Blair Webb Brunswick Real Estate

FHA Weighs Rule Reversal, Boon for Condo Sales?

Blair Webb — Wed, 23 May 2012 23:37:00 GMT

The Federal Housing Administration is reportedly considering revising rules that many in the real estate industry have called overly strict and that have left many condo units ineligible for FHA’s low-downpayment mortgages.

For example, one sticking point under the FHA’s rules has been that “individual condo units cannot be sold to buyers using FHA-insured mortgages unless the property as a whole has been approved for financing,” The Wall Street Journal reports. However, condo association boards are increasingly opting not to obtain recertification of their buildings for FHA loans due to its tightened regulations against condo units.

FHA’s regulations “have had an enormous impact on individuals,” says Moe Veissi, president of the National Association of REALTORS®. More condo unit residents are finding they are unable to sell their unit because the condo board hasn’t obtained approval from FHA, Veissi told The Wall Street Journal. This then can have a roll-over affect that negatively impacts the price of condo units in the buildings then.

Half of all condo buyers tend to use FHA mortgages, and it’s an important source of lending for first-time and minority home buyers, Christopher L. Gardner, managing member of FHA Pros, a consulting firm that helps condo boards obtain FHA approvals, told The Wall Street Journal.

FHA officials say they are willing to reconsider some of their rules that have raised such an outcry among condo owners, lenders, and real estate professionals. For example, one rule the FHA is reportedly reconsidering is its stance on non-owner occupancy. As of now, FHA requires that no more than 50 percent of the units in a condo building be non-owner occupies. “This rule alone has made large numbers of condominiums in hard-hit markets ineligible for FHA financing, where investors have purchased units for cash to turn into rentals,” The Wall Street Journal reports.

FHA also is reportedly revisiting its condo rules on how many owners in a building can be delinquent on their fees. As of now, FHA refuses to approve a project if more than 15 percent of the condo units are 30 days or more late on their condo association fees, The Wall Street Journal reports.

April Existing-Home Sales, Prices Up

Blair Webb — Wed, 23 May 2012 23:35:00 GMT

Existing-home sales rose in April and remain above a year ago, while home prices continued to rise, according to the National Association of REALTORS®. The improvements in sales and prices were broad based across all regions.

Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 3.4 percent to a seasonally adjusted annual rate of 4.62 million in April from a downwardly revised 4.47 million in March, and are 10.0 percent higher than the 4.20 million-unit level in April 2011.

Lawrence Yun, NAR chief economist, said the housing recovery is underway. “It is no longer just the investors who are taking advantage of high affordability conditions. A return of normal home buying for occupancy is helping home sales across all price points, and now the recovery appears to be extending to home prices,” he said. “The general downtrend in both listed and shadow inventory has shifted from a buyers’ market to one that is much more balanced, but in some areas it has become a seller’s market.”

Supply and Demand

Total housing inventory at the end of April rose 9.5 percent to 2.54 million existing homes available for sale, a seasonal increase which represents a 6.6-month supply at the current sales pace, up from a 6.2-month supply in March. Listed inventory is 20.6 percent below a year ago when there was a 9.1-month supply; the record for unsold inventory was 4.04 million in July 2007.

“A diminishing share of foreclosed property sales is helping home values. Moreover, an acute shortage of inventory in certain markets is leading to multiple biddings and escalating price conditions,” Yun said.He notes some areas with tight supply include the Washington, D.C., area; Miami; Naples, Fla.; North Dakota; Phoenix; Orange County, Calif.; and Seattle. “We expect stronger price increases in most of these areas.”

The national median existing-home price for all housing types jumped 10.1 percent to $177,400 in April from a year ago; the March price showed an upwardly revised 3.1 percent annual improvement. “This is the first time we’ve had back-to-back price increases from a year earlier since June and July of 2010 when the gains were less than one percent,” Yun said. “For the year we’re looking for a modest overall price gain of 1.0 to 2.0 percent, with stronger improvement in 2013.”

Distressed homes — foreclosures and short sales sold at deep discounts – accounted for 28 percent of April sales (17 percent were foreclosures and 11 percent were short sales), down from 29 percent in March and 37 percent in April 2011. Foreclosures sold for an average discount of 21 percent below market value in April, while short sales were discounted 14 percent.

NAR President Moe Veissisaid home buyers should look into financing in the early stages of their search process. “With the tight lending environment it’s a good idea to consult with a REALTOR^® about mortgages and program options in your area, and tips for boosting your credit score well in advance of making an offer on a home,” he said. “It helps to go into the process knowing what it takes to succeed.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage declined to 3.91 percent in April from 3.95 percent in March; the rate was 4.84 percent in April 2011. Last week the 30-year fixed rate dropped to a record weekly low of 3.79 percent; recordkeeping began in 1971.

First-time buyers rose to 35 percent of purchasers in April from 33 percent in March; they were 36 percent in April 2011.

All-cash sales fell to 29 percent of transactions in April from 32 percent in March; they were 31 percent in April 2011. Investors, who account for the bulk of cash sales, purchased 20 percent of homes in April, compared with 21 percent in March and 20 percent in April 2011.

