Home prices and mortgage rates have fallen so far that the monthly cost of owning a home is more affordable than at any point in the past 15 years and is less expensive than renting in a growing number of cities.
Where Housing Is Headed
The Wall Street Journal's third-quarter survey of housing-market conditions in 28 of the nation's largest metropolitan areas found that home values declined in all but five markets compared with the second quarter, according to data from Zillow Inc. Meanwhile, rent levels have risen briskly across the country and mortgage rates, hovering around 4%, are the lowest in six decades.
As a result, monthly mortgage payments on the median priced home—including taxes
The number of house deals signed by homebuyers in California increased for a sixth consecutive month in October, although last year’s figures were low to begin with, California Association of Realtors figures show.
Nonetheless, the winning streak follows 17 consecutive months of year-over-year declines of housing contracts going into escrow.
CAR tracks the number of homes going into escrow as an indicator of future closed sales trends.
The latest numbers from California “pending” home sale index shows:
The index value in October was 122, up 10.7% from October 2010. The baseline value of 100 is equal to the 2008 monthly average number of pending deals.
The total number of homes sold for September, single-family and condos, was
Of those 1,737 were single-family homes. Believe it or not, of
those, 1,173 were standard, equity, sales. Short sales numbered 307 and bank owned listings came in at
Condos in the same order were, 334 standard, 149 short, and bank
There were 1,704 Notices of Default, a number heightened by
the banks beginning to finally clear out properties that have been delinquent in
payments for months and sometimes years.
There were 1,113 Notice of
Trustee Sale, one of the final steps to foreclosure. (There is much speculation
that the banks would prefer to do “short sales” as opposed to foreclosing, as it
saves much time and
Local associations of Realtors and Multiple Listing Data indicate that inventory is quite low. Part of the reason sales have slowed is there simply isn’t enough saleable product out there. In this type of market, there will always be properties on the market that are technically available inventory, but simply have too many problems to overcome. They need a particular type of buyer. These properties can make it appear there is more inventory than is actually “saleable.”
Frankly, it is surprising that people who can buy, have chosen to back away from the market because of predictions of a triple dip. It’s a “cost vs. buy” analysis. If you believe in home ownership, its tax deductions, its features of durability and
HOMEOWNERSHIP: REPORTS OF ITS DEATH ARE EXAGGERATED
This headline was posted by the KCM Crew, authors of a blog for a real estate website called, “Keeping Current Matters.” It’s a great name for a blog, because in real estate, keeping current does indeed... matter.
The above mentioned article randomly addresses the many negative articles regarding real estate, many of which have been published in local southern California papers. This newsletter, although not political, strongly disagrees with scare tactics and negative ploys designed solely to sell papers.
Local papers would have you believe that the sky is, in fact, falling; real estate will never recover and will never be the same. Hardly. In fact, pick up a copy of the recently released Fannie
Last year the economic forecasting firm Fiserv
predicted that home values would sink around 5% in 2011, and that prices
in three-quarters of the nation's major metro areas would fall. The bad
news is, the firm wasn't that far off the mark. The good news: In the
coming year, Fiserv thinks 95% of the 384 metro areas it tracks will see
Don't expect the market to move much beyond first
gear, though. The median expectation among more than 100 economists and
real estate pros surveyed by MacroMarkets is that home values will inch
ahead by a mere 0.25%, compared to their 2011 median forecast decline of
2.8%. They also foresee annualized gains through 2015 of just 1.1%, as
the real estate market slowly works its way through a mountain of
If you've been on the fence about homeownership, now is the time to
take a leap! Don't let the negative press deter you from one of life's
Take a look at five short and sweet reasons that homeownership is great!
1. Equity. When you pay rent, you never see that money again. It
is lining the landlord's pocket. Yes, buying a home may come with some
hefty initial costs (downpayment, closing costs, inspections), but you
will make that money back over time in equity built in the home.
Historically, homes appreciate by about 4 to 6 percent a year. Some
areas are still experiencing normal appreciation rates. For the areas
that have seen harder times since the recession, experts feel that the
housing market will recover. Homeownership is
Orange County will have a half-million-dollar housing market again by 2012, and home sales volume will rebound by a whopping 43% over the next two years, according to the latest UCLA Anderson Forecast for the O.C. housing market.
Orange County Forecast
Economists with UCLA’s Anderson Forecast foresee O.C. home prices climbing above $500,000 in 2012 for the first time since April 2008. Prices are expected to
2 bedroom 2.5 bathroom home in Soco Walk, Fullerton. Main street entry opens to a spacious room perfect for a professional business or office (or third bedroom) complete with large commercial half bath.
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On Monday, we gave you the
links to four different articles that came to the same conclusion: it’s time to
buy a home. Today, we want to take a closer look at one of the sources, the
JP Morgan’s Market
Insights report. Right from the beginning, the paper identifies the
greatest challenge in today’s housing market: consumer emotion. They attempt to
overcome that emotion with logical reasons why now is the time to buy a home.
They break it down to the following.
One measure of housing values is the ratio of personal income to home prices.
The report explains where we are today:
“Since 1966, the median price of an existing single family home in the
U.S. has varied between 150% and 251% of personal income per