• Interest rates on long-term, fixed, and adjustable mortgages are at historically low levels. The Fed started cutting interest rates to bolster the economy in September, and recently has turned much more aggressive. In eight days in January, the Fed slashed rates by 1.25 percentage points — the biggest single-month reduction in a quarter-century. Since September, the Fed has cut its federal funds rate - what banks charge each other on overnight loans - by 2.25 percentage points to 3 percent. It also cut its discount rate on direct loans it makes to banks by 1.75 points to 3.5 percent. Rates are expected to move lower at the Fed's next meeting on March 18. Despite all this, mortgage rates are starting to creep up. Consumers should lock in low rates now, before they go higher.
• With more homes on the market for longer periods of time, buyers have more choices when it comes to selecting a home today.
• The foreclosure crisis has motivated the government to create more consumer protections against predatory lenders than previously existed.
• A temporary increase in the conforming loan limit means consumers should soon be able to borrow at lower interest rates for higher-priced homes. Prior to the increase, the conforming loan limit was $417,000. The spread between jumbo, or non-conforming mortgage loans and conforming mortgages is about 1.2 percentage points.
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Thursday, February 28, 2008
Things You Should Know...
Median Sales Prices
Calif. median home price - January 08: $430,370 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region January 08: Santa Barbara So. Coast $1,135,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region January 08: High Desert $234,310 (Source: C.A.R.)
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Wednesday, February 27, 2008
Current Interest Rates
30 Year Fixed Rate / Conforming: 6.125%
30 Year Fixed Rate / Jumbo: 7.0%
7/1 ARM - 7 Year Fixed/23 Year ARM / Conforming: 5.25%
7/1 ARM - 7 Year Fixed/23 Year ARM / Jumbo: 5.875%
5/1 ARM - 5 Year Fixed/25 Year ARM / Conforming: 5.125%
5/1 ARM - 5 Year Fixed/25 Year ARM / Jumbo: 5.50%
Based on Purchase money at 1.0% Point.
Rates are subject to change without notice.
www.TheMMTeam.com
Monday, February 25, 2008
Median Sale Prices
Here are the median sales prices recorded in January for single family homes, condos and new construction in the following communities:
Agoura Hills - $650,000
Calabasas - $1,350,000
Camarillo - $490,000
Fillmore - $450,000
Moorpark - $600,000
Newbury Park - $597,500
Oak Park - $612,500
Oxnard - $407,000
Santa Paula - $314,500
Simi Valley - $455,000
Thousand Oaks - $652,500
Ventura - $480,000
Westlake Village - $808,250
Woodland Hills - $500,000
Source: Data Quick
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It Pays to Prequalify!!!
A powerful edge for a buyer beginning the buying process is to find the right lender. Why at the beginning? To obtain prequalification for a loan. The ideal time to have a lender prequalify you is BEFORE you get into our car to look at property. Then, you know that you can afford the homes you are looking at. We will assist you in selecting a top-quality lender who will then process all of your financial information and help you establish your budget.
When you are “pre-qualled,” not only do you know exactly what you can afford, you will have a signed document from a legitimate, bona fide lender letting a seller know that you are absolutely serious about getting the best price. Pre-qualled buyers also have a definite edge over others who might be submitting competing offers.
The last six months have brought about a great deal of change in the lending industry. It has been estimated that as many as 40% of the borrowers who could obtain financing 6 months ago, could not obtain the same or similar financing today. That fact alone makes the prequalifying process more important than ever.
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Strategies for Selling a Vacant Home
As the real estate market continues to stabilize, sellers may find that their property remains on the market significantly longer than the days of “list today, sold tomorrow.” There is also more competition for buyers. So, it can be frustrating to put your home on the market, expecting a fast sale, only to find that after six months you’re still waiting for an offer. This is especially true if you need to move quickly and leave your unsold home vacant.
Besides creating a marketing challenge, a vacant home can also be a target for vandalism. Here are strategies you can use to hasten a sale and protect your property during the process:
- Instead of producing a spacious appearance, an empty room tends to look smaller than a furnished room. So, leave behind a few select pieces of furniture and keep the window treatments in place. A chair or lamp on a small table will confer a sense of scale and help potential buyers gauge whether their furniture will fit the space.
