from Zillow Digs.

Attempting to add or expand a room to a home, such as a bathroom or bedroom, was the biggest DIY regret among homeowners surveyed, with more than half of respondents (53 percent) unhappy with some aspect of the project. Homeowners had fewest regrets around minor projects like replacing light fixtures or cabinet hardware. Less than 20 percent of homeowners regretted taking on those projects. 

While many people choose to tackle home improvement projects themselves to save money, nearly a quarter of those surveyed said their DIY project went over budget. This was especially true for larger-scale renovations, like building a new deck or refinishing a basement. Instead, DIYers were more likely to stay within budget on smaller projects such as painting or replacing plumbing fixtures.
More info

Fast Facts

Calif. median home price: California 2015:

  • California: $475,990
  • Calif. highest median home price by region/county: Marin, $1,207,140
  • Calif. lowest median home price by region/county: Kings, $183,330

Calif. Pending Home Sales Index:
Pending home sales increased in October, with the Pending Home Sales Index (PHSI) rising 2.5 percent from a revised 110.7 in September to 113.4 in October


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

Mortgage rates: Week ending 11/25/2015 (Source: Freddie Mac)

  • 30-yr. fixed: 3.95% fees/points: 0.7%
  • 15-yr. fixed: 3.18% fees/points: 0.6%
  • 1-yr. adjustable: 2.59% Fees/points: 0.3%

Average Down Payments Rise as Housing Demand Increases
Average down payment percentages for conventional 30-year fixed rate purchase mortgage offers rose slightly in the third quarter to an average of 17.63 percent, up slightly from 17.34 percent in the prior quarter and 16.29 percent in Q3 2014, according to the latest national down payment report released by LendingTree. The average down payment amount also rose quarter-over-quarter to $48,924, a sizeable increase from the previous quarter's average of $44,204. The average down payment for all purchase mortgages, including FHA, VA, non-prime, and jumbo mortgages in the second quarter was $49,127 or 15.41 percent.

The average down payment on an FHA mortgage in the third quarter was 7.99 percent, or $15,391, representing a slight increase from Q2 2015. The average down payment on a jumbo mortgage was 23.98 percent, or $170,185.
More info


- - - - - - -

 

Buyers Bought Bigger Homes in 2015
In almost every region of the United States, buyers are trading up and buying bigger homes than last year, according to NAR’s 2015 Profile of Home Buyers and Sellers. The report found that 42 percent of all buyers traded up in the size of their home, an increase from 40 percent in 2014. In the 2014 report, buyers reported that they were looking for homes similar in size at 31 percent compared to 29 percent in 2015. Regionally, the percentage of buyers looking for larger homes increased across the board.

One reason for this shift in purchasing power is that people finally have more equity from selling their previous homes in order to buy a bigger one. Since the housing downturn in 2010, many homes were worth less than their mortgages. Over the last several years, home prices have been rising. In 2014, 17 percent reported waiting or stalling to sell their home, which dropped to 13 percent in 2015. Sellers also reported that they sold their homes for a median of $40,000 more than they purchased it, up from $30,100 in 2014. The most common reason for selling a home in 2015 was that the home was too small at 16 percent.
More info


- - - - - - -

Home Prices Increase Nationwide in September
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 over the last 12 months.

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 4.9 percent annual increase in September 2015 versus a 4.6 percent increase in August 2015. The 10-City Composite increased 5 percent in the year to September compared to 4.7 percent previously. The 20-City Composite’s year-over-year gain was 5.5 percent versus 5.1 percent in the year to September. After adjusting for the CPI core rate of inflation, the S&P/Case Shiller National Home Price Index rose 3 percent from September 2014 to September 2015.

San Francisco, Denver and Portland reported the highest year-over-year gains among the 20 cities with double-digit price increases of 11.2 percent, 10.9 percent, and 10.1 percent, respectively. Seventeen cities reported greater price increases in the year ending September 2015 versus the year ending August 2015. Phoenix had the longest streak of year-over-year increases, reporting a gain of 5.3 percent in September 2015, the tenth consecutive increase in annual price gains.
More info


- - - - - - -

California Pending Home Sales Bounce Back in October
Pending home sales bounced back from the previous month at the statewide level in October, the C.A.R. reported this week. Pending sales were also significantly higher on an annual basis, portending higher closed escrows in the next couple of months.

Highlights from the report include:

  • Statewide pending home sales increased in October, with the Pending Home Sales Index (PHSI) rising 2.5 percent from a revised 110.7 in September to 113.4 in October, based on signed contracts. The month-to-month gain was better than the average increase of 0.9 percent from September to October observed in the last seven years.
  • On an annual basis, statewide pending home sales were up 13.9 percent from the revised 99.5 index recorded in October 2014. Pending sales have been increasing on a year-over-year basis since November 2014 and have seen double-digit increases for nine straight months.
  • Pending home sales in Southern California increased to 94.3 in October, up 9.8 percent from 85.9 in September and up 9 percent from an index of 86.5 a year ago.

More info


- - - - - - -

U.S. House Prices Rise 1.3 Percent in Third Quarter
U.S. house prices rose 1.3 percent in the third quarter of 2015 according to the FHFA"s House Price Index (HPI). This is the 17th consecutive quarterly price increase in the purchase-only, seasonally adjusted index. FHFA’s seasonally adjusted monthly index for September was up 0.8 percent from August. House prices rose 5.7 percent from the third quarter of 2014 to the third quarter of 2015.

The HPI is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac.

While the purchase-only HPI rose 5.7 percent from the third quarter of 2014 to the third quarter of 2015, prices of other goods and services fell 1.3 percent. The inflation-adjusted price of homes thus rose approximately 7.1 percent over the latest year.
More info

 
 

 

 

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, maryb@car.org

Copyright © 2015 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

Powered By Blackbaud




CALIFORNIA ASSOCIATION OF REALTORS
CALIFORNIA ASSOCIATION OF REALTORS
C.A.R. Newsline

 
Table of contents
   
» FHA Eases Condo Project Approval Requirements
» Down Payment for Home Not a Top Priority for Renters
  California Home Sales and Price Decrease in October
» Mortgage Foreclosures, Delinquencies Continue to Drop
» Additional stories
Down Payment for Home Not a Top Priority for Renters

Although renters are saving money for numerous priorities, a down payment on a home is not at the top of their list, according to a recent survey by Freddie Mac. Additionally, the survey found that Gen Xers are more likely than millennials or Boomers to buy a home in the next three years.

For the Freddie Mac quarterly online survey, renters currently saving for all listed goals place a higher priority on saving money for an emergency/unexpected expense (59 percent), retirement (51 percent), and children's education (50 percent) than a down payment on a home (39 percent) or a vacation (26 percent). They also indicate that they are behind in saving for those things.

Looking across generations, millennial renters are more likely to be saving for short- and long-term goals than Boomer and Gen X renters. For example, millennial renters are more likely to be saving for a major purchase (92 percent) and a vacation (94 percent), when compared to Boomers (82 percent and 81 percent respectively) and Gen Xers (77 percent and 75 percent, respectively).
More info

Mortgage Foreclosures, Delinquencies Continue to Drop
The delinquency rate for mortgage loans on one-to-four-unit residential properties decreased to a seasonally adjusted rate of 4.99 percent of all loans outstanding at the end of the third quarter of 2015.  This was the lowest level since the first quarter of 2007.  The delinquency rate decreased 31 basis points from the previous quarter, and 86 basis points from one year ago, according to the Mortgage Bankers Association's (MBA) National Delinquency Survey.

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 third quarter was 1.88 percent, down 21 basis points from the second quarter and 51 basis points lower than one year ago. This was the lowest foreclosure inventory rate seen since the third quarter of 2007.

The percentage of loans on which foreclosure actions were started during the third quarter was 0.38 percent, a decrease of two basis points from the previous quarter, and down six basis points from one year ago. The foreclosure starts rate is at the lowest level since the second quarter of 2005.

The serious delinquency rate, the percentage of loans that are 90 days or more past due or in the process of foreclosure, was 3.57 percent, a decrease of 38 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

Down Payments Posing a Roadblock for Renters to Become Owners
Paying for a mortgage is still more affordable than renting in the U.S., but saving enough money for a down payment has become increasingly difficult for first-time buyers, especially in markets where home values are rising rapidly, according to an analysis by Zillow.

With the majority of renters in the largest metros putting about 30 percent of their monthly income toward a rental payment, saving money for a 20 percent — or even 10 percent — down payment is extremely difficult. First-time home buyers and millennials are left trying to find other ways to break into the housing market, turning to friends and family for financial help. In 2014 alone, 13 percent of home purchases were bought using a loan or gift from friends or family for the downpayment.
More info

C.A.R. Installs 2016 Leadership Team
C.A.R. has installed its 2016 Leadership Team, consisting of C.A.R. President Pat “Ziggy” Zicarelli, a second-generation REALTOR® and broker in Southern California, President-elect Geoff McIntosh, Treasurer Jared Martin, and Chief Executive Officer Joel Singer. The 2016 officers began their official term at the close of NAR’s Conference and Expo in San Diego.

Active in organized real estate since 1976, Zicarelli previously served as C.A.R. president-elect and has served in other leadership positions for his local, state, and national associations of REALTORS®.

Geoff McIntosh is broker and co-owner of Main Street REALTORS® in Long Beach, Calif.  He previously served as the Association’s treasurer in 2014 and 2015. He oversees the activities of his 230-plus REALTORS® and also serves the real estate needs of his own clients. 

Jared Martin is a Central Valley real estate broker and one of the owners of a real estate franchise, Keller Williams Westland Realty, in Fresno, Calif. As a third-generation REALTOR®, he has worked with his family’s business for the past 14 years.

C.A.R. CEO Joel Singer has held the Association's top staff position since November 1989 after serving as C.A.R.'s chief economist and heading the Association's public affairs department.
More info
 
 
Building Permits Rise, Housing Starts Fall in October
Building permits for single-family homes rose 2.4 percent in October to a rate of 711,000, according to the U.S. Census Bureau and the Department of Housing and Urban Development

Meanwhile, single-family housing starts fell 2.4 percent in October to a rate of 722,000.

Single-family housing completions were at a rate of 640,000 in October, 0.5 percent below the revised September rate of 643,000.
More info
 
 
 

NAR Offering zipForm® Plus, zipTMS™ as Member Benefits
Last week, NAR’s board of directors approved a partnership with zipLogix – creators of zipForm® Plus (Forms Software) and zipTMS™ (Transaction Management Software — to provide zipForm® Plus, zipTMS®, an NAR forms library, and local and state forms  as free member benefits nationwide. C.A.R. members have received online forms as a free member benefit since 2002. Now, in addition to zipForm® Plus, C.A.R. members also will receive zipTMS™ and the NAR library as free member benefits beginning Jan. 1, 2016.

zipTMS™ offers real estate professionals the ability to track and manage all transaction information and activities from listing through closing, including: listing and sale information, transaction contacts, documents, client satisfaction, and all communication. C.A.R. members will have access to this new free member benefit beginning Jan. 1, 2016.

- — - — - — -

 

FHA Eases Condo Project Approval Requirements
The Federal Housing Administration (FHA) recently published new guidelines under its condominium approval process intended to increase affordable housing options for first-time and low- to moderate-income home buyers.  Effective immediately, FHA’s temporary guidance will streamline the agency’s condominium recertification process and expand the eligibility of acceptable ‘owner-occupied’ units to include second homes that are not investor-owned.

These provisions will expire in one year and serve to revise FHA’s condominium approval process until the agency can implement a more comprehensive condominium rule change.  The guidance:

  • Modifies the requirements for condominium project recertification;
  • Revises the calculation of FHA’s required owner-occupancy percentage; and
  • Expands eligible condominium project insurance coverages.

More info


- — - — - — -

California Home Sales and Price Decrease in October
California’s housing market softened in October as both statewide sales and median price contracted from the previous month and is still on target to meet forecast projections, C.A.R. reported this week.

Home sales exceeded the 400,000 level in October for the seventh consecutive month and posted higher on a year-to-year basis for the ninth straight month. Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 403,510 units in October, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.

The October figure was down 5.1 percent from the revised 425,120 level in September and up 1.3 percent compared with home sales in October 2014 of a revised 398,510. The year-to-year increase was the lowest since January 2015 and was significantly below the six-month average of 9.7 percent observed between April 2015 and September 2015.

The median price of an existing, single-family detached California home slipped 1.3 percent in October to $475,990 from a revised $482,150 in September.  October’s median price was 5.7 percent higher than the revised $450,460 recorded in October 2014.
More info


- — - — - — -

Builder Confidence Drops Three Points in November
Builder confidence in the market for newly constructed single-family homes slipped three points to 62 in November from an upwardly revised October reading 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.

Two of the three HMI components posted losses in November. The index measuring sales expectations in the next six months fell five points to 70, and the component gauging current sales conditions decreased three points to 67. Meanwhile, the index charting buyer traffic rose one point to 48.
More info


- — - — - — -

Fast Facts

Calif. median home price: September 2015:

  • California: $475,990
  • Calif. highest median home price by region/county: San Francisco, $1,294,120
  • Calif. lowest median home price by region/county: Kings, $183,330

Calif. Pending Home Sales Index
September 2015: Decreased 1.5 percent from a revised 112.4 in August to 110.8 in September.


Calif. Traditional Housing Affordability Index: Second Quarter 2015: 30 percent (Source: C.A.R.)

Mortgage rates: Week ending 11/12/2015 (Source: Freddie Mac)

  • 30-yr. fixed: 3.98% fees/points: 0.6%
  • 15-yr. fixed: 3.20% fees/points: 0.6%
  • 1-yr. adjustable: 2.65% Fees/points: 0.2%
 
Connect with us
FacebookLinkedInTwitterYouTube
   

This message was sent to breidyiii@gmail.com. Visit your subscription management page to modify your email communication preferences or to update your personal profile. To stop receiving this email in the future, click to remove yourself from this list.

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

ADVERTISING INQUIRIES: learn how you can advertise in this email newsletter.

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.

QUESTIONS OR COMMENTS: contact C.A.R.

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

Copyright © 2015 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

Powered By Blackbaud

CALIFORNIA ASSOCIATION OF REALTORS CALIFORNIA ASSOCIATION OF REALTORS
C.A.R. Newsline

 
Table of contents
» Gap Narrows Between Homeowner, Appraiser Valuations
» Claim Your Profile on realtor.com
» Lack of Confidence Keeping Americans on Sidelines
  Housing Sentiment Remains Flat
» Down Payments Posing a Roadblock for Renters to Become Owners
» Additional stories

-----------------
 

Lack of Confidence Keeping Americans on the Sidelines
Although Americans embrace the dream of homeownership, the possibility of losing a hard-earned down payment seems to be discouraging them from taking the plunge, according to a newly released survey of American homeowners and home renters conducted on behalf of ValueInsured. Only 55 percent of renters are confident they will get their down payment back if they were to buy today and have to sell in the next 2-7 years.

If Americans could trust their down payment to be protected, it would be a different story:

  • More than three in five (63 percent) renters say they would be more likely to buy a home sooner if they could have the option to buy down payment protection.
  • More than three in 10 existing homeowners (31 percent) and more than half of millennial homeowners (52 percent) say they would be more likely to buy a new home if they can have the option to buy down payment protection. 
  • 81 percent of renters and 67 percent of homeowners believe that down payment protection would give people more confidence in buying a home.

While down payment protection will not be available for another few months, Americans appear ready to benefit from the financial assurance it offers. Seventy percent of renters say they would purchase down payment protection if they decided to buy a home today. More than three in 10 current homeowners (32 percent) and nearly half (49 percent) of millennial homeowners say that if down payment protection were available when they bought their current home, they would have purchased the coverage.
More info

Down Payments Posing a Roadblock for Renters to Become Owners
Paying for a mortgage is still more affordable than renting in the U.S., but saving enough money for a down payment has become increasingly difficult for first-time buyers, especially in markets where home values are rising rapidly, according to Zillow.

With the majority of renters in the largest metros allocating about 30 percent of their monthly income toward a rental payment, saving money for a 20 percent — or even 10 percent — down payment is extremely difficult. First-time home buyers and millennials are left trying to find other ways to break into the housing market, turning to friends and family for financial help. In 2014 alone, 13 percent of home purchases were bought using a loan or gift from friends or family for the down payment.

Rental affordability worsened in 28 of the 35 largest metros over the past year, and mortgage affordability worsened in just 18 of them.

In 34 of the largest 35 metros, rental affordability is worse than the historical average. Pittsburgh is the only housing market where residents pay less than the historical average for rent, about 25 percent of income; historically, renters in Pittsburgh spent 27 percent.
More info

Fast Facts

Calif. median home price: September 2015:

  • California: $482,150
  • Calif. highest median home price by region/county: San Mateo, $1,200,000
  • Calif. lowest median home price by region/county: Tehama, $188,890

Calif. Pending Home Sales Index
September 2015: Decreased 1.5 percent from a revised 112.4 in August to 110.8 in September.


Calif. Traditional Housing Affordability Index: Second Quarter 2015: 30 percent (Source: C.A.R.)

Mortgage rates: Week ending 11/5/2015 (Source: Freddie Mac)

  • 30-yr. fixed: 3.87% fees/points: 0.6% 
  • 15-yr. fixed: 3.09% fees/points: 0.6% 
  • 1-yr. adjustable: 2.62% Fees/points: 0.2%

Gap Narrows Between Homeowner, Appraiser Valuations
The difference between what homeowners perceived their homes to be worth and what appraisers valued them decreased slightly in October, Quicken Loans reported. Average appraised values in October were 1.98 percent lower than what homeowners estimated according to the national Home Price Perception Index (HPPI). This is the second month the gap between appraiser opinions and homeowner expectations narrowed, although October marks the ninth consecutive month owners overestimated their home’s value.

Home values climbed 1.07 percent in October according to Quicken Loans’ national Home Value Index, the only measure of home values based completely on appraisals. The increase comes after two months of practically flat home value changes. Values continue to rise annually as well, with a 4.01 percent gain compared to October 2014. All four regions measured saw increases. The Northeast had the highest home appreciation, with a 1.94 percent increase. The Midwest, South and West regions all had value growth of less than 1 percent.
More info

- — - — - — -Find Hidden Tax Savings! Keep more of your money with an easy-to-use App that tracks your mileage and receipts easily while being IRS compliant. Take 50% off with code "carsave" at www.taxbot.com!
- — - — - — -

 

Claim Your Profile on realtor.com
C.A.R.’s "Find a REALTOR®" search is replacing current member profiles with new profiles from realtor.com. All C.A.R. members are highly encouraged to claim and update their new profile on the realtor.com site as soon as possible.

The new profile pages on realtor.com let you easily manage and shape your online presence. Once you claim your profile, your new profile automatically will be included in the realtor.com® "Find a REALTOR®" directory, boosting your visibility and referral potential. Plus, your new profile also will be easier for search engines to locate you when potential clients are actively searching for a REALTOR®.

Claim your profile in 3 easy steps:

  1. Visit: www.realtor.com/realestateagents/ and search for yourself.
  2. Once you find your profile, click on "View full profile."
  3. Click on "Claim My Profile" and sign into the Control Panel.

(Along with a self-selected password, you will need to know your MLS and MLS identifier in order to complete the sign-up process.)

- — - — - — -
Are you taking advantage of all the FREE tools that come with your C.A.R. membership? From zipForm® Plus to continuing ed, e-signatures to legal advice, they're FREE to you as a member! Read more about your member benefits!
- — - — - — -

Housing Sentiment Remains Flat
Fannie Mae’s Home Purchase Sentiment Index (HPSI) decreased slightly to 83.2 in October as consumers’ volatile outlook on both household income improvement and mortgage interest rates kept housing sentiment relatively flat.

Fannie Mae’s October 2015 Home Purchase Sentiment Index (HPSI) decreased 0.6 percentage points to 83.2 in October following a 3-point increase last month to near its peak level.

Highlights from the Index include:

  • The share of respondents who say that it is a good time to buy a house fell 2 percentage points to 34 percent after climbing the prior two months.
  • The percentage of respondents who say it is a good time to sell a house fell 6 percentage points to 10 percent in October, dropping from September’s survey high.
  • The share of respondents who say that home prices will go up rose 2 percentage points to 38 percent.
  • The share of those who expect mortgage interest rates to drop rose 4 percentage points to negative 46 percent, stopping the trend of decreases in the last few months.  

More info

- — - — - — -
Distinguish Yourself in Real Estate! Get the edge you need to excel in your real estate career — earn the GRI Designation. Learn now. >
- — - — - — -

Foreclosure Inventory Declines in September
CoreLogic released its September 2015 National Foreclosure Report which shows that foreclosure inventory declined 24.3 percent and completed foreclosures declined 17.6 percent compared with September 2014. The number of foreclosures nationwide decreased year over year from 67,000 in September 2014 to 55,000 in September 2015. The number of completed foreclosures in September 2015 is a decrease of 52.8 percent from the peak of 117,438 in September 2010.

As of September 2015, the national foreclosure inventory included approximately 470,000, or 1.2 percent, of all homes with a mortgage compared with 621,000 homes, or 1.6 percent, in September 2014.

CoreLogic also reports that the number of mortgages in serious delinquency (defined as 90 days or more past due, including those loans in foreclosure or REO) declined by 21.2 percent from September 2014 to September 2015 with 1.3 million mortgages, or 3.4 percent, in this category. This is the lowest serious delinquency rate since December 2007. The foreclosure rate (defined as the share of all loans in the foreclosure process) was at 1.2 percent as of September 2015, which is back to the December 2007 level.
More info

- — - — - — -
CA leads the nation with 300+ down payment assistance programs! Find out which programs your clients qualify for with C.A.R.'s FREE Down Payment Resource Directory HERE!
- — - — - — -
 
Connect with us
FacebookLinkedInTwitterYouTube
   

This message was sent to breidyiii@gmail.com. Visit your subscription management page to modify your email communication preferences or to update your personal profile. To stop receiving this email in the future, click to remove yourself from this list.

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

ADVERTISING INQUIRIES: learn how you can advertise in this email newsletter.

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.

QUESTIONS OR COMMENTS: contact C.A.R.

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

Copyright © 2015 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

Powered By Blackbaud
CALIFORNIA ASSOCIATION OF REALTORS CALIFORNIA ASSOCIATION OF REALTORS
C.A.R. Newsline

 
Table of contents
» Americans Think Homeownership is a Sound Investment
» Millennials Less Likely to Understand Impact of Major Life Events on Credit
» C.A.R. Legal Hotline App Now Available
  Student Debt, Mortgage Market Confusion, and Declining Marriage Rate Holding Back Housing Market
» Building Permits Fall, Housing Starts Rise in September
» Additional stories

MemberDP_300x250-Taxbot_3-12-15_Maximize tax....jpg
-----------------
 

C.A.R. Legal Hotline App Now Available
C.A.R. members now can access C.A.R. Legal information using a new smartphone app. Through the free app, C.A.R. members can access the following:

  • Recent laws (past three years)
  • Legal Q&As — sorted alphabetically or by category
  • The standard forms area of car.org
  • Custom mobile video player featuring the latest Legal Live and Everyday Ethics webinars.
  • Access to zipForm® Mobile (must have a valid C.A.R. membership)
  • Detailed click-to-call contact us list featuring essential C.A.R. phone numbers and contact information
  • Social media links (C.A.R. official Facebook page, the Member Legal Services Twitter account, and C.A.R.’s official YouTube account)
  • Push notification area

The push notifications will be used to alert members to Calls-to-Action and Red Alerts, as well as other critical legal issues.

Future enhancements will include predicted wait times for the C.A.R. Legal hotline to help members gauge the best time to call.

Get more information and download the app

Student Debt, Mortgage Market Confusion, and Declining Marriage Rate Holding Back Housing Market
Despite a growing economy, the financial pressures of student debt, persistent confusion about the mortgage process, and a continuing nationwide marriage rate decline are important factors combining to slow the housing market, according to the third annual America at Home survey from NeighborWorks America.

The survey found that student loan debt continues to grow as an obstacle in a consumers’ ability to buy a home, as 57 percent of 2015 respondents who acknowledge having student loans said this debt was either "very much" or "somewhat" of an obstacle, compared to 49 percent of 2014 respondents.

Additionally, although mortgage rates remain historically low, a generally steady rise in home prices is outpacing income growth, leading home buyers — especially first-time buyers — to search for ways to build up a down payment. However, nearly 40 percent of respondents have received "nothing at all" in terms of information about down payment assistance programs for middle-income home buyers, programs that could provide thousands of dollars to help bridge a savings gap.

Finally, the housing market is being pressured by changing demographics. Of the respondents surveyed, 43 percent planned to purchase a home when they "got married or moved in with a life partner." This is important for the housing market’s rebound, because the median age at first marriage has increased to 29.3 for men and 27.0 for women, according to the Census Bureau, up from 26.8 and 25.1 years, respectively in 2000.
More info

California Home Sales Ease in September
California existing home sales and median price retreated in September but still posted higher than a year ago, C.A.R. recently reported.

Home sales remained above the 400,000 mark in September for the sixth consecutive month and posted higher on a year-to-year basis for the eighth straight month. Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 425,030 units in September, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.

The median price of an existing, single-family detached California home decreased 2.3 percent in September to $482,150 from a revised $493,510 in August.  September’s median price was 4.3 percent higher than the revised $462,380 recorded in September 2014.

The September figure was down 1.5 percent from the revised 431,630 level in August but up 6.9 percent compared with home sales in September 2014 of a revised 397,490. The year-to-year change was lower than the 6-month average increase of 9.7 percent observed between March 2015 and August 2015.
More info

 

Americans Think Homeownership is a Sound Investment
A vast majority of Americans believe that buying a home is a solid financial decision, and most believe they could sell their home for at least its initial purchase price, according to a new survey from the NATIONAL ASSOCIATION OF REALTORS®. The 2015 National Housing Pulse Survey also found that a preponderance of Americans think that now is a good time to buy a home.

The survey, which measures consumers' attitudes and concerns about housing issues in the nation's 50 largest metropolitan statistical areas, found that more than eight in 10 Americans believe that purchasing a home is a good financial decision, and 68 percent believe that now is a good time to buy a home. Seventy-one percent believe they could sell their house for what they paid for it, a jump of 16 percentage points from 2013.

When asked for reasons about why homeownership matters to them, respondents’ answers did not change significantly from past years. Building equity, wanting a stable and safe environment, and having the freedom to choose their neighborhood remain the top three reasons to own a home.
More info

- - - - - - -CREATE A 7-FIGURE REAL ESTATE BUSINESS
that runs itself -- Peek inside the businesses of
the most successful agents in the country. Get the ads they run to generate dozens of leads every day; the scripts they use, the presentations >> cont’d
- - - - - - -

 

Millennials Less Likely to Understand Impact of Major Life Events on Credit
Millennials are less likely than baby boomers to identify milestone life events that could affect their credit, according to a new survey released by TransUnion. In fact, less than half of millennials surveyed could cite specific major life events that could negatively or positively affect credit, such as divorce (40 percent compared to 57 percent of boomers) or the death of a spouse (26 percent compared to 48 percent of boomers).

According to the survey, consumers of all ages are generally unprepared for life events from a credit perspective because they don’t check their scores before or after the life event. Only 49 percent of all respondents said they checked their credit when planning for or experiencing a milestone, such as marriage, having a child, or becoming unemployed.

Respondents were only slightly more likely to check their credit when taking out a loan than they were when preparing for other life events. Fifty-eight percent indicated they did check their credit when applying for a mortgage and 56 percent said they did when pursuing a student loan.
More info

- - - - - - -
Distinguish Yourself in Real Estate! Get the edge you need to excel in your real estate career - earn the GRI Designation. Learn now. >
- - - - - - -

Building Permits Fall, Housing Starts Rise in September
Single-family authorizations declined 0.3 percent in September to a rate of 697,000 compared with August’s figure of 699,000, according to the U.S. Census Bureau and the Dept. of Housing and Urban Development.

Meanwhile, single-family housing starts rose 0.3 percent to a rate of 740,000 compared with the revised August figure of 738,000.
More info

- - - - - - -
Are you taking advantage of all the FREE tools that come with  your C.A.R. membership?  From zipForm® Plus to continuing ed, e-signatures to legal advice, they're FREE to you as a member!   Read more about your member benefits!
- - - - - - -

Mortgage Fraud Risk Decreases 8.9 Percent
A new Mortgage Fraud Report by CoreLogic shows that as of the end of the second quarter of 2015, mortgage fraud risk decreased 8.9 percent year-over-year, as measured by the Mortgage Application Fraud Risk Index

The analysis found that during the second quarter of 2015, approximately 12,814 mortgage applications, or 0.67 percent of all mortgage applications, contained indications of fraud, as compared with the reported 11,100 or 0.69 percent in the second quarter of 2014.

Among the highlights of the report:

  • The 10 highest risk states in terms of mortgage fraud as measured by CoreLogic remained mostly stable: Florida maintained its position as the nation’s highest risk state; New York moved up to number two from number three in 2014; and Rhode Island fell out of the top ten, being replaced by the District of Columbia.
  • The state with the highest year-over-year growth in mortgage application fraud risk was Louisiana at 17 percent; Kansas had the largest decline at 35.2 percent.
  • Of the six components in the CoreLogic Mortgage Application Fraud Type Indexes, undisclosed mortgage debt risk showed the only increase at 1.7 percent; identity risk had the largest year-over-year decline at 22.7 percent.
  • As has been the case for the past five years, jumbo mortgages have exhibited the highest fraud risk, followed by low-down payment mortgages.

More info

- - - - - - -
Representing Commercial Clients? AIR Commercial Forms are available in zipForm®! Includes 58 forms that provide solutions for your unique commercial situations. Learn More >
- - - - - - -

Fast Facts

Calif. median home price: September 2015:

  • California: $482,150
  • Calif. highest median home price by region/county: San Mateo, $1,200,000
  • Calif. lowest median home price by region/county: Tehama, $188,890

Calif. Pending Home Sales Index
August 2015: Increased 12.8 percent from a to 112.8

Calif. Traditional Housing Affordability Index: Second Quarter 2015: 30 percent (Source: C.A.R.)

Mortgage rates: Week ending 10/15/2015 (Source: Freddie Mac)

  • 30-yr. fixed: 3.82% fees/points: 0.6%
  • 15-yr. fixed: 3.03% fees/points: 0.6%
  • 1-yr. adjustable: 2.54% Fees/points: 0.2%
Connect with us
FacebookLinkedInTwitterYouTube
   

This message was sent to breidyiii@gmail.com. Visit your subscription management page to modify your email communication preferences or to update your personal profile. To stop receiving this email in the future, click to remove yourself from this list.

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

ADVERTISING INQUIRIES: learn how you can advertise in this email newsletter.

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.

QUESTIONS OR COMMENTS: contact C.A.R.

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

Copyright © 2015 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

Powered By Blackbaud
CALIFORNIA ASSOCIATION OF REALTORS CALIFORNIA ASSOCIATION OF REALTORS
C.A.R. Newsline

 
Table of contents
» C.A.R. Releases 2016 California Housing Market Forecast
» Less than One-Third of Americans Shop Around for Mortgage Loans
» NAR to Issue Call for Action on G-Fees
  BRE Alert
» ePUBS Library: Water Conservation Brochure
» Additional stories

Real Estate Express: Your Real Estate Education
-----------------
 

NAR to Issue Call for Action on G-Fees
NAR announced it will launch a new Call-for-Action (CFA) on Thursday, Oct. 15, asking members to contact their Member of Congress and United States Senators in OPPOSITION to using the Fannie Mae and Freddie Mac credit risk guarantee fees (g-fees) to fund the surface transportation reauthorization legislation. The CFA is in response to the announcement by the House Transportation and Infrastructure Committee that it intends to mark-up a bill on Thursday, Oct. 22.

While the details of what will be in the House bill are still unknown, over the summer the Senate passed its long-term transportation funding bill that included a REALTOR® opposed provision that took money from Fannie Mae and Freddie Mac. The taking of this fee and transferring the funds to the Treasury’s general fund turned it into a tax on home buyers.

C.A.R. urges all REALTORS® to respond to the Call-for-Action even if they have already called their Member of Congress to oppose the mortgage tax. C.A.R. also asks that REALTORS® educate and engage their clients in this fight. For more details on how you can help, please click here.

CalBRE Alert
The California Bureau of Real Estate (CalBRE) has recently issued an alert, advising agents that it is taking notice of salespersons who may be acting as or advertising themselves as "independent" real estate licensees. Under California's licensing system, salespersons must always "hang" their license with and work under the supervision of a licensed real estate broker. It is unlawful for a salesperson to conduct licensed real estate activity on his or her own. Further, real estate brokers are required to supervise all salespersons licensed under them.

CalBRE is primarily concerned with two activities. First - property management. A question that is often heard on the C.A.R. Hot Line is "Can a salesperson operate a property management business on his own?" The answer is NO! A property management business must always be operated under the supervision of a licensed real estate broker.

Second - branding as independent licensees. Beginning this year, salespersons have been able to use "team names" and to obtain and use "salesperson-owned fictitious business names." Perhaps due to this change in the law, CalBRE is noticing an upsurge in salespersons branding themselves as independent real estate professionals and acting as such, which is a real estate law violation. CalBRE is also alerting brokers that facilitating such activity by a salesperson is likewise a real estate violation.

Salespersons can use team names and own and use fictitious business names but only when following the legal requirements and when affiliated with and operating under the supervision of a broker. C.A.R.'s Legal Q&A "Fictitious Business Names and Team Names," will help REALTORS® make sure they are following the law. CalBRE has also issued guidance on this.
More info

Homeowners Continue to Overvalue Their Homes
Homeowners overvalued their homes by 2 percent compared with appraiser opinions, according to Quicken Loans’ Home Price Perception Index (HPPI) in September. The gap between the two values narrowed in September compared to the previous month, although the findings marked the eighth consecutive month homeowner estimates outpaced appraiser opinions.

