December Market Matters Report II

When Buying A Home Is Too Costly And The Rent Is Too High
Source: NPR

A new report from the Harvard Joint Center for Housing Studies finds that affordability problems for renters have skyrocketed over the past decade, and in the aftermath of the economic recession, more people have been driven out of the housing market and into rental housing. As monthly rent swallows ever larger portions of Americans’ paychecks, homeownership grows out of reach. Overall, the number of American renters paying unaffordable amounts for housing reached an all-time high last year.

Making sense of the story:

- More than half of renters – 21.1 million              households – were cost burdened in 2012, paying more than 30 percent of income for housing. This is the greatest number of housing-cost-burdened renters on record. 

- According to the study, between 2000 and last year, the nation’s median rent, adjusted for inflation, increased 6 percent, while the median income for renters fell 13 percent.

- Twenty-eight percent of renters paid more than 50 percent of their income on housing in 2011.

- From 2001 to 2011, nearly one in five households headed by someone in their 30s switched from owning a home to renting at some point; nearly one in seven households headed by a person in their 40s did the same.

- In order  to pay their monthly housing costs, low-income households with severe housing cost burdens cut back most heavily on their spending             for food, transportation, health care, and retirement savings.

- According to the study, about 13 percent of extremely low-income renters reside in homes with structural deficiencies. 

Read the full story…

In other news …

Banking Under Dodd-Frank Takes Shape With Volcker-Rule Approval
Source: Bloomberg

Regulators have now finalized and approved the Volcker Rule, which is intended to stop banks from engaging in certain types of risky behavior. The rule stems from the Dodd-Frank financial reform act that passed in 2010, and it bars banks from speculating with their own money.

Read the full story…

Trulia: Repeat homebuyers to dominate 2014 market
Source: HousingWire

In his latest housing predictions for 2014, Jed Kolko, chief economist with Trulia, posited that the housing market will see the dominance of the repeat homebuyer. This is a shift from the dominance of investors in 2013.

Read the full story…

Housing Market Overstocked With Older Homes
Source: AOL Real Estate

A recent survey from research firm RealtyTrac indicates that 71 percent of U.S. single-family homes were built before 1990. New-home construction is well below normal long-term levels.

Read the full story…

U.S. Senate confirms Mel Watt as next FHFA director
Source: HousingWire 

This week the U.S. Senate confirmed Congressman Mel Watt’s nomination to lead the Federal Housing Finance Agency. There were 57 votes in Watt’s favor to replace Ed DeMarco. It remains to be seen how Watt’s leadership will affect the agency as the conservator of Fannie Mae and Freddie Mac.

Read the full story…

Correcting three myths about the housing market
Source: Reuters

Reuters states persistent myths about the market are obscuring the data and driving policy in the wrong direction. Specifically, the publication suggests the following are myths: 1) The foreclosure crisis is over; 2) We have to let homeowners fail; and 3) There’s nothing more the government can do.

Read the full story…

Nobel laureate: Everyone should have a financial adviser
Source: InvestmentNews

Robert Shiller, the Nobel Prize-winning economist, argued in a recent speech that financial advice should be readily available to all Americans, not just the wealthy. He pointed to a lack of good financial advice as one of the reasons for the financial crisis, and he compared the need for financial advice with the need for health care.

Read the full story…

Chinese investors snatch up U.S. houses
Source: CNN Money

Chinese buyers purchased $8.2 billion worth of U.S. property in 2012, and New York and Los Angeles are two cities that attracted the most interest from buyers. But Philadelphia and Detroit came in at No. 3 and No. 4, and the top 10 list is rounded out by Houston, Chicago, Las Vegas, Atlanta, San Diego and Memphis. Most of these transactions are paid in cash.

Read the full story…

Fannie, Freddie to Raise Loan Fees
Source: Wall Street Journal

Home-loan borrowing costs for U.S. homeowners could be affected by an increase in fees that Fannie Mae and Freddie Mac charge lenders. There will be a 0.1 percentage point increase in the so-called “guarantee” fees that lenders are charged. However, in the majority of states, this increase will be offset by the removal of crisis-era fees.

Read the full story…


Talking Points …

—> According to the latest report from Morningstar Credit Ratings, distressed inventory is on the decline, but the number of months it takes to clear distressed inventory from the market is on the rise.

