California Market Continued Its 2004 Increase

We thought it couldn't get any higher, but it has. Will 2005 bring us the same in pricing? Hard to say, but see this for more: "The median price of an existing, single-family detached home in California during November 2004 was $473,260, a 23.1 percent increase over the revised $384,470 median for November 2003, C.A.R. reported."

Increase Your Policy Coverage

A Harris Interactive Survey conducted last June reveals that the participants believed their homeowner's policy was adequate. But with the rising home values, your policy may not be giving you full coverage. The recent fires in California are an example of policy coverages coming up short for those owners. Is your coverage what it should be? Click here to review.

Your Free Credit Report as of December 1, 2004

A recent amendment to the federal Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies to provide you with a free copy of your credit report, at your request, once every 12 months. Starting December 1, 2004, consumers in 13 Western states including California will be able to begin making requests by visiting www.annualcreditreport.com, or by calling 877-322-8228, or by mailing a standardized form, to obtain their once-a-year free report. Other states are phased in at later dates throughout 2005.

To inform consumers about their state’s eligibility and help answer questions they may have about the consumer reporting companies’ new service, the Federal Trade Commission has published a new Facts for Consumers brochure, “Your Access to Free Credit Reports.” The alert explains why it is important for consumers to monitor their credit history, how to request a report and how to dispute any errors.

The FTC’s alert is available at http://www.ftc.gov/bcp/conline/pubs/credit/freereports.htm. For more information,visit www.ftc.gov/credit.

New loan interest rates

Buyers will have a little more leeway on their new loans. Conforming loan limits for conventional loans have been raised from $333,700 to $359,650 for 2005 for single family homes. Conforming loan limits for 2 to 4 units range from $460,400 to $691,600. What this means to the buyer is that an adjustment was made to last year's average home price as calculated by the Federal Housing Finance Board for Fannie Mae and Freddie Mac loans so that the higher interest rate for a jumbo loan would not be in effect until loan limits higher than those above are reached. Click on MBA Residential Finance Updates for more.

Continued Increase in Median Home Price

Sales continued to climb as of the end of October, 2004, and the most rapid appreciation occurred in the lowest priced regions in the state: the desert areas and San Bernardino/Riverside counties. The median price decreased slightly for October to $460,370, according to the California Association of Realtors. This is a statewide median and figures for individual counties vary. Click here to read more.

Reverse Mortgages A Trend for the Future?

The number of reverse mortgages endorsed by the FHA during 2004 has so far doubled the 2003 production of over 18,000. Reverse mortgages account for over 3% of FHA's single family 2004 production. The Home Equity Conversion Mortgage for homeowners over the age of 62 began in 1987, but since 2000, has grown dramatically from about 6600 in 2000 to over 37,000 in 2004. Not surprisingly, California has the greatest number of reverse mortgages under this plan. Mortgage lenders have become increasingly familiar with this program, and more homeowners are seeing it as a financial planning tool where a homeowner over the age of 62 may borrow against the equity in their home and not repay it until they move out. Here is more on reverse mortgages.

Highest U.S. Homeownership Reached in 2004

According to a report released by the U.S. Census Bureau, the United States now has 73.8 million homeowners -- a historical high. This is approximately 1.6 million more homeowners than recorded one year ago. The Census also reported the rate of homeownership increased 0.6 percent to 69 percent in the third quarter of 2004 compared with the same period one year ago but remained unchanged from second quarter 2004.

During the third quarter of 2004, homeownership rates by region were highest in the Midwest and South, at 73.8 percent and 71.0 percent, respectively. The Northeast recorded a homeownership rate of 64.4 percent, while the West experienced a similar rate of 64.7 percent.

The Census also reported an all-time high of 15.2 million minority homeowners, though the homeownership rate among minorities continues to be lower than that of non-Hispanic whites. In addition to the 73.8 million housing units occupied by homeowners, there were 33.1 million housing units occupied by renters during third quarter 2004.

"These numbers combined with news that sales of previously owned homes jumped 3.1 percent in September, show that housing continues to lead the way in our rapidly recovering economy," said Housing and Urban Development Secretary Alphonso Jackson.--Courtesy of California Association of Realtors.

Heritage Gardens

Although the rainy season may have started, you won't want to miss this site. Southern California consumes and depends on water from outside our locale, and water conservation is more important than ever as desert areas also draw more population and water demand is higher than ever. Not only is consuming less water through a less thirsty garden featured, you can also learn about plants that are more fire resistant and protect hillsides from slipping. By using this site you can see real people's gardens and their choices of planting; you can learn about the plants that were native to So Cal and save them to consider for your own selection later. An extremely useful site for much of California. Go to Be Waterwise here.

More Info on Market Cooling

(October 14, 2004) -- With real estate sales sliding 7.8 percent last month in Los Angeles County from a 15-year high in September 2003, prices appear to be flattening out.

The median price of a home in the county held at about $407,000 for its third consecutive month, signaling to real estate and economic experts that the sizzling Los Angeles property market finally may be returning to more normal levels.

Still, John Karevoll of DataQuick Information Systems, which complied the statistics, warns that with appreciation still over 20 percent, no 'significant' price drops have emerged. He does, however, expect home-price growth to fall back into the mid-teens by year's end.

Source: Los Angeles Times (10/13/04); Haddad, Annette"

Home Prices in L.A. Flatten

This Los Angeles Times article (10/13) will only stay online for a couple of days, it draws largely from Dataquick's stats on Los Angeles County/Orange County home sales for the last three months. Home sales have slowed, in some areas more than others, partly a sign of the time of year, partly due to the upcoming election, and a lot due to .... what? Interest rates are still fantastic, but may rise to as much as 7% by the end of 2005 (a CAR prediction by economist Leslie Appleton-Young), but home prices have remained where they are throughout the summer. However, as this article points out, there is no great decline in the median price for the area. Read here while you can:Home Prices in L.A. Flatten