Friday, May 29, 2015

Renting vs Buying

It's a national concern."
Rents increased faster than home values in 20 of the 35 largest markets.
But even as rents climb, there is still strong demand for rentals, creating a housing crunch in some cities.
"Places hard hit like Seattle, San Francisco and Denver are having a hard time keeping up and building enough units to satisfy demand," said Gudell.
Renters in San Francisco face a nearly 15% rise in payments while rents in Denver went up 11.6% in April from last year, according to Zillow's Rent Index. Only two cities on the list experienced a drop in rent from last year: Chicago and Minneapolis.
Low mortgage rates make home buying an attractive option, but large rent checks can make saving for a down payment tough. On a national level, homeowners can pay an average of 15.3% of their income on mortgage payments each month, the report found, while renters will dish out roughly 30% on rent. Gudell said tenants in high-income areas can expect to pay closer to 50% of their income on rents.
"There are bunch of things keeping renters on the sidelines and that means usually the folks that would be normally making the switch to become homeowners are still taking up the rental units."
Here's how much rent prices rose in the largest markets in the country in April from last year, according to Zillow's Rent Index:
San Francisco, 14.9%
San Jose, 12.9%
Denver, 11.6%
Kansas City, Mo., 9.5%
Portland, Ore., 8.6%
Charlotte, N.C., 6.6%
Austin, Texas, 6.2%
Cincinnati, Ohio, 6.2%
Seattle, 6.2%
Houston, 6.1%
Detroit, 6.0%
Sacramento, 5.9%
Los Angeles, 5.6%
Dallas-Fort Worth, 5.5%
Phoenix, 5.4%
Boston, 5.2%
San Diego, 5.1%
Atlanta, 4.9%
San Antonio, Texas, 4.6%
St. Louis, 4.5%
Pittsburgh, 4.4%
Riverside, Calif. 4.2%
Tampa, Fla., 4.1%
New York, 3.4%
Miami-Fort Lauderdale, 3.2%
Philadelphia, 2.8%
Baltimore, 2.7%
Columbus, Ohio, 2.6%
Cleveland, Ohio, 2.4%
Las Vegas, 2.1%
Washington, D.C., 2.1%
Orlando, 2.0%
Indianapolis, 1.5%
Minneapolis-St. Paul, -0.3%
Chicago, -1.0%

Tuesday, May 19, 2015

Why is the Appraisal Process Taking So Long

You go to get a loan.  You get your documents together, sign the application, make sure the rate is good.  Things are cruising along.  And then…days go by.  You hear nothing.  And when you call your LO, he says “we’re waiting for your appraisal.”  What?  Why?  Shouldn’t it be easier than this?
There are two things you ought to know.  First, this is a terribly difficult market.  It’s very tough for appraisers to find comparable sales in markets that are slow, and as you might have heard, this is one slow market.  I had one appraisal come back the other day for which there were no recent sales at all in that zip code.  None.  How does an appraiser establish the value of a home for which there is no verifiable market?  Appraisers are having huge difficulty finding the comparable sales necessary to complete their appraisals, and this is making the process take a lot longer than normal.
The second thing is that the regulatory environment is causing enormous delays.  It seems like every day we have new forms to fill out, new agencies to deal with, and new hoops to jump through.  Recently all FHA loans began requiring a set of new forms for appraisers to fill out.  Those forms take another couple of hours per appraisal.  Almost simultaneously, Fannie Mae and Freddie Mac instituted the Home Valuation Code of Conduct (HVCC), which added another layer of bureaucracy to the appraisal process, and in many cases both increased appraisal cost and slowed down processing time (for a deeper look at HVCC and how to fix it, see this article).
Both of the above are combining to make the job of establishing the value of a home much more difficult.  It’s made the ordering of appraisals harder, made the construction of an appraisal take longer, and establishing a value (which is the whole point of the appraisal) more time-consuming than it once was.  That’s why it’s taking so long.
This probably doesn’t help you feel any better, but you’re certainly not alone.  It’s a tough market, and everything from appraisals to underwriting has slowed down considerably, for almost everyone.  Tell your LO to keep you updated, even if he doesn’t have anything to report, and just hang on.  You can make it.
Story by Chris Jones

