Housing Industry Riding Coat Tails of Surging Job Market

Where the job market goes, the housing industry follows. And with the economy continuing to hum, both sectors are surging further upward in the new year, according to economists from two companies who would know: realtor.com® and job search site indeed.com.

“The news is good. Employers are looking at 2016 as being quite strong,” said Tara Sinclair, the chief economist for indeed.com, during a joint press briefing in Washington, DC, with realtor.com® chief economist Jonathan Smoke.

Both laid out predictions for another year of steady home sales and job growth, particularly in the country’s largest urban centers. New York City, Atlanta, Chicago, and Los Angeles, as well as the high-tech hubs of the San Francisco Bay Area, Denver, Seattle, and Austin, all had strong employment gains—and, not at all coincidentally, some of the country’s busiest real estate markets.

It’s a simple equation: Hot job markets attract job seekers, and job seekers need a place to live … read more —>  http://www.realtor.com/news/trends

U.S. Home Sales Approach 8-1/2 Year High

U.S. home resales rose in June to their highest level in nearly 8-1/2 years, a sign of pent-up demand that should buoy the housing market recovery and likely keep the Federal Reserve on track to raise interest rates later this year.

The National Association of Realtors said on Wednesday existing home sales increased 3.2 percent to an annual rate of 5.49 million units, the highest level since February 2007.

“The economy really has the wind at its back now,” said Chris Rupkey, chief financial economist at MUFG Union Bank in New York.

Home resales this year are on track to record their biggest gain in eight years, the NAR said.

Economists had forecast sales rising to an annual rate of 5.40 million units last month. Sales were up 9.6 percent from a year ago.

June’s solid home sales report came on the heels of last week’s strong housing starts and building permits data. A tightening labor market is starting to push up wages, helping to boost demand for housing, especially among young adults.

But a tight supply of properties for sale remains a constraint. The string of strong housing reports indicate the economy continues to be on firmer footing despite a drop in retail sales and a slowdown in job growth last month.

read more —>  http://www.reuters.com

Returning Equity Boosts Real Estate Markets

Real estate equity is making a comeback, according to a blog post by RealtyTrac. While the market has not made a full recovery yet, there’s evidence that the housing market has become more attractive in most metro areas.

According to the Federal Reserve, homeowner equity peaked in 2005 when the value of U.S. homes — market value less debt — equaled a rosy $13.1 trillion. Unfortunately things went downhill from there as a result of the financial crisis, by 2011 homeowner equity had fallen to $6.4 trillion and millions of American homeowners saw half their real estate equity disappear.

This was not just an academic matter. Without equity, borrowers could not refinance as rates fell and they couldn’t sell without bringing cash to closing. The alternatives were short sales, foreclosures, and staying in place. In the end, more than 7 million homes were lost to foreclosure.

Now the good news: Between 2011 and 2014 homeowner equity went from $6.4 trillion to $11.3 trillion. That’s an increase of $4.9 trillion. With any luck it’s not unreasonable to believe that equity as measured on a cash basis might return to 2005 levels in the next year or so.

More equity means more homeowner options. Qualified owners can now borrow against their homes, borrow more than a few years ago or do nothing and avoid additional debt.

Read more —>  http://www.realtytrac.com/news/home-prices-and-sales/returning-equity-boosts-real-estate-markets/

Freddie Mac – Mar 2015 Economic & Housing Market Outlook

(Marketwired – Mar 11, 2015) – Freddie Mac released today its U.S. Economic and Housing Market Outlook for March, highlighting some of the positive tailwinds at the start of the spring homebuying season.  A video preview, along with the complete March 2015 U.S. Economic and Housing Market Outlook and forecast table, is available here.

