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Pending Home Sales Surge to 18-Month High

A rise in buyer demand pushed pending home sales upward in January to the highest level since August 2013, according to the National Association of REALTORS.  The Pending Home Sales Index rose 1.7 percent in January to a 104.2 reading – 8.4 percent above levels from a year ago… Source: Daily Real Estate News

According to Lawrence Yun, NAR’s chief economist. “The difference this year is the positive factors supporting stronger sales, such as slightly improving credit conditions, more jobs, and slow price growth.” I think he forgot to mention the sustained LOW INTEREST RATES and reasonably normal home price appreciation throughout 2014.

A Regional Look: NAR’s index:

Here’s a closer look at the performance of pending home sales across the country in January, according to

  • Northeast: the Pending Home Sales Index moved up slightly by 0.1 percent in January to an 84.9 reading. It is 6.9 percent above year ago levels.
  • Midwest: the index fell 0.7 percent to 99.3 in January; it is 4.2 percent above January 2014.
  • South: the index rose by the largest amount in the South, up 3.2 percent in January to a reading of 121.9 – the highest since April 2010; the index is 9.7 percent above where it was a year ago.
  • West: the index climbed 2.2 percent in January to 96.4 and is 11.4 percent above a year ago.

We’ll have to see what the first and possibly the second quarters of 2015 stats are before getting too excited. There are two factors that will dictate the results. One is the interest will rates are most likely to increase. Two is there is a LOW INVENTORY nation wide this January with an increase in home prices. Lack of inventory in January will cause home prices to rise earlier in the year. Supply and Demand will run its course.  May hurt the first time home Buyer the most.

www.franksacco.com

 


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Officers Improve Range In Good Faith

Quote from the Editor “After years of complaining about stray bullets that ricochet from police training at the nearby Record Range, Mary Lake residents may see a solution soon”.

The Shasta County Police Officers Association which has owned the range for 60 years before any bordering land was developed has a plan to surround the 25 acre property with protective structures that would stop or significantly curtail the chances of stray bullets landing in the neighbors yards. Hopefully this good news for the majority of concerned residents and business can proceed as usual.

However there are neighbors who continue to complain and whisper talk of legal action. The Neighborhood Association for Peace and Safety brought their complaints to the County Board of Supervisors saying the range needed to be moved. Supervisors wanted no part of that stating that Association work out their problems with the peace officers. I hope there will be a meeting of the minds with an amiable resolution.

Having the range remain in its location with the improved safety facilities is a must. The cost to the City would be devastating at a time when $$$ and resources are scarce. The location is strategic and 60 years established. Peace officers are within a short drive to the range saving time and money. Residents knowingly purchased their properties with full disclosure from real estate Agents who sold them the property and local governing agencies from the beginning. The peace officers are stepping up to the plate and addressing the concerns of the neighbors. “GIVE PEACE A CHANCE”

www.franksacco.com


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Low inventory may take bloom off spring home sales

Source: CNBC

Home prices are beginning to grow at a faster pace again, which is not good for the spring market. Shortage of inventory is linked with higher home prices. Or simply stated the Supply and Demand rule in motion.

Higher prices, coupled with weak supply, caused an unexpectedly large drop in January home sales, down nearly 5 percent from January of 2014, according to the National Association of Realtors. with rising home prices. Normal market trends occur when there is  a bit more inventory available in relation to lesser Buyer demand. January is the bench mark. Listings are down significantly in parts of California and in formerly strong markets like Las Vegas and Denver, according to Realtor.com.

According to running surveys by Realtor.com, potential buyers are saying they can’t find a home that meets their needs and/or budget. Usually inventory drags are more localized, but today’s market is behaving more nationally than in the past.

I see the trend occurring here in Redding. Inventory is low and List Prices are high. Most of those Listings will be significantly reduced after the first 30-40 days. A few of those will sell and others are likely to sit a while.

We need to see more listings at reasonable prices in order to spark some sort of normal market trend. Realtors need to be realistic and provide their Sellers information that will contribute to turning the market around. Lets hope that Redding doesn’t let this trend escalate. We need a normal market where all Buyers can find affordable and realistic priced homes.

www.franksacco.com


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Preparing Your Finances for Homeownership

by Courtney Soinski

vakilhousing.com

Are you considering buying a new home this spring? With tax season in full swing, now is the perfect time to get organized. Buying a home is one of the largest investments you will make, so it’s important to be well prepared before taking the leap.

Follow these tips to prepare your finances for homeownership.

1. Get your credit in order.

Your credit is a large factor in determining whether or not you qualify for a mortgage, so it’s important that you determine your credit score at least three months before buying. The higher the score, the easier it will be to qualify for a mortgage.

To access your scores, either purchase them as you get your free reports from Annual Credit Report Request Service, or pay for them when you buy your reports from the credit bureaus:

Equifax  –  www.equifax.com /

Experian  –  www.experian.com /

TransUnion  –  www.transunion.com /

2. Prepare for expenses before you buy.

Understand and plan for what you will need to spend before the actual purchase. According to a recent article, you’ll need enough cash for a down payment, closing costs, and a few months’ worth of mortgage payments. Figure out what you will need for extras like moving costs, furniture, and repairs.

3. Know how much you can afford.

Before you jump into a contract, you need to make sure it’s something you can actually afford. List and total your monthly expenses, then subtract that from your monthly net income. Here’s a good rule to keep in mind: your total housing costs should be no more than 30% of your net pay. Also, remember that a larger down payment of about 20% or more can save you hundreds and even give you more buying power.

4. Have trade lines.

Did you know what most lenders prefer if you have three of more trade lines that have been open for at least a year? These can range from credit cards and students loans to a car loan. You should also avoid closing them because it can hurt your credit score.

5. Do your research.

Above all, it’s crucial that you do your research before buying your new home. In addition to the price of the home, you must always consider other factors such as property taxes, homeowners insurance, utilities, maintenance, and repairs.

6. Consult a real estate professional.

The right real estate professional can walk you through all the steps for preparing to buy a home.  Whether it’s your first home, your forever home, or a vacation retreat, the right real estate pro can not only help you get ready, but negotiate the best deal and help you navigate through financing, contingencies and closing.  The best investment in buying a new home is in choosing the right partner to help you through.

Source: Balance Pro

www.franksacco.com


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Public Safety Top Council Priority

After reading this article in Sunday’s Record Searchlight I had to pinch myself to make sure I wasn’t dreaming. The Redding City Council appears to have taken one small step towards pushing for a budget plan / tax or whatever to get “more boots on the streets”(police officers) I’m actually quite thrilled they are finally listening to the angry voices expressed by the good citizens of Redding in dealing with the homeless and criminals that have permeated our lovely City.

The Council now has made it public that they will find a way or ways to make all of this happen. Police Chief Paoletti and his force needs the Council’s and Greater Redding Chamber of Commerce support as well as ours. Lets hope they’ll live up to their promises.

www.franksacco.com