homesmillbrae.com » Jumbo Loans

Mortgage rates same for loans big and small

Thu, 15 Aug 2013 05:21:12 +0000

“It’s a confluence of events, really, and all of them help the spread between jumbo and conventional loans,” said Matthew Graham, COO of Mortgage News Daily.

“Nonagency jumbo lenders began dipping their toes in the water as early as 2011, and even more so into the end of 2012. Strong loan quality due to tight underwriting combined with competition between large banks and securitzers has led to relatively increased demand. Wells and Chase are keen to compete with securitizers like Redwood or Sequoia in order to capture potential income streams from jumbo clients’ bank business.”

(Read more: Higher mortgage rates may mean easier credit)

In addition, Fannie Mae and Freddie Mac, which back and bundle two-thirds of conventional loans, have been raising the fees they charge to banks, so-called guarantee fees, mostly to protect themselves against default. Guarantee fees have nearly doubled in just the past year.

“As G-fees move higher, this increase gets added into conforming mortgage rates,” said Guy Cecala of Inside Mortgage Finance. “It’s a factor, but not the biggest one, allowing portfolio jumbo lenders to match or undercut conforming mortgage rates.”

The bigger factor, said Cecala, is that 92 percent of jumbo mortgages are made by banks that fund the loans with their deposits and then hold them in a portfolio. Given that the interest paid on consumer deposits in banks is still incredibly low, lenders can still make a profit on mortgages priced at 4 percent or less if they want to. In fact, jumbo loans, by some lenders, can actually cost less than conforming.

Article source: http://www.cnbc.com/id/100962728

Jumbo Mortgage Divide Starts Shrinking

Tue, 12 Mar 2013 21:42:42 +0000

“The jumbo market has heated up, as tight lending guidelines have drastically reduced consumer late payments, strategic defaults, and foreclosures,” wrote Julian Hebron, a mortgage banker in California and author of the blog The Basis Point. “This gives investors confidence to buy jumbos again, which means lower rates for consumer borrowers. These borrowers can count on lending guidelines remaining tight, but all that means is a bit more paperwork when getting a loan.”

(Read More: Housing Recovery Leaves Some Behind)

The jumbo securitization market is tiny, however, as most jumbo loans are still held on bank balance sheets. There are so far just two players in jumbo securitizations, Redwood Trust Inc. and very recently Credit Suisse Group AG, although others, including JPMorgan Chase, are preparing to join them.

There were no jumbo securitizations at all between 2008 and 2010. When Redwood dipped its toes in, securitizations totaled less than $1 billion in 2010-2011. By 2012 they hit $3.5 billion, according to Inside Mortgage Finance, and are already at $2 billion so far for 2013. Hebron believes they could surge dramatically in the very near future.

The rebirth of jumbo securitizations is being driven not just by investor confidence, but by growth in jumbo originations, which increased after the conforming loan limit was lowered. Originations of non-agency jumbo mortgages jumped by over 19 percent in 2012 from 2011, according to Inside Mortgage Finance.

So why is the conforming-jumbo spread shrinking? Not because jumbo rates are falling but because conforming rates are rising due in part to government intervention.

“Congress keeps raiding the guarantee fees (g-fees) Fannie and Freddie charge lenders in the securitization process for other purposes, like funding payroll tax cuts,” noted Hebron. “For each 10 basis point hike in g-fees, we’ve seen consumer rates rise about 0.125 percent.

Article source: http://www.cnbc.com/id/100543189

Bay Area August Home Sales Highest Since 2006

Wed, 19 Sep 2012 05:29:45 +0000

La Jolla, CA.-The Bay Area posted its strongest home sales for the month of August in six years, the result of low mortgage interest rates, an improving economy and increasing demand in mid- to move-up market segments. The median price paid for a home eased back a notch from June and July, but was well ahead of last year for the fifth consecutive month, a real estate information service reported.

A total of 8,579 new and resale homes were sold in the nine-county Bay Area last month. That was up 1.4 percent from 8,461 in July, and up 14.2 percent from 7,513 for August 2011.

A July-to-August sales increase is normal for the Bay Area summer season. August sales have varied from 6,688 in 1992 to 13,940 in 2004, while the average for all months of August since 1988, when DataQuick’s statistics start, is 9,638.

The median price paid for all new and resale houses and condos sold in the Bay Area last month was $410,000. That was down 2.6 percent from $421,000 in July, and up 10.8 percent from $370,000 in August 2011.

