Orange County Home Prices Show Biggest Gain Since 2014

O.C. Home Prices Show Biggest Gain Since 2004

Source: OC Register, March 14th, 2013

Orange County home prices are up by the biggest margin in eight years, figures released Wednesday by Data-Quick Information Systems show.

The La Jolla-based housing tracker reported that the median home price, or price at the midpoint of all sales, was $477,000 in February. That's up 22.3 percent from February of last year, which was the biggest annual price gain since November 2004. Orange County's housing prices also are at their highest level since May 2008.

February's median price was $7,000 above the previous high reached in December. It's also up $107,000 from the post-crash price bottom hit in January 2009.

Orange County's housing market has recouped 39 percent of the losses that have occurred here since home prices hit an all-time high of $645,000 in June 2007. During the crash, prices fell $275,000, or 43 percent, from that June 2007 high to the January 2009 bottom.

Home sales also ticked up 6.7 percent year-over-year in February to 2,252 house, condo and townhome transactions, Data-Quick reported. That's the highest sales tally for a February since February 2007. But last month's sales still were 14 percent below the February average of about 2,600 units over the past 26 years.

HOME BUYERS ARE GOING TO RESET THEIR EXPECTATIONS ON INTEREST RATES - THEY'RE SLOWLY RISING!

Residential mortgage borrowers - heed the warning; while rates are still at all time record lows, they are rising.

If you or anyone you know who hasn't yet refinanced or are looking to purchase a home, have them give me a call at 714-478-3153. I have several conventional and government mortgage programs to tailor the right one for you.

http://blogs.wsj.com/economics/2013/03/14/mortgage-rates-surpass-6-month-high/?mod=wsj_valettop_email

 

 

IS HAVING A DUAL AGENCY CONTRACT A CONFLICT OF INTEREST WHEN BUYING AND SELLING A HOME?

http://online.wsj.com/article_email/SB10001424127887323628804578348801927451678-lMyQjAxMTAzMDEwMjExNDIyWj.html?mod=wsj_valettop_email

 

WHEN WILL THE FED RAISE RATES?

In today's WSJ Market Watch, the view is that when the Fed's start to raise rates, reaction in the bond market will dramatically swing or worsen interest rates.


"Don't fight the Fed" has been a market mantra for the past four years. But some bond investors are starting to lace on their gloves.

MarketWatch's Laura Mandaro looks at prominent investors who think the market will keep rising and those who think it's ready to fall and what metrics they're using to make their investment calls.

Richard E. Sylla, financial historian and professor of economics at NYU's Stern School of Business, discusses the likelihood of a series of markets highs, the impact of the Fed's ability to keep interest rates down, and the tendency for investors to buy high and sell low, in a big interview with WSJ's Jason Zweig.

Figuring that the Federal Reserve won't be able to keep a lid on interest rates forever, large money managers such as BlackRock Inc., BLK -0.43%TCW Group Inc. and Pacific Investment Management Co. are getting ready for the day when rates take their first turn higher.

Upbeat news about employment Friday has helped stoke expectations that the economy is continuing to recover.

The fear is that as expectations of rate increases mount, short-term investors will bolt for the exits as prices drop, causing wild price swings and amplifying losses. The last such exodus took place in 1994, when Fed rate increases triggered a wave of selling that left 30-year bond prices down almost 24% in a year.

HOUSING MARKET OUTLOOK PROJECTIONS

The latest U.S. Economic and Housing Market Outlook released by Freddie Mac shows that the housing sector is recovering. Here are some of the highlights:

• For the first year since 2005, residential fixed investment (RFI) made positive contributions to GDP growth, adding 0.4 percent to growth in the fourth quarter and 0.3 percent for the year in 2012. Expect RFI to contribute upwards of 0.5 percent for 2013 as a whole.

• Projecting housing starts in 2013 will increase to 950,000 units or about 22 percent higher than 2012 levels.

• Existing home sales are expected to pick-up as the house price recovery allows homeowners who have been forced on the sidelines by negative equity to get back into the market.

Mortgage Rate Hit 10 Month High

Mortgage rates vaulted higher today at their fastest pace since late January, after the Employment Situation showed an unexpectedly high number of jobs created in February. The Employment Situation is the most important piece of domestic economic data each month and always has the potential to greatly impact markets. This was indeed the case today, and it brings 30yr Fixed Best-Execution up to 3.75% for the first time since May 2012. Lenders are still offering lower rates, but at greatly increased costs. For every $100k in loan amount, you'd pay an extra $700 of closing costs to keep yesterday's rates at an average lender. On average, the costs associated with 3.625% yesterday are the same costs associated with 3.75% today.

WHY HAVE MORTGAGE INTEREST RATES BEEN RISING?

Interest rates have been bouncing around over the last several weeks with an upward trend. Why you may ask? I believe rate fluctuations are based on a number of things, such as what's happening to the yield of 10 year treasuries, the Fed buying $78B in mortgage backed securities each month, but also based on financial data reported daily on the news. Here's an interesting article posted in today's  Wall Street Journal that sheds more light on the answer.

"Mortgage rates moved relentlessly higher for the fourth straight day on Thursday, bringing them close to the seven month highs last seen in mid-February".

http://www.mortgagenewsdaily.com/consumer_rates/299123.aspx

Why IS Mortgage Volume Down When Home Purchase Volume has Risen to 2007 Levels?

The explanation for why home sales have recovered despite lackluster mortgage origination is that a lot of homes are getting bought in all-cash deals these days. Across 55 large metropolitan areas that it follows, DataQuick MDA.T -0.18%found that 36% of homes sold last year were purchased without mortgage financing, compared with 15% in 2007. In some of the old hotbeds of speculation, the number of homes getting purchased for cash is eye-catchingly high: In the Miami area, for example, there were 72,459 cash sales last year, against 19,625 five years earlier.

Short Sales ARE UP!

Ironically, more homeowners are short selling their homes. The reason may not be obvious. With inventories low, homeowners feel more comfortable selling their homes and getting lenders to write off payoff shortfalls.

Wall Street Journal, March 5th, 2013

The number of American homes that end up in foreclosure has started to decline, a welcome development that partly reflects an improving housing market.

But a look at data that tracks distressed home sales reveals another reason why foreclosures are becoming less prevalent: More homeowners are turning to so-called short sales—where they sell their homes for less than what they owe in mortgage debt and the bank typically eats the difference.

http://online.wsj.com/article_email/SB10001424127887323699704578326550197036458-lMyQjAxMTAzMDAwNTEwNDUyWj.html?mod=wsj_valettop_email

MORTGAGE INTEREST RATES ARE RISING

I have been preparing my clients to get their refinances in sooner rather than later as we've seen a trend of rates rising; we're at roughly .25-.375% higher across the board for both conventional fixed rate mortgages and ARMs.

Mortgage rates moved slightly higher again on Tuesday, continuing a gentle drift higher from the lowest levels in several weeks on Friday. While yesterday's rates were arguably in line ...

http://www.mortgagenewsdaily.com/consumer_rates/298702.aspx

Ready To Buy Again 2 Years After Your Short Sale??

http://mcedge.tv/16b9cv

Documentation Needed Today to Get a Home Mortgage

http://www.slideshare.net/tdrasler/documentation-needed-to-get-a-mortgage-2012

February 2013 Housing Stats and Trends

http://cheryleagleson.housingtrendsenewsletter.com/show-local-market-data.cfm?pid=10&loadid=59&id=3245