Beyond the Headlines -

California Weekly Real Estate Update from C.A.R.

11 Apr, 2010 | Written by Phil McCollum | under Beyond the Headlines, Real Estate News

Here is the latest Beyond the Headlines Newsletter from C.A.R.

Real Estate News: Beyond the Headlines from C.A.R.

Los Angeles Times - What do buyers want in a home?
Survey offers clues A recent study of more than 22,000 homeowners who bought their homes within the last nine years found that current homeowners plan to be “more practical” in their next purchase, focusing on livable space rather than unnecessary upgrades.

KEEP THIS IN MIND

Many of the luxury amenities once considered necessities among home buyers, such as community clubhouses, dog parks, golf courses, and 24-hour security, are no longer priorities, according to the survey. Repeat buyers also said a swimming pool isn’t a must, but a children’s playground with walking paths are essential.

One of the takeaways from the survey, according to an architect firm, is that buyers nowadays should rethink space. For example, buyers should look for kitchen cabinets that go all the way to the ceiling for added space and efficiency. They also should pass on high- priced focal stairways, opting instead of steps that are tucked away and out of sight.

Buyers also should be on the lookout for dead space. If the dining room or media room is eliminated, at least some of the square footage should be dedicated to secondary bedrooms. The once-standard 10-by-10 bedroom no longer is acceptable to most buyers.

The survey also found that many buyers have transitioned toward green features, such as high-efficiency appliances, insulation, and windows that are not large areas of glass. However, many buyers did not report the use of recycled materials as a necessity. Other findings from the survey show that large kitchens, with islands, are desirable, as are main-floor master bedrooms, and two-car garages.
To read the full story, please click here:

http://www.latimes.com/classified/realestate/news/la-fi-lew4-2010apr04,0,2602030.story

In Other News…

The Mercury News - Government launches effort to help homeowners in short sales
The government launched a new effort Monday to speed up the time-consuming often-frustrating process of selling your home if you owe more than it’s worth.
To read the full story, please click here:

http://www.mercurynews.com/real-estate-news/ci_14823039

The Wall Street Journal - Hold your breath: Borrowers could stay “underwater” for years

So-called “underwater” homeowners who owe more than their homes are worth could be holding their breath for much of the next decade. To read the full story, please click here:

http://blogs.wsj.com/developments/2010/04/01/hold-your-breath-borrowers-could-stay-underwater- for-years/

The Sacramento Bee California expected to cancel tax on forgiven mortgage debt
Relief appears imminent for thousands of Sacramento homeowners hit with state tax bills for mortgage debts forgiven in 2009.
To read the full story, please click here:

http://www.sacbee.com/2010/04/06/2657410/california-expected-to-cancel.html

Los Angeles Times - Sales of contracts for previously owned homes rise 8.2 percent in February

The number of previously owned homes placed under sales contract surged 8.2 percent in February, according to data released Monday, the first sign that the government’s extended tax credit for buyers may bolster sales this spring. To read the full story, please click here:

http://www.latimes.com/business/la-fi-home-sales6-2010apr06,0,5038223.story

The Wall Street Journal - Cash dwindling for no-money down home loan program
A program from the Department of Agriculture’s rural development division, which offers no-money- down loans in certain parts of the country for low- and middle-income borrowers, is likely to run out of funding next month, just as a surge of buyers are expected to ink deals before the federal tax- credit expires April 30.
To read the full story, please click here:

http://blogs.wsj.com/developments/2010/03/25/cash-dwindling-for-no-money-down-home-loan- program/

CNN Money - With caution, Americans still want a house

Nearly two-thirds of American would still prefer to own a home, although the recent housing market turmoil and uncertain economy have made them a little more cautious about how and when, according to a survey released Tuesday. To read the full story, please click here:

http://money.cnn.com/2010/04/06/real_estate/FannieMae_homeowner_survey/index.htm

The Wall Street Journal - Homeownership for everyone?
With the subprime market in ruins, affordable housing advocates are looking at new ways to promote responsible homeownership for low- and moderate-income families. While many policy makers would resign low- and moderate-income families to rental housing, a new study makes a case for keeping the door open to homeownership at all income levels.
To read the full story, please click here:

http://blogs.wsj.com/developments/2010/04/01/homeownership-for-everyone/

The Wall Street Journal Housing market watchers say builders are now strenuously working to win the hearts—and checkbooks—of female buyers.
To read the full story, please click here:

http://online.wsj.com/article/SB10001424052702304871704575160112777930360.html?mod=WSJ _Real+Estate_LeftTopNews

California Weekly Real Estate Update from C.A.R.

4 Apr, 2010 | Written by Phil McCollum | under Beyond the Headlines, Real Estate News

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Real Estate News: Beyond the Headlines from C.A.R.

The California Association of Realtors has just released their latest Beyond the Headlines report to keep California home buyers and sellers up to date on recent developments in the real estate market. The Beyond the Headlines report provides articles published in the past week of great interest to real estate market watchers.

Wall Street Journal: A good time to buy? Yes, but no need to rush

Many housing economists have said that for borrowers with stable incomes, good credit history, and FICO scores of at least 620, now is an opportune time to purchase a home. Although inventory rates are below the long-run average, there still are plenty of options available for buyers of high-end homes.

MAKING SENSE OF THE STORY FOR CONSUMERS

Consumers trying to time the market and purchase their home when prices are likely to rise again are advised to take a different approach. According to one real estate consultant, while home prices have stopped declining in most areas, and even have risen in some markets, mortgage rates may rise, offsetting any potential savings.
Early last year, the Federal Reserve began purchasing mortgage-backed securities, which helped maintain low interest rates for consumers. However, the Fed’s purchase program ended in March, and some analysts forecast interest rates to increase throughout the rest of the year. One financial publishing company predicts that rates likely will rise to 5.5 percent by mid-2010 and close the year at 5.75 percent to 6 percent. The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) projects rates on 30-year fixed-rate mortgages to average 5.6 percent this year.
Closely-watched indexes, including the Standard & Poor’s/Case Shiller Index, indicate that the high end of the market didn’t experience the same dramatic price appreciation as the low end. Home prices in this segment have not declined as steeply as homes in the mid- to low-end of the market. Additionally, many discretionary sellers in the high end—those who do not have to sell their homes—are opting to wait until home prices rise before listing their homes for sale.
The high end of the market also is facing challenges with buyers qualifying for financing. During the height of the market, many high-end home purchases were fueled by exotic mortgage products. Now that those mortgages are no longer readily available, many lenders are requiring borrowers to provide proof of income, such as W-2s and recent paystubs, as well as demonstrate their ability to meet the monthly mortgage obligation.