Home values across the U.S. have remained largely unchanged from the previous month. According the national Home Value Index (HVI), home values increased 0.05 percent in September. This negated the 0.05 percent loss reported in August. There has been a 3.11 percent increase in the national average of home values compared to last year. The pace of the increase in September was slightly lower than in August, when the study showed 3.24 percent annual growth. Regionally, the West posted the largest gains, with 0.72 percent monthly and 6.03 percent annual increases. The Northeast and Midwest regions posted both monthly and annual home value losses.
More info

CoreLogic Reports 36,000 Completed Foreclosures in August 2015
CoreLogic recently released its August 2015 National Foreclosure Report, which shows the foreclosure inventory declined 25.2 percent and completed foreclosures declined 20.1 percent compared with August 2014. The number of foreclosures nationwide decreased year over year from 46,000 in August 2014 to 36,000 in August 2015, representing a decrease of 68.9 percent from the peak of 117,357 completed foreclosures in September 2010.

As of August 2015, the national foreclosure inventory included approximately 470,000, or 1.2 percent, of all homes with a mortgage compared with 629,000 homes, or 1.6 percent, in August 2014.

CoreLogic also reports that the number of mortgages in serious delinquency (defined as 90 days or more past due, including those loans in foreclosure or REO) declined by 20.7 percent from August 2014 to August 2015 with 1.3 million mortgages, or 3.5 percent, in this category. This is the lowest serious delinquency rate since January 2008. The foreclosure rate (defined as the share of all loans in the foreclosure process) was at 1.2 percent as of August 2015, which is back to January 2008 levels.
More info

 

 

 

C.A.R. Releases 2016 California Housing Market Forecast
California’s housing market will continue to improve into 2016, but a shortage of homes on the market and a crimp in housing affordability also will persist, according to C.A.R.’s "2016 California Housing Market Forecast," released late last week at CALIFORNIA REALTOR® EXPO in San Jose.

The C.A.R. forecast sees an increase in existing home sales of 6.3 percent next year to reach 433,000 units, up from the projected 2015 sales figure of 407,500 homes sold. Sales in 2015 also will be up 6.3 percent from the 383,300 existing, single-family homes sold in 2014.

The average for 30-year, fixed mortgage interest rates is expected to rise only slightly to 4.5 percent but will still remain at historically low levels.

The California median home price is forecast to increase 3.2 percent to $491,300 in 2016, following a projected 6.5 percent increase in 2015 to $476,300. This is the slowest rate of price appreciation in five years.
More info

- - - - - - -Branded Real Estate Videos for Your Website! Grab 5 customer-favorite videos for your website, to share on social media sites, & more at no cost to you! Click on the "FREE PLAN" button:
- - - - - - -

 

Less than One-Third of Americans Shop Around for Mortgage Loans
Although 92 percent of Americans surveyed have researched prices online before purchasing an item, only 30 percent said they look for better prices when shopping for major financial loans, such as a mortgage or an auto loan, according to LendingTree. Roughly 18 percent stated they never looked for better rates or prices on loans.

More than half of Americans, 56 percent, state they have visited multiple stores to compare prices on a particular item, with approximately 83 percent saying they have used a comparison shopping website such as Amazon, Priceline, or Expedia, yet, among those who do comparison shop online, only 14 percent comparison shop loan products.

LendingTree looked at further consumer data to calculate the amount of money consumers could be missing by not comparison shopping mortgages. Based on the survey, about 32 percent of homeowners looked at only one mortgage rate before buying their home. However interest rates offered to borrowers often vary from lender to lender. In Q3 2015, mortgage shoppers who received offers from at least two lenders through LendingTree experienced an average rate differential of .32 percentage points between the lowest offer and highest offer, a difference of $48.06 per month. Using this information, choosing the lowest offer could save a borrower roughly $17,300 over the life of the loan.
More info

- - - - - - -
STAY CONNECTED TO YOUR CLIENTS EACH MONTH FOR FREE! With the all new ClientDIRECT® email newsletter you can keep your contacts updated with info about their area, the industry, your listings, and more. Log onto www.ClientDIRECT.net and sign up for FREE
- - - - - - -

ePubs™ Library: Water Conservation Brochure
California is in its fourth year of the driest period in recorded history. To keep pace with the demand for water, new state, regional, and local rules have been imposed. To assist with this, C.A.R. created a brochure to educate members and their clients of the minimum statewide requirements and to provide links to relevant water agencies where people can go to learn more about water reduction programs in their area.

REALTORS® can view the brochure by logging in to their ePubs library within zipForm®.

- - - - - - -
Are you getting your C.A.R. Member Discounts? Big Savings on business tools, office supplies, credit screening and more! Save money and maximize your business now! Learn more>
- - - - - - -

Teachers Can Afford More Homes in L.A. than in Salt Lake City
Teachers budgeting the historical norm for housing will have an easier time finding a home in some parts of California than in Salt Lake City or Portland, Ore., according to new research by Zillow.

Homes are cheaper in the middle of the country, but wages are lower, too, and people who live there are accustomed to putting a smaller percentage of their monthly income toward housing. That means the markets with the cheapest homes aren't necessarily the most affordable for every worker.

In Bakersfield, Calif., the median home value is $166,300, and the average annual teacher salary is $61,000 a year. Since people in Bakersfield are accustomed to spending 22 percent of their income on a house payment, a Bakersfield teacher could afford a $310,000 home. In today's market, that includes about 86 percent of the homes on the market — more than anywhere else in the country.

Contrast that with a teacher in Salt Lake City, Utah, where teachers make $38,000 a year and people historically spend the same share — 22 percent — of their incomes on a mortgage payment. There, teachers could buy a $195,000 home — meaning only about a quarter of the homes on the Salt Lake City market would fall within their budget.
More info

- - - - - - -
YOU NEED MORE REFERRALS! Connect with 180,000 REALTORS® throughout CA and start attracting more buyers. Make sure they think of you first! Boost your referral business with C.A.R.’s (click for info…)
- - - - - - -

Fast Facts

Calif. median home price: August 2015:

  • California: $493,420
  • Calif. highest median home price by region/county August 2015: San Francisco, $1,242,650
  • Calif. lowest median home price by region/county August 2015: Siskiyou, $153,330

Calif. Pending Home Sales Index
August 2015: Increased 12.8 percent from a to 112.8

Calif. Traditional Housing Affordability Index: Second Quarter 2015: 30 percent (Source: C.A.R.)

Mortgage rates: Week ending 10/8/2015 (Source: Freddie Mac)

  • 30-yr. fixed: 3.75% fees/points: 0.6%
  • 15-yr. fixed: 2.99% fees/points: 0.6%
  • 1-yr. adjustable: 2.55% Fees/points: 0.2%
Connect with us
FacebookLinkedInTwitterYouTube
   

This message was sent to breidyiii@gmail.com. Visit your subscription management page to modify your email communication preferences or to update your personal profile. To stop receiving this email in the future, click to remove yourself from this list.

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

ADVERTISING INQUIRIES: learn how you can advertise in this email newsletter.

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.

QUESTIONS OR COMMENTS: contact C.A.R.

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

Copyright © 2015 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

Powered By Blackbaud

 
 

 


 
C.A.R. Newsline
   
 
 
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®.
Member Benefit C.A.R. Member Benefit #14: C.A.R. Newsline is a weekly e-newsletter covering vital industry information including economic reports, legislative developments, and new real estate products and service
 
 
RightArrow.gifHome prices continue to rise in May
Average home prices increased by 2.2 percent in May compared with April for both the 10- and 20-City Composites, according to the S&P/Case-Shiller Home Price Indices.
 
Home prices in May declined 1 percent for the 10-City Composite and 0.7 percent for the 20-City Composite. Both Composites and 17 of the 20 MSAs saw increases in annual returns in May compared with April – none of the cities were in California. All 20 cities and both Composites posted positive monthly returns. No cities posted new lows in May 2012.
 
 
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 
RightArrow.gifConsumer confidence increases in July
The Conference Board Consumer Confidence Index, which had declined in June, improved slightly in July, and now stands at 65.9 (1985=100), up from 62.7 in June. The Expectations Index improved to 79.1 from 73.4, while the Present Situation Index decreased slightly to 46.2 from 46.6 a month ago.
 
Consumers' appraisal of current conditions eased in July with those claiming business conditions are "good" declining to 13.8 percent from 14.2 percent, and those saying business conditions are "bad" decreasing to 34.2 percent from 35.9 percent. Consumers' assessment of the labor market also was mixed. Those stating jobs are “hard to get" declined to 40.8 percent from 41.2 percent, while those claiming jobs are "plentiful" decreased to 7.8 percent from 8.3 percent.
 
On the other hand, consumers were generally more optimistic about the short-term outlook in July.  The percentage of consumers expecting business conditions to improve over the next six months rose to 18.9 percent from 16 percent, while those anticipating business conditions will worsen decreased to 14.6 percent from 15.8 percent. Consumers’ outlook for the labor market was also more upbeat in July. Those expecting more jobs in the months ahead increased to 17.6 percent from 14.8 percent, while those anticipating fewer jobs edged down to 20.3 percent from 20.8 percent. The proportion of consumers expecting an increase in their incomes, however, declined to 14.2 percent from 15.3 percent.
 
More info
  
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
RightArrow.gif   C.A.R. to honor military during EXPO
J.R. Martinez, Dancing with the Stars 2011 champion and retired military veteran, will host the CALIFORNIA REALTOR® EXPO Thursday luncheon.  Martinez has been on the motivational speaking circuit for years and will deliver an uplifting presentation on how to overcome life’s adversities and find success in any situation. At this luncheon,
 
C.A.R. will be honoring military members who currently serve, or have served, our country.
C.A.R. needs your help to make this an event to remember! At the Thursday luncheon, C.A.R. will include a short presentation comprised of photographs of our members taken during their active duty. Please email photos to C.A.R. at veterans@car.org.  
 
For luncheon ticket information, visit http://expo.car.org/luncheons.html.
 
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
  
RightArrow.gifShort Sale Soundoff: Short sales expected to peak in 2012: Reuters report
The market for short sales is expected to hit its all-time peak in 2012, largely because bankers are now realizing that this option is more profitable than foreclosures, according to a report from Reuters.
 
   
 
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
   
 
RightArrow.gifFHFA prohibits GSE principal reductions
This week, Edward J. DeMarco, Acting Director of the Federal Housing Finance Agency (FHFA), which oversees Fannie Mae and Freddie Mac, issued a statement that the FHFA would not direct the GSEs to implement the Home Affordable Modification Program Principal Reduction Alternative (HAMP PRA), which would have offered borrowers debt forgiveness.
 
In the statement, DeMarco says, “After extensive analysis of the revised HAMP PRA, including the determination by the Treasury Department to begin using Troubled Asset Relief Program (TARP) monies to make incentive payments to Fannie Mae and Freddie Mac, FHFA has concluded that the anticipated benefits do not outweigh the costs and risks. Given our multiple responsibilities to conserve the assets of Fannie Mae and Freddie Mac, maximize assistance to homeowners to avoid foreclosures, and minimize the expense of such assistance to taxpayers, FHFA concluded that HAMP PRA did not clearly improve foreclosure avoidance while reducing costs to taxpayers relative to the approaches in place today.”
 
 
RightArrow.gifFree YPN webinar
C.A.R.’s Young Professionals Network (YPN) is hosting a free webinar Thursday, Aug. 2, at 12:30 p.m. to discuss business plans and personal financial planning. 
 
During the webinar, Certified Financial Planner Louis Barajas will cover the basics for wealth planning to have a successful and long-term career in real estate.  Barajas has been named one of Money Magazine’s top advisors in America.
 
 
RightArrow.gifResidential vacancies fall in second quarter
National vacancy rates in the second quarter 2012 were 8.6 percent for rental housing and 2.1 percent for homeowner housing, according to the Dept. of Commerce’s Census Bureau. The rental vacancy rate of 8.6 percent was 0.6 percentage points lower than the rate recorded in the second quarter 2011 and 0.2 percentage points lower than last quarter. The homeowner vacancy rate of 2.1 percent was 0.4 percentage points lower than the second quarter 2011 rate and 0.1 percentage point lower than the rate last quarter.
 
The homeownership rate of 65.5 percent was 0.4 percentage points lower than the second quarter 2011 rate and 0.1 percentage point higher than the rate last quarter.
 
In the second quarter 2012, the median asking sales price for vacant for-sale units was $134,600.
 
Approximately 86 percent of the housing units in the United States in the second quarter 2012 were occupied and 14 percent were vacant. Owner-occupied housing units made up 56.4 percent of total housing units, while renter-occupied units made up 29.7 percent of the inventory in the second quarter 2012. Vacant year-round units comprised 10.6 percent of total housing units, while 3.4 percent were for seasonal use.
 
 
RightArrow.gifMarket to your clients with One Cool Thing infographics
In June, C.A.R. launched the One Cool Thing infographic – a new marketing tool for members. The infographic is emailed to members every other week and contains a helpful graphic, statistic, or other bite-sized bit of data that members may use in marketing materials to consumers. This infographic is a great way to get relevant, interesting information about the housing market in front of clients, and is easy to tweet or post to one’s Facebook page. Keep an eye out for the next One Cool Thing to hit inboxes on August 13, or to see past One Cool Thing emails, visit http://www.car.org/aboutus/onecoolthing/.
 
RightArrow.gifCompleted foreclosures decline in June
CoreLogic’s National Foreclosure Report for June, which provides monthly data on completed foreclosures and the overall foreclosure inventory, showed there were 60,000 completed foreclosures in the U.S. in June 2012 compared with 80,000 in June 2011 and 60,000 in May 2012. Since the financial crisis began in September 2008, there have been approximately 3.7 million completed foreclosures across the country. Completed foreclosures are an indication of the total number of homes actually lost to foreclosure.
 
Approximately 1.4 million homes, or 3.4 percent of all homes with a mortgage, were in the national foreclosure inventory as of June 2012 compared with 1.5 million, or 3.5 percent, in June 2011. Month-over-month, the national foreclosure inventory was unchanged from May 2012 to June 2012. The foreclosure inventory is the share of all mortgaged homes in some stage of the foreclosure process.
 
The five states with the highest number of completed foreclosures for the 12 months ending in June 2012 were: California (125,000), Florida (91,000), Michigan (58,000), Texas (56,000), and Georgia (55,000). These five states account for 48.4 percent of all completed foreclosures nationally.
 
The five states with the lowest number of completed foreclosures for the 12 months ending in June 2012 were: South Dakota (39), District of Columbia (81), Hawaii (449), North Dakota (565), and Maine (625).
 
 
RightArrow.gifTip of the Week: FTC halts scam aimed at Spanish-speaking homeowners
At the request of the Federal Trade Commission, a U.S. district court has halted a nationwide scam operating from the Dominican Republic – but pretending to be in Chicago – that allegedly peddled fake mortgage assistance relief to financially distressed Spanish-speaking homeowners in the United States.
 
The defendants promised to dramatically lower homeowners’ monthly mortgage payments in exchange for a large upfront fee, and collected more than $2 million in fees during the last three years, but failed to provide homeowners with the promised services, according to the FTC complaint.
 
RightArrow.gifFast Facts
Calif. median home price: June 2012: $320,540 (Source: C.A.R.)
Calif. highest median home price by region/county June 2012: San Mateo, $825,000 (Source: C.A.R.)
Calif. lowest median home price by region/county June 2012: Merced, $107, (Source: C.A.R.)
 
Calif. Pending Home Sales Index: June 2012: 121.4, down 3.8 percent from May's 126.1. 
  
Calif. Traditional Housing Affordability Index: First quarter 2012: 56 percent (Source: C.A.R.)
 
Mortgage rates: Week ending 7/26/2012 30-yr. fixed: 3.49% fees/points: 0.7% 15-yr. fixed: 2.80 fees/points: 0.7% 1-yr. adjustable: 2.71% Fees/points: 0.5% (Source: Freddie Mac)
 
 
 
 
 
 


 


C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 150,000 REALTORS® statewide. 




 

 

 

Copyright © 2012 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

 
Powered By Convio


 
 

 

C.A.R. Newsline
   
 
 

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®.

Member Benefit C.A.R. Member Benefit #14: C.A.R. Newsline is a weekly e-newsletter covering vital industry information including economic reports, legislative developments, and new real estate products and service

RightArrow.gifBuilding permits, housing starts rise in June
RightArrow.gifCalifornia pending home sales lower in June
RightArrow.gifHome values post first annual increase in nearly five years
RightArrow.gifShort Sale Soundoff: C.A.R. supports FHFH Act
RightArrow.gifHome prices rise, but sales decline in June
RightArrow.gifFannie Mae: Housing remains a bright spot despite overall slowdown
RightArrow.gifC.A.R. launches new digital marketing solution
RightArrow.gifMoody's analyzes impact of widespread use of eminent domain
RightArrow.gifTip of the week: Watch out for fraudulent insurance checks
RightArrow.gifFast Facts

 

RightArrow.gifBuilding permits, housing starts rise in June
Building permits for single-family houses rose 0.6 percent in June compared with May, the U.S. Census Bureau and the Dept. of Housing and Urban Development recently reported.  Housing starts for single-family homes were at a rate of 539,000, 4.7 percent above the revised May figure of 515,000

More info

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

RightArrow.gifCalifornia pending home sales lower in June
A continued lack of housing inventory and slowing economy sent California pending home sales lower in June, but pending sales were still higher than the previous year for the fourteenth straight month, C.A.R. reported Tuesday. 

C.A.R.’s Pending Home Sales Index (PHSI) fell 3.8 percent from a revised 126.1 in May to 121.4 in June, based on signed contracts.  Pending sales were up 4.7 percent from the 115.9 index recorded in June 2011.  June marked the fourteenth consecutive month that pending sales were higher than the previous year, although June’s year-over-year increase was the smallest since April 2011.  Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.

“Pending sales declined in June, partly due to a lack of housing supply – especially in REO properties,” said C.A.R. President LeFrancis Arnold.  “The shortage of REO inventory is also putting upward pressure on bank-owned home prices, with the median price of REO properties showing a double-digit year-over-year gain of 11 percent in June.”

The available supply of REOs for sale tightened slightly in June, with the Unsold Inventory Index declining from a 1.5-month supply in May 2012 to 1.4 months in June 2012.  The June Unsold Inventory Index for equity sales stood at 3.7 months and was 5.3 months for short sales.

More info

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

RightArrow.gifHome values post first annual increase in nearly five years
The Zillow Home Value Index rose in the second quarter on an annual basis for the first time since 2007, increasing 0.2 percent year-over-year to $149,300, according to Zillow's Real Estate Market Reports. Values have risen for four consecutive months.

Nearly one-third of the metro areas covered by the Real Estate Market Reports posted annual increases in home values. 

Looking ahead, two in five markets covered by the Zillow Home Value Forecast are expected to see increases in home values over the next year

Foreclosures continued to fall in June, with 5.8 out of every 10,000 homes lost to foreclosure. Foreclosures have been declining since January, when 7.9 out of every 10,000 homes were lost to foreclosure. This number is expected to increase in the future, as foreclosure starts have increased since the completion of the National Foreclosure Settlement.

Foreclosure resales also fell, making up 15.6 percent of all sales in June. Foreclosure resales have been falling since February, when they made up 18.8 percent of all sales.

More info

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

RightArrow.gifShort Sale Soundoff: C.A.R. supports FHFH Act
C.A.R. is supporting and urging the swift passage of The Fast Help For Homeowners (FHFH) Act, a short sale bill that will require subordinate lien holders to respond to short sale offers within 45 days.  The FHFH Act was introduced last week by Congressman Jerry McNerney (D-Stockton).

“C.A.R. applauds Congressman McNerney for introducing this common-sense piece of legislation,” said C.A.R. President LeFrancis Arnold. “California REALTORS® support the FHFH Act because it will require subordinate lien holders to respond to short sale offers in a fair and reasonable amount of time, ensuring distressed properties are brought to market and aiding in the recovery of the general economy.

“Short sale transactions are difficult as is,” added Arnold. “When subordinate lien holders refuse to respond to offers, additional unnecessary barriers to homeownership are created.  The FHFH Act will eliminate this major hurdle.”

More info

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

RightArrow.gifHome prices rise, but sales decline in June
Total existing-home sales – completed transactions that include single-family homes, townhomes, condominiums, and co-ops – declined 5.4 percent to a seasonally adjusted annual rate of 4.37 million in June from an upwardly revised 4.62 million in May, NAR reported last week.  Sales are 4.5 percent higher than the 4.18 million-unit level recorded in June 2011.

Lawrence Yun, NAR chief economist, said the bigger story is lower inventory and the recovery in home prices. "Despite the frictions related to obtaining mortgages, buyer interest remains solid. But inventory continues to shrink, and that is limiting buying opportunities. This, in turn, is pushing up home prices in many markets," he said. "The price improvement also results from fewer distressed homes in the sales mix."

The national median existing-home price for all housing types was $189,400 in June, up 7.9 percent from a year ago. This marks four back-to-back monthly price increases from a year earlier, which last occurred in February to May of 2006. June's gain was the strongest since February 2006 when the median price rose 8.7 percent from a year prior.

Total housing inventory at the end June fell another 3.2 percent to 2.39 million existing homes available for sale, representing a 6.6-month supply at the current sales pace, up from a 6.4-month supply in May. Listed inventory is 24.4 percent below a year ago when there was a 9.1-month supply.

More info

RightArrow.gifFannie Mae: Housing remains a bright spot despite overall slowdown
A new report by Fannie Mae shows that the housing market continues to show positive signs and remains a bright spot, despite the overall economic slowdown. 

Compared with the same time last year, home sales increased by 9 percent and single-family housing starts are approximately 20 percent higher, though the levels are still considered below healthy norms.  Residential investment is expected to increase this year but from a very low base and is expected to contribute to economic growth for the first time since 2005.

According to Fannie Mae's June 2012 National Housing Survey, homeowners are showing greater confidence in one-year-ahead home price expectations, and their broad attitudes regarding the housing market continue to improve.  The share of polled consumers who say they would buy a home if they were going to move increased by 6 percentage points to the highest level seen in the survey’s two-year history.  This is likely due in part to low interest rates and the assumption that home prices have hit bottom.

More info

RightArrow.gifC.A.R. launches new digital marketing solution
C.A.R. recently announced the launch of Clarus Connect™, a marketing solution that  combines email with social media. Clarus Connect™ is powered by Vertical Response and offers REALTORS® more than 700 professionally designed templates, social media sharing, easy delivery, real-time tracking, affordable pricing, and more.

C.A.R. Members can try it for free today, visit www.verticalresponse.com/clarusconnect to learn more.

RightArrow.gifMoody's analyzes impact of widespread use of eminent domain
After testing out different scenarios, Moody’s Investor Services concluded a widespread adoption of San Bernardino County’s proposed use of eminent domain will increase losses for Residential Mortgage-Backed Security (RMBS) pools by around 30 percent.

The proposal calls for the seizure of underwater mortgages to address the problem of negative equity. Moody’s argues seizing underwater performing loans “would increase RMBS pool losses if other jurisdictions were to adopt it because it would force losses on performing loans that could otherwise have avoided default.”

Through the proposed program, the underwater mortgages would be taken at fair market value and then refinanced into a new mortgage with a lower payment to reflect the current value of the property.

Moody’s explained compensation for the seized mortgages would be about equal to the estimated property value minus foreclosure expenses and unpaid servicer advances.

“The estimated property values would reflect the results of other distressed sales and likely be 15 percent to 20 percent lower than open market prices,” the report stated.

Proponents of the program argue this would provide an incentive for the homeowner to stay current and prevent future defaults and foreclosures.

However, since the proposal includes performing loans, Moody’s argues that the proposal would actually force losses on loans.

“The program would force the write-down of underwater but performing loans by seizing them from trusts, leading the trusts to realize losses on loans that in many cases would have otherwise continued to perform,” Moody’s stated.

More info

RightArrow.gifTip of the week: Watch out for fraudulent insurance checks
The California Dept. of Insurance (CDI) has announced that some checks bearing the name of the department and purportedly signed by the Insurance Commissioner are fraudulent.

According to the warning, checks have been circulated and presented as a “payment” or “refund” from the CDI; however, the department does not issue checks such as these and is warning consumers and businesses to be on alert if they are presented with a check of this type.

Any consumer or business that questions the validity of a check, or persons with information about this fraudulent activity, should contact the CDI at (909) 919-2200.

RightArrow.gifFast Facts
Calif. median home price: June 2012: $320,540 (Source: C.A.R.)
Calif. highest median home price by region/county June 2012: San Mateo, $825,000 (Source: C.A.R.)
Calif. lowest median home price by region/county June 2012: Merced, $107, (Source: C.A.R.)

Calif. Pending Home Sales Index: June 2012: 121.4, down 3.8 percent from May's 126.1. 
 
Calif. Traditional Housing Affordability Index: First quarter 2012: 56 percent (Source: C.A.R.)

Mortgage rates: Week ending 7/19/2012 30-yr. fixed: 3.5% fees/points: 0.7% 15-yr. fixed: 2.8 fees/points: 0.% 1-yr. adjustable: 2.69% Fees/points: 0.4% (Source: Freddie Mac)

 

 
 
 
 

 



C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 150,000 REALTORS® statewide. 





 

 

 

Copyright © 2012 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

 
Powered By Convio


 
 


 


 
C.A.R. Newsline
   
 
 

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®.

Member Benefit C.A.R. Member Benefit #14: C.A.R. Newsline is a weekly e-newsletter covering vital industry information including economic reports, legislative developments, and new real estate products and service

RightArrow.gifDRE issues clarification on self-reporting of disciplinary actions
RightArrow.gifCalifornia consumer confidence hits pre-recession high 
RightArrow.gifCalifornia’s housing market continues improvement in June 
RightArrow.gifShort Sale Soundoff: BofA offers tips to avoid common document errors
RightArrow.gifFannie Mae issues guidance on private transfer fee covenants
RightArrow.gifC.A.R. issues comment letter on FHFA bulk sales
RightArrow.gifForeclosure inventory continues to decline 
RightArrow.gifBuilder confidence reaches highest point since March 2007
RightArrow.gifHUD accepting applications for entities to purchase troubled mortgages
RightArrow.gifNew anti-deficiency protection for refinance loans
RightArrow.gifTip of the Week: Phony short sale approval letters
RightArrow.gifFast Facts

 

RightArrow.gifDRE issues clarification on self-reporting of disciplinary actions
The DRE has issued clarification on a California law that requires real estate licensees to report to the DRE within 30 days of any of the following:

• The bringing of an indictment or information charging a felony against the licensee

• The conviction of the licensee, including any verdict of guilty, or plea of guilty or no contest, of any felony or misdemeanor

• Any disciplinary action taken by another licensing entity or authority of this state or of another state or an agency of the federal government.”

The law requires that any such report is to be made in writing within 30 days “of the date of the bringing of the indictment or the charging of a felony, the conviction, or the disciplinary action,” and that failure to make such a written report shall constitute a cause for discipline.

It is the failure to report that violates the new law. It should be underscored that the Legislature created this section as a “new tool” to enhance the DRE's Enforcement operation and efforts.

This law went into effect Jan. 1, 2012.  Prior to that, the only self-reporting requirements for department licensees were imposed under Commissioner's Regulation 2930 on restricted licensees relative to arrests.

More info

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

RightArrow.gifCalifornia consumer confidence hits pre-recession high 
Chapman University’s California Composite Index of Consumer Confidence increased to 92.3 in the second quarter compared with the first quarter’s revised reading of 89.8. The current reading represents the highest confidence level since the reading of 94.4 in the third quarter of 2007. An index level below 100, however, reflects a higher percentage of pessimistic consumers versus those who are optimistic.

The current economic conditions index increased from a revised February reading of 81.3 to 83.7 in May of 2012. The index measuring future economic conditions however decreased significantly to a reading of 96.2 in May of 2012 from a revised reading of 106.9 in February. The uncertainty emanating from potential tax increases both at the state and federal level is negatively impacting consumers’ outlook for future conditions.

The index measuring consumers’ planned spending on big-ticket items increased substantially from the revised February reading of 72.5. The surge in this index to a reading of 101.7 may have been fueled by lower interest rates particularly mortgage rates. In addition, while high gasoline prices curtailed planned spending in the first quarter of this year, the gradual decline in prices is leaving consumers with a higher disposable income inducing a higher level of planned spending.

More info

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

RightArrow.gifCalifornia’s housing market continues improvement in June 
California’s housing market continued to show signs of improvement in June, as home sales experienced solid gains annually and home prices reached their highest level since August 2010, C.A.R. reported this week.

Closed escrow sales of existing, single-family detached homes in California declined 8.6 percent in June from May’s revised 567,330 to a seasonally adjusted annualized rate of 518,460 in June. Year-over-year, June sales rose 8.5 percent.   The statewide sales figure represents what would be the total number of homes sold during 2012 if sales maintained the June pace throughout the year and is adjusted to account for seasonal factors that typically influence home sales.

Home prices continued to improve, with the median home price posting both month-over-month and year-over-year gains for the fourth consecutive month. The statewide median price of an existing, single-family detached home was $320,540 in June.

June’s price rose 1.3 percent from a revised $316,410 in May and 8.1 percent from a revised $296,410 recorded in June 2011. The June 2012 figure was 30.7 percent higher than the cyclical bottom of $245,230 reached in February 2009.  The median price has posted above the $300,000 level for the third straight month after remaining below that mark for 15 months. 

More info

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

Short Sale Soundoff: BofA offers tips to avoid common document errors
Bank of America has provided a list of required documents to initiate a short sale with an offer in Equator, as well as some best practices to ensure the documents are not rejected.

Required documents:

  • Bank of America Third-Party Authorization Form
  • IRS Form 4506-T
  • 60-day Estimated HUD-1
  • Signed Purchase Contract, including Buyer’s Acknowledgement and Disclosure
  • Bank of America short Sale Purchase Contract Addendum and Short Sale Real Estate Licensee Certification

Agents also should follow these best practices, recommended by Bank of America:

  • Use the correct, current form(s) located on the Agent Resource Center
  • Ensure all documents are completely filled out, signed by all relevant parties and legible
  • Do not upload blank documents or documents with missing information
  • Be sure information across all documents match

The forms listed above can be found at https://agentresources.bankofamerica.com/ss_news_12JUL12

 

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

RightArrow.gifFannie Mae issues guidance on private transfer fee covenants
Effective July 16, 2012; Fannie Mae will not purchase or securitize mortgages on properties encumbered by private transfer fee (PTF) covenants that were created on or after February 8, 2011. Lenders must establish policies and procedures to ensure that the loans it delivers to Fannie Mae, whether or not the loans were originated by the lender, are not secured by properties encumbered with a private transfer fee that is unacceptable under regulation.

Earlier this year, C.A.R. worked with NAR to oppose private transfer fees, as these fees often increase the cost of homeownership and do little more than generate revenue for developers or investors and typically provide no benefit to home buyers.

RightArrow.gifC.A.R. issues comment letter on FHFA bulk sales
C.A.R., which vehemently opposed the bulk sale of REO properties in California, recently issued a comment letter expressing disappointment and frustration with the Federal Housing Finance Agency’s decision to move forward with its REO pilot initiative in the state.

In the letter, C.A.R. explains that despite overwhelming economic data showing the harm that the REO program would have on the impacted neighborhoods, the FHFA decided to proceed with the initiative.

According to C.A.R.’s statistics, the targeted properties are in markets that have seen significant stabilization over the last three years with median home prices now up more than 19 percent from the market’s bottom in the Inland Empire, the area targeted for the initiative.

Read the letter at http://www.car.org/6437/67037/69413/reopi


RightArrow.gifForeclosure inventory continues to decline 
Foreclosure sales in California were down 13.4 percent in June compared with May and 48.8 percent compared with a year earlier, according to a report by ForeclosureRadar.  Notices of Default in the state were down 0.9 percent compared with the month prior.

According to the report, banks in California take an average of 272 days to resell properties they take back at auction. In June, the time to foreclose on a property in California increased 13.2 percent.

More info

RightArrow.gifBuilder confidence reaches highest point since March 2007
Builder confidence in the market for newly built, single-family homes rose six points to 35 on the National Association of Home Builders/Wells Fargo Housing Market Index in July – the largest one-month gain recorded by the index in nearly a decade. The Index now stands at its highest point since March of 2007.

“Combined with the upward movement we’ve seen in other key housing indicators over the past six months, this report adds to the growing acknowledgement that housing – though still in a fragile stage of recovery – is returning to its more traditional role of leading the economy out of recession,” noted NAHB Chief Economist David Crowe. “This is particularly encouraging at a time when other parts of the economy have begun to show softness, and is all the more reason that the challenges constraining housing’s recovery – namely overly tight lending conditions, poor appraisals and the flow of distressed properties onto the market – need to be resolved.”

Every region covered by the Index posted gains in July, with the West gaining 12 points and rising to 44.

More info

RightArrow.gifHUD accepting applications for entities to purchase troubled mortgages
Qualified entities interested in purchasing pools of severely distressed loans formerly insured by the FHA can now submit applications for the Distressed Asset Stabilization Program, an expansion of an FHA disposition program that sells pools of defaulted mortgages headed for foreclosure and provides the opportunity for the purchaser and borrower to avoid foreclosure.

According to loan pool information, approximately 3,500 loans will be sold in four metropolitan areas that are among those hardest hit by the foreclosure crisis – Chicago, IL; Newark, NJ; Phoenix, AZ; and Tampa, FL – aligning with other neighborhood stabilization efforts to help those communities recover as quickly as possible. Details on the Distressed Asset Stabilization Program can be found at www.hud.gov/fhaloansales.