Single-family home sales rose 3.0 percent to a seasonally adjusted annual rate of 4.09 million in April from 3.97 million in March, and are 9.9 percent higher than the 3.72 million-unit pace a year ago. The median existing single-family home price was $178,000 in April, up 10.4 percent from April 2011.

Existing condominium and co-op sales increased 6.0 percent to a seasonally adjusted annual rate of 530,000 in April from 500,000 in March, and are 10.4 percent above the 480,000-unit level in April 2011. The median existing condo price was $172,900 inApril, which is 8.1 percent above a year ago.

Performance by Region

Existing-home sales in the Northeast rose 5.1 percent to an annual level of 620,000 in April and are 19.2 percent higher than a year ago. The median price in the Northeast was $256,600, up 8.8 percent from April 2011.

Existing-home sales in the Midwest increased 1.0 percent in April to a pace of 1.03 million and are 14.4 percent above April 2011. The median price in the Midwest was $141,400, up 7.4 percent from a year ago.

In the South, existing-home sales rose 3.5 percent to an annual level of 1.79 million in April and are 6.5 percent higher than a year ago. The median price in the South was $153,400, up 8.0 percent from April 2011.

Existing-home sales in the West increased 4.4 percent to an annual pace of 1.18 million in April and are 7.3 percent above April 2011. The median price in the West was $221,700, a surge of 15.9 percent from a year ago.

George Lucas Strikes Back on Housing Plan for Ranch

Blair Webb — Wed, 23 May 2012 23:33:00 GMT

Star Wars filmmaker George Lucas is giving up his 25-year fight with residents in Marin County, Calif., over developing his ranch into a digital media production studio. Instead, he now wants to sell the land and have it turned into a low-income housing project.

For more than two decades, Lucas had tried to persuade city officials and residents to allow him to build a 260,000-square-foot digital media production studio at his ranch, which was expected to bring an estimated 600 jobs to the city. But residents fought against his plan, expressing concern over traffic, noise, and an outdoor stage area that would be lit late into the evening.

"The level of bitterness and anger expressed by the home owners in Lucas Valley has convinced us that even if we were to spend more time and acquire the necessary approvals, we would not be able to maintain a constructive relationship with our neighbors," Lucasfilm said in its statement about the decision to end pursuing the project.

Lucas says he now plans to sell his property to the Marin Community Foundation, which funds affordable housing projects. Critics to Lucas’ digital project have yet to respond to plans about an affordable housing development going on the land instead.

But Fred Silverman, spokesman for MCF, says that more affordable housing is needed in the area, where the median home price averages $700,000.

"Affordability is so bad that many people, even with moderate income, can't afford to live here," Silverman told CNNMoney.

Sellers More Willing to Work on Buyer Appeal

Blair Webb — Wed, 23 May 2012 23:30:00 GMT

Home sellers are more willing to make changes to their home to make it more competitive in the market and more attractive to potential buyers, according to a new survey by Coldwell Banker Real Estate of 700 of its agents nationwide.

So what are sellers willing to do to better their home’s presentation? The survey found:

94 percent of the agents surveyed said their sellers are removing clutter and making cosmetic updates, including minor repairs and fresh paint.
76 percent of U.S. sellers are willing to “depersonalize” their home. (60 percent of Canadian agents say their sellers are willing to depersonalize)
59 percent of say sellers are even bringing in new home decorations or furniture to help make the home more appealing.

“When marketing your home, it’s important to help buyers imagine themselves living in the property. De-cluttering and de-personalizing is crucial to this process,” says Susanita de Diego, Coldwell Banker Canadian Consumer Specialist. Homes are competing for buyers so homes “presented with a minimum of clutter and distracting personal items ... will appeal to buyers and improve their chances of a successful sale.”

The survey also found that American sellers are more willing to get competitive on price too. Fifty-one percent of the agents surveyed said they’ve found their home sellers more willing to price their homes competitively than compared to last year.

What Buyers Want

The survey also revealed what is guiding home buyers in their home search. Thirty-three percent of the real estate agents surveyed say that new or updated kitchens are the most important home feature for home buyers. Meanwhile, 14 percent say an open floor plan and 12 percent say a new or updated bathroom are the most important home buyer features today.

The survey found that only 1 percent of the real estate agents say that their buyers rate entertainment rooms or finished basements as the most important home feature.

The most common motivation getting buyers moving: A new baby or growing family, according to the survey. Other lifestyle factors like getting married, a divorce, or retiring also are big motivators for wanting to find a new home

What May Delay Some Housing Markets' Recovery

Blair Webb — Wed, 23 May 2012 23:28:00 GMT

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The difference in how states handle foreclosures may determine how quickly their housing markets make a full recovery, according to a new report by Capital Economics.

States with nonjudicial foreclosure markets — where foreclosures can be approved outside the court system (Georgia is one )— are seeing housing prices stabilize faster than states that require foreclosures to go through the court system, according to Capital Economics. The report notes that judicial foreclosure states tend to see houses linger on the market longer, which ultimately can cause prices to drop.

