Capital Economics expects the housing crisis to end this year, according to a report released Tuesday. One of the reasons: loosening credit. The analytics firm notes the average credit score required to attain a mortgage loan is 700. While this is higher than scores required prior to the crisis, it is constant with requirements one year ago. Additionally, a Fed Senior Loan Officer Survey found credit requirements in the fourth quarter were consistent with the past three quarters. However, other market indicators point not just to a stabilization of mortgage lending standards, but also a loosening of credit availability.

Banks are now lending amounts up to 3.5 times borrower earnings. This is up from a low during the crisis of 3.2 times borrower earnings. Banks are also loosening loan-to-value ratios (LTV), which Capital Economics denotes “the clearest sign yet of an improvement in mortgage credit conditions.” In contrast to a low of 74 percent reached in mid-2010, banks are now lending at 82 percent LTV. While credit conditions may have loosened slightly, some potential homebuyers are still struggling with credit requirements. In fact, Capital Economics points out that in November 8 percent of contract cancellations were the result of a potential buyer not qualifying for a loan. Additionally, Capital Economics says “any improvement in credit conditions won’t be significant enough to generation actual house price gains,” and potential ramifications from the euro-zone pose a threat to future credit availability.   This news is a potential boost for home sales in the Santa Clarita Valley.

Santa Clarita Real Estate News – Housing Crisis to End in 2012 as Banks Loosen Credit Standards is a post from: SantaClaritaHomefinder.com

Showing properties 1 - 5 of 5. See more 91355 zip code real estate.
(all data current as of 2/22/2012)

1. $1,175,000 : 27066 Island Road, Valencia
   
   4 beds, 5 full baths

   Home size: 3,816 sq ft

   Lot size: 8,306 sq ft

   Year built: 2000

   Parking spots: 5

   Days on market: 36

   Walk Score®: 57
2. $1,295,000 : 27005 Woodlands Drive, Valencia
   
   5 beds, 5 full, 1 part baths

   Home size: 4,565 sq ft

   Lot size: 7,654 sq ft

   Year built: 2002

   Parking spots: 6

   Days on market: 71

   Walk Score®: 43
3. $1,199,000 : 25539 Via Paladar, Valencia
   
   4 beds, 4 full baths

   Home size: 4,092 sq ft

   Lot size: 23,490 sq ft

   Year built: 1980

   Parking spots: 2

   Days on market: 118

   Walk Score®: 48
4. $1,290,000 : 25438 ALTOS Drive, Valencia
   
   4 beds, 3 full, 1 part baths

   Home size: 5,417 sq ft

   Lot size: 32,250 sq ft

   Year built: 1991

   Parking spots: 2

   Days on market: 435

   Walk Score®: 52
5. $1,000,000 : 25471 VIA ACORDE, Valencia
   
   4 beds, 3 full, 1 part baths

   Home size: 4,500 sq ft

   Lot size: 1.64 ac

   Year built: 1981

   Parking spots: 3

   Days on market: 601

   Walk Score®: 46

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Million Dollar Homes Listed In Valencia! is a post from: SantaClaritaHomefinder.com

Now is an excellent time to buy a home in Santa Clarita due to consumer home price expectations continuing an upward trend.  Fannie Mae’s latest National Housing Survey shows that the majority of Americans continue to expect no change in mortgage rates over the next 12 months. However, their expectations for home prices have improved for the fourth month in a row, with respondents expecting prices to go up by 1 percent, on average, during the year.

Of the consumers surveyed, 44 percent expect their personal financial situation to improve, up from 40 percent a month ago, and 30 percent of Americans believe the economy is on the right track, up from 22 percent last month and up for the third straight month since November 2011.

Highlights of the monthly survey include:

Twenty-eight percent of respondents expect home prices to increase over the next 12 months (up 2 percentage points since last month), while 16 percent say they expect home prices to decline (down 2 percentage points since last month). Fifty-one percent say prices will stay the same.

Only 8 percent of Americans say that mortgage rates will go down in the next 12 months, down 2 percentage points from December.

The percentage of respondents who say it is a good time to buy stayed at 71 percent in January, while the percentage who say it is a good time to sell dropped by 1 percentage point to 10 percent.

Now Is An Excellent Time To Buy A Home In Santa Clarita! is a post from: SantaClaritaHomefinder.com

Housing Market Picture Brightens with Job Gains:

The pace of job creation surged in January, with the US economy generating 243,000 new positions while the unemployment rate dropped to 8.3 percent, according to government data released Friday.

Both numbers were far better than the consensus estimates, which expected a growth of 150,000 jobs and a steady unemployment rate of 8.5 percent.

Job gains have been concentrated primarily in the service sector, particularly in retail and the food and beverage industries. Warehousing, manufacturing, mining and health care also have participated.