Outlook Highlights

• Expect 2015 to be the best year for home sales and new home construction since 2007 when total home sales were about 5.8 million for the year.
• Improved job prospects have started to drive those aged 25-34 back to the labor force, with 76.8 percent employed as of last month, up from 75.9 percent last year.
• Expect rising rents at or above inflation in 2015 to push more would-be homeowners into the market. Rents increased an average of 3.6 percent in 2014 and nearly 11 percent over the last three years.
• Due to some recent upward pressure on Treasury bond yields, the 2015 forecast for the average 30-year fixed-rate mortgage was increased slightly to 4.0 percent for the year.

courtesy of:  http://freddiemac.mwnewsroom.com/press-releases/

Housing Is About 75% Back To Normal: Trulia Report

The U.S. housing market continues to improve, but it’s not quite there yet.

In fact, it’s about three-quarters of the way back to, “normal.” That is the conclusion of a new report from Trulia, a real estate sales and analytics company. The dispatch weighs existing home sales and prices, new construction, mortgage delinquencies and the millennial employment rate.

Existing homes, both sales and prices, appear to be leading the overall recovery. Trulia gauges that they are both 82 percent back to normal levels, compared with a year ago, when they were just 73 and 66 percent recovered, respectively.

read more —>  http://www.cnbc.com/id/102341697

U.S. Single-Family Starts Hit 6-1/2 Year High in Dec

U.S. housing starts rose more than expected in December as groundbreaking for single-family homes hit its highest level in more than 6-1/2 years, in a hopeful sign for the sluggish housing market recovery.

Starts increased 4.4 percent to a seasonally adjusted annual pace of 1.09 million units, the Commerce Department said on Wednesday … starts

For all of 2014, groundbreaking increased 8.8 percent to 1.01 million units, the highest since 2007 …

Single-family homes starts, the largest part of the market, jumped 7.2 percent to a 728,000-unit pace, the highest level since March 2008. Groundbreaking on single-family projects in the West hit a seven-year high, while starts in the Midwest were the highest since December 2011.

read more —>  http://www.cnbc.com/id/102352190

Freddie Mac 2015 Projections

A pickup in household formations and overall housing activity depends greatly on the pace of economic growth. The good news for 2015 is that the U.S. economy appears well poised to sustain about a 3.0 percent growth rate in 2015—only the second year in the past decade with growth at that pace or better. There are several reasons for the expected better macroeconomic performance. Governmental fiscal drag has turned into fiscal stimulus, lower energy costs support consumer spending and business investment, further easing of credit conditions for business and real estate lending support commerce and development, and more upbeat consumer and business confidence, all of which portend faster economic growth in 2015. And with that, the economy will produce more and better paying jobs, providing the financial wherewithal to support household formations and housing activity ….

So, what will be some of the market features for 2015?

Interest rates

… We expect to see interest rates climb throughout 2015, averaging about 2.9 percent for 10 year Treasuries and 4.6 percent for 30-year mortgages …

Prices & Affordability

In addition to rising interest rates, we also expect house price gains to continue, albeit at a more moderate pace. Our current projection is for annual house price gains to slow from 9.3 percent in 2013, to 4.5 percent in 2014 and 3.0 percent in 2015 …

Home Sales/Starts

Look for housing activity to accelerate in 2015. We’re forecasting total housing starts to increase by 20 percent from 2014 to 2015. We’re also expecting to see total home sales increase by about 5 percent over that time period …

Single-family Originations

Increasing home sales are good news for mortgage Markets … We expect originations will fall an additional 8 percent from 2014 to 2015, before rising home values and increasing purchase originations finally offset the decline in refinance volume and drive originations higher.

Rentals in Demand

Rental markets are expected to remain tight in most urban markets across the U.S. … As household formations pickup in 2015, rental apartments will generally be their first home. Rental vacancy rates remain at or near their lowest level since 2000, and rent growth exceeds inflation in most markets. That has prompted new development and property value gains, which has led to property sales and new mezzanine debt …

read more –>  http://www.freddiemac.com/finance/pdf/November_2014_public_outlook.pdf

San Diego: No 1. Pleasant Place to Live in USA

Zillow uses climate to rank 25 best in America

Stop the presses! San Diego is America’s most “pleasant” place!