"We think that differences in foreclosure procedures will continue to affect state-level house price trends, with nonjudicial states outperforming," Paul Diggle, property economist with Capital Economics. "After all, as foreclosure pipelines are brought down to healthier levels in nonjudicial, high burn-through states, supply conditions can more rapidly tighten to the point that they support price growth."

The Federal Housing Finance Agency index recently showed that housing prices were down 2.3 percent year-over-year in the fourth quarter of 2011 and dropped 0.3 percent in the fourth quarter compared to the previous quarter in states with judicial procedures for foreclosures. In states with nonjudicial foreclosure procedures, however, home prices increased 0.3 percent quarter-over-quarter and dropped only 1.6 percent year-over-year.

Economists have predicted a surge in foreclosures is coming in the next few months from the $25 billion robo-signing mortgage settlement. The foreclosure wave will pose a “much greater threat to the house price outlook in judicial states, where the foreclosure backlog is that much larger,” Diggle told HousingWire.

5 Places Where Prices Are Expected to Rise Most

Blair Webb — Wed, 23 May 2012 23:27:00 GMT

Housing markets that have seen some of the biggest drop in home prices since the housing peak are now poised for recovery in the next two years, according to a new report by Fiserv. The bargains in these cities are attracting buyer attention and expected to drive up home prices in the coming year.

Fiserv forecasts that the following five cities will see some of the biggest growths in home prices by the end of 2013:

1. Madera, Calif.
Median home price: $125,000
2013 forecast for home prices: 21.5% increase

2. Medford, Ore.
Median home price: $144,000
2013 forecast for home prices: 20.1% increase

3. Yuma, Ariz.
Median home price: $105,000
2013 forecast for home prices: 16.7% increase

4. Corvallis, Ore.
Median home price: $224,000
2013 forecast for home prices: 13.2% increase

5. Eugene, Ore.
Median home price: $166,000
2013 forecast for home prices: 12.4% increase

Single Story For Sale in Yellow Bluff

Blair Webb — Sat, 19 May 2012 23:57:00 GMT

Private Marinia and Clubhouse

• 4,511 sq. ft., 4 bath, 3 bdrm single story - MLS® $825,000 - Exclusive Deepwater Home

Yellow Bluff, Midway - Welcome to Yellow Bluff a Marina Community. This custom build home offers so many features that words alone cannot express what pictures of this beautiful low country home can do. How does it go, “a picture paints a thousand words”? The home is situated on deepwater lot with breath taking views. The home is completely furnished even down to flat screen television in all bedrooms. From the moment you walk into this home you will be taken back by the quality of detail and extras. The home has been so well thought out there is a back up natural gas generator for the house. Included in the homeowner’s dues is access to the marina, docks, clubhouse and pool. But enough said, enjoy the gallery of pictures.

Property information

Price Reduced on 324 Oyster Pointe Drive Midway, GA 31320 in Yellow Bluff

Blair Webb — Sat, 19 May 2012 23:57:00 GMT

Yellow Bluff, Midway - Announcing a price reduction on 324 Oyster Pointe Drive Midway, GA 31320, a 4,511 sq. ft., 4 bath, 3 bdrm single story. Now MLS® $825,000 - Exclusive Deepwater Home.

Property information

Bernanke: Mortgages Still too Difficult to Get

Blair Webb — Thu, 17 May 2012 02:10:00 GMT

Even creditworthy borrowers are finding it difficult to get a mortgage nowadays and it’s unlikely banks will ease their standards anytime soon, Federal Reserve Chairman Ben Bernanke told a banking conference in Chicago Thursday.

While banks have made huge strides in improving their balance sheets and overall lending (such as for credit cards and auto loans), banks continue to be extra cautious when it comes to issuing new mortgages, he said. Even borrowers coming with a 20 percent down payment on a home purchase may face hurdles unless they have stellar credit, he said.

"A return to pre-crisis lending standards wouldn't be appropriate," Bernanke said in referencing how banks prior to the housing crisis were issuing mortgages with little or no documentation for jobs or incomes. "However, current standards may be limiting or preventing lending to many creditworthy borrowers."

The challenges of getting a mortgage have been cited by real estate professionals and economists as one of the biggest obstacles standing in the way of a full housing recovery.

An estimated 10 to 20 percent of creditworthy home buyers are being locked out of the housing market because of tightened credit conditions, U.S. Housing Secretary Shaun Donovan told Reuters.

Double-Digit Price Increases Coming Soon?

Blair Webb — Thu, 17 May 2012 02:08:00 GMT

Home buyers and sellers need to get ready to pounce. Hard-hit housing markets are on the road to recovery and expected to see major price gains soon.

Some of the hardest-hit markets during the housing crisis — plagued by soaring foreclosures and plummeting home prices — are expected to post some of the biggest gains through 2013, according to a report released this week by Fiserv.

"Some markets may have overshot to the downside, and people are jumping in to try to catch the bottom," says David Stiff, Fiserv’s chief economist. Fiserv recently projected that nationwide housing prices will gain 4 percent a year over the next five years.

