Category Archives: FULLERTON HOMES

10% Jump in September Existing Home Sales


Daily Real Estate News  |  October 25, 2010  |  

10% Jump in September Existing-Home Sales
Existing-home sales rose again in September, affirming that a sales recovery has begun, according to the National Association of REALTORS®.

Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums, and co-ops, rose 10 percent to a seasonally adjusted annual rate of 4.53 million in September from a downwardly revised 4.12 million in August, but remain 19.1 percent below the 5.60 million-unit pace in September 2009 when first-time buyers were ramping up in advance of the initial deadline for the tax credit last November.

Lawrence Yun, NAR chief economist, said the housing market is in the early stages of recovery. “A housing recovery is taking place but will be choppy at times depending on the duration and impact of a foreclosure moratorium. But the overall direction should be a gradual rising trend in home sales with buyers responding to historically low mortgage interest rates and very favorable affordability conditions,” he said.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.35 percent in September from 4.43 percent in August; the rate was 5.06 percent in September 2009.

The national median existing-home price for all housing types was $171,700 in September, which is 2.4 percent below a year ago. Distressed homes accounted for 35 percent of sales in September compared with 34 percent in August; they were 29 percent in September 2009.

NAR President Vicki Cox Golder said opportunities abound in the current market. “A decade ago, mortgage rates were almost double what they are today, and they’re about one-and-a-half percentage points lower than the peak of the housing boom in 2005,” she said. “In addition, home prices are running about 22 percent less than five years ago when they were bid up by the biggest housing rush on record.”

To illustrate the jump in housing affordability, the median monthly mortgage payment for a recently purchased home is several hundred dollars less than it was five years ago. “In fact, the median monthly mortgage payment in many areas is less than people are paying for rent,” Golder said.

Housing affordability conditions today are 60 percentage points higher than during the housing boom, so it has become a very strong buyers’ market, especially for families with long-term plans. “The savings today’s buyers are receiving are not a one-time benefit. Buyers with fixed-rate mortgages will save money every year they are living in their home – this is truly an example of how home ownership builds wealth over the long term,” Golder added.

Total housing inventory at the end of September fell 1.9 percent to 4.04 million existing homes available for sale, which represents a 10.7-month supply at the current sales pace, down from a 12-month supply in August. Raw unsold inventory is 11.7 percent below the record of 4.58 million in July 2008.

“Vacant homes and homes where mortgages have not been paid for an extended number of months need to be cleared from the market as quickly as possible, with a new set of buyers helping the recovery along a healthy path,” Yun said. “Inventory remains elevated and continues to favor buyers over sellers. A normal seasonal decline in inventory is expected through the upcoming months.”

A parallel NAR practitioner survey shows first-time buyers purchased 32 percent of homes in September, almost unchanged from 31 percent in August. Investors were at an 18 percent market share in September, down from 21 percent in August; the balance of purchases were by repeat buyers. All-cash sales were at 29 percent in September compared with 28 percent in August.

Single-family home sales increased 10 percent to a seasonally adjusted annual rate of 3.97 million in September from a pace of 3.61 million in August, but are 19.5 percent below the 4.93 million level in September 2009. The median existing single-family home price was $172,600 in September, down 1.9 percent from a year ago.

Existing condominium and co-op sales rose 9.8 percent to a seasonally adjusted annual rate of 560,000 in September from 510,000 in August, but are 16.2 percent lower than the 668,000-unit level one year ago. The median existing condo price was $165,400 in September, down 6.2 percent from September 2009.

Existing-home sales by region:

Northeast increased 10.1 percent to an annual pace of 760,000 in September but are 20.8 percent below September 2009. The median price in the Northeast was $239,200, which is 1.4 percent below a year ago.

Midwest jumped 14.5 percent in September to a level of 950,000 but are 26.4 percent below a year ago. The median price in the Midwest was $139,700, down 5.2 percent from September 2009.

South sales rose 10.6 percent to an annual pace of 1.77 million in September but are 14.9 percent lower than September 2009. The median price in the South was $149,500, down 2.6 percent from a year ago.

West increased 5.0 percent to an annual level of 1.05 million in September but are 16.7 percent below a year ago. The median price in the West was $213,600, which is 4.9 percent lower than September 2009.

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Article from NAR Apples and; Oranges: Misleading data


October 26, 2010

By NAR Research

Each month NAR releases the latest reading on existing-home sales, median prices and inventories. As one of the most closely followed barometers of the real estate economy, there is considerable news coverage in print and on the major cable and broadcast channels. Data can be surprising, especially when it differs from what is expected by the legion of analysts who follow the real estate markets. These surprises, when they occur, lead to more intense media coverage than usual.

At times, this coverage can be somewhat perplexing, especially when there are “apples to oranges” comparisons. In the latest instance, September existing-home sales rose 10 percent compared with August, but were down 19.1 percent compared to the same month one year earlier. In one example, a newspaper headline touted the month-to-month rise in national home sales, but gave a much more subdued–one could even say grim–view of local conditions using data comparisons on a year-to-year basis. In another example, the news coverage raises the stakes by putting the latest data in terms of the largest increase or decrease, or in terms of record high or low. While these statements are usually factually accurate, they often miss the point by not putting the latest data point in full context. A record low may imply that there has been a large decrease or, alternatively, if the data is volatile, it may be part of a noisy trend, where month-to-month comparisons are less informative. Such statistical confusion, while likely done with no negative intent, adds to the mixed messages that consumers are seeing when they pick up a newspaper or tune in to the evening news.

