Tough Market For Owner Occopied Buyers

SEATTLE, Oct. 11, 2012 /PRNewswire/ -- The inventory of lower-priced homes for sale, which are commonly sought by first-time home buyers, has dropped by more than 40 percent in California over the past year, according to a new Zillow analysis, which tracks changes in the number of homes listed for sale on Zillow across the country as of Sept. 30, 2012 and compares inventory changes in the bottom, middle and upper tiers of home prices.
California has the highest annual rate of inventory reductions across all three housing tiers (-37.5 percent), but the inventory in the bottom tier of homes saw the biggest decline (-42.7 percent); with lower-priced homes in the Fresno (-59.7 percent), Sacramento (-55.4 percent), San Francisco (-53.2 percent) and Modesto (-50.5 percent) metros seeing the largest annual reductions. These homes commonly are purchased by first-time home buyers and, more recently, investors. Nationally, the bottom price tier has experienced an inventory reduction of 15.3 percent over the past year.
"First-time homebuyers are being squeezed out of the market by falling inventory and the rapid influx of investors looking to buy basic homes to rent out to the growing population of people who have recently been foreclosed upon," said Stan Humphries, Zillow chief economist. "Investors are paying in cash and can close sooner, which is more favorable to banks and homeowners looking to sell."

This is great news for sellers. Properties are selling with multiple offers and sometimes well over asking.  If you have been thinking of selling now just might be the time. Contact me and we can go over your options and see if now is the time for you to sell your home.

Heather Farquhar
Keller Williams Realty
www.HeatherHouseHunter.com
Heather@HeatherHouseHunter.com

Home prices signal recovery may be here

The S&P/Case-Shiller national home price index, which covers more than 80 percent of the housing market in the United States, climbed 6.9 percent in the three months ended June 30 compared to the first three months of 2012.

N.A.R MYTH BUSTER!!!!!

The National Association Of Realtors clears up some lies trying to pass as facts.

Claim: Pending legislation in the Senate would require an energy license or retrofit for home sales.
This email is FALSE: There is no requirement in H.R. 2454, The American Clean Energy & Security Act, that home sellers obtain either a license or energy audit or make energy retrofits before they can sell their home.


Here are the two REAL provisions in the bill: • Section 202 (Building Retrofit Program) would offer matching grants for home improvements. State government would administer the program, which is voluntary and available to all property owners.

Claim: The health care bill contains a 4.0 percent “transfer tax” on homes sales. An opinion piece in the Spokane, Wash., Spokesman-Review last month FALSELY reported that the health care bill contained a provision for a 4.0 percent “sales tax” or “transfer tax” on the sale of a home.

The price of a “no-cost” loan......

The New York Times

Some home buyers who may be concerned about paying high closing costs might be tempted by a “zero-cost” or “no-cost” loan option, which requires no cash outlay, but typically adds a half percentage point to the rate. However, some financial consultants say these loans tend to be most beneficial to buyers planning to have the loan for less than five years.
KEEP THIS IN MIND
• One of the primary differences between a no-cost loan and similar loans is that no-cost loans do not tack on closing costs to the balance, but instead increase the rate.
• With no-cost loans, third-party fees including the appraisal, credit report, title insurance, recording, and the use of a mortgage broker are paid by the lender. The fees, including the amount the broker is being paid, are disclosed on the closing statement.
• Home buyers who bypass a broker and work directly with a lender may encounter less transparency, as loan officers are not required to disclose the amount the bank is making on the loan.
• Borrowers weighing their loan options are advised to use a mortgage amortization calculator to compare the costs for a conventional loan compared with a no-cost loan. The Federal Reserve provides an amortization calculator on its Web site at www.federalreserve.gov.
Read the full story:
http://www.nytimes.com/2010/10/24/realestate/24mort.html?ref=realestate
Oct.

California's anti-deficiency protection for "purchase money" mortgages...

On Thursday, Governor Schwarzenegger vetoed SB 1178 (Corbett), C.A.R.'s sponsored bill that would have expanded anti-deficiency protections. In his veto message, the Governor made clear his view that the bill interferes with an existing contract. While disappointed in the Governor's misinterpretation of the bill, C.A.R. is grateful to the almost 13,000 California REALTORS(R) who urged him to sign the bill by responding to the Red Alert.

C.A.R. sponsored SB 1178 to better protect homeowners going through foreclosure. SB 1178 would have ensured that homeowners keep the same "anti-deficiency" protections they have in the original loan after the loan has been refinanced.

California's anti-deficiency protection for "purchase money" mortgages says that if a homeowner defaults on a mortgage used to purchase his or her home, the homeowner's liability on the mortgage is limited to the property itself. The law has worked well since the 1930s to protect borrowers, ensure the quality of loan underwriting and allow borrowers brought down by financial crisis to get back on their feet.

Unfortunately, the 1930s law hasn't kept up with current times. Current law doesn't apply to loans used to refinance the original purchase debt, even if the refinance was only to gain a lower interest rate. Recent years of low interest rates have induced tens of thousands of homeowners to refinance their mortgages. During those years, almost no one realized that refinancing their mortgage to obtain a lower rate, they were forfeiting their protections and were becoming personally liable on the new note.

SB 1178 would have corrected this injustice by extending anti-deficiency protections to those who have refinanced their loans.

Thank you again to everyone who joined C.A.R.'s Government Affairs Team and fought for our clients.