orange county california real estate: The Supply Of Available New Homes Just Plummeted - 05/28/10 06:19 AM
The supply of newly-built homes for sales plummeted in April, a positive indicator for the South Orange County housing market as we head into the summer months.
It's no wonder that homebuilders are breaking new ground at the fastest clip in 2 years. 
At the current sales pace, the nation's complete supply of new homes would be sold in just 5 month's time.  That's more than double the pace of a year ago.
Also, as more good news, in terms of total housing units, the government reports that New Home Sales topped one half-million homes sold for the first time since … (1 comments)

orange county california real estate: Should You Refinance Your Mortgage? - 05/27/10 12:10 PM

Because of strife in Greece, Spain and North Korea, conforming mortgage rates are back to all-time lows. They're at levels not seen in 50 years.  For homeowners that missed the Refi Boom of November 2009, it's a second chance.
In this well-presented, 3-minute video from NBC's The Today Show, you'll get tips getting low rates and choosing the best time to lock in.
Some of the topics covered include:
Why were the experts wrong about rates moving higher this summer? How much money can you save with a 1 point drop in your interest rate? Should you buy a bigger … (1 comments)

orange county california real estate: Home Supplies Tick Higher, Creating An Opening For Today’s Home Buyers - 05/25/10 05:46 AM
Sales of existing homes rose in April, buoyed by an expiring home buyer tax credit and exceptionally low mortgage rates. As compared to March, April's Existing Home Sales rose by 410,000 units nationwide -- the second straight month of large gains. An "existing home" is a home resold by a prior owner (i.e. not new construction). It's a solid report for housing overall, with rising sales suggesting that the real estate market's recovery is ongoing. However, the data presented a mixed message. According to the National Association of Realtors®, although the number of homes sold ticked higher in April, so did … (0 comments)

orange county california real estate: More Homeowners Can Refinance as Rates Fall While Values Nudge Upward - 05/23/10 01:03 PM
While the demand for mortgage loans to purchase a new home has declined following the expiration of the home buyer tax credit, mortgage applications overall, increased last week as home owners looked to refinance. Mortgage rates have reached their lowest levels since March and many homeowners are looking to refinance their mortgage loans. While falling home prices have reduced the popularity of refinancing to tap into home equity, low mortgage rates have drawn the attention of borrowers looking to reduce their interest payments. The Mortgage Bankers Association reported an increase in the number of applications for mortgage loans. The first week … (0 comments)

orange county california real estate: Best April for Orange County homebuying in 3 years - 05/18/10 12:03 PM
DataQuick’s homebuying stats for April are out, and they show a real estate market still on the mend with sales of all residences of 2,669 — that’s up 11.60% in a year and the best April in 3 years. Median selling price was $430,000 — up 13.2% in a year. Also …
Slice Price Yr. ago Sales Yr. ago Houses $505,000 +17.4% 1,704 +9.7% Condos $299,000 +16.6% 877 +18.7% New $629,500 +32.8% 88 -11.1% All O.C. $430,000 +13.2% 2,669 +11.6%
$430,000 median selling price that is still 33% below June 2007’s peak of $645,000. The most recent median is 16% … (0 comments)

orange county california real estate: Loan modifications and short sales are gaining traction in California - 05/16/10 03:59 PM
 
 
ForeclosureRadar: Cancellations up 174% year-over-year Foreclosure cancellations in California skyrocketed 174 percent year-over-year in April, according to a report by foreclosure data company ForeclosureRadar.
At the same time, foreclosure filings in the Golden State fell month-to-month for the first time since January. Notices of default fell 41.2 percent year-over-year and 16 percent month-to-month, while notices of trustee sale were down 3.1 percent year-over-year and 10.3 percent month-to-month.
Cancellations jumped 11.4 percent month-to-month and 174.4 percent since April 2009.
“The steady rise in cancellations leads us to believe that loan modifications and short sales are gaining traction,” said Sean O’Toole, … (1 comments)

orange county california real estate: Markets Ignore The April Jobs Report And That’s Good News For Mortgage Rates - 05/07/10 07:12 AM
 
