Buying A Home Can Be SCARY… Until You Know The FACTS!

Don't be Afraid to Buy a Home...Best investment you can do!

     Some Highlights:

• 36% of Americans think they need a 20% down payment to buy a home. 44% of Millennials who purchased a home this year have put down less than 10%.
  
• 71% of loan applications were approved last month.
• The average credit score of approved loans was 723 in September (the lowest recorded score since Ellie Mae began tracking in August 2011).
  

           

       

Beware if you are RENTING...

Renters: It is about to Get A Lot Worse We often promote homeownership over renting when a family is ready, willing and able to purchase. There are both financial and non-financial benefits to owning a home of your own. Based on the headlines below, many news outlets agreed with us after they reviewed a recent report from the Harvard Joint Center for Housing Studies and Enterprise Community Partners. The study states that the number of households spending 50% or more of their income on rent is expected to rise by over ten percent in the next decade.   They concluded: “Overall, this white paper projects a fairly bleak picture of severe renter burdens across the US for the coming decade.” What do other experts think of the report? You can tell by the headlines they chose to introduce their stories: “Renters, get ready to take it on the chin” - CNBC “The Rent Crisis Is About to Get a Lot Worse” - Bloomberg Business “Renters Will Continue to Struggle for the Next Decade” - World Street Journal “Why the renting crisis could be about to get a lot worse” - Fortune Magazine “Soaring rents are a problem that will only get worse” - Business Insider “High rents are here to stay” - The Real Deal Bottom Line If you are thinking about buying a home and are financially positioned to do so, now may be better than later. You can download the entire white paper here: Projecting Trends in Severely Cost-Burdened Renters.  If you are wondering if it may be time to see if you can buy a home instead of renting; CALL Me Today to find out the comparison. You may be paying more in rent than owning  your own home. Call me at 714.612.6446 or visit me on the web below.

Pending Home Sales Reach Highest Mark In 9 Years!

The National Association of Realtors (NAR) recently released their Pending Home Sales Index Report and revealed that it is at its highest level since April 2006. The Pending Home Sales Index is “a forward-looking indicator based on contract signings”. The higher the Pending Home Sales Index number, the more contracts have been signed by buyers that will soon translate to sales. Every region of the country has experienced year-over-year gains in pending sales as seen below:

                 

NAR’s Chief Economist, Lawrence Yun cites job creation as a major reason that the housing market has boomed this spring, going on to say,

"It's very encouraging to now see a broad based recovery with all four major regions showing solid gains from a year ago and new home sales also coming alive."

Yun went on to caution that,

"Housing affordability remains a pressing issue with home-price growth increasing around four times the pace of wages. Without meaningful gains in new and existing supply, there's no question the goalpost will move further away for many renters wanting to become homeowners."

So What Does This Mean To Buyers?

There is a lot of competition out there right now for your dream home. Prices are going to continue to climb, act now before you are priced out of your future home.

What Does This Mean to Sellers?

If you are on the fence about listing your home for sale right now and debating whether now is the time to move on with your plans of relocating… now is the time! There are more buyers that are ready, willing and able to buy their first, second, third, vacation, or investment property now than there has been in years! The supply of homes for sale is not keeping up with the demand of these buyers. Listing your home for sale now will give you the most exposure to buyers and the best sales price.

Bottom Line

Whether you are planning on buying or selling a house this year, waiting to act no longer makes sense. 

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Find Me @homesbyjosal

WHY YOU SHOULDN'T WAIT TO BUY A HOME!

The inaugural Opportunity Cost Report was released recently by realtor.com. The report explained that “with interest rates and home prices expected to climb in the next year, the financial penalties of delaying or forgoing a home purchase in today's market have become very steep”. 


The report estimates that, based on today's dollars, the average purchaser would accumulate $217,726 in increased wealth over a 30-year period. (You can get the projected wealth increase for almost 100 metros here.)

What could this mean to someone sitting on the fence waiting to buy?

Experts believe that both home prices and mortgage interest rates will increase over the next twelve months. Obviously, if this does happen, the monthly cost of a home a year from now will be dramatically higher than it is today. The Opportunity Cost Report breaks down exactly how much a purchaser could lose over increments of one year and three years. Here are the results based on an average purchaser in the U.S. delaying their purchase:

Bottom Line

If you are ready, willing and able to buy a home, waiting doesn't make sense. 

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Find Me @homesbyjosal

Open House this Sunday in Yorba Linda - June 7, 2015

Open House - Sunday, June 7 at 1 pm to 4 pm

Just Listed in Fairmont Hills in Yorba Linda

Come by and see this beautiful townhome

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Find Me @homesbyjosal

Existing Home Sales SKYROCKETED!

