June 30, 2017
Ownership hits 50 year low
“The downward trend of home ownership began with the housing bubble burst and subsequent recession starting in late 2007, which resulted in as many as 10 million families losing their homes to foreclosure nationwide, according to the National Center for Policy Analysis. Not only were homeowners unable to pay off existing mortgages, but younger people entering the workforce for the first time were unable to qualify for mortgages, as lenders had to restrict lending practices dramatically,” according to CNBC.
June 29, 2017
County prices outpace U.S. and CA
“Low mortgage rates and lack of homes for sale throughout the nation are continuing to push prices up, wrote David Blitzer, managing chairman of the Index Committee at S&P Dow Jones Indices, in the monthly report.” The San Diego Union-Tribune reports that San Diego County home prices increased 6.6% while prices increased 5.5% nationwide.
June 28, 2017
U.S. pending sales off for third month
Lack of inventory in the affordable price ranges across the country is still having a negative impact on pending home sales according to the National Association of REALTORS. “Pending home sales in the South declined 1.2 percent to an index of 123.4 in May and are now 1.4 percent below last May. The index in the West subsided 1.3 percent in May to 98.6, and is now 4.5 percent below a year ago. ”
California pending sales off for fifth month
” California pending home sales fell for the fifth consecutive month, suggesting the state’s housing market may underperform over the next few months, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported. Pending sales in San Diego, San Bernardino, and Los Angeles counties declined from last May, but those counties had drops of less than 5 percent.” It’s all about inventory. How many For Sale signs have you noticed in your neighborhood?
Mortgage application drop 6%
Diana Olick of CNBC reports that, “Mortgage rates have been sitting at a six-month low for the past month, barely moving, but mortgage demand is still shrinking. Total application volume fell 6.2 percent last week, compared to the previous week. The Mortgage Bankers Association’s seasonally adjusted application index is now down 17 percent compared to the same week one year ago.” It’s not so much that buyers aren’t ready to buy, there’s just no inventory.”
June 21, 2017
County median price hits $530,000
“The San Diego County median home price hit $530,000 in May, breaking the nominal record set last month and increasing 8.2 percent in a year, real estate tracker CoreLogic reported,” reports the San Diego Union-Tribune.
June 14, 2017
1% down payment mortgage
So, here we go again. The San Diego Union-Tribune reports on a new mortgage offering by Guild Mortgage that allows for a 1% down payment. These very highly leveraged loans can be a problem when real estate values slip just a little bit creating “underwater” loans.