Under the program, loans are sold competitively at a market-determined price generally below the outstanding principal balance. FHA then processes an insurance claim, removes the FHA insurance and transfers the loan to the investor. Once the note is purchased, foreclosure is delayed for a minimum of six additional months, giving the new servicer time to work through alternatives with the borrower, possibly finding an affordable solution to allow the borrower to remain in their home. Because the loans are generally sold for less than what the borrower currently owes, the purchaser has the ability to reduce or modify the loan terms while still making a return on the initial investment. If no viable alternatives exist, the purchaser may be able to help the borrower sell the property through a short sale and avoid the costs of foreclosure.

More info 

RightArrow.gifNew anti-deficiency protection for refinance loans
Starting January 1, 2013, a new California law will protect homeowners who default on their refinance loans from personal liability for any deficiency following foreclosure. Existing anti-deficiency law protects a borrower from personal liability for the difference between the principal balance and what the lender receives at foreclosure if the loan is a purchase money loan secured by an owner-occupied property with one-to-four residential units. The new law, Senate Bill 1069, extends that anti-deficiency protection to include any loan used to refinance the purchase money loan, plus any loan fees, costs, and related expenses for the refinance. The anti-deficiency protection, however, does not extend to any "cash out" in a refinance, which is when the lender advances new principal not applied to any obligation owed under the purchase money loan. This new law does not affect the other anti-deficiency protections for non-judicial foreclosures (or trustee's sales) and seller financing.

This new law only applies to refinance loans or other credit transactions used to refinance a purchase money loan, or subsequent refinances of a purchase money loan, that are executed on or after January 1, 2013. For purposes of this law, any payment of principal shall be deemed to be applied first to the principal balance of the purchase money loan, and then to the principal balance of any new advance and interest payments shall be applied to any interest due and owing.

C.A.R. supported Senate Bill 1069 in the legislative process as many homeowners do not realize that, by refinancing, they lose their anti-deficiency protection for a purchase money loan. Senate Bill 1069 is similar to Senate Bill 1178 sponsored by C.A.R. in 2010, but vetoed by Governor Schwarzenegger. The full text of the law is available at www.leginfo.ca.gov.

RightArrow.gifTip of the Week: Phony short sale approval letters
Homeowners and title insurance companies are being warned about counterfeit short sale approval letters from Bank of America.

Scammers are simulating the lender’s approval letters, including the use of similar language and the bank's logo.

In response, Bank of America is asking those who receive letters to verify their authenticity by calling (866) 880-1232, option 1.

The notice follows the arrest and indictment last month of three California men who were accused of schemes involving short sales.

“In some cases, the defendants used short sale approval letters that had been entirely fabricated to carry out their schemes,” the U.S. Attorney’s Office in Los Angeles said in a statement. “As a result, home buyers and investors purchased homes they thought had a clear title but were actually devalued and subject to hundreds of thousands of dollars’ worth of liens.”

In other instances, defendants claimed to have insiders working at the bank who would approve short sales for less than fair market value, federal officials said in the statement. This allowed the defendants to resell the house for a large profit. In some of the scams, defendants assumed the identities of homeowners and then sold or refinanced the properties.

RightArrow.gifFast Facts
Calif. median home price: May 2012: $312,110 (Source: C.A.R.)
Calif. highest median home price by region/county May 2012: Marin, $791,670 (Source: C.A.R.)
Calif. lowest median home price by region/county May 2012: Merced, $119,410 (Source: C.A.R.)

Calif. Pending Home Sales Index: May 2012: 128.8, unchanged from April. 
 
Calif. Traditional Housing Affordability Index: First quarter 2012: 56 percent (Source: C.A.R.)

Mortgage rates: Week ending 7/12/2012 30-yr. fixed: 3.56% fees/points: 0.7% 15-yr. fixed: 2.86 fees/points: 0.7% 1-yr. adjustable: 2.69% Fees/points: 0.4% (Source: Freddie Mac)

 

 
 
 
 

 



C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 150,000 REALTORS® statewide. 





 




Copyright © 2012 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

 
Powered By Convio


 


 
 


 

C.A.R. Newsline
   
 
 

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®.

Member Benefit C.A.R. Member Benefit #14: C.A.R. Newsline is a weekly e-newsletter covering vital industry information including economic reports, legislative developments, and new real estate products and service

RightArrow.gifGovernor signs California Homeowner Bill of Rights into law
RightArrow.gifHousing scorecard shows promising signs of stability
RightArrow.gifIndex lists metro areas with improving housing markets
RightArrow.gifShort Sale Soundoff: C.A.R. to host Short Sale SWATs
RightArrow.gifC.A.R.’s PRE EXPO offers exclusive session tracks
RightArrow.gifRent increases outpace modest home price rises
RightArrow.gifZillow report shows top markets for buyers, sellers
RightArrow.gifConfidence in housing market continues to remain positive
RightArrow.gifCoreLogic, FICO introduce FICO Mortgage Score
RightArrow.gifTip of the Week: Debt consolidation scams on the rise
RightArrow.gifFast Facts

 

RightArrow.gifGovernor signs California Homeowner Bill of Rights into law
California Governor Jerry Brown signed into law today the Homeowner Bill of Rights to help struggling Californians keep their homes. This law aims to avoid foreclosure where possible to help stabilize California's housing market and prevent the other negative effects of foreclosures on families, communities, and the economy. The new law will generally prohibit lenders from engaging in dual tracking, require a single point of contact for borrowers seeking foreclosure prevention alternatives, provide borrowers with certain safeguards during the foreclosure process, and provide borrowers with the right to sue lenders for material violations of this law.

The Homeowner Bill of Rights has four major components:

  • Prohibiting “dual track” foreclosures that occur when a servicer continues foreclosure while also reviewing a homeowner’s application for a loan modification;
  • Creating a single point of contact for homeowners who are negotiating a loan modification;
  • Expanding notice requirements that must be provided to a borrower before taking action on a loan modification application or pursuing foreclosure; and
  • Allowing injunctions against foreclosure until violations are corrected and permitting civil penalties against servicers that file multiple, inaccurate mortgage documents or commit reckless or willful violations of law.

These new laws make California the first state in the nation to take provisions in the National Mortgage Settlement, which covered the nation’s five largest mortgage loan servicers, and apply those rules to all mortgage servicers.

C.A.R. opposed this well-intentioned legislation because it will encourage the filing of lawsuits intended for delay and further discourage lending.

While C.A.R. is disappointed in the final outcome, the good news is that what has passed is a much-improved version of the package of bills initially sponsored by the Attorney General, which would have originally halted ALL foreclosures, drying up both REO inventory and even short sales. 

C.A.R. will continue to fight for the thoughtful, balanced reform of the foreclosure process.  For example, C.A.R. is sponsoring AB 1745 (Torres) which prohibits “dual tracking” to prevent lenders from selling a property at a foreclosure sale if a short sale has already been approved. C.A.R. has also worked cooperatively with the Attorney General on several of the bills in her “bill of rights.”

The law will go into effect January 1, 2013. For full text of the bills, visit: http://leginfo.ca.gov/bilinfo.html.

Read C.A.R.'s Realegal to get more information about this bill and its impact on real estate.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

RightArrow.gifHousing scorecard shows promising signs of stability
HUD and the U.S. Dept. of the Treasury have released the June edition of the Obama Administration’s Housing Scorecard, which shows some promising signs of stability, though the overall outlook remains mixed.

Home equity rose $457.1 billion in the first quarter of 2012, a 7.4 percent increase from the previous quarter and its highest level since the second quarter of 2010. Sales of previously owned homes posted sharp gains in May of 9.6 percent compared with a year ago and new home sales in May recorded their highest level in more than 2 years. However, foreclosure starts and completions turned up in May, underscoring continued fragility in the housing market.

The June Housing Scorecard features key data on the health of the housing market and the impact of the Administration’s foreclosure prevention programs, including:

  • More than 5.3 million modification arrangements were started between April 2009 and the end of May 2012 – including nearly 1.2 million homeowner assistance actions through the Making Home Affordable Program and more than 1.3 million FHA loss mitigation and early delinquency interventions.
  • As of May, more than one million homeowners have received a permanent HAMP modification, saving approximately $536 on their mortgage payments each month, and an estimated $13.3 billion to date. 
  • Eighty-six percent of homeowners entering the program in the last 23 months have received a permanent modification, with an average trial period of 3.5 months. 
  • More than 83,000 homeowners have had their principal reduced as part of their HAMP permanent modification, and nearly 84,000 second lien modifications have been completed through the Second Lien Modification Program.

More info

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

RightArrow.gifIndex lists metro areas with improving housing markets
The National Association of Home Builders/First American Improving Markets Index (IMI) shows that 84 metros showed measurable and sustained improvement in July, an increase of four areas compared with June.

The index identifies metropolitan areas that have shown improvement from their respective troughs in housing permits, employment, and house prices for at least six consecutive months. This month’s IMI includes 73 metros that held their positions on the list from June, as well as 11 newly added markets. Notable new entries include such geographically diverse places as Prescott, Ariz.; Springfield, Mass.; St. Cloud, Minn.; and Houston, Texas.

The IMI is designed to track housing markets throughout the country that are showing signs of improving economic health. The index measures three sets of independent monthly data to get a mark on the top improving Metropolitan Statistical Areas. The three indicators that are analyzed are employment growth from the Bureau of Labor Statistics, house price appreciation from Freddie Mac and single-family housing permit growth from the U.S. Census Bureau. NAHB uses the latest available data from these sources to generate a list of improving markets. A metropolitan area must see improvement in all three areas for at least six months following their respective troughs before being included on the improving markets list.

More info

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

RightArrow.gifShort Sale Soundoff: C.A.R. to host Short Sale SWATs

C.A.R. is working with local associations of REALTORS® throughout California to host half-day programs about streamlining the short sale process.

Representatives from the major lending institutions will teach attendees how to identify good prospects, how to use Equator, how to increase short sale closings with Bank of America, Citibank, Chase, and other servicers, and see what has changed with HAFA.

Advanced registration is required and seats are extremely limited.  All attendees must be on time, and no late entries will be allowed in.  Registration is only $10 for C.A.R. members.

Upcoming events include:

Monday, July 30: Santa Clara County Association of REALTORS®

Tuesday, July 31: Oakland Association of REALTORS®

Wednesday, Aug. 1: Sacramento Association of REALTORS®

Contact the local association for more information and to register for the event.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

RightArrow.gifC.A.R.’s PRE EXPO offers exclusive session tracks
CALIFORNIA REALTOR® EXPO 2012 week will start strong with PRE EXPO on Tuesday, Oct. 2. PRE is a day-long, ticketed event that will offer attendees intensive training and focused information on three topics (Property Management, Distressed Properties, and Social Media) which are unique to Tuesday, Oct. 2.

PRE offers attendees an opportunity to explore the benefits of property management as a source of supplemental income in today's changing marketplace, get tips to overcome short sales and REO hurdles to close more distressed property sales, and learn why social media matters, what social media platforms are best, how to engage an audience, where to find new business opportunities, and how to protect an online presence.

In addition to stellar session content, PRE attendees also may choose to participate in the special luncheon presentation, “How to be a Peak Producer,” hosted by real estate mentor Brian Buffini. Even if you’ve participated in a Brian Buffini workshop before, you won’t want to miss this luncheon. Mr. Buffini will share new insights, tips, and advice on how to ratchet up your sales game plan.

A PRE EXPO ticket includes admittance to the luncheon. PRE tickets are available for $140 prior to EXPO, or $155 on-site. Purchase tickets from http://expo.car.org/registration.html.

See the complete PRE schedule at http://expo.car.org/pre.html.


RightArrow.gifRent increases outpace modest home price rises
Asking prices on for-sale homes – which lead sales prices by approximately two or more months -- increased 0.3 percent in June on a month-over-month basis, according to Trulia’s Price Monitor. With the exception of nearly flat prices in May, prices rose in four of the past five months. Asking prices in June rose 0.8 percent nationwide on a quarterly basis. Annually, asking prices rose by 0.3 percent; excluding foreclosures, asking prices rose 1.7 percent. Nationally, 44 out of the 100 largest metros had Y-o-Y price increases, and 84 out of the 100 largest metros had Q-o-Q price increases, seasonally adjusted.

Despite widespread national asking price rises, rent increases outpaced price increases in 22 of the 25 largest rental markets, according to the Trulia Rent Monitor. Nationally, rents were 5.4-percent higher in June than they were a year ago, and rents increased year-over-year in 24 of the 25 largest rental markets – all  except Las Vegas. Furthermore, rent increases accelerated between March and June in most rental markets, with rents in San Francisco rising 14.7 percent year-over-year in June from 10.9 percent in March.

More info

 

RightArrow.gifZillow report shows top markets for buyers, sellers
Many home sellers are thriving in the San Francisco, San Jose, and Las Vegas metro areas, where price cuts are relatively uncommon and homes often sell for at or near their asking price, according to Zillow's new ranking of buyers' and sellers' markets.

On the other end of the spectrum, the Chicago, Milwaukee, and Cleveland metros are still buyers' markets, with homes taking longer to sell and buyers logging average discounts of 5 percent off the asking price.

Zillow analyzed data on sale-to-list price ratios, number of days listings spent on Zillow and percent of homes on the market with a price cut, and ranked the 50 largest metro areas to determine whether buyers or sellers have more negotiating power in a given market. In this analysis, a sellers' market is not necessarily one where home values are rising, but is a market where sellers are more likely to sell their home for close to asking price and where listings spend less time on the market. A buyers' market is one where buyers have more bargaining power, thanks to listings lingering longer on the market and sellers being forced to cut asking prices.

More info

RightArrow.gifConfidence in housing market continues to remain positive
Housing market confidence among Americans continues to trend in a positive direction despite stalling optimism about the economy and personal finances, according to results from Fannie Mae’s June 2012 National Housing Survey.  Results indicate flattening economic trends may be contributing to waning consumer expectations about their personal financial situation.  Nevertheless, Americans’ continued positive sentiment about housing appears to remain buoyed by low house prices and interest rates at historically low levels.

Highlights of the June survey include:

  • Average home price expectation hit 2 percent this month, a 0.6 percent increase from May and the highest value recorded since the survey began in June 2010.
  • Thirty-five percent of respondents say that home prices will go up in the next 12 months, the highest level recorded since the survey’s inception.
  • Thirty-seven percent of those surveyed think mortgage rates will go up in the next 12 months, a 4 percentage point decrease from last month.
  • The percentage who say it is a good time to buy increased slightly to 73 percent, matching the highest level recorded since the survey began two years ago, while the percentage who think it is a good time to sell remained at 15 percent.
  • On average, respondents expect home rental prices, generally steady since May, to increase by 4.0 percent over the next 12 months.
  • Forty-eight percent of respondents think that home rental prices will go up in the next 12 months, while 5 percent think they will go down.
  • Sixty-nine percent of respondents said that they would buy if they were going to move, a 6 percentage point increase from last month and the highest level recorded since the survey’s inception.
  • The percentage of respondents who would rent decreased from 32 percent to 27 percent, the lowest number to date.

More info


RightArrow.gifCoreLogic, FICO introduce FICO Mortgage Score
CoreLogic and FICO have introduced a high-performance consumer credit risk score that is expected to improve lending decision quality and increase the number of mortgage loans lenders make. The new FICO®Mortgage Score Powered by CoreLogic evaluates the traditional credit data from the national credit data repositories and the unique supplemental consumer credit data contained in the CoreLogic CoreScore credit report, introduced in October 2011, to deliver a more comprehensive and accurate view of a consumer’s credit risk profile for loan prequalification and origination.

The new scoring model was designed specifically to predict mortgage loan performance and has shown a substantial improvement in risk prediction over other generally available risk scores in use today. As a result, this new scoring model developed by FICO to leverage data only available on the CoreLogic CoreScore credit report, will help mortgage lenders more safely and profitably expand their origination volumes, ultimately strengthening and growing the overall mortgage lending market.

According to a recent FICO quarterly survey of bank risk professionals, conducted by the Professional Risk Managers’ International Association (PRMIA), bankers continue to lack confidence in the housing finance marketplace. Of bankers surveyed, approximately 75 percent of respondents expect the level of mortgage delinquencies to increase or stay the same over the six-month period following the survey, and more than 85 percent hold the same view for home equity line delinquencies.

The new FICO® Mortgage Score Powered by CoreLogic® maintains a consistent score range, set of reason codes and odds-to-score relationship with prior FICO® Score versions, making it easy for lenders to integrate and for consumers to understand. Additionally, the CoreScore Solution maintains backward compatibility making it readily available within existing CoreLogic Credco Instant Merge® integrations – the most widely used credit report in the mortgage industry.

More info

RightArrow.gifTip of the Week: Debt consolidation scams on the rise
The Consumer Financial Protection Bureau is warning consumers about callers who claim to be from the Bureau and are offering debt consolidation servicers.  The callers ask for credit card information from consumers.

The Bureau does not offer debt consolidation services.  Consumers who receive suspicious calls related to the Bureau are asked to call the Bureau directly at (855) 411-CFPB.

RightArrow.gifFast Facts
Calif. median home price: May 2012: $312,110 (Source: C.A.R.)
Calif. highest median home price by region/county May 2012: Marin, $791,670 (Source: C.A.R.)
Calif. lowest median home price by region/county May 2012: Merced, $119,410 (Source: C.A.R.)

Calif. Pending Home Sales Index: May 2012: 128.8, unchanged from April. 
 
Calif. Traditional Housing Affordability Index: First quarter 2012: 56 percent (Source: C.A.R.)

Mortgage rates: Week ending 7/5/2012 30-yr. fixed: 3.62% fees/points: 0.8% 15-yr. fixed: 2.89 fees/points: 0.7% 1-yr. adjustable: 2.68% Fees/points: 0.5% (Source: Freddie Mac)

 

 
 
 


 

C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 150,000 REALTORS® statewide. 







To view C.A.R.'s Privacy Policy click on this link:
http://www.car.org/aboutus/privacypolicy


 




Copyright © 2012 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

 
Powered By Convio


 

 

 

July 4, 2012
 

 
 

   


 
C.A.R. Newsline
   
 
 

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®.

Member Benefit C.A.R. Member Benefit #14: C.A.R. Newsline is a weekly e-newsletter covering vital industry information including economic reports, legislative developments, and new real estate products and service

RightArrow.gifCongress passes five-year extension for flood insurance program 
RightArrow.gifConstruction spending rises in May
RightArrow.gifSurvey finds property managers faring much better than last year 
RightArrow.gifShort Sale Soundoff: FHFA announces next steps in REO Pilot Program
RightArrow.gifLegislature passes Conference Report 
RightArrow.gifHome rise for third consecutive month in May
RightArrow.gifCompleted foreclosures decline in May
RightArrow.gifFederal healthcare law ruling effect on REALTORS®
RightArrow.gifCalifornia cities propose use of eminent domain for underwater mortgages
RightArrow.gifTip of the Week: California, Nevada, Florida top Mortgage Fraud SAR list
RightArrow.gifFast Facts

 

RightArrow.gifCongress passes five-year extension for flood insurance program 
On Saturday, June 30, President Obama signed a one-week extension of a transportation bill that includes a provision to extend the National Flood Insurance Program (NFIP) for five years, ending four years of short-term extensions that fueled uncertainty and several lapses in coverage.  Without the five-year extension, the program would have expired July 31.

Flood insurance is required by law to obtain a mortgage in more than 21,000 communities nationwide.  NAR estimates that a lapse in the program would have affected 1,300 transactions a day or nearly 40,000 a month. 

The extension of the measure will allow time for the full legislation, approved last Friday by Congress, to reach the president’s desk.  He is expected to sign the full law in the coming days.

C.A.R. and NAR have been working over the past several years to ensure lawmakers understand the importance of extending the NFIP and will continue to monitor the issue.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

RightArrow.gifConstruction spending rises in May
Construction spending rose 7 percent in May to a seasonally adjusted annual rate of $830 billion compared with the previous year, the U.S. Census Bureau of the Dept. of Commerce announced Monday.

During the first five months of this year, construction spending amounted to $310.5 billion, 9.4 percent above the $283.8 billion for the same period in 2011.

Residential construction was at a seasonally adjusted annual rate of $261.3 billion in May, 3 percent above the revised April estimate of $253.8 billion.

More info

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

RightArrow.gifSurvey finds property managers faring much better than last year 
A new TransUnion survey found that both large and small property managers are faring better than they did one year ago and are more easily attracting residents while increasing rental prices.

Nearly half of respondents (48 percent) said rental prices on the majority of their units had increased since this same time last year. Approximately 44 percent said rental prices remained the same. Comparatively, in the 2011 TransUnion rental survey, only 39 percent of respondents stated that such an increase occurred, with 48 percent saying prices remained the same.

Despite increasing rental prices, more property managers are finding it easier to locate prospective residents. Nearly 73 percent of respondents said it is not difficult to find residents. In the same 2011 survey, only 67 percent of property managers answered this way.

The percent of respondents stating vacancy rates for their properties are between 0 percent and 5 percent increased from 81 percent in 2011 to 83 percent in 2012. Large property managers saw this number increase from 60 percent in 2011 to 64 percent in 2012. More than 70 percent of small property managers said they have zero vacancy, up from 66 percent in 2011.

More info

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

RightArrow.gifShort Sale Soundoff: FHFA announces next steps in REO Pilot Program

The FHFA announced yesterday that the winning bidders in a REO pilot initiative have been chosen and transactions are expected to close early in the third quarter. The FHFA said that market response has been robust with strong qualified bidder interest.

“FHFA undertook this initiative to help stabilize communities and home values in areas hard-hit by the foreclosure crisis,” said Edward J. DeMarco, Acting Director of FHFA. “As conservator of Fannie Mae and Freddie Mac, we believe this pilot program will assist us in achieving our objectives and help to maximize the benefit to taxpayers. We are pleased with the response from the market and look forward to closing transactions in the near future.”

FHFA launched the pilot program in late February, and in the second quarter bids were solicited from qualified investors to purchase approximately 2,500 single-family Fannie Mae foreclosed properties. Fannie Mae offered for sale pools of properties in geographically concentrated locations across the United States.

Investors were qualified to bid after a rigorous evaluation process and were evaluated on the basis of several factors, including financial strength, asset management experience, property management expertise, and experience in the geographic area.

C.A.R. is disappointed that the FHFA ignored overwhelming economic data showing that such a program is not necessary, especially in California where inventory levels are exceptionally low, and may potentially harm the housing market in certain areas.

More info

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

RightArrow.gifLegislature passes Conference Report 
The California Legislature this week passed a Conference Report that was a key element of the Attorney General’s package of bills making up a so-called “Homeowners Bill of Rights.” The legislation is intended to codify the national negotiated settlement between the state’s Attorney General and major banks.  C.A.R. has been opposing this well-intentioned legislation because it will encourage the filing of lawsuits intended for delay and further discourage lending.

C.A.R. sincerely thanks all those members who took a few minutes to contact their state senators to express their concerns about the legislation.

While C.A.R. is disappointed in the final outcome, the good news is that what has passed is a much improved version of the package of bills initially sponsored by the Attorney General, which would have originally halted ALL foreclosures, drying up both REO inventory and even short sales.  During C.A.R.’s Legislative Day, REALTORS® successfully lobbied their legislators against these dangerous provisions, and the Conference Committee ultimately didn’t include them in the Conference Report.

C.A.R. will continue to fight for the thoughtful, balanced reform of the foreclosure process.  For example, C.A.R. is sponsoring AB 1745 (Torres), which prohibits “dual tracking” to prevent lenders from selling a property at a foreclosure sale if a short sale has already been approved. C.A.R. has also worked cooperatively with the Attorney General on several of the bills in her “bill of rights.”


RightArrow.gifHome rise for third consecutive month in May
Home prices nationwide, including distressed sales, increased 2 percent on a year-over-year basis in May 2012 compared with May 2011, according to CoreLogic’s May Home Price Index report.  On a month-over-month basis, home prices, including distressed sales, also increased 1.8 percent in May 2012 compared with April 2012. The May 2012 figures mark the third consecutive increase in home prices nationwide on both a year-over-year and month-over-month basis.

Excluding distressed sales, home prices nationwide increased 2.7 percent on a year-over-year basis in May 2012 compared with May 2011. On a month-over-month basis excluding distressed sales, the CoreLogic HPI indicates home prices increased 2.3 percent in May 2012 compared with April 2012, the fourth month-over-month increase in a row. Distressed sales include short sales and real estate owned (REO) transactions.

More info

RightArrow.gifCompleted foreclosures decline in May
CoreLogic released its National Foreclosure Report for May this week which provides monthly data on completed foreclosures and the overall foreclosure inventory. According to the report, there were 63,000 completed foreclosures in the U.S. in May 2012 compared with 77,000 in May 2011 and 62,000 in April 2012. Since the financial crisis began in September 2008, there have been approximately 3.6 million completed foreclosures across the country. Completed foreclosures are an indication of the total number of homes actually lost to foreclosure.

Approximately 1.4 million homes, or 3.4 percent of all homes with a mortgage, were in the national foreclosure inventory as of May 2012 compared with 1.5 million, or 3.5 percent, in May 2011 and 1.4 million, or 3.4 percent, in April 2012. The foreclosure inventory is the share of all mortgaged homes in some stage of the foreclosure process.

Highlights of the report include:

  • The five states with the highest number of completed foreclosures for the 12 months ending in May 2012 were: California, 133,000 completed foreclosures; Florida, 92,000 completed foreclosures; Michigan, 60,000 completed foreclosures; Texas, 58,000 completed foreclosures; and Georgia, 57,000 completed foreclosures. These five states account for 48.8 percent of all completed foreclosures nationally.
  • The five states with the lowest number of completed foreclosures for the 12 months ending in May 2012 were: South Dakota, 48 completed foreclosures; District of Columbia,74 completed foreclosures; North Dakota, 547 completed foreclosures;, West Virginia, 620 completed foreclosures; and Hawaii, 623 completed foreclosures.

More info


RightArrow.gifFederal healthcare law ruling effect on REALTORS®
The U.S. Supreme Court recently upheld most of the Obama Administration’s healthcare reform law under the Patient Protection and Affordable Care Act (PPACA). This law has a broad impact on the U.S. healthcare industry, including healthcare choices for California’s REALTORS®. Most of the key provisions under the PPACA are slated to commence in 2014, but other developments may occur before then as this law is further debated in legal and political arenas. More detailed information on the PPACA is available here.  

C.A.R. has provided a summary of the key provisions of the PPACA that are likely to affect REALTORS®.  The summary includes information about:

  • Individual Mandate
  • Pre-Existing Conditions
  • Insurance Exchanges
  • Young Adult Coverage
  • Small Businesses
  • Consumer Protection
  • Effects of Real Estate Transactions
  • California Health Plans
  • Coverage Premiums
  • What REALTORS® can do if they need health insurance now

More info

RightArrow.gifCalifornia cities propose use of eminent domain for underwater mortgages
A proposal by private entities and investors is being considered in the cities of San Bernardino, Fontana, and Ontario to use eminent domain to seize mortgage loans that are underwater and refinance them at the current mortgage principal.

The proposal, which would be financed by private entities and investors, is only for mortgages where homeowners are current on their mortgage and for loans that are currently owned by private label securities.  Loans owned by Fannie Mae, Freddie Mac, Veterans Administration, or portfolio loans would not be eligible. Additionally, homeowners whose mortgages are delinquent or in the process of being foreclosed on will not benefit from the proposed plan.

C.A.R. is opposed to the use of eminent domain for this purpose, as it fails to meet the requirements necessary for a government to use eminent domain to seize property.

RightArrow.gifTip of the Week: California, Nevada, Florida top Mortgage Fraud SAR list
The Financial Crimes Enforcement Network released its First Quarter 2012 Update of mortgage loan fraud suspicious activity reports (MLF SARs) which shows California, Nevada, and Florida leading the nation in the number of MLF SAR subjects per capita. Of the 50 most populous Metropolitan Statistical Areas (MSAs) ranked by the number of MLF SAR subjects reported, the top nine are MSAs located in California, Nevada, and Florida, with the Los Angeles-Long Beach-Santa Ana area ranked first in the nation.

More info

RightArrow.gifFast Facts
Calif. median home price: May 2012: $312,110 (Source: C.A.R.)
Calif. highest median home price by region/county May 2012: Marin, $791,670 (Source: C.A.R.)
Calif. lowest median home price by region/county May 2012: Merced, $119,410 (Source: C.A.R.)

Calif. Pending Home Sales Index: May 2012: 128.8, unchanged from April. 
 
Calif. Traditional Housing Affordability Index: First quarter 2012: 56 percent (Source: C.A.R.)

Mortgage rates: Week ending 6/28/2012 30-yr. fixed: 3.66% fees/points: 0.7% 15-yr. fixed: 2.94 fees/points: 0.7% 1-yr. adjustable: 2.74% Fees/points: 0.4% (Source: Freddie Mac)

 

 
 
 



 



C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 150,000 REALTORS® statewide. 






To view C.A.R.'s Privacy Policy click on this link:
http://www.car.org/aboutus/privacypolicy


 

 

 




Copyright © 2012 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

 
Powered By Convio


 

 

 
May 30, 2012 

     Connect with C.A.R.


 
C.A.R. Newsline
   
 
 

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®.

Member Benefit C.A.R. Member Benefit #14: C.A.R. Newsline is a weekly e-newsletter covering vital industry information including economic reports, legislative developments, and new real estate products and service

RightArrow.gifCase-Shiller composites decline in March
RightArrow.gifSpring home buying season off to strong start
RightArrow.gifConsumer confidence declines in May
RightArrow.gifShort Sale Soundoff: Performing a short sale for active duty military with BofA
RightArrow.gifSales of new homes rise in April
RightArrow.gifFHFA: Average interest rate increased in April
RightArrow.gifHome values rise in April
RightArrow.gifCA REALTOR® wins NAR Volunteering Works award
RightArrow.gifTip of the week: Help your clients avoid mortgage fraud
RightArrow.gifFast Facts
 

 

RightArrow.gifCase-Shiller composites decline in March
Data through March 2012, released Tuesday by S&P Indices for its S&P/Case-Shiller Home Price Indices showed that all three headline composites ended the first quarter of 2012 at new lows. The national composite declined 2 percent in the first quarter of 2012 and was down 1.9 percent compared with the first quarter of 2011. The 10- and 20-City Composites posted respective declines of 2.8 percent and 2.6 percent in March 2012. 

Month-over-month, their changes were minimal; average home prices in the 10-City Composite fell by 0.1 percent compared with February and the 20-City remained basically unchanged in March over February. However, with thi latest data, all three composites still posted their lowest levels since the housing crisis began in mid-2006.

In addition to the three composites, five cities - Atlanta, Chicago, Las Vegas, New York, and Portland - also saw average home prices hit new lows. This is an improvement over the nine cities reported last month.

More info


* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

RightArrow.gifSpring home buying season off to strong start
California home sales and median price both jumped in April, with sales shooting up to their highest level in more than two years, and the median price rising above $300,000 for the first time in 16 months, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) recently reported. 

Closed escrow sales of existing, single-family detached homes in California rose to a seasonally adjusted annualized rate of 555,300 units in April, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.  Sales in April were 10 percent higher than March’s pace and 11 percent higher than in April 2011.  The statewide sales figure represents what would be the total number of homes sold during 2012 if sales maintained the April pace throughout the year.  It is adjusted to account for seasonal factors that typically influence home sales.

The statewide median price of an existing, single-family detached home climbed 5.7 percent in April to $308,050, up from March’s revised $291,330 median price and 4.7 percent from a revised $294,140 recorded in April 2011.  

More info
 


* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

RightArrow.gifConsumer confidence declines in May
The Conference Board Consumer Confidence Index, which declined slightly in April, fell further in May. The Index now stands at 64.9 (1985=100), down from 68.7 in April. The Expectations Index declined to 77.6 from 80.4, while the Present Situation Index decreased to 45.9 from 51.2 last month.

Consumers’ appraisal of present-day conditions deteriorated in May, with those claiming business conditions are "bad" increasing to 34.3 percent from 33.2 percent.  Those saying business conditions are "good" decreased to 13.6 percent from 15.5 percent. Consumers’ appraisal of the job market was also less favorable. Those claiming jobs are "hard to get" increased to 41.0 percent from 38.1 percent, while those stating jobs are "plentiful" decreased to 7.9 percent from 8.4 percent.

Consumers have also grown less upbeat about the short-term outlook. Those expecting business conditions to improve over the next six months decreased to 16.6 percent from 18.5 percent. However, those anticipating business conditions will worsen decreased to 13.1 percent from 14.2 percent.

Consumers’ outlook for the labor market was also less positive. Those expecting more jobs in the months ahead decreased to 15.8 percent from 16.9 percent, while those anticipating fewer jobs increased to 21.0 percent from 18.4 percent. The proportion of consumers expecting an increase in their incomes improved to 15.2 percent from 13.9 percent.

More info


* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

RightArrow.gifShort Sale Soundoff: Performing a short sale for active duty military with BofA

Active duty military customers may be eligible for certain housing-related protections under the Servicemembers Civil Relief Act (SCRA).

Bank of America has a Military Short Sale Team, which handles short sale requests for active duty military members.  Real estate professionals should ask if a seller is in the military, as knowing ahead of time will allow the short sale request to be directed to the Military Short Sale Team with fewer delays. When a customer advises that he/she is on active duty military service, Bank of America will transfer that customer to a specialized team for assistance.

This team will determine if the customer is eligible for SCRA protection and will verify his/her military duty status. Once the review is complete, the customer will be advised of the status and the short sale request will be initiated in Equator. The short sale will be processed by the Military Short Sale Team.

