The 2016 Housing Market Is Off to a Good Start

Consumer confidence is almost as high as it was pre-recession. Economists predict GDP growth will see a slight year-over-year increase. And private sector job growth has been steady for the past two years, averaging 240,000 jobs per month. All of these factors led the National Association of Home Builders’ chief economist David Crowe to declare 2016 “a good year for housing and the economy.”

Mortgage Rates to Rise from Cheap to Low
This year mortgage rates are expected to climb one-quarter to one-half of a percentage point to an average of 4.5 percent. Though the days of “cheap” 4 percent mortgage rates may be over, rates in 2016 should still be “low,” according to Frank Nothaft, chief economist of CoreLogic. Buyers might be faced with slightly higher mortgage rates, but they may find it easier to qualify for their mortgages. Economists expect tight mortgage credit standards to slowly loosen in 2016—but not quite to levels seen 15 to 20 years ago.

National Sales Climb
According to the National Association of Realtors®, national existing-home sales saw a significant climb in December, due in part to the Know Before You Owe initiative. These new mortgage rules, which came into effect October 3rd, delayed some transactions from November to December as lenders adjusted to the new consumer mortgage form. But while the delays accounted for some of December’s activity, they were not the only influencing factor; warm weather and the prospect of higher mortgage rates also contributed to the sales jump. Existing-home sales climbed 14.7 percent in December, which is 7.7 percent higher than a year ago. Sales haven’t been this high since 2006; however, sales will have to climb much higher to beat 2006’s record of 6.48 million.

Regional Home Sales

  • Northeast – Existing-home sales’ annual rate: 750,000, a rise of 8.7 percent. Sales are 11.9 percent above a year ago. Median price: $255,700, which is 5.3 percent higher than December 2014.

  • Midwest – Existing-home sales’ annual rate: 1.22 million, a 10.9 percent increase. Sales have risen 9.9 percent above December 2014. Median price: $171,000, a 7.5 percent climb from a year ago.

  • South – Existing-home sales’ annual rate: 2.27 million, up 14.6 percent. December sales are 4.6 percent higher than a year ago. Median price: $196,100, which is 6.8 percent above December 2014.

  • West – Existing-home sales’ annual rate: 1.22 million, a climb of 23.2 percent. Sales are up 8.9 percent from a year ago. Median price: $321,100, an 8.2 percent increase from December 2014.

When you decide to sell your house, it is important to be well informed about the local market and current buyer expectations. Take the emotion out of the process. Be realistic about price and know what you need to do to get the best return on your home investment.

1-626-252-0839 Sell While the Market is HOTT!

What’s Your Home Worth? Find out Now!

If you’ve been thinking about selling your home, chances are that you’re excited about the possibility of moving and starting a new chapter of your life. Simply deciding to sell your home isn’t enough, though. The process of putting your home on the market can be overwhelming and time-consuming, so before you try to sell your property, you need to ask yourself a few questions. Being honest with yourself and with the people around you will help you have a more positive selling experience when you’re ready to move.

How’s the Market??? Snapshot for October 2015- Real Estate Market Trends

Here is this month’s How’s the Market??? Snapshot. If you saw last month’s Snapshot you will notice that our local real estate trends show median prices are still creeping up, its just taking a little longer for homes to sell! If Hows the market imageyou would like more detailed information about how much your home is now worth after the Real Estate Crash, send me an email, text, or call me. I’ll be more than happy to provide you with a Free, no obligation report of what its worth and things you can do to improve the value of your home.

Housing Inventory Snapshot October 28, 2015
Average List Price 30 Days Trend Median List Price 30 Days Trend Average DOM: active 30 Days Trend Number of Listings
Los Angeles County, CA
Single Family under $1M $547,138 0.44% $525,000 0.02% 72 3 7663
Single Family over $1M $3,566,985 2.71% $1,995,000 1.01% 93 4 3695
Condo/Townhome under $600K $377,970 -0.13% $374,900 -0.03% 69 4 2121
Condo/Townhome over $600K $1,317,750 -2.24% $899,000 0.00% 73 0 1094
Riverside County, CA
Single Family under $500K $326,551 0.35% $329,000 1.23% 79 0 6236
Single Family over $500K $1,129,965 5.50% $749,900 2.87% 118 -6 3150
Condo/Townhome under $300K $200,242 1.84% $207,500 3.75% 115 -7 1009
Condo/Townhome over $300K $461,701 -1.28% $399,000 -0.13% 107 -15 753
San Bernardino County, CA
Single Family under $500K $281,483 -0.21% $279,000 0.00% 99 0 5010
Single Family over $500K $1,004,534 0.57% $689,000 -0.13% 136 4 1510
Condo/Townhome under $300K $197,390 0.70% $214,900 1.37% 94 7 266
Condo/Townhome over $300K $447,206 -2.43% $380,000 1.63% 74 0 189
Orange County, CA
Single Family under $1M $715,782 -0.65% $699,990 -0.00% 77 5 3485
Single Family over $1M $3,637,516 0.03% $2,275,000 1.11% 118 3 1468
Condo/Townhome under $600K $387,777 -0.80% $395,000 -1.00% 72 4 1245
Condo/Townhome over $600K $1,042,494 1.70% $823,888 4.42% 74 0 528
If you know someone who is considering buying or selling a home, please give me a call. I will provide professional & courteous service along with knowledgeable guidance through the process.
Yesenia E. Ruvalcaba-Garcia, Broker
Realtor®/HUD REO & Listing Specialist
Direct (626) 252-0839
Office (626) 917-6200 ext. 14
Cell Phone (626) 252-0839
Fax (626) 209-8318
CalBRE License Number: 01293970
New Century Realtors

