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Bay Area Connect

Guide To Santa Clara County Real Estate

By Thomas Feng | Agent in 95051

TUESDAY REAL ESTATE & FINANCIAL MARKET NEWS ROUNDUP 10/9/12

It’s Tuesday News Day and these are this weeks hot topics concerning the real estate market, the financial market, general market conditions, and interest rates.

San Diego Union Tribune
 – When will the housing market be “corrected?”

The housing recovery in California is expected to continue through to 2013, but the market won’t be “corrected” until as far off as 2017, according to the California Housing Market Forecast released by the CALIFORNIA ASSOCIATION OF REALTORS.

Making sense of the story

  • Homes sales and prices are expected to keep rising, but lower-than-normal inventory levels and underwater mortgages are key hindrances to a faster recovery, according to Leslie Appleton-Young, chief economist with the CALIFORNIA ASSOCIATION OF REALTORS®.
  • Home sales are forecasted to rise 1.3 percent to 530,000 units next year, based on the projected tally of 523,300 units this year. That’s a slower growth than that of 2011 to 2012, which is roughly 5 percent.
  • The momentum in prices also is expected to carry through to 2013, a result of pent-up demand for a limited housing supply. The median price could rise 5.7 percent to $335,000 in 2013. That’s lower than the projected price growth from 2011 to 2012, an estimated 11 percent. The state has a 3.2 months’ worth of housing inventory, significantly lower than the 16 months’-plus supply of saw roughly four years ago.
  • “Pent-up demand from first-time buyers will compete with investors and all-cash offers on lower-priced properties, while multiple offers and aggressive bidding will continue to be the norm in mid- to upper-price range homes,” said Appleton-Young in the report.
  • Appleton-Young says what underwater borrowers throughout the state will do — be it selling or holding — will have a big effect on next year’s housing recovery.
  • Other things to watch next year that will have a bearing on the housing market include: policies related to the state,local and federal governments; and housing and monetary policies, Appleton-Young said.

Read the full story at UT San Diego

Forbes – Greatest real estate bubble In modern history not done bursting

Never in history have so many middle class households been able to borrow so much against real estate at such low mortgage rates. Read the full story at Forbes

The New York Times – On big real estate sites, study finds gaps in listings

A study underwritten by Redfin released on Wednesday seeks to compare the comprehensiveness and accuracy of real estate listings on five sites, Zillow, Trulia, Redfin and the sites of two regional real estate brokerage firms, Windermere and Long & Foster. Read the full story at NY Times

DSNews – Recovery finds “footing” as foreclosures fall

Completed foreclosures continued their progressive decline, and foreclosure inventory fell to its lowest level since April 2010, CoreLogic reported Thursday. Read the full story at DS News

HousingWire – NAHB/First American improving market index sets record high

The number of housing markets on the National Association of Home Builders/First American improving markets index surpassed 100 in October. Read the full story at HousingWire

CNNMoney – Mortgage rates hit record low again

The average 30-year fixed-rate mortgage fell to an all-time low of 3.36%, according to a weekly survey by mortgage finance backer Freddie Mac. The rate dropped from 3.40% the previous week. Read the full story atCNN Money

Mercury News – Mortgage refinances surge to highest level since April 2009

A Mortgage Bankers Assnociation index of refinance applications jumped 20 percent last week compared with the week before. Applications to purchase homes were up by 4 percent, the trade group said in a weekly survey released Wednesday. Read the full story at Mercury News

What you should know

  • The rate lock might be the most complicated issue mortgage borrowers need to understand.
  • A rate lock is a guarantee that the lender will offer the borrower a specific combination of interest rate and points. A point is a fee or rebate equal to 1 percent of the loan amount.
  • Also essential to a rate lock is a time period, typically 10, 15, 30, 45 or 60 days.
  • A rate lock protects the borrower from rate fluctuations for the duration of the lock period. If market rates rise after the rate is locked, the borrower will still get the lower rate, to the lender’s detriment.
  • But there’s a downside: If rates fall after the rate is locked, the borrower might not be able to take advantage of that opportunity.

If you have any questions about the current real estate market give me a call at (408) 840-3852 or shoot me an email at Thomas.Feng@gmail.com to discuss your situation and how to get the most out of the current real estate housing market.

Because of the many legal and tax situations that can arise through the sale and purchase of real estateALWAYS consult with your ATTORNEY or ACCOUNTANT before making ANY decisions in ANY transaction

Copyright 2010-2012 by Thomas Feng, All Rights Reserved. You may reblog or republish.

* THIS ARTICLE WAS POSTED AT Thomas Feng’s Bay Area Connect *

Comments

By Timothy M. Garrity,  Tue Oct 9 2012, 13:30
Thanks for sharing, Thomas.

Timothy M. Garrity - REALTOR | http://PhillyUrbanLiving.com
By Thomas Feng,  Tue Oct 16 2012, 11:44
Thanks for checking out my blog post Timothy, I appreciate it!

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