Tag Archives: Homes

California Home Values Up 19.7% in 2013

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Home prices made double-digit gains in 2013, posting the highest annual rate of increase since 2005, according to CoreLogic’s latest housing report, released Tuesday. Ten states and the District of Columbia reached new all-time price peaks last year.

“We expect the rising prices to attract more sellers, unlocking this pent-up supply, which will have a moderating effect on prices in 2014,” says Mark Fleming, chief economist for CoreLogic.

CoreLogic’s latest report echoed an earlier report from the National Association of REALTORS® that showed a strong gain in home prices in 2013. The median sales price for all of 2013 was $197,100 in December, 11.5 percent above the 2012 median price, according to the National Association of REALTORS®’ December existing-home sales report.

But CoreLogic’s report showed that home prices have eased slightly the last three months. Home prices dropped by 0.1 percent from November to December, and the year-over-year price increase has slowed, the report says. CoreLogic’s report does not adjust for seasonal patterns.

Nevertheless, “the healthy and broad-based gains in home prices in 2013 help set the stage for the continued recovery in the housing sector in 2014,” says Anand Nallathambi, president and CEO of CoreLogic. “After six years of fits and starts, we can now see a clearer path to a durable recovery in single-family residential housing across most of the U.S.”

The following states had the highest home-price appreciation, including distressed sales, according to CoreLogic:

  • Nevada: 23.9%
  • California: 19.7%
  • Michigan: 14%
  • Oregon: 13.7%
  • Georgia: 12.8%

For more information on home values in your specific neighborhood or to get your home’s value click here

Source = Realtor Magazine

11 Reasons to List Your Home During the Holidays

1. People who look for a home during the Holidays are more serious buyers!
2. Serious buyers have fewer houses to choose from during the Holidays and less competition means more money for you!
3. Since the supply of listings will dramatically increase in January, there will be less demand for your particular home! Less demand means less money for you!
4. Houses show better when decorated for the Holidays!
5. Buyers are more emotional during the Holidays, so they are more likely to pay your price!
6. Buyers have more time to look for a home during the Holidays than they do during a working week!
7. Some people must buy before the end of the year for tax reasons!
8. January is traditionally the month for employees to begin new jobs. Since transferees cannot wait until Spring to buy, you must be on the market now to capture that market!
9. You can still be on the market, but you have the option to restrict showings during the six or seven days during the Holidays!
10. You can sell now for more money and we will provide for a delayed closing or extended occupancy until early next year!
11. By selling now, you may have an opportunity to be a non-contingent buyer during the Spring, when many more houses are on the market. This may allow you to sell high and buy low!

Sold Home For Sale

Dustin Wise “The Wise Team”

Keller Williams Realty

http://www.ILoveSoCalHomes.com

Dustin@TheWiseTeamOC.com

(714)875-3667 call/text

Lic # 01520106

 

Contributed by:

Lance Indes – Prominent Escrow Services

3 Pointed Drive

Brea, CA 92821

(714) 494-2700

Median Price for Buena Park Homes up 14%

The median sales price for homes in Buena Park CA for Aug 13 to Nov 13 was $433,750. This represents an increase of 1.1%, or $4,750, compared to the prior quarter and an increase of 14.1% compared to the prior year. Sales prices have appreciated 19% over the last 5 years in Buena Park.

The average listing price for Buena Park homes for sale on Trulia was $515,924 for the week ending Nov 06, which represents an increase of 0.4%, or $2,221, compared to the prior week and an increase of 3.3%, or $16,480, compared to the week ending Oct 16. Average price per square foot for Buena Park CA was $326, an increase of 19% compared to the same period last year.

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Source = Trulia Real Estate

Rising Prices Urge Move Up Buyers To Consider Selling Now

Real estate is always a game of knowing when to make your move.

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With that in mind, industry experts suggest move-up buyers remain mindful of how quickly home prices appreciate while riding the current market recovery.

For move-up buyers wanting to wait out rising home prices to ensure they can sell their current home at a maximum price, analysts say the value of such a move depends on when the homeowner purchased their current residence.

Daren Blomquist, vice president of RealtyTrac, says homeowners who purchased during the down market of the last two or three years would be wise to move up in 2013.

“Because they bought near the bottom, these homeowners should have built up some good equity that can go toward the purchase of a new home, and waiting longer to build more equity likely won’t provide much advantage given that other homes that they might want to move up to will also be appreciating at roughly the same pace,” said Blomquist.

He added, “In addition, the low interest rates of 2013 are certainly not guaranteed to last forever.”

According to data from the Mortgage Bankers Association, mortgage rates are expected to reach 4.4% in the next 12 months and the 20-year average could possibly hit as high as 6.5%.

