80% of Home Owners have regrets over Home purchase

Home Purchase

October 14th, 2014 | by Emily Study Published in Data, News, Reverse Mortgage | 1 Comment

Not only do Americans think their homes are too small, but many wish they had done more research before purchasing, as 80% have at least one regret about their home purchase, a new survey by HSH.com shows.

“Compromise is often key in successfully buying a house,” said Keith Gumbinger, vice president of HSH.com, a source of mortgage data, trends, news and analysis. “Over time, though, some compromises can turn into annoyances and even regrets.”

Among respondents’ top-five regrets are size, with 15.5% saying their house is too small; a lack of storage or closets (9.2%); concerns about neighbors (8.3%), not enough bathrooms (8.2%) and poor school systems (7.15%).

“In some cases, changes can be made to smooth out the rough edges via home improvements and such, or a homeowner can learn to live with these shortcomings,” Gumbinger said. “In others, curing these irritants may require a full rethinking of the decision to buy a given home in a given location, and a move to another home may be in order.”

Other reports have recently warned against rushing into a mortgage, saying that homeowners may end up with regrets if they have tunnel vision during the buying process.

While many of the 2,000 respondents in the HSH.com survey said they did their homework on several issues, there were large percentages who regretted not researching sex offender registries (30.1%), neighborhood/neighbors (25.95%), home insurance cost (21.9%) and property taxes (20.25%), among other issues.

Despite these regrets, which almost 95% of the survey respondents said they think about at least occasionally, 66.4% of Americans said they would buy their current home again, and nearly 68% said that they are not planning on moving within the next five years.

August Real Estate Market for Bay Area

Dear John A.,

The analysis of the August market numbers is out. Month-over-Month the Silicon Valley real estate market including Monterey, San Benito, San Mateo, Santa Clara and Santa Cruz counties made a slight dip. Overall, single family inventory and closed sales are down in all counties, except Monterey which showed a small 1% increase in inventory. Median prices in San Mateo and Santa Cruz counties are down 12% and 10%respectively, meanwhile Monterey increased 9%, San Benito went up by 2% and Santa Clara is up just 1% over August 2013.

The media center is updated with new statistical information at least twice per month.
Yours Truly,

Jim Harrison, RCE, CAE
President and CEO
MLSListings Inc

Need for Reverse Mortgages Grows

The demographic projections for the baby boomer generation are staggering. By 2029, when all boomers will be age 65 and over, they will account for more than 20% of the U.S. population, according to a U.S. Census Bureau report in May.

Baby boomers may likely be the first generation to take advantage of reverse mortgages on a large scale, said Albuquerque-based Frost Mortgage Banking Group Founder Greg Frost in the Bloomberg article.

“No mortgage payment for the rest of your life—it’s a beautiful thing,” said Frost, who added that he plans to take out a reverse mortgage on his two-story adobe home in about two years.

But even as this group drives growth at the older ages of the population, a large growing proportion are reaching retirement age still owing money on their mortgages.

The share of Americans age 65 and older with mortgage debt rose to 30% in 2011, up from 22% in 2001, according to a May analysis by the Consumer Financial Protection Bureau cited by Bloomberg. Loan balances also increased during that time, with the median amount owed rising to $79,000 from $43,400 after adjusting for inflation.

While historically it may have been an accepted belief to pay off one’s house before retirement, there has been an attitude shift among many boomers today carrying mortgage debt as they get older.

However, owing more on one’s house also means seniors will draw smaller benefits from reverse mortgages, Bloomberg writes, adding that this type of borrowing adds to debt loads that will diminish how much wealth transfers to the new generation.

“There were old-fashioned beliefs probably 30 years ago [that included] you should pay off your house before you retire,” said Olivia Mitchell, executive director of the Pension Research Council at the University of Pennsylvania’s Wharton School in Philadelphia. “This is no longer the case.”

Read more at Bloomberg.

Written by Jason Oliva

Median Prices Fall in 13 of California’s Largest 26 Counties

Year-to-Date Sales Lowest Since 2008

California single-family home and condominium sales gained 3.9 percent in July 2014 but were down 9.2 percent from July 2013. Year-to-date sales for the first seven months of the year are the lowest since 2008.