The Bay Area median almost always drops from July to August. Roughly half the year-over-year increase in the median can be attributed to a shift in market mix.

The median’s low point of the current real estate cycle was $290,000 in March 2009. The peak was $665,000 in June/July 2007. Around half of the median’s peak-to-trough drop was the result of a decline in home values, while the other half was the result of a shift in the sales mix.

“Most economists agree that the housing market is off bottom. But there’s a big gap between the market being ‘off bottom’ and being normal, which it’s not. The single biggest bottleneck is still the dysfunctional mortgage lending market. It’ll be interesting to see how yesterday’s announcement that the Fed is going to buy mortgage-backed securities plays out,” said John Walsh, DataQuick president.

Jumbo loans, mortgages above the old conforming limit of $417,000, accounted for 38.7 percent of last month’s purchase lending, up from a revised 38.6 percent in July, and up from 32.9 percent a year ago. Last month was the highest since 43.4 percent in November 2007. In the current cycle, jumbo usage dropped to as low as 17.1 percent in January 2009. Before the credit crunch struck in August 2007, jumbos accounted for nearly 60 percent of the Bay Area purchase loan market.

Adjustable-rate mortgages (ARMs), an important indicator of mortgage availability, declined again last month, accounting for 12.8 percent of the Bay Area’s home purchase loans. That was down from a revised 13.5 percent in July, and down from 16.0 percent in August last year. Since 2000, ARMs have accounted for 49.4 percent of all purchase loans. ARMs hit a low of 3.0 percent of loans in January 2009.

Government-insured FHA home purchase loans, a popular choice among first-time buyers, accounted for 16.1 percent of all Bay Area home purchase mortgages last month. That was the same as in July and down from 21.1 percent a year earlier.

The most active lenders to Bay Area home buyers last month were Wells Fargo with 17.0 percent of the market, RPM Mortgage with 4.6 percent and Bank of America with 3.3 percent. A year ago, Bank of America’s market share was 8.2 percent.

Last month 40.2 percent of Bay Area sales were for $500,000 or more, down from a revised 42.0 percent in July, and up from 35.9 percent in August 2011. The low for the current cycle was January 2009, when just 22.7 percent of sales crossed the $500,000 threshold. Over the past 10 years, a monthly average of 48.0 percent of homes sold for $500,000-plus.

Last month distressed property sales – the combination of foreclosure resales and “short sales” – made up about 33.8 percent of the Bay Area’s resale market. That was down from 34.0 percent in July and down from 43.8 percent a year ago.

Foreclosure resales – homes that had been foreclosed on in the prior 12 months – accounted for 14.9 percent of resales in August, down from a revised 15.1 percent in July, and down from 25.7 percent a year ago. Last month was the lowest since 14.0 percent in December 2007. Foreclosure resales peaked at 52.0 percent in February 2009. The Bay Area’s monthly average for foreclosure resales over the past 17 years is about 10 percent.

Short sales – transactions where the sale price fell short of what was owed on the property – made up an estimated 18.9 percent of Bay Area resales last month. That was the same as in July and up from 18.1 percent a year earlier.

Absentee buyers – mostly investors – purchased 23.0 percent of all Bay Area homes sold last month, up from a revised 22.6 percent in July, and up from 21.2 percent a year ago. Absentee buyers paid a median $264,500 in August, up 5.8 percent from a year ago.

Buyers who appear to have paid all cash – meaning there was no evidence of a corresponding purchase loan in the public record – accounted for 28.0 percent of August sales. That was up from a revised 27.6 percent in July, and up from 27.5 percent a year ago. The monthly average going back to 1988 is 12.6 percent. Cash buyers paid a median $273,250 in August, up 9.3 percent from a year earlier.

San Diego-based DataQuick monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts. Because of late data availability, sales were estimated in Alameda, San Francisco and San Mateo counties.

The typical monthly mortgage payment that Bay Area buyers committed themselves to paying last month was $1,491, down from $1,522 in July, and up from $1,460 a year ago. Adjusted for inflation, last month’s payment was 46.6 percent below the typical payment in spring 1989, the peak of the prior real estate cycle. It was 60.6 percent below the current cycle’s peak in July 2007.

Indicators of market distress continue to move in different directions. Foreclosure activity remains high by historical standards but below peak levels reached over the last three years. Financing with multiple mortgages is low and down payment sizes are stable, DataQuick reported.

(chart)

All Homes #Sold #Sold Pct. $Median Median Pct.