—> The time to clear this inventory has increased by five months from the second quarter of this year and 11 months from September 2012, according to Morningstar’s analysis. According to its forecasts, it will take 49 months to work through the private-label RMBS sector’s distressed inventory.

—> Judicial states hold about 61 months of distressed inventory, while non-judicial states hold about 32 months’ worth. Short sales made up 49 percent of distressed sales in the third quarter of this year, up from 45 percent a year ago.

Thanks for reading!

Cordially,
David S. Wilfert
RE/MAX R.E.O. – The Wilfert Group
12341 Newport Avenue, Suite A-100, North Tustin, CA 92705
Real Estate Broker – BRE# 01861699
Notary Public – Commission# 1987439
Direct: (714) 963-8000 or Email: David@WilfertGroup.com

December Market Matters Report I

Housing markets rebound faster when foreclosures proceed quickly
Source: The LA Times

Appraisal industry experts have posited that real estate markets rebound much faster in areas where state law permits foreclosures to proceed quickly. Allowing homes with defaulted loans to move into new owners’ hands quickly prevents them from being tied up in court procedures for years, which negatively affects values of neighboring properties and the overall health of the housing market.

Making sense of the story:

—> Delays are most pronounced in judicial states, where post-default proceedings can stall foreclosure completions for two to three years or even longer.

—> The fastest-rebounding markets, comprised of strong sales, price increases and low inventories of unsold houses, were located in so-called nonjudicial states, where foreclosures can proceed without the intervention of courts.

—> Home-price recoveries are hindered when lenders are prevented from recovering and reselling the units to buyers due to legal limbo. Also, investors and other buyers can’t swoop in and return them to residential use rapidly.

—> Since California is a nonjudicial state, some of the best-performing market areas were Los Angeles and San Diego. In California, foreclosures now account for just 10 percent of all sales, while in slow-moving judicial states, 25 to 50 percent of sales are foreclosures.

—> The worst performers were judicial states. Specifically, Florida markets such as Tampa and Fort Myers, as well as parts of Illinois and Wisconsin.

Research reveals nonjudicial states bottomed out sooner than judicial states, and have seen greater appreciation since the bottom (typically 50 to 80 percent compared with just 10 to 45 percent for judicial states).

Read the full story…

In other news…

White House Representative Speaks on Housing Finance Reform
Source: DSNews.com

Gene Sperling, director of the National Economic Council for the White House, recently discussed the president’s four major principles for housing finance reform at an industry symposium. Sperling emphasized maintaining widespread access to the 30-year, fixed-rate mortgage, and enhancing the role of private capital in the market.

Read the full story…

New home sales surge in October
Source: The LA Times

The Commerce Department is reporting that sales of newly built single-family houses rose 25.4 percent from September to a seasonally adjusted annual rate of 444,000. Sales are up 21.6 percent in comparison to October 2012.

Read the full story…

Mortgage loan quality improved in 2013
Source: HousingWire

Home loan eligibility jumped to 96.44 percent in the first half of the year from 93.66 percent in 2012, according to a new report from compliance technology firm Quality Mortgage Services.

Read the full story…

FHFA: Conforming Loan Limits Remain Unchanged
Source: DSNews.com

The Federal Housing Finance Agency has announced that the 2014 maximum loan limit for mortgages acquired by Fannie Mae and Freddie Mac will remain at $417,000 for one-unit properties in most areas of the country. There is a cap of $625,500 in high-cost areas.

Read the full story…

Senate opens door for immediate housing finance reform
Source: The Hill

Due to the Senate’s elimination of the filibuster for presidential nominations, many experts believe Rep. Mel Watt (D-N.C.) finally will be as the next director of the Federal Housing Finance Agency, and with that change in leadership, there could be immediate major housing finance reform that provides greater access to the conventional housing finance market for a variety of buyers.

Read the full story…

Key U.S. housing markets challenged by lack of multifamily builds
Source: HousingWire

The latest building permit numbers indicate there were 387,000 authorizations for new multifamily units in October, which is an increase from the past two months. However, experts argue the number is too low and that equity financing for apartment projects is not growing.

Read the full story…

Southland home buyers shifting to condos as house prices rise
Source: The LA Times

Since home prices jumped in price this year, southern California home buyers purchased fewer single-family homes in October due to affordability concerns. However, since condos are the only affordable path to homeownership in many urban areas, demand increased this year.

