Home Prices Post Gains At End of 2010

June Real Estate Mortgage News

What to say about mortgage rates?  Well, mortgage rates were little changed this week, which is actually a good thing, considering that the homebuyer tax credit expired recently. Starts on one-family homes fell 17 percent to an annualized pace of 468,000 units in May from April’s 20-month high. In addition, permits on one-unit homes fell to the slowest pace since May 2009. But, considering the expected downturn after the expiration of the tax credit, the market is holding stable.

Nonetheless, household balance sheets have been improving over the past four quarters. Basically, households gained $6.3 trillion in net worth in the first quarter from a year ago, according to the Federal Reserve. In addition, homeowners have regained $1.1 trillion in home equity over the same time period.  For homeowners, things are on moving in a positive direction.

Conforming Loan Limits ($417,000 and Under)

Loan Program            Interest Rate            Points

30 Year Fixed                  4.500%                           1.000

10/1 ARM                         4.250%                           1.000

5/1 ARM                           3.500%                           1.000

5/1 ARM I/O                   3.500%                           1.000

Jumbo Loan Limits ($729,751 and Over)

Loan Program            Interest Rate            Points

 

10/1 ARM                         5.250%                           1.000

7/1 ARM                           4.875%                           1.000

5/1 ARM                           4.250%                          1.000

Agency Jumbo Limits ($417,001 – $729,750)

Loan Program            Interest Rates            Point

30 Year Fixed                   4.750%                            1.000

Money Rates

M11                                      M21

10 Yr Bond                           3.18

Prime                                     3.25

6 Month Libor                     0.75188%

 

Market Conditions for Sunset Park in Santa Monica, California

The Sunset Park neighborhood of Santa Monica, which has approximately 2700 single family homes, has been a very active market in the past few months. There are only 23 homes currently available with an average amount of more than 100 days listed on the market.

As of the third week of May, there are currently 15 properties that are in escrow and under contract. And since March of this year there have been 19 homes that have sold and closed escrow.

This is a positive market indicator of a neighborhood that shows a high demand with a very limited inventory.

In this market, buyers are being much more meticulous with their searches.  They are definitely looking for value since longer term goals are much more of the focus. I am seeing properties selling with multiple offers and selling above their asking prices. It is evident that buyers only make offers if they perceive that the value is there and the property might not be available tomorrow.

 

California Home Sellers Turn to Realtors Even More Now

Sellers Respond to ’09 Housing Market by Choosing Realtors

According to the latest survey of home sellers by the California Association of Realtors,

Changes in family and employment status as well as adjustments to monthly mortgage obligations played significant roles in California’s homeowners’ decisions to sell their homes in 2009.

With home sellers facing ever-changing federal housing legislation and a tightening market,

Sellers responded to the challenges of the housing market in 2009 by choosing to work with realtors for guidance and assistance in navigating the complex market…Recognizing the value of working with a real estate professional, 99 percent of sellers chose to work with a realtor, according to the survey. Of those, 72 percent cited the ability of an agent to sell the home at a higher price point as the primary reason. Other reasons included better marketing and exposure (38 percent), while 28 percent reported it was too difficult to sell the home independently.

With the Santa Monica and Los Angeles housing market being one of the most complex in the nation, home sellers will be increasingly leaning on real estate professionals in the coming year.