Aug-11 Aug-12 Chng Aug-11 Aug-12 Chng

Alameda 1,498 1,828 22.0% $349,000 $380,000 8.9%

Contra Costa 1,576 1,649 4.6% $260,500 $300,000 15.2%

Marin 264 341 29.2% $619,500 $634,000 2.3%

Napa 121 160 32.2% $320,000 $350,000 9.4%

Santa Clara 1,731 1,892 9.3% $492,000 $542,750 10.3%

San Francisco 484 625 29.1% $618,500 $700,000 13.2%

San Mateo 678 716 5.6% $570,000 $592,500 3.9%

Solano 595 693 16.5% $185,000 $190,000 2.7%

Sonoma 566 675 19.3% $305,000 $345,000 13.1%

Bay Area 7,513 8,579 14.2% $370,000 $410,000 10.8%

Source: DataQuick, DQNews.com

Article source: http://www.kionrightnow.com/story/19578820/bay-area-august-home-sales-highest-since-2006

Why Private Investors Are Staying Away From Mortgages

Tue, 07 Aug 2012 06:29:02 +0000

As homebuilders gain confidence and real estate agents claim demand is back, one would think investors would jump right back in for fear of missing the bottom. Investors in housing are buying up as many distressed properties as they can find, but investors in the mortgage market are still sidelined, burned by the subprime bust that left many of them with huge losses.

The private investor share of the outstanding mortgage market fell below $1 trillion in July to $999.7 billion, according to Amherst Securities. This is down from $1.8 trillion a year ago and $2.3 trillion at the peak in 2007.

“Since this is somewhat of a psychological barrier we are crossing, we naturally asked the question how long it might take to cross other benchmark market sizes,” wrote Amherst’s Laurie Goodman in a monthly report. “In the absence of any new issuance, we estimate the market will broach $750 billion in June 2014 and $500 billion by February 2017.”

The private investor share of the market has been dropping precipitously since the crash of the mortgage market, as millions of borrowers defaulted on loans, but even as the market now recovers there has been little to no new issuance.

Fannie Mae, Freddie Mac, and the Federal Housing Administration back more than 90 percent of all new loans, whereas they were barely one third of the market during the housing boom. Only Redwood Trust
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], which doesn’t originate loans but issues securities on pools of largely jumbo loans, is in the game and growing.

Redwood, a real estate investment trust (REIT), which has returned 33.4 percent this year, is now looking to get into the agency mortgage market as well, in talks with Fannie and Freddie to, “add conforming loans to our product menu,” according to a letter to shareholders. Redwood is also doing another jumbo security issuance in the third quarter.

Other players are reluctant to jump back in, despite the government officials’ claims that they are trying to shrink Fannie and Freddie by, among other things, raising guarantee fees. The FHA recently raised insurance fees and premiums, also claiming that it wanted to shrink its share of the market. Private investors still say government subsidies are pricing them out.

“It’s a combination of they’ve been burned by the subprime meltdown and don’t trust the quality and ratings, but equally important, yields are so low because mortgage interest rates are so low,” says Guy Cecala of Inside Mortgage Finance. “The only way to really revitalize the private label market is to take the government loan limits down to $417,000 again.”

Loan limits at Fannie, Freddie and the FHA were raised to just more than $729,000 in many major housing markets and then Fannie and Freddie’s were later lowered to $625,500. Meanwhile the Federal Reserve (explain this) is following an ongoing policy of exceptionally low interest rates, designed to keep long term interest rates in particular low. Mortgage rates for conforming loans have been sitting well below 4 percent, and even jumbos are near record lows.

Questions? Comments? And follow me on Twitter @Diana_Olick

Article source: http://www.cnbc.com/id/48531685?__source=RSS*blog*&par=RSS

San Francisco Bay Area Home Prices Increase 8.3% in April

Thu, 17 May 2012 22:11:12 +0000

Enlarge image

San Francisco Bay Area Home Prices Increase 8.3% in April

Justin Sullivan/Getty Images

Real estate agent Brad Smith, right, with potential home buyers in San Francisco.

Real estate agent Brad Smith, right, with potential home buyers in San Francisco. Photographer: Justin Sullivan/Getty Images

Home prices in the San Francisco Bay
area rose in April for the first annual gain in 19 months as
buyers acquired costlier properties, according to DataQuick.

The median paid for houses and condominiums was $390,000 in
the nine-county region, up 8.3 percent from $360,000 in April
2011 and 8.9 percent from $358,000 in March, the San Diego-based
data firm said in a statement. The year-over-year advance was
the first since September 2010.

