US home prices rose at solid pace in January

U.S. home prices rose in January after three months of declines as a tight supply of properties likely supported prices despite slower sales.

Real estate data provider CoreLogic said Tuesday that prices rose 0.9 percent in January after dipping 0.1 percent in December. Over the past 12 months, home prices have risen 12 percent, the biggest year-over-year gain in more than eight years.

Such outsize price gains might not continue much longer, however. Paul Diggle, an economist at Capital Economics, notes that January’s price gains reflect conditions several months ago, when buyers first made offers. The supply of available homes was smaller than it is now, and it helped lift prices. The sales were completed in January.

Since then, more homes have come on the market while sales have slowed. That trend has modestly boosted the supply of homes and “points to a slowdown in price gains later this year,” Diggle said.

Diggle, like most other economists, foresees year-over-year price gains of below 10 percent in the coming months.

CoreLogic’s price figures aren’t adjusted for seasonal patterns, such as winter weather, which can depress sales. Snowstorms and low temperatures contributed to a sharp drop in sales of existing homes in January. The National Association of Realtors said sales plunged to their lowest level in 18 months.

The harsh winter weather has discouraged many Americans from house-hunting. And the average rate on a 30-year mortgage is about a percentage point higher than it was last spring, which means buying costs have risen.

Those factors have weighed on the housing market. Economists think the housing recovery could pick up once the spring buying season begins, though likely at a slower pace than last year.

A measure of signed contracts was unchanged in February, a sign that sales won’t immediately recover from January’s sharp fall. Signed contracts usually lead to a finished sale in one to two months.

And builders broke ground on 16 percent fewer homes in January than in December, the government said last month. That was the second straight decline.

Other price gauges are falling. The Standard & Poor’s/Case-Shiller 20-city home price index dipped in December, the latest period for which data are available, and its year-over-year gain slowed.

Nationwide, home prices are still 17 percent lower than at the peak of the housing bubble in April 2006, according to CoreLogic. Prices have set highs in three states: Louisiana, Nebraska and Texas. They are within 10 percent of their peaks in 19 additional states.

The five states with the biggest price gains in January, compared with a year earlier, were Nevada, where prices rose 22.2 percent; California, 20.3 percent; Oregon, 14.3 percent; Michigan, 13.7 percent; and Georgia, 13.4 percent. Mississippi was the only state to report a price decline.

If you’re looking for residential or commercial real estate assistance please contact me direct at (310)402-8181 or jkryukova@gmail.com.

source: SF Gate

Credit standards going easy on jumbo mortgages

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Demand for non-government loans keeps growing!

Despite overall originations hitting the lowest level since 2010, the past year witnessed a significant increase in the volume of home equity loans and lines of credit, in addition to originating the best-performing mortgages on record, the first report from Black Knight Financial Services, previously known as Lender Processing Services, found. For jumbo mortgages, however, it’s a completely different story.

Two key points about the November numbers stand out according to Herb Blecher, senior vice president of Black Knight Financial Services’ data & analytics division.

“First is that heightened credit standards have resulted in this year being the best-performing vintage on record. Even adjusting for some of these changes, such as credit scores and loan-to-values, we are seeing total delinquencies for 2013 loans at extremely low levels across every product category,” Blecher said.

The second point Blecher emphasized was that overall volumes are down. “We are seeing an increased proportion of the market being supported by non-agency (vs. government) lending – with the share nearly doubling as compared to 2010,” Blecher added.

However, increasing home prices have helped offset some of the drop in originations with demand for home equity loans increasing.

“While first mortgage originations are almost half the levels as one year ago, total home equity lending, including loans and lines, has increased by 70%, and originations of second lien home equity loans have more than doubled,” Blecher said.

In addition, the market also observed a 75% year-over-year increase in the share of non-agency jumbo prime lending.

“Notably, nearly all of these jumbo loans have been originated with no mortgage insurance, which may indicate an increased appetite for risk, as well as an opportunity to expand credit criteria, for originations within the private market,” Blecher explained.

The November data revealed that the population of “refi” mortgages has decreased by about 4 million loans since the end of 2012.

In comparison, just 5.9 million loans meet broad-based refinance criteria. But loosening the credit standards to just a 700 FICO increases the refinance population by almost 17%, or an additional 1 million loans.

If you’re looking to lease, purchase, or sell residential or commercial property, please contact me direct at (310)402-8181 begin_of_the_skype_highlighting (310)402-8181 FREE  end_of_the_skype_highlighting or jkryukova@gmail.com

Source: Housingwire

JUST LISTED: Elegant Penthouse in Prime Beverly Hills Location $1,045,000

441 N. Oakhurst Dr #702

441 N. Oakhurst Drive  Penthouse 702  Beverly Hills, CA 90210

3bedrooms, 2.5bath, 2126 sq. ft

Asking Price: $1,045,000

441 N. Oakhurst Dr #702 Beverly Hills CA 90210 002 005 006 008 010 011 012 013 014 014A 015 016 017 018 019 020 021 022 023 024 025 026 027 028 029 030 031 032

This elegant three-bedroom, two-and-a-half bathroom Beverly Hills penthouse offers stunning above-it-all views and an unbeatable location. Lounge on the large outdoor patio and soak up the mountain to city views, or walk to all the area has to offer. A Regency-style set of double doors opens into an entry way to the 2,196 sq.ft. unit. The step-down living area is over-sized and has a travertine fireplace. A balcony with sweeping views is at the end of the living area. A dining area is bracketed by corner walls of window that allow for ample light in the day and a carpet of city lights at night.

The large galley-style kitchen (with built-in appliances) is “open-ended” and provides access to the dining and living areas. Under-the-counter laundry machines takes the functionality of the kitchen to new heights. Richly-toned granite counter tops, and plenty of storage augment the kitchen’s offerings.

Bonus alert! It is a rarity in condominium floor plans that a unit have a family room/den area. But this unit has a perfect one. Its den area (with a wet bar) provides space for watching screeners or having an evening cocktail. Rounding out the public rooms is a convenient powder room off of the main entry.

The large master suite has a walk-in closet and double sinks. The two other bedrooms share access to a bathroom.

Pool, residents-only meeting rooms, two parking spaces (tandem) and controlled access make this unit a great value.

Please visit www.441oakhurstdr.com for more details.   OPEN HOUSE SUNDAY 1-4PM