Elena Zimina's Real Estate

CA PENDING HOME SALES TEMPER IN AUGUST BUT STILL RECORD 10TH STRAIGHT ANNUAL INCREASE Source: C.A.R. California pending home sales declined in August but remained strong, marking 10 straight months of year-over-year gains, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). In a separate report, California REALTORS® responding to C.A.R.’s August Market Pulse Survey saw a drop in sales with multiple offers compared with July, as market competition cooled down toward the end of the home-buying season. Making sense of the story The Pending Home Sales Index (PHSI) rose 12.8 percent on an annual basis to 112.8 in August, based on signed contracts. The August 2015 index was up from the 100 index recorded a year ago and marked the 10th straight month of year-to-year gains and the seventh straight month of double-digit advances. On a monthly basis, statewide pending home sales in August fell 8.7 percent on a month-to-month basis. The PHSI was down from the 123.6 index in

TALKING POINTS … Total mortgage application volume surged 13.9 percent on a seasonally adjusted basis for the week ended Sept. 18 versus the earlier week, according to the Mortgage Bankers Association (MBA). Refinance applications, which are most rate-sensitive, increased 18 percent from the previous week. Purchase applications rose 9 percent to their highest level since June 2015. They are now 27 percent higher than the same week one year ago. Mike Fratantoni, MBA's chief economist, commented, “We saw significant rate volatility last week surrounding the [Federal Reserve’s] meeting, and rate declines toward the end of the week likely drove applications from both prospective home buyers and borrowers looking to refinance.”

Best Annual Improvement Since 2005 MCLEAN, VA--(Marketwired - Sep 23, 2015) - Freddie Mac ( OTCQB :  FMCC ) today released its updated  Multi-Indicator Market Index® (MiMi®)  showing the U.S. housing market continuing to slowly stabilize with one additional state, Rhode Island, and four additional metro areas entering their outer range of stable housing activity: Philadelphia and Harrisburg, Pennsylvania; Phoenix, Arizona; and Albany, New York.  The national MiMi value stands at 81, indicating a housing market that is on its outer range of stable housing activity, while showing an improvement of +0.93% from June to July and a three-month improvement of +2.99%. On a year-over-year basis, the national MiMi value has improved +6.17%. Since its all-time low in October 2010, the national MiMi has rebounded 37%, but remains significantly off from its high of 121.7.  News Facts: Twenty-nine of the 50 states plus the District of Columbia have MiMi values in a stable range,

STUDY REVEALS WHAT “GREEN” MEANS TO HOME BUYERS NAHB’s publishing arm, BuilderBooks, recently released What Green Means to Home Buyers: Perceptions and Preferences, a study of consumer preferences focusing exclusively on green/high-performance features in the home and the community. The study examines consumers’ attitudes of various green features, concepts or terminologies, the resonance of those terms as potential marketing tools, and the likelihood that the home purchase decision may be influenced by any of these features or terms. According to the study, the common words home buyers use to describe green homes include: 32%: Efficient, Energy Efficient, Water Efficient, High Efficiency 15%: Eco-friendly, Environmentally-friendly, Environmentally-responsible, Environmentally-safe, Environmentally-conscious 8%: Solar, Solar Power, Solar Energy, Solar Panels 4%: Lower Costs, Lower Utility Bills, Saves Money

WHY IS HOME BUILDING LAGGING JOB CREATION? REALTORS®, BUILDERS DISAGREE Source: Wall St. Journal Home construction lagged behind job creation last year in nearly two-thirds of the 146 U.S. metro areas, according to analysis by the National Association of REALTORS® (N.A.R.). But the home-building industry’s largest trade association, the National Association of Home Builders (NAHB), and N.A.R. are at odds over whether supply or demand is to blame for lagging construction. Making sense of the story N.A.R. Chief Economist Lawrence Yun says it’s a supply shortfall. He argues that builders “are just not robustly getting back into the game” by picking up their pace of construction. David Crowe, chief economist of the NAHB, counters that builders would churn out more houses if there was sufficient demand to warrant it. Crowe stated, “Supply is an issue; that is true. But the dominant issue still is demand. That’s the reason builders aren’t building more homes.” However, N.A.R

Buying a home is one of the biggest decisions you’ll ever make, so you might want to talk to your REALTOR® for advice and also consider whether or not you’re getting stuck on one of these common real estate myths before signing on the dotted line. For instance, remember that you’re buying a home to suit both your future needs and your current ones, so if you want to travel in the future, a home with a lot of outdoor upkeep may not be wise. In addition, it may be best to purchase a home based on your family’s budget and needs, not your guesses about what the future may or may not hold regarding the market.

The average loan size declined by nearly $2,000 to $350,600 while the average new home price declined by nearly $4,000 to $458,000, according to data released yesterday by the Federal Housing Finance Agency (FHFA). Even after the declines, these are the second highest numbers on record.  Since the home price declined by more than the loan amount in July, the average loan-to-price (LTP) ratio increased, from 78.3 to 78.8 percent.  This is just about as high as the LTP ratio on conventional new home loans has been recently.