LOS ANGELES (Aug. 25) – Home sales increased 12 percent in July in California compared with the same period a year ago, while the median price of an existing home declined 19.6 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.
“The federal tax credit for first-time buyers played a critical role in the purchase decision of many buyers,” said C.A.R. President James Liptak. “Nearly 40 percent of first-time buyers said they would not have purchased a home if the tax credit was not offered.
“Because the tax credit has helped so many first-time buyers become homeowners, it is critical that Congress extends the credit beyond the Dec. 1 deadline, and includes all buyers, not just first-timers.”
Closed escrow sales of existing, single-family detached homes in California totaled 553,910 in July at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity increased 12 percent from the revised 494,390 sales pace recorded in July 2008. Sales in July 2009 increased 8.1 percent compared with the previous month.
The statewide sales figure represents what the total number of homes sold during 2009 would be if sales maintained the July pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
The median price of an existing, single-family detached home in California during July 2009 was $285,480, a 19.6 percent decrease from the revised $355,000 median for July 2008, C.A.R. reported. The July 2009 median price rose 3.9 percent compared with June’s $274,740 median price.
“July marked the fifth consecutive month of month-to-month increases in the median price,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “This was the largest increase on record for the month of July based on statistics dating back to 1979. The yearly decline in July also was the smallest in the past 19 months.
Wednesday, August 26, 2009
Wednesday, August 12, 2009
California Housing Market shows signs of recovery!
The median price of a home in California rose for the fourth straight month in June. State wide the median price was $274,740 up 4.2 percent from May but still 26.4% below last June.
June sales slipped 6% from May but showed a 20.1 percent increase over the same period one year ago. While gains are expected be higher during the remaining months of 2009, they gains will not be quite as steep according to CAR economists.
Gains in sales for the first half of 2009 exceeded last year’s pace by 50.6% and are expected to be around 25% ahead of last years pace at year end.
The unsold inventory index in June was at 4.1 months and has decreased at a steady pace from the first of the year when it stood at 6.6 months and is well below the peak of 16.6 months in early 2008. The low inventory may contribute to an upward pressure on home prices.
Folks better gem 'em while they're cheap!!
June sales slipped 6% from May but showed a 20.1 percent increase over the same period one year ago. While gains are expected be higher during the remaining months of 2009, they gains will not be quite as steep according to CAR economists.
Gains in sales for the first half of 2009 exceeded last year’s pace by 50.6% and are expected to be around 25% ahead of last years pace at year end.
The unsold inventory index in June was at 4.1 months and has decreased at a steady pace from the first of the year when it stood at 6.6 months and is well below the peak of 16.6 months in early 2008. The low inventory may contribute to an upward pressure on home prices.
Folks better gem 'em while they're cheap!!
Tuesday, July 28, 2009
Valley home sales up 30% as buyers jump on deals
Valley home sales up; prices dip
Home sales rose 20 percent across the state in June as the Coachella Valley continued to post sales volume gains.
“The trend we are seeing is that prices are stabilizing and sales are spiking, so buyers are getting the message that this is not a time to linger if they are in the hunt to buy a home,'' said Greg Berkemer, executive director of the California Desert Association of Realtors.
Valley home sales rose 30 percent, with 2,898 transactions noted from April to June.
That's up from 2,222 sales during the same period last year, according to Multiple Listing Service data released by the Desert Association of Realtors.
The average MLS home sale price in the valley from April to June was $257,427, up from $250,935 from January through March.
“There was a slight tick up of the average sales price in the second quarter, and people are starting to notice that,” Berkemer said.
But Patrick Veling, president and founder of Brea-based Real Data Strategies, said the enthusiasm about rising home sales must be tempered with statistics that show home sales are largely occurring at entry-level price ranges.
“There's been about a 20 percent increase in sales activity, but that's occurring only when compared to record lows,'' he said.
Average home sale prices are down dramatically from a year ago: The fall in prices nearly equates to two homes for the price of one. Last year, the average MLS sale price on a single-family home was $486,694 in the first three months. It averaged $454,706 from April to June 2008.
The median price of all homes sold in May in the Coachella Valley — that would include existing single-family homes, condos and new construction — was $180,000. That's down 41 percent from a year ago.
The price points have been a catalyst for sales.
James Liptak, president of the California Association of Realtors, said June marked the 10th consecutive month of positive sales gains for resale homes across the state.
“Many first-time buyers, especially those who were previously priced out of certain areas, are realizing that tax credits from both the state and federal governments increased affordability, and low-interest rates are creating a prime time to purchase a home,'' he said.
