Archive for January, 2017

Still on the Fence? U.S. Home Prices are Still Rising

Tuesday, January 31st, 2017

The new housing report was released yesterday by Case-Shiller, indicating that U.S. home prices are still rising. Of course this is really area dependent, but if you are a potential buyer or seller you might feel worried, and justifiably so. Keep reading for important information and advice.

The report covers major metropolitan cities and states that prices in these areas rose by 5.27% in November – above expectations of economists, and also up from the previous month of 5.1%. What does this mean for buyers and sellers? Let’s take a look at some important considerations.

Local markets: Of course these studies are general and tend to focus on big cities, so it is important that you contact an experienced real estate agent in your local market to see what is going on in the area. But, the thing to take away from this data is that prices are not easing up. Combine that with the next factor…

Inventory is still very low: Again, your local market must be studied to get an accurate glimpse and set expectations (your real estate agent can help with this), but using my local North San Diego market as an example I know that this is painfully true. I have buyers who simply cannot find homes, and multiple offer situations in some categories – like properties under $600,000 – are still the norm. With low inventory and prices staying put or rising, a buyer does not benefit from waiting to purchase, especially considering the next factor…

Springtime is coming: Traditionally the “hot” season for housing, spring and summer are just around the corner. But in my view we are already in the heat of things. Hopefully more inventory will pop up as we head into that “busy” season, but honestly I think the entire last year and especially this Fall and Winter, can be considered busy in housing – at least here in San Diego. Waiting until Spring could put buyers in even more of a quandry, bringing an  increase in the buyer pool: more competition can drive prices up again.

The National Home Price Index also rose by 5.6% annually – up from 5.5% the previous month. High demand is causing these prices to continue on an upward trend. It is important to note, as some doubters or “bubble-talkers” as I call them, may believe, that these trends are NOT similar to those that occurred prior to the last housing crisis in the early 2000s.

How is this market different than that prior to the last crash?

1. Factors driving prices are not the same. Prior to the crash people were driven by speculation and anticipation of growth. Instead, healthy market factors like a strong job market and low mortgage rates are driving this market.

2. Lending is stricter. Lending requirements are not as loose as they were during the time prior to the last housing crash, so not everyone can qualify for a loan.

3. Demand is high but supply is not. Prior to the last market crash, there is a much lower supply of inventory in most areas. It is not so easy to find property to purchase. Many would-be sellers are afraid to sell, as they don’t know where they will move if there is such low supply and so much demand – so it’s a great time to be a seller if you have the time to wait it out on a subsequent purchase.

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The moral of all this information is that if you are a potential seller you are in a great position. But if you have to buy after selling you need to have a “plan B” in place – e.g. stay in a furnished month to month apartment or temporarily move in with a relative or friend will put these people in ideal situations to sell and wait for the right home. But buyers have it a bit tougher – the best advice I can give is to BE PREPARED. Get preapproved, start looking at everything in your price range and desired area – even those homes that may not be as upgraded as you like or in the exact neighborhood you wanted. Do your homework and be ready to pounce once you find that “right” home.

 

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New Listing: Upgraded Oceanside Townhome Close to Beach/Downtown

Thursday, January 19th, 2017

Gorgeous upgraded end unit Windward townhome – largest model in complex with cathedral ceilings, patio, balcony, mountain views. Stunning kitchen with granite counters, stainless steel appliances including beverage fridge and refrigerator, custom paint, crown molding and 5″ baseboards throughout. Optional 4th bedroom/den/office downstairs, wood flooring on stairs, master bath with oversized spa tub – clean and gorgeous! Gated complex, ample storage, attached 2 car garage, blocks from downtown Oceanside and beach.

Features Include:

– 3 bedrooms plus optional 4th downstairs bedroom, 1776 square feet

– Largest model in complex

– Granite kitchen with stainless appliances, refrigerator and wine fridge, upgraded
cabinetry and fixtures
– Designer tile flooring downstairs, wood floors on staircase and upper hallway
– Large living room with fireplace and hidden storage area
– Gorgeous master bathroom with oversized jacuzzi tub and towel dryer
– Walk in closets in all bedrooms

– Custom paint throughout

– Crown molding, 5″ baseboards, high ceilings

– Tons of storage

– Views out to hills, mountains and canyons

– Downstairs patio and upstairs balcony

– Attached 2 car garage

– Gated, quiet  complex with pool, spa and clubhouse

– Low HOAs and no mello roos
– Washer, dryer, towel dryer and refrigerators convey
– Only a few blocks to downtown Oceanside and the beach
Please call Broker Rachel LaMar with questions or to schedule a showing at 760-310-9466. This is s short sale subject to lender approval. To view more photos and see a virtual tour please click here.
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FHA Annual Mortgage Insurance Premiums Reduced

Wednesday, January 11th, 2017

By Elvin J. Wesley, President and Broker of Ranch and Coast Mortgage Group

What a great way to start the week and 2017!!!