The areas projected to have the largest price gains, according to Fiserv:

1. Madera, Calif

Projected price increase by the end of 2013: 21.5 percent

2. Medford, Ore.

Projected price increase: 20.1 percent

3. Yuma, Ariz.

Projected price increase: 16.7 percent

4. Corvallis, Ore.

Projected price increase: 11.4 percent

How Low Will Mortgage Rates Go?

Blair Webb — Thu, 17 May 2012 02:05:00 GMT

For the second consecutive week, fixed-rate mortgages reached new all-time records lows, offering another big boost to home buyer affordability.

The 30-year fixed-rate mortgage averaged 3.83 percent for the week ending May 10, posting a new record low from last week’s 3.84 percent average. The 15-year fixed-rate mortgage also posted a new record, averaging 3.05 percent this week.

Here’s a closer look at mortgage rates for this week:

30-year fixed-rate mortgages: averaged 3.83 percent, with an average 0.7 point, down from last week’s previous record of 3.84 percent. A year ago at this time, 30-year mortgages averaged 4.63 percent. The 30-year fixed-rate mortgage, the most popular choice among home buyers, has averaged below 4 percent for nearly every week — except for one — since Dec. 8, 2011, according to Freddie Mac.
15-year fixed-rate mortgages: averaged 3.05 percent, with an average 0.7 point, dropping from last week’s previous record low of 3.07 percent. Last year at this time, the 15-year fixed-rate mortgage averaged 3.82 percent.
5-year adjustable-rate mortgages: averaged 2.81 percent, with an average 0.5 point, dropping from last week’s 2.85 percent average. Last year, 5-year ARMs averaged 3.41 percent.
1-year ARMs: averaged 2.73 percent, with an average 0.5 point, rising from last week’s 2.70 average. A year ago, 1-year ARMs averaged 3.11 percent

The Cost of Getting a Loan is on the Rise

Blair Webb — Thu, 17 May 2012 02:01:00 GMT

Closing costs for a mortgage averaged $4,143 last year, which is 12.4 percent higher than in 2010, Bankrate.com reports.

Despite record low mortgage rates, borrowers are finding the cost of getting a loan is on the rise.

Origination fees have posted some of the biggest increases, rising 12 percent in 2011 to $1,045, according to Bankrate.com data. Attorney costs and other settlement fees now average $544, a 9.6 percent increase. Appraisal fees have risen 7.8 percent, averaging $406.

Closing costs vary quite a bit among lenders so it can pay for borrowers to shop around, housing experts say. For example, origination fees can range anywhere from $123 to more than $2,000.

Analysts say part of the reason behind the increase in fees is the increased cost to lenders of processing loans with more paperwork required nowadays.

Last week, the Consumer Financial Protection Bureau proposed new rules to limit certain fees lenders require borrowers to pay at closing. One of the fees the agency said it hopes to ban is a fee referred to as “origination points” that buyers sometimes must pay at closing.

“Mortgages today often come with so many different types of fees and points that it can be hard to compare offers,” Richard Cordray, the director of the Consumer Financial Protection Bureau, told The New York Times. “We want to bring greater transparency to the market so consumers can clearly see their options and choose the loan that is right for them.”

Home Ownership Key to Elections, National Strategists Say

Blair Webb — Thu, 17 May 2012 01:57:00 GMT

Protecting home ownership will be front and center in this year’s national elections, said top political strategists speaking with hundreds of REALTORS® Tuesday morning at the 2012 NAR Midyear Legislative Meetings & Trade Expo in Washington, D.C.

Celinda Lake, a Democratic political strategist, said middle-aged women without a college education are the key swing demographic in this year’s elections. For this group, home ownership is of vital importance because of the impact of owning a home on family stability. Lake is president of national polling firm Lake Research Partners.

Given the political centrality of home ownership this year, the National Association of REALTORS®’ Home Ownership Matters campaign and the Rally to Protect the American Dream on Thursday at the Washington Monument couldn’t be more timely and important.

The Rally, says Lake, is a “very, very smart” move on the part of REALTORS®. “Your average politician doesn’t want to get on the other side of home ownership,” she said.

Lake’s national polling finds that, despite the downturn in housing, three-quarters of voters see home ownership as central to the American Dream and believe it’s the most important financial investment they’ll ever make and worth taking a risk for. The high regard for ownership is shared by both renters and owners who are underwater on their mortgage, she said. Almost 70 percent of underwater borrowers continue to believe home ownership is worth the financial investment.

Lake told the hundreds of REALTORS® to keep their eye on how the economy is doing in June, because that month is the “most predictive of the vote” in November. So, whether voters think the economy is improving or getting worse next month will be all-important.

Lake said most voters personally approve of President Barack Obama and most voters don’t hold him responsible for the country’s economic problems, but their views are mixed on how well he’s been dealing with the downturn. There’s a concern that what he’s done so far hasn’t worked well and that more needs to be done.