The smallest share of foreclosure deals in four years and a
shift in sales toward move-up markets helped to boost values,
DataQuick President John Walsh said in the statement. Buyers are
seeking to take advantage of decreased prices and record-low
mortgage rates, according to the company.

“It appears the market is taking a step in the direction
of normalization, but only a step,” Walsh said. “The mortgage
market is critical, as is market mix and the receding importance
of foreclosure resales.”

A total of 7,675 homes sold last month, little changed from
March and up 13 percent from a year earlier. The tally, the
highest for April in six years, was still well below the monthly
average of 9,088 sales going back to 1988, DataQuick said.

Foreclosures accounted for 22 percent of sales, down from
28 percent a year earlier and the lowest since January 2008.
Homes priced at $500,000 or more made up 38 percent of all
sales, up from a 36 percent share in April 2011, DataQuick said.
Jumbo loans above the old conforming limit of $417,000 were used
in almost 36 percent of deals, up from 32 percent.

Median prices rose 6.9 percent from a year earlier to
$700,000 in San Francisco, and 9.3 percent to $513,500 in Santa
Clara County. The biggest price gain was in Contra Costa County,
up 12 percent to $288,750, according to DataQuick.

To contact the reporter on this story:
Dan Levy in San Francisco at
dlevy13@bloomberg.net

To contact the editor responsible for this story:
Kara Wetzel at
kwetzel@bloomberg.net

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Article source: http://www.bloomberg.com/news/2012-05-17/san-francisco-bay-area-home-prices-increase-8-3-in-april.html

Changes to jumbo loans kick market while it’s down

Tue, 02 Aug 2011 10:39:31 +0000

Barring last-minute action by Congress, many Bay Area home shoppers will soon find it harder to buy more expensive homes because of changes in eligibility requirements for a popular type of mortgage.

Starting Oct. 1, interest rates on loans between $625,500 and $729,750 will increase, potentially raising monthly mortgage payments by hundreds of dollars.

Before the change, loans up to $729,750 qualified for a reduced interest rate.

Private lenders say they’re ready to pick up the slack. But real estate professionals are afraid that higher interest rates and down payments will make buying a home more difficult at a time when the market is still weak.

“It’s a big mistake,” said Ken Rosen, chairman

of Rosen Consulting Group, a real estate market research firm in Berkeley. “It’s the right policy in the long run but the wrong time to do this. If there was one single smart person in Washington they would say we want to encourage lending at the bottom of the cycle. Let’s get prices up 5 or 10 percent first.”
The break for homebuyers and those looking to refinance in high-cost areas like Silicon Valley stemmed from emergency legislation passed by Congress during the 2008 credit crunch.

Shrinking limits

The law — called the Housing and Economic Recovery Act — raised the maximum amount permitted on mortgages that qualify for Fannie Mae, Freddie Mac and Federal Housing Administration programs.

Those loans have the implied backing of the U.S. government, which lowered their interest rate.
Now, under a complicated formula in the same legislation, five Bay Area counties will see the maximum drop from $729,750 to $625,500 on Oct. 1. Bigger loans will have to come from private lenders at interest rates that are about half to three-quarters of a percent higher.

The change would add $217 a month to a mortgage payment on a $725,000 loan if the Fannie and Freddie rate were 4.375 percent, when the private rate was 4.875 percent.

“While the interest rates are slightly higher, those are still extraordinarily good mortgage rates. They shouldn’t affect buyers’ ability to buy a home nor desire to buy a home,” said Brad Blackwell, executive vice president and national sales manager for Wells Fargo Home Mortgage.

But Rosen predicted fewer people would be able to buy a home, although the lower limits won’t hit the Silicon Valley as hard as other places because it has “just about the strongest housing market in the country.” The East Bay has a much weaker housing market and will feel the impact more, he said.

The California Association of Realtors, which wants Congress to keep the higher maximum, says nearly 8 percent of home purchases in Santa Clara County could be affected; 11.5 percent in Contra Costa County; almost 10 percent in San Francisco; and about 6 percent in Alameda County.

“This change in policy would definitely have an impact at the worst possible time,” said Robert Kleinhenz, deputy chief economist with the California Association of Realtors. He said the homeowner trying to trade up to a larger home will suffer.

Rep. John Campbell, R-Newport Beach, is co-sponsoring a bill that would extend the higher limits for two more years. Housing Secretary Shaun Donovan, however, said Thursday that lowering the limits was “the right step to take,” and wouldn’t have a big impact on the housing market.

