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Bay Area Connect

Guide To Santa Clara County Real Estate

By Thomas Feng | Agent in Santa Clara, CA


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.

Los Angeles Times – Potential borrowers eager to find lenders with superior service

A poll by Carlisle & Gallagher Consulting Group found that more than a third of potential borrowers would be willing to pay a higher rate if the mortgage came with superior service. The survey didn’t say how much more the 34 percent were willing to pay, but it did find that this group is a frustrated bunch.

Making sense of the story

  • More than half think the process is too slow. A third find it impossible to track the status of their loan application, an equal percentage say it is too difficult to talk with their lenders, and a quarter don’t believe the advice they’re given.
  • A starting point for borrowers is to ask their real estate agent which lenders offer the best service. Agents know which lenders keep their promises and close quickly without incident. Another option is to ask friends, co-workers, and relatives about their experiences.
  • Beyond that, prospective borrowers should look for several attributes that will help them find a responsible company or accessible loan officer.
  • Borrowers should look for a consistent point of contact. Federal regulators have already settled on this as a requirement for loan servicers – the companies that collect payments, disburse funds to cover property taxes, and homowners insurance and otherwise administer loans.
  • Dealing with a company that provides up-to-date status information also is beneficial. There’s nothing worse than chasing down an unresponsive loan officer to make sure this document or that report has been received, or to find out whether underwriting has looked at the application.

Read the full story at Los Angeles Times

Bloomberg – Home prices rise in 81 percent of U.S. cities as markets recover

Prices for single-family homes rose in 81 percent of U.S. cities as the property market extends a recovery from the worst crash since the 1930s. Read the full story at Bloomberg

The New York Times – Borrowing to build your own home

As the housing market begins to improve, new homes are popping up again in prime areas. If lenders are staying away from speculative building projects, some are willing to finance new construction for buyers who put substantial money down. Read the full story at New York Times

The Los Angeles Times – Wells Fargo sends refunds to some FHA mortgage customers

Thousands of Wells Fargo home loan customers recently received a surprise in the mail: Refund checks from the bank, along with a letter saying they had paid unnecessary fees for their mortgages. Read the full story atLos Angeles Times

Mercury News – Possible end of mortgage tax deduction worries homeowners

Tax reform has been a frequent campaign issue this year, with tax cuts enacted under former President George W. Bush scheduled to expire at the end of this year. Among the many changes discussed is one beloved by homeowners – the mortgage interest deduction. Read the full story at Mercury News

Bloomberg – Foreclosures drawing cash at 401k returns sag

As the housing market recovers, investors are following the lead of private-equity firms, investing in properties they can pick up cheaply, rent and sell when values rise enough. Read the full story at Bloomberg

Mercury News – After housing crash, people want new styles of houses
As the real estate market starts to recover, home builders, especially those in California, are betting that many buyers will want new houses that are different from the big suburban tract homes that proliferated during the boom. Read the full story at Mercury News

Talking Points

  • Favorable home prices and record-low interest rates combined with high demand and a severe shortage of available housing have created a highly competitive housing market in California, with nearly six in ten home sales receiving multiple offers, according to the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) “2012 Annual Housing Market Survey.”
  • More than half (57 percent) of home sales received multiple offers in 2012, the highest in at least the past 12 years, with each home receiving an average of 4.2 offers, up from 3.5 offers in 2011.
  • Lower priced homes – typically real estate-owned (REO) or short sales – attracted more multiple offers than equity sales. Seven of 10 REO sales and short sales received multiple offers, while only half of equity sales received more than one offer.

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 *

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