 

More info


* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

RightArrow.gifSales of new homes rise in April
Sales of new single-family houses increased 3.3 percent in April to a seasonally adjusted annual rate of 343,000 units, according to estimates released jointly by the U.S. Census Bureau and the Dept. of Housing and Urban Development.

This is 9.9 percent above the April 2011 estimate of 312,000 units.

The median sales price of new houses sold in April 2012 was $235,700; the average sales price was $282,600. The seasonally adjusted estimate of new houses for sale at the end of April was 146,000. This represents a supply of 5.1 months at the current sales rate.

More info

RightArrow.gifFHFA: Average interest rate increased in April
The Federal Housing Finance Agency this week reported that the average interest rate on conventional, 30-year, fixed-rate mortgage loans of $417,000 or less increased 9 basis points to 4.21 in April. These rates are calculated from the FHFA’s Monthly Interest Rate Survey of purchase-money mortgages, and reflect loans closed during the April 24-30 period. Typically, the interest rate is determined 30 to 45 days before the loan is closed. Thus, the reported rates depict market conditions prevailing in mid- to late-March.

The contract rate on the composite of all mortgage loans (fixed- and adjustable-rate) was 3.93 percent in April, up 4 basis points from 3.89 percent in March. The effective interest rate, which reflects the amortization of initial fees and charges, was 4.03 percent in April, up 10 basis points from 3.93 percent in March.

This report contains no data on adjustable-rate mortgages due to insufficient sample size. Initial fees and charges were 0.90 percent of the loan balance in April, down 3 basis points from March. Twenty-one percent of the purchase-money mortgage loans originated in April were "no-point" mortgages, up one percent from the share in March. The average term was 27.3 years in April, matching the term in March. The average loan-to-price ratio in April was 75.3 percent, up 0.5 percent from 74.8 percent in March. The average loan amount was $256,200 in April, up $9,100 from $247,100 in March.

More info

RightArrow.gifHome values rise in April
National home values rose for the second consecutive month, climbing 0.7 percent in April compared with March to a Zillow Home Value Index of $147,300. This is the largest monthly increase in home values since January 2006, when they rose 0.8 percent, according to the April Zillow® Real Estate Market Reports.

Rents also rose from March to April, increasing 1.6 percent, according to the Zillow Rent Index. Rents rose in 78 percent of the 178 markets covered by Zillow.

"The housing market continues to show positive signs, with home values increasing significantly in April," said Zillow Chief Economist Dr. Stan Humphries. "The recovery is moving in the right direction, but we caution that negative equity will cast a long shadow over the housing market. With almost one-third of homeowners with mortgages underwater and unable to sell their homes, inventory is having a hard time keeping up with increasing demand in many areas. We'll continue to watch this signal as increasing home values turn from a blip into a trend."

Foreclosures continued to decline in April, with 6.8 out of every 10,000 homes in the country being foreclosed. That was down from 8 out of every 10,000 in March.

More info

  
RightArrow.gifCA REALTOR® wins NAR Volunteering Works award
NAR has announced the winners of its 2012 Volunteering Works program, an annual program that matches REALTORS® who work on small-scale charitable efforts with mentors, and awards them seed money and helps REALTORS® expand their reach within their communities.

Among the five recipients who will receive a $1,000 grant and a year of one-on-one mentoring from a member of the Good Neighbor Society, which is made up of past recipients of the annual REALTOR® Magazine Good Neighbor Award for volunteer service, is California REALTOR® Wanda Klor of Realty World Wanda Klor & Associates in San Jose, Calif.

Klor founded Portera Celebration, an annual summer event that benefits four local charities—Second Harvest Food Bank, Career Closet, Community Health Partnership, and Sacred Heart Community Services. Her mentor, 2010 Good Neighbor James T. Elcock, Elcock Properties, St. Charles, Mo., founded the Kids Against Hunger, Metro St. Charles/St. Louis satellite. Klor is seeking advice on becoming a 501(c)3 nonprofit, recruiting more volunteers, and implementing fundraising strategies. To find out more about Portera Celebration visitwww.PorteraCCC.com.

More info


RightArrow.gifTip of the Week: Help your clients avoid mortgage fraud
Earlier this month, C.A.R. launched a new section on car.org to help consumers avoid becoming victims of mortgage fraud.  The valuable information contains links to websites for the major lenders in California, along with phone numbers; tips to avoid being scammed, available in both English and Spanish; and a list of resources where consumers can learn more about mortgage fraud, short sale fraud, foreclosure fraud, credit counseling, and where to file a complaint.

More info

RightArrow.gifFast Facts
Calif. median home price: April 2012: $308,050 (Source: C.A.R.)
Calif. highest median home price by region/county April 2012: Marin, $783,850 (Source: C.A.R.)
Calif. lowest median home price by region/county April 2012: Siskiyou County, $103,330 (Source: C.A.R.)

Calif. Pending Home Sales Index: April 2012: 128, a decrease from the revised 138.9 recorded in March. 
 
Calif. Traditional Housing Affordability Index: First quarter 2012: 56 percent (Source: C.A.R.)

Mortgage rates: Week ending 5/24/2012 30-yr. fixed: 3.78% fees/points: 0.8% 15-yr. fixed: 3.04 fees/points: 0.7% 1-yr. adjustable: 2.75% Fees/points: 0.4% (Source: Freddie Mac)

 

 
 
 


 




C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 150,000 REALTORS® statewide. 

Edited by: Mary Burroughs


Executive offices:
525 South Virgil Ave., Los Angeles CA 90020
 

Legislative offices:
980 Ninth Street #1430, Sacramento CA 95814 

For permission to reprint content from C.A.R. Newsline, please send an email with "reprint" in the subject line to Mary Burroughs.

 




Copyright © 2012 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

 
 

 

 

May 23, 2012

     Connect with C.A.R.


 
C.A.R. Newsline
   
 
 

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®.

Member Benefit C.A.R. Member Benefit #14: C.A.R. Newsline is a weekly e-newsletter covering vital industry information including economic reports, legislative developments, and new real estate products and service

RightArrow.gifHUD: Counseling prepares families for homeownership, stay in homes
RightArrow.gifCalifornia pending home sales down after robust March
RightArrow.gifFreddie Mac to allow e-signatures, other changes
RightArrow.gifMortgage delinquencies decrease in Q1 2012
RightArrow.gifNationwide housing affordability reaches new record high 
RightArrow.gifTrulia reports hot job market not driving home searches
RightArrow.gifTip of the Week: App lets homeowners compare energy use with neighbors
RightArrow.gifFast Facts
 

 

RightArrow.gifHUD: Counseling prepares families for homeownership, stay in homes
The U.S. Dept. of Housing and Urban Development (HUD) has released two reports on the impact HUD-approved housing counseling has for those families who purchase their first homes and those struggling to prevent foreclosure.  In both studies, HUD found housing counseling significantly improved the likelihood homeowners remained in their homes.

Both the pre-purchase counseling and foreclosure counseling studies enrolled clients in the fall of 2009 and early 2010. HUD found that 35 percent of participants became homeowners within 18 months of pre-purchase counseling, and only one of those buyers subsequently fell behind in their mortgage payments. The foreclosure counseling study reveals that with a counselor’s help, nearly 70 percent of those counseled obtained a mortgage remedy to retain their home, and 56 percent cured their defaults and became current on their mortgages.

Key findings of the “Pre-Purchase Counseling Outcome Study” include:

  • Thirty-five percent of the study participants had become homeowners 18 months after seeking pre-purchase counseling.
  •  Most purchasers had a FICO score of 620 or higher (71 percent), and were reported as having completed counseling by their housing counselor (72 percent).
  • Only one of the purchasers had fallen at least 30 days behind on mortgage payments 12-18 months after receiving pre-purchase counseling services.
  • Most were motivated to seek counseling to identify homebuyer assistance programs (58 percent) or to obtain down payment or closing cost assistance or to qualify for a specific loan program (58 percent).
  • Study participants were racially and ethnically diverse (52 percent African American, 32 percent White, 16 percent of another race or multi-racial, and 19 percent Hispanic), were more likely to be young (51 percent were under age 35), female (72 percent), and have dependents under the age of 18 living with them (57 percent).


Key findings of the “Foreclosure Counseling Outcome Study” include: 

  • Most study participants attempted to contact their servicer when they first fell behind but were unsuccessful in negotiating with their lenders on their own.
  • With a counselor’s help, 69 percent of counselees obtained a mortgage remedy, and 56 percent were able to become current on their mortgages.
  • Nearly 70 percent of clients who sought counseling before becoming delinquent were in their home and current on their mortgage payments at the 18-month follow-up period, whereas only 30 percent of clients who were six or more months behind at the time they entered counseling were in their home and current at follow-up.


More info
 


* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

RightArrow.gifCalifornia pending home sales down after robust March
C.A.R.’s Pending Home Sales Index (PHSI)* declined from a revised 138.9 in March to 128.0 in April, based on signed contracts.  The index was up from the revised 114.4 index recorded in April 2011, marking the twelfth consecutive month that pending sales were higher than the previous year.  Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.

“Inventory constraints could be a contributing factor to lower pending sales,” said C.A.R. President LeFrancis Arnold.  “The tight inventory we’ve been experiencing in the distressed market over the past several months is now spreading to equity properties, essentially affecting the supply conditions of both the distressed and non-distressed markets.”

The share of equity sales – or non-distressed property sales – compared with total sales increased to its highest level since July 2008 rising to 58 percent in April, up from 54.5 percent in March.  Equity sales made up 52.3 percent of all sales in April 2011.

Conversely, the total share of all distressed property types sold statewide decreased in April to 42.0 percent, down from March’s 45.5 percent and from 47.7 percent in April 2011.

More info

 

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

RightArrow.gifFreddie Mac to allow e-signatures, other changes
Freddie Mac has released a new servicer bulletin announcing changes to its underwriting requirements that expand the use of electronic signatures and reduce duplicative borrower information verification.

The bulletin announces the following changes:

  • Allowing electronic signatures for certain loan application documents. Servicers may begin using electronic versions of certain initial loan documents for the origination processes as outlined in the Servicer Guide.  With this change, servicers will be able to take advantage of the operational efficiencies and quicker processing that electronic transactions provide.
  • Eliminating certain Social Security Number (SSN) validation requirements.  To reduce redundancy in the postclosing quality control (QC) review process, servicers are no longer required to validate each borrower’s SSN if the servicer validated it during loan origination or the preclosing QC review.  However, if a mortgage broker or correspondent performed the SSN validation, the servicer is still required to validate the SSN during the postclosing QC review.
  • Removing the list of third-party employment/income verification service providers.  To provide servicers with more flexibility in verifying employment and/or income, Freddie Mac has removed the list of acceptable verification service providers from the Guide.  Income and/or employment verifications obtained from third-party sources remain acceptable, provided these verifications meet the Servicer Guide’s requirements.


For more information, read the Guide at  http://www.freddiemac.com/sell/guide/bulletins/pdf/bll1211.pdf
 


* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

RightArrow.gifMortgage delinquencies decrease in Q1 2012
The delinquency rate for mortgage loans on one-to-four-unit residential properties decreased to a seasonally adjusted rate of 7.40 percent of all loans outstanding as of the end of the first quarter of 2012, a decrease of 18 basis points from the fourth quarter of 2011, and a decrease of 92 basis points from one year ago, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey. The non-seasonally adjusted delinquency rate decreased 121 basis points to 6.94 percent this quarter from 8.15 percent last quarter.

The percentage of loans on which foreclosure actions were started during the fourth quarter was 0.96 percent, down three basis points from last quarter and down 12 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 in the foreclosure process at the end of the first quarter was 4.39 percent, up one basis point from the first quarter and 13 basis points lower than one year ago. The serious delinquency rate, the percentage of loans that are 90 days or more past due or in the process of foreclosure, was 7.44 percent, a decrease of 29 basis points from last quarter, and a decrease of 66 basis points from the first quarter of last year.

The combined percentage of loans in foreclosure or at least one payment past due was 11.33 percent on a non-seasonally adjusted basis, a 120 basis point decrease from last quarter and was 98 basis points lower than a year ago. This was the lowest that this measure has been since 2008.

More info

  
RightArrow.gifNationwide housing affordability reaches new record high 
Nationwide housing affordability hit a new record high for a second consecutive quarter in the first three months of this year, according to the latest National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI). Yet tight lending conditions continue to pose a major obstacle to many prospective home buyers.

The latest HOI data reveal that 77.5 percent of all new and existing homes that were sold in this year’s first quarter were affordable to families earning the national median income of $65,000.  This beats the previous record set in the final quarter of 2011, when 75.9 percent of homes sold were affordable to median-income earners.

The most affordable major housing markets in the first quarter were: Indianapolis-Carmel, Ind., Dayton, Ohio; Lakeland-Winter Haven, Fla.; Modesto, Calif.; Grand Rapids-Wyoming, Mich.; and Buffalo-Niagara Falls, N.Y.; the latter two of which tied for fifth place.

The least affordable major housing markets included: New York-White Plains-Wayne, N.Y.-N.J.; San Francisco-San Mateo-Redwood City, Calif.; Honolulu; Los Angeles-Long Beach-Glendale, Calif.; and Santa Ana-Anaheim-Irvine, Calif., respectively.

More info 


  
RightArrow.gifTrulia reports hot job market not driving home searches
According to Trulia’s latest Metro Movers Report, when people search long-distance for a new home, affordability and warm weather tend to trump job opportunities. Most long-distance searchers look for homes in markets with higher unemployment and slower job growth than where they live now. For instance, three times as many people in Minneapolis – St. Paul (6.2 percent unemployment) are looking for homes in Phoenix (8.5 percent unemployment) than in the reverse direction. Meanwhile, five times as many people in Chicago (9.8 percent unemployment) are looking for homes in Riverside-San Bernardino (13.2 percent unemployment) and seven times as many people in Washington D.C. (5.9 percent unemployment) are looking for homes in Orlando (10.3 percent unemployment) than in the reverse direction, respectively.                                                                                               

Among all domestic home searches on Trulia, more than half (56 percent) are to another metro area – 36 percent of which are between neighboring metros, including all of the top ten searches. The most frequent cross-metro search is from Los Angeles to its inland neighbor, Riverside-San Bernardino, followed by New York to Long Island. 

House hunters searching within 100 miles are twice as likely to look at more suburban or smaller markets, where typical neighborhoods consist of single-family homes with yards, than at more urban or larger markets, where homes are smaller and more likely to be apartments or condos (measured by density). 

The top long-distance searches for homes more than 500 miles away are toward the South and West. Unlike short-distance searchers, long-distance searchers are mainly attracted to lower prices and bigger price drops, not just lower density. Long-distance house-hunters are 1.7 times more likely to look for homes in markets with bigger price drops in the bust, relative to where they live now, than in markets that held up better. Long-distance searchers also factor in weather: people are 1.8 times more likely to look for homes in markets with warmer winters than in markets with colder winters, relative to where they live now.

More info


RightArrow.gifTip of the Week: App lets homeowners compare energy use with neighbors
Facebook, the Natural Resources Defense Council (NRDC) and Opower have joined with 16 utilities to launch a social energy app that leverages the Facebook platform to allow people to quickly and easily start benchmarking their home’s energy usage against similar homes, compare energy use with friends, enter energy-saving competitions, and share tips on how to become more energy efficient.

Find out more about the app at: http://opower.com/company/news-press/press_releases/50.

RightArrow.gifFast Facts
Calif. median home price: April 2012: $308,050 (Source: C.A.R.)
Calif. highest median home price by region/county April 2012: Marin, $783,850 (Source: C.A.R.)
Calif. lowest median home price by region/county April 2012: Siskiyou County, $103,330 (Source: C.A.R.)

Calif. Pending Home Sales Index: April 2012: 128, a decrease from the revised 138.9 recorded in March. 
 
Calif. Traditional Housing Affordability Index: First quarter 2012: 56 percent (Source: C.A.R.)

Mortgage rates: Week ending 5/17/2012 30-yr. fixed: 3.79% fees/points: 0.7% 15-yr. fixed: 3.04 fees/points: 0.7% 1-yr. adjustable: 2.78% Fees/points: 0.5% (Source: Freddie Mac)

 

 
 
 


 




C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 150,000 REALTORS® statewide. 

Edited by: Mary Burroughs
 

Executive offices:
525 South Virgil Ave., Los Angeles CA 90020

Legislative offices:
980 Ninth Street #1430, Sacramento CA 95814



For permission to reprint content from C.A.R. Newsline, please send an email with "reprint" in the subject line to Mary Burroughs





Copyright © 2012 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

 
 

 

May 17, 2012                                                         Connect with C.A.R.

C.A.R. Newsline
   
   

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®.

Member Benefit C.A.R. Member Benefit #14: C.A.R. Newsline is a weekly e-newsletter covering vital industry information including economic reports, legislative developments, and new real estate products and service

RightArrow.gifMortgage loan delinquency rates lowest since 2009
RightArrow.gifWebsite helps homeowners, buyers protect the “American Dream”
RightArrow.gifShort Sale Soundoff: BofA increases relocation assistance payments
RightArrow.gifHousing affordability reaches all-time high in Q1 2012
RightArrow.gifS&P: 46 months to clear shadow inventory
RightArrow.gifHigher foreclosure rates increase serious delinquencies 
RightArrow.gif2012 NAR member survey shows rising incomes
RightArrow.gifIncome to qualify for mortgage well-below U.S. median
RightArrow.gifTip of the Week: Internet crime increases in 2011
RightArrow.gifFast Facts 

RightArrow.gifMortgage loan delinquency rates lowest since 2009 
The national mortgage delinquency rate (the rate of borrowers 60 or more days past due) declined in the first three months of 2012 to 5.78 percent. This improvement ends two quarters of increases that began in Q3 2011, according to TransUnion.

Prior to Q3 2011, 60-day mortgage delinquency rates had dropped for six consecutive quarters. This latest quarter brings the delinquency rate to its lowest point since Q1 2009.

Between fourth quarter 2011 and first quarter of 2012, all but eight states experienced decreases in their mortgage delinquency rates. 

House prices continue to face downward pressure and unemployment remains high, but many see the economic environment beginning to show modest improvement. Therefore, TransUnion's forecast predicts mortgage delinquency rates to drift downward in 2012 as more homeowners are able to repay their mortgage debt obligations.

More info


* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

RightArrow.gifWebsite helps homeowners, buyers protect the “American Dream”
Despite the fact that Americans overwhelmingly support homeownership, legislative and regulatory proposals now under consideration would greatly harm homeowners, home buyers, the housing market, and the nation's economy, according to the National Association of Home Builders (NAHB). To that end, NAHB has launched a new website, www.ProtectHomeownership.com, to bring attention to the threats to homeownership and inspire the public to take action to protect it.

Tax, legislative, and regulatory policies currently under consideration would scale back or eliminate the mortgage interest deduction and make mortgages and small business loans unaffordable and even more difficult to obtain.

ProtectHomesownership.com explains some of these threats and documents homeownership's importance to individual households and to local, state, and national economies through an FAQ, poll data, economic analysis, and reports.

The site also provides multiple ways for the public to take positive action to protect this very important aspect of American life. These include an online petition urging policymakers to keep housing a national priority, information about how to participate in homeownership rallies that are being held in a number of communities in 2012, and links to social media communities on Facebook.com/ProtectHomeownership and Twitter.com/4Homeownership.

More info


* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

RightArrow.gifShort Sale Soundoff: BofA increases relocation assistance payments

Bank of America has launched a nationwide program that offers delinquent mortgage customers increased assistance with relocation expenses – from $2,500 to $30,000 – at the completion of a qualifying short sale.

To qualify for the enhanced relocation assistance payments under the new program, the seller must work proactively with the bank to obtain a preapproved sales price prior to submitting a purchase offer to the bank.  A short sale must be initiated by the end of 2012 and close by Sept. 26, 2013, to be eligible for the payment.  Qualifying short sales that have already been started but have not closed may be eligible for the relocation assistance.

Initially, the program will be offered on mortgages that are owned and served by Bank of America.  Currently, the percentage of loans that qualify for the program is 8 percent nationwide.

More info


* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

RightArrow.gifHousing affordability reaches all-time high in Q1 2012
Housing affordability in California set a new record high in first quarter 2012 rising to 56 percent, according to C.A.R.’s first quarter Housing Affordability Index. The increase can be attributed to record-low interest rates and stabilization in home prices.

The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California rose to 56 percent in the first quarter of 2012, up from 55 percent in fourth-quarter 2011 and from 53 percent in first quarter 2011, according to C.A.R.’s Traditional Housing Affordability Index (HAI). The index was the highest since C.A.R. began tracking this statistic in 1988.

Home buyers needed to earn a minimum annual income of $55,688* (based on fourth quarter 2011 income data) to qualify for the purchase of a $276,040 statewide median-priced, existing single-family home in the first quarter of 2012. The monthly payment, including taxes and insurance on a 30-year fixed-rate loan, would be $1,392, assuming a 20 percent down payment and an effective composite interest rate of 4.16 percent. The effective composite interest rate in fourth-quarter 2011 was 4.30 percent and 4.90 percent in the first quarter of 2011.

In the San Francisco Bay Area, housing affordability rose or remained stable in all counties except Contra Costa County, where affordability declined by one percentage point. At 78 percent, San Bernardino County was the most affordable, while San Francisco County was the least affordable, with only 29 percent of households able to purchase the county’s median-priced home.

More info

RightArrow.gifS&P: 46 months to clear shadow inventory
Estimates by Standard & Poor’s Rating Services, based on first quarter 2012 data, show that it will take 46 months to clear the market’s supply of distressed homes, or the shadow inventory.

The agency’s latest estimate came in one month shy of the liquidation timeline determined in the fourth quarter of 2011.

While national residential mortgage liquidation rates appeared stable over the first three months of this year, these rates varied widely between local markets, which prevented any significant reduction in S&P’s months-to-clear estimate, the agency explained in its report.

Regional variations in how quickly servicers can clear the backlog of nonperforming loans are primarily due to differences in foreclosure procedures, judicial vs. non-judicial.

As of first-quarter 2012, S&P says its months-to-clear estimate in judicial states was almost two and half times as long as non-judicial states.

S&P includes in the shadow inventory all outstanding properties on which the mortgage payments are 90 or more days delinquent, properties in foreclosure, and properties that are REO. The agency also includes 70 percent of the loans that became current, or “cured,” from 90-day delinquency within the past 12 months because S&P says these loans are more likely to re-default.

More info

RightArrow.gifHigher foreclosure rates increase serious delinquencies 
According to a report from Foreclosure-Response.org, the serious delinquency rate, which includes loans 90 or more days past due plus foreclosures, increased for the first time after a downward trend between December 2009 and June 2011.

Serious delinquencies rose from 9.2 percent in June 2011 to 9.7 percent in December 2011 for the nation’s 100 largest metropolitan areas. While the 90-plus delinquencies component of the percentage is flat at 3.8 percent and has remained largely unchanged for the past four quarters, foreclosure rates continue to rise and now stand at 5.9 percent. In June 2011, the foreclosure rate was 5.5 percent.

Analysis with the data suggested the build-up of foreclosed homes in judicial states is the main reason behind the rising foreclosure rate.

Metros located in judicial states had foreclosure rates averaging 7.2 percent in December 2011 compared with 4.7 percent for metros in non-judicial states.

Also, when separating metro trends in judicial states from non-judicial, the foreclosure rate in judicial areas has actually increased since March 2009, when Foreclosure-Response.org began tracking the data, while the rate has been roughly flat in non-judicial metros for the last five quarters.

Nearly half, or 46, of the 100 largest U.S. metro areas are located in judicial states.

More info

  
RightArrow.gif2012 NAR member survey shows rising incomes
Income for REALTORS® rose for the first time in 2011 since 2002, according to NAR’s 2012 Member Profile.  

“The median income of a REALTOR® rose 2.3 percent to $34,900 in 2011, which is the first overall gain in nine years,” said Paul Bishop, NAR vice president of research.  “Many REALTORS® have persevered through very difficult market conditions and understand the cyclical nature of the business, but have never had to endure a cycle like the one that is presently waning.  The good news is home sales are rising, overall activity is expected to be notably better this year and individual prospects are much brighter given there are fewer Realtors® than several years ago.”

Members licensed as brokers typically earned $48,400 in 2011, while the median for sales agents was $27,200.

Higher median income was reported by experienced NAR members in the business for 16 years or more, who earned $50,200.  REALTORS® working 60 hours a week or more earned $80,900, and 17 percent of all members earned a six-figure income.

The typical NAR member has 11 years of experience and works 40 hours per week; 60 percent are women, who account for 55 percent of brokers and 66 percent of sales agents.  More than nine out of 10 REALTORS® are certain they will remain in the business for at least two more years.

More info

RightArrow.gifIncome to qualify for mortgage well-below U.S. median
The amount of income needed to qualify for a mortgage is well below the median income in most parts of the U.S., according to NAR data.

NAR found that the national median family income was $61,000 in the first quarter. If a buyer wanted to purchase a home at the national median price, he or she would need an annual income of $34,700 if making a 5 percent down payment. A 10 percent down payment would lower the requirement to $32,900, while a 20 percent down payment requires about $29,300.

The information on qualifying incomes to purchase a median-priced single-family home on a metropolitan area basis assumes a favorable credit rating and an interest rate of 4 percent with 25 percent of gross income set aside for principal and interest.

The NAR report also found that 32 percent of home purchases paid all-cash in first quarter 2012, and investors, who make up the bulk of cash purchasers, accounted for 22 percent of all transactions in the first quarter.

More info

RightArrow.gifInternet crime increases in 2011
According to a report by the Internet Crime Complaint Center (IC3), 2011 marked the third consecutive year that the IC3 received more than 300,000 complaints. The 314,246 complaints represent a 3.4 percent increase over 2010. The reported dollar loss was $485.3 million. As more Internet crimes are reported, IC3 can better assist law enforcement in the apprehension and prosecution of those responsible for perpetrating Internet crime.

More info

RightArrow.gifFast Facts
Calif. median home price: March 2012: $291,080 (Source: C.A.R.)
Calif. highest median home price by region/county March 2012: San Mateo, $677,900 (Source: C.A.R.)
Calif. lowest median home price by region/county March 2012: Tehama, $108,000 (Source: C.A.R.)

Calif. Pending Home Sales Index: March 2012: 143.7, an increase from the revised 126.5 recorded in February. 
 
Calif. Traditional Housing Affordability Index: First quarter 2012: 56 percent (Source: C.A.R.)

Mortgage rates: Week ending 5/10/2012 30-yr. fixed: 3.83% fees/points: 0.7% 15-yr. fixed: 3.05 fees/points: 0.7% 1-yr. adjustable: 2.73% Fees/points: 0.5% (Source: Freddie Mac)

 

Click here for more information on How to Register to Vote!


 




C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 150,000 REALTORS® statewide. 

Edited by: Mary Burroughs

Executive offices:
525 South Virgil Ave., Los Angeles CA 90020


Legislative offices:
980 Ninth Street #1430, Sacramento CA 95814

 Copyright © 2012 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
 
 

  May 9, 2012                                                                    

 Connect with C.A.R.

C.A.R. Newsline
   
   

 

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®.

Member Benefit C.A.R. Member Benefit #14: C.A.R. Newsline is a weekly e-newsletter covering vital industry information including economic reports, legislative developments, and new real estate products and service

RightArrow.gifC.A.R. fights fraud with new video PSAs
RightArrow.gifMajority of refinancing homeowners maintain or reduce mortgage debt in Q1
RightArrow.gifShort Sale Soundoff: BofA refines process for valuation disputes
RightArrow.gifBofA extends modification offers
RightArrow.gifAsking prices rise for third consecutive month in April
RightArrow.gifConsumer attitudes continue positive incremental trend
RightArrow.gifFast Facts

 


RightArrow.gifC.A.R. fights fraud with new video PSAs
In response to reports of increasing mortgage fraud, C.A.R. has created public service announcements (PSAs) to educate homeowners and warn consumers about the risks of being scammed by third parties, such as those that promise loan modifications for an up-front fee, which is often illegal. 

The PSAs, offered in English, Spanish, Cantonese, and Mandarin, will air on cable and local television stations throughout California over the next few months.

To watch the PSAs or share them with clients, please visit:http://www.car.org/aboutus/forconsumers/loanfraud/ 
 


* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

RightArrow.gifMajority of refinancing homeowners maintain or reduce mortgage debt in Q1
Freddie Mac reported this week that 79 percent of homeowners who refinanced their first-lien home mortgage either maintained about the same loan amount or lowered their principal balance by paying-in additional money at the closing table in the first quarter of 2012.  

Of these borrowers, 58 percent maintained about the same loan amount, and 21 percent of refinancing homeowners reduced their principal balance; the share of borrowers that kept about the same loan amount was the highest in the 26-year history of the analysis.

“Cash-out" borrowers, those who increased their loan balance by at least five percent, represented 21 percent of all refinance loans; the weighted average cash-out share during the 1985 to 2008 period was 50 percent.

The median interest rate reduction for a 30-year fixed-rate mortgage was about 1.5 percentage points, or a savings of about 27 percent in interest rate, the largest percent reduction recorded in the 27 years of analysis. Over the first year of the refinance loan life, the median borrower will save about $2,900 in interest payments on a $200,000 loan.

More info


* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

 

RightArrow.gifShort Sale Soundoff: BofA refines process for valuation disputes

Bank of America has refined the process for settling valuation disputes during a short sale.

The value of a property is established by independent third-party vendors shortly after a short sale is initiated. Occasionally, however, a listing agent may wish to contest that value. When that occurs, there is now a revised process for reconsidering the value.

Process Steps

  1. Tell your short sale specialist that you would like a reconsideration of the value.
  2. Receive an investor-specific, easy-to-complete form from your short sale specialist that specifies all requirements for a successful value dispute.
  3. Fill out the form and attach specified evidence.
  4. Stay in touch with your short sale specialist for results.
  5. Expect a value dispute review within 10-12 business days once all required information has been received.

 


When contesting a home value, make sure you have compelling evidence to support your claim.

Do not reference property pricing amounts in the narrative on the form. This violates appraiser independence policy and is against industry standards. Any reference to pricing will disqualify the dispute.

Provide comparables that are recent, proximate (nearby) and similar to the property in question.

  • “Recent” means sold within 90 days of the actual value document date.
  •  “Proximate” varies by location. In a rural area, for example, a home five miles away could be considered proximate.
  • You will be able to provide additional notes to highlight characteristics of the comps.


When the dispute centers on property condition or hazards:

  • Provide an itemized estimate from a licensed contractor on the contractor’s letterhead.
  • Provide photos to illustrate the repair, condition issue, or hazard you want to highlight.


More info

 


* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

RightArrow.gifBofA extends modification offers
Bank of America Home Loans has begun reaching out to customers who may be eligible for forgiveness of a portion of the principal balance on their mortgage under terms of a recent settlement among five major banks, 49 state attorneys general, and the federal government. 

The first letters in a targeted outreach to more than 200,000 potential candidates for this assistance are arriving in homes this week; most of the letters will be mailed by the third quarter of this year. The bank estimates average monthly savings of 30 percent on mortgage payments of customers who qualify for this program. 

Bank of America began making principal reduction offers under the program guidelines in March, initially concentrating on homeowners who were already in the modification review process. So far under this early initiative, about 5,000 trial modification offers have been mailed, providing a potential total of more than $700 million in forgiven principal. Homeowners are required to make at least three timely payments before the modification can become permanent. 

The wave of mailings beginning this week will reach a broader base of customers who may be eligible for this principal reduction program. The letters provide each homeowner with a description of the program and an invitation to provide financial information to begin the review process. 

To be eligible for this program, a homeowner must meet certain criteria, including:

  • Owes more on the mortgage than the property is worth today.
  • Was at least 60 days behind on payments on January 31, 2012.
  • Has a contractual monthly payment for principal, interest, property taxes, hazard insurance, and any applicable homeowner association fees totaling more than 25 percent of gross household income.
  • Has a loan that is owned and serviced by Bank of America, or serviced for another investor that has given the bank delegated authority to do such modifications.

For further information on the settlement programs, Bank of America Home Loans customers may call (877) 488-7814. 

More info

 
RightArrow.gifAsking prices rise for third consecutive month in April
Asking prices on for-sale homes rose 0.5 percent in April compared with March on seasonally adjusted basis, according to the latest report by Trulia’s Price Monitor. Together with increases in March and February, asking prices in April rose nationally 1.9 percent quarter over quarter, seasonally adjusted.  

Within the largest metro areas, asking prices rose year on year in some neighborhoods, but fell in others. Rents, however, rose in nearly all parts of these major metropolitan areas.

In Los Angeles, asking prices increased only in the downtown area. Prices fell elsewhere throughout the region, most of all in Long Beach, where rents also fell.

In the San Francisco Bay Area, prices rose most in San Francisco and fell furthest in Alameda County. 

More info

  
RightArrow.gifConsumer attitudes continue positive incremental trend
Despite slow job growth, Americans’ attitudes about homeownership, the economy, and personal finances continue to move incrementally in a positive direction, according to results from Fannie Mae’s April 2012 National Housing Survey.  The continued stabilization of consumer attitudes coupled with growth in areas such as home price expectations, whether it is a good time to sell one’s home, direction of the economy, and the percentage of Americans who saw an increase in their personal income indicate an alignment of factors that may influence Americans’ decision making about purchasing a home.

On average, Americans expect home prices to increase 1.3 percent over the next 12 months (the highest value yet recorded), while the percentage of Americans who say it is a good time to sell their home continued to rise to 15 percent in April (up from low, flat levels during 2011).  In turn, confidence in the economy’s direction rose to a survey all-time high in April (hitting 37 percent, an increase of 2 percentage points from last month).  Another positive trend is the increased share of those who reported their income as “significantly higher” from twelve months ago, which is now at the highest level recorded over the past year and 7 percentage points higher than those who reported income as “significantly lower” (the largest difference between the two since the survey began).