Median price factor

Mortgage brokers and real estate agents say some customers are racing to beat the deadline.

“I am seeing people kind of rush to get in there,” said Andrew Soss, president of the California Association of Mortgage Professionals of Silicon Valley.

Bank of America has already stopped accepting applications for the high-limit loans out of concern that they won’t be completed before the deadline.

The limits are based on median home prices, and in some counties median prices have dropped substantially. Monterey loses more than any other county in the United States: $246,800. Its former limit of $729,750 is being ratcheted down to $482,950 because of declines in home values in the southern, agricultural part of the county.

“It’s a ridiculously huge drop, and a ridiculous equation they are using to formulate this,” said Stuart Shankle, broker at Shankle Real Estate in Monterey. “It’s going to leave a tremendous void in the market.”

Mortgage bankers downplay the impact and say they’re ready for the business the new limits will bring to their doors.

“We view it as more of a little blip,” said Buck Hawkins, vice president of the California Mortgage Bankers Association. “Most of us in the industry suspect the private money will come into that space and compete. It won’t be a subsidized rate. It will be a market rate, about three-eighths to three-fourths basis points higher,” he said.

Matthew Ostrander, a California Mortgage Bankers Association director and co-founder of Parkside Lending in San Francisco, expects any impact to be temporary.

“The Bay Area is going to do OK,” he said.

Contact Pete Carey at 408-920-5419.

Article source: http://www.mercurynews.com/business/ci_18590197?source=most_emailed

Lower Mortgage Limits Are a ‘Trade-Off’ Bernanke Says

Thu, 14 Jul 2011 12:28:15 +0000

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For those of you worried that the scheduled expiration of higher loan limits at Fannie Mae, Freddie Mac and the FHA will have a negative effect on the housing market by raising the cost of home ownership, you can be rest assured the chairman of the Federal Reserve is fine with it.

“As far as Fannie Mae and Freddie Mac are concerned, there is a tradeoff there between supporting the higher priced homes and weaning the housing finance system off of unusual limits it was put under during the crisis,” Ben Bernanke told a Congressional Committee today.

“I understand the private sector is taking at least a significant number of the jumbo mortgage market but at a higher cost,” Bernanke said.

There have been numerous and varied contentions about the future state of the mortgage market once loan limits drop from the maximum $729,750 to $625,500. The home builders think it will be catastrophic while some economists and academics say it will have little effect, especially at the FHA.

Bernanke admits that jumbo loans will come, “at a higher cost,” but we have to put in perspective what exactly that higher cost will be. Mortgage rates on conforming loans are already near historic lows, hovering around 4.5 percent on the 30-year fixed. Today’s talk about the potential for QE3 pushed bond yields lower, which in turn keep mortgage rates low.

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Article source: http://www.cnbc.com/id/43744143?__source=RSS*blog*&par=RSS

Burlingame REALTOR® Mary Ann Teixeira Says Reduction in Conforming Loan Limits …

Tue, 05 Jul 2011 10:11:34 +0000

Burlingame, CA (Vocus/PRWEB) June 30, 2011

In 2008, Congress stepped in to adjust conforming loan limits from $417,000 to $729,750 in an effort to stimulate the economy by making more money available for home buyers and enticing people to buy. Since then Congress has extended them every year through September 30, 2011. As it stands, effective October 1, 2011 it will cost home buyers more to finance a loan exceeding $650,500. This will affect many houses on the San Francisco Peninsula market.

“We are quite possibly facing a roadblock to any glimmers of recovery if this set-back takes place,” said Mary Ann Teixeira, a Burlingame real estate professional. “Buyers would need to come up with larger down payments and be able to qualify for higher mortgage payments. All mortgages backed by Federal Housing Administration (FHA), Fannie Mae and Freddie Mac, known as government sponsored enterprises, (GSEs) would be affected.”

Bay Area real estate will be hit hard by the change in loan limits when the conforming loan adjusts down to $650,500. Because of the high cost of Bay Area housing, purchasing a home often requires a loan in excess of $650,500. Given that jumbo loans generally carry a higher interest rate, monthly payments would increase and further hamper the buying power of potential new home buyers. Additionally, with the burden of a higher monthly mortgage on a household, businesses and services in the communities with homeowners who have less expendable dollars will suffer.

