November 2017 Home Sales Rise

November 2017 Home Sales Rise

Both new and existing single-family home sales went up in November. The National Association of Home Builders (NAHB) said this week that sales of new homes increased 17.5% to a seasonally adjusted annual rate of 733,000 units and the existing home sales rose just .2% according to newly released data from the National Association of Realtors® (NAR) (more…)

REALTORS®, Home Builders and Affordable Housing Advocates Rally Together to Denounce Federal Tax Reform Plan That Would Hurt Middle-Class Californians

REALTORS®, Home Builders and Affordable Housing Advocates Rally Together to Denounce Federal Tax Reform Plan That Would Hurt Middle-Class Californians

Groups Unveil Full Page Open Letter to President Trump and the California Congressional Delegation Urging Them to Protect Homeownership

(Source: CAR) –  SACRAMENTO — The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.), together with members of California’s homebuilding and housing community, including the California Building Industry Association and the California Housing Consortium, this week sent an open letter to President Trump and the California Congressional Delegation stating that Californians would be hurt significantly by the current tax reform plan. (more…)

Homeowners: Great Time to Sell, But Not to Buy and Here’s Why

Homeowners: Great Time to Sell, But Not to Buy and Here’s Why

(Source: Value Insured) DALLAS –  It’s a seller’s market thanks to low inventory, but according to ValueInsured’s latest quarterly Modern Homebuyer Survey, many would-be sellers are hesitating to sell because of the high price they’d have to pay for their next home.

The survey, released today, found that 79 percent of homeowners believe now is a good time to sell a home. Two-thirds of homeowners are interested in actually selling their home “in the near future,” up 8 percentage points from last quarter. (more…)

Home Prices Boom 10 Years After Housing Crisis

Home Prices Boom 10 Years After Housing Crisis

(Source: Realtor.com) – Home prices have returned to the boom levels of a decade ago — which foreshadowed the bursting of the real estate “bubble” and the onset of The Great Recession — but today’s housing market is starkly different, according to data released today from realtor.com®, a leading online real estate destination. Backed by tighter lending standards and more solid economic fundamentals, current price appreciation is being driven by strong supply-and-demand dynamics with no signs of boom era flipping or over-construction. (more…)

Los Angeles, California Leads the Nation for the Least Affordable Real Estate

Los Angeles, California Leads the Nation for the Least Affordable Real Estate

California is truly the Golden State when it comes to real estate. With the nation’s best weather and the sixth largest economy in the world, many people from all around the world want to live the California Dream.

Unfortunately, the result of the overreaching demand for affordable housing and lack of supply is causing housing prices to skyrocket. A dream that has now morphed into a real estate nightmare for many Californians such as myself. (more…)

Lack of Housing Supply Hurting First Time Homebuyers

Lack of Housing Supply Hurting First Time Homebuyers

Across the nation, first-time homebuyers who are coming out in droves looking for their piece of the American Dream are finding out quickly that there are slim pickings when it comes to affordable housing for sale.

In May, Glenn Kelman, the CEO of Redfin Real Estate had decried, “Record-low housing inventory is ‘freaking us out’!

He told CNBC, “The inventory is reaching historic lows. It’s never declined faster than it did last month. It’s freaking us out — it’s affecting our business; it’s limiting our sales. We’re going to be fine in terms of market share, but I think the overall industry for the first time is seeing sales volume really limited by the inventory crunch.”

This past June, Lawrence Yun, the National Association of Realtors (NAR) chief economist declared, “Housing shortages look to intensify and may well turn into a housing emergency if the discrepancy between housing demand and housing supply widens further. The falling housing starts and housing permits in May are befuddling given the lack of homes for sale and the quick pace of selling a newly-constructed homes.”

Youn further stated, “Meanwhile, job creations of a consistent 2 million a year will push up housing demand further. One thing that’s moving up is the housing costs for consumers: higher home prices and higher rents.”

A recent report from National Association of Realtors (NAR ) had analyzed the causes and effects of the current lack of real estate inventory showing that supply constraints at the lower end of the market are a big part of the reason why many first-time buyers simply cannot locate a home in their local price range. (more…)

Washington State Home Buyer Program

Washington State Home Buyer Program

Washington home buyers have a great way to purchase a property at a good mortgage interest rate through the Home Advantage Program offered by the Washington State Housing Finance Commission.

The program utilizes a 30-year mortgage, and downpayment assistance up to 4% of the first loan amount. Qualified applicants can purchase a single family home, town home, condominium, and in some cases, a manufactured home. (more…)

Should you buy, lease or rent to own a home?