It was the fourth month of rising median home prices across California, Liptak said.
The state median of $274,740 rose 4.2 percent from May to June but was down nearly $100,000 from one year ago. The state median in June 2008 was $374,100.
Closed escrow sales across California totaled 514,110 in June at a seasonally adjusted rate. The sales pace recorded in June 2008 was 427,910 closed escrow sales.
Home sales rose 20 percent across the state in June as the Coachella Valley continued to post sales volume gains.
“The trend we are seeing is that prices are stabilizing and sales are spiking, so buyers are getting the message that this is not a time to linger if they are in the hunt to buy a home,'' said Greg Berkemer, executive director of the California Desert Association of Realtors.
Valley home sales rose 30 percent, with 2,898 transactions noted from April to June.
That's up from 2,222 sales during the same period last year, according to Multiple Listing Service data released by the Desert Association of Realtors.
The average MLS home sale price in the valley from April to June was $257,427, up from $250,935 from January through March.
“There was a slight tick up of the average sales price in the second quarter, and people are starting to notice that,” Berkemer said.
But Patrick Veling, president and founder of Brea-based Real Data Strategies, said the enthusiasm about rising home sales must be tempered with statistics that show home sales are largely occurring at entry-level price ranges.
“There's been about a 20 percent increase in sales activity, but that's occurring only when compared to record lows,'' he said.
Average home sale prices are down dramatically from a year ago: The fall in prices nearly equates to two homes for the price of one. Last year, the average MLS sale price on a single-family home was $486,694 in the first three months. It averaged $454,706 from April to June 2008.
The median price of all homes sold in May in the Coachella Valley — that would include existing single-family homes, condos and new construction — was $180,000. That's down 41 percent from a year ago.
The price points have been a catalyst for sales.
James Liptak, president of the California Association of Realtors, said June marked the 10th consecutive month of positive sales gains for resale homes across the state.
“Many first-time buyers, especially those who were previously priced out of certain areas, are realizing that tax credits from both the state and federal governments increased affordability, and low-interest rates are creating a prime time to purchase a home,'' he said.
It was the fourth month of rising median home prices across California, Liptak said.
The state median of $274,740 rose 4.2 percent from May to June but was down nearly $100,000 from one year ago. The state median in June 2008 was $374,100.
Closed escrow sales across California totaled 514,110 in June at a seasonally adjusted rate. The sales pace recorded in June 2008 was 427,910 closed escrow sales.
Monday, July 27, 2009
Thursday, July 23, 2009
Troubled owners: 3 warnings about short sales
Many struggling homeowners are considering short sales as a way to avoid foreclosure on their homes, but there are a few things they should know before taking the plunge. Source: MSN Real Estate
Click here for more info.
Click here for more info.
Wednesday, July 22, 2009
Facebook facts
There are three ways to have a Facebook presence
1. A Facebook profile, usually for an individual but sometimes for an organization, includes information about the person, a wall for public messages, and other elements that the user can decide to include or leave out. Users who want to connect with the owner of a personal page become friends.
2. A Facebook fan page, which can be for individuals or organizations, allows Facebook users to join, receive updates and conduct discussions on the group’s wall or in a discussion forum. Users who want to participate become fans.
3. A Facebook group can be created to foster discussion and information-sharing about a common interest. Users who want to be involved join the group.
1. A Facebook profile, usually for an individual but sometimes for an organization, includes information about the person, a wall for public messages, and other elements that the user can decide to include or leave out. Users who want to connect with the owner of a personal page become friends.
2. A Facebook fan page, which can be for individuals or organizations, allows Facebook users to join, receive updates and conduct discussions on the group’s wall or in a discussion forum. Users who want to participate become fans.
3. A Facebook group can be created to foster discussion and information-sharing about a common interest. Users who want to be involved join the group.
Tuesday, July 21, 2009
E-mail lives, but do we need it?
Click line below for more details.
Social-networking tools are increasingly replacing e-mail.
Social-networking tools are increasingly replacing e-mail.
Monday, July 20, 2009
11 essential loan-modification tips
Check this out! Great info for those who need a loan modification.
11 essential loan-modification tips.
Source: MSN Real Estate.
11 essential loan-modification tips.
Source: MSN Real Estate.
Monday, July 13, 2009
Understanding and Using All of Your First Time Home Buyer Options
With all the excitement of the first time home buyer tax credit, buyers often get confused and miss out on other important options.