5 Signs the National Housing Market Is Stabilizing

Real Estate Update April 2015
(626) 252-0839
5 Signs the National Housing Market Is Stabilizing
Photo: © Dpproductions – Dreamstime

According to Freddie Mac’s Multi-Indicator Market Index, almost 80 percent of all housing markets across the country are stabilizing; 38 out of 50 states and 40 out of 50 metropolitan areas are showing a three-month improving trend. However, the index stands at 74.9, which indicates a weak overall housing market. While the index is far from its all-time high of 121.7 back in April 2006, it is also far from its lowest point of 57.2 in October 2010. The current market has improved 31 percent from its all-time low.

Good News for Loan Payments
Unemployment is down, and mortgage rates are low; thirty-year fixed-rate mortgages are averaging less than four percent. As such, the delinquency rate for mortgage loans at the end of 2014’s fourth quarter fell to a 5.68 percent rate of all loans outstanding. According to the Mortgage Bankers Association’s National Delinquency Survey, this is the lowest delinquency rate recorded since the third quarter of 2007. From just a year earlier, the mortgage delinquency rate has fallen 71 basis points, sending it back to pre-crisis levels. What’s more, since the second quarter of 2012, the foreclosure inventory has fallen every quarter.

Tight Lending Standards Loosen
With such a low delinquency rate, economists have been calling for the loosening of lending standards, and the industry is listening. Fannie Mae allows borrowers with exceptional credit to purchase a conventional mortgage with as little as three percent down. Freddie Mac is following suit, allowing a three percent down payment for mortgages closed on or after March 23. The Federal Housing Administration, which insures loans with 3.5 percent down payments, recently reduced its mortgage insurance premiums so more buyers can afford to purchase a home.

National Pending Home Sales Increase
According to the Pending Home Sales Index, contract activity is up. Sales climbed the most in the South, with the index up 3.2 percent in January to 121.9; the index hasn’t posted this high in the South since April 2010. Sales in the South were also up year-over-year, climbing 9.7 percent higher than January 2014. The West and the Northeast also saw positive month-over-month gains, climbing 2.2 percent and 0.1 percent, respectively. The West’s index of 96.4 was 11.4 percent higher than a year earlier, while an index of 84.9 in the Northeast was 6.9 percent above January 2014. The Midwest was the only region where pending home sales decreased. The index dropped 0.7 percent to 99.3; pending sales were, however, 4.2 percent up year-over-year.

Yesenia E. Ruvalcaba-Garcia  –  (626) 252-0839 Real Estate Update  –  April 2015 

U.S. home prices drop for fourth straight month

Still on the fence about selling your home? You might want to move sooner than you think!


Home prices are dropping in the nation’s largest cities and are expected to fall through next year, as fewer people purchase homes and millions of foreclosures come on to the market.

The Standard & Poor’s/Case-Shiller 20-city home price index released Tuesday fell 1.3 percent in October from September.

All cities recorded monthly price declines. The last time that happened was in Feb. 2009.

Atlanta recorded the largest decline. Prices there fell 2.9 percent from a month earlier. Home prices in Washington dropped 0.2 percent in October, the second monthly decline after five straight increases.

Home prices in Dallas, Portland, Ore., Charlotte, N.C., Tampa, Fla. and Denver have fallen for four straight months.

The 20-city index has risen 4.4 percent from their April 2009 bottom. But it remains 29.6 percent below its July 2006 peak.

This year is on pace to finish as the worst for home sales in more than a decade. High unemployment and tight credit have kept people from buying homes, despite some of the lowest mortgage rates in decades.

Government tax credits gave the ailing industry a boost this spring. But they expired in April, and in recent months, home prices have begun to dip again.

Millions of foreclosures are forcing home prices down and more are expected in the coming year. Many people are holding off on making purchases because they fear the market hasn’t bottomed out, analysts say.

And mortgage rates are rising again. In the last month, rates on fixed mortgages have surged more than a half-point to near 5 percent.

Most experts expect the declines to continue through mid-year with prices on average to lose another 5 percent to 10 percent. The worst price drops will come from cities with a struggling economy and the highest foreclosure rates, while those with better job growth will fare better.

Home prices have declined in 18 of the 20 cities in the past year.



Copyright © 2011, Los Angeles Times

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Freddie Mac Extends Foreclosure Protection for Service Members

Freddie Mac will delay initiating and resuming foreclosure for at least nine months for financially troubled service members released from active duty through the end of 2011.

The decision will give lenders more time to work with service members and explore relief options designed to assist them, according to a statement from Freddie Mac.

“Our military make sacrifices every day to protect our homes and families,” said Anthony Renzi, EVP of single family portfolio management at Freddie Mac. “This small act will protect financially troubled service members when they return from active duty by giving them more time to work with their lender to stay in their home.”

The new protective measure is now a requirement for servicing mortgages with Freddie Mac.

Its original authorization in the Housing and Economic Recovery Act of 2008 (HERA) expires December 31. The nine-month stay was initially authorized for service members under amendments to the service members Civil Relief Act (SCRA) included in HERA.

Freddie Mac also provides a 6 percent interest rate cap to assist service members that can be applied to eligible mortgages to include a service member’s period of active duty and one year after release from active duty.




By: Heather Hill Cernoch,

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