Seven California Metros Area With Fastest Rising List Price

Southern California Homes Are At All Time High

In the month of May, Southern California had it's biggest price gain in nine years which puts sales at a seven-year high! 

Last month, home purchases jumped 19.5 percent from the year before.  The median price paid for all new and resale houses and condos in the six-county region increased by 24.7 percent. 

Due to the low mortgage rates and thin inventory of home for sale, the real estate market is in full recovery. 

Of course, there is speculation of whether we have entered another housing bubble.  Remember that the prices are heating up because of the low inventory and housing is becoming an attractive investment for many home buyers. 

Source: Daily News Los Angeles

Ten Reason Why the Market is a SELLERS MARKET

Are Foreclosure Becoming a Rare Sale?

by Yvette Betancourt 

According to CoreLogic, foreclosure inventory continued to shrink in April.  24% down from last year.  The shadow of foreclosure and distress continues to fade.  Six states have year-over-year declines in the foreclosure inventory of more than 40 percent, and one of those states is  California.  How much of decline?  How about 50 percent. 

In today's market, standard sales have become the norm.  Every now and then you can spot a foreclosures/shortsale property.

March pending home sales hit highest level since 2010!

by Yvette Betancourt

It's here and it's happening..... the seller's market.  According to the LA Times, March was the highest numbers of pending sales since 2010!  That is a 7% increase since last year's number for the same month. 

Due to the limited supply of homes for sale, the increase in sale prices have already shown. This change is affecting first time home buyers to investors. 

With this new information, will the National Association of Realtors' chief economist, Lawrence Yun, predication of median price for existing home sales to rise about 7.5% come true?

Only time will tell the true answer....only money is on a "YES"

Is it time to sell in the market's Buyer Bidding War?

By Yvette Betancourt 

Homebuyers are streaming through open houses and making tens of thousands of dollars above asking price and still coming away empty-handed. 

The high intense demand has sent prices soaring, according to a report released Thursday by DataQuick.  This growing demand meets an exceptionally low supply of homes for sale.  

In desirable areas, open houses are jam packed which has created a frenzy of offers coming in within 24 hours or less and sales pending within a week! 

Homeowners, its has rarely been easier to sell.  

Get to know the process of selling your home in today's market. 

NEW CONSTRUCTION HOMES ARE UP 17% SINCE LAST YEAR

Since last year, new construction home sales are up 17 percent.  And surprise... surprise...low inventory of unsold units available.  (story of the 2013 real estate season) There are new homes being planned but won't be ready or built anytime soon.  Builders are having a hard time keeping up with the housing demand.  

This gives home sellers a great opportunity to sell their home or refinance their home.  

Think of selling, sign up for a complimentary home evaluation report.

Looking to refinance, email me for a list of lender we work with. 

Is a Short Term Loan a Good Option?

Bank of America tops list of mortgage complaints nationwide

The lender has accounted for 30% of complaints to the Consumer Financial Protection Bureau, with two-thirds of them involving modifications.

The level of customer discontent — far greater than at home-lending rivals Wells Fargo & Co. and JPMorgan Chase & Co. — reflects BofA's struggles since its 2008 acquisition ofCountrywide Financial Corp. in Calabasas. Countrywide had become the No. 1 mortgage firm by specializing in subprime and other high-risk loans.

Two-thirds of the complaints involved BofA's handling of loan modifications, debt collection and foreclosures, a fact the bank attributed to the concentration of toxic Countrywide loans. An additional 20% involved customer-service problems, such as the handling of payments and escrow accounts for funds used to pay taxes and insurance.

The bank noted that the bureau's website shows that 98% of the problems have been resolved.

Foreclosure Inventory is Down by 21%

As of January 2013, foreclosure inventory has fallen for 15 months straight.  Nationwide, the number of homes in foreclosure is down by 1.2 million as of January.  This is a good sign that the real estate market and neighborhoods are stabilizing.  A major boost to the decline in foreclosure was also due to the holiday seasons in which banks traditional hold off.  

 With a decline in foreclosure,  real estate prices are soaring upward and appraisals are meeting the soaring prices.  Let us watch and see if this trend continues throughout the year.

According to CoreLogic, here are the top five states in the foreclosure inventory:

1. California (96,000)

2. Florida (95,000)

3. Michigan (74,000)

4. Texas (59,000)

5. Georgia (50,000)

For a list of recent foreclosures, click here. 

Despite the effects of the Great Recession, Owning a Home is still a dream!

New rule requires proof of buyer's ability to repay.

If lending can't get anymore difficult than it already is. (sigh) I suppose all these new requirements and rules are for the welfare of the real estate market and the borrowers. 

Announce today, the Consumer Financial Protection Bureau stated that after January 10, 2014, lender will be required to verify a buyers ability to repay.  Under the rule, lenders will have to determine if the borrower has the financial means to pay both the principal and interest on the new mortgage over the long term.  

To determine the borrower's ability to repay, there will be eight underwriting criteria.

1) current employment status - today, underwriter look at your past two years of employment

2) current income and assets - today, it's the past two years of income taxes document straight from the IRS.

3) current debt obligations - credit check

4) credit history

5) monthly payments on the mortgage

6) monthly payments on any other mortgages on the same property

7) monthly payments for other mortgage-related obligations, such as property taxes

8) monthly debt-to-income ratio or residual income the borrower would be taking on the mortgage

A qualified mortgage prohibits:

1) excessive points and fees tacked on to upfront origination costs.  

