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According to recent reports and forecasts by housing analysts, the three-year descent in home prices appears to be at an end.  Eight cities, including San Francisco, showed price increases in May, up from four in April, and one in March, according to Standard and Poor’s/Case-Shiller Index.  For the first time since early 2007, the index of 20 major cities was virtually flat, rather than down.
 

• 1. Earlier reports show that sales of existing homes nationwide rose last month for the third consecutive month, while sales of new homes increased in June by the largest percentage in eight years, according to the NATIONAL ASSOCIATION OF REALTORS® (NAR) and the U.S. Commerce Dept., respectively.

• 2. Although some skeptics believe the market is pausing before home prices decline further, the median price in California’s housing market appears to be stabilizing. June marked the fourth consecutive month of rising home prices and the second largest gain on record for the month of June, based on statistics dating back to 1979. The year-to-year decline in June also was the smallest in the past 16 months.

• 3. The S&P/Case-Shiller price index for 20 cities showed a half-percent gain when May was compared with April. It was the first month-over-month increase in the index in 34 months. “It is very possible that years from now we will say that April 2009 was the trough in home prices,” said Maureen Maitland, vice president for index services at Standard & Poor’s.

• 4. One explanation for the increase in median prices is the rise in demand from buyers, especially first timers taking advantage of the $8,000 federal tax credit, which expires in December. The NATIONAL ASSOCIATION OF REALTORS® (NAR) is lobbying for the tax credit to be extended and to be replaced with a $15,000 credit for all buyers.

• 5. Another factor in the market’s resurgence is the prevalence of foreclosures, which make up about a third of all existing home sales. “Although another surge of foreclosures is expected later this year, demand remains strong, so the market may be able to absorb more distressed properties without significantly impacting the median price,” said C.A.R.’s Chief Economist Leslie Appleton-Young.

For all of your High Desert Real Estate needs visit our web site.

With real estate prices reaching near bottom and interest at such low rates, many High Desert real estate buyers are thinking of purchasing a home (or two, in some cases).  Before purchasing High Desert real estate experts, The Crown Team, recommend that potential buyers do a little research prior to making such a move.

A little up front foot work can save a lot of grief on the back side.  Most financial institutions have tightened their lending guidelines and increased their down payment requirements.  No longer can someone purchase a home without a down payment or documented income, nor can owners refinance multiple times without sufficient equity in the home.  See your lender early, if you don’t have a lender let us know and we will refer you some of the best.  We work with lenders every day so we know who you want to know and who to stay away from.

One of the primary factors financial institutions consider in their decision to lend is a strong credit record.  Borrowers can increase their chances of being approved for a home loan by requesting their credit report and FICO score at least six months prior to applying for a loan.  This allows the consumer to dispute errors and/or pay any outstanding debt. 

The first step in deciding whether or not to purchase a home is deciding how much a borrower can afford.  Recommendations for home buyers is to spend no more than 31 percent of their gross income on a home payment, including principal, interest, insurance, property taxes, and homeowners’ association dues.  When being pre-approved for a loan amount it’s important for you to know that you may be qualified as high as 40-42%.

Home buyers also should have a savings account with funds available to pay for home maintenance and unforeseen emergencies, such as a job loss. 

First-time buyers who are concerned about a potential job loss may apply for the CALIFORNIA ASSOCIATION OF REALTORS® Housing Affordability Fund, Mortgage Protection Program.  This Mortgage Protection Program provides qualified, first-time home buyers with up to $1,500 for up to six months to help make mortgage payments, if they are laid off.  Applications must be submitted by a California REALTOR®, among other qualifications.  For more information about MPP, please visit the Housing Affordability Fund Web site or contact the Crown Team.

For all of your High Desert Real Estate needs visit our web site.

Reports sales increased 20.1 percent, price declined 26.4 percent

Home sales increased 20.1 percent in June in California compared with the same period a year ago, while the median price of an existing home declined 26.4 percent, according to a C.A.R. report released Monday.

“Many first-time buyers, especially those who were previously priced out of certain areas, are realizing that tax credits from both the state and federal governments, increased affordability, and low interest rates are creating a prime time to purchase a home,” said C.A.R. President James Liptak.  “June marked the 10th consecutive month of positive sales gains, and the fourth month of rising median home prices.

Closed escrow sales of existing, single-family detached homes in California totaled 514,110 in June at a seasonally adjusted annualized rate, according to information collected by C.A.R.  

Statewide home resale activity increased 20.1 percent from the revised 427,910 sales pace recorded in June 2008. Sales in June 2009 decreased 6 percent compared with the previous month. The statewide sales figure represents what the total number of homes sold during 2009 would be if sales maintained the June pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

The median price of an existing, single-family detached home in California during June 2009 was $274,740, a 26.4 percent decrease from the revised $373,100 median for June 2008, C.A.R. reported. The June 2009 median price rose 4.2 percent compared with May’s $263,600 median price.

For all of your High Desert Real Estate needs visit our web site.

HUD (U.S. Dept. of Housing and Urban Development) offers an online guide to helping prevent foreclosure. The guide provides consumers with information such as how to contact a housing counselor, when and how to talk to their lender, how to find foreclosure resources, tips on avoiding foreclosure and foreclosure scams, as well as information for consumers who cannot keep their home. The guide to preventing foreclosure can be accessed by visiting

HUD Preventing Foreclosure

For all of your High Desert Real Estate needs visit our web site.