Tuesday, May 12, 2015

Greater Sacramento Home Sales

Greater Sacramento home sales continued at a blistering pace in April, pushing the median price to a
$321,000 average for the quarter. That gure proved to be an 8 percent jump over the same quarter just
one year ago, and the region’s highest median price since August of 2005. This information was provided
by Trendgraphix Inc., a Sacramento based reporting company, and conveyed by Lyon Real Estate.
The month of April saw 2,448 closed sales posted, leaving less than two months of inventory, indicating
a still strong seller’s market. “First-time and move-up buyers in the 4-county region are leaving no price
point behind,” says Pat Shea, president of Lyon Real Estate. “Below $350,000 however, the market
remains in a frenzy.”
Below the $350,000 price point, a total of 1,776 new open or pending sales were posted during the
month of April. Inventory in the price range ended the month at 1,705, leaving less than one month of
supply available for buyers. Average days on the market until sale dropped to 39 and sellers received an
average of 98 percent of their original list price.  (These homes are also receiving multiple offers so it is very competitive for buyers in this price range.  Buyers need to understand that they just need to keep looking and putting offers in and one will get accepted.  I find that when working with a buyer who is having trouble getting offers accepted that we always end up with a house that the client likes better anyway.  Big thing is don't get discouraged as interest rates are inching up and home prices are also, so just keep at it.  This is a good time for buyers and sellers)
The move-up range, between $350,000 and $750,000, experienced a 31 percent increase in closed
sales and a 34 percent increase in new open escrows compared to the same quarter last year.
Inventory saw a 12 percent jump over the previous year, however, the market was left with less than two
months of inventory based upon the new open rate of sales.
In the $750,000 and above price range, 330 new open escrows were posted over the past three
months. That was nearly the same amount posted over the previous six months combined. Above one
million dollars, there were 37 closed sales and 40 new open escrows for the month of April.
Shea believes these market trends will continue. He added that: “the Greater Sacramento Region offers
exceptional home values and quality of life. We just enjoyed our best million dollar home sale month
since the summer of 2007. April’s 2015 median price remains 24 percent below the peak of the
pre-recession boom and interest rates are still oating below 4 percent. It’s a great time to be here.”
About Lyon Real Estate
Lyon Real Estate is ranked the number one brokerage in annual home sales in the greater Sacramento
region and has served the area for more than 65 years. In 2014, the company closed 7,553 transactions
worth a total of $2.61 billion in sales volume. Lyon Real Estate has 961 agents in 17 of ces located
throughout the region. The company is a member of the Leading Real Estate Companies of the World®
(LRE), the largest network of premier locally-branded rms, as well as LRE’s Luxury Portfolio
International program. In addition to its real estate services, Lyon Real Estate offers RELO Direct, a
global relocation program. For more information about Lyon Real Estate, click to www.GoLyon.com and
follow us on Facebook/Lyon.
About TrendGraphix, Inc.
TrendGraphix, Inc. is a real estate reporting company based in Sacramento that uses local Multiple
Listing Service (MLS) data to provide highly-visual market statistical graphs to real estate brokers,
agents, and MLS/Realtor associations across the country. TrendGraphix’s programs are currently used
by tens of thousands of agents in more than 100 brokerages in 18 states. For more information about
TrendGraphix, visit www.trendgraphix.com

Thursday, May 7, 2015

Pending Home Sales INdex

WASHINGTON (April 29, 2015) — Pending home sales in March continued their recent momentum, rising for the third straight month and remaining at their highest level since June 2013, according to the National Association of Realtors®.
The Pending Home Sales Index,* a forward-looking indicator based on contract signings, climbed 1.1 percent to 108.6 in March from an upward revision of 107.4 in February and is now 11.1 percent above March 2014 (97.7). The index has now increased year-over-year for seven consecutive months and is at its highest level since June 2013 (109.4).
Lawrence Yun, NAR chief economist, says contract signings picked up in March as more buyers than usual entered this year's competitive spring market. "Demand appears to be stronger in several parts of the country, especially in metro areas that have seen solid job gains and firmer economic growth over the past year," he said. "While contract activity being up convincingly compared to a year ago is certainly good news, the increased number of traditional buyers who appear to be replacing investors paying in cash is even better news1. It indicates this year's activity is being driven by more long-term homeowners."