Real estate broker Redfin says this is precisely the reason why some homeowners wanting to sell their current home in lieu of finding a nicer one should not wait.

While waiting a few years will most likely mean the selling price of the current home will be higher, it also means the price of the new home will rise as well.

“If you’re selling one house just to move up to another, it does you no good to wait for prices to rise — the price of the move-up home will increase faster than the price of the place you’re leaving behind,” said Redfin CEO Glenn Kelman.

With that being said, Blomquist warns potential homebuyers against rushing to buy a home once they have sold their current home.

According to RealtyTrac data, more foreclosure inventory will become available in the next six to 12 months in markets with rebounding foreclosure activity in 2012. Markets such as Florida, Illinois, Ohio, Pennsylvania, New York and New Jersy will see the strongest growth in foreclosure inventory, according to RealtyTrac.

“Particularly in these markets it might be good for the move-up buyers to sell in the spring when inventories are still tight, rent or stay with family for a few months, and then buy in the fall when that additional foreclosure inventory is listed for sale,” said Blomquist.

However, for homeowners who purchased near the peak of the housing market — in the past five to seven years — it’s probably better to wait for home prices to rise further before they sell and move up, Blomquist advises.

“If these folks need to move because of a job or other reason, it is worth considering renting out the property in the short term to take advantage of the strong rental market,” said Blomquist.

Source = Housing Wire

Inventory of Homes For Sale Lowest Since 1999

The National Association of Realtors reported inventory of homes for sale decreased to 1.74 million units in January 2013, down from 1.83 million in December. This is down 25.3% from January 2012, and down 19% from the inventory level in January 2005(mid-2005 was when inventory started increasing sharply). This is the lowest level of inventory since December 1999.
 
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What does this mean for buyers and sellers?

Many buyers have entered the market due to historically low interest rates and low down payment requirements. Often times this means that buying a home is less expensive than renting in many cities. The sheer demand combined with the lack of inventory has driven prices up and caused multiple offers on just about every house on the market. 

Sellers are once again in the drivers seat due to low inventory levels and are often able to dictate their terms, price and choose the offer they feel is the best out of the multiple they receive.
 
Whether you are a buyer or seller feel free to call us today to discuss your real estate options and we can put a personalized plan together for your specific needs. No obligation, just information! 
 
The Wise Team
(714)698-9473 call/text
Dustin@TheWiseTeamOC.com 

Attention Renters: Home Affordability at All Time High

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The median home price in California is currently $353,190. Based on this (and assuming a 20% down payment) the monthly mortgage plus taxes and insurance would be $1,670. The income needed to qualify for that purchase is $66,940. 

To put that into perspective there are many cities in Orange, Riverside and LA County where $350,000 will buy a 3 bedroom, 2 bathroom single family home.  

We realize that coming up with the down payment is a daunting task. Just know that there are options that allow for 100% financing (through the veterans administration) and as little as 3-3.5% down for Conventional and FHA financing respectively. 

We are here to answer all of your real estate and lending questions. Contact us today for a private consultation to learn more about buying a home and the necessary steps to take to secure your financing. 

The Wise Team

(714)698-WISE call/text

Dustin@TheWiseTeamOC.com

Lack of Inventory Despite 1.2 Million Foreclosure Starts in 2012

DS News took some time to chat with Daren Blomquist, VP of RealtyTrac, to get a reading on the current state of the foreclosure market and what is expected to come.

Although foreclosures served to strip homes of their value during the housing crisis, Blomquist says foreclosures will be seen as a welcome sign this year and act as a stimulus.

While this may seem counterintuitive, Blomquist said, “because of the severe lack of inventory available for sale, foreclosures could actually fill that inventory and provide more fuel to the fire that’s been slowly building over the past year as more sales occur.”

Though, he added, “this is assuming foreclosures are being done properly,” meaning according to regulation and legislation that’s been passed to protect homeowners.

Currently, Blomquist says there are still a lot of foreclosures that need to be dealt with, but the good news is that foreclosure rates are much lower for newer loans.

RealtyTrac data shows the foreclosure rate for loans originated in 2009 is drastically lower than the rate on loans originated between 2004 and 2008.

For loans originated in 2009 and beyond, the rate is less than 1 percent, while loans between 2004 and 2008 have a foreclosure rate that sits anywhere between 2-5 percent, Blomquist explained.

Even though banks may have a buildup of foreclosures that are yet to hit the market, Blomquist waived off theories that banks are holding onto the properties deliberately and the release of the properties will cause home values to plummet.

“[Banks] are not intentionally holding back. It’s because they’re being so cautious about making sure they’re dotting all their i’s and cross their t’s,” he said.

This, he added, has slowed the process down to a complete halt in some cases and a crawl in others.