As a first time buyer, don't let the excitement of the $8,000 tax credit cause you to miss out on many other home buying options. It isn't uncommon for a buyer to confuse the federal tax credit with seller credits, down payment assistance, or first time home buyer grants.
First time home buyers have many options. Utilizing one option does not hold a buyer back from utilizing one or more other options allowed to them as a first time home buyer. This article is written not to go into great depth on each option, but to help you realize the different options available as a first time home buyer and how to utilize each/all of these options.
Read on to understand some common terms and how to take advantage of each option.
Tax Credit
The federal tax credit is the (up to) $8,000 incentive that everyone is talking about. Most home buyers that haven't owned a home in the last 3 years will qualify for this. In general, this credit is realized as a credit for you when you complete your taxes in the spring of 2009 (for 2008's income).
For example, if you would have normally received $2,000 back after completing your 2009 tax returns, the tax credit would add an additional $8,000, to make your total amount received $10,000.
Seller Credit (Seller Concessions)
A seller credit, better known as seller concessions, is a scenario when the seller agrees to pay a certain amount of your settlement costs. The seller may pay a percentage, such as 2, 3, or 6% of the purchase price, or they may pay a dollar amount, such as $2,500 or $5,000.
Grants for First Time Home Buyers
Many people miss out on first time home buyer grant options. Once a buyer hears about the $8,000 tax credit, they sometimes go deaf to other options, either out of excitement or because they don't realize they can utilize more than one option.
A grant is a program often issued by a county or state that offers funds to the home buyer for the purchase of a home. Either a flat dollar amount or a percentage of the loan amount is used to calculate the funds offered. A typical grant percentage would be 2, 3, or 4% of the loan amount. For instance, 4% of a loan amount of $100,000 would give you a $4,000 grant.
Grants can be utilized for down payment requirements and/or to pay for closing costs. Depending on the purchase price and the grant selected, a grant can sometimes even cover all requirements the buyer has concerning both the down payment requirement and closing costs.
Down Payment Assistance
As of the date of this article, down payment assistance in the traditional sense is not available.Down payment assistance programs (DAPs) were an option where the seller would indirectly give a buyer the money needed for down payment requirements. These transactions in general had a higher default rate then most, therefore this option is no longer available. Examples were the Nehemiah program or the Genesis program. There is a movement to reinstate these programs. The mentioning of DAPs here is simply to help you differentiate and not confuse them with other options.
How to Utilize More Than One First-Time Home Buyer Option
Here's where the rubber meets the road. A common example of utilizing all of the above options is as follows:
1. Buyer meets with grant official or loan officer for qualification requirements pertaining to a specific grant option. In our example the buyer will use an FHA mortgage, which requires a 3.5% (of the purchase price) down payment. The purchase price is $100,000, therefore the down payment requirement for this would be $3,500.
2. Loan officer and buyer determine that the use of a 4% grant would be the wisest choice. Since the down payment requirement is $3,500, the financed amount will be $96,500 ($100,000 - $3,500). Based off of $96,500, a 4% grant would be $3,860 (loan amount x 4%, or $96,500 x .04)). Compare the grant amount with the buyer's down payment requirement of $3,500, and the grant amount is $360 more than the required down payment amount. This type of grant covers the down payment requirements and some additional funds to be applied towards the closing costs.
3. Assuming closing costs are $5,000, here is how you can determine what to request from the seller to get the closing costs paid as well. We can subtract the extra money left over from the grant, in this case $360, from $5,000. Our sum is $4,640. FHA requirements allow the seller to pay up to 6% of the buyer's closing costs. We don't need all 6% (or $6,000), we only need $4,640 from the seller. So when the purchase of the home is negotiated, the buyer's agent negotiates with the seller's agent that the seller will agree to pay $4,640 towards the buyers settlement fees/closing costs.
4. Buyer goes to settlement needing $0 to close, and in fact they will get back the money already deposited with the real estate agent and lender.
5. Lastly, the buyer can still maximize the use of the federal tax credit and receive their $8,000 after filing their 2009 tax returns.
All-in-all, in our scenario the home buyer will receive $16,500 for purchasing a home ($3,860 grant + $4,640 seller's concessions + $8,000 tax credit). The buyer is able to utilize three separate home buying options and in the end, still have their own money in the bank, which will then get boosted in several months by the $8,000 tax credit. Now THAT is the kind of lending and buyer representation that creates solid, well founded home owners, which is exactly what we all desire.
By working with knowledgeable professionals, you can utilize multiple buyer options to make your home buying experience an amazing event!