True to form, services were responsible for 162,000 of the January swell, with manufacturing payrolls growing 50,000. Government cuts subtracted 14,000 from the total. Retail has added 390,000 jobs since December 2009, while durable goods manufacturing is up 418,000 over the past two years, according to government figures.

Housing demand is driven primarily by two factors (neither is interest rate): Consumer Sentiment and Employment Stability.  So, the surprisingly strong Nonfarm Payroll data is certainly good news for the housing industry.

Housing Market Picture Brightens in Santa Clarita Real Estate is a post from: SantaClaritaHomefinder.com

Below are general tips prepared by the CALIFORNIA ASSOCIATION OF REALTORS®.  However, these just skim the surface of information available through your REALTOR®.  As a member of C.A.R. your REALTOR® has access to this information in its entirety, and much more!

SHORT SALE SELLERS

1. Hire a REALTOR®! Not all real estate agents are REALTORS®.  REALTORS® are members of the NATIONAL ASSOCIATION OF REALTORS® and voluntarily pledge to abide by the strict code of professional ethics.

2.Take a Proactive Approach The short sale process can take a lot of time and effort on your part, so taking a proactive approach to your short sale may help you complete the transaction as quickly and painlessly as you can.

3. Knowledge is Your Friend The short sale process may be new to many sellers and is much different than a normal transaction.  It is important to know what you are getting yourself into.

4. Do Your Homework As early as you possible, determine your lender’s short sale requirements and whether you satisfy those requirements.

5. Get a Good Price For Your Home Getting a good sales price not only improves your chances of getting your short sale approved, but may also have other advantages.

6. Submit a Complete Short Sale Package Provide your lender with a complete short sale package containing all the required information and documentation in an organized manner.

7.  Be Patient But Persistent

8.  Avoid Scam Artists Be wary of scams.  Your REALTOR® will help you avoid getting duped.

SHORT SALE BUYERS

1. Hire A REALTOR®! Not all real estate agents are REALTORS®.  REALTORS® are members of the NATIONAL ASSOCIATION OF REALTORS® and voluntarily pledge to abide by the strict code of professional ethics.

2. Knowledge is Your Friend The short sale process may be new to many buyers and is much different than a normal transaction.  It is important to know what you are getting yourself into.

3. Do Your Homework Gather and review as much information about a transaction as you can before writing an offer to purchase.  Your REALTOR® can help you identify which properties for sale in the Multiple Listings Service are short sales.

4.  Write A Clean Offer This describes an offer to purchase that the seller is unlikely to take issue with.

5.  Understanding the Timing A short sale may take a long time and it is important to understand the timing of the process.

6.  Prep as Best as You Can      

7. Manage Your Expectations About the Property      

8. Don’t Lose Sight of the Big Picture

Short Sale Tips for Santa Clarita Area Home Buyers and Home Sellers is a post from: SantaClaritaHomefinder.com

It is very important for consumers to do their homework.  The short sale process can be uncharted waters for many home buyers and sellers, therefore it is necessary to understand exactly what you are getting yourself into.  By doing your homework, you will also be better prepared to submit a complete package.  Every short sale is unique.  Explore the resources below to learn more about what YOU need.

Which bank are you working with?

Bank of America

Chase

Wells Fargo

Citi

Are you looking for some extra help?

The U.S. Department of Housing and Urban Development (HUD) sponsors housing counseling agencies throughout the country and is available in many different languages. Find a housing counselor on the HUD.gov Web site >

Do you know and understand your credit score?

Your FICO® score is a determining factor in credit offers and interest rates, and is based on your credit history.  It is important to know and understand your FICO® score when involved in a short sale. This number is used by lenders to evaluate your credit risk.  To learn more about this and calculate your score, click here.

Santa Clarita Valley Homes – Short Sale Process is a post from: SantaClaritaHomefinder.com

