May 2012 Archives » North OC Housing News

Frannie and Freddie repayment to the taxpayers could take until 2033

May 312012

At that point the Great Recession should be in the history books. That is not acceptable, I’m sure there are means to speed up the process. The unrealistic estimate is 15 years there is no economic set backs. Taxpayers may wait 15 years for GSE payback: Moody’s By Jon Prior May 30, 2012 • 12:40pm Taxpayers will likely wait 15 years until Fannie Mae and Freddie Mac repay their bailouts in full, according to the more optimistic forecast from Moody’s Analytics. Fannie turned its first profit in the first quarter since entering conservatorship in 2008. Freddie Mac has been operating at or near break-even for roughly six months. The improved performance prompted some to explore when the money will be [Read More...]

Home Values at post-crash lows

May 302012

And you probably haven’t hit bottom yet. You have the 4 big threats to home values: jobs, income, increasing mortgage rates, and declining government support. Homes Prices Drop 2% to Post-Crisis Lows: Case-Shiller Home prices fell in the first quarter to new post-crisis lows, but prices were up in March from February for the first time in seven months. The increase is the latest evidence of a slow recovery taking shape in the troubled housing market. The Standard & Poor’s/Case-Shiller home price index showed that prices increased in 12 of the 20 cities it tracks. Still, the major indexes ended the first quarter at new post-crisis lows, the report said. For the first quarter, prices were down 2 percent, compared [Read More...]

FHA goes way beyond it’s original goal in 5 short years

May 292012

FHA program was started to assist the first time home buyers in inexpensive housing. Now 5 years after the housing crash it’s morphed into the agencies to support sub prime borrowers and prop up home prices. Under Pressure, FHA Skews to Wealthier Home Buyers Published: Friday, 25 May 2012 | 12:20 PM By: Diana Olick CNBC Real Estate Reporter\ The Federal Housing Administration, the government insurer of home mortgages, is often credited with saving the home finance market during the worst of the latest housing crash. When no one else would lend to lower-income borrowers, the FHA stepped in, its share of mortgage originations rising from around 3 percent during the height of the housing boom to close to 40 [Read More...]

Tustin is posting rental decreases while home values increase

May 282012

Tustin Overview Median home price is $395,000. Based on a rental parity value of $488,000, this market is under valued. Monthly payment affordability has been worsening over the last 3 month(s). Momentum suggests worsening affordability. Resale prices on a $/SF basis increased to $257/SF to $264/SF. Resale prices have been falling for 12 month(s). Price momentum suggests falling prices over the next three months. Median rental rates increased $0 last month from $2,050 to $2,050. Rents have been rising for 12 month(s). Price momentum suggests rising rents over the next three months. Market rating = 8 Proprietary OC Housing News home purchase analysis 17511 NORWOOD PARK Pl Tustin, CA 92780 $625,000 …….. Asking Price $625,000 ………. Purchase Price 5/18/2012 [Read More...]

More reports of people combining households

May 272012

One result of this recession is that more families are have two generations of adults plus kids in one household. Usually the working parents need the retired generation’s retirement savings. Basically, we sort of becoming society where 3 incomes are needed to support one household. Amid Housing Struggles, More Marylanders Double Up May 23, 2012 By AMALIA EHRMANN and MARIA-PIA NEGRO Special to Capital News Service Mana Ali, 27, a graduate student, moved back in with her father and stepmother last year after she realized she could no longer afford to live in the townhouse she was sharing with her cousin. Then, her older sister and two children joined them. Add a stepbrother and half-sister and there are eight people [Read More...]

Current trends in the North Orange County housing market: 5-26-2012

May 262012

The OC Housing News profiles properties for sale each day and presents current market data on each city in Orange County. If you really want to know what’s happening in the OC Housing market, you need to read the OC Housing news and subscribe to the our monthly newsletter. 722 North ROSE St Anaheim, CA 92805 $294,900 728 North ROSE St 0.01 miles 3 bd / 2 ba 1,754 Sq. Ft. $420,000 1208 East WILHELMINA St 0.09 miles 4 bd / 2.5 ba 2,150 Sq. Ft. $359,000 1023 North LIBERTY Ln 0.31 miles 3 bd / 2 ba 1,524 Sq. Ft. $400,000 527 North CENTURY Dr 0.38 miles 4 bd / 2.5 ba 2,036 Sq. Ft. $342,000 1521 East REDWOOD [Read More...]

1 of 3 homes with a mortgage is underwater, meaning negative equity

May 252012

This has far reaching effects on the housing market for two very critical reasons. First, under water loans generally have much greater default rates and the more the loan owner is upside down then the greater the default risk. Second, these loan owners sell or trade up their existing home for a bigger home. That means the housing trade up market suffers and home values in this market will be under pressure. Also, please note how many loan owners are delinquent, the housing market has not turned a corner. Zillow: Nearly one-third of mortgaged homes underwater By Andrew Scoggin May 23, 2012 • 11:15pm The negative equity problem for U.S. homeowners might be worse than previously thought, at least according [Read More...]

The lack of existing inventory and low rates increasing home sales

May 242012

This news is being presented in way that indicates that housing market has bottom. This is the real situation with the housing market. Banks have kept REO’s off the market that it’s creating artificial housing shortage, which is pushing buyers to new homes. Once or if the existing inventory hits the market new home sales should decrease. Sales of New Homes in U.S. Climb More Than Forecast: Economy By Lorraine Woellert – May 23, 2012 1:20 PM PT Demand for new U.S. homes rose more than forecast in April, indicating residential real estate may contribute to economic growth for the first time in seven years. Purchases rose to a 343,000 annual rate, up 3.3 percent from a revised 332,000 in [Read More...]

NAr and CAr and trying to stop bulk REO sales in California

May 232012

It’s only introduced legislation but NAR and CAR have big lobby arms, however so do the banks. Realtors hate the bulk sales since they would get no commission on bulk sales. Only commissions on individual sales. Bill would stop bulk REO sales in California NAR backing sponsor Gary Miller’s reelection bid By Inman News, Friday, May 18, 2012. California Rep. Gary Miller — who’s getting major backing from the National Association of Realtors as he runs for reelection to Congress in a new district — has introduced a bill that would put the brakes on bulk sales of Fannie Mae real-estate owned (REO) homes in the state. H.R. 5823, the “Saving Taxpayers from Unnecessary GSE Bulk Sale Programs Act of [Read More...]

Ponzi’s are stealing from their parents

May 222012

The newest “it” generation are the Millennials, also known as the first generation to be worse than their parents. Millennials are facing an horrible employment and they were not the cause. However, they are also picking up the very worst of financial habits from their parents. Why Millennials Are Spending More Than They Earn, And Parents Are Footing The Bill ForbesWoman 5/18/2012 @ 4:43PM There’s a striking disconnect with today’s Millennials that can be best described through Steve Jobs’ infamous reality distortion field: Millennial lifestyles and spending habits do not reflect their financial realities. The majority of the 79 million U.S. Millennials are either unemployed, underpaid, or weighed down with student loans. One in four Millennials, for instance, has more [Read More...]