Read the full story…

Talking Points…

—> According to the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.), 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.

—> The share of equity sales – or non-distressed property sales – dipped slightly in October, but still made up more than eight in 10 sales, marking the fourth straight month that equity sales have been more than 80 percent of total sales.

—> Housing inventory levels tightened slightly for the first time in five months but were still extremely low.  The Unsold Inventory Index for equity sales dipped from 3.5 months in September to 3.4 months in October.

Thanks for reading.

Cordially,
David S. Wilfert
RE/MAX R.E.O. – The Wilfert Group
12341 Newport Avenue, Suite A-100, North Tustin, CA 92705
Real Estate Broker – BRE# 01861699
Notary Public – Commission# 1987439
Direct: (714) 963-8000 or Email: David@WilfertGroup.com

 

November Market Matters Report I

Americans Recover Home Equity at Record Pace

Source: Bloomberg

Low inventory may ease as more owners are able to sell, as the number of Americans who owe more on their mortgages than their homes are worth fell at the fastest pace on record in the third quarter with prices increasing. Owners are finding it easier to list properties and buy a new place because the share of owners with at least 20 percent equity climbed to 60.8 percent from 58.1 percent.

Making sense of the story:

- As more people gain the equity they need to sell their house and have a down payment for the next one, home sales are expected to pick up.

- The pent-up demand created by the low inventory is evident in the fact that the number of homes for sale reached a low of 1.8 million in early 2013, which was the fewest in more than a decade.

- As the real estate market recovers, furniture sales and renovations will add to consumer spending, as homeowners build equity and opt to sell their homes.

- According to Zillow, 10.8 million homeowners were underwater on their mortgages in the third quarter, down from 12.2 million in the second quarter.

- There are about 20 million people who had negative equity or less than 20 percent equity, down from 21.5 million in the prior three months.

- The median price of an existing home rose 12.8 percent last month. In August, it increased 13.4 percent, which was the fastest rate since the height of the real estate boom in 2005.

Read the full story…

 

In other news …

Foreclosure Inventory Plunges Nearly 30%

Source: DSNews.com

The industry’s foreclosure inventory rate is down 29.61 percent from last year, according to Lender Processing Services (LPS). Overall, foreclosure inventory has contracted for 18 consecutive months and is now at its lowest point since the end of 2008, totaling 1.28 million loans, or just 2.54 percent of today’s active mortgages.

Read the full story…

Senate rule change bolsters Watt’s chances to become top housing regulato

Source: The Hill

The Senate recently voted to prevent the minority party (i.e. Republicans) from filibustering nominations, which means Rep. Mel Watt now could be confirmed to lead the Federal Housing Finance Agency (FHFA) during the week of Dec. 9. Watt lost his first bid to win Senate confirmation due to Republican opposition.

Read the full story….

Weak October Sales Have Home Builders Fretting About Spring

Source: The Wall Street Journal

Builders are concerned that political acrimony over the federal budget and debt, as well as the fragility of the economic recovery, will hamper the spring selling season early next year. A monthly survey of builders across the nation by John Burns Real Estate Consulting reveals concern about a decline in home sales by 8 percent in October from the September level and by 6 percent from a year earlier.

Read the full story…

Can You Measure The American Dream?

Source: Bloomberg

Three professors have created the American Dream Composite Index as a way to measure what makes people feel happy, successful, and productive. The quality of life index ranks the extent to which people feel they are reaching their goals, including homeownership.

Read the full story…

Faucets at $1,000 Abound as Home Equity Spigot Opens: Mortgages

Source: Bloomberg

As there were significant gains in property prices this year, spending on home renovations is rising to records with banks such as Wells Fargo & Co. and JPMorgan Chase & Co. (JPM) increasing lending for home equity lines of credit. This spending on renovations is benefiting retailers who sell construction supplies.

Read the full story…

Americans Are Very Confused About What They Want Out of a Community

Source: The Atlantic

The NATIONAL ASSOCIATION OF REALTORS® has released the results of its latest national community preference survey and among the priorities listed by participants was the following: Improving the availability of affordable housing (59 percent list it as either “extremely high” or “high” priority), protecting the environment (57 percent), and preserving farms and open spaces from development (54 percent). But Americans also still prefer conventional suburban development with large lots.