Gene Sperling, President Obama’s chief economic advisor, said later at the same session that the administration has done as much as it could to restore housing, and now it needs Congress to act on mortgage relief measures that are pending on Capitol Hill.

On its own, the administration has crafted mortgage modification standards and incentives resulting in some 5 million modifications, encouraged refinancings, persuaded lenders to extend mortgage forbearance to 12 months from the usual practice of three months, and allowed FHA and the two secondary mortgage market institutions Fannie Mae and Freddie Mac to sell their REO properties in bulk to investors — including for conversion to rentals in some cases. Sperling stressed that the REO bulk sales are only for selected markets in which such sales would be helpful to the market.

On the to-do list for Congress is a measure to allow all home owners, not just those with federally backed mortgages, to refinance their loan to take advantage of historically low interest rates.

Michael Steele, former head of the Republican National Committee, who spoke at the forum with Lake, said members of Congress take very seriously what REALTORS® tell them when they make their visits to Capitol Hill later this week. It’s key that REALTORS® tell their lawmakers about the impact of federal policies — such as Wall Street reform enacted two years ago — on the local market. If lenders aren’t making loans to creditworthy borrowers because of that law, he said, then REALTORS® must tell them that in their Hill visits. “You’ll get a response from them when you explain the impact,” he said.

Housing Affordability Reaches Records

Blair Webb — Thu, 17 May 2012 01:56:00 GMT

Housing affordability conditions for all buyers reached a milestone in the first quarter, according to the National Association of REALTORS®.

NAR’s composite quarterly Housing Affordability Index rose to a record high of 205.9 in first quarter, based on the relationship between median home price, median family income and average mortgage interest rate. The higher the index, the greater the household purchasing power. This is the first time the quarterly index broke the 200 mark; recordkeeping began in 1970.

NAR President Moe Veissi said market conditions are optimal for home buyers. “For those with good credit, we’ve never seen better housing affordability conditions or market opportunities than we see at present,” he said. “Although home prices are stabilizing and sales are rising, some buyers still have to jump through a lot of hoops to convince a lender that they are creditworthy, even for a mortgage that would be well within their means. This is especially true for self-employed buyers.”

Veissi noted home sales would be much higher if lending standards would return to normal.

The index shows the median-income family, earning just under $61,000, could afford a home costing $325,500 in the first quarter, which is more than double the national median existing single-family home price of $158,100. The median monthly mortgage principal and interest payment for a median-priced home would take only 13.5 percent of gross income.

A companion index measuring the ability of first-time buyers to purchase a home also set a record, with the first-time buyer index reaching 135.8 in the first quarter.

Assumptions for the first-time buyer index include a lower income, at 65 percent of median family income, a starter home costing 85 percent of the median price, and a down payment of 10 percent. This index means the typical entry-level buyer could afford a home costing $182,500, which is well above the overall median price.

“It’s never been easy to buy a first home because of the cash required for downpayment and closing costs, but conditions for first-time buyers who are able to get a mortgage have never been better,” Veissi explained.

Most first-time buyers choose a loan with a lower down payment, often an FHA-insured loan with 3.5 percent down, and some use the VA program with no down payment.

Both home prices and mortgage interest rates are expected to edge up modestly as the year progresses, but housing affordability will remain very favorable with the median-income household well positioned to afford a median-priced home. For all of 2012 the index is projected to set an annual record, averaging 191 for the year.

5 New 'Rules' to Home Buying

Blair Webb — Sun, 06 May 2012 00:26:00 GMT

With signs of a housing turnaround getting stronger, housing experts say buyers are finding several recent changes when they go to put in an offer on a home. A recent article at U.S. News & World Report highlights some of these changing “rules” for your home buyer clients:

1. Lowball offers won’t likely stick: Sure, deals are still around, but lowball offers that aren’t in line with comparable sales data are increasingly proving to be a waste of time. Buyers may be better off asking for seller concessions, such as closing cost assistance or making home repairs, rather than making offers way below the asking price. “Keep in mind that a lowball number may turn off the seller and close down any chance at negotiation,” the U.S. News & World Report article cautions potential buyers.

2. Get pre-approved: Getting a loan isn’t easy nowadays as lenders have tightened their credit standards in recent years. Serious buyers should check their credit and get pre-appoved for a loan to determine how much of a home they can even afford even before they start their home search.

3. Get realistic about the market: Real estate agents can show buyers comparable nearby sales to help educate them about local market conditions. Transactions from the last six months are the most important. Another important piece of information for buyers is knowing how long properties are staying on the market.

4. Expect some competition. Housing inventories are dropping in many areas and spurring an increase in demand. Home buyers may face increased competition for the home they want, particularly among short sales and foreclosed properties, in which they may be up against investors who are making all-cash offers. That’s why experts say it’s important bank-financed buyers know their financial situation in advance to better compete.

5. Conduct property research: Real estate agents will help guide clients on what all they need to do when they find a property they like, but one important step nowadays: Buyers should hire a title company to check for any liens or tax arrearages, the article notes. Housing experts also recommend hiring a home inspector, verifying the accuracy of the property line (by asking seller for the survey or having your own conducted), and make sure all necessary disclosures about the property, required by the state, have been made.