The locals know that – that’s why we’re here and (for the most part) not moving.

But maybe the rest of the world needs a reminder as snow storms elsewhere snarl holiday traffic.

Zillow, the real estate website, has done local boosters a favor and ranked the best places, based on NOAA’s raw weather data collected by engineer and designer Kelly Norton, a cofounder of Homebase.io.

San Diego ranked No. 1 with 261 “pleasant” days, defined as having an average temperature between 55 to 75 degrees, minimum temperature above 45 degrees and no significant rain or snow.

“Jeez, it’s a shock,” said Joe Terzi, head of the local tourist bureau. “It took Ph.D’s to figure out that San Diego has the best weather in the country.”

He plans to send out a proper press release to share the “news.”

But he said it’s not enough to just have nature’s blessings. San Diego has many things to do besides soak up the rays.

“The big thing we continue to talk about and believe strongly in is that San Diego is a happy, inviting, friendly place to be and that’s why we have 34 million people come here every year,” Terzi said.

Iris Engstrand, a history professor at the University of San Diego, said this place has beckoned outsiders since 16th century European explorers first arrived. But fun sometimes interferes with serious business.

“Our students at the university are out surfing instead of studying for finals,” she said. “We have to work at working indoors.”

Of course, weather doesn’t guarantee a good life.

Zillow said San Diego has the fourth most expensive housing market, based on the percentage of income devoted to a mortgage for a first-time homebuyer.

“There are a lot of reasons that make places great to live, not all inherently connected to weather,” said Zillow senior economist Skylar Olsen. “For example, the best economies that are having booms or were very stable during the housing bubble and bust were in Texas. Those are economies driven by the energy market, oil and gas.”

Kelly Cunningham, economist at National University System’s Institute for Policy Research, said he moved to San Diego from snowbound Colorado but acknowledged there’s a price to pay for living in “paradise.”

“You don’t get paid quite as well,” he said. “It’s sort of like a discount for being able to live here that wages are not as high as they are in some other places where they probably have to pay people more to live there.”

And yet, he noted, San Diego has grown its share of hometown billionaires, who moved here and grew successful businesses in spite of the siren call of sun, sand and surf.

“It worked for Irwin Jacobs,” he said of the Massachusetts-born Qualcomm cofounder.

courtesy of:  http://www.utsandiego.com/

HUD Secretary: Housing Finance Reform Remains Top Priority

HUD Secretary Julian Castro said Monday that overhauling the mortgage finance system remains a top priority for the final two years of the Obama administration.

Castro suggested that the next Congress consider legislation that would wind down and eventually eliminate mortgage giants Fannie Mae and Freddie Mac as part of the effort to boost the housing market’s recovery.

“This could be, I believe, a good victory either in the lame-duck session or, more realistically, perhaps in the next term of Congress where there is bipartisan support for housing finance reform, for doing away with Fannie and Freddie as we’ve known them, creating a backstop,” he told Bloomberg Television.

The Senate has generated two bipartisan bills, including one by Senate Banking Committee Chairman Tim Johnson (D-S.D.) and ranking member Mike Crapo (R-Idaho) that gained approval by the panel in May.

But, since then, there has been little movement to get a bill through Congress.

“Introducing more private capital into the market and taking the taxpayers off the hook if we do ever experience what we just went through  as part of the housing crisis in 2007, 2008, 2009, that is a priority this administration and for HUD,” Castro said.

read more —>  http://thehill.com/policy/finance/224429-hud-secretary-says-housing-finance-reform-is-top-item-for-obama-administration

Single-Family Housing Poised to Take Off in 2015

A growing economy, rising household formations, low mortgage rates, and pent-up demand will help single-family housing production rev up in 2015, while a growth in renters will keep the multifamily market at cruising altitude or higher, according to economists who participated in the latest National Association of Home Builders (NAHB) 2014 Fall Construction Forecast.

NAHB is forecasting 991,000 total housing starts in 2014, up 6.6 percent from 930,000 units last year.