More info

RightArrow.gifFast Facts
Calif. median home price: March 2012: $291,080 (Source: C.A.R.)
Calif. highest median home price by region/county March 2012: San Mateo, $677,900 (Source: C.A.R.)
Calif. lowest median home price by region/county March 2012: Tehama, $108,000 (Source: C.A.R.)

Calif. Pending Home Sales Index: March 2012: 143.7, an increase from the revised 126.5 recorded in February. 
 
Calif. Traditional Housing Affordability Index: Fourth quarter 2011: 55 percent (Source: C.A.R.)

Mortgage rates: Week ending 5/3/2012 30-yr. fixed: 3.84% fees/points: 0.8% 15-yr. fixed: 3.07 fees/points: 0.7% 1-yr. adjustable: 2.70% Fees/points: 0.6% (Source: Freddie Mac)

 

 

C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 150,000 REALTORS® statewide.
 

Edited by: Mary Burroughs


Executive offices:
525 South Virgil Ave., Los Angeles CA 90020

Legislative offices:
980 Ninth Street #1430, Sacramento CA 95814


Copyright © 2012 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

 
 

 

 

 

May 2, 2012


 
 

     Connect with C.A.R.

C.A.R. Newsline
   
   

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®.

Member Benefit C.A.R. Member Benefit #14: C.A.R. Newsline is a weekly e-newsletter covering vital industry information including economic reports, legislative developments, and new real estate products and services.

RightArrow.gifHomeownership, vacancy rate decline slightly in Q1
RightArrow.gifEconomists say housing outlook continues to slowly brighten
RightArrow.gifShort Sale Soundoff: Lenders with fastest short sale response times
RightArrow.gifConstruction spending rises in March
RightArrow.gifWarning on Fair Housing Testers
RightArrow.gifHome values post largest monthly gain since 2006
RightArrow.gifTip of the Week: C.A.R. adds consumer fraud information to car.org
RightArrow.gifFast Facts

 

RightArrow.gifHomeownership, vacancy rate decline slightly in Q1
National vacancy rates in the first quarter of 2012 were 8.8 percent for rental housing and 2.2 percent for homeowner housing, according to the Department of Commerce’s Census Bureau. The rental vacancy rate of 8.8 percent was 0.9 percentage points lower than the rate recorded in first quarter 2011 and 0.6 percentage points lower than the previous quarter. The homeowner vacancy rate of 2.2 percent was 0.4 percentage points lower than first quarter 2011 and 0.1 percentage point lower than the fourth quarter rate.

The homeownership rate of 65.4 percent was 1 percentage point lower than the first quarter 2011 rate (66.4 percent) and 0.6 percentage points lower than the rate fourth quarter 2011 (66 percent).

In the first quarter of 2012, the median asking rent for vacant rental units was $721, and the median asking sales price for vacant for-sale units was $133,700.

The homeowner vacancy rates in principal cities (2.5 percent) and outside MSAs (2.6 percent) were higher than in the suburbs (1.9 percent). The homeowner vacancy rates in principal cities and in the suburbs were lower than a year ago, while the rate outside MSAs was not statistically different from the corresponding first quarter 2011 rate.

For the first quarter of 2012, the homeowner vacancy rate was higher in the South than the Northeast, but not statistically different from the rates in the Midwest and West. The homeowner vacancy rates in the Midwest, South, and West were lower than a year ago, while the rate in the Northeast was not statistically different from first quarter 2011 rates.

Approximately 86.1 percent of the housing units in the United States in first quarter 2012 were occupied, and 13.9 percent were vacant. Owner-occupied housing units made up 56.3 percent of total housing units, while renter-occupied units made up 29.8 percent of the inventory in first quarter 2012. 

More info
 

 

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

RightArrow.gifEconomists say housing outlook continues to slowly brighten
Mirroring the uneven economic recovery, the housing market is expected to move in a slow, gradual upward path in 2012, while encountering its share of speed bumps along the road, according to a forecast presented by the National Association of Home Builders (NAHB) on the housing and economic outlook.

While the latest monthly housing data have shown signs of a slight softening, NAHB Chief Economist David Crowe said this is more reflective of typical month-to-month volatility in the numbers and unusual seasonal factors than they are an indication of any significant downward trend in the broader housing market.

Crowe noted that numerous other fundamentals remain positive for housing at this time, including demographic factors (with pent-up household demand expected to ramp up and echo-boomers heading into their prime household formation ages), historically favorable mortgage rates that are not expected to move higher than 5 percent by the end of next year, more than 100 local markets currently listed on the NAHB/First American Improving Markets Index, and the fact that house price-to-income ratio has now returned to its historical average of about three-to-one versus the nearly five-to-one to which it had previously risen during the height of the housing boom.

However, he cautioned that housing still continues to face formidable challenges of its own -- such as rising foreclosures, persistently tight lending standards for home buyers and builders and difficulties in obtaining accurate appraisals. Moreover, disappointing job growth numbers in March and uncertainty in the European economy are undermining prospects for a vigorous recovery.

More info
 


* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

RightArrow.gifShort Sale Soundoff: Lenders with fastest short sale response times

RealtyTrac has compiled a list of data revealing which lending institutions tend to move through the short sale process the quickest.  According to the data, Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA) had the shortest timelines at 193 days in January 2012, a decrease compared with a year ago when short sales averaged 248 days.  Ally Financial came in second at 321 days, reducing its timeline as well from 393 days a year ago.

PNC Financial Group was third, taking 353 days, though the bank takes longer than it did a year ago when it took 206 days.  Wells Fargo came in fourth at 385 days, followed by Bank of New York Mellon, 402 days; Bank of America, 403 days; and Sun Trust, 404 days.

 

More info

 

 


* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 

 

RightArrow.gifConstruction spending rises in March
Construction spending during March was estimated at a seasonally adjusted annual rate of $808.1 billion, 0.1 percent above the revised February estimate of $807.3 billion. The March figure is 6 percent above the March 2011 estimate of $762.6 billion, according to the U.S. Census Bureau of the Department of Commerce.

Residential construction was at a seasonally adjusted annual rate of $244.1 billion in March, 0.7 percent  above the revised February estimate of $242.5 billion. 

More info

 
RightArrow.gifWarning on Fair Housing Testers
C.A.R.’s Legal Dept. is warning REALTORS® to make sure they are properly trained to handle fair housing issues before engaging in any property management services. Both governmental fair housing agencies and private organizations may be actively seeking to uncover discriminatory acts in rental housing by using testers who pose as prospective tenants. These testers may use Craigslist and other sources to inquire about the availability of a property for rent, submit rental applications, or do other things to identify landlords and agents who violate fair housing laws. For example, the fair housing laws protect, among many others, tenants who use service dogs and those with children, as well as require landlords to make reasonable accommodations for persons with disabilities.

C.A.R. has received reports that a private company also may be using testers posing as prospective tenants to upsell its own services. The company purportedly uses testers to catch agents engaging in discriminatory acts, and then issues demand letters offering to settle if the agents sign up for the company’s own fair housing training courses. In at least one report, a brokerage paid a $25,000 settlement and was also required to sign up for three years of training at that company for which it had to pay $10,000 per year.

The best way to ensure that you do not run afoul of the law is to be knowledgeable about and strictly comply with federal and state fair housing laws, particularly those pertaining to service dogs and disability accommodations. Violations of such laws expose REALTORS® to potential liability, as well as DRE disciplinary action for license suspension or revocation. 

  
RightArrow.gifHome values post largest monthly gain since 2006
Home values nationwide increased 0.5 percent from February to March, according to Zillow's first quarter Real Estate Market Reports. This marks the largest monthly increase in the Zillow Home Value Index since May 2006, when home values also rose 0.5 percent.

The Index fell 3.1 percent year-over-year to $146,200.

Nineteen of the 30 metro areas covered by the Zillow Home Value Forecast will reach a bottom in 2012, or have already reached a bottom. Several of those are expected to see significant home value increases in the next 12 months, including the Phoenix (6.5 percent), Miami-Ft. Lauderdale (5.6 percent), and Tampa (2.5 percent) metros, according to the forecast.

Twelve of the markets covered by the Zillow Home Value Forecast will experience home value declines in the next 12 months, although some of those are likely to reach a bottom in late 2012. Some metros, however, are anticipated to experience significant home value declines in the next 12 months, including the Atlanta metro, with home values falling 4.1 percent, and the Chicago metro, where values are expected to decline 3.8 percent.

Nationally, the Zillow Home Value Forecast shows that home values will fall 0.4 percent over the next 12 months, with many months showing no change or slight appreciation late this year, suggesting that U.S. home values could reach a bottom in late 2012.  

More info

 

RightArrow.gifTip of the Week: C.A.R. adds consumer fraud information to car.org
With the recent landmark National Mortgage Settlement between the nation’s five largest real estate loan servicers and state attorneys general over faulty foreclosure practices, troubled homeowners are at risk of falling victim to scam artists offering mortgage modification and other foreclosure prevention services. 

C.A.R. wants to help consumers from being defrauded and has launched a special section on car.org with information about forclosure-prevention, short sale, and other types of mortgage-related fraud, along with information on where to get help and where to report suspected cases of fraud.

More info


RightArrow.gifFast Facts
Calif. median home price: March 2012: $291,080 (Source: C.A.R.)
Calif. highest median home price by region/county March 2012: San Mateo, $677,900 (Source: C.A.R.)
Calif. lowest median home price by region/county March 2012: Tehama, $108,000 (Source: C.A.R.)

Calif. Pending Home Sales Index: March 2012: 143.7, an increase from the revised 126.5 recorded in February. 
 
Calif. Traditional Housing Affordability Index: Fourth quarter 2011: 55 percent (Source: C.A.R.)

Mortgage rates: Week ending 4/26/2012 30-yr. fixed: 3.88% fees/points: 0.7% 15-yr. fixed: 3.12 fees/points: 067% 1-yr. adjustable: 2.74% Fees/points: 0.6% (Source: Freddie Mac)

 
 



C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 150,000 REALTORS® statewide. 

Edited by: Mary Burroughs

Executive offices:
525 South Virgil Ave., Los Angeles CA 90020
 
 
Legislative offices:
980 Ninth Street #1430, Sacramento CA 95814

 




Copyright © 2012 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

 
Powered By Convio


 

 

April 12, 2012

C.A.R. Newsline
April 12,2012
   
   

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®.

Member Benefit C.A.R. Member Benefit #14:C.A.R. Newslineis a weekly e-newsletter covering vital industry information including economic reports, legislative developments, and new real estate products and services.

RightArrow.gifConsumer attitudes toward home buying shift

RightArrow.gifAsking prices increase in March
RightArrow.gif
Short Sale Soundoff: Tips for listing a short sale (video)
RightArrow.gif
Rents rise, home prices fall in February
RightArrow.gif
BofA makes C.A.R.-recommended changes to short sale process
RightArrow.gif
Obama administration releases March housing scorecard
RightArrow.gif
Tip of the Week: Time share scams on the rise
RightArrow.gif
Fast Facts

 

RightArrow.gifConsumer attitudes toward home buying shift
More consumers may be looking to purchase homes with a shift in several key housing market indicators, according to Fannie Mae’s March 2012 consumer attitudinal National Housing Survey. More Americans now expect both home rental and home purchase prices to increase over the next year. Nearly half of consumers expect higher rental prices, the highest number recorded since monthly tracking began in June 2010. These trends may be providing Americans with an increased sense of urgency to buy a home as 73 percent of Americans now believe it is a good time to buy a home, up from 70 percent in February.

Highlights of the survey include:

  • Thirty-three percent of respondents expect home prices to increase over the next 12 months, a five percentage point increase from last month, the highest level over the past 12 months.
  • On average, Americans expect home prices to increase by 0.9 percent over the next 12 months (up slightly since last month).
  • Thirty-nine percent of Americans say that mortgage rates will go up in the next 12 months, a five percentage point increase from last month.
  • On average, respondents expect home rental prices to increase by 4.1 percent over the next 12 months, a significant increase since February, and the highest number recorded to date.
  • Forty-eight percent of respondents think that home rental prices will go up, a three percentage point increase from last month and the highest number recorded to date.
  • Sixty-six percent of respondents say they would buy their next home if they were going to move, up one point since last month, while 30 percent say they would rent, up one point versus last month.


More info

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

RightArrow.gifAsking prices increase in March
Asking prices rose 1.4 percent nationally in March compared with the previous quarter, according to Trulia’s Price Monitor. On a month-over-month comparison, asking prices increased 0.9 percent in March and 0.6 percent in February.

Throughout 2011, asking prices rose slightly in several months of the year, but never more than 0.2 percent in a month. Asking prices in March were 0.7 percent below their level one year earlier.

Asking rents rose over the past year in almost all large metro areas included in the Trulia Rent Monitor. In the largest metros, rents rose 6.2 percent in New York and 6.1 percent in Chicago, but only 0.6 percent in Los Angeles. Rents rose strongly in Miami (12.1 percent) and Denver (9.9 percent), which also experienced large asking price increases. Meanwhile, rental affordability declined in places where rents rose while prices fell, most notably in San Francisco (rents up 11.1 percent), Seattle (9.7 percent), San Jose (9.4 percent), and Boston (9.2 percent).

More info

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

 

RightArrow.gifShort Sale Soundoff: Tips for listing a short sale (video)

C.A.R. has released another video in its short sale series. In “Tips for Listing a Short Sale,” California REALTOR® Neal Weichel explains the steps he takes prior to listing a short sale.


Tips for Listing a Short Sale.PNG

Watch:http://v.car.org/sixik3nh



* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

RightArrow.gifRents rise, home prices fall in February
Median rents rose 2 percent from February 2011 to February 2012, but home values declined 4.5 percent during that period, according to the February Zillow Real Estate Market Reports.

The Zillow Rent Index showed year-over-year gains for nearly 68 percent of metropolitan areas covered by the index. By contrast, only 8 percent of the metro areas covered saw home values rise.

Foreclosures continue to be a key driver in keeping home values down. Foreclosure resales accounted for 20.3 percent of all sales in February, slightly higher than their previous peak of 20.2 percent of all sales in March 2011. Foreclosure re-sales made up 19.1 percent of all sales in February 2011.

In the short term, national monthly rents declined slightly from January to February, falling 0.5 percent to $1,212. Home values fell 0.5 percent during the same period to $145,400.

More info


RightArrow.gifBofA makes C.A.R.-recommended changes to short sale process
Over the past few months, C.A.R. has worked with Bank of America to make changes to the bank’s short sale purchase contract addendum and Short Sale Real Estate Licensee Certification. Starting April 14, along with other changes, agents and brokers are no longer required to sign the Short Sale Addendum.

C.A.R. is pleased BofA has made these changes to its short sale documents in line with C.A.R. recommendations and looks forward to continuing to work with BofA to improve the short sale process in ways that will mutually benefit both REALTORS® and lenders.

More info


RightArrow.gifObama administration releases March housing scorecard
Mortgage delinquencies continued a downward trend and were substantially below year-ago levels, while sales of existing homes in January and February marked the strongest start to a year since 2007, according to the Obama administration’s March housing scorecard.

However, data on home prices changed little from the previous month – marking a fifth month of seasonal lows.

The March Housing Scorecard features key data on the health of the housing market and the impact of the Administration’s foreclosure prevention programs, including:

  • Mortgage delinquency rates continued a downward trend and are substantially below year ago levels. In addition, foreclosure completions ticked downward last month, although increased activity is expected in the coming months as firms lift processing delays following the landmark mortgage servicing settlement reached with the five largest banks in early February.
  • More than 5.8 million modification arrangements were started between April 2009 and the end of February 2012.
  • As of February, more than 970,000 homeowners received a permanent HAMP modification, saving more than $530 on their mortgage payments each month.


More info
 

RightArrow.gifTip of the Week: Time share scams on the rise

The Better Business Bureau is warning people to avoid a company called Wade Capital Management, which bills itself as a “vacation ownership closing company.” The company has attempted to get consumers to wire money to an account in Mexico as a “transfer commission fee” involving the sale of a time-share property. The Bureau said consumers should never wire money to people they don’t know.


RightArrow.gifFast Facts
Calif. median home price: February 2012: $266,660 (Source: C.A.R.)
Calif. highest median home price by region/county February 2012: Marin, $732,140 (Source: C.A.R.)
Calif. lowest median home price by region/county February 2012: Tehama, $85,000 (Source: C.A.R.)

Calif. Pending Home Sales Index: February 2012: 127.8, an increase from the revised 102.4 recorded in January.

Calif. Traditional Housing Affordability Index: Fourth quarter 2011: 55 percent (Source: C.A.R.)

Mortgage rates: Week ending 4/5/2012 30-yr. fixed: 3.98% fees/points: 0.7% 15-yr. fixed: 3.21 fees/points: 0.7% 1-yr. adjustable: 2.78% Fees/points: 0.6% (Source: Freddie Mac)

 

 
 
 



C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 150,000 REALTORS® statewide. 

Edited by: Mary Burroughs

Executive offices:
525 South Virgil Ave., Los Angeles CA 90020

Legislative offices:
980 Ninth Street #1430, Sacramento CA 95814

 

 

Copyright © 2012 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

 

 

 

March 28, 2012




 

 
 

     Connect with C.A.R.

C.A.R. Newsline
 
 

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®.

RightArrow.gifSurvey shows Americans continue to have strong aspirations to own a home
RightArrow.gifCalifornia pending home sales climb from previous month and year
RightArrow.gifFHFA House Price Index unchanged in January
RightArrow.gifREALTOR® Rally for Homeownership
RightArrow.gifCase-Shiller index declines in January
RightArrow.gifConsumer confidence decreases in February
RightArrow.gifHomeownership more affordable than renting in major metros
RightArrow.gifTip of the Week: Reporting a fraudulent deed on real property
RightArrow.gifFast Facts    

 

RightArrow.gifSurvey shows Americans continue to have strong aspirations to own a home
Fannie Mae's latest quarterly National Housing Survey focuses on the state of homeownership aspirations among Americans across all demographic groups. The survey finds that despite the recent housing crisis, most Americans continue to believe that owning their home is preferable to renting it. The data also indicate that while financial constraints and employment concerns may be keeping potential home buyers on the sidelines in the near term, future improvements in employment and personal finances, a pickup in interest rates in response to stronger economic growth, and stabilizing home prices may move Americans to act on their aspirations in coming years.

 

  • Across all education levels, Americans say owning makes more sense than renting.  This belief is held consistently across all demographic groups.
  • Nearly two-thirds of current renters say that they will buy a house at some point in the future.
  • Non-financial factors such as safety and quality of local schools continue to be the top reasons for buying a home across all income groups.
  • African-Americans and Hispanics are more likely to cite various benefits, such as buying a home as a way to build wealth, homeownership as a symbol of success, and civic benefits.


Attitudes about homeownership as an investment, financial constraints, and mortgage accessibility may mean that more Americans choose not to act on their aspiration for homeownership, thus potentially leading to lower homeownership rates.

  • The margin of Americans believing homeownership has the highest investment potential has declined over the past several years.
  • At the same time, the perceived safety of owning a home as an investment has trended downward, reaching a low of 63 percent in the fourth quarter of 2011.
  • In turn, groups with higher levels of education and higher incomes are more likely to think buying a home is a safe investment.



 

RightArrow.gifCalifornia pending home sales climb from previous month and year
C.A.R.’s Pending Home Sales Index (PHSI)* rose from a revised 102.3 in January to 127.8 in February, based on signed contracts.  The index also was up from the 111.8 index recorded in February 2011, marking the tenth consecutive month that pending sales were higher than the previous year.  

“A lack of inventory in the bank-owned (REO) and short sale market was a contributing factor to the decline in share of distressed sales in February,” said C.A.R. President LeFrancis Arnold.  “In fact, REO inventory declined 24 percent in February from the previous year, while short sale inventory dropped 17 percent during the same period.”

 

  • After declining for two straight months, equity sales increased in February, making up 51.1 percent of home sales in February.  Equity sales made up 49.9 and 44.8 percent of all sales in January 2012 and February 2011, respectively.
  • Meanwhile, the total share of all distressed property types sold statewide decreased in February to 48.9 percent, down from January’s 50.1 percent and from 55.2 percent in February 2011.
  • The share of short sales dipped slightly in February.  Of the distressed properties sold statewide in January, 23 percent were short sales, down from the previous month’s share of 23.8 percent but up from last February’s share of 22.9 percent.
  • The share of REO sales also edged down in February to 25.2 percent, down from January’s 25.9 percent and down from the 31.9 percent recorded in February 2011.



 

RightArrow.gifFHFA House Price Index unchanged in January
U.S. house prices were unchanged on a seasonally adjusted basis from December to January, according to the Federal Housing Finance Agency’s monthly House Price Index. The previously reported 0.7 percent increase in December was revised downward to reflect a 0.1 percent increase. For the 12 months ending in January, U.S. prices declined 0.8 percent. The U.S. index is 19.2 percent below its April 2007 peak and roughly the same as the February 2004 index level.

For the nine census divisions, seasonally adjusted monthly price changes from December to January ranged from a decrease of 1.7 percent in the West South Central division to an increase of 4.7 percent in the West North Central division.
 


 

RightArrow.gifREALTOR® Rally for Homeownership
The NATIONAL ASSOCIATION OF REALTORS® is sponsoring a rally on Capitol Hill in Washington, D.C., in May to better demonstrate organized real estate’s support for homeownership.  This rally will show our elected officials that no one cares more about helping families realize the dream of homeownership than REALTORS®.  Please join REALTORS® from California and around the country to stand together and be counted in this vital demonstration of support for the American Dream. 

The rally will be held on Thursday, May 17, at 9:30 a.m. 


RightArrow.gifCase-Shiller index declines in January
Data through January 2012, released this week by S&P Indices for its S&P/Case-Shiller Home Price Indices showed annual declines of 3.9 percent and 3.8 percent for the 10- and 20-City Composites, respectively. Both composites saw price declines of 0.8 percent in the month of January. Sixteen MSAs also saw home prices decrease over the month.  Eight MSAs and both composites posted new index lows in January. The 10- and 20-City Composites recorded marginal improvements in annual returns over December 2011 when they each posted declines of 4.1 percent. In addition to the composites, Dallas, Denver, Miami, Minneapolis, New York, Phoenix, San Diego, Seattle, Tampa, and Washington D.C. saw their annual rates improve compared with December; while nine of the MSAs saw their annual returns worsen compared with what was reported for December 2011. 

 
RightArrow.gifConsumer confidence decreases in February
The Conference Board Consumer Confidence Index, which had increased in February, pulled back slightly in March. The Index now stands at 70.2 (1985=100), down from 71.6 in February. The Present Situation Index, however, increased to 51 from 46.4. The Expectations Index declined to 83 from 88.4 in February.

Consumers' appraisal of current conditions improved in March, with those claiming business conditions are "good" increasing 14.3 percent from 13.7 percent.  However, those claiming business conditions are “bad” also increased, to 32.7 percent from 31.7 percent. Consumers' assessment of the job market was mixed.  Those saying jobs are "plentiful" increased to 9.4 percent from 7 percent, while those stating jobs are "hard to get" also rose, to 41 percent from 38.6 percent.

Consumers were less optimistic about the short-term outlook in February than they were in January.  The proportion of consumers expecting business conditions to improve over the next six months increased to 19.2 percent from 18.9 percent.  However, those anticipating business conditions will worsen also rose, to 13.5 percent from 11.8 percent. Consumers’ outlook for the labor market was moderately less upbeat. Those anticipating more jobs in the months ahead decreased to 17.3 percent from 18.8 percent, while those anticipating fewer jobs increased to 18.3 percent from 16.4 percent. The proportion of consumers expecting an increase in their incomes improved slightly to 15.8 percent from 15.5 percent.
 

RightArrow.gifHomeownership more affordable than renting in major metros
After years of home price declines and tightening rental markets, homeownership is now more affordable than renting in all but two of the 100 largest metros – even in expensive real estate markets such as New York, Los Angeles and Boston, according to Trulia. Only in Honolulu and San Francisco is renting often a better deal than buying. However, buying a home in these markets might make sense for people who plan to stay in their next home for at least five years and can benefit from the mortgage-interest tax deduction.

Trulia’s Winter 2012 Rent vs. Buy Index, which tracks whether it is more affordable to rent or buy a home in America’s 100 largest metropolitan areas, is based on asking prices for rental units and for-sale homes on Trulia.com between December 1, 2011, and February 29, 2012. The index reveals the relative cost of renting versus buying for similar homes in similar neighborhoods.

In the San Francisco Bay Area, homeownership is most expensive relative to renting in San Francisco, the Peninsula (San Mateo County) and in the South Bay (Santa Clara County). In the East Bay (Alameda County and Contra Costa County), where vacancies are higher and foreclosures more common, buying looks even better relative to renting than in the rest of the Bay Area. But the region overall has become more affordable, especially in San Francisco and San Mateo counties, where the price-to-rent ratio dropped more than three points between Winter 2011 and Winter 2012.

Even in real estate markets where buying is generally cheaper than renting a home, renting might actually be a better deal on a larger house. In most major metros, the price-to-rent ratio is lower for smaller homes, so buying seems even more affordable relative to renting for a one-bedroom or studio home than for a home with three or more bedrooms. In fact, renting a home with more than two bedrooms can be less expensive than buying in New York, NY-NJ and San Francisco. Size, however, factors less into the rent versus buy decision in Chicago and Miami.
 

 

RightArrow.gifTip of the Week: Reporting a fraudulent deed on real property
The California Dept. of Real Estate has issued a consumer alert about what to do if someone learns that a forged and/or fraudulent deed has been recorded against their real property.  According to the alert, those who have learned of the fraudulent deed must act immediately to protect their ownership interest in the home.  Homeowners should immediately gather and collect all of the information, documents, and other evidence and report the forged deed to:

  • The local police and/or Sheriff’s department, and to such police agencies where the property is located (if different from where the owner resides.)
  • The offices of the city and district attorneys where the home is located
  • The office of the recorder in the county where the property is located
  •  The local city’s or county’s department of consumer affairs
  • The California Secretary of State, Notary Public Section.
  • The California Dept. of Real Estate


 

RightArrow.gifFast Facts
Calif. median home price: February 2012: $266,660 (Source: C.A.R.)
Calif. highest median home price by region/county February 2012: Marin, $732,140 (Source: C.A.R.)
Calif. lowest median home price by region/county February 2012: Tehama, $85,000 (Source: C.A.R.)

Calif. Pending Home Sales Index: February 2012: 127.8, an increase from the revised 102.4 recorded in January. 
 
Calif. Traditional Housing Affordability Index: Fourth quarter 2011: 55 percent (Source: C.A.R.)

Mortgage rates: Week ending 3/22/2012 30-yr. fixed: 4.08% fees/points: 0.8% 15-yr. fixed: 3.30 fees/points: 0.8% 1-yr. adjustable: 2.84% Fees/points: 0.6% (Source: Freddie Mac)

 

 

 
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 150,000 REALTORS® statewide. 

Executive offices:
525 South Virgil Ave., Los Angeles CA 90020

Legislative offices:
980 Ninth Street #1430, Sacramento CA 95814

To view C.A.R.'s Privacy Policy click on this link:
http://www.car.org/aboutus/privacypolicy

 

 




Copyright © 2012 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

 
Powered By Convio


 

 

 

 

C.A.R. Newsline
 

February 29, 2012 

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®.

C.A.R. Member Benefit #14: C.A.R. Newsline is a weekly e-newsletter covering vital industry information including economic reports, legislative developments, and new real estate products and services

RightArrow.gifCase-Shiller index declines in Q4 2011
RightArrow.gifConsumer confidence increases in February
RightArrow.gifNew FHA premium structure announced
RightArrow.gifTip of the week: Marketers requesting upfront fees
RightArrow.gifFast Facts

RightArrow.gifCase-Shiller index declines in Q4 2011
The S&P/Case-Shiller national composite fell by 3.8 percent during the fourth quarter 2011 and was down 4 percent compared with the fourth quarter 2010. Both the 10- and 20-City Composites fell by 1.1 percent in December compared with November, and posted annual declines of 3.9 percent and 4 percent versus December 2010, respectively. With this latest data, all three composites are at their lowest levels since the housing crisis began in mid-2006.


In addition to both Composites, 18 of the 20 MSAs saw monthly declines in December compared with November. 

http://www.standardandpoors.com/servlet/BlobServer?blobheadername3=MDT-Type&blobcol=urldocumentfile&blobtable=SPComSecureDocument&blobheadervalue2=inline%3B+filename%3Ddownload.pdf&blobheadername2=Content-Disposition&blobheadervalue1=application%2Fpdf&blobkey=id&blobheadername1=content-type&blobwhere=1245329497678&blobheadervalue3=abinary%3B+charset%3DUTF-8&blobnocache=true

RightArrow.gifConsumer confidence increases in February
The Conference Board Consumer Confidence Index increased in February. The Index now stands at 70.8 (1985=100), up from 61.5 in January. The Present Situation Index increased to 45 from 38.8. The Expectations Index rose to 88 from 76.7 in January.

Consumers’ assessment of current conditions was more favorable in February. Those claiming business conditions are “good” increased slightly to 13.3 percent from 13.2 percent, while those claiming business conditions are “bad” decreased to 31.2 percent from 38.3 percent. Consumers’ appraisal of the labor market was also less pessimistic. Those stating jobs are “plentiful” increased to 6.6 percent from 6.2 percent, while those saying jobs are “hard to get” decreased to 38.7 percent from 43.3 percent. 

Consumers were more optimistic about the short-term outlook than they were last month.  The proportion of consumers expecting business conditions to improve over the next six months increased to 18.7 percent from 16.7 percent, while those anticipating business conditions will worsen decreased to 11.8 percent from 14.6 percent. Consumers’ outlook for the labor market was also more upbeat.  Those anticipating more jobs in the months ahead increased to 18.7 percent from 16.4 percent, while those anticipating fewer jobs declined to 16.9 percent from 19.1 percent. The proportion of consumers expecting an increase in their incomes improved to 15.4 percent from 13.8 percent.

http://www.conference-board.org/press/pressdetail.cfm?pressid=4418

RightArrow.gifNew FHA premium structure announced
As part of ongoing efforts to encourage the return of private capital in the residential mortgage market and strengthen the Federal Housing Administration’s (FHA) Mutual Mortgage Insurance Fund, Acting FHA Commissioner Carol Galante recently announced a new premium structure for FHA-insured single family mortgage loans.  FHA will increase its annual mortgage insurance premium (MIP) by 0.10 percent for loans under $625,500 and by 0.35 percent for loans above that amount.  Upfront premiums (UFMIP) will also increase by 0.75 percent. 

These premium changes will impact new loans insured by FHA beginning in April and June of 2012.  Details will soon be published in a Mortgagee Letter to FHA-approved lenders.

The Temporary Payroll Tax Cut Continuation Act of 2011 requires FHA to increase the annual MIP it collects by 0.10 percent.  This change is effective for case numbers assigned on or after April 1, 2012.  FHA is also exercising its statutory authority to add an additional 0.25 percent to mortgages exceeding $625,500.  This change is effective for case numbers assigned on or after June 1, 2012.

The UFMIP will be increased from 1 percent to 1.75 percent of the base loan amount.  This increase applies regardless of the amortization term or LTV ratio.  FHA will continue to permit financing of this charge into the mortgage.  This change is effective for case numbers assigned on or after April 1, 2012.

http://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2012/HUDNo.12-037

RightArrow.gifTip of the week: Marketers requesting upfront fees for class action promising home mortgage relief
This alert is written to warn consumers about marketing companies, unlicensed entities, lawyers, and so-called attorney-backed, attorney-affiliated, and lawyer referral entities that offer and sell false hope and request the payment of upfront fees for so-called “mass joinder” or class litigation that will supposedly result in extraordinary home mortgage relief. 

http://www.dre.ca.gov/pdf_docs/ca/ConsumeAlert_WarningreMassLitigation.pdf

RightArrow.gifFast Facts
Calif. median home price: January 2012: $268,280 (Source: C.A.R.)
Calif. highest median home price by region/county January 2012: Marin, $694,440 (Source: C.A.R.)
Calif. lowest median home price by region/county January 2012: Tehama, $110,000 (Source: C.A.R.)

Calif. Pending Home Sales Index: January 2012: 102.4, an increase from the revised 93.1 recorded in January 2011 
 
Calif. Traditional Housing Affordability Index: Fourth quarter 2011: 55 percent (Source: C.A.R.)

Mortgage rates: Week ending 2/23/2012 30-yr. fixed: 3.95% fees/points: 0.8% 15-yr. fixed: 3.19 fees/points: 0.8% 1-yr. adjustable: 2.73% Fees/points: 0.6% (Source: Freddie Mac)

C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 150,000 REALTORS® statewide

 Executive offices:
525 South Virgil Ave., Los Angeles CA 90020

Legislative offices:
980 Ninth Street #1430, Sacramento CA 95814

Reprinted by permission

Copyright © 2012 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

 

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~



 

 
C.A.R. Newsline
   
 December 15, 2010  

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®

 

RightArrow.gifPercentage of price-reduced homes rises in November
RightArrow.gif Numerous FHA condominium project approval dates extended
RightArrow.gif Majority of Americans expect housing to recover after 2012
RightArrow.gif C.A.R. Education annual sale
RightArrow.gif Foreclosure starts decline 9.3 percent in California
RightArrow.gif U.S. home values expected to decline $1.7 trillion during 2010
RightArrow.gif Study finds Americans still aspire to be homeowners
RightArrow.gif Weekly Fraud Alert: Fraud-For-Property increasing
RightArrow.gif C.A.R. Green Tip of the Week: Green greetings
RightArrow.gif Fast Facts

 

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

RightArrow.gif Percentage of price-reduced homes rises in November
The percentage of price-reduced homes listed for sale rose 24.1 percent in November compared with a year ago, according to ZipRealty’s Price Reduction Index, a monthly review of MLS-listed properties in 26 markets surveyed by the real estate brokerage.San Diego topped the list with the largest increase in price-reduced inventory, which rose 108.4 percent from 2009 to 2010.  Three other California districts also experienced large year-over-year increases in the amount of reduced-price inventory, including San Francisco, 100 percent; Orange County, 91 percent; and Los Angeles, 79 percent.