Yesterday, the National Association of Realtors (NAR) released their Existing Home Sales Report. The numbers shocked many analysts as they revealed a 10.4% increase over the same month last year.

This is the highest number of sales since September 2013. Sales have increased year-over-year for six consecutive months and the 10.4% increase is the highest annual increase since August 2013. March's sales increase was the largest monthly increase since December 2010.
Lawrence Yun, NAR’s chief economist, explained:

"After a quiet start to the year, sales activity picked up greatly throughout the country in March. The combination of low interest rates and the ongoing stability in the job market is improving buyer confidence and finally releasing some of the sizable pent-up demand that accumulated in recent years."

 

Now is the time to sell your home to get the best price in this market. Summer months are coming and this is the ultimate time to have your house on the market to get the best price and sell fast. Don't miss this opportunity before mortgage rates climb and buyers slow. Call Jodi Salazar today to get your FREE (CMA)Comparative Market Analysis on your property. Direct Line: 714.612.6446 (call or text) or visit her on the web at www.HomesByJoSal.com .

JUST LISTED - 4 beds / 3 Bath South Corona Home

Over 2,600 sq. ft.
Large Corner Lot
MLS #PW15040385
Offered at $479,000

South Corona, Corona    Beautiful Landscaped
4 Bedroom / 3 Baths South Corona Home. Over 2,600 sqft of living space. Open double door entry with spacious living room with vaulted ceiling. Carpet and tile throughout. Downstairs bedroom and bath. Formal dining room with wet bar. Kitchen has stainless steel stove, microwave and dishwasher along with lots of counter space. Kitchen has separate eating area which looks opens into a spacious family room with a gas or wood burning fireplace. Large upstairs bedroom. Master Bedroom has vaulted ceiling and ceiling fan. Private master bath has separate shower and bath. His and her closets with one being a walk-in. Mini-blinds throughout. Spacious landscaped backyard with wrap-around planters and patio for entertaining. Wooden storage shed on the side of house. 3-car garage both with door openers. Lots of cabinets and work space in garage. Views of the Cleveland National Forest is right outside your door. Close to Mangular and Ontario Park. Minutes away from the 91 Fwy & 71 Fwy for easy commute. NO HOA, NO Mello Roos. Don't Miss Out On This One!

Property information

5 Year Outlook on Home Prices

With inventory presently below historically normal levels, current & future home prices have been the topic of many real estate conversations. The most recent Home Price Expectation Survey was just released; giving insight into where experts believe prices will be leading up to 2019. Every quarter, Pulsenomics surveys a nationwide panel of over 100 economists, real estate experts and investment & market strategists about where prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.

Here are some highlights from their latest survey:

• Home values will appreciate by 4.4% in 2015.
• The cumulative appreciation will be 19.3% by 2019.
• That means the average annual appreciation will be 3.6% over the next 5 years.
• Even the experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of 11.7% by 2019.

We believe the survey is a fairer depiction of future values. 

It is a great time if your thinking of buying for the first time. There are some awesome loan programs available to you. Call Laura Contreras with Right Start Mortgage today to find out more at 562.691.5800 or you can visit her Facebook page at http://goo.gl/uVdCXd

If you are wanting to know what your current value is on your home or investment property, please don't hesitate for your FREE Evaluation Report. Call or Text me today at 714.612.6446.

Great News for FHA Homebuyers

Reduce FHA Premiums to Help Make Mortgages More Affordable.
These changes will save borrowers an average of nearly $1,000+ a year. 

·    FHA is reducing annual FHA mortgage insurance premiums by 0.5 percentage point from 1.35 percent to 0.85 percent, an average savings of $900 annually for new borrowers.

·    Lowered premiums will help more than 800,000 homeowners save on their monthly mortgage costs and enable up to 250,000 new homebuyers to purchase a home.

·    These steps will help support home sales, lower housing expenses for affected households, and help bring more balance to the housing market.

Mortgage insurance, required of FHA borrowers, is meant to protect the lenders in case of default by allowing them to recoup some of their losses.

Over the next three years, the FHA projects the rate drop will allow 2 million borrowers to save an average of $900 a year when they purchase or refinance a home. The agency also estimates these savings will encourage 250,000 first-time buyers to enter the market.

Learn more by visiting link below:
www.whitehouse.gov/the-press-office/2015/01/07/fact-sheet-making-homeownership-more-accessible-and-sustainable

Thinking about buying or selling? Contact me today.