2) risky loan features such as a term that exceeds 30 years

3) interest-only payments that don't pay down a mortgage's principal

4) negative amortization payments where the principal amount increase

5) no balloon payment at the end of the loan term except, under certain circumstances, made by smaller creditor in rural or underserved area

6) the borrower's debt-to-income ratio (total monthly debt divided by total monthly gross income) cannot exceed 43 percent

What about government-backed loans?

For now, there is an temporary exemption for government-backed loans where the debt-to-income ratios is above 43 percent will be considered qualified mortgages if they meet underwriter requirement of Fannie Mae, Freddie Mac, HUD, VA, USDA, or rural housing service.

More information regarding this new rule will come throughout this year.  It does make a good argument of now is the time to refinance, sell, and buy a home this year.  With housing prices and rental prices already on the rise and a multiple offer being more common....now is a good time to buy.  As a renter, this news allows me to prepare my finances for the new rule. 

For more information about this new rule and all rules applied in 2013, click here.

For information on your local market in the San Fernando Valley or Westside, contact me. 

Congress passed the extension of the Mortgage Debt Relief Act of 2007

As a part of the Fiscal meeting yesterday, Congress passed the extension of the Mortgage Debt Relief Act of 2007 till end of 2013!

Top Three Reasons on How Homeownership is a Social Benefit

Homes are Selling Faster than Last Year

Is the Real Estate Market Recover at it's Halfway Point to Being A Full Recovery?

by Yvette Betancourt

Another report on the recovery of the real estate market.  According to the Trulia, the housing market is nearly halfway complete! There has been improvements since last year in delinquency and foreclosure rates (down 11.27 percent), existing home sales (up 59% in sales), and new construction (up 42 percent).    

What makes the news from Trulia interesting is that the recovery is accelerating and the proof is now.  During the winter real estate season, active is at it's lowest point. 

Is Lending's post-2008 Guidelines Hurting The Current Economy?

by Yvette Betancourt

Historical Low Interest Rates...Great deals on the market.... Best time to buy.... Yes, we've heard it all about this rare great housing opportunity for those who qualify.  Just recently, mortgage buyer Freddie Mac said that the average rate on a 30-year fixed rate fell to a record low of 3.4 percent.  The Federal Reserves have been working hard this year to encourage more borrowing, spending and refinancing.  It works. I'm very motivated to buy if it wasn't for one big obstacle.  The Bank.  

Banks are now requiring higher credit scores, stricter income documentations (ie. signed documentations from your employer to verify your current and future employment), and larger down payments before approving for loan.  

Don't get discourage.  The Feds are well aware of the challenges for home buyers and homeowners.  During the central bank's October meeting, the Fed may purse more bond purchases, making home-buying more affordable, in the months ahead.  Rumor has it that a new program could be announced next month in December 2012.  There is no guarantee at this moment, if the Feds could make home buying more affordable, my concern is the fine print.  

Federal Reserve Chairman Ben Bernanke said that the housing has shown signs of recovery this year.  Still, construction activity, sales and prices remain lower than they were before the crisis.  20 percent of mortgage borrowers remain underwater, meaning that they own more on their mortgage than their home worth.  

Only time will tell what the choices Freddie Mac and The Feds will make in the months ahead.  In the meantime, I'll keep filling up my "Home Sweet Home" piggy bank.  

Source: MercuryNews.com

Bank of America Second Lien Forgiveness. Was it a Good Choice?

by Yvette Betancourt

At the beginning of the summer, Bank of America announced a second-lien forgiveness to eligible homeowners.   The idea was to help homeowners who have defaulted on their home loans build equity so they no longer would owe more than their homes are worth.  Most importantly, it would encourage homeowners to continue making payments and stay in their properties.  Sounds like a heart-felt idea for distressed homeowners...right?

However, the forgiveness of the second lien has cause some challenges for qualified homeowners who are in the middle of a short sale.  Bank of America may have discharged the second lien but it is estimated to be fully "released" within 90 days.  For homeowners in the mist of a short sale, this timeframe is interfering with first lien closing deadlines with other banks and can cause a major delay in the short sale process.  

Another issue is that some borrowers will not see a benefit from the program because they would still be underwater after the second-lien has been discharged.  The program has helped 2,800 homeowners in the nation, totaling $199 million.  

Source: www.utsandiego.com

Generation X and Y: More Knowledgeable about Homeownership since Housing Crisis

The housing crisis has made Generation X and Y more knowledge about homeownership according to a Better Homes and Gardens Real Estate, the online survey of 1,001 members during the Summer.  69% were ready to buy but unsure if they can maintain their lifestyle and the responsibility of homeownership while 61% have landed a secure job to start their path to homeownership.    

The future soon-to-be-buyers have stated that the tops three research before buying a home was home prices in prime neighborhood, interest rates and the securing a loan. I would say these are great areas to focus on. 

62% said that adjusting their lifestyle to save a home, 40% would work a second job or 23% would move back home with their parents.  

Sounds like the ups and downs of the housing crisis has influenced the Gen x and Gen Y about the risks and rewards of home-buying.  

For more tips, go to www.BetancourtRealEstateGroup.com

Source: InnmanNews.com

Rental Prices Rise Faster Than Home Prices

Since 2006, the housing market will have an annual price increase according to reports by Trulia.  It's great news to hear and another sign of the improving housing market and economy.  How much of an increase? About 2.5 percent in asking prices.  Excluding foreclosure sales, prices are up 3.5 percent.

However, rent prices are also on the rise.  In one year, rental prices have rise 4.8 percent since last September!  According to Trulia, the steepest price gain has been in Houston with 15.9 percent and Miami with 10.4 percent.

I am a renter and I am no stranger to the increasing of rental prices.  With interest rates low for qualified buyers and balanced real estate market....all signs point to a great opportunity to jump into the real estate market or start buying some apartments or duplex.