February Market Matters Report – Week Ending 02.21.14

Finding ways to help young adults make their first home purchases
Source: LA Times

Stricter mortgage underwriting standards, higher unemployment, and heavy student debt are among the key factors that stand in the way of many potential buyers in their 20s and 30s. But first-time home buyers in this age group may be able to turn to effective techniques that family members, friends, and even employers can use to bridge the generational gap by offering a helping hand.

Making sense of the story:

• Americans who were 30 to 34 in 2012 had the lowest homeownership rate of any similarly aged group in recent decades at 47.9 percent.

• In comparison, Americans born between 1948 and 1957 had a 57.1 percent ownership rate by the time they hit the 30-to-34 bracket. This is despite record low mortgage rates and bargain-priced foreclosures and short sales.

• A new federal rule imposing a 43 percent maximum debt-to-income ratio for “qualified mortgages” is particularly difficult for younger buyers with high student debt. Student debts average $21,402 but can balloon as high as six figures.

• According to one industry estimate, 27 percent of first-time buyers last year received gift money from relatives to help defray the down payment and closing costs.

• With professional help, some family members are providing either second mortgages or first mortgages, and properly structured, these loans provide annual returns to family members well in excess of money-market funds or bank deposits.

• Money provided as a loan cannot be disguised as a loan. If the money is a gift, there needs to be a formal letter making the purpose of the gift explicit and the specific transaction for which it is to be used. Documentation is also needed to attribute the source of the funds and the capacity of the gift giver to provide the money.

Read the full story

In other news …

U.S. Home Sellers Return for Spring as Buyers Get Relief
Source: Bloomberg

As the housing market’s busiest season approaches, escalating values are spurring more listings as homeowners regain equity lost in the worst crash since the 1930s. With more sellers looking to cash in on rising prices, would-be buyers likely will have more choice and therefore, relief from the bidding wars of last year.

Read the full story

If investors bail on housing, what then?
Source: CNBC

After the housing crash, investors bought thousands of distressed properties with billions of dollars in cash. It is estimated that institutional investors have purchased well over 100,000 homes, but some experts are concerned that if investors pull out of the housing market this year, there could be a “significant” or “somewhat significant” impact on the markets.

Read the full story

Student debt may hurt housing recovery by hampering first-time buyers
Source: Washington Post

Millions of Americans are carrying heavy student debt, which could prevent a generation of potential buyers from purchasing their first homes. Purchases from first-time buyers are well below the historical norm, thereby undermining the housing recovery’s momentum.

Read the full story

Cold weather saps homebuilder confidence in February
Source: The Hill

In February, homebuilder confidence fell to its lowest level since May due to unusually cold weather. In light of the decline in buyer traffic as rampant snowstorms blanketed the country, there was a 10-point drop on the National Association of Home Builders(NAHB)/Wells Fargo Housing Market Index (HMI).

Read the full story

Dirty Mortgage Words
Source: Forbes

Forbes outlines some of the dreaded terms used in the mortgage industry, whether they’re consumer-centric or industry words. “Adverse” is described as the dirtiest word in the consumer-centric mortgage world since it is mortgage-speak for decline.

Read the full story

Gap Between Most, Least Expensive Housing Markets Still Wide
Source: Wall Street Journal

Evidence of a widening price gap was made clear in the annual affordability survey from the NATIONAL ASSOCIATION OF REALTORS®. While homes in much of the nation are affordable, on the coasts, especially California, a familiar pattern is reemerging: Too many people, not enough homes, and price growth that outstrips income growth.

Read the full story

The best and worst housing markets for taxes
Source: HousingWire

According to analysis of data from the Office of Revenue Analysis, homeowners in the housing market with the heaviest overall tax burden paid a percentage of their income seven times greater than the burden borne by the housing market with the lowest overall tax burden.

Read the full story

Talking Points …

• Between the years 2007 and 2011, 42,000 new residents moved from Los Angeles County to San Bernardino County, which represents the largest migration into a region in the United States, according to the U.S. Census Bureau’s migration report. Affordability of housing is attributed as the number one reason for the migration.

• The median home price in the San Bernardino County is hundreds of thousands of dollars cheaper in comparison to Los Angeles County and Orange County. The huge savings have led to the greater inland migration, and the Inland Empire has a greater share of undeveloped property.

• According to the report, the second largest area of migration was from Los Angeles County to Orange County, with 40,000 people. The third largest is from Asia, with 35,000 people from Asia moving into Los Angeles County.

Thanks for reading!  Feel free to call with questions, (714) 963-8000!

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

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.

 

Mesa Del Mar & Lyon Mesa: August, End of Month Report

Costa Mesa CA

Costa Mesa CA

Links:

City of Costa Mesa: August, End of Month Report

Mesa Del Mar & Lyon 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.

 

College Park: August, End of Month Report

Costa Mesa CA

Costa Mesa CA

Links:

City of Costa Mesa: August, End of Month Report

College Park: 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.