Free Pumpkins at First Team Real Estate Pumpkin Patch

We will be giving away FREE Pumpkins at our First Team Real Estate office in Anaheim Hills. Saturday October 29. 9:00am to 1:00pm. Everyone is welcome! There will also be food and games and costume contests.

Wall Street Journal & Forbes: It’s Time to Buy A Home

The Wall Street Journal

Last week, in an article entitled It’sTime to Buy That House, the WSJ told their subscribers:

“It’s an excellent time to buy a house, either to live in for the long term or for investment income…Houses aren’t the magic wealth creators they were made out to be during the bubble. But when prices are low, loans are cheap and plump investment
yields are scarce, buyers should jump.”  In an article two weeks ago, MarketWatch.com (the on-line blog for WSJ) told their readers:
“Now could be the best time in history to buy a home.”

Forbes.com

In a report to their subscribers, Capital Economics reported that:
“The previous declines in house prices and the more recent drop in mortgage rates to record lows have created an unusual situation in which the median monthly mortgage payment is more or less the same as the median rental payment.”
Why is this important? Last week, Forbes explained to their readers:
“If rents simply kept up with inflation at a 3.2% annual increase, a $1,500 rent payment would cost that renter nearly $900,000 over the next 30 years. The same $1,500 payment made to their mortgage would be only $540,000 (because the payments
don’t increase with inflation).”
They went on to explain the advantages of homeownership during retirement:
“Even with a dismal 1% growth rate over 30 years, a $300,000 property would appreciate well over $100,000 giving the homeowner an additional nest egg for retirement…
At a time when retirement is becoming much more challenging, an extra $400,000 (or likely more) can make a major difference
not to mention the impact of NOT having to pay a mortgage.  How much less would you have to save for retirement if you didn’t pay the mortgage?” 

Real Estate Update: Less Homes for Sale

For-Sale Housing Inventories Shrink to New Lows

DAILY REAL ESTATE NEWS | MONDAY, OCTOBER 17, 2011

Nationwide, 2.19 million homes were listed for sale at the end of September, a drop of 20 percent compared to a year earlier, and marking the lowest level on record since REALTOR.com began tracking housing inventory data in 2007.

All 146 markets that REALTOR.com tracks saw housing inventory fall year-over-year, except for Denver and El Paso, Texas. Listings were down by 49 percent in Miami, 48 percent in Phoenix, and 46 percent in Orlando, Fla.

But while reduced inventories usually help lift prices, in the current real estate market, housing prices are staying flat or declining. That’s because demand remains soft, housing experts say. 

Real estate professionals told The Wall Street Journal that inventories are shrinking because some home sellers have decided to take their homes off the market instead of trying to sell at a steep discount. Banks are also moving more slowly at repossessing foreclosures, which has reduced the supply of foreclosed properties on the market — albeit a temporary decrease, many experts note. 

"The inventory is low, so it's hard for buyers to find their dream home," Joan Downing, a  real estate professional in the Detroit area of Bloomfield Hills, Mich., told The Wall Street Journal. "That's been our challenge more than anything: finding the inventory for the clients. Nobody's complaining about the pricing or the interest rates."

Source: “Slim Pickings Are Latest Headache for Home Sales,” The Wall Street Journal (Oct. 17, 2011)

Real Estate Loan Triggers for Rejection

Last year, more than two million people were turned down for homes, according to federal data, often because the applicants didn’t meet certain lender requirements or because their applications were incomplete or otherwise problematic.  With lenders’ underwriting criteria becoming more rigorous in recent years, it’s important buyers know the most common triggers for mortgage-loan rejection. Making sense of the story Insufficient income: Lenders want to be sure borrowers can afford to make the mortgage payments.  Lenders typically look for at least a two-year track record of income, which could hurt those who have changed jobs recently. Cloudy financial picture: Generally, total debt payments, including the mortgage, cannot exceed 45 to 50 percent of a borrower’s adjusted gross monthly income.  Overtime and bonuses are included only if the borrower has worked for the same employer at least two years, and has a history of receiving them. Poor credit: Lenders typically reject applicants with FICO scores below 620. Low appraisal: One of the predominant reasons buyers are turned down for home loans is because the appraisal on the property is too low.  A buyer may think he or she is purchasing a house worth $800,000, but if the appraisal comes in less than that, the lender will not loan the borrower the money. Property problems: Sometimes issues turn up within a house, like a major repair or safety issue that needs to be addressed, before an application can be approved. Information mix-ups: Approximately 12 percent of new mortgage applications were denied because of unverifiable information or incomplete credit applications, according to the Federal Financial Institutions Examination Council.

Fraud Alert - Vacant Home Rental Scam

Police and real estate agents are warning renters of a new scam, which has also been stretching nationwide. Scammers are posting housing ads online, such as on Craig’s List, that promote a vacant home available for rent. The unsuspecting renter pays a security deposit and sends monthly rent checks to who they believe is their landlord.
But the landlord doesn’t really own the property and is pocketing the money, police and agents warn. Scammers are targeting vacant homes and foreclosed properties in the rental scam, they say.
At times, scammers are posing as real estate professionals and putting together fake lease agreements and forging the seller’s name. They’re also changing the locks on the house so the new renters can move in.
Police are encouraging renters to work with a licensed real estate professional or property management firms to make sure they’re renting a property that is indeed for rent.

States With Rising Home Prices

Several states are posting year-over-year gains in home values, according to a newly released index for August by CoreLogic, which tracks price changes in repeat sales of homes.
According to CoreLogic, here are the states with the largest year-over-year gains in single-family home prices:

1. West Virginia: 8.6%
2. Wyoming: 3.6%
3. North Dakota: 3.5%
4. New York: 3.2%
5. Alaska: 2.2%
6. South Dakota: 1.5%

Nationally, single-family home prices were down 4.4 percent year-over-year in August, according to the index. Nevada posted the largest drop, falling 12.4 percent year-over-year.

First Team Real Estate Named "Best of Orange County"

It’s official – First Team was named the fan favorite real estate firm by you, our clients and friends, in the Orange County Register’s 2011 Best of OC readers poll!

And what better way to celebrate this honor than to launch our exciting “My Story” campaign? This innovative campaign shows why First Team was chosen number one, with inspiring stories told by our clients of the profound, positive impact in their lives our agents have made.

First Team Real Estate Mortgage Update