Read the full story…

Pending Home Sales Take a Quick Turn South

Source: The Wall Street Journal

For the fifth consecutive month, the pending home sales index declined, and is now at its lowest reading since December 2012. In June, pending home sales were up 11 percent from their year-ago levels, but by October, pending sales were down 1.6 percent on a year-over-year basis.

Read the full story…

Talking Points …

—> According to the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) “2013 Renter Survey,” renters continue to hold homeownership in high esteem, and it remains a goal for the majority of them. Nearly three-quarters of renters rated homeownership as “important,” and more than half of renters (52 percent) said they plan to buy a home in the future.

—> Most renters (44 percent) who expressed the desire to own instead of rent were only renting out of financial necessity and the majority plan to buy in the next three years or longer.

—> More than four out of every 10 renters (41 percent) indicated they plan to purchase in the same county where they currently reside, and 14 percent plan to buy in the same neighborhood. Currently, about half (51 percent) of all renters live in an apartment, with the remainder residing in a single-family home, a townhouse, or a condominium.

Hope this helps!

Cordially,
David S. Wilfert
RE/MAX R.E.O. – The Wilfert Group
12341 Newport Avenue, Suite A-100, North Tustin, CA 92705
Real Estate Broker – BRE# 01861699
Notary Public – Commission# 1987439
Direct: (714) 963-8000 or Email: David@WilfertGroup.com

Mesa Del Mar: Third Quarter 3Q SOLD Listings

Real Estate Costa Mesa

Links:

City of Costa Mesa: September, End of Month Report

Mesa Del Mar: Second Quarter 2Q SOLD Listings

Featured Costa Mesa Listing:

Costa Mesa CA

For more detailed information specific to your property call today or request a FREE market evaluation!

Best regards,
The Wilfert Group©
George & David S. Wilfert
Direct: (714) 357-1422
Info@WilfertGroup.com

Disclaimer:

The generated data is gathered from the SoCal Multiple Listing Service (MLS) and is deemed reliable but not guaranteed.  This information should be used objectively as the foundation for your research.  For more detailed community information or a Computerized Market Evaluation please contact us at the Wilfert Group.

College Park: Third Quarter 3Q SOLD Listings

Costa Mesa Homes for Sale

Orange County Real Estate

Links:

City of Costa Mesa: September, End of Month Report

College Park: Second Quarter Q2 SOLD Listings

Featured Costa Mesa Listing:

Costa Mesa CA

For more detailed information specific to your property call today or request a FREE market evaluation!

Best regards,
The Wilfert Group©
George & David S. Wilfert
Direct: (714) 357-1422
Info@WilfertGroup.com

Disclaimer:

The generated data is gathered from the SoCal Multiple Listing Service (MLS) and is deemed reliable but not guaranteed.  This information should be used objectively as the foundation for your research.  For more detailed community information or a Computerized Market Evaluation please contact us at the Wilfert Group.

City of Costa Mesa: September, End of Month Report

Single Family Residences (SFR):

City of Costa Mesa

City of Costa Mesa

Condominiums (Condos):

City of Costa Mesa

City of Costa Mesa

Links:

City of Costa Mesa: August, End of Month Report

Featured Listings:

Costa Mesa CA

For more detailed information specific to your property call today or request a FREE Market Evaluation!

Best regards,
The Wilfert Group©
George & David S. Wilfert
Direct: (714) 357-1422
Info@WilfertGroup.com

Disclaimer:

The generated data is gathered from the SoCal Multiple Listing Service (MLS) and is deemed reliable but not guaranteed.  This information should be used objectively as the foundation for your research.  For more detailed community information or a Computerized Market Evaluation please contact us at the Wilfert Group.

 

Old Town Tustin: August, End of Month Report

City of Tustin

City of Tustin

Links:

City of Tustin: August, End of Month Report

Old Town Tustin: July, End of Month Report

Featured Tustin Listings:

Peppertree, City of Tustin

For more detailed information specific to your property call today or request a FREE market evaluation!

Best regards,
The Wilfert Group©
George & David Wilfert
Direct: (714) 357-1422
Info@WilfertGroup.com

Disclaimer:

The generated data is gathered from the SoCal Multiple Listing Service (MLS) and is deemed reliable but not guaranteed.  This information should be used objectively as the foundation for your research.  For more detailed community information or a Computerized Market Evaluation please contact us at the Wilfert Group.