Should you buy, lease or rent to own a home?

A lease-to-own agreement, also known as a rent-to-own home purchase or simply lease purchase is a lease that comes with an option to buy the property before the end of an agreed period of time (in many cases tow to three years or less) at an agreed price.

These kind of arrangements have become pretty common in the post- mortgage and real estate crisis market as low and middle-income buyers are having a tougher time qualifying for a mortgage.

As much as lease-to-own contracts can be structured to benefit both the seller and the buyer, it should be taken into account that they can also be designed to substantially favor one party. Buyers especially need to be more prudent before signing these contracts as they usually know less about the markets and can be easily taken advantage of by home sellers. (more…)

Should I buy a home now or wait until next year?

Should I buy a home now or wait until next year?

The cost of homeownership depends on the price and condition of the home and the interest rate you pay for your mortgage loan.  A small increase or decrease of .25% (quarter percent) on you rate could mean the difference between saving or paying thousands of dollars every year and a lot more over the life of the loan.

Mortgage rates are currently still at all-time lows and have been for the last several years. However, they are expected to go higher in 2016 and into 2017. Fannie Mae has predicted rates to be above 4% in 2016 and climb to 4.2% in 2017. Freddie Mac and the Mortgage Bankers Association (MBA) have similar forecasts for 2016, However, both agencies have said that rates may go as high as 5.1% in 2017.

Making the decision to buy this year or next year is not something you should take lightly. Timing is everything when it comes to investments. Here is a simple infograph that details how predicted rates can make the cost of owning a home much more next year than this year.

Should I buy a home now

 

Lack of Housing for 7.2 Million of Lowest Income Renters

Lack of Housing for 7.2 Million of Lowest Income Renters

(Source: NLIHC) WASHINGTON, D.C. – The Gap: The Affordable Housing Gap Analysis 2016, a new report released today tight housing creditby the National Low Income Housing Coalition (NLIHC), paints a bleak picture of the nation’s growing affordable housing crisis. The reports finds that there is a shortage of 7.2 million affordable and available rental units for America’s 10.4 million extremely low income (ELI) renter households, those in the bottom 30% of income in their communities.1 (more…)

New NAR Studys Shows Massive Buyer Demand for More Single-family Home Construction

New NAR Studys Shows Massive Buyer Demand for More Single-family Home Construction

More than 75 percent of homeowners would buy a single-family home if they were moving in the next three months, according to a new-home-construction-companynew survey by the National Association of Realtors (NAR). Moreover, a massive 79 percent of people who are renting would purchase a property outside of an urban area.

The NAR carried out the research in their quarterly consumer survey, which also revealed that the number of renters who feel confident buying a property has decreased, especially in the western states where house prices have improved. (more…)

Fannie Mae to Dispel the Myths of Homebuying with Flash Card

Fannie Mae to Dispel the Myths of Homebuying with Flash Card

Fannie Mae is looking to educate home buyers online by dispelling the myths about buying their first home with a new flashcard.

For example, many people are still under the assumption that you still need a 20% down payment to purchase a home. This is false because there are quite a few mortgage programs that allow homebuyers to put as low as 3.5% for an FHA loan and 5% for a conforming loan.

Here is the Fannie Mae Dispel the Myths Spring Homebuying Flash Card:

Fannie Mae homebuying flashcard

 

New Zero Down Mortgage: PoppyLoan

New Zero Down Mortgage: PoppyLoan

It looks like zero down mortgages are starting to make a slow comeback. Well, at least in cash strapped San Francisco, California, where the average household median income is $104,879, and the average median price for a home is a whopping $1.1 million.

The average income here, coupled with the high price of housing in San Francisco, leaves little cash left over to buy a home, let alone a cup of coffee. I assume that’s why the San Francisco Federal Credit Union (SFFCU) came up with the PoppyLoan to help the cash poor community buy a home.

zero down poppy-loan (more…)

Fannie Mae HomeReady Updates for 2016

Fannie Mae HomeReady Updates for 2016

Fannie Mae HomeReady is a new program that was released recently to allow low to moderate income borrowers with expanded eligibility for financing homes in designated low-income, minority and disaster impacted communities.

This program allows up to 97% financing on 1-unit purchases (only 3% down) and there is also no minimum borrower contribution. You’re able to use gifts from family members, grants and cash-on-hand to use towards the down payment.

fannie mae homeready

There are some key points that stand out within this program that aren’t similar to a typical conventional loan. I’ll explain a few of those below:
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