For the second consecutive month, total inventory declined in November. The percentage of inventory that has been reduced increased 0.1 percent compared with October as the number of price-reduced listings declined at a rate of 3.7 percent.

The median list price declined 2.8 percent in November compared with October to $234,484, and the average percentage of price reduction rose 7.6 percent.

http://onlinepressroom.net/ziprealty/e info


* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

RightArrow.gif Numerous FHA condominium project approval dates extended
The Federal Housing Agency (FHA) recently announced extensions to the approval dates for condominium projects that were previously set to expire Dec. 7, 2010.  The extensions were granted to reduce the impact of processing and reviewing the number of project approvals expiring at the same time, while recognizing current housing market conditions.

Under the new regulatory changes, condominium/townhome developments must be preapproved with the Dept. of Housing and Urban Development (HUD) in order for an FHA loan to be granted.  FHA loans currently represent almost half of all new mortgages nationwide.  Failure of a development to be preapproved and eligible for FHA loans will almost certainly impact the marketability and value of the development.

Condominium developments are encouraged to begin the reapproval or recertification process as early as possible, as it is not anticipated that any further extensions of project approvals will be issued.

In response, C.A.R. subsidiary Real Estate Business Services®, Inc. (REBS®) has launched Clarus FHA Approval™, powered by FHA Pros LLC.  Clarus FHA Approval™ offers condominium certification services at discounted prices to condominium associations that work with a REALTOR®.  Further details about this service may be found by calling (818) 338-6588.

Clarus FHA Approval™ services will be expanded in 2011 to include Eligibility Check a unique searchable database that allows C.A.R. members to determine real-time FHA loan eligibility status by individual property address. This service will help members and their FHA clients avoid failed transactions and non-recoverable costs due to undetermined FHA loan eligibility status.

http://www.fhaoutreach.gov/FHAFAQ/


* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

RightArrow.gif Majority of Americans expect housing to recover after 2012
Nearly 60 percent of Americans who responded to a recent survey expect the housing market recovery to take at least another two years.  The survey, which gauges home buyers’ attitudes toward foreclosed homes, was conducted by Harris Interactive® on behalf of Trulia and RealtyTrac.

When asked about their faith in lenders, half of U.S. adults surveyed said they have less faith in mortgage lenders, banks, and the government as a result of the recent robosigning events.  An additional 35 percent believe the robosigning issue will delay the housing market’s recovery, while 6 percent think robosigning will not have any effect on the housing market recovery.

Nearly half of homeowners with a mortgage said they would consider walking away if their mortgage was underwater, an increase compared with May 2010, when 41 percent said they would consider walking away from an underwater mortgage.http://www.realtytrac.com/content/press-releases/new-survey-reveals-58-percent-of-americans-expect-housing-market-to-recover-after-2012-according-to-trulia-and-realtytrac-6211


* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

RightArrow.gif Foreclosure starts decline 9.3 percent in California

Foreclosure starts declined 9.3 percent in California from October to November and Notice of Trustee filings decreased 1 percent, according to ForeclosureRadar’s November Foreclosure Report.

Cancellations of foreclosure sales declined 8.5 percent and were down 54 percent in November compared with their peak level reached in June, according to the report.

http://www.foreclosureradar.com/foreclosure-report

*******************************************************

RightArrow.gif  U.S. home values expected to decline $1.7 trillion during 2010
Home values nationwide are projected to decline more than $1.7 trillion, 63 percent more than the $1 trillion-decline experienced in 2009, according to a recent analysis by Zillow Real Estate Market Reports. 

Based on the report, the bulk of the total value lost during 2010 was in the second half of the year.  From January to June, the housing market lost $680 billion in value.  From June to December, Zillow projects residential home value losses will top $1 trillion.

Less than one-fourth (31) of the 129 markets tracked by Zillow showed gains in total home values during 2010. Among those were the Boston metropolitan statistical area (MSA), which gained $10.8 billion in value, and the San Diego MSA, which gained $10.2 billion.

Declines in home values have led to increases in the percentage of homeowners in negative equity. At the end of 2009, 21.8 percent of single-family homeowners with mortgages were in negative equity, meaning they owed more on their mortgage than their home was worth. In the third quarter of 2010 – the last time Zillow calculated negative equity – 23.2 percent were underwater.

http://www.foreclosureradar.com/foreclosure-report

RightArrow.gif Study finds Americans still aspire to be homeowners
Americans—both current homeowners and renters—still strongly aspire to own a home and to maintain homeownership, despite a slow recovering housing market, according to a study released by Fannie Mae.  However, demographic trends combined with financial caution among consumers are contributing to an increased willingness to rent.

More than half (51 percent) of current homeowners and renters say that the housing crisis has not affected their overall willingness to buy a home, according to the study. However, while homeownership aspirations are high for the long-term, Americans have near-term doubts about buying.

Overall, according to Fannie Mae's National Housing Survey third quarter results, one-third of Americans (33 percent) would be more likely to rent their next home than buy, up from 30 percent in January 2010. Among renters, 59 percent said they would continue to rent in their next move, compared with 54 percent in January 2010.

http://fanniemae.com/newsreleases/2010/5247.jhtml;jsessionid=44W3AER04RFVDJ2FQSHSFGQ

******************************************

RightArrow.gif Weekly Fraud Alert: Fraud-For-Property increasing
Research by Calif.-based company Interthinx shows "fraud for property," defined as fraud to attain homeownership, which was once considered to be less dangerous than "fraud for profit," is returning to the industry.

http://www.realestatechannel.com/us-markets/residential-real-estate-1/interthinx-appintelligence-sysdome-kevin-coop-verisk-analytics-mortgage-fraud-trend-3441.php


 

*********************************************

RightArrow.gif C.A.R. Green Tip of the Week: Green greetings
This holiday season, try online greeting cards or opt for recycled paper and cards that get second lives in the garden. Some are infused with seeds, and recipients can plant the cards.

More info


 

*************************************************

RightArrow.gif Fast Facts 
Calif. median home price: October 2010: $304,220 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region October 2010: Santa Barbara So. Coast $864,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region October 2010: High Desert $125,060 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Third quarter 2010: 64 percent (Source: C.A.R.)
Mortgage rates: Week ending 12/9/2010 30-yr. fixed: 4.61 Fees/points: 0.7% 15-yr. fixed: 3.96% Fees/points: 0.7% 1-yr. adjustable: 3.27% Fees/points: 0.6% (Source: Freddie Mac)  

 

 


 




C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. 

Edited by: Mary Burroughs

Executive offices:
525 South Virgil Ave., Los Angeles CA 90020

Legislative offices:
980 Ninth Street #1430, Sacramento CA 95814

 

 

 


Copyright © 2010 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) 
 
 






 

    
C.A.R. Newsline
 December 8, 2010  
 
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
MID update
Last week, the President’s Deficit Reduction Commission released preliminary recommendations, and one of its provisions called for dramatically limiting the mortgage interest deduction. Since then, the Commission failed to approve the recommendations.  However, it is still very likely that legislation will be introduced next year to curtail the use of MID.  As you know, even discussion about changing the MID could have negative implications on the housing market.

Last week, NAR issued a Call-for-Action and asked all REALTORS® to call their Congressional Representatives to urge them to preserve the MID.  In the coming days, NAR, again, will ask for your help by contacting California Sens. Diane Feinstein and Barbara Boxer to voice your concerns about limiting the MID.

C.A.R. will continue to keep you informed of the latest developments regarding MID.  Please stay tuned for more details.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
Forecast shows employment, housing increases in 2011
The A. Gary Anderson Center for Economic Research at Chapman University released the results of its 33rd annual economic forecast for the U.S. and California this week.
According to the forecast, the economic recovery will continue at a relatively slow pace in 2011, but will be enough to generate 1.7 million net new jobs nationwide, which will cause the national unemployment rate to drop about one percent, to 8.6 percent, by year-end 2011.
Although housing affordability is at historically high levels, the forecast finds there will be no sharp rebound in housing next year. The forecast calls for housing starts to increase 7.2 percent, from 600,000 to 640,000 units. Home buyers’ concerns about unemployment and the ongoing problems in the mortgage industry, coupled with a large excess supply of vacant units on the market, will constrain production of new homes.
The forecast also calls for continuing improvement in resale housing prices in 2011, with housing prices nationwide increasing 3.3 percent. Like new housing starts, home prices will be constrained by consumer anxiety as well as the significant overhang of vacant housing units on the market.
In California, employment is forecasted to increase by 1.2 percent—167,000 net new payroll jobs, with the job recovery positively affecting housing demand. And the expected rebound in income, low mortgage rates, and lower home prices are helping to keep housing affordability at historical highs, leading to increased housing demand, particularly for first-time home buyers.
A pickup in new residential construction, high inventory of resale homes, and existing shadow inventory will mostly offset the positive factors influencing demand.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
Freddie Mac temporarily suspends foreclosure evictions
Freddie Mac says it has ordered all evictions involving foreclosed, occupied, single-family and 2- to 4-unit properties that had Freddie Mac mortgages to be suspended from Dec. 20, 2010 to Jan. 3, 2011. 

"If the property is occupied, our foreclosure attorneys will suspend the eviction to provide a greater measure of certainty to families during the holidays," said Anthony Renzi, executive vice president of single family portfolio management at Freddie Mac.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
Consumer confidence increases in November 
The Conference Board Consumer Confidence Index, which had improved in October, increased further in November. The Index now stands at 54.1 (1985=100), up from 49.9 in October. The Present Situation Index rose to 24.0 from 23.5 and the Expectations Index increased to 74.2 from 67.5 last month.
“Consumer confidence is now at its highest level in five months, a welcome sign as we enter the holiday season,” said Lynn Franco, director of The Conference Board Consumer Research Center:  “Consumers’ assessment of the current state of the economy and job market, while only slightly better than last month, suggests the economy is still expanding, albeit slowly.”
Consumers’ assessment of current-day conditions was virtually unchanged from October, while their assessment about the short-term outlook was more optimistic than in October.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
 
Americans uncertain housing market has bottomed
A new survey by Fannie Mae finds that Americans are less certain that the housing market has bottomed and continue to be wary of buying a home. 
The percentage of Americans who think it is a good time to buy a home declined 2 percentage points to 68 percent in the latest survey, while the percentage of Americans who think it is a bad time to buy a home increased 3 percentage points to 29 percent, according to the survey.  Similar to the last survey, an overwhelming majority of Americans (85 percent) believe it is a bad time to sell a home, up 2 percentage points since June.
One-quarter of respondents think that home prices will rise during the next 12 months, 6 percentage points lower than in the second quarter survey, while 22 percent expect home prices to decline, an increase of 4 percentage points. Americans continue to believe that rental prices will rise more than home prices and continue to believe that rental prices will go up rather than go down by a ratio of almost 4 to 1.

 
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
RightArrow.gifWeekly Fraud Alert: Updated mortgage fraud report 
CoreLogic has updated its 2010 Mortgage Fraud Trends Report, which states that mortgage fraud increased by more than 20 percent since the fraud rates reached their lowest point in early 2009.  The increase in reported fraud by lenders is attributed to fraudsters migrating toward higher risk, high volume loan programs, including those offered by the Fair Housing Administration (FHA), Home Affordable Refinance Program (HARP), as well as short sales and real estate owned (REO) sales.

 
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
RightArrow.gifC.A.R. Green Tip of the Week:  Green tax credits expiring soon
Tax credits are available for homeowners who make upgrades that help save energy and reduce utility bills such as energy-efficient windows and doors, insulation, and heating and cooling equipment.  Homeowners have until Dec. 31 to qualify for tax credits of up to $1,500.

 
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
RightArrow.gifFast Facts 
Calif. median home price: October 2010: $304,220 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region October 2010: Santa Barbara So. Coast $864,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region October 2010: High Desert $125,060 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Third quarter 2010: 64 percent (Source: C.A.R.)
Mortgage rates: Week ending 12/2/2010 30-yr. fixed: 4.46 Fees/points: 0.8% 15-yr. fixed: 3.81% Fees/points: 0.7% 1-yr. adjustable: 3.25% Fees/points: 0.6% (Source: Freddie Mac)  
 
 


 
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. 

Edited by: Mary Burroughs


Executive offices:
525 South Virgil Ave., Los Angeles CA 90020

Legislative offices:
980 Ninth Street #1430, Sacramento CA 95814


To view C.A.R.'s Privacy Policy click on this link:
http://www.car.org/aboutus/privacypolicy

 

 

 
Copyright © 2010 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) 
 
 

 

C.A.R. Newsline
   
 December 1, 2010
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
 
 
RightArrow.gifDeficit Commission report proposes changes to MID
The White House’s Deficit Reduction Commission issued a proposal this week that calls for changes in how the country spends money and collects taxes.  Among the recommendations that could be made to Congress is a proposal to change the mortgage interest deduction.
The proposal recommends offering a 12 percent nonrefundable tax credit to all taxpayers and capping the mortgage-interest deduction to loans less than $500,000, with homeowners receiving no credit from mortgages on a second home.
C.A.R. strongly opposes the proposal and has consistently communicated its opposition to any such change to elected officials.  As the housing market continues to recover from the worst financial crisis in recent history, any change that reduces the ability of the market to heal is misguided and must be rejected.  The proposal from the Deficit Reduction Commission will negatively impact the housing market, further erode opportunities for homeownership across the country, and will contribute to further price declines and diminished equity for homeowners.
C.A.R. is working closely with NAR staff in Washington, D.C. to make certain that the real estate industry’s opposition to this proposal is heard and its far-reaching implications understood.

 

 
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
RightArrow.gifNew home sales decline in October
Sales of new single-family houses declined 8.1 percent in October compared with September to a seasonally adjusted annual rate of 283,000 units, according to the U.S. Census Bureau and the Dept. of Housing and Urban Development.  The annual rate decreased 28.5 percent compared with October 2009.
The median sales price of new houses sold in October was $194,900; the average sales price was $248,200. The seasonally adjusted estimate of new houses for sale at the end of October was 202,000 units, representing a supply of 8.6 months at the current sales rate.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
RightArrow.gifCase Shiller Index declines 2 percent in Q3
The S&P/Case-Shiller Home Price Index declined 2 percent in the third quarter, after having risen 4.7 percent in the second quarter. Nationally, home prices are 1.5 percent below their year-earlier levels.  In September, 18 of the 20 MSAs covered by the Index and both monthly composites were down.   Only the two composites and five MSAs showed year-over-year gains.
The S&P/Case-Shiller U.S. National Home Price Index, which covers all nine U.S. census divisions, recorded a 1.5 percent decline in the third quarter of 2010 over the third quarter of 2009.  In September, the 10-City and 20-City Composites recorded annual returns of 1.6 percent and 0.6%, respectively.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
 
RightArrow.gifNew HUD Web site provides economic, housing data
The U.S. Dept. of Housing and Urban Development (HUD) recently unveiled a new Web site that offers a wide variety of economic and housing market data at the regional, state, metropolitan area, and county levels.
The Web site incorporates data from the Census Bureau, Labor Dept., state and local government, housing industry sources, and HUD’s field economists.  It also employs interactive maps that allow visitors to access reports.
Visitors to the site can find the following reports:
  • Market at a Glance: Economic and housing market data trends for every metropolitan area and county nationwide with employment data updated on a monthly basis.
  • Regional Housing Market Profiles: Regional profiles focused on the most-recent housing rental and sales activity for the past two years.
  • Regional Narratives: Broad overviews of economic and housing market trends within ten regions of the U.S.
  • Comprehensive Housing Market Analysis: Housing market analyses periodically updated by HUD field economists.
More info 
 

 

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

 
RightArrow.gifNovember housing scorecard
The November edition of the Obama Administration’s Housing Scorecard shows continued signs of stabilization in house prices and increased home affordability, due in part to record-low mortgage rates, according to the U.S. Dept of Housing and Urban Development (HUD) and the U.S. Dept. of the Treasury.
The November Housing Scorecard features key data on the health of the housing market including:
  • An additional 1 million families refinanced their mortgages in the last quarter, taking advantage of the lowest rates in history on 30-year fixed mortgages.
  • As expected with the expiration of the federal home buyer tax credit, new and existing home sales have remained below levels seen in the first half of 2010. At the same time, home prices remained level in the past year after 33 straight months of decline and homeowners added $95 billion in home equity in the second quarter.
  • More than 3.73 million modification arrangements were started between April 2009 and the end of August 2010 —more than double the number of foreclosure completions during that time.
RightArrow.gifHousing affordability remains above 70 percent in Q3
The National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) indicated that 72.1 percent of all new and existing homes sold in the third quarter of 2010 were affordable to families earning the national median income of $64,400.  The HOI for the third quarter nearly equaled the record-high 72.5 percent set during the first quarter of 2009 and marked the seventh consecutive quarter that the index rose above 70 percent. Until 2009, the HOI rarely topped 65 percent and never reached 70 percent.
"With interest rates remaining at historically low levels, and house prices starting to stabilize, homeownership is within reach of more households than it has been for almost 20 years," said NAHB Chairman Bob Jones.
Indianapolis-Carmel, Ind., was the most affordable major housing market in the country at 93.3 percent.  Also near the top of the list of the most affordable major metro housing markets were Youngstown-Warren-Boardman, Ohio-Pa.; Grand Rapids-Wyoming, Mich.; and Dayton, Ohio, and Wichita, Kan.
New York-White Plains-Wayne, N.Y.-N.J., continued to lead the nation as the least affordable major housing market during the third quarter of 2010.  Other major metro areas near the bottom of the affordability scale included San Francisco; Bridgeport-Stamford-Norwalk, Conn.; Los Angeles-Long Beach-Glendale, Calif.; and Santa Ana-Anaheim-Irvine, Calif., respectively.
RightArrow.gifPrice reductions nationwide unchanged in November
Price reductions on homes listed for sale nationwide remained unchanged at 27 percent in November, according to the latest report from Trulia.com.  The average reduction also remained flat at 10 percent and the total dollar amount of all reductions increased to $31.5 billion.  However, despite national price reduction levels remaining stagnant, 15 major U.S. cities reached an all-time high for price reductions on home listings.
Four California cities ranked in the top 15 list of cities with record-high percentage in price reductions: Fresno, 32 percent; Long Beach, 32 percent; San Diego, 29 percent; and Sacramento, 28 percent.
RightArrow.gifCalifornia housing production declines in October
Building permits were pulled for 2,108 total housing units in October, a 28-percent decrease compared with a year ago and a 28-percent decrease compared with the month prior, according to statistics compiled by the Construction Industry Research Board (CIRB).  Permits for single-family homes totaled 1,364 units, down 37 percent compared with October 2009 and down 21 percent from September.
For the first ten months of the year, permits were pulled for 34,508 units, an increase of 14 percent compared with the same period in 2009, when 30,194 permits were issued. Permits for single-family homes fell behind last year’s pace for the first time this year, down 2 percent when compared to the first ten months of 2009, while multifamily permits were up 52 percent.
RightArrow.gifWeekly Fraud Alert: Top 10 cities with mortgage fraud
Business Insider has compiled a list of the top 10 cities being flooded with mortgage fraud.
RightArrow.gifC.A.R. Green Tip of the Week: Cutting power to devices not in use
A New York-based company, ThinkEco, has developed the “modlet,” a modern, two-plug outlet that automatically cuts power to plugged-in devices when not in use.  The modlet goes on sale to consumers next year and will retail for approximately $40.
RightArrow.gifFast Facts 
Calif. median home price: October 2010: $304,220 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region October 2010: Santa Barbara So. Coast $864,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region October 2010: High Desert $125,060 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Third quarter 2010: 64 percent (Source: C.A.R.)
Mortgage rates: Week ending 11/24/2010 30-yr. fixed: 4.40 Fees/points: 0.8% 15-yr. fixed: 3.77% Fees/points: 0.7% 1-yr. adjustable: 3.23% Fees/points: 0.6% (Source: Freddie Mac)  
 
 

 

C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. 

Edited by: Mary Burroughs

Executive offices:
525 South Virgil Ave., Los Angeles CA 90020

Legislative offices:
980 Ninth Street #1430, Sacramento CA 95814


 

 
Copyright © 2010 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) 
 
 

 

 

    
C.A.R. Newsline
 November 24, 2010
RightArrow.gif
  Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® 
 
 
RightArrow.gifCalifornia home sales decline from previous month, year
California home sales declined in October, from both the previous month and previous year, according to data from C.A.R. 
Statewide home resale activity declined 3.5 percent in October to a seasonally adjusted annualized rate of 450,360, down from September’s revised pace of 466,930, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide.  The October pace was down 19.6 percent from the revised 560,390 sales pace recorded in October 2009.
“October’s home sales figures reflect the seasonal decline in sales that typically occurs this time of year.  Additionally, persistent worries about the economy and job security are affecting home sales, despite low mortgage rates and strong affordability,” said C.A.R. President Beth L. Peerce.
The median price of an existing, single-family detached home sold in California during October was $304,220, down 1.8 percent from September’s $309,720 revised median price.  October’s median price was up 2.3 percent from the $297,500 median price recorded for the same period a year ago, marking 12 consecutive months of year-over-year price gains.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
RightArrow.gifConsumer sentiment slightly lower in October
The Reuters/University of Michigan Consumer Sentiment Index declined to 67.7 in October compared with 68.2 in September and 70.6 in October 2009.  The Current Conditions Index improved, while future expectations for the economy worsened.  A year-to-year decline of 9.8 percent was recorded in the Expectations Index, a component of the Index of Leading Economic Indicators.

 
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
 
RightArrow.gifFannie Mae launches new pilot program
Fannie Mae recently announced it is starting a pilot program to collect and manage real estate purchase offers for Fannie Mae-owned properties in Orlando, Fla., San Diego, Calif., and Wayne County, Detroit, Mich. Through the pilot, real estate agents submit offers online on behalf of their clients, receive confirmations, and track the status of submitted offers. The HomePath Online Offers feature is now available on www.HomePath.com for homes in the pilot areas.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
RightArrow.gifC.A.R. launches new incentive program for home sellers
C.A.R. is launching Home Payment Protection Program (HPPP), a program similar to the successful C.A.R.H.A.F. Mortgage Protection Program that pays a home buyer’s mortgage if he or she is laid off.
 
The Home Payment Protection Program is offered by REALTORS® to sellers at the time of listing as an added incentive to prospective buyers.  The program is paid for by the seller and is completely optional.

The program covers both first-time and repeat- buyers for 12 months from escrow closing and provides up to six mortgage payments up to $1,000 or $1,500, depending on the coverage level the seller chooses.  A seller can choose to pay $200 for six mortgage payments up to $1,000 or $275 for six mortgage payments up to $1,500. 

“C.A.R.’s Home Payment Protection Program is a win-win benefit for both buyers and sellers,” said C.A.R. President Beth L. Peerce.  “By offering the Home Payment Protection Program as an added incentive to buyers, sellers have an additional way of differentiating their home from others and can sell their home more quickly, while prospective buyers who are feeling uncertain about their employment situation have an added layer of security,” she said.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
RightArrow.gifCoreLogic Home Price Index declines in September
CoreLogic recently released its September Home Price Index (HPI) that shows home prices in the U.S. declined for the second consecutive month after rising slightly for the first seven months of the year.  National home prices, including distressed sales, declined 2.79 percent in September 2010 compared with September 2009 and declined 1.08 percent in August 2010 compared with August 2009. Excluding distressed sales, year-over-year prices declined 0.73 percent in September 2010.
Highlights of the September 2010 HPI:
  • The top five states with the highest appreciation, including distressed sales, were: New York, 2.67 percent; North Dakota, 1.73 percent; California, 0.86 percent; Nebraska, 0.78 percent; and Virginia, 0.77percent. 

     
  • The five states with the greatest depreciation, including distressed sales, were Idaho (-14.04 percent), Alabama (-8.9 percent), Mississippi (-8.3 percent), Florida (-7.68 percent) and New Mexico (-7.47 percent).

 
RightArrow.gifFHA report to Congress shows decline in insurance claims
The Federal Housing Administration (FHA) released its annual report to Congress last week on the financial status of its Mutual Mortgage Insurance (MMI) Fund -- FHA’s principal insurance account that includes all single-family and reverse mortgage activity.  FHA’s study finds that since last year, the capital reserve ratio held steady, insurance claims declined significantly, and the economic value of FHA’s single-family insurance program grew by more than $1 billion, from $3.6 billion in 2009 to $4.7 billion in 2010.
Like last year’s report to Congress, the report shows that FHA is sustaining significant losses from loans insured prior to 2009 and its capital reserve ratio remains below the congressionally mandated threshold of two percent of all insurance-in-force. However, the report concludes that under conservative assumptions of future growth of home prices, and without any new policy actions, FHA’s capital ratio is expected to approach two percent in 2014 and exceed the statutory requirement in 2015.
Over this past year, FHA:
  • Served more than 1.75 million households by insuring $319 billion in single-family mortgages. This volume was second only to FY 2009.
  • Enabled 882,000 families to become homeowners for the first time. This represents one-third of all first-time buyers in the nation.
  • Helped more than 450,000 families avoid foreclosure through loss mitigation actions.
  • Helped 556,000 families to refinance their mortgage at lower interest rates, saving households an average of more than $140 per month.
  • Provided access to credit for close to 40 percent of purchase mortgages, including 60 percent of all African-American and Hispanic homebuyers.
  • Helped more than 450,000 families avoid foreclosure through loss mitigation actions.

 
RightArrow.gifDelinquencies and loans in foreclosure decrease, foreclosure starts rise
The delinquency rate for mortgage loans on one-to-four-unit residential properties decreased to a seasonally adjusted rate of 9.13 percent of all loans outstanding as of the end of the third quarter of 2010, a decrease of 72 basis points from the second quarter of 2010, and a decrease of 51 basis points from 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 third quarter was 1.34 percent, up 23 basis points from last quarter, but down eight basis points from one year ago. The percentage of loans in the foreclosure process at the end of the third quarter was 4.39 percent, down 18 basis points from the second quarter of 2010 and down eight basis points from one year ago. The seriously delinquent rate, the percentage of loans that are 90 days or more past due or in the process of foreclosure, was 8.70 percent, a decrease of 41 basis points from last quarter, and a decrease of 15 basis points from the third quarter of last year.
Foreclosure starts year-over-year increased in 33 states, with the largest increases coming in Washington, Indiana, and South Carolina.  The largest decreases were in Nevada, California, and Florida.

 
RightArrow.gifForeclosure sales drop in Western states
Foreclosure sales declined across the Western states in October amid foreclosure suspensions by some lenders, according to a report by ForeclosureRadar.  ForeclosureRadar's monthly reports cover California, Arizona, Nevada, Oregon, and Washington.
In California, notice of default filings declined 25.5 percent year-over-year in October to 27,217.  Nevertheless, overall bank-owned (REO) inventory in California rose 16.5 percent year-over-year and 1.5 percent from September.

Foreclosure time frames in California continued to rise compared with the same period last year. An average of 279 days passed between the filing of a notice of default and a sale at auction, up from 211 days in October 2009. An additional 210 days passed on average between the sale at auction and when the bank resold the property, up from 183 days.
RightArrow.gifWeekly Fraud Alert: Cash for Keys
The DRE recently issued a consumer alert to provide some guidance for consumers and licensees when involved in a “Cash for Keys” program to minimize any misunderstandings or violations of the law.
RightArrow.gifC.A.R. Green Tip of the Week:  Green by design
Design your mailings to be recyclable by printing with water-based inks, on uncoated paper stocks, and sending windowless envelopes. Print on both sides of the paper to save resources and reduce mailing costs.

 
RightArrow.gifFast Facts 
Calif. median home price: October 2010: $304,220 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region October 2010: Santa Barbara So. Coast $864,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region October 2010: High Desert $125,060 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Third quarter 2010: 64 percent (Source: C.A.R.)
Mortgage rates: Week ending 11/18/2010 30-yr. fixed: 4.39 Fees/points: 0.9% 15-yr. fixed: 3.76% Fees/points: 0.7% 1-yr. adjustable: 3.26% Fees/points: 0.6% (Source: Freddie Mac)  


 
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. 

Edited by: Mary Burroughs

Executive offices:
525 South Virgil Ave., Los Angeles CA 90020

Legislative offices:
980 Ninth Street #1430, Sacramento CA 95814


To contact C.A.R., click on this link:
http://www.car.org/?view=ContactUs 

 
Copyright © 2010 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) 
 
 


 

   
C.A.R. Newsline
 November 3, 2010
RightArrow.gif
  Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® 
 
RightArrow.gifAnnual home price gains slow in August
Data released by S&P/Case-Shiller for its U.S. National Home Price Index indicates that annual growth rates in 17 of the 20 MSAs and the 10- and 20-City Composites slowed down in August compared with July.  The 10-City Composite rose 2.6 percent and the 20-City Composite increased 1.7 percent in August compared with the year prior.  Home prices decreased in 15 of the 20 MSAs and both Composites compared with the month prior.
In August, 12 of the 20 MSAs posted negative annual growth rates – two more than the number reported in July.  Although three California cities posted increases in annual growth in August, the annual growth rates slowed down in Los Angeles, +5.4 percent; San Diego, +6.9 percent; and San Francisco, +7.8 percent compared with July’s annual gains of +7.5 percent, +9.3 percent, and +11.2 percent, respectively.
According to the report, average home prices nationwide returned to late 2003 and early 2004 levels in August.


* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

 
RightArrow.gifConsumer confidence increases in October
The Conference Board’s Consumer Confidence Index, which had declined in September, slightly increased in October to 50.2 (1985=100), up from September’s reading of 48.6, the Conference Board recently reported.  The Present Situation Index increased to 23.9 in October from 23.3 in September, and the Expectations Index improved to 67.8 from 65.5 the previous month, according to the report.
“Consumer confidence, while slightly improved from September levels, is still hovering at historically low levels,” said Lynn Franco, director of The Conference Board Consumer Research Center.  “Consumers’ assessment of the current state of the economy is relatively unchanged, primarily because labor market conditions have yet to significantly improve. And, despite the uptick in Expectations, consumers continue to be quite concerned about the short-term outlook. Both present and future indicators point toward more of the same in the coming months.”
Consumers' assessment of current conditions was somewhat mixed in October.  Those claiming business conditions are "bad" decreased to 41.9 percent in October compared with 46 percent in September, while those claiming business conditions are "good" increased to 8.5 percent in October compared with 8.2 percent in September.  Consumers’ appraisal of the labor market was less favorable in October, with those claiming jobs are “hard to get” increasing to 46.1 percent from 45.8 percent and those stating jobs are “plentiful” decreasing to 3.5 percent compared with 3.8 percent in September.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
RightArrow.gifCalifornia housing starts decline in September
Total housing production in California posted its first decrease in five months in September, according to the California Building Industry Association.
According to statistics compiled by the Construction Industry Research Board, homebuilders pulled permits for 2,562 total housing units in September, down 16 percent from the same month a year ago and down 31 percent from August.  Permits for single-family homes totaled 1,604, a decrease of 30 percent compared with September 2009 and 14 percent compared with the previous month.  Multifamily permits totaled 958, up 27 percent from a year ago but down 48 percent from August.
For the first nine months of the year, permits were pulled for 32,025 units, a 17-percent increase compared with the same period in 2009.  Single-family permits rose 1 percent while multifamily permits increased 53 percent.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
RightArrow.gifNew credit score tailored for lenders
FICO has released a new credit-scoring product – FICO® 8 Mortgage Score – that is specifically designed for mortgage lenders and provides a more precise risk assessment for the real estate market.  The company claims that FICO® 8 Mortgage Score can help support market stability and reduce borrower, lender, and investor risk.
FICO® 8 Mortgage Score analyzes the full credit history on file for the borrower and aids servicers in earlier identification of borrowers at risk so they can mitigate the incidence and high cost of foreclosure.
The FICO® 8 Mortgage Score retains the same 300-850 scoring range, minimum scoring criteria, authorized user and inquiry treatment as the general-risk FICO® 8 Score.  To achieve its significant increase in predictive strength, FICO Mortgage Score assesses several additional data variables from consumer credit files to specifically predict mortgage repayment risk.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
RightArrow.gifWeekly Fraud Alert:  Nonprofit alerts homeowners to fraud resources
Information about individual foreclosures is publicly available, with anyone able to access information such as the owner's name and address, and in some states, other sensitive information. This means that homeowners in foreclosure can become the target of mortgage loan scammers who seek to take advantage of their situation. The Homeownership Preservation Foundation, which provides information and financial education to guide consumers toward the path of sustainable homeownership, is alerting homeowners to resources that will help them avoid being victimized by unscrupulous companies conducting mortgage loan modification and foreclosure rescue scams.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
RightArrow.gifC.A.R. Green Tip of the Week: Free app locates local farmer’s markets
Localistas have their very own iPhone app for updated news and blog posts on local-oriented and even city-specific events and products. iLocavore sends notifications of local farmers' market, gardening tips, and community garden volunteer opportunities, and has a guide to vendors that carry local foods.  The app also has a handy new feature that displays the mileage of an item in relation to your location.

