Source:  Housing Wire

The Golden State recorded an increase in home sales between December and January this year, which is a major feat given that this hasn't happened since 2012.  
But, according to the latest existing-home sales report from the California Association of Realtors, California home sales and median prices backpedaled on a monthly basis in February.  However, both still showed strong gains on a yearly basis.  C.A.R., which puts out the report on a monthly basis, uses information collected from more than 90 local Realtor associations and MLSs statewide to create the report.

Existing, single-family home sales totaled 400,500 in February on a seasonally adjusted annualized rate, down 4.7% from January and up 4.9% from February 2016.  Despite the decline, this marks the 11th consecutive month closed escrow sales of existing, single-family detached homes in California remained above the 400,000 benchmark.

Check out the full story here:  http://www.housingwire.com/articles/39596-california-home-sales-start-year-off-strongbut-will-that-last?eid=311685553&bid=1696513

Source:  CNBC

The fast-rising cost of housing today is shrinking demand for home loans but also pushing those who are in the market toward cheaper, adjustable-rate mortgages.

Home prices continue to rise far faster than incomes, and those higher housing costs have borrowers searching for the best deals on home loans.  The government-insured FHA program offers low down-payment loans, but rates on FHA mortgages rose last week.  Insurance premiums remain higher than before the recession.

Borrowers are now turning to shorter-term, adjustable-rate loans, which offer lower interest rates.  Their share of total applications has doubled to 9 percent since the election.  That is the highest level since October 2014.  The adjustable-rate share of mortgages dropped dramatically following the housing crash, as borrowers fled to the safety of the 30-year fixed rate.

Check out the full story here:  http://finance.yahoo.com/news/mortgage-applications-fall-2-7-110004021.html
​

Source:  Forbes

Scammers reportedly are making calls to customers posing as representatives from companies like ConEd, Duke Energy, Georgia Power, Consumers Energy, or a bogus utility company called General Electric, among others.  They'll threaten to shut off power or service if customers don't pay immediately.  They'll offer an "energy assistance" or payment plan and ask for the customer's payment information.

Some warning signs to watch out for:  Representatives that demand customers pay by prepaid debit card or by a wire transfer (utility companies accept check or credit card and will generally direct customers to one of their payment locations).  Also, don't let anyone inside your home claiming to be a utility company representative unless you have a scheduled appointment or have reported an issue.  When in doubt, hang up the phone and call the customer service number for your utility company to make sure you are speaking with a legit representative.

Check out the full story here:  https://www.forbes.com/sites/johnwasik/2017/03/19/scam-alert-how-to-avoid-utility-fraud/#29531f6b4459

Source:  Bloomberg

It's the 2017 U.S. spring home-selling season, and listings are scarcer than they've ever been.  Bidding wars common in perennially hot markets like the San Francisco Bay area, Denver and Boston are now also prevalent in the once slow-and-steady heartland, sending prices higher and sparking desperation among buyers across the country.

The three months through January had the fewest homes on the market on record, according to an analysis by Trulia.  Prices jumped 6.9 percent in January from a year earlier, the biggest increase for any month since May 2017, data from CoreLogic Inc. show.  And homes sold faster in the first two months of 2017 -- spending an average 58 days on the market -- than at the start of any year since at least 2010, according to brokerage Redfin.

Check out the full story here:  https://www.bloomberg.com/news/articles/2017-03-17/job-surge-fuels-bidding-wars-for-record-low-supply-of-u-s-homes

Source:  Credit.com

Since the beginning of spring and more interest-rate hikes coming up, a lot of people are wondering if it's time to make the jump from renter to homeowner.  Of course, making such a move involves much more than browsing real estate listings and cobbling together enough for a down payment.

One of the most important things a first-time homebuyer can do is prepare their budget for this big financial event.  We asked our partners and money-savers extraordinaire at Clark.com to share some of their best budgeting tips for people looking to buy a home this year.  Some of the steps homebuyers should take to prepare their finances include getting their credit in shape, save enough for a down payment - and then some, and prepare for other upfront costs.

