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.
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 March, the Commerce Department reported today in Washington. The median estimate in a Bloomberg News survey of 72 economists was 335,000. Data yesterday showed April sales of previously owned homes rose in every region.
“It’s very clear now that the housing market has turned a corner,” said Richard DeKaser, deputy chief economist at Parthenon Group LLC in Boston, who projected sales would increase to a 339,000 pace. “The only question is how strong the rebound is going to be. It bodes well for the broader economy.”
Job growth, improving affordability and record-low interest rates are helping propel sales at builders such as Toll Brothers Inc. At the same time, some banks remain reluctant to lend and foreclosures continue to move through the system, signaling a sustained housing recovery will take time to take hold.
Stocks erased earlier losses amid optimism European leaders will do more to halt contagion from the region’s debt crisis, helping the market reverse a plunge triggered by growth concern Greece will leave the euro. The Standard & Poor’s 500 Index rose 0.2 percent to 1,318.86 at the close in New York.
Elsewhere today, Bank of England policy makers kept open the possibility that they may resume stimulus, saying a decision to halt bond purchases this month was “finely balanced” because of risks from the euro area
Anaheim Overview
| Median home price is $309,000. Based on a rental parity value of $457,000, this market is under valued. |
| Monthly payment affordability has been improving over the last 2 month(s). Momentum suggests unchanging affordability. |
| Resale prices on a $/SF basis increased to $214/SF to $217/SF. |
| Resale prices have been weak for 12 month(s). Price momentum suggests weak prices over the next three months. |
| Median rental rates increased $33 last month from $$1,883 to $$1,916. |
| Rents have been slowly rising for 12 month(s). Price momentum suggests slowly rising rents over the next three months. |
| Market rating = 8 |
Proprietary OC Housing News home purchase analysis 
2274 West GRAYSON Ave Anaheim, CA 92801
$399,900 …….. Asking Price
$240,000 ………. Purchase Price
3/28/2012 ………. Purchase Date
$159,900 ………. Gross Gain (Loss)
($19,200) ………… Commissions and Costs at 8%
============================================
$140,700 ………. Net Gain (Loss)
============================================
66.6% ………. Gross Percent Change
58.6% ………. Net Percent Change
349.0% ………… Annual Appreciation
Cost of Home Ownership
——————————————————————————
$399,900 …….. Asking Price
$13,997 ………… 3.5% Down FHA Financing
3.80% …………. Mortgage Interest Rate
30 ……………… Number of Years
$385,904 …….. Mortgage
$102,452 ………. Income Requirement
$1,798 ………… Monthly Mortgage Payment
$347 ………… Property Tax at 1.04%
………… Mello Roos & Special Taxes
$100 ………… Homeowners Insurance at 0.3%
$402 ………… Private Mortgage Insurance
………… Homeowners Association Fees
============================================
$2,647 ………. Monthly Cash Outlays
($275) ………. Tax Savings
($576) ………. Equity Hidden in Payment
$18 ………….. Lost Income to Down Payment
$120 ………….. Maintenance and Replacement Reserves
============================================
$1,934 ………. Monthly Cost of Ownership
Cash Acquisition Demands
——————————————————————————
$5,499 ………… Furnishing and Move In at 1% + $1,500
$5,499 ………… Closing Costs at 1% + $1,500
$3,859 ………… Interest Points
$13,997 ………… Down Payment
============================================
$28,854 ………. Total Cash Costs
$29,600 ………. Emergency Cash Reserves
============================================
$58,454 ………. 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 # P821936 from our database. Please check back soon.
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$310,000 2235 West FALMOUTH Ave |
0.12 miles 3 bd / 2 ba 1,213 Sq. Ft. |
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$285,000 1333 North ALAMO St |
0.26 miles 3 bd / 1 ba 1,254 Sq. Ft. |
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$290,000 2178 West FALMOUTH Ave |
0.27 miles 3 bd / 2 ba 1,246 Sq. Ft. |
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$281,222 1304 North GILBERT St |
0.31 miles 3 bd / 2 ba 1,235 Sq. Ft. |
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$310,000 1123 North LOTUS St |
0.33 miles 3 bd / 2 ba 1,482 Sq. Ft. |
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$309,000 1334 North FERNDALE St |
0.38 miles 4 bd / 2.75 ba 1,425 Sq. Ft. |
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$299,900 1364 North FERNDALE St |
0.44 miles 4 bd / 2 ba 1,303 Sq. Ft. |
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$329,900 1333 North COLUMBINE Pl |
0.48 miles 4 bd / 1.75 ba 1,314 Sq. Ft. |
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$260,000 2067 West CORONET Ave |
0.54 miles 4 bd / 2 ba 1,363 Sq. Ft. |
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$345,000 2030 West LA PALMA Ave |
0.59 miles 4 bd / 2 ba 1,414 Sq. Ft. |
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Zillow: One-Third of Homeowners Underwater, 1 Out of 10 Delinquent
About 15.7 million U.S. homeowners were underwater in the first quarter of 2012, according to Zillow’s Negative Equity Report released Thursday. This translates to about one-third, or 31.4 percent, of homeowners with a mortgage, an increase from 31.1 percent in the previous quarter and a decrease from 32.4 percent a year ago.
Yet, most underwater homeowners are current on their mortgages, with nine in 10 continuing to make their payments on time. Also, just 10.1 percent of underwater homeowners are more than 90 days delinquent, Zillow reported.
“While it was disappointing to see negative equity numbers remain so high, it is important to note that negative equity remains only a paper loss for the vast majority of underwater homeowners,” said Zillow Chief Economist Stan Humphries. “As home values slowly increase and these homeowners continue to pay down their principal, they will surface again.”
While negative equity is never beneficial for homeowners, a large percentage of underwater borrowers are at least wading in shallow waters. Nearly 40 percent of underwater homeowners owe between 1 and 20 percent more than their home is worth, and another 21 percent owe between 21 and 40 percent more than their home’s value.
However, when looking at the total amount of negative equity that exists when combining all underwater homeowners, the number is $1.2 trillion. Through the $25 billion multistate settlement, $10 billion was allotted to reduce principal for underwater homeowners, an amount analysts have said is not enough to make a dramatic impact on recovery.
Additionally, 2.4 million homeowners with mortgages owe more than double what their home is worth. In Las Vegas, nearly 90,000 homeowners owe double their home’s value.
On a state level, Nevada has the highest percentage of negative equity, with 66.9 percent of all homeowners with mortgages underwater. Other states with high percentages include Arizona (52.3 percent), Georgia (46.8 percent), Florida (46.3 percent) and Michigan (41.7 percent).
The metro areas with the the highest percentage of homeowners with underwater mortgages were Las Vegas (79 percent), Phoenix (55.5 percent), Atlanta (55.2 percent), Orlando (53.9 percent), and Riverside, California (53.4 percent).
The metro areas with the lowest percentage of homeowners dealing with negative equity were Pittsburgh (16.7 percent), New York (21.3 percent), Boston (22 percent), San Jose (22.7 percent), and Philadelphia (25 percent).
Zillow also included an interactive map of the data organized by counties.
The Zillow Negative Equity Report looks at current outstanding loan amounts for individual owner-occupied homes and compares them to those homes’ current estimated values. Loan data are provided by TransUnion. According to Zillow, this is the only report that uses current outstanding loan balances on all mortgages when calculating negative equity, as opposed to basing outstanding loan balances on the most recent loan on a property, such as the original loan amount at the time of purchase or refinance.