Could Decline in Median New-Home Size Herald Return of Entry-Level Buyers?

Builders appear to be shifting to slightly smaller, more affordable homes when it comes to newly built, single-family homes in the U.S.  Overall, there are early signs emerging that entry-level buyers are coming back. Commerce Department data shows the median size of a single-family home built in the third quarter was down 2.3 percent from the second quarter. Source: Wall St. Journal
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HUD secretary says housing finance reform remains a top priority for the Obama administration

Overhauling the mortgage finance system remains a top priority for the final two years of the Obama administration, according to HUD Secretary Julian Castro. As a way to boost the housing market’s recovery, Castro urged the next Congress to consider legislation that would wind down and eventually eliminate mortgage giants Fannie Mae and Freddie Mac. Source: The Hill
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Why It’s So Hard for Millennials to Find a Place to Live and Work

Young people looking to launch their careers often are forced to choose between a place with affordable housing but little upward mobility versus a region with strong upward mobility and scarce affordable housing. The Atlantic notes that “When good jobs for the middle class and affordable homes are living in different cities, it represents a slow-motion splintering of the American Dream.” It presents a problem for the livelihood of Americans that affordable homes cluster in the cities with lower wages and less upwardly mobile families. Source: The Atlantic
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Nine Reasons to Buy a House Right Now

If you’re in the market to buy a home, then now might be the perfect time to seal the deal on your purchase, as there are several conditions working in the favor of home buyers. Firstly, gains in home prices have slowed down and mortgage rates historically remain low. Furthermore, loan requirements are softening, and with fewer buyers around the holidays, there could be less competition and more bargaining power for buyers. Source: RealtyTimes
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Barely 1 in 5 L.A. homes affordable to middle class, study finds

Los Angeles County is the second-least affordable housing market in the country for a middle-class family, according to real estate website Trulia. Overall, six of the seven least-affordable markets in the nation are in California, including San Diego (25 percent), Orange County (26 percent) and Ventura County (33 percent). Sky-high prices coupled with soft income growth continue to push home-buying out of reach for many Californians. Source: LA Times
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Foreclosures Surge? Take a Closer Look

Claims regarding a new “surge” in foreclosures and bad debt appear to be exaggerated based on data from the Mortgage Bankers Association. The foreclosure picture is looking better, not worse, than it was one year ago. The share of loans in the foreclosure process during the July-to-September period fell to 2.4 percent of all loans, from 3.1 percent one year earlier. Source: Wall St. Journal
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From C.A.R. ~ C.A.R. Market Matters is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide.

Dave Thurman Real Estate

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Millennials Looking Toward Homeownership!

 

How to Choose a Home

Here are some tips to help determine which house is best for you.

Once you’ve settled on a couple of preferred neighborhoods for your home search, it’s time to pick out a few homes to view. Having a house features “wish list” keeps you focused on which features are most important to you.

When narrowing down your home search, consider the following:

  • know what types of home you want to buy
  • determine what age and condition of the house you want to buy
  • consider resale potential
  • use a features wish list to keep focused
  • use a home search comparison chart to keep organized
  • act decisively when you find the right home

Dave Thurman Real Estate

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Homebuilders: Just one in six housing markets back to normal

According to the National Association of Home Builders/First American Leading Markets Index, the housing recovery is happening but very slowly. Overall, just one in six housing markets is back to normal. Source: HousingWire

Making sense of the story

  • Markets in 59 of the roughly 350 metro areas nationwide returned to or exceeded their last normal levels of economic and housing activity in the third quarter of 2014.
  • This represents a year-over-year net gain of seven markets.  Overall, 66 percent of markets have shown an improvement year over year.
  • The index’s nationwide score moved up slightly from 0.89 in the second quarter to 0.90, meaning that based on current permit, price and employment data, the nationwide average is running at 90 percent of normal economic and housing activity.
  • NAHB Chief Economist David Crowe commented, “An uptick in the number of single-family permits, which is currently only 44 percent of normal activity, is the key to a full-fledged housing recovery. In the 17 metros where permits are at or above normal, the overall index shows that these markets have fully recovered.”
  • Major metro areas where market activity now equals or exceeds the previous norm include the following: Austin, Texas; Honolulu; Oklahoma City; and Houston. Rounding out the top 10 are Los Angeles; San Jose, Calif.; Salt Lake City; New Orleans; and Charleston, S.C.
  • Kurt Pfotenhauer, vice chairman of First American Title Insurance Company, commented, “Nearly half of all the markets on the Leading Markets Index are up since August, which is a good sign that the ongoing housing recovery will keep moving forward in 2015.”
  • The index is created by evaluating more than 350 metro areas, which are scored by taking their average permit, price and employment levels for the past 12 months and dividing each by their annual average over the last period of normal growth.