Is Housing as Cheap as It'll Ever Get?

Blair Webb — Sun, 06 May 2012 00:22:00 GMT

Home buyers who want a bargain may want to act now because the housing market is in the midst of a turnaround, economists say.

Home prices have fallen and mortgage rates are hovering near record lows, pushing home affordability for the average family to record highs. Meanwhile, rents have been on the rise, making owning a home cheaper than renting in most areas of the country, according to recent surveys.

But the housing deals aren’t expected to stick around much longer.

An improving job market, a decrease in the number of home owners falling behind on their mortgage, and an anticipated improvement in access to mortgages is expected to help home prices start bouncing back by next year, economists say.

Investors eyeing profits in rentals also have been snapping up bank-owned properties, which Clear Capital’s Alex Villacorte attributes as helping to lead to an increase in prices on foreclosed properties.This “could have a significant impact on the market overall in terms of providing a rising floor to home values,” Villacorte told CNNMoney.

Some areas are already seeing prices rise. In Phoenix, housing prices have already increased 8.4 percent during the three months ending April 30, and Miami saw prices bump up 4.6 percent quarter over quarter, according to Clear Capital data.

"Stuff I was selling six months ago for $60,000 to $80,000 is now $90,000 to $110,000," Tanya Marchiol, founder of Team Investments in Phoenix, told CNNMoney.

Loan Rates, Demand Predictions

Buyers may want to act more quickly because mortgage rates are expected to tick up slightly by the end of the year. The increase is being sparked by greater demand, says Doug Lebda, CEO of LendingTree. He predicts 30-year fixed-rate mortgages will inch up to 4.5 percent by the end of the year, which is still low, however, by historical standards.

The Mortgage Bankers Association is also predicting a big leap in mortgage loans next year. For this year, MBA estimates that buyers will take out loans totaling about $415 billion, but by 2013 that number is expected to nearly double to $706 billion.

What Buyers Often Overlook in Home Purchases

Blair Webb — Sun, 06 May 2012 00:20:00 GMT

While many buyers may be swayed by the home’s appearance, financing, and location when choosing a home, housing experts say they often overlook other important factors that may keep them happy for years to come with their home purchase.

A recent article at U.S. News & World Report lists tips for those often-forgotten aspects of home ownership. Here are some of those overlooked aspects:

Zoning of nearby areas: What you see today may not be what you see a few years from now. Communities’ and neighborhoods’ landscapes can drastically change in a few years. And while some of these changes may be good — such as the addition of a nearby recreation park or school — some may be viewed as a negative, like a new highway overpass behind the property, the article notes. By reviewing upcoming plans and existing zoning at the city’s urban development department, home buyers can get a better idea of what the future may hold for the surrounding area of the neighborhood they choose.
Remodeling rules: Some community associations may set limitations on what you can do to property, particularly if the buyer ever wants to make exterior changes like adding a garage or guest house. Purchasers who are looking to have a house grow with their family’s needs through the years may want to investigate any such rules beforehand to make sure that they’ll be able to add onto their home as needed.
Impact of crime rate: Home purchasers may be concerned about making sure their new home falls in a low-crime-rate area but they may fail to realize how it can also impact their monthly budget. For example, “living in a high-risk neighborhood can send monthly bills upwards, like inflated auto insurance premiums,” the U.S. News & World Report article notes.

Largest Mortgage Lender Takes Bigger Bite of Market Share

Blair Webb — Sun, 06 May 2012 00:18:00 GMT

Wells Fargo, the nation’s largest lender for home loans, is continuing to grow its mortgage business, issuing a record 33.9 percent of mortgages in the first quarter.

Other lenders now remain even further from reaching Wells Fargo’s mortgage totals. JPMorgan Chase & Co. has the second-highest market share of mortgages, but at 10.6 percent, it’s less than one-third than Wells Fargo’s mortgage volume, Reuters News reports. Also, some lenders, such as Bank of America, are continuing to scale back their mortgage volume.

Meanwhile, like Wells Fargo, U.S. Bancorp has increased its market share in the mortgage lending business, rising in the rankings from fifth to third in the first quarter.

"We see a market share [opportunity] that you only get once in a lifetime," U.S. Bancorp CEO Richard Davis said recently about the bank’s mortgage business.

Bank of America, when it purchased Countrywide Financial in 2008, once had been the largest mortgage lender in the country, but now ranks fourth. The bank saw its mortgage volume drop by more than 25 percent from the fourth quarter to the most recent quarter.

Top 5 Lenders by Mortgage Volume (First Quarter 2012)

Here are the top five lenders as far as highest market share with mortgage lending:

Wells Fargo
JPMorgan & Chase
Bancorp
Bank of America
Citigroup Inc.

What Foreclosure Wave? False Alarm?

Blair Webb — Sun, 06 May 2012 00:14:00 GMT

Many housing experts for months have been warning a foreclosure wave would soon flood several markets throughout the country. But was it all a false alarm?