Single-family production is expected to rise 2.5 percent this year to 637,000 units, increase an additional 26 percent next year to 802,000, and reach 1.1 million in 2016.

Setting the 2000-2003 period as a benchmark for normal housing activity when single-family production averaged 1.3 million units annually, single-family starts are expected to steadily rise from 48 percent of what is considered a typical market in the third quarter of 2014 to 90 percent of normal by the fourth quarter of 2016.   More info —> 

courtesy of:  http://www.nahb.org/

S.D. a Top-Tier City for Apartment Investing

In a separate report, the USC Lusk Center for Real Estate released its Casden Real Estate Economics multifamily forecast, saying San Diego’s vacancy rate had dipped to “an almost absurd 2.3 percent” in the second quarter, based on projects of 15-20 units.

The USC Lusk Center will hold an executive forum on real estate prospects Oct. 9 at the W San Diego Hotel, 421 W. B St. in downtown San Diego. Sullivan will moderate. Information is available online atlusk.usc.edu.

Rents had increased in all 15 submarkets analyzed and a net 1,490 units had been rented in the quarter ending June 30.

“Overall, these dynamics point to an increase in the demand for multifamily rental housing,” Casden said, “and a tightening rental market.”

The highest rent increase over the last year occurred in the Mira Mesa-Rancho Bernardo area with a 3.5 percent rise to $1,637. The area between Hillcrest and Normal Heights rose the least, up 1.8 percent to $1,081.

Vacancies ranged from 12.7 percent in the area between Clairemont and Mission Valley to 0.9 percent in the Mission Beach-Pacific Beach area.

The Casden forecast for San Diego shows a 2.9 percent rental increase over the next year with El Cajon, Santee, Lakeside, Ocean Beach and Point Loma going up the most.   (read more —> )

courtesy of:  http://lusk.usc.edu/news/

Mom-and-Dad Banks Step Up Aid to First-Time Home Buyers

The Bank of Mom and Dad is playing a growing role as lender of last resort for a housing recovery struggling to provide more traction for the U.S. economy.

Last year, 27 percent of those purchasing a home for the first time received a cash gift from relatives or friends to come up with a down payment, according to data from the National Association of Realtors. That’s up from 24 percent in 2012 and matches the highest share since the group began keeping records in 2009.

Those numbers will probably keep growing this year as younger Americans remain constrained by student debt, tough entry into the job market and stricter mortgage-lending rules that require more cash up front. At the same time, rising stock and property values give their baby boomer parents the ability to assist those wanting to lock in near record-low borrowing costs …. read more —> 

courtesy of:  http://www.bloomberg.com/news/

How To Get a Mortgage Right Now, Even With Bad Credit

HUD, FHA programs abound for those hit by the recession

In his interview with HousingWire, Mel Watt, the director of Federal Housing Finance Agency urges the opening of the mortgage credit box to less-than-optimal borrowers.

“We are getting lenders to reduce some of the credit overlays,” he said in the exclusive interview.

Furthermore, FICO scores will ignore debts that have been paid off or settled, and a lesser weight will be assigned to medical bill collections, which account for about half of all unpaid collections on consumers’ credit reports.

Nonetheless, the average FICOs have been going down steadily since 2006 and it’s not hard to see why, what with the housing crisis, the financial meltdown and the general recession and record unemployment and underemployment.

So what can those with a FICO that is under 620 do to get a mortgage?

1. Prepare to pay more

People with poor credit can still get a mortgage, but they will pay far more than even those with credit scores on the margin.

Guidelines from the U.S. Department of Housing and Urban Development and the GSEs, Fannie Mae and Freddie Mac, advise waiting at least two years after a short sale, so long as credit after the short sale is good.

Sellers should be advised to do their homework on the mortgage brokers they are working with – shady and dodgy operators are like bottom feeders, looking to prey on those who are more desperate and who aren’t financially savvy, which is how they see people with poor credit.

