Real Estate Update

January 23, 2012 in Uncategorized

Happy Chinese New Year!

January 23 is Chinese New Year, and heralds the Lunar New Year of the Water Dragon, a once in every 60 years occurrence. The dragon is perceived as a mystical and auspicious creature in Chinese cultures and this year is expected to bring prosperity and transformational change.

Training Tips for the Spring Real Estate Market

Training? Seriously? 

Yes, why not? January is the month when every media source is urging us to get every aspect of our lives “into shape.” January is also when most buyers and sellers consider whether this is the year they will buy or sell. Here are some of the essential training and assessment areas to keep in mind, and that we can cover in more detail to address your particular concerns.

Buyers

• Weigh and measure yourself financially.
• Build financial muscle with savings.
• Reduce your debt waistline.
• Lenders are requiring lower debt-to-income ratios.
• Eliminate cellulite on your credit report by checking for errors.
• Survey the playing field: follow the market well before it’s time to buy.
• Work with personal trainers including me, your Realtor.

Sellers

• Get a physical: get inspections before starting improvement projects.
• Assess your capabilities: get a realistic view of the value of your home.
• Exercise the right muscles: work on improvements that will most strengthen the appeal of your property.
• Scout the competition: keep up with sales and value trends in your neighborhood, and similar ones.
• Keep your eye on the finish line: assess your options for your next home after the sale.
• Work with personal trainers including me, your Realtor.

Keepers

• Maintain, maintain, maintain. Don’t let your asset sag.
• Cut some flab from your mortgage payment: check on refinancing options, even if you are “underwater.”
• Reduce your caloric intake with subsidized and tax advantaged energy saving improvements.
• Challenge the referee: appeal your annual tax assessment.
• Keep up with the pack: be aware of values and trends in your neighborhood.
• Work with personal trainers including me, your Realtor.

 

MONTHLY MARKET SNAPSHOT

Last year closed on several positive notes when it came to the housing market, and a number of recently released reports suggest we could be seeing the market stabilizing and even gaining some momentum as we begin the New Year.

Noted housing economist Liz Ann Sonders of Charles Schwab said in a recent report that “we’re seeing a light at the end of the housing tunnel.” The senior vice president and chief investment strategist for the brokerage firm pointed out that the pending-home-sales index surged more than 7% last month to its best level since April 2010.

Sonders isn’t alone in her estimation that real estate could be bottoming out. In a report released Monday, Clear Capital, a real estate valuations company, predicted that prices in the San Francisco-Oakland-Fremont metropolitan area will remain flat this year versus a 4.7 percent drop in 2011.

The firm said Silicon Valley should see a 1.6 percent increase in home prices, compared with a 2.5 percent drop last year. “This region overall is doing pretty well,” Clear Capital research director Alex Villacorta told the San Jose Mercury News.

Nonetheless, the economic and housing news in recent months continues to trend higher and offer reason for encouragement that 2012 will truly be a “Happy New Year.”

 

MORTGAGE RATES

2012: Refinance Opportunities & Jumbo Financing

Historically low interest rates have carried into 2012 giving homeowners the opportunity to improve their financial future by improving their home financing. Many borrowers are able to refinance at zero cost to accomplish goals such as lowering payments, shortening the loan term, or converting from an ARM to a fixed rate mortgage. Buyers are joining existing homeowners in taking advantage of the record low rates as the combination of rates and the affordability of the housing inventory present what could be an optimal buying opportunity.

2012 also brought substantial improvements to Non-Conforming Financing, commonly referred to as Jumbo. The continued supply of private capital has caused interest rates on both fixed rate and ARM products to fall sharply for loans between $625,500 and $5,000,000. In addition to the lower rates, qualifying guidelines have continued to expand, providing increased access to the jumbo products. Many homeowners who were unable to refinance their jumbo loans in 2009 and 2010 are finding it possible to take advantage of today’s record low rates.

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