Your real Estate News and Market report for July 2013
Planning to buy or sell? Check our Palm Springs Real Estate News and Market Report- July 2013. Questions to help sellers and buyers plus we cover in-house lending and home selling information are below but first, the latest housing data.
Data through April 2013, released Tuesday by S&P Dow Jones Indices for its S&P/Case-Shiller Home Price Indices showed
- Average home prices increased 11.6 percent and 12.1 percent for the 10- and 20-City Composites in the 12 months ending in April 2013. This is not news if to only see it put to a number.
- We’ve been posting for some time now that home prices bottomed last year and have been steadily increasing. That said, the bargains are still there for anyone who wants to buy.
- From March to April, the 10- and 20-City Composites rose 2.6 percent and 2.5 percent, respectively.
- As of this week, interest rates took that all predicted hike of about 1%. That still leaves mortgages around 4.4% and still can be considered cheap money. Figure about $55.00 a month more per $100,000.00 borrowed.
And now, the news:
The New York Times- Opting for in-house loan service
Many major real estate companies offer their own mortgage affiliate, but buyers should not feel pressured to use these in-house loan services.
Making sense of the story
- In-house loan services are not new, but they have gained importance since the market declined. When the lending environment tightened up, the need to have a mortgage broker in-house who could give pre-approvals that actually worked became important to real estate brokers.
- Relationships between real estate brokers and in-house mortgage brokers can benefit buyers by providing easier access to the loan officer or mortgage broker. This can reduce processing time, and some in-house companies will waive certain fees.
- While using an in-house mortgage service may be beneficial and help to streamline the process, buyers have the right to select any lender they want. Federal law prohibits agents from steering clients to a particular mortgage company or lender, and from accepting payment for referrals.
- It’s important that borrowers do their homework, check all fees, and request the Good Faith Estimate, regardless of which lender they choose.
In other news …
San Diego Union-Tribune- “Dear seller” letters back in home buying
Pitches from prospective home buyers – also known as love letters – are re-emerging in hot real estate markets. They often include family photos and strive to stir the emotions of the seller to give the home buyer an edge – especially when many bidders are competing for the same property.
Los Angeles Times- “Underwater” homes decline nationwide, report says
Roughly 20,000 borrowers escaped their “negative equity” positions during the final three months of last year, CoreLogic reported. And lately, we have reports in SoCal that short sales continue to plunge making home buying a lot easier. It seems to us lately, we are dealing with a lot more traditional sales than we have in the past few years and that’s good news!
Wall Street Journal- Why rising interest rates could eventually curb price gains
Rising home prices are raising concerns among some housing analysts that prices could again become unaffordable if price gains outpace income growth. Yet, the spike in interest rates just may help cool things down a bit.
Los Angeles Times- Banks are not complying with mortgage settlement, survey finds
Five major banks continue to pursue foreclosures against borrowers seeking loan modifications and fail to provide a single point of contact, according to a survey by the California Reinvestment Coalition.
CNNMoney- Selling your home?
Selling your home? In most parts of the country, you have finally regained the upper hand.
The cards are in your favor because here in Palm Springs and elsewhere, it is a full seller’s market.
Read the full story
What you should know otherwise……
- For most would-be home buyers, entering homeownership will mean getting approved for a home loan. It’s a process that can be stressful and confusing. Borrowers can be better prepared by taking steps to study their options and learn what to expect from a lender.
- One of the main factors that lenders look at to determine a borrower’s creditworthiness is their credit score. And your lender can give you advice how to increase your score.
- Borrowers who have late or missed credit card payments, have had a foreclosure or bankruptcy, or are carrying high balances will find that this poor behavior weighs heavily on their credit score.
- Consumers whose credit is less than stellar should give themselves plenty of time to improve their credit score prior to applying for a home loan.