- If you decide to remove the furniture, have the house cleaned and painted. Furniture, rugs and decorations tend to hide or minimize imperfections. When furniture and artwork have been removed, every blemish and bruise becomes accentuated, faded paint and wallpaper become more noticeable and scratches and nicks stand out.
- Repaint brightly and boldly colored rooms to a neutral tone. What was an eye-popping room when fully-furnished may appear stark and small when empty.
- To thwart unwelcome visits, give the house a lived-in look. Set a couple of lamps on timers, and ask a neighbor or friend check on the house daily to collect mail, park a car in the driveway, and close and open drapes and windows. Continue using a gardening service or hire someone to cut the grass regularly. During the winter months, arrange to have snow shoveled from the walks and driveway.
- If available, consider employing a home manager or house sitter. At little or no cost to homeowners, the house is furnished and decorated for show-to-sell condition. Most companies require home managers to mow the lawn, shovel snow, even pay pool maintenance and utilities. Having someone living on site discourages vandalism, protects against deterioration and weather hazards and may even reduce insurance costs. (Check with your insurance carrier.)
- Leave the utilities connected. Depending on the season, make sure the thermostat in the house is set at a comfortable level. You don't want a potential buyer to run through the home because it is too hot or cold.
- Review your homeowner's insurance policy with your insurance agent to find out what the stipulations and coverage pertain to your vacant home.
- Find a real estate professional with experience selling vacant houses. Often, these sales professionals specialize in relocation. You want to make sure that you are comfortable with your lines of communication. If you will be residing in another town, come up with an agreement on how often your representative will check on the home and what should be done if a problem develops.
Although a vacant house presents certain challenges, it does not need to be difficult to sell.
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Friday, February 22, 2008
Simi Valley Market Trends - January '08
Here are the stats for the number of homes sold in Simi Valley since 2003.
Moorpark Market Trends - January '08
Camarillo Market Trends - January '08
Conejo Valley Market Trend - January '08
Here are the stats for the number of homes sold in the Conejo Valley since 2003. Notice that for January the number is higher than the last two years.
Click on image to enlargeCurrent Interest Rates
30 Year Fixed Rate / Conforming: 6.0%
30 Year Fixed Rate / Jumbo: 6.875%
7/1 ARM - 7 Year Fixed/23 Year ARM / Conforming: 5.125%
7/1 ARM - 7 Year Fixed/23 Year ARM / Jumbo: 5.75%
5/1 ARM - 5 Year Fixed/25 Year ARM / Conforming: 5.0%
5/1 ARM - 5 Year Fixed/25 Year ARM / Jumbo: 5.375%
Based on Purchase money at 1.0% Point.
Rates are subject to change without notice.
www.TheMMTeam.com
Group says more Californians can afford to buy their first home
Some 33 percent of households in the state were able to afford their first home in the last three months of the year, according to the CALIFORNIA ASSOCIATION OF REALTORS®. That’s up from 25 percent in the same three months of 2006. The trade group for real estate agents calculates affordability based on the minimum household income required to make a 10 percent down payment and secure an adjustable interest rate loan at 6.21 percent.
MAKING SENSE OF THE STORY FOR CONSUMERS
• As the median home price declines, many potential home buyers who had previously believed an entry-level home was out of reach may now find themselves in a position to buy.
• The median price of an existing, single-family detached home in California during December 2007 was $475,460, a 16.5 percent decrease from the revised $569,350 median for December 2006.
• Prospective buyers for the most part need not worry about the bidding wars that drove up home prices during the housing boom.
• First-time home buyers needed to earn an annual income of $82,200 to buy an entry-level home in California in the fourth quarter of 2007, down 15 percent from the $96,600 annual income needed to buy during the last three months of 2006.
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Things You Should Know...
• Equity—the value of a property after all debts have been paid—is an important component of wealth building because it can be a safety net for emergencies or hard times. It also can be used to launch a business or pay for college tuition, both of which have the potential to create future earnings.
• Teenage students raised by home-owning parents are less likely to drop out of school than teens raised by renters, according to the “Journal of Urban Economics.”
• Homeowners are less likely to be crime victims than renters because neighborhoods where owners have a stake in the community are more stable, according to “Social Forces.”