The next time you see a headline that grabs your attention take a moment to make sure that everything adds up.


Homeownership Benefits


Benefits of Long Term Homeownership

Every financial decision you make may greatly impact you and your family for a long time perhaps your lifetime. Would it help to know that when you buy a home, you would probably end up living in a house for free after about 10 years? How? That it is better to be paying down your own loan instead of your landlord’s loan. Read the rest of this article for answers.

The vast benefits of Homeownership.

Children

  • Children do better in school and later in life that are brought up in a home that is owned by their parents or guardian. Children of homeowners score better on school test.
  • Achieve more in life.
  • Higher economic ability to earn more in their lifetime.
  • Homeownership benefits neighborhoods, providing economic and social media. Homeowners are more likely to participate in local organizations, and homeownership in distressed communities raises neighborhood property values by a significant amount.
  • Homeowner’s state there is more satisfaction in owning your own home.
  • Do better on school achievement tests, graduate at a higher rate, have fewer behavioral problems, and enjoy a better social environment living in an owned home.
  • They score 9% higher on math test, and about 7% higher scores for reading.
  • Children of owned home are more likely to graduate from college by 166% and postsecondary achievement by 25% higher.
  • Children living in owned homes have fewer behavioral problems than those children living in rented homes.
  • Once in a career children of owned homes are less likely to rely on welfare.
  • Quality home environment yields a 13 to 23% higher both physically and emotionally.
  • Renters’ children experience an average poverty rate of 24%, compared with 18% for homeowners’ children do.
  • Children of homeowners are 59% more often home owners themselves.

 

Home Ownership benefits you & the Economy

  • Homeownership is a great economic stimulus in every level of society.
  • Mortgage tax deduction.
  • Equity factor; retirement
  • Fund children’s’ college tuition using your home as a leverage.
  • Home equity is one of the largest sources of collateral for bank loans; starts new business.
  • Three times more likely to own a business as renters.

Neighborhood benefits

  • Larger benefit to landlords as residence because a high rate of homeownership creates positive social benefits.
  • Homeowners are willing to pay more for home in a neighborhood with a higher homeowner rate.

Homeowners v. Renters

Overall Voter Participation 25 percent higher

Ability to Identify Congress Member 10 percent higher

Ability to Identify School Board Head 9 percent higher

Voter Participation in Local Elections 15 percent higher

Work to Solve Local Problems 6 percent higher

Garden 12 percent higher

Contribute to Church $150 more per year

Members of Non-Profession Organizations .25 more

For more information on these studies please contact author of this article.

Foot note: (Harkness and Newman 2003). (Haurin, Parcel, Haurin 2000). (Coulson, Hwang, and Imai 2003).

Link to Graph of home ownership trends by the DRE:  http://bit.ly/9g5O1D


COUPON FOR $500.00 TOWARD ESCROW FEES


Ask for a coupon to get $500.00 off of your escrow fees when you buy or Sell a home with Renee Baccaro (Lic. 01718366) of Prudential California Realty and Team: The Real Estate Geeks. We have sold over 50 homes a year which includes over % Short Sales. Call or email us to get more information on listing your home, or buying a home.

One per famly/person/escrow only. Expires 12/31/2010

Renee Baccaro Realtor

(562) 972-9886 cell (no soliciting – will report)

webs: www.goaskrenee.com, www.reneebaccaro.com, www.retalkblog.com

Email: reneebaccaro@gmail.com


Raising consciousness in business links


Economics acording the the Vedic way link: http://bit.ly/9iJDZO

Deepak Chopra’s (and other Spiritual Teachers), word on being Spiritual in Business: http://www.tomzender.com/?p=425

I hope you enjoy these!

Sincerley,

Renee Baccaro


News in real estate The good,bad, and not so bad…


*

Irvine woman sues over loan modification ‘hoax’

Posted on 18 September 2010

An Irvine homeowner is suing a large national mortgage servicing company, saying they perpetrated a “loan modification hoax” and committed fraud by promising but never granting her a permanent home loan modification..Jean C. Wilcox, who also is a… View full post on The Orange County Register – News Headlines : City Pages

read the rest of the story at: http://bit.ly/bg0yri

*Fullerton Market still has their Farmer Market with music till the last thursday in October!

*GOOD NEWS POPPY’S OWNER HAS BEEN FOUND

*Stocks edge higher on positive tech earnings news

http://bit.ly/9Rk2kU   F.L.O.W. for the love of water. Continue reading


End of Summer Buyer Slow-Down


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The end of the summer usually brings a slow down of buyers for all of the obvious reasons; The new school year preparation; last week to take a family vacation; The idea of moving in a hot September is too much to handle; and of course the big one Will the prices of homes come down even MORE that they already have?  Of course no one really know the answer to that last question…really! What we do know for certain is that the interest rates are in the 4 percent range and they will not stay there for ever. It takes time to get a pre approval these days because it is much more detailed than in the past. In that amount of time you could lose a point. If you are going to purchase a home in the next few months and wish to have a cozy situated home for Holidays…then now is the time to do so. When no one else is out there and you have your pick of the surplus homes just waiting for the right buyer. This of course will give you buying POWER in your negotiations. Give me a call and let’s get this show on the road! I know the bank owned asset managers are giving larger closing costs to get homes off their books. They realize they do not have the power they had at the beginning of summer.