As for fears the release of foreclosures will bring down prices, Blomquist isn’t worried this will happen to the market.

“This so called shadow inventory never hit full force, so now I think we’re at a point where the pendulum has swung completely the other way and the housing market needs more inventory, so 2013 would be a serendipitous time for banks to release that inventory,” he said.

Looking ahead, Blomquist says RealtyTrac is still expecting to see around 600,000 REOs in 2013 based on the number of foreclosure starts in 2012, which hit about 1.2 million. Blomquist explained the roll rate is for about 50 percent of foreclosure starts to end up as REOs.

He also says completed short sales are expected to exceed the 2012 number, which will likely be around 1 million.

The foreclosure situation in 2013 also won’t be uniform across the country, but will be on a state-by-state basis, with judicial states dominating much of foreclosure activity in the first half of the year, according to Blomquist.

Then, in the second half of the year, and perhaps into 2014, the spotlight will be on non-judicial states.

Blomquist says this will be because new legislation as seen in California, as well as Oregon, Washington, and Nevada is starting to slow down the foreclosure flow in those areas, which he thinks will result in a backlash of foreclosure activity near the end of this year and into 2014.

 

Source = DS News

Buying A Home After A Short Sale or Foreclosure

Andreea Stucker thought she made a good investment when she bought a Huntington Beach condo with her boyfriend in December 2005.

But then she and her boyfriend split up. He moved out just as the housing market crashed, leaving Stucker broken hearted and broke.

Article Tab: new-dog-previously-gus
Andreea Stucker with her dog, Gus, and her new home in Huntington Beach. She previously lived in a condo that she sold as a short sale.Here’s a breakdown of waiting periods for boomerang buyers who lost their homes due to a foreclosure or a related event:

Foreclosure:

  • Seven years for a government-backed Fannie Mae or Freddie Mac loan.
  • Three years for a Federal Housing Administration (FHA) loan.
  • One to two years for a FHA loan if there were extenuating circumstances (such as illness or death of a wage earner).

Short sale:

  • Seven years for Fannie Mae or Freddie Mac with less than 10 percent down.
  • Four years for Fannie Mae or Freddie Mac with 10 percent down.
  • Two years for Fannie Mae or Freddie Mac with 20 percent down.
  • Three years for an FHA loan.

Deed in lieu of foreclosure:

  • Seven years for Fannie Mae or Freddie Mac with less than 10 percent down.
  • Four years for Fannie Mae or Freddie Mac with 10 percent down.
  • Two years for Fannie Mae or Freddie Mac with 20 percent down.
  • Three years for FHA.
  • One to two years for FHA loan with extenuating circumstances.

Source: Fannie Mae, Department of Housing and Urban Development

 
 
 

With her own income down at least 60 percent, the real estate agent was unable to make the $4,400-a-month mortgage payments on her own, even after taking in room-mates.

“I begged the bank for over seven months to grant me a loan modification to reduce my payments, because I was rapidly going through my savings,” Stucker, 34, recalled. “I ended up completing a short sale on my home, and my credit took a huge hit.”

Three years later, Stucker has mended both her heart and her credit score. She has a new husband and, “miraculously,” a new house.

Stucker is among the emerging ranks of boomerang buyers — people who bounce back from foreclosures or short sales to become homeowners again.

Generally, buyers must wait at least three years after a foreclosure or short sale to qualify for a government-backed Federal Housing Administration mortgage. It can take seven years to get a conventional loan backed by Fannie Mae or Freddie Mac.

It’s been 4 1/2 years since the foreclosure crisis peaked, and real estate industry observers say they have seen boomerang buyers gradually returning to the Orange County market for at least a year.

“I think over three-fourths of these folks will take a stab at the comeback trail,” said Paul Scheper, division manager for Greenlight Financial in Irvine. “Even though some are coming off a bitter experience, most will be looking to regain the American Dream.”

Three to five people who went through a foreclosure or short sale show up each month at homeownership courses offered in Santa Ana and Irvine by the Consumer Credit Counseling Service of Orange Countyor up to 20 percent of the attendees, said Sahara Garcia, the agency’s director of education. She first noticed the boomerangers in late 2011.

“They’re out there,” Garcia said.

 

After 3 ½ years, Stucker still cries at the memory of losing her Huntington Beach condo.

She and her ex-boyfriend paid $613,000 with no money down for a two-level condo with cathedral ceilings and skylights, two bedrooms, two bathrooms and a spacious loft less than two miles from the beach.

They spent $40,000 more installing granite countertops, hardwood and travertine floors, new bathroom vanities recessed lighting and other upgrades.

But it turns out that the real estate game isn’t just about location, location, location. It’s also about timing.