On the first Friday of every month, the U.S. government releases its Non-Farm Payrolls report. 
More commonly called "the jobs report", Non-Farm Payrolls is a major market mover. The number of working Americans is directly tied to the health of the economy which, in turn, drives the stock and bond markets.
In general, when jobs numbers improve, it's good for stocks and bad for mortgage bonds. It follows, therefore, that conforming mortgage rates in California rise because rates always move opposite of mortgage bond prices.
Conversely, when jobs numbers worsen, it tends to be bad for stocks and good for … (0 comments)

orange county california real estate: Why the predicted "Wave of Foreclosures" may just be a ripple - 05/06/10 06:13 PM
There is an interesting phenomenon going on, even while doom & gloom bloggers predict gigantic Tsunami's of foreclosures heading our way. The following is excerpted from an article out of Texas this week.
"Every week, new home sellers are hitting the market, basing their initial asking prices on recent contracts, sales, and other active listings, and influencing active market prices.  And what does this have to do with foreclosures?  It provides a glimpse into housing market psychology.
Homeowner Henry down in Texas is underwater in his mortgage, or at a minimum, feels some personal economic strain.  He's trying to determine if he's … (5 comments)

orange county california real estate: What's Ahead For Mortgage Rates This Week : April 26, 2010 - 04/26/10 04:44 AM
Mortgage markets worsened last week in see-saw trading. By the time Friday's market closed, mortgage rates were higher across the board -- ARMs, fixed rates, FHA and conventional.
The biggest stories of last week were actually non-stories. 
First, the ash cloud from Iceland’s Eyjafjallajökull volcano dissipated, allowing warehouses to move inventory, airlines to move people, and businesses to move product.  In addition, Greece moved closer to securing emergency funding that will help it stave off default.
When these two issues were threats earlier in the month, mortgage bonds rallied on safe haven buying, driving rates down. As the threats lessened over … (0 comments)

orange county california real estate: How Iceland's Volcanoes Are Helping Mortgage Rates Fall - 04/21/10 02:24 AM
 
Mortgage rates and home affordability have improved lately, thanks to an unlikely ally -- Mother Nature.
In the 7 days since Iceland's Eyjafjallajökull erupted, ash clouds have grounded planes, disrupted businesses, and stranded exports in warehouses worldwide.
It's a drag on commerce that's spilled over onto Wall Street. As experts debate the potential for future seismic activity, traders are taking some of their investment risk off the table. 
In trading circles, it's called "safe haven buying". When the market gets cloudy, investors often move their cash into relatively safe assets.  This includes government-backed securities -- mortgage-bonds among them.
Demand for … (1 comments)

orange county california real estate: California homeowner defaults down 40% - 04/20/10 01:25 PM
California homeowner defaults down 40%
April 20, 2010, by Jeff Collins, O. C. Register
More evidence surfaced today that home-loan defaults and foreclosures are receding from historic peaks seen a year ago. However, the pace of defaults and foreclosures remain high, especially in areas where lower-cost homes predominate.MDA DataQuick reported that lenders filed 81,054 notices of default in California during the first quarter of 2010, down 4.2% from the previous quarter and down 40.2% from the first quarter of 2009.
DataQuick’s analysis shows that the greatest year-over-year declines occurred in areas with cheaper homes, with smaller declines occurred in pricier areas.“We … (0 comments)

orange county california real estate: The O. C. Market Report – This Market is Taxing! - 04/20/10 04:55 AM
Below is the latest Orange County Market Report from my friend Steven Thomas, the President of Altera Real Estate. Steven’s reports are cited and discussed in most of Southern California’s media, as an authoritative source of local real estate information. I have slightly altered his report to make it a bit easier to read, but the context and content remains true to Steven’s report.
“The Orange County Market Report – This Market is Taxing!
Talk to an Orange County buyer, especially a first time home buyer, and you will quickly find that the real estate market is simply crazy. 
Let’s first … (0 comments)

orange county california real estate: Housing Starts Data Hints That Housing Will Expand Even After The Tax Credit Expires - 04/20/10 03:43 AM
After a strong March showing and a surprise upward-revision for February, Housing Starts are, once again, trending better.
It's yet another signal that the housing market nationwide is stabilized.
A Housing Start is a new home on which construction has started and, over the last 6 months, home builders are averaging one half-million starts per month.
This marks the highest 6-month average since 2008 and a reading one-fifth percent better from 12 months ago.  Revisions to prior data have all been higher, too.
Even more interesting, though, is that the number of newly-issued building permits is exploding. Permits were up more … (2 comments)

orange county california real estate: It May Be A Good Time To Look At Adjustable Rate Mortgages - 04/19/10 06:03 PM
Each week, government-led Freddie Mac publishes a weekly mortgage rate survey based on data from 125 banks across the country.  According to this week's results, the relative rate of a 5-year ARM is extremely low versus its 30-year fixed-rate cousin.
Consider this comparison:
In April 2009, the two products ran neck-and-neck with respect to rates In April 2010, the two products are split by 0.99 percent On a $200,000 home loan, that's a difference of $117 per month to a mortgage payment.
Adjustable-rate mortgages aren't suitable for everyone, but they can be a terrific fit given your individual circumstance.  For example, … (2 comments)

orange county california real estate: What's Ahead For Mortgage Rates This Week : April 19, 2010 - 04/19/10 05:45 PM
 