Click the link for further reading:  http://finance.yahoo.com/news/prepare-budget-buying-first-home-123000854.html

Real Estate Update - Market Information You Should Know

- A study by Fannie Mae examines homebuyer education, and explains why many buyers aren't being educated.  Most consumers interviewed in the study had little or no awareness of pre-purchase homeownership education classes unless they were required to take one.

- For this study, Fannie Mae conducted 54 individual in-depth interviews and eight two-hour mini-group discussions across four markets, among lower-income first-time homebuyers as well as professionals, real estate agents and loan officers, who have experience working with lower-income first-time homebuyers and homeownership education or counseling.

- Despite the low amount of participation in educational programs, the study showed all participants agreed homeownership education gives borrowers knowledge, confidence and employment to be financially and emotionally prepared for homeownership.

- However, homeowners rarely participate in these programs unless they are required to take educational courses and were referred to by loan officers for loan qualification requirements or benefits such as down payment assistance programs, the study showed.  In fact, very few even knew the range of programs offered.

- Homebuyers:  HE involves time and inconvenience.  It's "another hoop to jump through" during an already stressful time.  It sounds like school and involves coming up with more money if a fee is involved.

- Lenders:  HE is one more thing on the long list of paperwork to make the deal happen.  Loan officers have a deal-centered, transactional mindset.  Some are concerned that borrowers will learn something that could kill the deal or lead them to other lenders.

- Real estate agents:  There is an overall "not my job" mindset.  Real estate agents have no concrete incentive or motivation to refer their clients to HE.  They view lenders as experts on loan-related steps and process and want to guide or control their clients themselves.  Like loan officers, they are concerned that borrowers might connect to another real estate agent or deal.

Source:  LA Curbed

Rental prices for a one-bedroom in Los Angeles have jumped 3 percent since March, while the city remains the sixth-most expensive rental market in the nation, according to a new report from rental listing website Zumper.

L.A. is no longer tied with Oakland for that sixth spot, as it was in February.  Instead, the Bay Area city has moved into fifth place, while Washington D.C. has dropped to seventh on the list.

The median price for a one-bedroom unit now stand at $2,060 per month.  That's up 4.6 percent since this time last year, according to the report.  Two-bedroom rents have also increased to a median price of $2,950 per month, up a percent over last month and 5.4 percent since last year.

Check out the full story here:  http://la.curbed.com/2017/3/30/15129550/rental-prices-los-angeles-most-expensive-report

Source:  The Mercury News

Choked by traffic and overwhelmed by skyrocketing housing costs, a greater percentage of Bay Area residents than a year ago now say they yearn to flee the region.

In a new Bay Area Council poll released Thursday, 40 percent of the region's residents said they want to move away in the next few years, a marked increase from the 33 percent who said in 2016 they wanted to leave.

Even worse, the new survey found that young adults are more inclined to leave:  46 percent of millennials want to lead the charge out of the Bay Area in the next few years.

Check out the full story here:  http://www.mercurynews.com/2017/03/30/housing-traffic-woes-stoke-urge-to-flee-bay-area-new-poll-shows/

Source:  Fox & Hounds

California's housing crisis is the biggest issue for the business community, low-income residents and middle class workers according to a disparate group of panelists taking part in a session sponsored by the CALIFORNIA ASSOCIATION OF REALTORS' Center for California Real Estate.

The Los Angeles event included Rob Lapsley, president of the California Business Roundtable, Los Angeles City Controller Ron Galperin, and Chris Hoene, Executive Director of the California Budget & Policy Center.  The panel moderator was Leslie Appleton-Young, Senior Vice-President and Chief Economist for the REALTORS association.

Check out the full story here:
 http://www.foxandhoundsdaily.com/2017/03/unscrambling-housing-crisis/
​

Source:  Credit.com

You can deduct private mortgage insurance paid during the 2016 tax year, but this will likely be the last time.
Homebuyers unable to make a down payment of at least 20 percent of their home's purchase are required to buy the insurance, also known as PMI.  It protects your lender in case you default on your loan.

PMI premiums have been deductible since 2007, but the tax break has expired.  For future tax years, Congress must renew it.

Check out the full story here:  http://finance.yahoo.com/news/last-chance-deduct-private-mortgage-100000830.html