Tag Archives: california real estate

Achieving The American Dream

Achieving The American Dream

The American Dream. Having a loving family, attaining a stable job, and most importantly possessing your own home, even if it’s not in Santa Maria, California or somewhere near the Central Coast. All of these accomplishments can be challenging at times, especially taking the next step of  having your own home. With financial planning and legalities, it all starts with a bit of knowledge of the industry and some research.

Purchasing a Home in the United States

The United States Real Estate market is tremendous, especially the Santa Maria Real Estate area since it is continuing to grow. One thing to keep in mind is that each state has their own unique set of policies, set of laws, and not to mention taxes. So don’t be surprised when you notice different tax rates in various cities and states. Also Keep in mind that their are many incentives for individuals such as veterans who have served our country. Veterans qualify for loans known as VA Loans and many lenders out there offer these kinds of incentives that better help them achieve the home of their dreams.

Property Taxes

As mentioned above, taxes vary by state. So when you are asking yourself how much house can I afford, do not forget to include property taxes as the tend to add up. They are used to fund public projects such as schools, parks, and things such as law enforcement. Knowing ahead of time what kind of taxes you will be paying will give you a better picture of the cost of living in your new home, especially if you are planning on moving out of state; do some research.

Educate Yourself On the Real Estate Market

One should also know what exactly drives house prices in the market, especially in the Central Coast Real Estate area because it has gained popularity in past years. Instability in house prices vary from state to state and from region to region. For example, a home in the Arroyo Grande, California will not have the same price as a beach from property in the Pismo Beach, California area even though their proximity is not to far apart. Same applies to locations such as Los Angeles, California and New York (especially within the city). We at Greater Mortgage Solutions and Valley Hills Realty want to teach you about the macro and micro trends that influence the real estate market. That way you can make a better decision when making a mortgage deal that is being offered to you.

So when you, a family member, or a close friend of yours is ready to achieve The American Dream, consider allowing one of our team of experts at Greater Mortgage Solutions and Valley Hills Realty help you attain the precise mortgage and the home you have always wanted. We are filled with team members that are ready to help you every step of the way.

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What Is Happening In Real Estate Today

Get some insight on what is happening in Real Estate today here are some of the latest articles. 

Real Estate 2014: The New Wisdom | AOL Real Estate

http://realestate.aol.com Sat, 01 Feb 2014 14:33:25 GMT

Here are some of the new twists real estate experts see for 2014.

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How Much Are Transaction Fees on a Real Estate Sale? | Zillow Blog

http://www.zillow.com Thu, 30 Jan 2014 23:55:54 GMT

Cash Flow Real Estate Many consumers believe that real estate transaction costs are simply the 5 percent to 6 percent of the sales price that the real estate agent earns as commission. But the real costs of selling property are 

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California Real Estate Fraud Report » Blog Archive » Elk Grove Man

http://www.californiarealestatefraudreport.com Fri, 31 Jan 2014 01:40:41 GMT

The man known as a “closer” among his fellow defendants was found guilty by a federal jury today a real estate investment fraud scheme that cost investors almost $37 million. Christopher Jackson, 46, was part of a company 

Read more …

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California Real Estate Foreclosure Market



By • Jul 24th, 2012 • Category: Charts

This Market Chart presents current trends in foreclosures and pre-foreclosure activity statewide.

54,615 notices of default (NODs) were recorded in California in the second quarter of 2012, down from 56,633 one year earlier. 21,851 foreclosures (marked by trustee’s deeds) were recorded in the second quarter of 2012, a drop of 49% from one year earlier. Among California’s largest counties, the greatest one-year drops in foreclosures took place in San Bernardino (-51%) Riverside (-50%), San Diego (-50%) and Contra Costa (-50%) counties. [For further details and analysis of the most recent quarter’s NOD and foreclosure numbers, click here.]


Chart last updated 7/24/12

2nd Quarter: 2012 1st Quarter: 2012 2nd Quarter: 2011
54,615 NODs
56,258 NODs
56,633 NODs
21,851 TDs
30,261 TDs
42,465 TDs

Chart last updated 7/24/12

2nd Quarter: 2012

36%
1st Quarter: 2012

42%
2nd Quarter: 2011

61%

Data courtesy of Dataquick

These charts track the number of Notices of Default (NODs) and trustee’s deeds (TDs) recorded quarterly in California from 1994 to the present, along with the estimated percentage of NODs that have actually gone to foreclosure quarterly over the last four years.

Recording an NOD is the lender’s first step in the foreclosure process; the recorded trustee’s deed is the final step, at which point the property is placed in the Multiple Listing Service (MLS) as a real estate owned property (REO). The entire process takes place over a period of approximately four to five months, although this time period has recently been extended by government interference at both state and federal levels. As a consequence of this interference (designed to postpone NOD recordings and reduce trustee’s sales and evictions) we will not know the full impact of recent NODs on the total percentage of NODs which go to a trustee’s sale (and thus become REOs) until 2013.

An NOD is typically recorded when the homeowner falls more than three months behind on mortgage payments. NODs are thus a good, although not foolproof (due to adjustable rate mortgage (ARM) originations in 2005 and 2006) indicator of the financial condition of ownership in a given regional market. As such, they give a basis for predicting the number of foreclosure sales and the size of the REO inventory to come in the following six to eight months.

Copyright © 2012 by first tuesday Realty Publications, Inc. Readers are encouraged to reprint or distribute this information with credit given to the first tuesday Journal Online — P.O. Box 5707, Riverside, CA 92517.

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California Real Estate Market Numbers

By • Oct 19th, 2011 • Category: October 2011 Journal, real estate newsflash

35,404 new and resale home transactions closed escrow in California during September 2011, up 7% from one year ago when 33,176 sales closed escrow. September is the second month in 2011 in which home sales volume surpassed the corresponding month in 2010.