The overall decline in sales is due to several factors: the decline in affordability due to rapid price increases, the rise in mortgage interest rates, lack of affordable inventory, and the rapid decline in distressed property sales. Whereas in July 2013 25.6 percent of sales were distressed properties, in July 2014 distressed property sales comprised only 17.0 percent of the total.

“Lackluster sales volumes so far this year should come as no surprise given the fact that in many California counties houses have simply become unfordable,” said Madeline Schnapp, Director of Economic Research for PropertyRadar. “The decline in affordability in concert with the rapid decline in lower priced distressed properties for sale has exacted a toll on demand.”

The July 2014 median price of a California home edged up 1,100 dollars, or 0.3 percent, to 390,100 dollars, the slowest monthly increase since January 2014. On a year-ago basis, median home prices gained 7.8 percent. Driving the month-over-month price increase in July was the 4.4 percent increase in the sales volume of higher priced non-distressed properties, which accounted for 83.0 percent of total sales. The median price of non-distressed homes was up only 0.2 percent over last year, indicating the gain in median prices was due mostly to a shift from less expensive to more expensive homes.

As the summer selling season winds down, median price increases have slowed or peaked in many of California’s largest counties. In July 13 of California’s 26 largest counties experienced monthly price declines compared to only six in April.

In other California housing news:

• Cash sales remain a significant percentage of total sales, accounting for 21.6 percent. Despite the historically high levels of cash sales, these sales have been steadily declining, down 15.9 percent, since reaching an interim peak of 36.5 percent in August 2011.

• Flip sales edged up 2.2 percent for the month but were down 36.0 percent for the year and are down 38.1 percent from the October 2012 peak.

• Negative equity continues to decline but remains elevated in California imparting negative headwinds to the real estate market. In July, more than 1.0 million California homeowners, or 12.1 percent remain underwater.

• Institutional Investor LLC and LP purchases were nearly unchanged for the month but are down 29.0 percent from July 2013. As the supply of distressed properties dwindle and prices rise, institutional investor demand has retreated due to the lower return on investment. Institutional Purchases have posted consistent monthly declines and are down 46.0 percent from their December 2012 peak. Trustee sale purchases by LLC and LPs are down nearly 79 percent from their October 2012 peak.

• Foreclosure starts, Notices of Default (NODs), fell 2.9 percent between June and July and are down 22.2 percent from July 2013. The downward trend extends a longer-term downward trend that began in March 2009. Foreclosure sales gained 7.1 percent for the month but are down 18.7 percent for the year.

“Last year’s rise in home prices and interest rates went too far, pushing homes out of reach for some,” said Schnapp. “To see prices increase further from here will require either increases in income, or easing of credit terms.“

Posted on August 19, 2014 by Madeline Schnapp
Property Radar.

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Market Overview July 2014

Recovery Broadens as More Markets See Price Increases: Home prices were on the rise again last month, but in a stark contrast to last year, price increases were more generalized and less concentrated to just a few metro pockets, according to realtor.com’s May 2014 National Housing Trend Report.
In May, the median list price of homes was $214,900 nationwide, an 8 percent increase year-over-year. All but eight of the 146 markets that realtor.com tracks reported year-over-year price increases in May. “This broad increase in price suggests a more evenly distributed recovery and a healthier national housing market,” reads a realtor.com statement on the findings.
Home inventories in May were down 5.8 percent compared to year ago levels. A limited number of homes for-sale across the country is credited with lifting home prices.
“Home prices are as high as they are because of low inventory spread across the nation,” says Steve Berkowitz, CEO of Move Inc., which operates realtor.com. “But we are not seeing the runaway pricing of last year. Nor is the situation exclusive to the hotbed markets of recent years.”
The following 10 metro areas saw the greatest increases in median list prices year-over-year, according to realtor.com’s May report:
Also in today’s news: Booming Market Limits Affordability in Texas
1. Stockton-Lodi, Calif. ◦ Median list price: $285,000
◦ Year-over-year increase: 42.7%
2. Las Vegas ◦ Median list price: $186,085
◦ Year-over-year increase: 24.1%
3. Houston ◦ Median list price: $245,000
◦ Year-over-year increase: 23.1%
4. Reno, Nev. ◦ Median list price: $289,900
◦ Year-over-year increase: 22.9%
5. Denver, Colo. ◦ Median list price: $349,900
◦ Year-over-year increase: 20.7%
6. Riverside-San Bernardino, Calif. ◦ Median list price: $309,900
◦ Year-over-year increase: 19.7%
7. West-AZ-RSA ◦ Median list price: $328,950
◦ Year-over-year increase: 19.6%
8. Sacramento, Calif. ◦ Median list price: $340,000
◦ Year-over-year increase: 19.3%
9. Boulder-Longmont, Colo. ◦ Median list price: $465,000
◦ Year-over-year increase: 19.3%
10. San Diego ◦ Median list price: $500,250
◦ Year-over-year increase: 17.7%
Posted by Property Minder 7/7/2014

