Good real estate news: Home equity is rising again

Posted on Feb 19, 2010 by Paul Kaplan

Summarized from the Washington post….
Numerous articles have reported that homeowners are underwater and that strategic defaults are increasing.  However, a little known statistic by the Federal Reserve shows that home equity again is on the rise.
 
MAKING SENSE:
 
The Federal Reserve conducts substantial research on mortgage balances and home-value changes in hundreds of local markets nationwide and reports its finding quarterly.  According to the Fed’s most recent “flow of funds” survey, homeowners’ net equity increased by nearly $1 trillion compared with the recession’s lowest point between the first and third quarters of 2009.  From June 30 to Sept. 30, net equity rose by $418 billion.
According to a report by Zillow.com, the overall negative equity rate among U.S. homeowners remained flat in the fourth quarter at 21.4 percent.  This report, combined with other housing factors and studies, may indicate that the unprecedented reduction in home equity is shifting.
Some homeowners, especially those in areas with high foreclosure rates, are choosing to strategically default on their mortgages, even though they can afford the mortgage.  Many homeowners who choose this approach do so because they do not see an economic rationale in continuing to make their mortgage payments.  Homeowners considering this option should be aware of the negative effect it will have on their credit status.  Foreclosures can remain on credit reports for up to seven years, likely increasing the interest rates the consumer pays for credit, and making it more difficult to receive approval on a new mortgage loan.

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Real Estate market continues to improve

Posted on Dec 14, 2009 by Paul Kaplan

Two articles I reviewed this weekend that are both worth reading:

Stupid or broke? – An interesting article written by Marc Roth of BusinessWeek describing the nearly once in a lifetime buying opportunities in residential real estate. Sometimes feedback from a third party stimulates otherwise difficult conversations surrounding pricing with our sellers or a sense of urgency with our buyers. http://www.businessweek.com/lifestyle/content/dec2009/bw2009127_753974.htm

Phase 2 of the Market’s Comeback – An interesting editorial in the New York Times yesterday written by Paul J. Lim. Words of encouragement and caution. In the equity markets, the small caps rallied first, followed by the large caps. As we enter year-end and 2010, investors seem to be cautious of a correction of up to 10% before the bull gains more momentum. So while we seem to be poised for volatility in the equity markets, real estate seems to be stabilizing and, just maybe, ready for modest growth. http://www.nytimes.com/2009/12/13/your-money/13fund.html.

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Congress extends homebuyer credit

Posted on Nov 6, 2009 by Paul Kaplan

Thursday, November 05, 2009

President Obama is expected to sign a bill passed by Congress today extending and expanding the first-time homebuyer tax credit to homes under contract before May 1.

The credit, equal to 10 percent of a home’s purchase price, remains capped at $8,000 for first-time homebuyers, but income limits have been raised.

Congress also approved an expansion of the credit to allow homeowners who have been in a principal residence for at least five of the last eight years to claim a tax credit of up to $6,500 if they sell that home and buy another.

That will provide an incentive not only for entry level, but move-up buyers — a goal supported by real estate industry groups, including the REALTOR® Association.

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Palm Springs ranks #2 in “Best Place to Retire” survey

Posted on Sep 11, 2009 by Paul Kaplan

Palm Springs, Calif.

The city of Palm Springs was ranked No. 2 in CNNMoney.com and Money Magazine’s list released Tuesday of the top 25 best places to retire in the U.S.

The article reports “It’s easy to see the appeal of living in the desert town beloved by Frank Sinatra’s Rat Pack. Residents get 332 days of annual sunshine, 360-degree views of the mountains, and as much culture and design as they can pack in.”

Those of us that live here, retired or not, most likely agree!

Here are the others on the list:

Top 10 retirement destinations

From CNNMoney.com and Money Magazine’s top 25 list:

1. Port Charlotte, Fla.
2. Palm Springs
3. Traverse City, Mich.
4. Pinehurst, N.C.
5. Surprise, Ariz.
6. Boulder City, Nev.
7. Fredericksburg, Texas
8. Savannah, Ga.
9. Lakewood, Colo.
10. Philadelphia, Pa.

To read the full article, click the following:

http://money.cnn.com/galleries/2009/moneymag/0909/gallery.bpretire_top25.moneymag/2.html

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Palm Springs Home sales up over 40% in July

Posted on Aug 31, 2009 by Paul Kaplan

Click on the graph to see a larger version.

The Desert Sun reported that Coachella Valley  Home Sales were up 17.4% in July.

July home sales, like June, saw a significant increase in activity. Also like June, most of the activity is at the low end. The actual number of sales is well ahead of last year. In South Palm Springs (92264) July sales were up 21% but prices were down 27%. In central Palm Springs (92262) sales in July were up a surprising 43%, but prices were down an equally amazing 43.,5%.
 
Buyers are snapping up bargain priced properties. It is common for properties to attract multiple offers with prices going way over asking. There’s been a surge in activity in San Diego, Los Angeles & San Francisco as well, which is good news for Palm Springs area  homeowners who should begin to see the trickledown effect.

Click here to read the full article in The Desert sun, http://www.mydesert.com/apps/pbcs.dll/article?AID=2009908290358

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Home prices on the rise in California

Posted on Aug 28, 2009 by Paul Kaplan

Home sales increased 12 percent in July in California , according to the latest sales and price report released by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).

home for sale

First time tax credits: Many housing analysts believe the first-time home buyers tax credit has helped fuel home sales in recent months.  According to a survey of first-time home buyers, nearly 40 percent reported they would not have purchased a home if the tax credit was not offered.

The median price of an existing, single-family detached home in California  rose 3.9 percent compared with June.  The median price statewide during July 2009 was $285,480.  July marked the fifth consecutive month of month-to-month increases in the median price and the smallest yearly decline in 19 months.

C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in July 2009 was 3.9 months, compared with 6.9 months for the same period a year ago.  (This is actually indicative of the tides turning and it becoming a seller’s market)

Thirty-year fixed-mortgage interest rates averaged 5.22 percent during July 2009, compared with 6.43 percent in July 2008, according to Freddie Mac.

Click here to read the full article.

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Palm Springs Real Estate sales continue to rise

Posted on Jun 19, 2009 by Paul Kaplan

A busy week for Palm Springs real estate sales as the market builds momentum
Real Estate Sales Activity for Palm Springs, Week Ending 6-14-09

Sales volume is up, consistently increasing over the past few months. As can be seen, the busiest sector of the market remains to be the under $400,000 price range, which represents appox. 90% of this past weeks sales.

Total Sales: 29

Low: $64,217

High: $1,850,000

Median: $321.950

Number of Sales:

Under $200,000 = 11

$200,000 – $300,000 = 9

$300,000 – $400,000 = 6

Over $400,000 = 3

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