Most Important This Time of Year: Dehydration

Keep Calm and Carry Water!
 
image: family outside drinking water from bottlesDehydration is no joke. We can live more than 60 days without food, but we can't survive more than a week without water, and even less than that in hotter climates. Water plays a crucial role—from blood flow, to healthy skin, to keeping organs working properly—and staying hydrated is essential. Here's what you should know:

What does dehydration look like?
The best way to recognize dehydration is to observe the color of your urine. While not true in all cases, for the most part, light to clear urine indicates proper water intake. Also, you should be urinating every 2 to 3 hours all day long, and getting up during the night to go is normal.

At the first signs of dehydration you might feel tired, cranky, moody or even have a headache near the end of the day. If it's a hot day and you stop sweating, your body temperature will also rise. In extreme cases, lack of water can reduce the amount of blood circulating in your body, creating fatally low blood pressure levels.

How much water is enough?
For children and teens: The American Academy of Pediatrics recommends 3-8 ounces of water every 20 minutes for children 9 to 12 and about 34-50 ounces per hour for adolescent boys and girls, more if playing or exercising.

For adults: The Institute of Medicine recommends that women drink around 9 cups of fluid per day and men 13 cups. This amount should be increased for overweight adults or those living in hotter climates.

For athletes: If you want to see an increase in performance and a decrease in fatigue, athletes should drink 16 ounces an hour prior to exercise, 4-8 ounces every 15 minutes during exercise, and another 16 ounces post-workout. If you're sweating, you're losing water at faster than normal rates and should be cognizant of replenishing fluid levels. Most importantly, water works equally as well as costly sports drinks.

Want to get more water into your life?
  • Get technical with apps like iDrated for iPhone and Aqualert for Android, which can not only track how much you drink, but also remind you to take a swig when you're on the go.
  • Purchase a personalized water bottle to help you form a lifelong good habit. Make sure it's portable and easy to use so you don't mind taking it with you throughout the day.
  • Add ice and a slice of lemon, lime or even cucumber to improve the flavor. Chilling the water with an ice cube or two also promotes fat loss.
  • Drink smaller portions over the course of a day, rather than all at once. And instead of coffee breaks, try water-cooler breaks!
  • Don't wait until you're thirsty to refresh yourself. By the time you feel thirsty, you may have already lost two or more cups of total body water.
Sources: WebMD, Mayo Clinic, Business Insider
 

Mothers Day is Here Why Not Treat Mom to a Great Breakfast


Sweet and Savory Mother's Day Breakfast
By Kirk Leins
 
image: family eating breakfast outdoorsThis Mother's Day, don't make your mom choose between sweet or savory—spoil her with both! Skip the long lines (and pricey) restaurant brunches with these delicious home recipes for French Toast and Maple Glazed Bacon. Whether you serve her breakfast in bed or at the table, it's the perfect way to tell her you love her. She deserves it!

French Toast
(Serves 4)
  • 8 slices of artisanal or bakery bread (recommended: challah, brioche or egg bread) cut into 1 1/4-inch thick slices
  • 3 large eggs, beaten
  • 1 cup half-and-half
  • 2 tablespoons honey
  • 1 tablespoon orange liqueur (optional)
  • 1 teaspoon vanilla extract
  • 1 teaspoon ground cinnamon
  • Pinch of salt
  • 3-4 tablespoons unsalted butter
  • Powdered sugar
The night before:

Place bread slices onto a baking sheet and loosely cover with clean towels. Keep out on the countertop overnight. By doing this, you're prepping the bread to be slightly stale by morning.

In a bowl combine eggs, half-and-half, honey, orange liqueur, vanilla, cinnamon and salt. Whisk well and transfer to a sealable container. Seal and refrigerate overnight.