As a first time buyer, don't let the excitement of the $8,000 tax credit cause you to miss out on many other home buying options. It isn't uncommon for a buyer to confuse the federal tax credit with seller credits, down payment assistance, or first time home buyer grants.
First time home buyers have many options. Utilizing one option does not hold a buyer back from utilizing one or more other options allowed to them as a first time home buyer. This article is written not to go into great depth on each option, but to help you realize the different options available as a first time home buyer and how to utilize each/all of these options.
Read on to understand some common terms and how to take advantage of each option.
Tax Credit
The federal tax credit is the (up to) $8,000 incentive that everyone is talking about. Most home buyers that haven't owned a home in the last 3 years will qualify for this. In general, this credit is realized as a credit for you when you complete your taxes in the spring of 2009 (for 2008's income).
For example, if you would have normally received $2,000 back after completing your 2009 tax returns, the tax credit would add an additional $8,000, to make your total amount received $10,000.
Seller Credit (Seller Concessions)
A seller credit, better known as seller concessions, is a scenario when the seller agrees to pay a certain amount of your settlement costs. The seller may pay a percentage, such as 2, 3, or 6% of the purchase price, or they may pay a dollar amount, such as $2,500 or $5,000.
Grants for First Time Home Buyers
Many people miss out on first time home buyer grant options. Once a buyer hears about the $8,000 tax credit, they sometimes go deaf to other options, either out of excitement or because they don't realize they can utilize more than one option.
A grant is a program often issued by a county or state that offers funds to the home buyer for the purchase of a home. Either a flat dollar amount or a percentage of the loan amount is used to calculate the funds offered. A typical grant percentage would be 2, 3, or 4% of the loan amount. For instance, 4% of a loan amount of $100,000 would give you a $4,000 grant.
Grants can be utilized for down payment requirements and/or to pay for closing costs. Depending on the purchase price and the grant selected, a grant can sometimes even cover all requirements the buyer has concerning both the down payment requirement and closing costs.
Down Payment Assistance
As of the date of this article, down payment assistance in the traditional sense is not available.Down payment assistance programs (DAPs) were an option where the seller would indirectly give a buyer the money needed for down payment requirements. These transactions in general had a higher default rate then most, therefore this option is no longer available. Examples were the Nehemiah program or the Genesis program. There is a movement to reinstate these programs. The mentioning of DAPs here is simply to help you differentiate and not confuse them with other options.
How to Utilize More Than One First-Time Home Buyer Option
Here's where the rubber meets the road. A common example of utilizing all of the above options is as follows:
1. Buyer meets with grant official or loan officer for qualification requirements pertaining to a specific grant option. In our example the buyer will use an FHA mortgage, which requires a 3.5% (of the purchase price) down payment. The purchase price is $100,000, therefore the down payment requirement for this would be $3,500.
2. Loan officer and buyer determine that the use of a 4% grant would be the wisest choice. Since the down payment requirement is $3,500, the financed amount will be $96,500 ($100,000 - $3,500). Based off of $96,500, a 4% grant would be $3,860 (loan amount x 4%, or $96,500 x .04)). Compare the grant amount with the buyer's down payment requirement of $3,500, and the grant amount is $360 more than the required down payment amount. This type of grant covers the down payment requirements and some additional funds to be applied towards the closing costs.
3. Assuming closing costs are $5,000, here is how you can determine what to request from the seller to get the closing costs paid as well. We can subtract the extra money left over from the grant, in this case $360, from $5,000. Our sum is $4,640. FHA requirements allow the seller to pay up to 6% of the buyer's closing costs. We don't need all 6% (or $6,000), we only need $4,640 from the seller. So when the purchase of the home is negotiated, the buyer's agent negotiates with the seller's agent that the seller will agree to pay $4,640 towards the buyers settlement fees/closing costs.
4. Buyer goes to settlement needing $0 to close, and in fact they will get back the money already deposited with the real estate agent and lender.
5. Lastly, the buyer can still maximize the use of the federal tax credit and receive their $8,000 after filing their 2009 tax returns.
All-in-all, in our scenario the home buyer will receive $16,500 for purchasing a home ($3,860 grant + $4,640 seller's concessions + $8,000 tax credit). The buyer is able to utilize three separate home buying options and in the end, still have their own money in the bank, which will then get boosted in several months by the $8,000 tax credit. Now THAT is the kind of lending and buyer representation that creates solid, well founded home owners, which is exactly what we all desire.
By working with knowledgeable professionals, you can utilize multiple buyer options to make your home buying experience an amazing event!
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