2. Refinance ASAP

A bad credit mortgage may seem like the borrower is signing away their life on a bad deal, but so long as the borrower maintains their credit after the mortgage is signed, they can be eligible to refinance for a much better deal within two years, and their credit will have improved.

In short, a bad credit mortgage is a short-term solution that gets them in a home. It’s important to bear in mind that bad credit needn’t follow the borrower longer than necessary.

3. Ask about options

The 30-year mortgage is a popular choice, but maybe not the right one if the borrower’s credit is weak. Adjustable rate mortgages are also a possibility, depending on the circumstance, during which time the borrower can work on repairing and maintaining their credit while paying at a lower interest rate than are offered on fixed-rate mortgages.

Many people who had their credit torn up in the recession were not the typical bill skippers. They were hard-working, responsible people whose world was upended through layoffs, downsizing, the loss of contract work, and a dozen other legitimate reasons.

4. Get a co-signer

Many have some other assets, or have family members who are responsible. These people may be willing to co-sign. Federal Housing Administration rules allow for a co-signer on loans.

Above all, check with HUD, FHA, the FHFA, Fannie Mae and Freddie Mac for information on pathways to homeownership for those who have damaged credit.

It is possible to get a mortgage with bad credit today. Possible, but still challenging. 

 

courtesy of:  http://www.housingwire.com/

Obama Admin Expands Affordable Housing Plan (HARP)

The Obama administration said on Thursday it would tap Treasury funds to bolster the construction of affordable rental housing and extend the life of a program aimed at helping homeowners avoid foreclosure.

The announcement by Treasury Secretary Jacob Lew was timed to coincide with the fifth anniversary of the Making Home Affordable program, an Obama administration initiative launched at the height of the economic crisis in 2009 to revitalize the housing sector and curb runaway foreclosures.

He said the program would be extended through December 2016.

“We need to continue to be there for homeowners who are facing foreclosure, those who are struggling with increasing interest rates on their modified mortgages, and those whose homes are caught underwater,” Lew said at an event to mark the program’s anniversary.

According to Treasury Department, more than 1.3 million homeowners have modified their mortgages under the program, reducing monthly payments by about $540 a month.

read more at:  http://www.cnbc.com/id/101795079

CA’s Improving Housing Markets Includes San Diego

NOTICE BELOW, FROM THE LOWEST POINT IN OUR MOST RECENT RECESSION, SAN DIEGO STANDS AT AN 2.3% INCREASE IN HOUSING PERMITS THAT BUILDERS HAVE PULLED WITH THE CITY/COUNTY FOR RESIDENTIAL CONSTRUCTION. 

WHY IS THIS IMPORTANT?  BECAUSE BUILDERS ARE WATCHING THE MARKET JUST LIKE THE REST OF US AND THEY ALSO SEE THE HOUSING MARKET PICKING UP – SO THE SCRAMBLE IS ON TO GET MORE PROPERTIES ON THE MARKET AND TAKE ADVANTAGE OF THE INCREASED BUYER DEMAND FOR HOUSING PURCHASES!  THIS IS A VERY GOOD SIGN ……… see the graphic below for more info.

April Marks Fair Housing Month

Each April, HUD uses Fair Housing Month to mark the passage of the 1968 Fair Housing Act, the landmark law passed shortly after the assassination of Dr. Martin Luther King, Jr., which prohibits housing discrimination based on race, color, national origin, religion, sex, disability, and family status. This year’s Fair Housing Month theme is “Fair Housing is Your Right: Use It!” Throughout the month, HUD will cast a spotlight on the persistent problem that exists in this country, as individuals and families continue to face both blatant and subtle forms of housing discrimination.

Each year, HUD and communities and organizations across the country recognize Fair Housing Month by hosting an array of activities that enhance the public’s awareness of their fair housing rights and promote the nation’s commitment to end housing discrimination.

