Realty World - Sierra PropertiesLicense #: 00319644

Realty World - Sierra PropertiesLicense #: 00319644

Realty World - Sierra Properties's blog

Highlights From the Profile of Home Buyers and Sellers

For most home buyers, the purchase of real estate is one of the largest financial transactions they will make. Buyers purchase a home not only for the desire to own a home of their own, but also because of changes in jobs, family situations, and the need for a smaller or larger living area. This is part of the annual survey conducted by the NATIONAL ASSOCIATION OF REALTORS® of recent home buyers.

First-time buyers made up 26%, down from last year's 34%. This is the lowest share of first-time buyers since the data collection began.

LEADERSHIP

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EARLY-STAGE HOMEBUYING DEMAND AT HIGHEST LEVEL SINCE MAY

A decline in home prices and mortgage rates has spurred a greater level of early-stage homebuying demand, according to new data published by the brokerage Redfin (NASDAQ:RDFN). However, rising demand is not translating into rising home sales.

Redfin’s Homebuyer Demand Index, a seasonally adjusted measure of requests for home tours and talking to the company’s agents about home searches or offers, reached its highest level since last May during the week ending March 26.

"Shared Appreciation Program" Home Loan by CalHFA

RECAP on how this new program works..

Requirements:

*Must be a first time homebuyer

*Conventional loan only

*Occupy as a primary residence

* homebuyers counseling required (regular Calhfa and the Dream For All)

*SFR, condos, PUDs, manufactured homes are all permitted

*Occupy as a primary residence

*680 minimum credit score

Details:

*Dream for All provides a loan for up to 20% of the purchase price

Mortgage Rates Continue to Slide Down

Mortgage rates continued to slide down as financial market concerns came to the fore over the last two weeks. However, on the homebuyer front, the news is more positive with improved purchase demand and stabilizing home prices. If mortgage rates continue to slide over the next few weeks, look for a continued rebound during the first weeks of the spring home buying season.

As of week ending March 23, 2023:

30-Yr Fixed Rate Mortgage 6.42%

15-Yr Fixed Rate Mortgage 5.68%

Source: Freddie Mac

Does Your Home need Amnesty?

El Dorado County Supervisors are considering an amnesty program for existing homes. Some owners are not aware of work on their home by former owners that may not be compliant with county regulations.

What will the county policies or objectives be for current or future property owners? Will they have to pay or comply with demands, building codes or inspections? Will solar systems or interior sprinkler systems be required?

Aging Housing Stock Signals Remodeling Opportunities

The U.S. owner-occupied housing stock is aging rapidly especially after the Great Recession, as residential construction continues to fall behind in the number of new homes built. With a lack of sufficient supply of new construction, the aging housing stock signals a growing remodeling market, as old structures need to add new amenities or repair/replace old components.

Rising home prices also encourage home owners to spend more on home improvement. Over the long run, the aging of the housing stock implies that remodeling may grow faster than new construction.

FHA Mortgages Just Got More Buyer-Friendly

Here's some good news, especially if you plan to buy with a mortgage insured by the Federal Housing Administration (FHA). Beginning March 20, Mortgage insurance premiums, MIP payments will be cheaper as the premium will be reduced from 0.85% to 0.55% of the loan amount. This is estimated to benefit up to 850,000 potential and current FHA borrowers.

Borrowers can save anywhere up to $1,500 per year, depending on their location and loan amount. Here are a few examples of FHA mortgages and reduced MIP payments.

* $300,000 mortgage will save $900 per year.

Home Loan Interest Rates Trend Up!

Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®).

“The economy continues to show strength, and interest rates are repricing to account for the stronger than expected growth, tight labor market and the threat of sticky inflation,” said Sam Khater, Freddie Mac’s Chief Economist. "Our research shows that rate dispersion increases as mortgage rates trend up. This means homebuyers can potentially save $600 to $1,200 annually by taking the time to shop among lenders to find a better rate.”

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