As loan owners get foreclosed and evicted that one reason. However, younger families are not purchasing homes, but renting. And adult children are moving in back with their families after college. In fact Texas was the only state in 2011 that an increase in the number of households.
Homeownership Rate Likely to Continue Falling: Capital Economics
07/17/2012 By: Esther Cho
For the first quarter of 2012, the Census Bureau reported the homeownership rate dropped to 65.4 percent, which was a yearly (66.4 percent) and quarterly drop (66.0 percent). Even more significant was the fact that the drop was a 16-year low from when the rate was 65.1 percent in 1996.
According to Capital Economics, the low homeownership rate is likely to get a little lower.
In a report, Paul Diggle of Capital Economics wrote, “it’s plausible that tight credit, subdued confidence and many more foreclosures will drive the homeownership rate down to 64%.”
The report explained that tight credit keeps young households from being able to qualify for a purchase, falling prices and a lack of confidence prevents households from deciding to own even if they could qualify for a loan, and foreclosures are turning former homeowners into renters.
Anaheim Hills Overview
| Median home price is $425,000. Based on a rental parity value of $568,000, this market is under valued. |
| Monthly payment affordability has been improving over the last 7 month(s). Momentum suggests improving affordability. |
| Resale prices on a $/SF basis increased from $240/SF to $243/SF. |
| Resale prices have been falling for 12 month(s). Price momentum suggests falling prices over the next three months. |
| Median rental rates declined $0 last month from $2,358 to $2,357. |
| Rents have been slowly rising for 12 month(s). Price momentum suggests slowly rising rents over the next three months. |
| Market rating = 6 |
Proprietary OC Housing News home purchase analysis 
8081 East SPRINGVIEW Ct Anaheim Hills, CA 92808
$345,000 …….. Asking Price
$198,000 ………. Purchase Price
7/30/1999 ………. Purchase Date
$147,000 ………. Gross Gain (Loss)
($15,840) ………… Commissions and Costs at 8%
============================================
$131,160 ………. Net Gain (Loss)
============================================
74.2% ………. Gross Percent Change
66.2% ………. Net Percent Change
4.3% ………… Annual Appreciation
Cost of Home Ownership
——————————————————————————
$345,000 …….. Asking Price
$12,075 ………… 3.5% Down FHA Financing
3.80% …………. Mortgage Interest Rate
30 ……………… Number of Years
$332,925 …….. Mortgage
$88,387 ………. Income Requirement
$1,551 ………… Monthly Mortgage Payment
$299 ………… Property Tax at 1.04%
………… Mello Roos & Special Taxes
$86 ………… Homeowners Insurance at 0.3%
$347 ………… Private Mortgage Insurance
………… Homeowners Association Fees
============================================
$2,283 ………. Monthly Cash Outlays
($237) ………. Tax Savings
($497) ………. Equity Hidden in Payment
$15 ………….. Lost Income to Down Payment
$106 ………….. Maintenance and Replacement Reserves
============================================
$1,671 ………. Monthly Cost of Ownership
Cash Acquisition Demands
——————————————————————————
$4,950 ………… Furnishing and Move In at 1% + $1,500
$4,950 ………… Closing Costs at 1% + $1,500
$3,329 ………… Interest Points
$12,075 ………… Down Payment
============================================
$25,304 ………. Total Cash Costs
$25,600 ………. Emergency Cash Reserves
============================================
$50,904 ………. Total Savings Needed
——————————————————————————————————————————————-
This property is available for sale via the MLS.
Please contact Shevy Akason, #01836707
949.769.1599……
sales@ochousingnews.com…..
We're sorry, but it seems that we're having some problems loading MLS # P827826 from our database. Please check back soon.