Recent surveys have shown that foreclosure sales have dropped to their lowest point in more than two years. And while according to March data, 8 percent more homes did enter the foreclosure process from the previous month, that number is down more than 30 percent from a year ago, according to Lender Processing Services.

CNBC real estate reporter Diana Olick notes that it could be another delay in the foreclosure system “as banks try to modify more loans to meet some of the terms of the [$25 billion] servicing settlement. The foreclosure sales decline also appears to be exclusively in private and portfolio loans, which again points to the settlement.”

Meanwhile, banks are increasing their number of short-sale transactions, and some surveys have shown that short sales are actually now outpacing foreclosure sales — the first time that's ever occurred.

“Lenders are increasingly recognizing that short sales may be a better alternative for them than foreclosure,” RealtyTrac’s Daren Blomquist told CNBC. “This trend began in markets with stronger demand and where the distressed inventory tends to be newer homes (Phoenix, Los Angeles, Las Vegas), but the trend appears to be spreading to other markets like Atlanta and Detroit.”

Home Buying Gets Another Boost in Affordability

Blair Webb — Sun, 06 May 2012 00:13:00 GMT

For home buyers or refinancers, borrowing costs for home ownership just got a little cheaper as mortgage rates took another dip to new all-time record lows this week, Freddie Mac reports in its weekly mortgage market survey.

"Signs of slowing economic growth and inflation remaining subdued allowed yields on Treasury bonds to ease somewhat and brought most mortgage rates to new all-time record lows this week,” says Frank Nothaft, Freddie Mac’s chief economist.

Here’s a closer look at average rates for the week ending May 3:

30-year fixed-rate mortgages: averaged 3.84 percent, with an average 0.8 point, reaching a new historical low. The previous record for 30-year rates was 3.87 percent, which was set on Feb. 9 of this year. A year ago at this time, rates averaged 4.71 percent.
15-year fixed-rate mortgages: averaged 3.07 percent, with an average 0.7 point, another historical low. The previous record for 15-year rates was 3.11 percent set on April 12 this year. A year ago at this time, 15-year rates had averaged 3.89 percent.
5-year adjustable-rate mortgages: averaged 2.85 percent, with an average 0.7 point, holding the same as last week. Last year at this time, 5-year ARMs averaged 3.47 percent.
1-year ARMs: averaged 2.70 percent this week, with an average 0.6 point, also registering at a new all-time low. Last year at this time, 1-year ARMs averaged 3.14 percent.

Rent/Lease Reduced on 44 Greyfield Drive in Greyfield

Blair Webb — Fri, 04 May 2012 22:08:00 GMT

Greyfield, Brunswick - Announcing a rent/lease reduction on 44 Greyfield Drive, a 1,695 sq. ft., 2 bath, 3 bdrm single story. Now MLS® $1,200.00 USD Monthly - Great value.

Property information

Bidding Wars Catch Buyers Off-Guard

Blair Webb — Mon, 30 Apr 2012 20:28:00 GMT

Home buyers are unexpectedly finding more competition this spring in landing their dream home. Bidding wars are increasingly being reported in markets across the country, from California to Florida, The Wall Street Journal reports.

"It's a little surprising because we thought bidding wars were done with," Andy Aley, a home shopper in Seattle, told The Wall Street Journal. Aley says he was outbid on a home earlier this year, even though he offered to pay $23,000 above the listing price and also waive inspections and other closing conditions.

Home buyers are frustrated and caught off-guard about the bidding wars re-emerging, real estate professionals report.

"We're writing a record number of offers, but we're not seeing a record number of closings and that's because it's so competitive," Glenn Kelman, chief executive of Redfin Corp., told The Wall Street Journal.

Why are things getting so competitive? Many housing markets are seeing a drastic decrease in the number of homes listed for-sale, leaving home buyers with fewer options and more bidding on the same house. Housing analysts say the shortage in supply is from sellers unwilling to take much less for their home than what they originally paid for it and pulling their homes off the market. Also, a surge in investors has made the market more competitive, as investors snatch up homes in bulk in all-cash deals.

“The bidding wars caused by tight inventory provide the latest evidence that housing demand is starting to pick up after a six-year-long slump,” The Wall Street Journal reports.

Indeed, the National Association of REALOTRS® reported late last week that pending home sales in March reached their highest level in nearly two years and are up 12.8 percent from a year ago.

Fixed-Rate Mortgages Near Record Lows

Blair Webb — Sun, 29 Apr 2012 19:10:00 GMT

Fixed-rate mortgages dropped slightly this week, nearing their average all-time lows and helping to lift home buyers’ purchasing power, Freddie Mac reports in its weekly mortgage market survey.

For every week but one this year, the 30-year fixed-rate mortgage, the most popular choice among home buyers, has been below 4 percent.