Read the full story

Talking Points …

  • Lower interest rates and minimal home price gains kept California’s housing affordability in check in the third quarter of 2014 and even helped improve affordability in some high-cost counties in the San Francisco Bay region, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).
  • The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California in third-quarter 2014 was unchanged from the 30 percent recorded in the second quarter of 2014 but was down from a revised 32 percent in third-quarter 2013, according to C.A.R.’s Traditional Housing Affordability Index (HAI).
  • Home buyers needed to earn a minimum annual income of $94,960 to qualify for the purchase of a $467,700 statewide median-priced, existing single-family home in the third quarter of 2014.  The monthly payment, including taxes and insurance on a 30-year, fixed-rate loan, would be $2,370, assuming a 20 percent down payment and an effective composite interest rate of 4.23 percent.

Millennials still grapple with first-time homebuying
Source: HousingWire

Tightened inventory, difficulty receiving credit and lower-than-average salaries have kept many of these buyers out of the market, but most economists see that as a temporary setback. Jonathan Smoke, chief economist for realtor.com, commented, “Millennials are the largest generation of people in the U.S. and represent 60% of first-time homebuyers. They are also more likely than any other group to purchase a home in the next year.”
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From C.A.R. ~ C.A.R. Market Matters is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide.

One of my specialties is representing the best interests of buyers throughout the home buying process. My comprehensive, high-quality services can save you time and money, as well as make the experience more enjoyable and less stressful.

If you’re like most people, buying a home is the biggest investment you’ll ever make. So why not take advantage of my knowledge and experience as a local market expert to make the most informed decisions you can, every step of the way.

I enjoy and take great pride in helping people like you find the homes you want, as well as with completing all aspects of the transaction. So when you decide to buy in the Stockton, Manteca and Lodi areas, please call or email me any time.

About Dave Thurman

 

 Dave Thurman Real Estate

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Attention building contractors and handyman investors! Fixer on 2 Large Lots in French Camp near Stockton, California

Fixer-upper! Just Listed with Dave Thurman, REALTOR ~ $125,000

Description: APN:193-250-08 and APN:193-250-07 to be sold together in one transaction. Price is $125,000 for both parcels. Total Lot Sq: 16,552 Total Lot Acres: .38

Attention building contractors and handyman investors! This property is the perfect building project to build 2 new single family residences. Front house could be remodeled or demolished. Drive by 9872 – 9878 S Lockhart Rd, French Camp CA 95231 

Contact Dave Thurman and make your all cash offer today!

  

  

Thinking of Selling Your Home?

Dave Thurman Real Estate

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Share of First-Time Home Buyers Hits 27-Year Low

First-time home buyers represent a traditionally reliable slice of the housing market, but they now comprise the smallest share of U.S. buyers in nearly three decades. Their absence in the market is raising questions about the impact of the crash on potential homeowners. Source: Wall St. Journal

Making sense of the story

  • Just 33 percent of primary residences sold this year were purchased by first-time buyers, down from 38 percent last year to the lowest level since 1987.
  • First-time-buyer share of home sales have typically hovered around 40 percent since 1981.
  • First-time buyers have contended with a confluence of factors making a purchase more difficult. Wages and benefits have been relatively stagnant, growing only 0.5% per quarter on average since the recession.
  • Also, higher student debt, rising rents, and a weaker job market have made it harder for would-be buyers to save for a down payment and qualify for a mortgage.
  • In addition to issues of affordability, some renters might be putting off home purchases because of the damage they saw housing do to the last generation of buyers.
  • The average down payment, typically a hurdle for new buyers, was 18 percent in September, only slightly lower than the 19 percent put down in September 2013, according to Ellie Mae, a mortgage software provider.
  • Many recent college and professional graduates may have less confidence in finding and keeping jobs, leading them to choose to rent rather than buy immediately.

Read the full story

Talking Points …

  • Mortgage applications dropped again this week, falling 2.6 percent from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending October 31, 2014).
  • The Market Composite Index, a measure of mortgage loan application volume, decreased 2.3 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index decreased 3 percent compared with the previous week.
  • The Refinance Index decreased 6 percent from the previous week.  The seasonally adjusted Purchase Index increased 3 percent from one week earlier.

Buying a home is an exciting and complex adventure. It can also be a very time-consuming and costly one if you’re not familiar with all aspects of the process, and don’t have all the best information and resources at hand.

One of my specialties is representing the best interests of buyers throughout the home buying process. My comprehensive, high-quality services can save you time and money, as well as make the experience more enjoyable and less stressful.

If you’re like most people, buying a home is the biggest investment you’ll ever make. So why not take advantage of my knowledge and experience as a local market expert to make the most informed decisions you can, every step of the way.

I enjoy and take great pride in helping people like you find the homes you want, as well as with completing all aspects of the transaction. So when you decide to buy in the Stockton, Manteca and Lodi areas, please call or email me any time.

  

Dave Thurman Real Estate

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