Elena Zimina's Real Estate

HOME SALES EXPECTED TO EXPAND MODESTLY IN 2017  Existing-home sales are forecast to muster only a small gain in 2017 because of increasing mortgage rates and shrinking consumer confidence that now is a good time to buy a home, according to new consumer survey findings and a 2017 housing forecast update from NAR. In NAR's fourth quarter Housing Opportunities and Market Experience (HOME) survey, respondents were asked about their confidence in the U.S. economy and their housing expectations in 2017. With the calendar turning to a new year in a couple weeks, the survey found that a majority of households believes now is a good time to buy a home. However, confidence has retreated by a considerable amount amongst renters. Fifty-seven percent of renters said now is a good time to buy, which is down from 60 percent in September and 68 percent a year ago. Seventy-eight percent of homeowners (unchanged from September; 82 percent in December 2015) think now is a good time to make a home

Calif. median home price: November 2016: California: $501,710 Calif. highest median home price by region/county: San Francisco, $1,360,500 Calif. lowest median home price by region/county: Siskiyou, $183,000 Calif. Pending Home Sales Index : The Pending Home Sales Index rose 1.5 percent from 117.3 in October 2015 to 119.1 in October 2016 – the seventh consecutive year-to-year increase. Calif. Traditional Housing Affordability Index : Third Quarter 2016: 31 percent Mortgage rates : Week ending 12/15/2016 (Source: Freddie Mac) 30 year fixed: 4.16% fees/points: 0.5% 15-year fixed: 3.37% fees/points: 0.5%

FREDDIE MAC ANNOUNCES NEW FORECLOSURE PREVENTION PROGRAM  Freddie Mac recently announced the Freddie Mac Flex Modification foreclosure prevention program, which is designed to help America's families by offering significant reductions in their monthly mortgage payments. It replaces Freddie Mac's version of the Home Affordable Modification Program (HAMP), which is set to expire at the end of this year. The new program was developed in alignment with Fannie Mae at the direction of the Federal Housing Finance Agency (FHFA). The Flex Modification is expected to provide a 20 percent payment reduction for eligible borrowers. A high percentage of those who are at least 60 days delinquent would be eligible; the modification could also be an option for those who are current or less than 60 days delinquent in certain situations. Servicers must implement the new program by Oct.1, 2017. In the interim, while HAMP expires on Dec.30, 2016, Freddie Mac's Standard and Streamlined Modifica

FIRST-TIME HOMEBUYERS FACE WORSENING STARTER-HOME SHORTAGE Trulia released its findings from the Trulia Inventory and Price Watch, which showed that the number of homes for the average first-time homebuyer saw its steepest year-over-year drop in three years, falling 12.1 percent since 2015. Moreover, these buyers will need to pay 1.9 percent more of their income on average to buy a starter home in their local market. Nationally, housing inventory fell for the sixth consecutive quarter, dropping 9.1 percent from a year ago. Across different housing segments, home buyers saw the biggest decreases in a starter and trade-up home inventory. The number of starter homes and trade-up homes on the market dropped 12.1 percent and 12.9 percent from this time last year, respectively. Meanwhile, premium home inventory fell a more moderate 5.6 percent. Declines in the affordability of starter homes continues to plague first-time home buyers. Currently, the average starter-home buyer will need to s

STUDY FINDS RENTERS NOT MATERIALLY CONSTRAINED BY RENTAL PRICES Despite steep increases in rental prices, renters are less financially constrained today than they were just after the last recession, according to a new TransUnion study. The study confirmed that, on average, renters at the mid-point of 2016 were lower risk and more credit active than renters were in 2010. TransUnion analyzed the credit behavior of 775,000 renters who moved in Q2 2009 and 631,000 renters who moved in Q2 2015, over the 12-month period post-move. TransUnion found that 38.6 percent of the 2015 renters had a prime or better credit score in 2015, compared to 26.2 percent of the 2009 cohort of renters. To determine how renters are impacted by a move, TransUnion used its CreditVision aggregate excess payment (AEP) algorithm, which incorporates monthly payments from mortgages, credit cards, and other debt obligations. A consumer with a positive AEP could take on new payments and has money available after their m