Here’s a closer look at average rates for the week ending April 26:

30-year fixed-rate mortgages averaged 3.88 percent, with an average 0.7 point, dropping from last week’s 3.90 percent average. A year ago at this time, 30-year rates averaged 4.78 percent. The record low for 30-year rates averaged 3.87 percent, a record reached in February.
15-year fixed-rate mortgage averaged 3.12 percent, with an average 0.6 point, dropping from last week’s 3.13 percent. Last year at this time, 15-year rates averaged 3.97 percent. The all-time record low for 15-year fixed-rate mortgages is 3.11 percent, a record reached recently during the week ending April 12.
5-year adjustable-rate mortgages averaged 2.85 percent this week, with an average 0.6 point, rising slightly from last week’s 2.78 percent average. Last year at this time, 5-year ARMs averaged 3.51 percent.
1-year ARMs averaged 2.74 percent, with an average 0.6 point, dropping from last week’s 2.81 percent average. A year ago at this time, 1-year ARMs averaged 3.15 percent.

3 Housing Trends Emerging This Spring

Blair Webb — Sun, 29 Apr 2012 19:08:00 GMT

What can home buyers expect to face this selling season? An improving housing market has made it a different picture in many areas compared to recent years, housing experts say. A recent article at Bankrate.com notes some of the following trends taking shape in the housing market this spring:

1. Fierce competition.

Housing affordability is at record highs, due to falling home values and mortgage rates hovering near record lows. More buyers are taking notice and jumping off the sidelines. And mixed with sinking inventories of homes listed for sale, the competition is getting more fierce.

Investors are snapping up bargain prices, often in all-cash deals, which means greater competition for traditional home buyers too.

"Rents are going up, and as long as there are properties at the level where investors can get the positive cash flow, they will continue to invest," says Jed Smith, managing director of quantitative research for the National Association of REALTORS^®. Smith adds that first-time home buyers, in particular, may find increased competition from investors in trying to snag some of the best deals on the market.

2. More renters show desire to become home owners.

Recent surveys have shown that buying a home nowadays is more affordable than renting. As such, more renters are finding home ownership more enticing.

The signs are already starting to show: About 59.5 percent of tenants recently surveyed say they intend to renew their leases this year, which is the lowest rate since early 2009, according to a study by Kingsley Associates.

3. Mortgages may be a little pricier.

Fannie Mae, Freddie Mac, and the Federal Housing Administration recently have raised their loan fees, which means home buyers can expect to pay a little more for their mortgage this spring.

"Those who don't have credit scores in the high 600s to low 700s may be forced to go the FHA route," says Ed Conarchy, a mortgage planner at Cherry Creek Mortgage in Gurnee, Ill. "And they will be stuck with the higher fees."

Buyers with smaller down payments can expect to pay more for FHA mortgage insurance premiums, which have risen to 1.75 percent of the loan total. Bankrate.com cites an example illustrating the higher fees: A borrower who takes out a $200,000 FHA loan will likely have to pay about $3,500 for mortgage insurance upfront. Prior to the increase taking effect, borrowers would pay about $2,000 for that same loan amount.

Borrowers with higher mortgages can expect higher fees too. The FHA announced that in June it’ll increase its annual insurance for mortgages more than $625,500. "A borrower who lives in a high-cost area and takes out the maximum $729,750 (which is the FHA limit for high-cost areas) will pay $912 each month in mortgage insurance alone," Bankrate.com reports.

5 Ways to Sell a Home Faster, For More Money

Blair Webb — Sun, 29 Apr 2012 19:00:00 GMT

24/7 Wall St. recently asked real estate experts and several real estate organizations to weigh in on how sellers can get their house sold at the best price and in the shortest amount of time.

Here’s what they had to say as some of the best ways to get the “sold” sign out this spring:

Pay attention to “curb appeal”: First impressions are critical, and homes with inviting landscapes and exteriors tend to sell better, agents say. Pay attention that the driveway is in good condition, lawn well-kept, and the house looks freshly painted.
Set the right price: Real estate professionals know how to set the price and prepare a home for sale. Agents use comparable sales of homes sold in the last 60 days to help set the most realistic price for the sales price of a home. By setting a realistic price from the beginning, sellers should be reminded that this will prevent having to drop the price of the home several times before getting it sold and having it linger on the market. If no recent comps are available, some experts recommended sellers get an appraisal, which will also offer a realistic price that the bank may be willing to take when a buyer tries to qualify for financing the home.
Talk about energy efficiency: Many buyers don’t fully understand “green” homes but they understand savings. Sellers should point out any features in their homes — such as energy-efficient windows or appliances — that could save buyers money with utility costs.
Give the home Web appeal: Good photographs make a home stand-out online and help lure more potential buyers to the front door. Realtor.com says that more than 6,300 photos are viewed per minute on listings posted at its site.
Make it move-in ready: Fix any needed repairs, such as water stains, creaky doors, and windows that don’t shut. Flaws in the home — even if relatively minor — can distract buyers, and should be fixed before the home is even listed. Some agents recommend that sellers get a home inspection prior to putting the home up for sale, which can help sellers be proactive in identifying any potential problems that could potentially derail a sale later on. Once a problem is uncovered, sellers are obligated to disclose it or fix it.