The morning of:

Preheat oven to 375 degrees.

Remove egg mixture from the refrigerator and transfer into a shallow dish. Soak both sides of each bread slice in the egg mixture, for at least 15 to 20 seconds per side. Transfer the soaked bread slices to a baking sheet and allow to sit for two minutes.

Meanwhile, melt one tablespoon of butter in a nonstick skillet placed over a medium flame. Place two slices of bread in the skillet and fry for 2 minutes on each side, or until golden brown. Transfer to a clean baking sheet and place in the preheated oven for 5 minutes before serving. Repeat this process with the remaining slices of bread.

Dust with powdered sugar. Serve with syrup, jam or whipped cream.


Maple Glazed Bacon
(Serves 4)
  • 12 slices of quality, thick-cut bacon
  • Maple syrup
  • Crushed red pepper (optional)
Preheat oven to 375 degrees.

Line a baking sheet with parchment paper. Arrange bacon slices on the sheet and place in oven.

Once bacon is 3/4 of the way cooked (about 7 minutes), remove the baking sheet from the oven. Using a pastry brush, apply a light coating of maple syrup to the top of each slice of bacon.

Variation: For an extra kick, sprinkle a desired amount of crushed red pepper to each slice and return the sheet pan to the oven.

Continue cooking bacon to the desired degree of crispiness. Remove baking sheet from oven and transfer cooked bacon to a clean plate. Allow the bacon to rest for a few minutes before serving.

Download these recipes below and treat your mom to a sweet and savory Mother's Day brunch!
 
french toast recipe card thumbnail maple glazed bacon recipe card thumbnail



Kirk Leins has been cooking his entire life. No stranger to professional kitchens, he currently devotes most of his time to cooking instruction, food writing and producing television. Kirk also provides his services as a personal chef in and around the Los Angeles area. He has made several TV appearances on both the national and local level, and is the Executive Chef for YOU Magazine. Sign up for Kirk's free newsletter and cooking blog at www.NoTimeToCook.com.
 

Friday, May 1, 2015

Spring Buyers Get a Breather With Low Rates


Spring Buyers Get a Breather With Low Rates
 
image: real estate agent talking to coupleDespite some volatility in mid- to late-March, low rates continue their smooth stride into the spring home buying season.

Home loan applications for both purchases and refinances moved higher in early April due to consistently low rates. Home loan applications to purchase a home were 8 percent higher than the same time one year ago. Applications to refinance, which are more dependent on interest rates, rose 4 percent and were a surprising 44 percent higher than the same time one year ago.

Applications for the two main types of home loans, conventional (typically 15 and 30 year fixed rate loans) and government (Federal Housing Administration and Veterans Administration loans), also moved higher. This indicates both move-up and first-time buyers are back or getting into the market. Government-insured loans tend to attract first-time buyers due to their low down payment requirements. Volume for these loans grew by an impressive 19 percent from a year ago.

Fewer Homes on the Market
Higher prices and tight supply continue to stifle the market. "Pending sales showed solid gains last month, driven by a steadily-improving labor market," said Lawrence Yun, the National Association of REALTORS® chief economist. "However, the underlying obstacle—especially for first-time buyers—continues to be the depressed level of homes available for sale."

In a Bloomberg interview, Mortgage Bankers Association CEO David Stevens stated that home prices are rising twice as fast as wages and he expressed concern that inventory will drive up prices, discouraging many would-be homebuyers. Total housing inventory at the end of March was slightly lower than one year ago, and new listings are not coming on at nearly the pace needed to meet demand, according to an April CNBC housing report.

Home builders have also not ramped up production, citing tight credit for construction loans and rising prices for land in the best locations. The coming months will show whether homebuilders can obtain permits and sufficient credit in time to build to satisfy demand.

The Bottom Line
Low rates make it an exciting season to become a new homeowner, or to refinance your existing home loan. If you or your friends, family or colleagues have questions, please contact me today.

Sources: CNBC, Bloomberg, Realtor.com