Current housing market conditions in California today makes for a strong and compelling case for homeownership. With prices still well below the historic highs of just a few years ago and attractive mortgage rates, qualified buyers have a unique opportunity to own their own home. As seen below, a rigorous analysis of renting versus buying hears this conclusion out. The monthly housing costs (principle, interest, taxes, and insurance or PITI) associated with buying a median-priced home of $301,430 is $1,590 (based on the fourth quarter 2010 median priced home in California).  This assumes the buyer is making a 20 percent downpayment and financing with a 30-year fixed rate mortgage at 4.62 percent. In comparison, the median rent on a three-bedroom two-bath apartment with renter’s insurance in California is $1,810. That means buying a home would save the homeowner $220 per month when compared to renting and the homeowner would save over $2,600 a year.
In addition, existing tax laws allow homeowners to itemize and deduct the mortgage interest and property taxes from their taxable income. For example, compare the tax implications for two households both earning $63,430 a year, the minimum income required to purchase the statewide median-priced home of $301,430.* The household that purchases the home with a 20 percent downpayment and finances the mortgage at the current rate of 4.62 percent will receive a tax deduction of over $14,000 in the first year of ownership. The renter household will most likely utilize the IRS Standard deduction of $11,400, $2,600 less than their homeowner counterparts. The homebuyer reduces their total tax liability by $400 compared to the renter in the first year of ownership. Accounting for the out-of-pocket savings as well as the tax savings, the homebuyer saves over $3,000 in their first year of ownership.
The mortgage rate is a significant factor in determining just how much a homebuyer can afford. Today’s low mortgage rate environment tips the scale—for some—in favor of buying versus renting. For a home priced at $400,000, with a 20 percent downpayment and a 4 percent mortgage rate, the monthly PITI will be $1,990 for the homebuyer. The monthly PITI jumps to $2,180 at 5 percent and to $2,380 at 6 percent. For each one percentage point increase in the mortgage rate, the payment goes up by almost $200 under these assumptions. Even for a lower priced home at $200,000, the difference in the monthly payment is significant as each percentage point rise in the mortgage rate tacks on $100 to the monthly PITI.

Of course, there are many other socioeconomic benefits that homeownership brings to communities. And there are other costs associated with homeownership above and beyond the downpayment and monthly PITI. So as long as one has considered all of the costs and benefits of owning a home and is in the financial position to do so, there are some pretty compelling reasons to strive for the “American Dream.”

Is it better to buy a home or rent in Santa Clarita? is a post from: SantaClaritaHomefinder.com

Foreclosure Filings Hit 4 Year Low:  The number of U.S. homes that received a foreclosure filing fell to a four-year low in 2011 as a slowdown in processing hit the market, RealtyTrac said in a report on Thursday.

Foreclosure filings, which include default notices, scheduled auctions and bank repossessions, slid by 34 percent in 2011, the lowest level since 2007, just as the housing market was starting to crumble. RealtyTrac said there were filings on 1,887,777 homes last year.

Bank seizures of homes fell to 804,423 from 1,050,500 in 2010, also marking the lowest level in four years.

“A big part that is inflating the size of the decrease is a continuing extended foreclosure process,” said Daren Blomquist, director of marketing communications at RealtyTrac.

Nevada ranked as the state with highest foreclosure rate for the fifth year in a row, with one in 16 Nevada homes receiving at least one foreclosure filing in 2011. Even so, Nevada saw a 31 percent decrease in foreclosure activity for the year.

The length of time for foreclosure processing continued to increase in the final quarter of the year. Homes took on average 348 days to move through the process, up from 336 days in the third quarter and 305 days in the fourth quarter of 2010.

Foreclosures took the longest in New York state, where homes foreclosed in the fourth quarter took an average 1,019 days to complete the process. RealtyTrac also released foreclosure activity for December, which fell to a 49-month low of 205,024 homes, down nearly 9 percent from November. But bank repossessions rose 10 percent to 61,774.

What Happened to Rates Last Week:

Mortgage backed securities (MBS) gained +14 basis points from last Friday to the prior Friday which moved mortgage rates slightly lower.
We had a mixed bag of economic data with very strong readings in Consumer Sentiment but we had weaker than expected Retail Sales data.
Demand for our 10 year Treasury auction was very strong but pulled back on the 30 year Treasury bond auction.
With the long weekend, traders moved their money into bonds on Friday which helped to push mortgage rates lower.

What to Watch Out For This Week:
The following are the major economic reports that will hit the market this week.  They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages.  I will be watching these reports closely for you and let you know if there are any big surprises:

It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets.  Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon.  Santa Clarita Valley foreclosure rates may be falling.  I am hear to assist with any lending questions you may have.  Please feel free to contact me!

Foreclosure Filings Hit 4 Year Low! is a post from: SantaClaritaHomefinder.com

California home sales rise in December, posting 11-month sales high!  Santa Clarita Valley home prices may benefit!  California home sales rose for the third consecutive month in December, marking the highest level since January 2011, according to data from C.A.R.  Sales also were up from a year ago, marking the sixth consecutive annual increase.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 520,940 in December, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.  December’s sales were up 3.3 percent from November’s revised pace of 504,420 and were up 0.1 percent from the revised 520,330 sales pace recorded in December 2010.

The statewide median price of an existing, single-family detached home posted its second consecutive monthly gain, increasing 1.8 percent to $285,920 in December, up from a revised $280,960 in November.  However, the median price was down 6.2 percent from the revised $304,770 median price recorded in December 2010.

Santa Clarita Home Prices – California home sales rise in December, posting 11-month sales high is a post from: SantaClaritaHomefinder.com

Welcome! is a post from: SantaClaritaHomefinder.com