 

Peppertree: August, End of Month Report

City of Tustin

Links:

City of Tustin: August, End of Month Report

Peppertree: July, End of Month Report

Featured Tustin Listings:

Peppertree, City of Tustin

For more detailed information specific to your property call today or request a FREE market evaluation!

Best regards,
The Wilfert Group©
George & David Wilfert
Direct: (714) 357-1422
Info@WilfertGroup.com

Disclaimer:

The generated data is gathered from the SoCal Multiple Listing Service (MLS) and is deemed reliable but not guaranteed.  This information should be used objectively as the foundation for your research.  For more detailed community information or a Computerized Market Evaluation please contact us at the Wilfert Group.

 

Tustin Meadows: August, End of Month Report

City of Tustin, CA

City of Tustin

Links:

City of Tustin: August, End of Month Report

Tustin Meadows: July, End of Month Report

Featured Tustin Listings:

Peppertree, City of Tustin

For more detailed information specific to your property call today or request a FREE market evaluation!

Best regards,
The Wilfert Group©
George & David Wilfert
(714) 357-1422

Disclaimer:

The generated data is gathered from the SoCal Multiple Listing Service (MLS) and is deemed reliable but not guaranteed.  This information should be used objectively as the foundation for your research.  For more detailed community information or a Computerized Market Evaluation please contact us at the Wilfert Group.

 

City of Tustin: August, End of Month Report

Single Family Homes (SFH):

August 2011

August 2011

Condominiums (Condos):

August 2011

August 2011

Links:

City of Tustin: July, End of Month Report

For more detailed information specific to your property call today or request a FREE Market Evaluation!

Best regards,
The Wilfert Group©
George & David S. Wilfert
Direct: (714) 357-1422
Info@WilfertGroup.com

Disclaimer:

The generated data is gathered from the SoCal Multiple Listing Service (MLS) and is deemed reliable but not guaranteed.  This information should be used objectively as the foundation for your research.  For more detailed community information or a Computerized Market Evaluation please contact us at the Wilfert Group.

 

South Coast Metro: August, End of Month Report

City of Costa Mesa CA

City of Costa Mesa CA

Links:

City of Costa Mesa: August, End of Month Report

South Coast Metro: July, End of Month Report

Featured Costa Mesa Listings:

Costa Mesa CA

For more detailed information specific to your property call today or request a FREE market evaluation!

Best regards,
The Wilfert Group©
George & David Wilfert
(714) 357-1422

Disclaimer:

The generated data is gathered from the SoCal Multiple Listing Service (MLS) and is deemed reliable but not guaranteed.  This information should be used objectively as the foundation for your research.  For more detailed community information or a Computerized Market Evaluation please contact us at the Info@WilfertGroup.com.

 

Mesa Verde State Streets: August, End of Month Report

Costa Mesa CA

Costa Mesa CA

Links:

City of Costa Mesa: August, End of Month Report

Mesa Verde State Streets: July, End of Month Report

Featured Costa Mesa Listings:

Costa Mesa CA

For more detailed information specific to your property call today or request a FREE market evaluation!

Best regards,
The Wilfert Group©
George & David Wilfert
(714) 357-1422

Disclaimer:

The generated data is gathered from the SoCal Multiple Listing Service (MLS) and is deemed reliable but not guaranteed.  This information should be used objectively as the foundation for your research.  For more detailed community information or a Computerized Market Evaluation please contact us at the Wilfert Group.

 

North Costa Mesa: August, End of Month Report

Costa Mesa CA

City of Costa Mesa CA

Links:

City of Costa Mesa: August, End of Month Report

North Costa Mesa: July, End of Month Report

Featured Costa Mesa Listings:

Costa Mesa CA

For more detailed information specific to your property call today or request a FREE market evaluation!

Best regards,
The Wilfert Group©
George & David Wilfert
(714) 357-1422

Disclaimer:

The generated data is gathered from the SoCal Multiple Listing Service (MLS) and is deemed reliable but not guaranteed.  This information should be used objectively as the foundation for your research.  For more detailed community information or a Computerized Market Evaluation please contact us at the Wilfert Group.