California pending home sales reversed a two-month decline to post higher in October, but were down from a year earlier, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.
Pending home sales data:
• California pending home sales rose in October, with the Pending Home Sales Index (PHSI)* climbing 2.5 percent in October to 109.3, up from 106.7 in September, based on signed contracts. The monthly increase was considerably greater than the average September-to-October change of 0.7 percent over the past five years. Pending sales were down 9.9 percent from the 121.2 index recorded in October 2012. Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the
National home prices rose 0.2 percent over the month in September, reaching $232,000 for the month, according to Lender Processing Services’ Home Price Index, which was released Monday. Year-over-year prices rose 9 percent in September, according to LPS.
At their current level, prices are about 14 percent below their peak reached in June 2006. Nevada and Connecticut posted the greatest price changes over the month—though in opposite directions. Home prices in Nevada jumped 0.8 percent over the month, while prices in Connecticut fell 0.9 percent. Two Southern states followed Nevada, tying for the second-greatest price increases over the month according to LPS—Georgia and South Carolina. Both states posted price gains of 0.7
One of the first stages during the hunt for a new home is crunching the numbers to figure out your budget. And no matter how high or low that budget may be, prospective homebuyers should take into consideration the cost of insuring the home.
It's easy to overlook insurance, especially since you may be more worried about the number of bedrooms, the school district, or the size of the backyard. But before you can close on the purchase, your lender will require you to line up homeowners insurance. You may be hit with some sticker shock if the home you are about to buy ends up being a high risk- and therefore high cost- home to insure.
Once you’ve got a few homes in your sight, you should get some preliminary home insurance quotes on…
I grew up just a couple of hours from Disneyland. So as a kid, one of my greatest joys (and greatest anxieties) revolved around the Pirates of the Caribbean ride (this was pre-Johnny Depp, folks). I loved that ride - especially the big drop at the end - but I also feared that ride, especially the big drop at the end. Fast forward a couple of decades and I found myself standing in line for the ride with my own kids, with bated breath and anxious fear/anticipation. We got on and I continued to hold my breath. Just a few minutes later, we sailed gently back to the starting point.
I walked up to an attendant and asked: “When did they take the dip out?” The guy looked at me quizzically and said that the ride’s course had never been
Rates continue to creep down and are at the best levels we’ve seen since June. The big news of the week was the much anticipated and delayed Jobs Report. Employers added 148k jobs in September which was below expectations of 183k. Also in the report was the news that Unemployment Rate went down to 7.2% which is the lowest it’s been since November 2008. The media jumped all over this news and spun it as a positive. However, this is not something to be praising as a benefit to the Labor Market because the Labor Force Participation Rate is only 63.2%! August was the lowest LFPR we’ve had in 35 years and out of work people have given up looking for jobs. The Fed’s realize this and the Stock and Bond Markets both rallied
Based on prices, mortgage rates and soaring rents, there may have never been a better time in real estate history to purchase a home than right now. Here are five major reasons purchasers should consider buying:
Supply Is Shrinking
With inventory declining in many regions, finding a home of your dreams may become more difficult going forward. There are buyers in more and more markets surprised that there is no longer a large assortment of houses to choose from. The best homes in the best locations sell first. Don’t miss the opportunity to get that ‘once-in-a-lifetime’ buy.
Price Increases Are on the Horizon
Prices are projected to appreciate by over 25% from now to 2018. First home buyers will probably pay more both in price and
Imagine paying over 18% interest on a 30-year fixed mortgage. It’s almost unthinkable. But that was the reality for home buyers in October 1981 – a year when the average rate was almost 17%.
Unlike today, in the early 1980s, the Federal Reserve was waging a war with inflation. In an effort to tame double-digit inflation, the central bank drove interest rates higher. As a result, mortgage rates topped out at 18.45%.
In this Just Explain It, we’ll take a look at how mortgage rates affect home loan payments, and show you what you can do to save money.
Back in the early 1980s, high interest rates had a negative effect on the housing market. Affordability dropped to an all-time low as rates climbed to record levels. Simply put, mortgage rates priced
Next year will likely be the first year since 2000 that home purchases outpace refinances, according to Freddie Mac’s expectations. Furthermore, the rallying housing market should set the broader economy on a brighter path, according to Freddie Mac’s U.S. Economic and Housing Market Outlook for November.
“Led by a resurgent housing sector, 2014 should shape up to be better than 2013,” Freddie Mac stated in its outlook.
Housing starts, which have been slow, should rise to a pace of about 1.15 million in 2014, according to Freddie Mac.
This is more in line with the historical average of 1.1 million per year reported by the Census Bureau. In comparison, the Census Bureau recently reported household formation over the first three quarters of this
It’s no secret underwriting standards have tightened in recent years, and while many decry the heightened standards for making homeownership less accessible to some Americans, CoreLogic economist Sam Khater pointed out in a report released Wednesday that heightened standards are undoubtedly impacting delinquency rates for the better.
“While there has been much consternation about underwriting being too tight in the context of forthcoming mortgage regulations, one underappreciated outcome has been the very good performance of mortgages during the last few years,” Khater said in an article titled “Tight Credit Results in Flawless Performance,” which was part of CoreLogic’s most recent MarketPulse.
The mortgage delinquency rate (the rate of borrowers 60 days or more delinquent on their mortgage) dropped 23.3% in the past year, ending Q3 2013 at 4.09%. It stood at 5.33% in Q3 2012. The mortgage delinquency rate also dropped on a quarterly basis, down 5.3% from 4.32% in Q2 2013, the seventh straight quarterly decline.
All 50 states and the District of Columbia experienced a decline in their mortgage delinquency rate between Q3 2012 and Q3 2013. Five states -- California, Arizona, Nevada, Colorado and Utah -- experienced 30%+ declines in their mortgage delinquency rate. Three states -- California, Florida and Nevada -- had double-digit percentage drops in the last quarter.
The data provided are gathered from TransUnion's proprietary Industry