More Renters Are in Financial Trouble!

DAILY REAL ESTATE NEWS | MONDAY, MAY 04, 2015

More than one in four renters use at least half of their household income to cover housing and utility costs, according to a new analysis of Census data by Enterprise Community Partners. The number of renters who are constrained financially from growing household expenses has surged 26 percent since 2007, now at 11.25 million.

The Rental Hardship

Why Renters May Be in Trouble

More Americans Squeezed by Household Costs

'Affordability Issues Are Real, Major Hurdle'

"It means making really difficult trade-offs," says Angela Boyd, a vice president at Enterprise Community Partners. "There are daily financial dilemmas about making their rent or buying groceries."

Household incomes have not kept pace with rental increases. A recent analysis by the National Association of REALTORS® showed a widening gap between rental costs and household incomes that is widening to unsustainable levels across the country. NAR's analysis showed that over the last five years a typical rent increased 15 percent, while the income of renters grew by only 11 percent.

In some parts of the country, renters are facing even greater hardships from escalating rental costs. In California, Florida, New Jersey, and New York, more than 30 percent of renters are devoting at least half their incomes to housing and utility expenses, according to the Enterprise Community Partners analysis. At least 20 percent of renters in every state in the U.S. – except for Alaska, South Dakota, and Wyoming – are facing similar high costs relative to income, the analysis found.

Other recent studies are showing the hardships renters now face too from escalating costs. The U.S. Department of Housing and Urban Development estimated that 12 million renters and home owners spend at least 50 percent of their income on housing.

Source: "1 in 4 Renters Use Half Their Pay for Housing Costs," The Associated Press (May 3, 2015)

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Realtor.com®: 'This Is No Housing Bubble!

DAILY REAL ESTATE NEWS | WEDNESDAY, APRIL 29, 2015

Home prices are rising at a more rapid pace than they were just a few months ago, as demand outpaces supply. Existing-home sales surged 9 percent year-over-year in March and home prices were up 8 percent over last year, according to the National Association of REALTORS®. What’s more, with tight inventories plaguing many markets, the median list price in March climbed 11 percent over last year, reaching $220,000, realtor.com® reports.

Existing-home sales report:Home Sales Surge to 18-Month High

With home prices heating up again, could the housing market be heading for another bubble?

“During the peak years of the housing bubble, from 2003 to 2005, the data on supply versus price appreciation looked very similar to what we are seeing now,” writes Jonathan Smoke, realtor.com®’s chief economist, in recent commentary at the site. “But there are key differences, which is why I’m confident that on the national level, this is no bubble.”

Smoke says these home price increases will stick because the market is correcting for severe price declines in the recent past. Prices rose 7 percent and 12 percent in 2012 and 2013, respectively. Median prices have climbed less than 8 percent on a compounded annual basis over the past three years. On the other hand, from 2002 to 2005, median prices rose 10 percent on a compounded annual basis – and had no justification of a bounce from a prior decline, Smoke says.

“On an inflation-adjusted basis, we are 30 percent beneath the peak set in 2005,” Smoke notes. What’s more, “relative to rents or incomes, median home prices are not ‘unhinged’ from long-term averages,” Smoke writes. In 2005, the price-to-rent ratio was 35 percent higher. Currently, the price-to-income ratio is where it was in 2001 and it is about 30 percent below where it was in 2005.

Smoke also notes that during the housing bubble, mortgage financing saw rapid expansion, and flipping activity based on speculative investing soared—neither of which are occurring now.

“Today’s higher prices are only to be expected as the economy improves and first-time buyers gradually return to the market,” Smoke writes. “Eventually, those higher prices should encourage more owners to list their homes and builders to start construction on new housing—which in turn should solve the problem of supply.”