In addition to the legal protections provided under the Fair Housing Act, approximately 20 states, the District of Columbia, and more than 150 cities, towns and counties across the nation also prohibit discrimination against lesbian, gay, bisexual, and transgender (LGBT) individuals and families. In 2012, HUD published new regulations to ensure that the Department’s core housing programs are open to all eligible persons, regardless of their sexual orientation or gender identity. In addition, 12 states and the District of Columbia, as well as several counties and municipalities protect persons against housing discrimination based on their source of income.

courtesy of:  http://portal.hud.gov/

3 Major “Need to Know’s” About The 2014 Housing Market

The following list was put together by a veteran housing economist, asked by HousingWire for his opinion on the near-term future of the markets we cover daily.

(David Berson is the chief economist at Nationwide. He leads a team of economic analysts delivering economic forecasts and analyses that are used to inform and strengthen the organization’s business strategies and operating plans. Prior to joining Nationwide, David served as the chief economist at The PMI Group and for Fannie Mae.)

Here’s David Berson’s take on the 3 things you need to know about housing in 2014.

No. 1: 2014 should prove to be the strongest year for housing activity since before the Great Recession.

Housing activity (home sales and housing starts) has increased modestly over the past several years, but is still at levels well-below sustainable trends. For both economic and demographic reasons, 2014 should be the year when activity reaches the highest level since 2006/2007.

Propelling home sales are job growth and housing affordability. The latter reflects the interplay of household income, mortgage rates and house prices. In 2013, while housing activity picked up, it was a year when job growth remained low and virtually unchanged from the previous year.  Moreover, affordability, while still high, fell sharply in the second half.

Most economists expect an improved job market in 2014, with employment growth accelerating and the unemployment rate continuing to decline. That jobless rate drop will reflect more of a pickup in employment than further declines in the labor force participation rate. This will be the key factor improving housing demand this year, even if mortgage rates rise and affordability declines. While the housing market tends to do especially well when the job market improves and mortgage rates decline simultaneously, that combination of events occurs only rarely.

More often, either job gains accelerate while mortgage rates rise, or job gains decline while mortgage rates drop. Typically, housing activity expands in the former case and contracts in the latter. People buy homes when their job and income prospects improve – even if it’s more expensive to do so – rather than buy when it is inexpensive to do so but they’re worried about keeping their jobs.

No. 2: Demographics should start to favor housing activity.

The demographic factor most affecting the housing market is household formations. Newly formed households may buy or rent, but they reside somewhere as an independent unit. On average, roughly 1.2 million households form every year in the United States and they each demand a housing unit. Household formations are affected by the job market, as people “double-up” when worried about their job and income-earning prospects. The Great Recession and the modest job recovery in the years following induced many people who might have lived independently to move in together. That’s most noticeable in the rise in the share of young adults living with their parents, primarily because of the weak job recovery.

Reflecting the slow pace of household formations, there is an increasing pent-up demand for households. After all, most of these young adults would prefer the freedom of being on their own (and their parents really don’t want them as full-time residents, either). We estimate the economy is short by more than three million households.

If the economy expands at a faster pace this year, bringing a more rapid rate of job creation, that should translate into more households, raising housing demand. We won’t see all three million missing households return to the housing market at once. (That wouldn’t be a good thing for the housing market anyway, since that would be on top of the 1.2 million households that normally would develop this year; such a surge would swamp the existing housing supply). Beginning in 2014, the pace of household formations should accelerate to an above-trend pace for several years, pushing up housing demand.

No. 3: Mortgage availability shouldn’t worsen and may improve.

Mortgage credit isn’t nearly as easy to get as it was during the housing boom, and it shouldn’t be.  Still, compared with recent years, mortgage availability has increased slightly. And reasons exist for mortgage availability to be no worse in 2014 than in the past few years. Actually, it may be somewhat easier to get a mortgage loan.

With the dislocations in mortgage lending since the housing bubble popped, Fannie Mae and Freddie Mac have increased their share of the mortgage market significantly. When combined with lending from the Federal Housing Administration and the Veteran’s Administration, the government or government-sponsored share of mortgage lending has climbed to more than 90 percent in recent years. That is an untenable situation in the long run, but is unlikely to change much this year.