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Thursday, February 21, 2008
Buying a Home in Thousand Oaks
First, and MOST important, find a lender. Most people tend to think that finding a real estate agent or finding their dream home should come first. However, finding the lender first accomplishes many things. Not only are you getting a pre-qualification and a loan, you also know the price of house you are looking for. If you spend a lot of time looking for a house that you really like first, before getting a loan, you are taking the risk of not being able to obtain a loan for that particular property. Getting a loan first will save your from heartache and save your realtor from a lot of unnecessary leg-work. Also, when you have a prequalification in your hand, it helps in negotiating a final purchase price of the home because it looks like you are serious buyer.
Once the loan is complete, it is very wise to find a realtor. Never try to find a home on your own for two reasons. One, writing offers, dealing with contracts and negotiating a final purchase price is a very complicated process. Real estate professionals deal with these tasks on a daily basis. Secondly, if you simply decide to use the agent who listed the home, you have no representation for yourself. The agent who listed the home is obligated to the sellers of that home. You on the other hand, wouldn’t have any leverage as far as negotiating goes. If you think you are saving money by using the listing agent, think again. Commission is paid completely and solely by the sellers. Having your own representation and someone who can negotiate for you is very beneficial.
When you search for a real estate agent, do some research. Take the time to interview with a few of them to get a feel for their professionalism, knowledge, attitude and likeness in character. Most agents will automatically take you as clients because they all work off of commission and most do exactly the same work as any other. Remember this: When interviewing agents, you are auditioning them, not the other way around. It is best to find someone you can relate to and discuss home-buying matters with comfortably. When you have found the agent that best suits you, together, you will be able to find the house that best suits you.
Lastly, find a home that you are comfortable living in, don’t settle. After all, this is one of the most important purchases you’ll ever make. Your agent will be able to locate homes according to your price range and amenities. You should be confident in talking to your agent about your likes and dislikes of any home that you preview. This will also help your agent narrow down the possibilities to exactly what you are looking for.
Following these steps can greatly decrease time, frustration and energy.
California Median Home Prices - December '07
Calif. median home price - December 07: $475,460(Source: C.A.R.)
Calif. highest median home price by C.A.R. region December 07: Santa Barbara So. Coast $925,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region December 07: High Desert $244,330 (Source: C.A.R.)
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Tuesday, February 19, 2008
Current Interest Rates
30 Year Fixed Rate / Conforming: 6.25%
30 Year Fixed Rate / Jumbo: 7.125%
7/1 ARM - 7 Year Fixed/23 Year ARM / Conforming: 5.25%
7/1 ARM - 7 Year Fixed/23 Year ARM / Jumbo: 6.25%
5/1 ARM - 5 Year Fixed/25 Year ARM / Conforming: 5.0%
5/1 ARM - 5 Year Fixed/25 Year ARM / Jumbo: 5.875%
Based on Purchase money at 1.0% Point.
All information is subject to change without notice.
www.TheMMTeam.com
Westlake Village Average Price - January '08
This is a comparison of average prices for the area of Westlake Village, CA, between 2007 and 2008.
All information is gathered from the Ventura County MLS and is deemed reliable but not always accurate.
Thousand Oaks (West) Average Price - January '08
This is a comparison of average prices for the area of Thousand Oaks (West), CA, between 2007 and 2008.
All information is gathered from the Ventura County MLS and is deemed reliable but not always accurate.
Thousand Oaks (East) Average Price - January '08
This is a comparison of average prices for the area of Thousand Oaks (East), CA, between 2007 and 2008.
Newbury Park Average Price - January '08
This is a comparison of average prices for the area of Newbury Park CA, between 2007 and 2008.
Click on image to enlargeAgoura Hills Average Price - January '08
This is a comparison of average prices for the area of Agoura Hills, CA, between 2007 and 2008.
DID YOU KNOW?
In 1969...
"The goal of owning a home seems to be getting beyond the reach of more and more Americans. The typical new house today costs about $28,000." - Business Week
What about 1977? ... 1985? ... 1996? ... more to come!
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Friday, February 15, 2008
FHLMC Historical Rate Survey
Here is a chart that will show you the average annual mortgage interest rate since 1971. Something to note is where we currently stand Year-To-Date, 2008 - 5.78%!
Thursday, February 14, 2008
Things You Should Know...
• Beginning this week and continuing through September, HUD's Federal Housing Administration (FHA) is mailing 850,000 letters to at-risk borrowers who have already faced or are experiencing the first reset of their adjustable rate mortgages, and live within geographic locations that are currently subject to FHA loan limits nationwide. If this has the intended effect of keeping those at risk out of foreclosure, it could help shore up the housing market and the state’s economy.