Monday morning HUD announced that it had achieved the balance of its statutory operational goals and as a result of that it requires a reduction of the Annual MIP charged. This exciting announcement from HUD yesterday morning that represents a 25 basis points improvement on most FHA Loans (not to interest rate, but to the Annual Mortgage Insurance Premium charged by HUD on FHA loans)

The Revised MIP schedule is effective for Endorsements of Mortgages with a Closing / Disbursement date on or after January 27, 2017. Closing / Disbursement date is defined as the later of the date of the signing of the Mortgage or the Disbursement of the Loan Proceeds as is entered in FHA Connection. Unlike changes in the past the change is effective based on the closing date and not the case number assignment date!
The Revisions applies to all FHA Title II Forward Programs excluding Mortgages insured under the National Housing Act section 247 (Hawaiian Homelands).

Here is a Summary of the changes

What does this mean in regards to $$…payment reduction when a buyer/borrower is purchasing a home?

Example:

Old – $550K base loan amount based on 0.85% MIP = $389.58 per month

NEW  – $550K base loan amount based on 0.60% MIP = $275.00 per month

That’s a $114.58 reduction in MIP payment, which means lower overall payment for buyers/borrowers and more BUYING power!

ALSO…..

On November 23rd the Federal Housing Finance Agency (FHFA) announced that the maximum conforming loan limits for Fannie Mae and Freddie Mac in 2017 will increase, which of cources has now taken place. This will be the first increase in the baseline loan limit since 2006.  In higher-cost areas, higher loan limits will be in effect as shown below.

This change has already taken place for FHA and VA loans limits as well.

2017 Conforming and High Balance Loan Limits-

SAN DIEGO NEW LIMITS $424,100 Conforming and $612,500 High Balance

LOS ANGELES NEW LIMITS $424,100 Conforming and $636,150 High Balance

ORANGE COUNTY NEW LIMITS $424,100 Conforming and $636,150 High Balance

*See attached spreadsheet for more counties and limits for 2-4 unit properties

Conforming:

 

Number of Units Maximum base conforming loan limits for properties NOT in Alaska, Hawaii, Guam & U.S. Virgin Islands Maximum base conforming loan limits for properties in Alaska, Hawaii, Guam & U.S. Virgin Islands
  2017 2016 2017 2016
1 $424,100 $417,000 $636,150 $625,500
2 $543,000 $533,850 $814,500 $800,775
3 $656,350 $645,300 $984,525 $967,950
4 $815,650 $801,950 $1,223,475 $1,202,925

 

High Balance/Super Conforming:

 

Number of Units Minimum/Maximum Original Loan Amount Properties in Alaska, Hawaii, Guam & U.S. Virgin Islands
  Minimum Maximum Minimum Maximum
1 >$424,100 $636,150 >$636,150 $954,225
2 >$543,000 $814,500 >$814,500 $1,221,750
3 >$656350 $984,525 >$984,525 $1,476,775
4 >$815,650 $1,223,475 >$1,223,475 $1,835,200

 

Please refer to the full County Loan Limits list attached or just contact Elvin Wesley at Ranch and Coast Mortgage

(CA DRE license: 01316249, NMLS: 234795):

c 760.580.1733

760.230.2042

760.487.1295

f 866.683.5399 toll free

www.rcmloan.com

ewesley@rcmloan.com

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Trending San Diego Real Estate News

Monday, January 2nd, 2017

San Diego is definitely a desirable place to live, and as one of the most visited places in the United States it’s no wonder why – we have the best weather, beautiful  beaches, great food and nightlife, culture, incredible places to walk and hike, and so much more. There is nowhere else I’d rather live! sandiego

As we head into the new year here are some of the happening stories highlighting San Diego and the local real estate market.

San Diego Ranked 5th “Hottest” Real Estate Market in U.S. – Realtor.com ranked San Diego as the 5th “hottest” real estate market in the country. This is great news for the local market. The story pointed out that demand has especially grown since the election, likely due to increasing mortgage interest rates, and that the low supply levels heading into the new year will keep prices high – great news for sellers. Median sales time is 53 days in San Diego county, compared to 88 days nationwide.

San Diego Remains Top Destination for Foreign Buyers – We still rank as one of the top places for foreign buyers, especially those from China and Canada. San Diego is up there with Los Angeles, Orange County and San Francisco as the top places to purchase property in California. Speculation that this trend will continue in 2017 as many feel the US economy and the dollar will strengthen.

San Diego Home Sales Could be Protected by State Supreme Court Ruling – I have blogged about “dual agency” many times, and my position has always been that real estate agents should not be able to represent both the buyer and seller in a real estate transaction. The reason for this is that I feel it is virtually impossible to exercise a fiduciary duty to both parties – it can create too many conflicts of interest. The California Supreme Court seems to be coming closer to agreeing with this sentiment.

In November the court ruled that “a listing broker has a fiduciary responsibility to the buyer and the seller when his brokerage firm is representing both, setting a significant precedent for obtaining and sharing information in residential and commercial transactions.” While there are currently disclosures required which allow such situations, this ruling could be paving the way to no longer discontinuing them in the future…stay tuned for more.

If you need any information about property in the San Diego county area please feel free to contact me. Happy New Year!

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