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$325,000 8068 East SPRINGVIEW Ct |
0 miles 2 bd / 2 ba 1,104 Sq. Ft. |
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$435,000 7955 East ACORN Ct |
0.04 miles 3 bd / 2.5 ba 1,500 Sq. Ft. |
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$315,000 8014 East NAPLES Ln |
0.09 miles 2 bd / 2.25 ba 1,100 Sq. Ft. |
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$329,900 8078 East VENICE Way |
0.09 miles 3 bd / 2 ba 1,200 Sq. Ft. |
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$334,900 1024 South GIBRALTAR Ave |
0.16 miles 2 bd / 2.5 ba 1,205 Sq. Ft. |
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$395,000 7723 East PORTOFINO Ave |
0.29 miles 3 bd / 2.75 ba 1,400 Sq. Ft. |
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$252,000 1034 South SAINT TROPEZ Ave |
0.29 miles 2 bd / 2 ba 1,006 Sq. Ft. |
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$273,000 1042 South DEWCREST Dr |
0.29 miles 2 bd / 2 ba 1,100 Sq. Ft. |
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$369,990 1055 South DAYBREAK Ct #203 |
0.29 miles 2 bd / 1.75 ba 1,281 Sq. Ft. |
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$329,000 1031 South SUNDANCE Dr |
0.29 miles 2 bd / 1.75 ba 1,081 Sq. Ft. |
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Donovan: Expanding refinancing programs will be ‘a real fight’
The Obama administration continued pressure on Congress Thursday to pass three bills that would help more creditworthy underwater borrowers refinance.
“It’s going to be a real fight to get this done,” said Department of Housing and Urban Development Secretary Shaun Donovan during a Google “hangout” with borrowers. “This is something that ought to go beyond politics. In the past we had Democrats and Republicans support things like this.”
More than 11.4 million borrowers owe more on their mortgage than their home is worth, according to CoreLogic ($20.45 0%). Although that number declined from the end of last year, home prices remain unsteady. Many waiting for the market to naturally return equity to their home face years of negative equity.
Donovan pitched three bills the administration is focusing on.
The first from Sens. Robert Menendez, D-N.J., and Barbara Boxer, D-Calif., would expand the Home Affordable Refinance Program once again. Some Senate Republicans may be on board. The Federal Housing Finance Agency removed some hurdles to the program last year including the cap on loan-to-value ratios, some appraisal requirements and repurchase risk on the old loan.
The result was a sharp increase in HARP refinancing beginning in March, but some borrowers are still left out, particularly those whose servicers do not participate in the program because of the remaining buyback risk.
The Menendez-Boxer bill would strip out all repurchase risk for Fannie Mae and Freddie Mac loans refinanced through the program and it would waive appraisal requirements for the remaining loans that still require it.
It also extends the HARP cut-off deadline to borrowers whose mortgage was originated before June 2010. As of now, only borrowers with loans taken out before June 2009 can qualify.
A second bill from Sen. Dianne Feinstein, D-Calif., introduced in May, would allow refinancing for underwater borrowers holding mortgages backed by the Federal Housing Administration. It creates a $6 billion fund to insure the new loans.
Donovan mentioned a third bill from Sen. Jeff Merkley, D-Ore., would allow borrowers to refinance under HARP and rebuild equity in their home a bit faster.
If it is passed, a borrower could refinance into a 20-year loan term or shorter, and Fannie or Freddie would cover the closing costs. Keeping the monthly payment the same, a borrower would then be able to rebuild equity faster.
Donovan said this option is still available to borrowers under the expanded HARP, but under the bill, the closing costs are covered.
Jaret Seiberg, a policy analyst at Guggenheim Partners, said these bills stand little chance of making it to Obama’s desk this year. Odds are highest for getting the Menendez-Boxer bill passed but much lower for the others. The Feinstein bill especially would be difficult given the still fragile state of the FHA emergency insurance fund.
“We see that as a poison pill designed to sink the entire package,” Seiberg said.
Donovan said the administration will continue to push the bills through in order to give some relief to struggling borrowers.
“Everyone here is still paying their mortgage,” Donovan said of the homeowners asking him questions over Google. “They’re meeting their responsibility. The president believes that we should give every one of them the ability to refinance into a lower-rate mortgage.”