• It is more important than ever for potential home buyers to have a good credit score. Consumers should obtain a credit report and take care of any outstanding issues that can be fixed or improved prior to applying for a loan. According to a recent Federal Reserve survey, some 53 percent of lenders tightened requirements for prime-quality borrowers, 72 percent for sub-prime borrowers, and 85 percent for non-traditional mortgage borrowers, including PayOption ARMs, loans with interest-only payment structures, and other such products.
• Whether or not they have children, consumers may want to consider a home in a neighborhood with excellent schools. Homes in good school districts typically are a bit more "recession proof" and appreciate faster than homes near weaker schools, according to MSN Money.
• Rates on 30-year mortgages dipped slightly last week, the fifth decline in the past six weeks. Fixed-rate mortgages averaged 5.67 percent last week, down from 5.68 percent the week before.
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1078 Camino Flores, Thousand Oaks, CA
5447 Cochise Street, Simi Valley, CA
Great Indian Hills Vista home with 4 beds, 2.5 baths and possible RV access. Recently remodeled kitchen with granite tile countertops, travertine splash, honey maple cabinets, stainless steel appliances and tile floor. This home abuts the golf course (with a gate for access), but is still very private, protected by a natural berm. Beautifully landscaped with Pool, Spa, lawn and large covered patio.
5447 Cochise Street, Simi Valley
Wednesday, February 13, 2008
PRESIDENT SIGNS $168 BILLION ECONOMIC STIMULUS BILL
Posted from C.A.R. Newsline...
President Bush today signed off on the $168 billion stimulus package approved by Congress last week, which, in addition to tax rebates for millions of working Americans and business owners, includes a vital, but temporary increase in the conforming loan limit. The economic stimulus package will allow the Federal Housing Administration, as well as Fannie Mae and Freddie Mac to offer mortgages above the current conforming loan limit of $417,000 to as much as $729,750 in high-cost areas for loans originated between July 1, 2007 and Dec. 31, 2008.
"The actions of Congress and our president represent a significant victory for homeowners across the state and nationwide," said C.A.R. President William E. Brown. "C.A.R. has long fought for increases to the conforming loan limit in order to close the gap for would-be home buyers in high-cost areas, such as California, and, with the spotlight now fully shining on this important issue, will continue those efforts and push for permanent changes beyond Dec. 31."
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Friday, February 1, 2008
A Home Shopper’s Must-Haves and Wish Lists
Shopping for a home is an exciting adventure and it’s easy to get lost in a sea of dazzling for-sale homes and all of their fabulous amenities – which can cause you to temporarily forget that a large backyard is your top priority. To keep yourself focused, take time to identify and organize exactly what you’re looking for in a home by creating thorough “must-have” and “wish” lists before you begin home shopping. You may also want to make a third list that details your dislikes.
To get started ask yourself these questions: Which items and features must your home have? Which items and features would you like to have, but could live without? What would your dream house include? And, what features or issue must you avoid?
For the must-have list, try to focus on essentials and hard-to-change details, like a home’s layout. If you must have a three-bedroom, two-bath house, put it on the list. Ranking your must-haves in order of importance is also a good idea.
Hard-to-change, must-have features can include the type of house, for example a two-story colonial or sprawling rancher; the number of rooms and square footage; the home’s proximity to shopping; or its overall condition. Your must-have list can’t be too detailed because it aims to itemize the features that are most important to you and your family.
Your wish list is the flexible and fun list. Wish lists are good for cosmetic features that would be great to have, but that can be changed. Hardwood floors can replace old wall-to-wall carpeting. If the yard is large enough and has adequate open space, a pool can be installed later. And landscaping can be a work in progress. Since the wish list is secondary, there are no limits so be sure to also include your dream amenities.
While compiling your lists, don’t hesitate to confer with your real estate professional, who is a great source for information about neighborhoods, homes and other pertinent “must-have” information.
Once you’ve determined your must-haves and optional features, create a checklist to take with you during your home tours. Besides helping you stay focused, it will provide an organized review of each house.
Your lists will most likely change as you tour homes and see what the market really has to offer. It’s also unlikely that one house will include all of your must-have features. But, your efforts will be well worth it once you find the perfect house that includes just enough must-haves and even a few wishes. Your perfect home might not include that must-have basement, but its view may be a dream come true.
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