Mortgage markets improved last week for the second week in a row.  And, also for the second week in a row, rates were down on "safe haven" buying -- just not for the same safe haven reasons as before.
If you'll remember, safe haven buying is when investors sense market risk, then move money toward less risky investments.
Well, because the U.S. government backs the bonds of Fannie Mae and Freddie Mac, mortgage bonds tend to fit the "less risky" description and as Iceland's volcanoes shut down air traffic in Europe, mortgage bonds benefited.
That was early in the week.
… (2 comments)

orange county california real estate: How To Buy Distressed Properties In A Period Of Rising Inventory - 04/15/10 03:12 AM
 
Foreclosure filings rose close to 20 percent nationwide last month versus February, according to foreclosure-tracking firm RealtyTrac.com, and for the 13th straight month, total filings topped 300,000.
In addition, bank repossessions reached an all-time, quarterly record. Through the first three months of 2010, banks reclaimed more than 257,000 homes.
Nonetheless, 4 states dominated foreclosure activity nationwide.
California, Florida, Arizona and Georgia accounted for more than half of all bank repossessions. It's a disproportionate distribution of foreclosures. Together, the 4 states represent just 23 percent of the overall U.S. population.
The RealtyTrac report revealed some other interesting statistics, too.
Foreclosure activity … (0 comments)

orange county california real estate: Why You Shouldn't Schedule Your Closing For May 28, 2010 - 04/14/10 02:31 AM
 
The federal home buyer tax credit expires April 30 and the deadline is sparking a home sale surge. It figures to burden real estate, mortgage and title offices nationwide over the next 60 days so plan your closing date accordingly.
Especially because the last Friday in May is the Friday before Memorial Day.
Now, if the connection between the tax credit and Memorial Day is not immediately clear, think of your own office on a 3-day weekend's Friday. Some of your colleagues take a half-day at work, others take the entire day off.
Office-wide, productivity drops.
The same is true in … (1 comments)

orange county california real estate: Home Renovations That Increase Your Resale Value (2010 Edition) - 04/14/10 02:00 AM
Not all home improvements are created equal. Especially if you're looking for "resale value" back from your work.
An article from the Wall Street Journal lays it out cleanly. Function beats flash these days so be wary of where you spend.
Environmental upgrades such as home insulation and energy-efficient steel entry doors are recovering a much greater percentage of their cost these days than major remodels including kitchens or bathrooms.  This is especially true for homes that are already "over-improved" relative to the neighborhood.
Upgrading the biggest and best homes on the block can be a losing proposition.
The article's findings … (4 comments)

orange county california real estate: What's Ahead For Mortgage Rates This Week : April 12, 2010 - 04/12/10 03:08 AM
 
Mortgage markets improved last week to the delight of rate shoppers.
Against a sparse economic calendar, Wall Street turned its attention to geopolitics in Greece and the Eurozone.  It didn't like what it saw. Safe haven buying buoyed mortgage bond markets last week as pricing recaptured two-thirds of its monumental losses from the week prior.
Despite last week's surge, however, conforming and FHA mortgage rates remain near their worst levels of the year and appear poised to increase throughout the summer months.
The U.S. economy is improving. From last week:
Pending Home Sales posted a strong monthly improvement Wholesale Trade … (0 comments)

orange county california real estate: Is It Time To Re-Approve Your Pre-Approval? - 04/09/10 07:16 AM
 
As the federal home buyer tax credit nears its April 30 end-date, there's a lot of would-be home buyers still working to get under contract.
A piece of advice for all of them : If your pre-qualification and/or pre-approval letter is more than 8 weeks old, it would be prudent to have your lender "re-pre-approve" you.  Mortgage guidelines have been in flux and your original lender letter may now be invalid.
For example, over the past half-dozen months, the majority of mortgage lenders have reduced their risk tolerance with respect to:
Maximum debt-to-income ratios Minimum allowable credit scores Calculation of … (0 comments)