Buy Me Please!

This isn't 2003, but this chart is a good example of different market's selling times, and lately we've been in a lull where sellers might need to think about how much preparation might be necessary to compete for a buyer. In some markets, such as the last 2-3 years, sellers have been able to put minimum effort into curb appeal and get a fast offer. In any market, though, a buyer feels a lot more welcome when the seller puts some effort into their home's appearance and condition, and often when the buyer feels good, the transaction is even better. Think about how your house appears to someone else, and you'll probably come a lot closer to an easier negotiating process!

January 2006 Economic Outlook

The big question: Will home price appreciation continue? The answer at this article is yes, but slowing to around 7% as the 30-year fixed interest rate rises overall to about 6.4%. House price appreciation is seen as being driven by income, employment and population growth increases. The adjustable rate mortgage loan holders, though, may end up refinancing this year as those ARM rates do go up.

DQNews - Southern California Press Release

Buyers may be waiting for the price to drop, but local sales still indicate a 1-2% difference in selling vs. list price. The Southern California median home price was still $479,000, the same as November, but up 14% from December 2004. California Association of Realtors, meanwhile, still forecasts an overall increase in median price statewide for 2006, with a stronger increase in the inland areas. Still a good time with 30-year fixed mortgage rates hovering around 6% or less.

Rates in a Lull

Some buyers are taking advantage of this period, but many others are not. Mortgage interest rates fell for 5 consecutive weeks. While the difference may not seem like a lot, it is when multiplied out over time. If you're willing to pay even a .5 point, you can buy down your rate even more. Click on the link for more information.

Interest Rates Sill Lower

Despite rumors of one more rate increase by the Federal Reserve, long-term mortgage rates declined at the end of the week.

FHA Loan Limits Are Up

Effective January 1, the Federal Housing Administration (FHA) has just increased its highest loan limit to $362,790 in high cost areas nationwide. This is a $50,000 increase from last year's limit. FHA loans are usually available at lower interest rates than conventional loan rates, with easier lending guidelines to help first-time buyers. While extra paymentc called MPI (mortgage risk insurance) are tacked on that are not tax deductible, this is still very good news because it gives borrowers a lot more loan assistance in high markets that was not available before.

A Good Time to Refinance with the Start of the New Year

The 30-year fixed mortgage rate fell last week overall to 6.28%, down from 6.36%. This could still be a good time to consider a refinance if you're not in the market for a new home purchase. Happy and Prosperous New Year!

The End of the Year, But Not the End of Home Prices

The median home price statewide in November according to the California Association of Realtors is $548,000. But the number of sales decreased by 11.2 percent for home resale activity. Local areas differ from these figures, as previous posts show. Please see the linked article for more information.

Southern California Median Home Price Increase

The median home price was up from October by 1.3 percent to $479,000, and up 15.4 percent from November, 2004. This reflects Los Angeles, Riverside, Ventura, San Bernardino, San Diego and Orange Counties. The highest number sold for November was in Los Angeles County at over 9,000 residential sales, a decrease of 3.6% from last year; and Riverside County at over 5,900 sales, an increase of over 18% from last year. The typical mortgage was about $2238 in November, about $1800 higher than a year ago. Continued demand for housing remains very strong overall in Southern California.

Have Rates Risen High Enough?

The overnight lending rate between banks was raised yesterday for the 13th time since June 2004, to 4.25 percent. The Federal Reserve may now be indicating "rates have risen to a level that doesn't spur economic growth", and that monetary policy for the first time in 2 years is not described as providing "accommodation" to the nation's economy. Banks typically raise their rates in anticipation of an upward movement by the Federal Reserve, so those changes have already occurred for now. Credit card rates, home equity line rates, and adjustable mortgages will be the most sensitive to upward rate changes. CD's & fixed-rate mortgages benefit or are not affected by an upward rate change. However, other language in their report hints at leaving the door open to increases in the future.