Real Estate Roundup: San Francisco Is No. 3 in the World for Billionaires

From the Pacific Union blog:
The Bay Area has more billionaires than almost anywhere on earth, while mortgage rates have climbed to their highest levels in almost seven years. Pacific Union's latest Real Estate Roundup has these stories and more.  https://bit.ly/2H535IR . To find out about your personal real estate situation and more,call FRITZ.

Bay Area Luxury Home Sales Doubled in February

From the Pacific Union blog:

Bay Area homebuyer demand remained strong in February despite concers over tax changes, rising mortgage rate and stock market volatility.  While overall activity remained flat year over year in February, sales of homes priced above $3 million doubled to about 126 for the eight-county Bay Area (excluding Solano County).  Read more at . . . http://bit.ly/2FOSQwn .  Call FRITZ for more information on this and all your real estate needs.

Is Cash King? Certainly in Some Bay Area Housing Markets

From the Pacific Union blog:
Summary:
Bay Area all cash buyers are more likely to purchase higher-end homes.
46% of Bay Area transactions above $3 million were all-cash deals and 41% of transactions between $2 and $3 million were all cash.
Napa and Sonoma counties have the highest shares of all cash buyers in the Bay Area.
All cash buyers are more likely to purchase a home for investment/tax advantages.
Bay Area mortgaged buyers have the highest credit scores and lowest loan to value ratios among US metropolitan areas!  Read more:  http://bit.ly/2vZZNV. For more information on buying and selling a home in your area, call FRITZ

The Federal Reserve Increases Interest Rates, but Slow Inflation Keeps Mortgage Rates Low

From the Pacific Union blog:
While the Fed's decision was anticipated and already accounted for by the market, what lies ahead is less than certain.  The Fed is expected to increase rates again this year, but concerns over slow inflation may affect future decisions---read more:  http://bit.ly/2uNv7Ui  For more on how the rates affect you, cal FRITZ.

New Tax-Reform Proposal Is Only a Sneak Preview

From the Pacific Union blog:
Pacific Union Chief Economist Selma Hepp offers her take on the potential impacts of the Trump administration's proposed tax changes and how they might affect homeowners and home buyers.
http://bit.ly/2qAYC8C .  For more information about how this might affect you, call FRITZ.

First-Time Buyers Overestimate Down-Payment Size

From the Pacific Union blog:
The vast majority of Americans who don't own a home want to purchase one in the future, although affordability is a primary concern.  The down payment, however, may not be as big of a hurdle as many first-time buyers believe.  Read more at http://pacunion.us/2lbk3vt .  For more information about this and all your real estate needs, call FRITZ.

Forecast: U.S. Home Sales and Prices to Rise in 2017

From the Pacific Union blog:
U.S. home sales volume and prices should continue to increase this year, although rising mortgage rates and declining affordability will prove challenging - particularly in expensive markets like the Bay Area. For the outlook, go to http://pacunion.us/2k4hdJN .  For more information contact FRITZ.

Election Outcome and Rising Mortgage Rates Temporarily Slow Bay Area Home Sales

From the Pacific Union blog:
Home sales across the Bay Area declined more than usual in the final month of 2016.  Pacific Union Chief Economist Selma Hepp takes a look behind the numbers in her latest analysis.  Read the full story at http://pacunion.us/2j0KMsO

Strong Data About Surprises in Economic Activity

STRONG DATA: Courtesy the Loan Ladies at Prospect Mortgage
Upside surprises in economic activity are usually not good for mortgage rates.  The major reports released over the past week, especially the housing market data, far exceeded expectations.  Hawkish comments from Fed Chair Janet Yellen in a speech on Friday afternoon also had the potential to push mortgage rates higher.  Despite the strong data and hawkish comments from Fed officials, mortgage ratesd ended the week with little change.
Two important reports on the housing market released over the past week showed that activity in April rose to the best level in years.  First, a report that measures the number of contracts signed to buy newly built homes showed that activity in April rose to the best level since january 2008.  This was good, but new homes represent only 10% of the overall housing market.  The remaining 90% is made up of activity involving previously owned homes.  The data on previously owned homes also showed stunning results in April.  Contracts signed in April to buy previously owned homes jumped to the highest level since February 2006.
The other significant data released this week that exceeded expectations was report that measured activity regarding orders for durable goods.  Durable goods include items considered to be useful for at least three years, like planes, autos and machinery.  Orders for durable goods rose in April by 3.4%.  Most of the increase came from orders for civilian aircraft, which generally are quite large and can be very volatile--even excluding transportation, new orders rose .4% from March.  For more information on how the latest economic activity effects your ability to buy or sell a home, contact FRITZ.

Top Tips to Prepare for Homeownership

Ready to buy a home?  Here are the top tips to determine if you are ready.

1.  Decide what you can afford.  Generally, you can afford a home equal in value to between two and three times your gross income.

2.  Develop your home wish list.  Then, prioritize the features on your list.

3.  Select where you want to live.  Compile a list of three or four neighborhoods you'd like to live in, taking into account items such as schools, recreational facilities, area expansion plans and safety.

4.  Start saving.  Do you have enough money to qualify for a mortgage and cover your down payment?  Ideally, you should have 20 percent of the purchase price saved as a down payment.  Also, don't forget to factor in closing costs.  Closing costs---including taxes, attorney's fees and transfer fees---average between 2 and 7 percent of the home price.

5.  Get your credit in order.  Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately.

6.  Determine your mortgage qualifications.  How large of a mortgage do you qualify for?  Also, explore different loan options---such as 30 year or 15 year fixed mortgages or ARM's.

7.  Get pre-approved.  Organize all the documentation a lender will need to pre-approve you for a loan.  You might need W-2 forms, copies of at least one pay stub, account numbers and copies of 2-4 months of bank statements.

8.  Weigh other sources of help with a down payment.  Do you qualify for any special mortgage or down payment assistance programs?  Check with your state and local government on down payment assistance programs for first-time buyers.  Or, if you have an IRA account, you can use the money to buy your first home without paying a penalty for early withdrawal.

9.  Calculate the costs of homeownership.  This should include property taxes, insurance, maintenance, utilities and association fees, if applicable.

10.  Contact a Realtor.  FRITZ would be glad to talk with you and answer all you real estate questions.

Millennial Homebuyers Face Credit-Score Challenges

Millennials make up the largest percentage of the U.S. population and recently surpassed Generation X as the biggest portion of the labor force, but the younger generation's credit score could be a factor that's delaying or preventing more of them from entering the housing market.  Read more . . .
For more information on this and all your real estate needs, call FRITZ.

Mortgage Availability Improves for Sixth Straight Month

Courtesy of the Pacific Union Blog:
Good News for homebuyers:  It's becoming easier to get a mortgage.
Relaxed government regulations, new offerings from federal loan programs and new jumbo-loan options helped raise the Mortgage Bankers Association's monthly Mortgage Credit Availability Index by an average 0.5 percent from March to April---the sixth straight month of increased access to home loans. Read more . . .