Archive for the ‘Real Estate Industry’ Category

Realtor.com Survey – 65 Percent of Potential New Homeowners Are Likely to Buy a Foreclosed Home

Friday, June 8th, 2012

A new study by Realtor.com revealed that nearly two-thirds of the current potential new homeowners are looking at homes that have been through the foreclosure process. This is a dramatic increase from 2009 when only 25 percent of new homebuyers were looking at foreclosed properties. A reduction in supply of non-foreclosure properties for sale as well general perception changes towards the purchase of real estate owned (REO) properties are the causes of this dramatic shift according to Realtor.com CEO Steve Berkowitz.
foreclosed home signThe survey also found that the majority of REO interest was for homes to live in and not straight investment purchases. Only 6.9 of the potential buyers reported they were looking at REOs strictly for their investment potential. Fear of foreclosures bringing down overall market values was reported by 56 percent of respondents. Not surprisingly prospective purchasers expected to receive discounts of 10-30 percent vs. market value when purchasing a foreclosed property.

Study Reveals 42% of Prospective Homeowners Still Expect Home Values to Increase 7% a Year

Wednesday, November 2nd, 2011

A new study by Zillow of prospective homeowners revealed that 42% believe home values will appreciate by 7 percent a year. This despite the fact that home values have steadily declined since the 2008 market crash. It is also in sharp contrast to the historic home value appreciation rate. According to research by Robert Shiller from 1890-2006 US home values appreciated on average 3.7% a year.

 

Fannie Mae Predicts Mortgage Rates to Remain Low Through 2013

Friday, October 21st, 2011

Fannie Mae economists are projecting that demand for home loans will more than double in the next two years. This is in large part due to their prediction that mortgage rates will stay well below 5 percent through 2013. This is certainly welcome news for the real estate market following another tough year this year.

California AB 771 Signed by Governor Jerry Brown

Thursday, September 8th, 2011

California AB 771, which prevents buyers of common interest developments (CID), such as a condominiums or townhomes,  from being charged excess document fees was signed into law by Governor Jerry Brown. Homeowner Associations (HOAs) are required to provide documentation about the CID structure, operation, and management of the HOA. This information must be provided to the home buyer at a “reasonable fee,” typically $75-200. However due to a court decision in 2007 HOAs are allowed to delegate the documentation to a third party that is exempt from any fee limits. These third party providers often charge fees as high as $1,000 for a bundle that includes the required documents.

Long-Term Mortgage Rates Drop

Sunday, January 9th, 2011

According to Freddie Mac long-term mortgage rates dipped a bit during the week before Christmas. They reported that 15 year fixed rate loans averaged 4.15 percent compared with 4.17 percent the prior week. 30-year, fixed loans averaged 4.81 per cent down from 4.83 the week before and 5.05 percent a year ago.

Initial interest rates for five-year adjustable-rate fixed loans started at 3.75 percent, while one-year adjustable-rate loans closed the week at an average interest rate of 3.4 percent.