September’s numbers, however, are down 6% from August; a typical drop for this time of year.

The recovery’s overall bumpy plateau trend continues to reflect a leveling in home sales in 2011, following a decline that set in after mid-2010. Annual home sales volume is expected to remain at or below 2010’s numbers through the end of 2012.

Real estate owned property (REO) resales made up roughly 36% of all sales in the second quarter of 2011— down significantly from 46% one year earlier. However, this still-high proportion of REOs is expected to remain a constant for three or four years to come. In 2012, delinquencies are expected to be more efficiently foreclosed by servicers under contracts with big mortgage banks, which have thus far proven hesitant to foreclose in large numbers. [For our most current data on REOs statewide, see the first tuesday Market Chart, REO Resales.]

Absentee homebuyers (a group generally composed of speculators and investors) accounted for 24% of Southern California (SoCal) sales and 19% of sales in the Bay Area, basically unchanged from August, when absentee buyers made up 25% and 19% of all purchases, respectively. Current absentee levels remain near the historic records of 26% and 20%, respectively, set in January and February of 2011.

“Jumbo loans” (loans over the old conforming limit of $417,000) accounted for 18% of sales in SoCal, level with one year earlier, and 33% of Bay Area sales, a minor slip from 34% one year earlier. 2010 saw a sharp rise over 2009 in the use of Jumbo loans, likely attributable to an increase in foreclosures among high-tier properties and the Federal Housing Administrations  (FHA’s) increase of their loan insurance ceiling to $724,000. Jumbo use remains far below its market share height in the boom times of 2006 and 2007.

FHA-insured loans made up 33% of SoCal mortgage recordings, up 1% from August but down a bit from 35% one year earlier. FHA-insured loans made up 22% of Bay Area mortgages, also level with August and slipping from 24% recorded one year earlier.

first tuesday forecasts this percentage for FHA-insured loans will continue to drop in the future, as buyer’s agents become aware that other government agencies and private mortgage insurers now guarantee almost all types of highly-leveraged conventional loans, including loans with low down payments and down payments from unconventional sources (family loans, gifts).

Importantly, the combined rate of interest and private mortgage insurance (PMI) is currently lower than the combined rate of FHA-insured loans, making the FHA loan less appealing by design. [For a comparative cost analysis of FHA and PMI loans, see the first tuesday Market Chart, FHA, PMI, or neither?]

Adjustable rate mortgages (ARMs) made up 7% of all SoCal mortgages, down 2% from last month, but up 2% from one year ago. ARM use in the Bay Area also dropped, for the first time in recent months, to 13% of all mortgages from 16% in August. Bay Area ARM use remains up from 9% one year ago. This volume of ARMs places no pressure on prices

Cash purchases represented 29% of SoCal and 28% of Bay Area sales in September 2011. Although these numbers are down slightly from February 2011’s record highs of 32% and 32%, respectively, they remain abnormally high in both districts, indicating speculators are still at work.

The ongoing spike in cash purchases indicates that speculators are still optimistic about a potential recovery in real estate sales volume and pricing. Both sales aspects have slipped since late 2010; not a good sign for speculators, who require very high profits to be successful.

first tuesday take: Over the last 12 months, home prices have risen and fallen from quarter to quarter, but show no sign of any sustained increase in sales volume, much less prices. The recent trend in both sales volume and pricing was a slow drop since mid-2010, and both are likely to remain low until employment and homebuyer confidence improve significantly. At the moment, interest rates are slipping and prices are low: the right combination for a sales volume increase in the near future (if employment and confidence can support it). [For more on homebuyer confidence, see the first tuesday Market Chart, Trends in homebuyer expectations; for more on California employment, see the first tuesday Market Chart, Jobs move real estate.]

For now, signs indicate that continued vacillation in both home sales volume and pricing on the washboard plateau of a real estate recovery – one quarter up, the next one down – will be the norm for at least two more years, and will probably continue through 2015. Home sales volume, especially, is unlikely to show any sustained improvement until California experiences 18 continuous months of major monthly increases in employment numbers; support that has yet to begin. [For more on current home pricing, see the first tuesday Market Chart, California tiered home pricing.]

In the absence of increased jobs and confidence numbers, low interest rates and home prices remain the sole drivers of real estate sales volume (with help from well-informed agents). The dynamite combination of low mortgage rates and low home prices is certain to spark a slight rise in sales volume going into 2012, but no more than that. Prices movement is years away.

Be warned: any significant increase in sales volume or prices will lead to a corresponding rise in interest rates and put an end to that run within 12 to 18 months (as occurred in following recessions in 1984 and 1994). Only statewide employment gains of 400,000 plus annually, as took place in the late 1990s, can sustain a full recovery for California’s real estate markets. Another bubble, in real estate or jobs, is entirely out of the question. [For more on the influence of rates on home sales, see the first tuesday Market Chart, Buyer Purchasing Power.]

Even after 2015, expect annual price increases to be modest. If the historical trends at the end of the Great Depression in the 1940s are any guide, real estate prices are not likely to rise at or faster than the rate of inflation reported in the Consumer Price Index (CPI). Today’s interest rates, which remain at essentially zero, will do nothing to bolster pricing.

Remember, the game-changer 2008 recession ended in mid-2009, but an ongoing financial crisis remains, superimposed on the economic recovery. Going forward, real estate (asset) prices cannot (generally) rise faster than the rate of consumer inflation without a drop in interest rates or a jump in the state’s gross domestic product (GDP), as happened in the 1980s and 1990s – neither of which are anywhere on the horizon in California.

Copyright © 2011 by first tuesday Realty Publications, Inc.


 

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