Source: “Home Prices Are Climbing Faster and Faster, but This Is Not a Bubble,” realtor.com® (April 24, 2015)

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OPEN HOUSE TODAY 4/25/2015 From 11am to 5pm @ 2387 Atchison ST, San Bernardino 92410

Spacious family home in San Bernardino includes 3 bedrooms, 2 baths, in cul de sac, 2 car garage with back door and house entrances, new roof, washer dryer hook ups, central A/C, dual paned windows, new carpet in the office or play room, tile flooring, gas fireplace, fresh paint, new kitchen counters and cabinets, new carpet in all the bedrooms, 2 glass sliding windowed doors for entrance to the back yard from the dining area and master bedroom the back yard includes a patio, newer storage shed, gas fire pit, palm, lemon, plum, orange, apple, peach trees many upgrades including ceiling fans throughout the home located near Colton, and Rialto shopping, dining, 10 and the 215 freeways, schools, and other amenities home to appreciate.

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Robert De La Rosa
"CALL NOW 909.271.5640"
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Coldwell Banker Town & Country
501 W Redlands Blvd
Redlands CA, 92373

CalBre 01435824

Home Buyers Push Up Loan Demand!

DAILY REAL ESTATE NEWS | WEDNESDAY, APRIL 22, 2015

Mortgage applications were on the rise last week, as home buyers remain behind the upswing in demand. The Mortgage Bankers Association reported that applications for home purchases, viewed as a leading indicator of future home sales, rose 5 percent week-over-week on a seasonally adjusted basis for the week ending April 17.

Applications for home purchases are now 16 percent higher than the same week one year ago.

"Purchase applications increased for the fourth time in five weeks as we proceed further into the spring homebuying season," says Mike Fratantoni, chief economist for the MBA. "Applications for FHA purchase loans remained strong as well."

Overall, MBA's mortgage application index, which reflects combined applications for refinances and home purchases, rose 2.3 percent last week. Applications for refinances increased only 1 percent last week but remain up 41 percent from a year ago due to lower mortgage rates. A year ago at this time, the 30-year fixed-rate mortgage was significantly higher, averaging around 4.25 percent.

The average 30-year fixed-rate mortgage has mostly hovered around historical lows for the past few weeks. Last week, it dropped slightly to 3.83 percent, its lowest level since January, MBA reports.

Source: “Mortgage Applications Rise 2.3%, Led by Homebuyers,” CNBC.com (April 22, 2015)

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Robert De La Rosa
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Redlands CA, 92373

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Signs Now Point to a ‘Sustainable’ Recovery!

DAILY REAL ESTATE NEWS | MONDAY, APRIL 13, 2015

Last year, the spring selling season failed to meet market expectations, but many housing analysts say that 2015 will be different and the market may have finally reached a long-awaited "sustainable recovery."

Time To Sell?

What's Trending Now in Real Estate

REALTORS® More Confident for the Spring

A First-Time Buyer Comeback?

In cities that have seen major job growth, home sales surged to double-digit gains in March year-over-year. For example, Seattle has seen a 17.7 percent increase in sales year-over-year and a 20.3 percent sales gain has occurred in Charlotte, N.C. In Jacksonville, Fla., sales of existing homes were up 18 percent in March year-over-year.

"It feels like 2005 again," Sanford Davidson, a Redfin real-estate agent in Jacksonville, told The Wall Street Journal. "Homes are moving that quickly, especially if they’re in the right neighborhood and priced right."

Home sales are expected to post further gains across the country too, according to the National Association of REALTORS®' pending home sales index, which tracks signed home contracts. The pending home sales index in February surged 12 percent year-over-year. Pending sales were up 30.6 percent in Houston; 30 percent in Jacksonville, Fla.; 27.8 percent in San Diego; 24.2% in Seattle; and 23.7 percent in the Riverside and San Bernardino markets in California.

Sales of newly built homes in February reached its strongest pace in seven years. New-home starts were at a seasonally adjusted annual pace of 539,000 in February, the Commerce Department reported.

