| Greetings!
Welcome to my weekly real estate update. Here, I will provide you with valuable, informative news about the local East Bay real estate marke and you will also find the link to this weekend'ss complete Sunday Open House Guide and Weekly Brokers' Tour List. I hope that you will find these tools helpful!
If you see a property that interests you, please do not hesitate to contact me for the full details or for a personal tour.
Sincerely,
Gene Della Maggiora, REALTOR
DRE# 01351875
Past President, Berkeley Association of Realtors
Past Director, California Association of Realtors
Past "Realtor of the Year"
The GRUBB Company 510.652.2133 x435
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Buyer Urgency Improves, More See Now Good Time to Buy
N.A.R. Daily Real Estate News - April 11, 2012
More home buyers may jump off the sidelines this spring as they get more urgent about purchasing a home, fearing that home price and mortgage rate increases are on the horizon.
Housing surveys in recent weeks have shown that more Americans are seeing now a great time to purchase a home. In the most recent survey, 73 percent of Americans say now is a good time to buy, according to the latest Fannie Mae Housing Survey conducted in March. That's up from 70 percent in February who said it was a great time to buy.
"Conditions are coming together to encourage people to want to buy homes," says Doug Duncan, Fannie Mae's chief economist. "With an increasing share of consumers expecting higher mortgage rates and home prices over the next 12 months, some may feel that renting is becoming more costly and that home ownership is a more compelling housing choice."
Indeed, more buyer urgency is evident in the market. Thirty-three percent of those surveyed by Fannie say they expect home prices soon to increase, which is the highest percentage in a year. What's more, nearly 40 percent say they expect mortgage rates to rise in the next year too, which is also up from previous surveys.
Coupled with that, 48 percent of Americans say they expect rents to continue to climb, and 44 percent say they expect their financial situation to improve in the next year.
Source: "More Americans Think It's Time to Buy a Home," MSN Real Estate (April 9, 2012) |
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Bidding Wars Are Back, Agents Say
N.A.R. Daily Real Estate News - April 2, 2012
Some real estate markets are reporting that home buyers are having to pay more than asking price to get the home they desire, as the supply of for-sale homes has shrunk, Bloomberg News reports.
Bidding wars were a common part of real estate in 2006. But when the market turned from a "seller's market" to "buyer's market," more sellers started seeing lowball bids than high bids. Now times are slowly changing, and bidding wars are being reported in several markets, such as in Seattle, Boston, Silicon Valley, Miami, and Washington, D.C., Bloomberg reports.
The inventory of homes for-sale is near a six-year low. Mixed with the low inventory, the job market has been improving and buyers are being lured to the record level of affordability in the housing market. Existing-home sales and pending home sales are up more than 8 percent compared to a year earlier, the National Association of REALTORS® recently reported. Trulia Inc. also reported that falling home values and low mortgage rates have made home buying a better deal than renting in 98 of the 100 largest metro areas.
"The housing crash is finally giving way to recovery in an increasing number of markets across the country," Mark Zandi, chief economist for Moody's Analytics, told Blommberg. "The decline in unsold listings and vacant homes and the increase in rents presage better times ahead for single-family housing."
Source: "Bidding Wars Erupt as Supply of Available Homes Shrink," Bloomberg News (March 31, 2012)
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15-Year Mortgage Rates Dive to Lowest on Record
N.A.R. Daily Real Estate News
April 13, 2012
The 15-year fixed-rate mortgage, often the top choice of home refinancers, reached a new all-time record low of 3.11 percent this week, Freddie Mac reports in this week's mortgage market survey. The 30-year fixed-rate mortgage also sank lower this week, hovering near it's all-time low.
"Fixed mortgage rates eased for the third consecutive week following long-term Treasury bond yields lower after a weaker than expected employment report for March," Freddie Mac's Chief Economist Frank Nothaft says.
Here's how rates fared for the week ending April 12:
- 30-year fixed-rate mortgages: averaged 3.88 percent, with an average 0.7 point, down slightly from last week's 3.98 percent average. A year ago at this time, 30-year rates averaged 4.91 percent.
- 15-year fixed-rate mortgages: averaged a new record low of 3.11 percent, with an average 0.7 point, dropping from last week's 3.21 percent average. The 15-year mortgage rate's previous record low was 3.13 percent, which was set on March 8 of this year. Last year at this time, 15-year rates averaged 4.13 percent.
- 5-year adjustable-rate mortgages: averaged 2.85 percent this week, with an average 0.7 point, also falling from last week, in which it averaged 2.86 percent. Last year at this time, 5-year ARMs averaged 3.78 percent.
- 1-year ARMs: averaged 2.80 percent this week, with an average 0.6 point, rising from last week's 2.78 percent average. A year ago, 1-year ARMs averaged 3.25 percent.
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Fed: Economy Sees Steady Growth
N.A.R. Daily Real Estate News
April 13, 2012
The economy continues to show signs of strengthening, which could bode well for housing, according to the latest Federal Reserve survey, known as the "Beige Book."
According to the Fed, the economy improved at a "modest to moderate" pace from mid-February to late March, and fears are lessening over the impact from the European debt crisis. However, rising fuel costs remain a concern.
But for the real estate sector, progress is being seen in residential and commercial activity, according to the Fed's report, which tracks all 12 districts across the U.S. Multifamily construction grew, mostly tied to senior housing and apartments.
"Residential real estate activity also improved in most districts, with Cleveland and San Francisco remaining outliers with lackluster real estate activity," HousingWire reports on the Fed's report.
"In general, the demand for commercial and industrial loans remained steady, while several districts reported an increase in commercial real estate lending activity," according to the Beige Book.
Source: "Fed Survey Shows Growth, Improving Hiring," USA Today (April 11, 2012) and "Loan Demand and Real Estate Activity Levels Improve: Beige Book," HousingWire (April 11, 2012) |
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About
The GRUBB Company
The GRUBB Company is a full-service boutique real estate brokerage firm that has helped clients sell and buy homes in the most prestigious East Bay neighborhoods for over forty years. Founded in 1967 by Donald J. Grubb Sr., and now owned and managed by Principals D.J. Grubb and John Karnay, we boast a team of over 60 agents supported by fifteen full-time staff employees, the most advanced technology, and leading edge marketing techniques.
3070 Claremont Avenue
Berkeley, California 94705
The GRUBB Company |
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