The good news is that new Qualified Mortgage lending rules from the Consumer Financial Protection Bureau exempt home mortgages that qualify for purchase or securitization from Fannie and Freddie. As a result, mortgage lenders won’t have to tighten their mortgage-underwriting requirements in response to QM as long as they sell their loans to the GSEs.

Additionally, the rise in mortgage rates already has reduced mortgage origination volumes as refinance activity declines. If mortgage rates rise further this year, as expected, then refinance activity will fall still more. In response, mortgage lenders probably will ease lending standards to the extent possible under the QM rules to boost lending activity by increasing purchase originations. As a result, the increase in new households expected to be created this year, spurred by a stronger job market, should find that qualifying for a mortgage loan will be somewhat easier in 2014 than in prior years.

courtesy of:  http://www.housingwire.com/

San Diego Home Prices Rise in June

San Diego’s median housing price in June rose nearly 8 percent to $416,500, or $500 below the level designated for a jumbo mortgage, according to the most recent Dataquick housing market report.

In June, San Diego County saw 4,048 houses sold, up 7.8 percent from May. It was the only county among six in Southern California that showed increased sales over the month.

The county’s median price was 24 percent above that of June 2012 when it was $335,500, Dataquick said.

In Southern California, a total of 21,608 new and resale houses changed hands in June, down 6.2 percent from the total in May.

The Southern California region’s median price was $385,000, up 4.6 percent from May, and up 28.3 percent from June 2012.

The median for the region has risen on a year-over-year basis for 15 consecutive months, with the annual gains ranging from about 11 percent to 28 percent.

Cash buyers dipped a bit last month but still made up 30 percent of all home sales in the region, down from 32 percent in the prior year’s June.

The number of home sales in the middle and upper price ranges continued to rocket above year-ago levels, while activity in the lower price ranges declined dramatically, Dataquick said.

“Weak demand isn’t the culprit,” the report said. “The main problems are a fussy mortgage market and an inadequate supply of homes for sale.”

courtesy of:  http://sdbj.com/

7 Most Competitive Housing Markets for Buyers

In some markets, home buyers are facing steep competition for the home they want to buy. For example, in May, nearly 70 percent of the offers written by Redfin real estate agents faced multiple offers. However, that is down slightly from 73.3 percent of offers with multiple bids in April, according to the real estate brokerage’s May 2013 Bidding War Report, which compiled stats from 2,000 offers written by its agents. As the number of home sales increases in many markets, competition is easing somewhat in many markets, according to the report. 

California continues to hold some of the most competitive housing markets, with buyers most often facing multiple bid situations. 

According to the Redfin report, the following markets were the most competitive in May:

1. San Francisco
Percent of offers that faced competition: 87.9%
Percent of offers that were over the asking price: 96.8%

2. Los Angeles 
Percent of offers that faced competition: 86.1%
Percent of offers that were over the asking price: 25%

3. Orange County 
Percent of offers that faced competition: 83.9%
Percent of offers that were over the asking price: 58.1%

4. San Diego
Percent of offers that faced competition: 72.6%
Percent of offers that were over the asking price: 60.9%

5. Boston 
Percent of offers that faced competition: 68.1%
Percent of offers that were over the asking price: 56.5%

6. Seattle
Percent of offers that faced competition: 67.4%
Percent of offers that were over the asking price: 60.6%

7. Washington, D.C.
Percent of offers that faced competition: 66.8%
Percent of offers that were over the asking price: 36.1%

Source: Redfin

courtesy of:  http://realtormag.realtor.org/daily-news/

16 ‘To-Dos’ for Your Next Move from USAA

Moving is a lot more than getting your stuff from point A to point B.  It’s a major life event.

