New Year Same Low Interest Rates

Blog, Buying, Market Updates   |   Dunham Stewart
As the new year begins mortgage rates are remaining low, record lows in fact. It is anticipated that this policy will continue to move the economy towards recovery. Cheap mortgage rates have made home-buying and refinancing more affordable than ever for those who can qualify. Lenders are expected to keep mortgage rates low for borrowers in 2013, but savers shouldn’t expect to make much in return from their deposits. Larger 30 year FHA refi fixed rate loans can be had for 3.250% carrying an APR of 4.224%. (in eligible areas) Shorter term 15 year refi fixed rate loans have been quoted at 2.625% yielding an APR of 2.930%. When it comes to ARMs, 5 year refi loan is on the books at 2.125% with an APR of 2.947% to start with. The Federal Reserve keeps interest rates low to encourage people to borrow. The reserve also encourages others to spend and not save their cash in order to stimulate the economy. Problem is we are going now into our fifth year of these record low interest rates and we still have a very slow growth economy.

2013 Will Be Wake Up Call For Home Buyers

Blog, Buying, Real Estate Tips   |   Dunham Stewart
Home shoppers will likely have more urgency in the new year, wanting to buy before home prices rise even more. Home prices are edging up in most markets, and buyers are taking notice. Buyer surveys recently have shown that home shoppers expect home prices to continue to inch up, and they want to cash in before they rise too much higher. Rising prices could eventually encourage more sellers to put their homes on the market, which would help boost demand even further. These condition area a result of the slow but steady improvement in the operating fundamentals for the housing market, including 33 straight months of private sector job growth and rising housing formations. Steady buying by investors has also helped reduce distressed home inventories. With supplies dwindling, home prices have improved across much of the country, which is helping bring trade-up buyers back into the market. In 2013, rising rents are expected to push more renters to buy, according to a Wall Street Journal report.

Top 10 Legal Mistakes South Bay Home Buyers Make

Blog, Buying, Community News, Real Estate Tips, South Bay Living   |   Dunham Stewart

No one can predict precisely where the market is going, so trying to time your home purchase with the bottom of the market is futile. If you’re financially and emotionally ready to be a homeowner, it’s always a good time to buy. Just think: all the time you spend procrastinating on purchasing a home, you could be building equity, getting tax deductions and enjoying the many other benefits of homeownership! Here are some common blunders to avoid—and could mean the difference between financial security and a mountain of debt:

Rising Prices Drive Out Real Estate Investors

Blog, Buying, Market Updates, Real Estate News   |   Dunham Stewart
Investor participation in the housing market dropped sharply in July, establishing a two-month trend and showing a clear reversal of long-term growth in investor purchases of residential properties. Investors need a deal and are having a hard time finding what they want. While investors often concentrate their purchases on distressed properties, the decline in investor purchases was also apparent in the non-distressed market. Investor participation in the housing market fell to 21.9 percent of all transactions in July, from 23.5 percent in June, based on a three-month moving average. Investor participation back in May of this year hit a two-year peak of 25.3 percent of all transactions. In contrast to investors, current homeowners showed strong interest in buying homes, accounting for 43.5 percent of home purchases in July, up from 40.3 percent in May and 42.0 percent in June.

Housing Over The Hump?

Blog, Buying, Real Estate News, Real Estate Tips, Selling   |   Dunham Stewart
Nearly seven years after the housing bubble burst, most indexes of house prices are bending up.  The U.S. finally has moved beyond attention-grabbing predictions from housing “experts” that housing is bottoming. The numbers are now convincing.  The reduced inventory of unsold homes is key. For the past couple of years, house prices have risen in the spring and then slumped; the declining supply of houses for sale is reason to believe that won’t happen again this year. Builders began work on 26% more single-family homes in May 2012 than the depressed levels of May 2011. The stock of unsold newly built homes is back to 2005 levels. In each of the past four quarters, housing construction has added to economic growth. Economists aren’t always right, but on this at least they agree: A new Wall Street Journal survey of forecasters found 44 believe the housing market has reached its bottom; only three don’t. Check out some of the graphs and charts: Click Here

Redondo Beach Home Prices Rising

Blog, Buying, Community News, Market Updates, North Redondo Beach News   |   Dunham Stewart
It is hard to believe that we are already at the middle of 2012, time sure flies when you are having fun. We are also in the middle of a the prime home buying and selling season, and the good times are rolling. The mood in the market place has shifted, buyer are motivated to take advantage of record low interest rates, with that said homes are selling quickly and for more money. According to the MLS in Redondo Beach 87 transactions closed in May 2012, compared to 55 in May 2011. That is an increase of 58%. In June there we more homes in escrow in Redondo Beach than were listed for sale, that is someting we have not seen since the boom of 2005. The net result is that Redondo Beach real estate is appreciating

South Bay Real Estate is Moving

Blog, Buying, Community News, Hermosa Beach News, Real Estate News, Selling   |   Dunham Stewart
City officials have noticed an uptick in new condominium projects in Hermosa Beach this year, continuing a trend that began in Manhattan Beach. Community Development Director Ken Robertson said his office has received six applications this year for condo projects, which range between two and four units. In 2009 and 2011, the city received just two applications for multi-unit condo projects. After having no condo projects in 2009, the city of Manhattan Beach approved a total of five in 2010 and 2011. Although no applications have been filed so far this year, Manhattan Beach building officials, expects that to change in the second half of the year. The number of new single family homes being built continues to increase over the past three years, and permits for home remodeling and additions are increasing by 30 percent year-to-year since 2010. In Hermosa, the number of new single family homes approved went from 8 in 2010 to 19 in 2011, with five so far this year. When you see this volume of application in a short period like this it really shows that things in the residential construction or development market are changing, Generally this is an indicator that more speculative type of development is going on rather than custom home remodels or custom home building.

Housing Affordability Hits Record High

Blog, Buying, Market Updates, Real Estate News, Selling   |   Dunham Stewart
Housing affordability conditions have reached the highest level since recordkeeping began in 1970, according to the National Association of Realtors®. NAR’s Housing Affordability Index rose to a record high 206.1 in January, based on the relationship between median home price, median family income and average mortgage interest rate. The higher the index, the greater the household purchasing power. An index of 100 is defined as the point where a median-income household has exactly enough income to qualify for the purchase of a median-priced existing single-family homeThe projections for the affordability index for all of 2012 will be at an annual high, with little movement in mortgage interest rates or home prices during the year. Read the full story at Click Here

Pending Home Sales On The Rise

Blog, Buying, Real Estate Tips, Selling   |   Dunham Stewart
Pent-up demand could finally be working its way through the market. Pending home sales rose sharply in October according to the National Association of Realtors. The latest statistics reveal that contract signings rose 10.4 percent for the month and are now 9.4 percent above 2010 levels. This is an encouraging sign that pent up consumer demand building over  the past several years could finally translate into meaningful  improvement for the housing market. The driving force behind this improvement increased affordability, from record low mortgage rates and downward pressure on pricing. Read more Click Here

Owning Continues to Become More Affordable

Blog, Buying, Real Estate Tips   |   Dunham Stewart
Home prices and mortgage rates have fallen so far that the monthly cost of owning a home is more affordable than at any point in the past 15 years and is less expensive than renting. Low home prices mixed with low mortgage rates—hovering at 4 percent or even lower—are creating an appealing buyer’s market. Home ownership is also looking more affordable because after several years of declines, apartment rents are on the rise, and is projected to rise by around 4% this year. Great article with videos and interactive graphics: Click Here
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