By December 2005, Orange County home sales had just headed into a three-year nose dive. Home prices soon would follow.

Stucker’s income as a real estate agent dropped. Her boyfriend moved out after five months. Eventually, she depleted $29,000 in savings, then quit making house payments.

Unable to get a loan modification she could live with, Stucker sold the condo in May 2009 for $425,000 — $188,000 less than what she owed on two mortgages.

Her credit score went from 798 in December 2005 to the low 500s by May 2009.

“It was probably nine months that I fought for that home,” Stucker said. “I loved my house, and I wanted to stay.”

In hindsight, she says she should have cut her losses before dipping into her savings. But she kept thinking the market would turn around, and she’d be able to afford the home again.

“It’s like getting kicked when you’re down,” Stucker recalled. “You’re going through this awful breakup with this person you thought you had a future with, (and) your income is crap even though you’re working full time. … It was tough.”

Road to redemption

More than 33,000 Orange County households now potentially could qualify for an FHA loan because it’s been three years since their short sale or foreclosure. In the nation as a whole, more than 3.4 million households have completed the minimum waiting period.

But many people still do not have the money or sufficient credit to get a loan.

Natalie Lohrenz, the Credit Counseling Service’s director of development and counseling, said there are two types of foreclosed homeowners.

Those who had a bad loan they couldn’t afford. And those whose finances got nuked.

The first type couldn’t make their house payments, but still had enough income to stay on top of their other bills.

The second – because they went through a divorce, illness, job loss or business reversal – basically ended up with nothing, and trashed their credit across the board.

Stucker fits the first category, and her story serves as an example of how people can recover from a housing market wipe out.

She followed this approach: She paid her homeowner association dues. She paid her bills. She kept credit cards and car payments current.

When Stucker went from homeowner to renter, she could show the landlord everything apart from the mortgage was paid on time.

From then on, she kept her nose to the grindstone and kept paying her bills.

“Eventually, enough time passed, and I didn’t have any 60- or 90- or 180-days late on my credit,” she said. “Right before the two-year mark, I checked my credit for something else. … It had gone up more than 100 points.”

By October, after Stucker married, she and her new husband had saved enough to get an FHA loan on a four-bedroom, 2,500-square-foot house in south Huntington Beach. They paid $625,000 with 3 ½ percent down.

Her credit score is back up to 720.

Her new home needs work. She and her husband repainted the home inside and out, removed 11 trees and fixed a leaky pool. They did much of the work themselves.

Because of the experience, Stucker thinks she’s a better real estate agent.

Clients going through their own short sales worry they’ll never be able to buy a home again. She knows what they’re going through, emotionally and financially, and shares her experience.

“In retrospect, it was a mistake to buy a house with no money down at the height of the market. But who knew it was the height of the market?” Stucker said. “(But) no matter how far you’ve fallen, there’s always up. There’s always the possibility that you can own again.”

 

Source = http://www.ocregister.com/articles/years-496154-stucker-loan.html

Avoiding Loan-Modification Hoaxes

Avoiding Loan-Modification Hoaxes

According to the California Association of Realtors Homeowners wary of being taken in by bogus “loan modification specialists” should not assume that a law office is the most reliable way to work with their lender.  Consumer advocates say a growing number of fraudulent modification services involve lawyers, or people who say they are lawyers.

There are free alternatives for homeowners in need of assistance. As always please feel free to reach out to us for help! 

The Wise Team

Dustin@TheWiseTeamOC.com

(714)698-WISE call or text

3 Bedroom Home in Buena Park

Looking For A Home That Has Been Cared For And Loved With Major Pride Of Ownership? Look No Further! The Three Bedroom, Two Bathroom Layout Is Perfect For Families And Single People Alike. Spacious Living Room With Expansive Laminate Wood Floors. Dining Room Is Conveniently Located Just Off The Kitchen And Is Still Accessible To The Living Areas. The Indoor Laundry Room Is Thoughtfully Located Just Off The Kitchen And Far Enough Away From Your Entertaining/Relaxing Areas That You Wont Be Bothered By The Sounds Of The Spin Cycle. One Of The Bathrooms Has Recently Been Upgraded With A New Toilet and Vanity, Tile Flooring And New Paint. The Long Driveway Is Perfect For Parking That Boat Or RV And Leads To The Two Car Detached Garage At The Back Of The 6,000 Plus Square Foot Lot. The Back Yard Is Surrounded By Block Walls And The Mature Magnolia Tree Provides Plenty Of Shade From The Afternoon Sunshine. Close To Freeways, Shopping, Schools And More!

To request a private viewing or for more information call or text us directly at (714)698-WISE or email Dustin@TheWiseTeamOC.com.

To view all properties on the market visit our website http://www.ILoveSoCalHomes.com.