The uptick in home sales in recent months is early indication that the "market is continuing to improve at a very steady pace," Stuart Miller, chief executive of Lennar Corp., said in a conference call with investors last month. The nation's second largest homebuilder reported an 18 percent sales gain in the quarter ending Feb. 28, compared to a year earlier.

Last year, the spring selling season failed to meet market expectations, with sales of new and existing homes in 2014 mostly flat. The dismal selling season last year was most attributed to, at the time, continued weak consumer confidence, steep home price increases from the previous year, and an uneven economic recovery, The Wall Street Journal reports.

But housing analysts believe 2015 is different. Here are a few reasons why:

• An improved economy: The economy has added 3.1 million jobs in the past year alone. Also, low gas prices lately have helped to lift consumer confidence.
• Mortgage lending is easing: Lenders have shown signs of easing tight borrowing requirements and costs (see FHA Lowers Its Mortgage Costs and 3% Down Payments May Be Game Changer).
• Boomerang buyers return: Former home owners who had lost their home to foreclosure in the aftermath of the financial crisis have repaired their credit and many are stepping back in to try to qualify to buy a home again.

Source: "Housing Market Sees Hopeful Signs of Spring," The Wall Street Journal (April 9, 2015)

An Expert In Your Court
Robert De La Rosa
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Coldwell Banker Town & Country
501 W Redlands Blvd
Redlands CA, 92373

CalBre 01435824

OPEN HOUSE TODAY SATURDAY 4/11/2015 11 to 3pm 2387 Atchison ST, San Bernardino 92410

Spacious family home in San Bernardino includes 3 bedrooms, 2 baths, in cul de sac, 2 car garage with back door and house entrances, new roof, washer dryer hook ups, central A/C, dual paned windows, new carpet in the office or play room, tile flooring, gas fireplace, fresh paint, new kitchen counters and cabinets, new carpet in all the bedrooms, 2 glass sliding windowed doors for entrance to the back yard from the dining area and master bedroom the back yard includes a patio, newer storage shed, gas fire pit, palm, lemon, plum, orange, apple, peach trees many upgrades including ceiling fans throughout the home located near Colton, and Rialto shopping, dining, 10 and the 215 freeways, schools, and other amenities home to appreciate.

An Expert In Your Court
Robert De La Rosa
"CALL NOW 909.271.5640"
"Get Qualified Now By A Loan Professional" 

www.TheCaliforniaPropertyConnection.biz 

Coldwell Banker Town & Country
501 W Redlands Blvd
Redlands CA, 92373

CalBre 01435824

Mortgage Rates Take Another Dip!

DAILY REAL ESTATE NEWS | FRIDAY, APRIL 10, 2015

Average fixed-rate mortgages moved lower this week, amid a weaker than expected jobs report in March, Freddie Mac reports in its weekly mortgage market survey.

"Mortgage rates fell across the board following last week's disappointing employment report," says Len Kiefer, Freddie Mac’s deputy chief economist. The U.S. economy added 126,000 new jobs in March, well below market expectations of 247,000 jobs, Kiefer notes.

Freddie Mac reports the following national averages with mortgage rates for the week ending April 9:

• 30-year fixed-rate mortgages: averaged 3.66 percent, with an average 0.6 point, dropping from last week's 3.70 percent average. Last year at this time, 30-year rates averaged 4.34 percent.
• 15-year fixed-rate mortgages: averaged 2.93 percent, with an average 0.6 point, down from a 2.98 percent average last week. A year ago, 15-year rates averaged 3.38 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 2.83 percent, with an average 0.5 point, dropping from last week’s 2.92 percent. Last year at this time, 5-year ARMs averaged 3.09 percent.
• 1-year ARMs: averaged 2.46 percent, with an average 0.4 point, unchanged from last week. A year ago, 1-year ARMs averaged 2.41 percent. 

Source: Freddie Mac

An Expert In Your Court
Robert De La Rosa
"CALL NOW 909.271.5640"
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Coldwell Banker Town & Country
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Redlands CA, 92373

CalBre 01435824