 
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
RightArrow.gifFast Facts 
Calif. median home price: September 2010: $309,900 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region September 2010: Santa Barbara So. Coast $879,750 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region September 2010: High Desert $124,960 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Second quarter 2010: 64 percent (Source: C.A.R.)
Mortgage rates: Week ending 10/28/2010 30-yr. fixed: 4.23 Fees/points: 0.8% 15-yr. fixed: 3.66% Fees/points: 0.7% 1-yr. adjustable: 3.30% Fees/points: 0.7% (Source: Freddie Mac)  

 
 



C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. 

Edited by: Mary Burroughs

Executive offices:
525 South Virgil Ave., Los Angeles CA 90020

Legislative offices:
980 Ninth Street #1430, Sacramento CA 95814

 For permission to reprint content from C.A.R. Newsline, please send an e-mail with "reprint" in the subject line to Mary Burroughs
 

Copyright © 2010 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) 
 
 

 

 

 



    
C.A.R. Newsline
 November 17, 2010
 
    
 
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. 

Edited by: Mary Burroughs



Executive offices:
525 South Virgil Ave., Los Angeles CA 90020


Legislative offices:
980 Ninth Street #1430, Sacramento CA 95814

To contact C.A.R., click on this link:
http://www.car.org/?view=ContactUs 

 

Copyright © 2010 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) 
 
 
 

  

 

    
C.A.R. Newsline
 November 10, 2010
  Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® 
Americans worried about making mortgage, rent payments
More than half of Americans are worried about not having enough money to pay their mortgage or rent, according to a survey recently released by the Washington Post.
A third of respondents were "very concerned" about their ability to make housing payments, while a fifth were "somewhat concerned," adding up to 53 percent of respondents. This contrasts with the results of similar surveys the newspaper conducted in February 2009 and December 2008.  In the 2008 survey, 37 percent of respondents said they were at least "somewhat concerned" about making their housing payments -- by February 2009, that figure had risen to 46 percent.
Those with household incomes lower than $30,000 were twice as likely to be worried as those with incomes of $75,000 or more, according to the survey.
Despite concerns about the economy, the majority of respondents, 61 percent, said that now is a good time to buy a home. Nearly 30 percent said it is a bad time to buy, and 10 percent had no opinion.
 
 
HUD, NAR release consumer home-buying videos 
To help consumers navigate the home-buying process, the U.S. Dept. of Housing and Urban Development (HUD) and NAR released three how-to videos.  Each video focuses on a critical part of the home-buying process including Shopping for your Home, Shopping for your Loan, and Closing the Deal. 
HUD’s videos are easily accessible from both HUD and NAR’s Web sites as well as from HUD’s YouTube channel.
 
 
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
Experiencing HAFA Short Sale difficulties?
In response to continuing difficulties our members face in working with short sales, C.A.R. has reached out to several lenders and the U.S. Treasury, which administers the Home Affordable Foreclosure Alternative (HAFA).  C.A.R. members who are having difficulty with HAFA short sales should call (888) 995-HOPE or send an email to ssdil@hmpadmin.com.  C.A.R. will continue to work with the U.S. Treasury, Fannie Mae, Freddie Mac, and lenders to facilitate their implementation of the HAFA program in order to streamline the short sale process.
CalHFA re-starts School Facility Fee Down Payment Assistance Program
The California Housing Finance Agency (CalHFA) recently announced it is reinstating its School Facility Fee Down Payment Assistance Program (SFF) to help low- and moderate-income families purchase newly constructed homes. The program was temporarily suspended in July 2009 due to the disruption in the financial markets.
The newly restored program aids qualified home buyers who are purchasing newly constructed homes in California. The program provides a conditional grant based on the amount of school facility fees paid by the builder. The assistance helps new home buyers fund their down payment, closing costs, or any costs associated with their first mortgage loan. The SFF consists of two programs; one is geared toward assisting first-time homebuyers. The other waives the first-time home buyer requirement and promotes homeownership in specific economically distressed counties.
 
 
 
Home price index declines in August
Home prices nationwide, including distressed sales, declined 1.5 percent in August compared with a year ago, but increased 0.6 percent compared with the prior month, according to CoreLogic’s Home Price Index (HPI).  Excluding distressed sales, year-over-year, the HPI declined 0.4 percent in August.  August marked the first decrease in the HPI this year, according to CoreLogic’s report.
Including distressed transactions, the peak-to-current change in the national HPI (from April 2006 to August 2010) was -28.2 percent.  Excluding distressed properties, the peak-to-current change in the HPI for the same period was -19.6 percent.
 
 
 
DRE issues consumer warning on designations
The DRE recently issued a consumer warning about false and misleading designations, claims of expertise, certifications, and/or credentials, being used in the marketing and advertising of assistance to homeowners in connection with home loans, foreclosure rescue services, and short sales.
The DRE has noticed an uptick in the number of companies offering expensive courses, materials and “leads” that have no meaningful or substantive content and which are designed to allow those who pay for these courses to claim they have “certifications’ – which are, in effect, worthless.  The DRE provides suggestions for consumers who are thinking about retaining the services of specialists or experts, including a list of good questions to ask.  The DRE is also warning licensees to be cautious and only choose reputable courses, with quality content, for certification.
 
 
 
Weekly Fraud Alert: Federal law prohibits charging consumers until help is provided
New federal laws that went into effect Oct. 27, make it more difficult for debt-relief companies to victimize consumers. The new laws prohibit these companies from charging consumers until they've helped them reduce or change the terms of at least one debt.  Since December 2007, the Better Business Bureau has received more than 6,000 complaints from consumers about debt-relief companies. Typical complaints were that the companies charged fees to consumers burdened with debt, but failed to reduce or eliminate debts.
 
 
 
C.A.R. Green Tip of the Week: Thanksgiving grease
Recycling cooking grease, especially if you're a fan of those giant turkey fryers, is a better option than clogging sinks and sewers. One use for the goo is powering biodiesel vehicles. Type in “cooking oils” at www.earth911.com to find recycling centers.
Fast Facts 
Calif. median home price: September 2010: $309,900 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region September 2010: Santa Barbara So. Coast $879,750 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region September 2010: High Desert $124,960 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Second quarter 2010: 64 percent (Source: C.A.R.)
Mortgage rates: Week ending 11/04/2010 30-yr. fixed: 4.24 Fees/points: 0.8% 15-yr. fixed: 3.63% Fees/points: 0.7% 1-yr. adjustable: 3.26% Fees/points: 0.7% (Source: Freddie Mac)  
 

 




C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. 

Edited by: Mary Burroughs

Executive offices:
525 South Virgil Ave., Los Angeles CA 90020


Legislative offices:
980 Ninth Street #1430, Sacramento CA 95814


To contact C.A.R., click on this link:
http://www.car.org/?view=ContactUs 

For permission to reprint content from C.A.R. Newsline, please send an e-mail with "reprint" in the subject line to Mary Burroughs at maryb@car.org.
 




Copyright © 2010 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) 
 
 

 

 




 

 


 

 

    
C.A.R. Newsline
 October 27, 2010
  Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® 
Home sales decrease; median price increases in September
Sales of existing, single-family homes in California declined 12.2 percent in September compared with a year earlier, and the median price of a resale home rose 4.5 percent to $309,000, C.A.R. reported Friday.  On a month-over-month basis, home sales rose 3.8 percent in September and the median price declined 2.7 percent.
“The inventory of homes priced under $500,000 continues to be lean, which is driving moderate or significant price appreciation in this price category,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.  “Conversely, the inventory of homes priced $1 million and higher is more than double the inventory of the under-$500,000 range, which is contributing to weaker prices at the high end,” she said.
Contrary to the national picture, the housing supply in California has been below normal throughout 2010.  C.A.R.’s Unsold Inventory Index for existing, single-family detached homes remained relatively unchanged in September at 6.2 months, but was up from the 4.5 months recorded in September 2009.  The index was 6.1 months in August.  The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate. 

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
Price reductions continue to increase
Trulia.com recently announced that price reductions for homes currently listed for sale have increased for the fourth consecutive month to an all-time high of 27 percent and account for a total reduction of more than $30.7 billion nationwide.
“We would normally expect to see a seasonal uptick in price reductions between June and October, as motivated sellers whose homes are still on the market after the summer selling season aggressively cut prices in an effort to get their homes sold before the holidays,” said Tara-Nicholle Nelson, consumer educator, Trulia.com. "Comparatively speaking, we've found that seasonal considerations combined with a lack of urgency on the part of would-be buyers and continued job market doldrums nationwide have led to more significant reductions during this time period than during the same time frame in 2009."
Five California cities were on the top 10 list of “Highest Percentage Increase in Price Reductions: June to Oct. 2010”:
  • Number 2, San Diego, 64 percent increase
  • Number 3, Sacramento, 61 percent increase
  • Number 4, Fresno, 51 percent increase
  • Number 5, San Jose, 46 percent
  • Number 9, Oakland, 31 percent
Since June 2010, the five largest increases in price reductions have occurred in the Western U.S., with Las Vegas registering the most substantial increase (194 percent). Five major California cities remain beneath the national average in October, but price reduction rates in all seven of California’s largest cities have increased dramatically since June, with San Jose, Fresno, Sacramento and San Diego seeing the largest increases, according to the report.


* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
 
Despite slowing homes sales, buyers bid above asking price 
A new house-hunting report by ZipRealty finds that some homes are selling above asking price, regardless of location or price point.
The report found that in Q3 2010, California was home to five out of the country’s ten “hottest” ZIP codes -- ZIP codes where the average home sale price is most above the average list price by percentage. In Q2, California held seven of the top 10 hottest ZIP codes.
 “While we’ve seen California top the list of the country’s ‘hottest’ home sale markets for some time, we’re now seeing signs that buyers in other markets across the country – including hard-hit regions like Florida and Las Vegas – may be taking advantage of the historically low pricing and interest rates characterizing today’s market,” said John Oldham, director of marketing for ZipRealty. “The gap between homes selling most above and below asking price appears to be decreasing, an encouraging sign that prices may be stabilizing and both buyers and sellers could be adjusting to the new market reality.”
 
More info.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
Foreclosure activity increases 4 percent in Q3
Foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 930,437 properties in the third quarter, a nearly 4-percent increase from the previous quarter, but a 1-percent decrease from the third quarter of 2009, according to RealtyTrac’s latest U.S. Foreclosure Market Report.  The report also showed that one in every 139 U.S. housing units received a foreclosure filing during the quarter.
During the month of September, foreclosure filings were reported on 347,420 U.S. properties, an increase of nearly 3 percent compared with the previous month and an increase of 1 percent compared with a year ago.  A record total of 102,134 bank repossessions were reported in September, the first time bank repossessions have surpassed the 100,000 mark in a single month.
“Lenders foreclosed on a record number of properties in September and in the third quarter, taking a bite out of the backlog of distressed properties where the foreclosure process was delayed by foreclosure prevention efforts over the past 20 months,” said James J. Saccacio, chief executive officer of RealtyTrac. “We expect to see a dip in those bank repossessions — and possibly earlier stages of the foreclosure process — in the fourth quarter as several major lenders have halted foreclosure sales in some states while they review irregularities in foreclosure-processing documentation that has been called into question in recent weeks.”
California accounted for 21 percent of the nation’s total foreclosure activity in the third quarter, with 191,016 properties receiving a foreclosure notice — the nation’s largest foreclosure activity total, according to the report.  California foreclosure activity decreased nearly 1 percent from the previous quarter and was down nearly 24 percent from the third quarter of 2009.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
Weekly Fraud Alert:  Foreclosure rescue scams are going strong
According to the U.S. Government Accountability Office (GAO), the two most common foreclosure scams are advance-fee loan modification schemes and sales-leaseback schemes, with advance-fee schemes. 
In an advance-fee scheme, someone charges the homeowner a fee in advance to negotiate a deal with the mortgage lender.  They may even offer a money-back guarantee, but the usual outcome is that they take the money (the average is about $3,000), provide little or no service, and then refuse to refund the fee. 
In a sales-leaseback scheme, the scammer persuades the homeowner to transfer the deed to them by offering to assume payments and let the homeowner pay rent while the “rescuer” gets the house’s affairs in order.  The scammer generally promises to sell back the property to the homeowner once the homeowner’s financial situation improves, but they don't.  Often they take out another loan on the home or even sell it out from under the homeowner.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
C.A.R. Green Tip of the Week: Green apps
Search more than 56,000 green and sustainable businesses to make everyday choices that will reduce your environmental impact. FindGreen finds everything from yoga centers to bicycle shops to organic restaurants near you.
For more green real-estate-related tips and discussion, visit C.A.R.’s green blog (http://www.car.org/blogs/) and C.A.R.’s Green Web site (http://green.car.org)
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
Fast Facts 
Calif. median home price: September 2010: $309,900 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region September 2010: Santa Barbara So. Coast $879,750 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region September 2010: High Desert $124,960 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Second quarter 2010: 64 percent (Source: C.A.R.)
Mortgage rates: Week ending 10/21/2010 30-yr. fixed: 4.21 Fees/points: 0.8% 15-yr. fixed: 3.64% Fees/points: 0.7% 1-yr. adjustable: 3.30% Fees/points: 0.7% (Source: Freddie Mac)  


 
 




C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. 

Edited by: Mary Burroughs

Executive offices:
525 South Virgil Ave., Los Angeles CA 90020

Legislative offices:
980 Ninth Street #1430, Sacramento CA 95814

To view C.A.R.'s Privacy Policy click on this link:
http://www.car.org/aboutus/privacypolicy

To contact C.A.R., click on this link:
http://www.car.org/?view=ContactUs 

 

 



Copyright © 2010 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) 
 
 

 

    
C.A.R. Newsline
 October 20,2010
  Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® 
Housing starts rise 4.4 percent in September
Single-family housing starts rose 4.4 percent in September to a rate of 452,000 units compared with the August figure of 433,000 units, the U.S. Census Bureau and the Dept. of Housing and Urban Development announced yesterday.  Building permits for single-family homes rose 0.5 percent to 405,000 in September.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
Builder Confidence rises in October
Builder confidence in the market for newly built, single-family homes rose three points to 16 in October, marking the first improvement registered by the HMI in five months, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). 
All three component indexes registered gains in October, with the component gauging home sales expectations for the next six months increasing five points to 23 in October compared with September.  The component gauging traffic of prospective buyers rose two points to 11, and the component gauging current sales conditions increased three points to 16, according to the report. 
 
Builder confidence also improved across every region in October.  The West, which includes California, posted a four-point increase, rising to 12, according to the report.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
 
Combined Hazards booklet updated with HERS information
C.A.R.’s Combined Hazards booklet has been updated to include the new Home Energy Rating Systems (HERS) booklet. The HERS program provides a way to compare the energy efficiency of California homes and identify wise energy saving improvements. Sellers and brokers are strongly encouraged to immediately start providing the HERS booklet to buyers in residential transactions, because doing so provides a valuable shield from liability.  The law deems delivery of the HERS booklet by sellers and brokers to be adequate to inform their buyers about the existence of a statewide home energy rating program (Cal. Civil Code § 2079.10). 
The Combined Hazards booklet is now available for purchase in print.  To purchase, visit store.car.org.
The updated digital booklet also will be available in late November through ePUBS® for zipForm® 6 accounts, a free member benefit for all C.A.R. Members. 

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
Multifamily borrowing declines 40 percent 
In 2009, multifamily lenders provided a total of $52.5 billion in new financing for apartment buildings with five or more units, representing a 40 percent decline from 2008, according to the Mortgage Bankers Association’s Annual Report on Multifamily Lending for 2009.
The 122 most-active lenders represented just four percent of active lenders, but 77 percent of the dollar volume lent.  Three-quarters of the active lenders made five or fewer loans over the course of the year.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
Bank of America to resume foreclosure proceedings in 23 judicial states
Bank of America this week announced it reviewed its process for resubmission of foreclosure affidavits in the 23 judicial states with key stakeholders and has begun the process of preparing foreclosure affidavits for submission in 102,000 foreclosure actions in which judgment is pending.
Bank of America also said it will continue to delay foreclosure sales in the remaining 27 states, including California where the vast majority of foreclosures are non-judicial and conducted without a court order, until its review is complete on a state by state basis.
The bank anticipates that over the course of the temporary moratorium, less than 30,000 foreclosure sales will have been delayed.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
Weekly Fraud Alert: Tips for avoiding foreclosure scams
The Federal Reserve has created a list of five tips for avoiding foreclosure scams.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
C.A.R. Green Tip of the Week: Formaldehyde standards to clear air
President Obama signed into law The Formaldehyde Standards for Composite Wood Products Act, establishing standards for formaldehyde in composite wood products. The law will comply with California’s standards; currently, California stores can sell furniture and cabinetry with formaldehyde limits that surpass the legal limits until Dec. 31, 2011.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
For more green real-estate-related tips and discussion, visit C.A.R.’s green blog (http://www.car.org/blogs/) and C.A.R.’s Green Web site (http://green.car.org)
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
Fast Facts 
Calif. median home price: August 2010: $318,660 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region August 2010: Santa Barbara So. Coast $777,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region August 2010: High Desert $127,860 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Second quarter 2010: 64 percent (Source: C.A.R.)
Mortgage rates: Week ending 10/14/2010 30-yr. fixed: 4.19 Fees/points: 0.8% 15-yr. fixed: 3.62% Fees/points: 0.7% 1-yr. adjustable: 3.43% Fees/points: 0.8% (Source: Freddie Mac)  

 
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. 

Edited by: Mary Burroughs

Executive offices:
525 South Virgil Ave., Los Angeles CA 90020

Legislative offices:
980 Ninth Street #1430, Sacramento CA 95814

To view C.A.R.'s Privacy Policy click on this link:
http://www.car.org/aboutus/privacypolicy

To contact C.A.R., click on this link:
http://www.car.org/?view=ContactUs 






Copyright © 2010 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) 
 
 
 

 

 

 

 
    
C.A.R. Newsline
 
 October 13, 2010
  Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® 

 Major banks suspend foreclosures
 HUD proposes new regulations on lenders for reimbursement
 Percentage of price-reduced homes rose 24 percent in September
 Mortgage applications increase in latest MBA survey
 Weekly Fraud Alert: DRE warning on false and misleading designations
 C.A.R. Green Tip of the Week: Blankets for heaters?
 Fast Facts


Major banks suspend foreclosures
A number of major banks recently have suspended foreclosures in 23 states due to problems with the signing of declarations in connection with judicial foreclosures -- foreclosures that proceed through the court system.  Bank of America has further expanded its suspension of foreclosures to all 50 states.  In California, the vast majority of foreclosures are conducted through non-judicial foreclosure or trustee sales which do not involve a court process. 

While California foreclosures are not conducted through the court system, lenders in California must still comply with other legally required procedures for non-judicial foreclosures.  C.A.R. is supportive of lenders taking action to ensure homeowners are not improperly foreclosed on and are following state law.  We hope they are able to conduct their review expeditiously so as to minimize the impact on California’s housing market.

An update was e-mailed to all C.A.R. members detailing the most recent information available on the foreclosure situation.  The update also is posted online at http://www.car.org/tools/smart/foreclosuremoratorium/

For the latest information on the foreclosure moratorium, register for the free C.A.R. webinar scheduled for Friday, Oct. 15 from 11 a.m. – 11:45 a.m.  During the webinar, C.A.R. attorney Stella Ling and Federal Government Affairs Manager Matt Roberts will discuss the recent halting of foreclosures by lenders nationwide, including Bank of America’s foreclosures in California.  They also will address the legal and legislative underpinnings of this recent development, and provide guidelines for REALTORS® and their clients.  Space is limited and may run out quickly, so please sign up now at http://www.car.org/legal/legal-live-webinars/.

 

 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
 

 

HUD proposes new regulations on lenders for reimbursement
The U.S. Department of Housing and Urban Development (HUD) recently proposed new regulations to strengthen its authority to force certain lenders to indemnify or reimburse the Federal Housing Administration (FHA) for insurance claims paid on mortgages that are found not to meet the agency's guidelines.  Additionally, HUD's proposed rule would require all new and existing lenders with the ability to insure mortgages on HUD's behalf to meet stricter performance standards to gain and maintain their approval status.

For those lenders with special authority to insure mortgage loans on FHA's behalf, HUD seeks to force indemnification for 'serious and material' violations of FHA origination requirements such that the mortgage never should have been endorsed by the mortgagee in the first place just as FHA would not have insured the mortgage on its own.

More info.

 

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

  

Percentage of price-reduced homes rose 24 percent in September
The percentage of homeowners who reduced their listing prices rose 24.2 percent in September compared with a year ago, according to a monthly survey conducted by ZipRealty, which examines home listings in 26 major markets.

ZipRealty’s review found that 47.8 percent of homes listed for sale experienced at least one price reduction in September, up nearly 10 percent compared with a year ago.  On average, homeowners within all markets studied reduced list prices by $19,165.
 
The San Francisco, Orange County,and San Diego markets were among those with the largest median price reduction in absolute dollars.
 
More info.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

Mortgage applications increase in latest MBA survey
The Mortgage Bankers Association’s Market Composite Index, a measure of mortgage loan application volume, increased 14.6 percent on a seasonally adjusted basis last week compared with the week prior.

The Refinance Index increased 21 percent from the previous week, while the seasonally adjusted Purchase Index decreased 8.5 percent from one week earlier. 


“Refinance application volumes are now close to the highest level this year,” said Michael Fratantoni, MBA’s vice president of research and economics.  “Purchase activity remains generally weak, but applications for conventional purchase mortgages are now at their highest level since the beginning of May following the expiration of the tax credit.”

The refinance share of mortgage activity increased to 83.1 percent of total applications from 78.9 percent the previous week and is the highest refinance share since January 2009. The adjustable-rate mortgage (ARM) share of activity decreased to 5.4 percent from 6.1 percent of total applications from the previous week.

More info.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

Weekly Fraud Alert: DRE warning on false and misleading designations
The DRE recently issued another consumer alert in response to an increase in the use of questionable and possibly misleading terms such as "expert", "certified", and "specialist" in the marketing and advertising of assistance to anxious homeowners in connection with their home loans and foreclosure rescue services and short sales.

More info.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

C.A.R. Green Tip of the Week: Blankets for heaters?
Have an old water heater and not ready to upgrade? Put a hot water heater blanket around your water heater and save on heating costs. A hot water heater blanket will set you back $15 to $25, but you could save more in the long run.

For more green real-estate-related tips and discussion, visit C.A.R.’s green blog (http://www.car.org/blogs/) and C.A.R.’s Green Web site (http://green.car.org)

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

Fast Facts 
Calif. median home price: August 2010: $318,660 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region August 2010: Santa Barbara So. Coast $777,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region August 2010: High Desert $127,860 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Second quarter 2010: 64 percent (Source: C.A.R.)
Mortgage rates: Week ending 10/07/2010 30-yr. fixed: 4.27 Fees/points: 0.8% 15-yr. fixed: 3.72% Fees/points: 0.7% 1-yr. adjustable: 3.40% Fees/points: 0.7% (Source: Freddie Mac)   

  C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. 

Edited by: Mary Burroughs


Executive offices:
525 South Virgil Ave., Los Angeles CA 90020
 

 
 

Copyright © 2010 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) 
 
 
 





 

 
    
C.A.R. Newsline
 October 6, 2010  
   
 
  Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® 

 C.A.R. releases 2011 California Housing Market Forecast
 Foreclosures account for 24 percent of sales in Q2
 Governor vetoes consumer-protection bill
 Fannie Mae announces support for military homeowners 
 Home prices remain stable in July
 Conforming loan limits extended through Sept. 30, 2011
 One-third of Americans unlikely to qualify for a mortgage
 Weekly Fraud Alert: Foreclosure counselor impersonators
 C.A.R. Green Tip of the Week: Customizable “Green Living Tips”
 Clarification to Sept. 28 “Your Membership, Your Way”

 Fast Facts


C.A.R. releases 2011 California Housing Market Forecast
A weaker-than-expected economic recovery will result in a projected decline in California home sales for 2010, although home sales are expected to edge up slightly in 2011, according to C.A.R.’s “2011 California Housing Market Forecast” released this week. 

California home sales for 2011 are projected to increase 2 percent to 502,000 units compared with 492,000 units (projected) in 2010.  After two consecutive years of record-setting price declines, the median home price in California will increase 2 percent in 2011 to $312,500, according to the forecast.

“As the U.S. economy continues its tepid recovery, we’ll see some improvement in California’s economy,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.  “We expect a net jobs increase of approximately 1.4 million jobs in California for the year to come and an improvement in unemployment figures.

“A lean supply of available homes for sale will drive prices up at the low end, but larger inventories and limited, less attractive financing will cause continued softness at the high end,” said Appleton-Young.  “There’s some indication that lenders will accelerate the number of foreclosures coming on market, further adding to the housing supply, but we do not anticipate that lenders will flood the market with distressed properties,” she said.

“The wild cards for 2011 include federal housing policies, actions of underwater homeowners, and the strength of the economic recovery,” said Appleton-Young.  “What is certain is that favorable home prices and historically low interest rates will continue to make owning a home in California attractive for those who are in a position to buy,” she said.

More info.

 

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

 

Foreclosures account for 24 percent of sales in Q2
Foreclosed homes accounted for 24 percent of all residential sales in the second quarter of 2010, RealtyTrac recently reported.  The average sales price of properties that sold while in a stage of foreclosure was more than 26 percent less than the average sales price of properties not in the foreclosure process – down slightly from a 27-percent average discount in the first quarter-- according to the report.

U.S. properties in the foreclosure process that were sold to third parties increased nearly 5 percent in the second quarter compared with the first quarter, but were down 20 percent from the second quarter of 2009.

Nevada, Arizona, and California posted the highest percentages of foreclosure sales in Q2.
Foreclosure sales accounted for nearly 43 percent of all sales in California, the third highest percentage among the states. California pre-foreclosure sales increased nearly 8 percent from the previous quarter, but were down 4 percent from the second quarter of 2009. California REO sales increased 1 percent from the previous quarter but were down 45 percent from the second quarter of 2009.

More info
 

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

 

Governor vetoes consumer-protection bill
Governor Schwarzenegger last week vetoed SB 1178 (Corbett), the C.A.R.-sponsored bill that would have expanded anti-deficiency protections to consumers who have refinanced their original mortgage loans and now are facing foreclosure. In his veto message, the Governor made clear his view that the bill interferes with an existing contract. While disappointed in the Governor's misinterpretation of the bill, C.A.R. is grateful to the nearly 13,000 California REALTORS® who responded to the Red Alert and urged the governor to sign this bill.

 


* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

 

Fannie Mae announces support for military homeowners
Fannie Mae and the U.S. Army recently announced new initiatives to help service members who are struggling with their mortgage payments avoid foreclosure. The effort includes a mortgage payment forbearance of up to six months where the death or injury of a service member on active duty causes a hardship for impacted military families with a mortgage obligation.

The company also announced the creation of a special hotline, 877-MIL-4566, available to all service members to receive guidance about their mortgage options and enlist assistance.

Service members or surviving spouses who may be eligible for the special forbearance should contact their mortgage company. The mortgage company may grant forbearance of up to six months under Fannie Mae's "Unique Hardships" guidelines with Fannie Mae's approval. Under forbearance, the mortgage company may reduce or suspend the borrower's monthly payments for the specified period. Credit bureau reporting will be suspended during the forbearance to minimize any derogatory impact.

Service members are encouraged to visit www.KnowYourOptions.com/Military or call the Fannie Mae Military Support Hotline at (877) MIL-4566.

More info.

 


* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

 

Home prices remain stable in July
The annual growth rates in 16 of the 20 MSAs and the 10- and 20-City Composites slowed in July compared with June, according to S&P/Case-Shiller Home Price Indices.
The 10-City Composite increased 4.1 percent and the 20-City Composite rose 3.2 percent compared with a year ago.  Although home prices increased in most market in July, 15 MSAs and both Composites saw the monthly rates moderate. 

More info
 

Conforming loan limits extended through Sept. 30, 2011
President Obama late last week signed a continuing resolution that included a provision extending through fiscal year 2011 the current conforming loan limit of $729,750 for high-cost areas, including many in California. The same limits also will be extended to loans insured by the Federal Housing Administration. 

The conforming loan limit determines the maximum size of a mortgage that government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac can buy or “guarantee.” Non-conforming or “jumbo loans” typically carry higher mortgage interest rates than conforming loans, increasing monthly payments and hampering the ability of families in California to purchase homes by making them less affordable.

More info.

One-third of Americans unlikely to qualify for a mortgage
Nearly one-third of Americans are unlikely to qualify for a mortgage because their credit scores are too low, making homeownership out of reach for many, according to an analysis of more than 25,000 loan quotes and purchase requests on Zillow Mortgage Marketplace during the first half of September.

Borrowers with credit scores under 620 who requested purchase loan quotes for 30-year fixed, conventional loans were unlikely to receive even one loan quote on Zillow Mortgage Marketplace, even if they offered a down payment of 15 to 25 percent. Nearly one-third of Americans, or 29.3 percent, has a credit score this low, according to data provided by myFICO.com. 

Meanwhile, the lowest interest rates went to mortgage borrowers who were among the 47 percent of Americans with excellent credit scores of 720 or above. 

In the first half of September, borrowers with credit scores of 720 or above got an average low annual percentage rate (APR) of 4.3 percent for conventional 30-year fixed mortgages. Borrowers with mid-range credit scores between 620 and 719 received APRs between 4.44 and 4.73 percent, with the APR rising as credit score drops. Those with credit scores below 620 received too few loan quotes to calculate average low APR. 

More info.

Weekly Fraud Alert: Foreclosure counselor impersonators
Phony counseling or foreclosure rescue scams: The scam artist poses as a counselor and tells the homeowner he can negotiate a deal with the lender to save the house from foreclosure, but only if the homeowner pays an upfront fee.  The “counselor” may even tell the homeowner not to contact the lender, a lawyer, or another housing counselor and that he’ll handle all details. He also may insist the homeowner make all mortgage payments directly to him while he negotiates with the lender.

More info.

C.A.R. Green Tip of the Week: Customizable “Green Living Tips” 
“Green Living Tips,” a professionally designed four-page brochure, is chock-full of tips that will save your clients money and improve their home’s energy efficiency. “Green Living Tips” is customizable, allowing you to add your contact information and logo.  Quantities greater than 1,000 are available upon request.

For more green real-estate-related tips and discussion, visit C.A.R.’s green blog (http://blogs.car.org/) and C.A.R.’s Green Web site (http://green.car.org/).

Clarification to Sept. 28 “Your Membership, Your Way”
In the “Saving You Money” section on C.A.R.’s upcoming Legal Webinar “Small Claims Court”: Regardless of the benefits of small claims court for other matters, REALTORS® are obligated to arbitrate their REALTOR® -to-REALTOR® commission disputes at their board.  Also, registration for the upcoming Webinar, which will cover much more than court appearances, will not be available until mid-November.

Fast Facts 
Calif. median home price: August 2010: $318,660 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region August 2010: Santa Barbara So. Coast $777,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region August 2010: High Desert $127,860 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Second quarter 2010: 64 percent (Source: C.A.R.)
Mortgage rates: Week ending 9/30/2010 30-yr. fixed: 4.32 Fees/points: 0.8% 15-yr. fixed: 3.75% Fees/points: 0.7% 1-yr. adjustable: 3.48% Fees/points: 0.7% (Source: Freddie Mac)  

 

C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. 

Edited by: Mary Burroughs


Executive offices:
525 South Virgil Ave., Los Angeles CA 90020


Legislative offices:
980 Ninth Street #1430, Sacramento CA 95814
 
 




Copyright © 2010 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) 
 
 


 


 

 

 
    
C.A.R. Newsline
 September 29, 2010  
   
 
  Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® 


 Consumer Confidence inches down in September
 Housing starts rise for fourth consecutive month in August
 September Housing Scorecard shows improvement
 New home sales unchanged in August
 Existing home sales nationwide rose in August
 Weekly Fraud Alert: Forensic Loan Audits

 C.A.R. Green Tip of the Week: Here, comes the bride’s footprint?

 Fast Facts

 

 

Consumer Confidence inches down in September
The Conference Board’s Consumer Confidence Index, which had improved in August, retreated in September to 48.5 (1985=100), down from August’s reading of 53.2, the Conference Board reported yesterday. The Present Situation Index decreased to 23.1 in September from 24.9 in August, and the Expectations Index declined to 65.4 from 72 last month, according to the report.

“September’s pull-back in confidence was due to less favorable business and labor market conditions, coupled with a more pessimistic short-term outlook,” said Lynn Franco, director of The Conference Board Consumer Research Center.  “Overall, consumers’ confidence in the state of the economy remains quite grim. And, with so few expecting conditions to improve in the near term, the pace of economic growth is not likely to pick up in the coming months.”

Consumers' assessment of current conditions was more pessimistic in September, with those claiming business conditions are "bad" increasing to 46.1 percent in September compared with 42.3 percent in August, and those claiming business conditions are "good" declining to 8.1 percent in September compared with 8.4 percent in August.

More info.
 

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

 

Housing starts rise for fourth consecutive month in August
California homebuilders pulled permits for 3,598 total housing units in August, an 18-percent increase compared with August 2009, but 15 percent lower compared with July, according to the California Building Industry Association.

According to statistics compiled by the Construction Industry Research Board, homebuilders pulled permits for 1,811 single-family homes in August, a decrease of 19 percent compared with August 2009 and 12 percent less than July.  Multifamily permits totaled 1,787, up 117 percent from a year ago, but down 17 percent from the prior month.

For the first eight months of the year, permits were pulled for 29,384 units, an increase of 21 percent compared with the same period in 2009 when 24,236 permits were issued. Single-family permits rose 5 percent while multifamily permits rose 56 percent.

More info.  
 

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

 

September Housing Scorecard shows improvement
The latest housing figures show continued signs of stabilization in home prices, although existing- and new-home sales declined in July, according to the September edition of the Obama Administration’s Housing Scorecard recently released by HUD and the U.S. Dept. of the Treasury.