April Home Sales Gain 20 Percent For the Month BUT Year-to-Date Sales Lowest Since 2008

April Home Sales Gain 20 Percent For the Month BUT
Year-to-Date Sales Lowest Since 2008

California single-family home and condominium sales in April 2014 were up 20.0 percent for the month but were down 13.3 percent from April 2013. Despite April gains, year-to-date sales volume was at its lowest level since 2008.

For the month, both distressed and non-distressed property sales posted gains. April 2014 distressed property sales gained 13.1 percent from March, while non-distressed property sales were up 21.8 percent.

“Despite back-to-back double digit sales gains in both March and April, total sales volume since January continues to lag sales in 2013,” said Madeline Schnapp, Director of Economic Research for PropertyRadar. “In fact, what is surprising to me is that year-to-date sales are the lowest since 2008.”

The April 2014 median price of a California home hit its highest level in six years, rising 7,500 dollars, or 2.0 percent, to 376,500 dollars from 369,000 dollars in March. On a year-ago basis, median home prices jumped 14.1 percent. Driving the month-over-month price increase in April was a 21.8 percent increase in the sales volume of higher priced non-distressed properties.

“Despite lower sales volume, the median price of a California home continues to march higher,” said Schnapp. “The rise in median home prices is being driven by the change in mix between the sales of distressed properties versus sales of non-distressed properties. Higher priced non-distressed property sales now dominate monthly sales numbers, so it should come as no surprise that median prices are up.”

In other California housing news:

Underwater homeowners continue to impart negative headwinds to the California real estate recovery. In April, nearly 1.2 million California homeowners, or 13.5 percent remain underwater.
Institutional Investor LLC and LP purchases gained 7.0 percent for the month but are down 36.9 percent from April 2013. Purchases are up 19.3 percent since January 2014. Despite year-to-date gains, LLC and LP purchases are down 42.2 percent from their December 2012 peak.
For a second consecutive month, cash sales posted double digit gains, up 12.3 percent for the month but down 21.4 percent on a year ago basis. Since the beginning of the year, cash sales are up 33.1.
Flip sales gained 7.4 percent for the month but were down 21.5 percent for the year.
Foreclosure sales gained 2.9 percent in April from March but are down 32.4 percent year-over-year. The April gain is statistically insignificant, likely due to the extra weekday in April compared to March.
Foreclosure inventories continue to trend gradually lower, down 1.1 percent for the month and down 17.6 percent for the year.

“While most real estate analysts are forecasting a robust real estate recovery for the rest of 2014, our data suggests anemic sales growth,” said Schnapp. “Elevated negative equity, high prices and low inventory are depressing sales volumes and crowding out potential buyers.” PropertyRadar.

Posted on May 20, 2014 by Madeline Schnapp

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Home Values going up as well as avaliable Inventory.

 

April’s market stats show that median prices rose double digits in Silicon Valley while sales are slowing as compared to April 2013.

While this may not be across the board in all five home counties, it’s the case for the majority. Compared to April of last year, single family residential median price levels remain positive except in Santa Cruz County where they dropped 1%.

