Housing Starts and California Foreclosure Moratorium
VISALIA, CALIFORNIA - Yesterday, the State of California implemented a foreclosure moratorium delaying some lenders from foreclosing on homeowners. The California Foreclosure Prevention Act, signed into law in February, is effectively aimed at requiring banks and other lenders to modify existing mortgages rather than immediately foreclosing on homes without first trying to work with the homeowners. For a more complete story about this news you may be interested in reading an article here in the San Francisco Chronicle.
Additionally, new home construction in the U.S. has reportedly increased significantly more than anticipated in May. The commerce department stated housing starts were up 17% from the prior month and was higher than many economists had predicted. An article published today in Bloomberg has additional statistics and opinions about the suggestion that the real estate market has bottomed out.
Home Sales & Mortgage Rate Update - Visalia, CA
Equilibrium many be closer than some think. Homes are selling and the very best deals are reminiscent of 2004; they are listed on the MLS and in a matter of hours listings may receive multiple offers. Now of course these are predominantly the the nicest homes, in the nicest locations, that are below perceived market value and not necessarily in all cities or neighborhoods across the board, but this may be the first sign of the real estate cycle slowly entering it’s next upswing. When these choice homes (many of which are entry-level, REO’s or investment properties) are tougher to find and demand remains constant or even possibly increases, buyers simply broaden their search criteria and/or or bid higher until supply and demand once again come into equilibrium.
Some of the most positive recent news of buyers coming back to the market is news from DataQuick which states that an estimated 37,967 new and resale houses and condos were sold statewide here in California in April. Their news goes on to say that that was up 4.8 percent from 36,215 in March and up 21.9 percent from 31,150 in April 2008. Sales have increased on a year-over-year basis the last 10 months. California sales for the month of April have varied from a low of 27,625 in 1995 to a peak of 71,638 in 2004, while the average is 45,088 sales.
Locally, the Tulare County Association of REALTORs reported April 2009 sales of residential homes Read more
The Right Time to Buy Your First Home
There are many economic and market forecasts and predictions, however the bottom line is if you want to buy your first home—there is no wrong time. That is because the motivation to buy is not determined by regional market conditions or by location.
Industry opinions, economic reports and investor speculation do not sway or predict when a particular individual will be ready to buy. For the great majority of folks, the most compelling reasons to buy a home are based on individual circumstances and personal needs. Some of these factors are:
· Family needs and desires for children/parents/in-laws/couples
· Convenience to home, work, school, social activities
· Sense of achievement or fulfillment
· Freedom and independence
· Sense of security and privacy
Even though there are many changes in the market, both up and down—people still need and want to buy homes. This desire to buy a home is deeply rooted in the fabric of our national consciousness. The intrinsic value of homeownership—defined as worth based on perception of value–gives far more satisfaction than ROI calculators can quantify.
Today, there are many different loan programs with Read more
How a Home Warranty Can Protect You
Buying or selling a home involves making major decisions. It’s essential to make the right decisions in order to insure success. Whether selling or buying a new home, a home warranty can protect you. Investing in a home warranty is indeed one of the wisest decisions you will make regarding your real estate.
How can a home warranty protect you? Look at a home warranty the same as you would home insurance or car insurance. A home warranty is a form of protection offered to the homeowner and benefiting the buyer. There are so many things that can go wrong with a house, whether new or old. When viewing a piece of property many aspects are hidden such as electrical, plumbing, heating, etc. These are considered requirements for any real estate and often problems with these aspects can be overlooked. This is very unfortunate for the buyer since repairs may be needed immediately or soon after moving into their new home. Purchasing a new home is expensive enough, then there are furnishings, perhaps new appliances; the new owner does not want to be burdened with unexpected expensive repairs. A home warranty can eliminate any concerns regarding repairs for the potential buyer.
An individual selling a house has the option to purchase Read more
California Real Estate Cycle
As a Visalia, California resident now contemplating buying a home and in light of recent economic developments, there is no time like the present to be excited about finding a home. While inventory levels in central California have contracted in some locales, there is still a great deal of homes to choose from, some, fifty percent less expensive than just a few years ago. Many people probably do not realize it, but there are more homes being sold in certain areas now than during the hay days of 2003 through 2006. Interest rates have also now dropped to historic lows making mortgages more affordable. Possibly, even before we realize that the recession is ending and the housing crisis is over, the Fed may have to start inching those interest rates back up again to avoid pending inflation by this loose monetary policy of theirs. Also last week, a new mortgage reform bill was introduced on capitol hill that should be good for the industry over the long term, but could take away certain mortgage loan options and make obtaining a loan even more difficult than it already has recently become.
Will Tulare County Mortgage Rates Drop To 4.5%?
Interest rates can be confusing to many people I speak with and it’s no wonder with all the different sources reporting. Day in and day out we hear various sound bites regarding “interest rates” in the news, but many people are unclear about which rates affect them personally and or how. As you may have heard in the news or according to a December 4th article in the Wall Street Journal, the Treasury Department is considering a plan to push down 30 year fixed rate mortgages to 4.5%. To make a long story short, it may or may not actually happen and if it does it will most likely not apply to refinancing a home or adjustable rate mortgages. I personally feel that if it does happen, it will not last very long at all.
Most Interest rates here in the United States are based upon the federal funds rate which is set by the Federal Open Market Committee. The federal funds rate (current target of 1%)
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