Without proper planning, a move can squeeze your savings — and challenge your sanity. To help keep costs and headaches to a minimum, get organized early. Follow this checklist of moving tips to help make your relocation go as smoothly as possible:

1. Save Before You Go.  Even when the military or another employer covers some costs, moving expenses can set you back thousands of dollars. Shipping charges, personal travel costs, temporary housing expenses and start-up fees at your new residence can add up. So, as soon as you know you’re going to move, figure out your out-of-pocket costs. Then, set aside some cash each month for the move.

2. Do It Yourself?  If you’re in the military, you usually can choose whether to let a military moving contractor pack and transport your belongings, or manage the move on your own. Formerly called a DITY move, this option is now referred to as a “Personally Procured Move.” The government will pay an incentive to service members who move themselves.

3. Look for Work.  While you may have a career waiting for you, don’t assume that your spouse will easily find a new job. Start reviewing the job boards and calling on personal contacts before you go.

4. Buying or Selling a Home?  Be sure to research home values in your current community, as well as where you’re moving, to get the best possible deal at both ends. Working with a trusted reliable real estate agent can help. Ask for recommendations from friends and family, or take advantage of USAA’s MoversAdvantage^® program. This service matches members with real estate agents who understand the military community, and can help you make smart decisions through every step of the selling and buying process.

5. Set a Spending Ceiling.  If you live off your post or base, you should spend only about 85% of your Basic Allowance for Housing on rent or a mortgage payment, says J.J. Montanaro, a CERTIFIED FINANCIAL PLANNER^TM practitioner at USAA. Save the rest for utilities and insurance.

6. Browse Your New Community.  Check out websites for your new city government, chamber of commerce, and convention and visitors bureau. Military personnel should ask about the Relocation Assistance Program, which offers detailed information about military communities worldwide. Military OneSource’s Plan My Move page is a good place to start.

7. Educate Yourself on Schools.  Check school schedules and enrollment requirements. Pick up school records or have them sent to the new schools.

8. Protect Your Belongings.  Obtain appraisals for high-value items. Then, at least 24 hours before you release your belongings to the mover, contact your homeowners insurance or renters insurance company to ensure your possessions will be covered while in transit or storage (you can call USAA at 1-800-531-8722). Make an inventory and take photos of your valuables to have a record if you need to file a claim.

9. Is Your Car Road-Ready?  Take care of auto maintenance and repairs before you make a long trip. And don’t forget to notify your auto insurance company of the move.

10. Move Your Money?  Determine whether your current banking institution will be able to serve your needs after you relocate. Also, get familiar with any smartphone/tablet applications your bank might offer, which can keep you in the know during your move.

11. Turn It On, Turn It Off.  Notify your utilities and local services of disconnect dates. Order utility services for your new address — including Internet and TV services, home phone (if you want one), electricity and natural gas — through the Utility Marketplace.

12. Update Your Address.  Fill out an online change-of-address form through the U.S. Postal Service to ensure important mail will be forwarded to your new home. Also, be sure to send your new address to friends and family, your physician, schools, magazine publishers and providers of financial services.

13. Clean Up.  Properly dispose of flammables such as aerosol cans, cleaning fluids, paint, ammunition, weed killer and acids. Drain oil and gas from your lawn mower or other power equipment. Clean the refrigerator and the freezer; allow them to dry one or two days with the doors blocked open to protect your small children or pets.

14. Hold a Garage Sale.  Put the extra cash toward moving expenses. Consider donating anything that isn’t sold to charity — and keep the receipts for tax deductions.

15. Save Brilliant Deductions.  Some moving expenses may be tax deductible, such as those incurred through travel, a spouse’s job-hunting costs and mortgage points. Look for details in IRS Publication 521 (Moving Expenses) and Publication 3 (Armed Forces Tax Guide). Create a move file to save deductible receipts and other important paperwork.

16. Pack Securely.  Pack a suitcase with items you’ll want to keep close or secure for the move, such as money, jewelry, medicine, books or electronics. If you are traveling by air, do not check this bag.

courtesy of:  https://www.usaa.com/