Highlights of the September Housing Scorecard include:

  • As expected with the expiration of the Homebuyer Tax Credit, new and existing home sales showed a dip in July. At the same time, home prices have leveled off in the past year after 30 straight months of decline and homeowners added $95 billion in home equity in the second quarter. 
  • More than 3.35 million modification arrangements were started between April 2009 and the end of July 2010, including more than 1.3 million trial Home Affordable Modification Program (HAMP) modification starts, more than 510,000 Federal Housing Administration (FHA) loss mitigation and early delinquency interventions, and nearly 1.6 million proprietary modifications under HOPE Now. The number of agreements offered continued to more than double foreclosure completions for the same period (1.24 million). 
  • More than 468,000 permanent modifications granted to homeowners; more than 33,000 homeowners received a HAMP permanent modification in August.

More info.

New home sales unchanged in August
Sales of new homes remained unchanged at a seasonally adjusted annual rate of 288,000 units in August compared with July, the U.S. Census Bureau and U.S. Dept. of Housing and Urban Development (HUD) announced this week.  On a year-over-year basis, new home sales declined 28.9 percent.

The median sales price of new houses sold in August 2010 was $204,700; the average sales price was $248,000. The seasonally adjusted estimate of new houses for sale at the end of August was 206,000 units, representing a supply of 8.6 months at the current sales rate.

More info.

****************************************

Existing home sales nationwide rose in August 
Existing-home sales nationwide rose 7.6 percent in August to a seasonally adjusted annual rate of 4.13 million units compared with 3.84 million units in July, according to NAR’s latest housing report.  Home sales remain 19 percent below the 5.10 million-unit pace recorded in August 2009.

“The housing market is trying to recover on its own power without the home buyer tax credit,” said NAR Chief Economist Lawrence Yun.  “Despite very attractive affordability conditions, a housing market recovery will likely be slow and gradual because of lingering economic uncertainty.”

Yun added, “Home values have shown stabilizing trends over the past year, even as the economy shed millions of jobs, because of the home buyer tax credit stimulus. Now that the economy is adding some jobs, the housing market needs to steadily improve and eventually stand on its own.”

The national median price for existing homes was $178,600 in August, an increase of 0.8 percent from a year ago. Distressed homes rose to 34 percent of sales in August from 32 percent in July and 31 percent in August 2009.

Regionally, existing-home sales in the West increased 13.8 percent to an annual pace of 990,000 units in August but were 16.1 percent lower than August 2009. The median price in the West was $214,700, a 2.5 percent decline from a year ago.

More info.

Weekly Fraud Alert: Forensic Loan Audits
A new type of foreclosure-rescue scam has come to light in recent months – Forensic Loan Audits.  In exchange for an upfront fee of several hundred dollars, so-called forensic loan auditors, mortgage loan auditors, or foreclosure-prevention auditors backed by forensic attorneys offer to review a troubled homeowner’s mortgage loan documents to determine whether their lender complied with state and federal mortgage lending laws. The “auditors” claim the homeowner can use the audit report to avoid foreclosure, accelerate the loan modification process, reduce their loan principal, or even cancel the home loan.

More info.

C.A.R. Green Tip of the Week: Here, comes the bride’s footprint?
As if seating and flower arrangements weren’t enough to worry about, now couples can use the Wedding Carbon Footprint Calculator to determine the ecological toll that their nuptials will leave (http://www.terrapass.com/wedding/).

For more green real-estate-related tips and discussion, visit C.A.R.’s green blog (http://www.car.org/blogs/) and C.A.R.’s Green Web site (http://green.car.org/).

Fast Facts 
Calif. median home price: August 2010: $318,660 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region August 2010: Santa Barbara So. Coast $777,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region August 2010: High Desert $127,860 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Second quarter 2010: 64 percent (Source: C.A.R.)
Mortgage rates: Week ending 9/23/2010 30-yr. fixed: 4.37 Fees/points: 0.7% 15-yr. fixed: 3.82% Fees/points: 0.7% 1-yr. adjustable: 3.46% Fees/points: 0.7% (Source: Freddie Mac)  

 

 

 

 

 

 

 

 

 

 


 
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. 

Edited by: Mary Burroughs

Executive offices:
525 South Virgil Ave., Los Angeles CA 90020

Legislative offices:
980 Ninth Street #1430, Sacramento CA 95814
 
 

Copyright © 2010 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) 
 
 

 

 
    
C.A.R. Newsline
September 22, 2010   
   
 
  Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® 

 California home sales and price edge pp from July
 Consumers see mixed outlook for housing
 Listing price reductions rise to 26 percent in September
 Bankers recommend more resources for FHA
 Foreclosure activity increases 4 percent in August
 Weekly Fraud Alert
 C.A.R. Green Tip of the Week: Rough walks

 Fast Facts

California home sales and price edge up from July
California home sales edged up 1.8 percent in August compared with July, but were down 14.9 percent from August 2009, C.A.R. reported today.  The statewide median home price also increased 1.2 percent from July and was up 8.6 percent from a year ago.

“Buyers who are holding out should consider the opportunities in today’s market,” said C.A.R. President Steve Goddard.  “Favorable home prices and interest rates at or near historic lows make housing affordability the best in recent memory.  Anyone who is in a position to buy a home should do so before either of these key factors rise.”

The statewide median home price posted its 10th consecutive year-over-year gain in August.  The median price of an existing, single-family detached home sold in California during August 2010 was $318,660, an 8.6 percent increase from the revised $293,400 median price recorded in August 2009, C.A.R. reported. The August 2010 median price was up 1.2 percent compared with July’s $314,850 median price.

“The housing market is transitioning from the conclusion of the housing tax credits as is evidenced by stronger home sales in the higher-price range and weaker sales in entry-level homes and condominiums, which are typically favored by first-time home buyers,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.  “As a result of the strength in the upper-end market and inventory levels that are higher but still lean by average, we’re seeing home prices holding steady.”

Visit http://videos.car.org/mediavault.html?menuID=1&flvID=10 to view a video of Appleton-Young discuss additional highlights of C.A.R.’s August sales and price report.

More info.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 

 

Consumers see mixed outlook for housing
A recent survey by Fannie Mae found that 70 percent of Americans think it is a good time to buy a house, with 47 percent of responsdents saying they believe home prices will hold steady over the next year.  However, 33 percent said they would be more likely to rent their next home if they were to move.

A majority of Americans (67 percent) continue to believe that housing is a safe investment; however, that number is down 16 percentage points from a similar survey conducted in 2003, according to Fannie Mae.  Delinquent borrowers and renters are notably more discouraged than mortgage borrowers and underwater borrowers about a home's safety as an investment and the appeal of buying versus renting. More than 70 percent of all respondents believe it will be harder for the next generation to buy a home, an increase of three percentage points compared with the beginning of the year.

Other key findings in the survey include:

  • Seventy percent said it is a good time to buy a house, up six percentage points from January. However, 83 percent believe it is a bad time to sell a house. 
     
  • More than half of respondents think it would be very difficult or somewhat difficult to get a home loan today, down six percentage points since January.
     
  • Nearly one quarter of mortgage borrowers said they have reduced their mortgage debt significantly in the last year, and 27 percent of mortgage borrowers say they have reduced their non-mortgage debt significantly.

More info

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

 

 

Listing price reductions rise to 26 percent in September

 

A recent report found 26 percent of homes listed for sale nationwide experienced at least one price reduction in September, an increase compared with August, according to Trulia.com.  The average discount for price-reduced homes remained unchanged at 10 percent of the listing price.

In California, price reductions have increased steadily since the federal home buyer tax credit expired on April 30.  Despite this, seven of the state’s eight largest cities – Oakland, San Jose, Los Angeles, San Diego, San Francisco, Sacramento, Fresno, and Long Beach – report price reductions figures below or in line with the national average. Furthermore, five California cities –Oakland, San Jose, Los Angeles, San Francisco, and Sacramento – show improvement when compared with data captured one year earlier.

More info.
 

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

 

Bankers recommend more resources for FHA
A new report from the Mortgage Bankers Association (MBA) recommends that the Federal Housing Authority (FHA) commissioner should be granted the resources needed to better manage the agency through the current housing market crisis and to allow it to continue to thrive when the market recovers.

Recommendations provided by the MBA to improve the FHA include:

  • Congress give FHA and Ginnie Mae appropriations to hire and train new staff.
  • Congress provide FHA with appropriations to develop and implement modern information technology systems and processes, including anti-fraud tools.  FHA also should refine the FHA TOTAL Scorecard.
  • FHA’s mission be updated and redefined, including a re-examination of the current FHA loan limits.
  • FHA strengthen its reverse mortgage product (Home Equity Conversion Mortgage (HECM)).
  • Congress provide FHA with the expanded authority to increase premiums.
  • Congress give the FHA Commissioner the authority, with the concurrence of the HUD Secretary, General Counsel and Ginnie Mae president, to temporarily suspend problem lenders.
  • FHA balance its proposed multifamily risk management protocol against the backdrop of rising affordable housing needs, declining incomes and the on-going credit crisis.
  • FHA should examine the existing Homeownership Center and Hub structure.

More info.

Foreclosure activity increases 4 percent in August
Foreclosure filings – notices of default, scheduled auctions, and bank repossessions – increased 4 percent in August compared with July, but decreased 5 percent compared with the same period a year ago, according to RealtyTrac. 

Properties receiving a notice of default decreased 1 percent in August compared with July and 30 percent compared with August 2009 marking the seventh consecutive month of year-over-year decreases.  Foreclosure auctions increased 9 percent in August compared with the prior month, while bank repossessions increased 3 percent during the same period, according to the report.

California accounted for 20 percent of the total number of properties receiving a foreclosure notice in August, an increase of 3 percent from July, but down 25 percent compared with August 2009.

More info.

**********************************************

Weekly Fraud Alert
Fraudulent activities, especially those related to short sales and foreclosures, are on the rise.  To help prevent REALTORS® and their clients from becoming victims of a short-sale, foreclosure, or other type of housing-related scam, C.A.R. has started a new section in C.A.R. Newsline titled “Weekly Fraud Alert.”  For more information about fraudulent activities, please visit “Scam Watch” on C.A.R.’s Legal section at http://www.car.org/legal/scam-watch/.

This week’s Fraud Alert:  NAR has identified five common scams and listed the red flags REALTORS® should look for in a transaction. 

More info.

C.A.R. Green Tip of the Week: Rough walks
Consider wood chips, nutshells, gravel, or other materials for your patios, walkways, and paths. These porous materials allow water to seep back into the earth, preventing runoff, erosion, and water pollution.

For more green real-estate-related tips and discussion, visit C.A.R.’s green blog (http://www.car.org/blogs/) and C.A.R.’s Green Web site (http://green.car.org/).

Fast Facts 
Calif. median home price: August 2010: $318,660 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region August 2010: Santa Barbara So. Coast $777,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region August 2010: High Desert $127,860 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Second quarter 2010: 64 percent (Source: C.A.R.)
Mortgage rates: Week ending 9/16/2010 30-yr. fixed: 4.37 Fees/points: 0.7% 15-yr. fixed: 3.82% Fees/points: 0.6% 1-yr. adjustable: 3.40% Fees/points: 0.7% (Source: Freddie Mac)  

 

 

 

 

 

 

 

 

 

 


 

 


C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. 

Edited by: Mary Burroughs

Executive offices:
525 South Virgil Ave., Los Angeles CA 90020

Legislative offices:
980 Ninth Street #1430, Sacramento CA 95814

To view C.A.R.'s Privacy Policy click on this link:
http://www.car.org/aboutus/privacypolicy

Copyright © 2010 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) 
 
 

 

 

 
    
C.A.R. Newsline
 September 1, 2010  
   
 
  Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® 

 Fannie Mae creates Short Sale Assistance Desk to assist REALTORS®
 Case Shiller Index improves in second quarter
 Delinquencies, foreclosure starts decrease in second quarter 

 Mortgage servicers fail to deliver best practices during loan-mod process
 Negative equity continues to improve in Q2 2010
 California Consumer Confidence rises in August
 CALIFORNIA REALTOR® EXPO 2010 program highlights
 Home Values rise in second quarter

 C.A.R. Green Tip of the Week: Water footprint

 Fast Facts

Fannie Mae creates Short Sale Assistance Desk to assist REALTORS®
Fannie Mae, in cooperation with participating MLSs across the nation, recently developed the Short Sale Assistance Desk to assist real estate professionals with handling issues that may arise following a short-sale offer.  Post-offer short sale issues may relate to servicer responsiveness, the existence of a second lien, or those involving mortgage insurance.

The Assistance Desk will collect and submit information to Fannie Mae using a dedicated submission form on the member’s MLS Web site.  The form then is submitted to Fannie Mae with data to help improve valuations and make quicker decisions regarding short-sale requests. 

The Assistance Desk is designed to assist real estate professionals in cases where the standard approval channel has slowed down, and where Fannie Mae’s intervention may serve as a means for progress towards a resolution.  The Assistance Desk is not intended to replace the standard approval channels, nor is it intended to serve as a compliance or enforcement function, or as a potential appeal for decisions the real estate professional believes to be unfavorable.  
REALTORS® who would like their MLS to take advantage of the Short Sale Assistance Desk, should contact their MLS directly.


* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 

 

Case Shiller Index improves in second quarter
Home prices increased 4.4 percent in the second quarter of 2010 and now are 3.6 percent above their year-earlier levels, according to the S&P/Case-Shiller U.S. National Home Price Index, released yesterday.

The index, which covers all nine U.S. census divisions, recorded a 3.6 percent improvement in the second quarter of 2010 compared with the second quarter of 2009. 

The 10-City and 20-City Composites recorded annual returns of 5 percent and 4.2 percent, respectively, in June.  Following 16 consecutive months of improvement in their annual rates of return, June’s figures were the first to moderate from their prior month’s pace, indicating a possible deceleration in home price returns.

More info.  

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

 

Delinquencies, foreclosure starts decrease in second quarter
The delinquency rate for mortgage loans on one-to-four-unit residential properties decreased to a seasonally adjusted rate of 9.85 percent of all loans outstanding in the second quarter, down 21 basis points from the first quarter, but up 61 basis points from one year ago, according to the recently released Mortgage Bankers Association’s (MBA) National Delinquency Survey. 

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 second quarter was 4.57 percent, a decrease of six basis points compared with the first quarter of 2010 but an increase of 27 basis points from one year ago.

“Ultimately the housing story, whether it is delinquencies, homes sales, or housing starts, is an employment story,” said MBA Chief Economist Jay Brinkmann.  “Only when we see a consistent increase in employment will we see an increase in sales and starts, and a sustained improvement in the delinquency numbers.  Until we see the increase in the number of households that comes with an increase in the number of paychecks, all measures of the health of the housing industry will continue to be weak.”

More info.

 


* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

 

Mortgage servicers fail to deliver best practices during loan-mod process
A new study finds that mortgage services fail to deliver key service practices more often during the loan modification process than during the loan origination process, according to J.D. Power and Associates.

Among the best practices that mortgage services often fail to deliver include: Providing and meeting a time frame for approval; not requesting information more than once; explaining the entire process during application; and providing proactive status updates during the process.

The study measures customer satisfaction with five areas of the mortgage-servicing experience: fees; billing and payment process; escrow account administration; Web site; and phone contact.  The study also finds that customers with higher levels of satisfaction may lead to higher levels of loyalty and retention.  Among customers in the prime credit segment, 34 percent of those who are highly satisfied (credit scores of 800 or higher) say they “definitely will” recommend their servicer—compared with 6 percent of customers with lower satisfaction scores.  Similarly, 27 percent of highly satisfied prime credit customers say they “definitely will” select their servicer for a new home mortgage, while 6 percent of less-satisfied customers say the same.

More info.

Negative equity continues to improve in Q2 2010
Nearly one quarter (23 percent) of all residential properties with mortgages had negative equity at the end of the second quarter of 2010, down from 24 percent in the first quarter, according to CoreLogic.

Foreclosures, rather than price appreciation, were the primary factor in the change, according to the report.  An additional 2.4 million borrowers had less than 5-percent equity. Together, negative equity and near-negative equity mortgages accounted for nearly 28 percent of all residential properties with a mortgage nationwide.

Negative equity remains concentrated in five states: Nevada, 68 percent; Arizona, 50 percent; Florida, 46 percent; Michigan, 38 percent; and California, 33 percent.

Homes with more equity are appreciating faster than underwater homes, the report found.  The average values of properties with 50 percent or more equity increased more than 1 percent between Q4 2009 and Q2 2010. Properties with 25 to 50 percent in equity increased an average of 0.2 percent in that period.

More info.

California Consumer Confidence rises in August
The California Composite Index of Consumer Confidence increased to 84.2 in August, slightly higher than the May reading of 82.7, according to a survey conducted by the Anderson Center for Economic Research at Chapman University.  An index level lower than 100 reflects a higher percentage of pessimistic consumers compared with those who are optimistic. The Chapman Survey contrasted with a similar survey conducted by the University of Michigan, which showed that consumer confidence at the national level had a lower reading in August than May.

The index measuring consumers’ spending plans on big-ticket items improved to 77 in August, while the index measuring current economic conditions increased to 71.9.  The index measuring future economic conditions showed a decline to 100.1 in August from a reading of 105.1 in May.

More info.

CALIFORNIA REALTOR® EXPO 2010 program highlights     
The primary reason to attend CALIFORNIA REALTOR® EXPO 2010 is all the free professional development for C.A.R. members.  Once a year, C.A.R. gathers the industry’s heavy hitters and cutting-edge practitioners to provide members with a concentrated informational and educational experience.

Mark your calendars now for Tech Tuesday and CALIFORNIA REALTOR® EXPO 2010, running Oct. 5-7 in Anaheim.  Learn how to take your existing leads to the next level, maneuver through the auction process, and employ realistic marketing strategies for your business in the Sales track.  The REOs, Short Sales, and Foreclosures track will teach you how to close a short sale; how to understand HAFA, including details on the HAFA process, timelines, and documents; and how to work with asset managers to find REO listings.  The Risk Management track will show you where to look for finance options for your buyers, how to handle multiple offers while alleviating your risk, and how to deal with walk-aways the right way. Finally, the Innovation & Trends track will help you identify the best social media tools to use in promoting your business, get started with a social media business plan, and organize and showcase data to create listing presentations with a wow-factor.

Entrance to the exhibit hall is FREE for all C.A.R. members, but you must register to receive an entrance badge.  Fees apply to ticketed events, including Tech Tuesday and special luncheon events.

More info.

Home Values rise in second quarter
Home values rose 3.1 percent in the second quarter of 2010 compared with the first quarter, but declined 0.2 percent compared with a year earlier, according to Freddie Mac’s Conventional Mortgage Home Price Index (CMHPI). 

Home values rose in all nine Census Divisions, marking the first time since the second quarter of 2009 that all Census Divisions experienced positive changes in home values.  In the Pacific Division, which includes California, home values rose 3.1 percent in the second quarter of 2010.  Over the last 12 months, home values increased 4.2 percent, and during the last five years, home values have decreased 14.7 percent, according to Freddie Mac.

More info.

C.A.R. Green Tip of the Week: Water footprint
You can learn your home’s water footprint at the H2O Conserve Web site (www.h2oconserve.org).

For more green real-estate-related tips and discussion, visit C.A.R.’s green blog (http://www.car.org/blogs/) and C.A.R.’s Green Web site (http://green.car.org/).

Fast Facts 
Calif. median home price: July 2010: $314,850 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region July 2010: Santa Barbara So. Coast $871,250 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region July 2010: High Desert $128,950 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Second quarter 2010: 64 percent (Source: C.A.R.)
Mortgage rates: Week ending 8/26/2010 30-yr. fixed: 4.36 Fees/points: 0.7% 15-yr. fixed: 3.86% Fees/points: 0.6% 1-yr. adjustable: 3.52% Fees/points: 0.7% (Source: Freddie Mac)  

 



C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. 

Edited by: Mark Giberson


Executive offices:
525 South Virgil Ave., Los Angeles CA 90020

Legislative offices:
980 Ninth Street #1430, Sacramento CA 95814

Copyright © 2010 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) 
 
 


 

 

C.A.R. Newsline
 August 18, 2010  
   
 
  Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® 

 FHA premium increases postponed to Oct. 4
 Builder Confidence declines in August
 Federal Reserve announces final rules to protect mortgage borrowers
 Foreclosure activity increases 4 percent in July
 Enhanced consumer protections proposed for mortgages
 Housing starts rise 1.7 percent in July
 C.A.R. Green Tip of the Week: Windows 'R' U.S.

 Fast Facts

FHA premium increases postponed to Oct. 4
The Federal Housing Administration (FHA) announced last week it is pushing back the implementation date for new premium structures on FHA-insured mortgages to Oct. 4 from the original date of Sept. 7. 

Following FHA Commissioner David Stevens’ recent announcement that up-front premiums for FHA-insured mortgages would be reduced beginning Sept. 7 from 2.25 percent to 1 percent, lenders expressed concerns that they would need more than five weeks to update loan disclosures and computer systems.

FHA previously raised up-front premiums from 1.75 percent to 2.25 percent in April to cope with rising losses on FHA-guaranteed loans. The Obama administration promised to reduce up-front premiums if Congress gave it the authority to raise annual premiums beyond their statutory limit of 0.55 percent.  HR 5981, legislation raising the statutory limit on annual premiums to 1.55 percent, was approved by lawmakers on Aug. 4 and has been signed by President Obama.

More info.

 

 

Builder Confidence declines in August 
Builder confidence in the market for newly built, single-family homes declined from 14 points in July to 13 in August, its lowest level since March 2009, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI).  The component gauging home sales expectations for the next six months decreased three points to 18 in August compared with July.  The component gauging traffic of prospective buyers was unchanged and held steady at 10, while the component gauging current sales conditions declined one point to 14, according to the report.  Regionally, the HMI results were mixed in August. The West, which includes California, posted a one-point decline, falling to 8, according to the report.

More info.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 

 

Federal Reserve announces final rules to protect mortgage borrowers
The Federal Reserve Board on Monday issued final rules for mortgage brokers and the companies that employ them, and mortgage loan officers employed by depository institutions and other lenders.  The rules, which go into effect April 1, 2011, are designed to protect mortgage borrowers from unfair, abusive, or deceptive lending practices. 

Currently, lenders commonly pay loan originators more compensation if the borrower accepts an interest rate higher than the rate required by the lender (referred to as a "yield spread premium").  The new rule reverses that practice.  Loan originators can continue to receive compensation based on a percentage of the loan amount.

The final rule also prohibits a loan originator who receives compensation directly from the consumer from also receiving compensation from the lender or another party.  The new rule seeks to ensure that consumers who agree to pay the originator directly do not also pay the originator indirectly through a higher interest rate.

Additionally, the new rule prohibits loan originators from directing or "steering" a consumer to accept a mortgage loan that is not in the consumer's interest in order to increase the originator's compensation. The rule will preserve consumer choice by ensuring that consumers can choose from loan options that include loans with the lowest rate and loans with the least amount of points and origination fees, rather than loans that maximize the originator's compensation.

More info.

 


* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

Foreclosure activity increases 4 percent in July
Foreclosure filings – notices of default, scheduled auctions, and bank repossessions – increased nearly 4 percent in July compared with June, but decreased approximately 10 percent compared with the same period a year ago, according to RealtyTrac.  Properties receiving a notice of default increased 1 percent in July compared with June, but decreased 28 percent compared with July 2009.  Foreclosure auctions increased 2 percent in July compared with the prior month, while bank repossessions increased 9 percent during the same period, according to the report.

California accounted for 21 percent of the total number of properties receiving a foreclosure notice in July, a decrease of 3 percent from June and down 38 percent compared with July 2009.

More info.

Enhanced consumer protections proposed for mortgages
The Federal Reserve Board is proposing enhanced consumer protections and disclosures for home mortgage transactions.  Changes proposed include significant changes to Regulation Z (Truth in Lending).  The latest proposal would:

  • Improve the disclosures consumers receive for reverse mortgages and impose rules for reverse-mortgage advertising to ensure advertisements contain accurate and balanced information;
  • Prohibit certain unfair practices in the sale of financial products with reverse mortgages; 
  • Improve the disclosures that explain a consumer's right to rescind certain mortgage transactions and clarify the responsibilities of the creditor if a consumer exercises the right; and
  • Ensure that consumers receive new disclosures when the parties agree to modify the key terms of an existing closed-end mortgage loan.  

The comment period ends 90 days after publication of the proposal in the Federal Register, which is expected shortly.

More info.

Planning your visit to CALIFORNIA REALTOR® EXPO 2010
With a little more than seven weeks before the real estate industry event of the year, now is the time to start planning your visit to CALIFORNIA REALTOR® EXPO 2010.  CALIFORNIA REALTOR® EXPO 2010 will be marked by many educational and entertaining sessions to help you succeed in the marketplace.  This year’s EXPO also has been simplified by providing four session tracks for you to follow if you choose.  You still have the option of selecting individual sessions to attend, regardless of track.

The “Sales” track will offer sessions impacting your day-to-day business, including:  “Auctions and Real Estate: What’s in it for You?” and “How to Turn Leads Into Sales.”

The “REOs, Short Sales, and Foreclosures” track offers tactics to help you tackle the distressed property market with confidence. Hear from an industry pro who’s been in the trenches for years in “Short Sales, REOs, and Foreclosures: Still Hot,” or sink your teeth into “REOs and You: How to Find ‘Em and How to Work ‘Em,” where you’ll learn how to work with asset managers and where to find listings.

The third track, “Risk Management,” will offer sessions to help you brush up on your legal and financial facts. Do you know how to handle multiple offers? Learn how to alleviate your risk while providing your clients with the best counsel in Wednesday’s “Multiple Offers: Negotiating Secrets from the Pros.”  In Thursday’s “Financing Options for Your Buyers,” you’ll hear from a HUD pro and a CalHFA expert who will offer tips and advice on how to find financing opportunities for your clients.

The final track, “Innovations and Trends,” will help you to breathe some innovation and technology into your outreach efforts. “Beyond Charts and Graphs: How to Use Data to Amp-up Your Business” will teach you how to localize, organize, and showcase your presentation data. Hear new and exciting ways you can use your Smartphone to connect with buyers, sellers, and renters in Wednesday’s “Mobile Marketing Trends.”

For a complete list of CALIFORNIA REALTOR® EXPO 2010 sessions and for more information on special ticketed events like Tech Tuesday (Oct. 5) and REALTOR® Night Out (Oct. 6 at Disneyland®), visit http://expo.car.org/index.html.  

Housing starts rise 1.7 percent in July
Housing starts increased 1.7 percent nationwide in July and permits for new housing units declined 3.1 percent, the Commerce Dept. reported yesterday.  Housing permits and housing starts have decreased 3.7 percent and 7 percent, respectively, compared with the year prior.

More info.

C.A.R. Green Tip of the Week: Windows 'R' U.S.
The U.S. Department of Energy (DOE) has created a bulk-purchasing program for homeowners and builders in order to make high-efficiency windows more affordable. More than 30 manufacturers list their windows with insulation values of R-5 or better at www.WindowsVolumePurchase.org.

For more green real-estate-related tips and discussion, visit C.A.R.’s green blog (http://www.car.org/blogs/) and C.A.R.’s Green Web site (http://green.car.org/)

Fast Facts 
Calif. median home price: June 2010: $311,950 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region June 2010: Santa Barbara So. Coast $914,760 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region June 2010: High Desert $125,620 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - First quarter 2010: 66 percent (Source: C.A.R.)
Mortgage rates: Week ending 8/12/2010 30-yr. fixed: 4.44 Fees/points: 0.7% 15-yr. fixed: 3.93% Fees/points: 0.6% 1-yr. adjustable: 3.53% Fees/points: 0.7% (Source: Freddie Mac)  

 

 
C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. 

Edited by: Mark Giberson

Executive offices:
525 South Virgil Ave., Los Angeles CA 90020


Legislative offices:
980 Ninth Street #1430, Sacramento CA 95814

Copyright © 2010 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) 
 
 

 

 



C.A.R. Newsline
 
August 4, 2010
  Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® 
Construction spending rises in June
Construction spending rose 0.1 percent in June compared with May to a seasonally adjusted annual rate of $836 billion, according to a report released Monday by the U.S. Census Bureau and the Dept. of Commerce. The June figure is 7.9 percent below the June 2009 estimate of $907.7 billion.
Residential construction spending declined 0.8 percent to a seasonally adjusted annual rate of $258.3 billion in June compared with May; spending on private construction decreased 0.6 percent to a seasonally adjusted annual rate of $527.6 billion; and nonresidential construction declined 0.5 percent to a seasonally adjusted annual rate of $269.3 billion.
 
                           * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

 
Home buyer satisfaction rises, seller satisfaction decreases
Satisfaction with real estate companies among home buyers improved in 2010 compared with 2009, while satisfaction among home sellers declined, according to the recently released J.D. Power and Associates 2010 Home Buyer/Seller Study.
Overall satisfaction with real estate companies among home buyers rose 12 points to 803 on a 1,000-point scale, primarily driven by increased satisfaction with agents and salespersons, according to the study.  By contrast, overall satisfaction among home sellers with real estate companies declined by 40 points to 742 in 2010.
The study examined three factors to determine the overall satisfaction for the home-buying experience: agent/salesperson; office; and variety of additional services.  Four factors were examined for the home-selling experience: agent/salesperson; marketing; office; and variety of additional services.
 
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

C.A.R. adds “Scam Watch” section to Web site
C.A.R.’s Legal Dept. has added a new online feature, Scam Watch, to the Legal Section of car.org.  Scam Watch includes the latest news on short sale, foreclosure, and mortgage-related scams, a well as a resource section to assist members and their clients with avoiding scams.
 

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
Commercial/multifamily mortgage originations increase in Q2
Commercial and multifamily mortgage loan originations rose 1 percent in the second quarter of 2010 compared with the second quarter of 2009 and 35 percent on a quarter-to-quarter basis, according to a survey by the Mortgage Bankers Association (MBA).
The one percent overall increase in commercial/multifamily lending activity during the second quarter was driven by increases in originations for office and industrial properties, according to the MBA survey.  When compared with the second quarter of 2009, the increase included a 183-percent increase in loans for industrial properties; 180-percent increase in loans for office properties; 18-percent increase in loans for hotel properties; 76-percent decrease in loans for health-care properties; 25-percent decrease in multifamily property loans; and a 9-percent decrease in retail property loans.
 
Coalition launches Making Home Affordable Program awareness campaign
A coalition of the U.S. Dept. of the Treasury, the U.S. Dept. of Housing and Urban Development (HUD), and the Advertising Council recently launched a national public service advertising (PSA) campaign to raise awareness among struggling homeowners of the Making Home Affordable Program.
The campaign encourages qualified homeowners struggling to make mortgage payments to seek assistance through free resources made available by the Federal Government. The PSAs direct homeowners to visit www.MakingHomeAffordable.gov or call (888)-995-HOPE (4673).
The campaign is available in English and Spanish and features real homeowners from across the country who have benefited from the program.  The Ad Council will distribute the PSAs to more than 33,000 media outlets nationwide. The campaign includes television, radio, print, and web advertising, and will air in advertising space donated by the media.
 
Foreclosure activity increases nationwide
A new report shows 154 of the 206 U.S. metropolitan areas with a population of 200,000 or more posted year-over-year increases in foreclosure activity.  The report by RealtyTrac® also showed nine of the 10 metro areas with the highest foreclosure rates experienced declines.  Four states—Florida, California, Nevada, and Arizona—accounted for the top 20 metro foreclosure rates. Florida led the way, with nine of the top 20 metro foreclosure rates, followed by California with eight, Nevada with two, and Arizona with one.   
With 4.59 percent of its housing units (one in 22) receiving a foreclosure filing, Modesto, Calif., posted the nation’s third highest metro foreclosure rate. Other California cities in the top 10 were Merced at No. 4 (4.47 percent of housing units); Riverside-San Bernardino-Ontario at No. 5 (4.37 percent); Stockton at No. 6 (4.37 percent); and Vallejo-Fairfield at No. 9 (3.91 percent).
 
                          * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
.
C.A.R. Green Tip of the Week: iPhone reads meters
MeterRead (http://zerogate.com/) is a money-saving, eco-friendly iPhone app that makes it easy to read a home’s electric meter and provides feedback on energy use with each reading. Monitoring the kilowatt-hours of power that have been used since the last reading will encourage homeowners to save power and money. It’s $2.99 well spent.
For more green real-estate-related tips and content, visit C.A.R.’s Green Web site (http://green.car.org/).
Fast Facts 
Calif. median home price: June 2010: $311,950 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region June 2010: Santa Barbara So. Coast $914,760 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region June 2010: High Desert $125,620 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - First quarter 2010: 66 percent (Source: C.A.R.)
Mortgage rates: Week ending 7/29/2010 30-yr. fixed: 4.54 Fees/points: 0.7% 15-yr. fixed: 4% Fees/points: 0.7% 1-yr. adjustable: 3.64% Fees/points: 0.7% (Source: Freddie Mac)  

 

 




C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. 

Edited by: Mark Giberson
 
 
 

Copyright © 2010 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) 
 

 

 


CALIFORNIA ASSOCIATION OF REALTORS CALIFORNIA ASSOCIATION OF REALTORS
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
 
-----------------
 

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 

- - - - - - -

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

- - - - - - -
 

 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. 

 


- - - - - - -
 

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%

 

- - - - - - -
 
 

 

 

 

 

 

 

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.)

CENTURY 21 Affiliated

9888 Carmel Mountain Road, Suite A, San Diego, CA 92129

David Breidenbach
CENTURY 21 Affiliated

Realtor®

DRE#: 01297253