Home Ownership: Up or Down?

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Home Ownership Rate in the United States increased to 63.50 percent in the third quarter of 2016 from  62.90 percent in the second quarter of 2016 which it was the same as in 1965, when the US Census started tracking the metric.  Home Ownership Rate refers to the percentage of homes that are occupied by the owner.

What factors drive Home Ownership rate?

There are several factors that will drive Home Ownership Rate, here are just some of those:

• Income growth

• Higher rents and housing costs

• Constrained credit

• Loss of confidence in wealth through Home Ownership

Nevertheless, owning a home is a financially savvy move because builds wealth over time,  and in general makes “cents”, and indeed there is no place like Home.

 

 

 

 

 

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GREAT! You found the right HOUSE.

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Buying your FIRST HOME it is a very emotional process for most of homebuyers. However, don’t allow your emotions to get the best of you! You may fall into a number of common and high costly home buyer’s mistakes.

It’s important to keep your emotions in check to make the best possible decision. Once you’ve fallen in love with a particular home, it maybe hard to go back. Avoid the temptation to get in over your head financially, or the disappointment of feeling like you’re settling for less than you deserve. Start your search at the low-end of your price range, and see what home will satisfy your priorities.

Even when you have a long list of must-haves, there are probably several homes out there that can meet your needs.   Be open-minded, so you don’t run away from good deals. However, don’t buy a fixer-upper that’s more than you can handle in terms of time, money or ability, and definitely out of your budget. If you have been looking for a while, and still not seeing anything you like, don’t get desperate by overbidding excessively to get into your new house.

In a HOT REAL ESTATE MARKET it may be necessary to pull the trigger very quickly if you find a home you REALLY like. However, you have to balance the need to make a quick decision in this kind of market, make sure the home will be right for you, without neglecting important steps like making sure the neighborhood is appealing to you, and it feels safe at night and during the day, investigating also possible noise issues like a nearby train, airports, among others. Taking the time to consider your decision will also give you a chance to research how much the property is really worth and offer a reasonably price for it!

HAPPY HOUSE HUNTING!

Sandy Flores   Broker/Realtor (714)963-7462

Sandy Flores Broker/Realtor
(714)963-7462

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New Mortgage guidelines in effect since December 1st !

New Mortgage guidelines in effect since December 1st !

WASHINGTON-MAY 23: Fannie Mae's mortgage portfolio shrank at 19%Fannie Mae and Freddie Mac launched their new mortgage guidelines that went into effect last December 1st, now requiring a much lower down payment. From the previous 5% to 3% in what lenders hope will be a good kick start from a sluggish housing market that we have seen lately.

Now the brain trust at WalletHub has released its 2014 Mortgage Insurance Report to help low-down-payment home buyers save up to $12,000 on their decision between a Federal Housing Administration loan and private mortgage insurance.

On the other hand FHA premiums, unlike private mortgage insurance, continue to be assessed throughout the life of a loan, even if the loan to value ratio drops below 80%. This creates a huge cost disparities over time, between private mortgage and the FHA option.

New mortgage guidelines are expected to significantly increase the availability of more new purchases.

Murrieta Listing – Back on the Market!

Murrieta Listing – Back on the Market!

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Beautiful Home in a great community.  Open Floor plan with a large living room and dining area. Spacious family room with cozy fireplace. Lot of windows. Good 4 size bedrooms plus additional bonus room that can be used as studio, second family room  or , or even a 5th bedroom.  IMG_0478

Large and Open kitchen with lots of kitchen cabinets, center island and additional dining room area.  Backyard Is Private With Patio. Property is located On A Cul-De-Sac.  Close to Shopping centers, schools, parks and ez access to freeways.

Murrieta is a magnificent land blessed with verdant open spaces dotted with towering oak trees, sycamores, a valley of rich grasses and natural hot springs. The natural scenic beauty of the area and what is still by California standards reasonably priced housing continues to attract significant numbers of residents and businesses who are finding Murrieta a great place to grow. It’s a community with a past and vision for its future. One that welcomes challenges, takes risks, embraces opportunity.   Murrieta trailsguide

Click the following link to view the report:
http://mrmlsmatrix.com/Matrix/Public/EmailReport.aspx?ID=1252703662&k=3496717XWZF6

 

 

 

Home sales show encouraging stats

Home sales show encouraging stats

Existing home sales, excluding distressed sales, are the most encouraging stats at the moment. These, according to Trulia and the National Association of Realtors, were 80 percent back to normal in August.

home-salesTrulia’s Bubble Watch also showed that prices were 3.4 percent undervalued in the third quarter, which is a marked improvement over the 13.5 percent undervaluation at the worst of the housing bust. That means prices are three-fourths of the way back to normal.

Delinquency and foreclosure rates also were much improved. According to Trulia and Black Knight, the national delinquency and foreclosure rate was 74 percent back to normal in August, the same as one quarter ago and up from 56 percent one year ago. The decline in defaults and foreclosures has helped stabilize the financial system and hard-hit neighborhoods.

The housing market right now

The housing market right now

Prices should stabilize this year.  Lender’s regulation, consumer confidence, investors tapering purchases, local economics, and rising home prices have forced participants to continually adjust to a market that has been anything but stable.

imagesCA9ELC9MGenerally speaking, we see price growth, which should help boost the confidence and purchase activity from buyers on the fence. Looking at home price trends by tier, it’s apparent the impact of investor activity has been concentrated in the low price tier segment.   There is a good price growth potential and could motivate enough buyers to sustain an overall rate of home price growth consistent with historical norms.

Credit and affordability issues remain. Mortgage rates have dropped across all loan types including FHA loans, USDA loans, VA loans, and conventional loans backed by Fannie Mae and Freddie Mac, and 30-year rates are at their best levels of 2014.

 

It is Officially unaffordable to rent

According to the latest real estate market report from Zillow, homes remain more affordable to buy in 94 of the country’s 100 largest metros compared to historic averages. On the other hand, renting is more expensive than ever in 88 of the country’s 100 largest markets.

“The affordability of for-sale homes remains strong, which is encouraging for those rent-vs-buybuyers that can save for a down payment and capitalize on low mortgage interest rates. But the health of the for-sale market is directly tied to the rental market, where affordability is really suffering” said Zillow Chief Economist Stan Humphries.

Home values jumped 6.5% year-over-year, while national rents increased 2.8% for the same time.