Monterey County median price is up 19%, San Mateo increased 13%, San Benito is up 22% and Santa Clara County increased 14%.

In addition inventory was increasing over same period last year making it easer for clients to get offers accepted this year 2014.

Data supplied is for MLSListings Inc five home counties.

 

 

Study Finds Home-Based Services Critical to Solving Aging Crisis

Study Finds Home-Based Services Critical to Solving Aging Crisis

March 30th, 2014 | by Jason Oliva Published in News, Reverse Mortgage

A growing population of Baby Boomers poses significant challenges to both the nation’s housing market and healthcare industry, however, a recent study suggests home- and community-based services can help quell any crises related to aging in place.

Population shifts among older adults is creating a “growing urgency” within the healthcare and housing fields, says a report from the National Housing Conference (NHC) titled Aging in Every Place: Supportive Service Programs for High and Low Density Communities.

By 2050, the number of adults age 65 and older is expected to double to over 88 million, according to data from the Center for Housing Policy cited in the report.

Additionally, the Centers for Disease Control and Prevention notes that over 65% of older adults have multiple chronic illnesses, which limits their ability to complete basic daily tasks like eating or bathing, yet 90% of adults aged 45 and older say they want to stay in their homes “for as long as possible” as they aged, according to survey data from AARP.

Institutional settings like nursing homes, and even assisted living facilities, may not be fit for the task of addressing the housing and healthcare-related challenges that this swelling older demographic poses—unlike home- and community-based programs that can help older adults age in place, NHC suggests.

“Many older adults move into nursing homes if they begin to have difficulty completing basic tasks on their own, like bathing or eating,” stated Research Associate and co-author Janet Viveiros. “Home- and community-based supportive services can help frail older adults care for themselves in their own homes and achieve better health outcomes than if they moved to a nursing home or assisted living facility.”

Effective home- and community-based service programs, NHC says, are ones that offer a wide array of services that specifically deal with community features such as proximity to medical facilities, access to public transportation and utilization of nearby community centers.

Supportive services are also believed to facilitate housing stability and overall well-being for aging homeowners and renters alike.

“The number of older adults will bring increasing demands for on-site supportive services at affordable housing developments as well as integrated in the community, and this report shows that models exist to accommodate these needs in every type of community,” said Senior Research Associate Maya Brennan, who also co-authored the report.

Written by Jason Oliva

Sales Retreat in February while Median Prices Edge Higher

PropertyRadar report

California single-family home and condominium sales fell 1.4 percent in February 2014 from January and declined 16.1 percent from February 2013. Last month marked the lowest February sales since 2008.

“Rapid price increases and rising interest rates in concert with sluggish income and employment growth have slowed demand…” said Madeline Schnapp, Director of Economic Research for PropertyRadar. “Tougher borrowing standards, elevated prices, increasing borrowing costs and historically low inventory continue to exert a drag on market activity.”

Despite the decline in sales volume, the February 2014 median price of a California home rose $5,000, or 1.4 percent, to $350,000 from $345,000 in January. On a year-ago basis, median home prices have jumped 21.1 percent.

“The uptick in median home prices in February means little as seasonal factors continue to impact both sales and prices,” said Schnapp. “Given the lackluster sales volume, however, median prices are unlikely to see the rapid gains that characterized the first half of 2013.”

The number of California homeowners with more than 10 percent equity in their homes increased 2.3 percent, or nearly 120,000, in February.

“The decline in negative equity is certainly good news,” said Schnapp. “But, it is important to keep in mind that 1.2 million California homeowners, or 13.9 percent, remain underwater and will continue to create significant headwinds for the California housing market recovery.”

Institutional Investor LLC and LP purchases gained 1.6 percent for the month but are down 35.4 percent from February 2013. Despite February’s modest gain, LLC and LP purchases were 50.1 percent below their December 2012 peak.

“For more than a year now, institutional investors have been gradually reducing their purchases of California real estate,” said Schnapp. “Rising prices have reduced the return on investment, making homes less attractive as an investment option.”

“In sum, the California housing market continues to improve,” said Schnapp, “just more slowly than most analysts expected, given that we are in the fifth year of an economic recovery.”