According to a recent study conducted by the California Association of REALTORS®, under the new GSE loan limits would impact the borrowing power of a potential Bay Area home buyer by $104,250. Projecting this onto 2012 home sales, 10.7% of San Mateo County’s home sales would be rendered ineligible under the new lowered GSE loan limit. Other Bay Area counties affected are Marin (12.2%), Contra Costa (11.5%), San Francisco (9.9%), Monterey (8.8%), Santa Clara (7.8%), and Alameda (6. 3%).

For additional information about reasons to use a Bay Area real estate agent or San Francisco Bay Area Peninsula real estate and relocation, call Mary Ann Teixeira at (650) 241-0318, or visit her website at www.maryannt.com.

About Mary Ann Teixeira

Mary Ann Teixeira is a licensed REALTOR® with McGuire Real Estate in Burlingame, California who specializes in relocation services, homes for sale, and luxury homes. She is a seasoned buyer’s agent who serves the San Francisco Bay Area Peninsula communities of Atherton, Burlingame, Cupertino, Hillsborough, Los Altos, Los Altos Hills, Los Gatos, Menlo Park, Mountain View, Palo Alto, Portola Valley, Redwood City, San Carlos, San Jose, San Mateo, Santa Clara, and Woodside.

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For the original version on PRWeb visit: www.prweb.com/releases/prwebburlingame_real_estate/peninsula_realtor/prweb8616223.htm

Article source: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/06/30/prweb8616223.DTL

Burlingame REALTOR® Mary Ann Teixeira Says Housing Market on Peninsula Is …

Fri, 24 Jun 2011 19:08:31 +0000

Burlingame, CA (Vocus/PRWEB) June 24, 2011

Mary Ann Teixeira has been in the Peninsula real estate market for many years. As such, she has been affected by the local, state and national real estate and economic fluctuations of the last few years. Though it’s been a rough ride, she is starting to see more activity as low home prices and the threat of upcoming changes in lending standards are motivating people to buy or sell.

Real estate prices are relatively affordable, says Teixeira. According to the San Mateo County Association of Realtors sales statistics from the local MLS, the median home price in the City of San Mateo in April 2011 was down $25,000, or 4%, from the same time last year.

Impending changes to real estate lending policies are also affecting the market. As part of Congress’ 2008 stimulus package, jumbo loans were raised to $729,500, but this limit is set to revert back to $625,500 in September. “For those who need to sell a property, this may be the right time to do it,” said Teixeira. “There may be fewer potential buyers come fall.”

“Buyers are taking advantage of their increased buying power and low interest rates,” says Teixeira. “You can’t beat current interest rates, which are hovering at around 5%. And buyers who want to take advantage of jumbo loans are moving now to beat the looming changes coming this fall.”

For additional information about San Francisco Bay Area real estate and relocation, call Mary Ann Teixeira at (650) 241-0318, or visit her website at www.maryannt.com.

About Mary Ann Teixeira

Mary Ann Teixeira is a licensed REALTOR® with McGuire Real Estate in Burlingame, California who specializes in relocation services, homes for sale, and luxury homes. She is a seasoned buyer’s agent who serves the San Francisco Bay Area Peninsula communities of Atherton, Burlingame, Cupertino, Hillsborough, Los Altos, Los Altos Hills, Los Gatos, Menlo Park, Mountain View, Palo Alto, Portola Valley, Redwood City, San Carlos, San Jose, San Mateo, Santa Clara and Woodside.

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For the original version on PRWeb visit: www.prweb.com/releases/prwebreal-estate/burlingame/prweb8598362.htm

Article source: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/06/24/prweb8598362.DTL

San Francisco Home Sales at 3-Year Low

Tue, 17 May 2011 07:36:14 +0000

SAN DIEGO (DQNews) — The San Francisco Bay Area’s housing market lost traction in April, when sales slipped to a three-year low and the median sale price fell year-over-year for the seventh consecutive month.

There were also signs the market continues its long trek back to normalcy: The portion of homes bought with adjustable-rate and “jumbo” loans rose, while the share of sales involving foreclosures, investors and cash buyers fell, a real estate information service reported.

A total of 6,789 new and resale houses and condos sold in the nine-county Bay Area last month. That was down 3.7% from 7,051 in March and down 3.1% from 7,003 in April 2010, according to San Diego-based DataQuick.

On average, Bay Area home sales have risen 4.4% between March and April since 1988, when DataQuick’s statistics begin.

Last month’s sales were the lowest for an April since 2008, when 6,310 sold, and were the third-lowest on record. April sales have ranged from a low of 5,636 in 1995 to a high of 14,430 in 2004, while the average is 9,147. Last month’s sales tally was 25.8% below that average.

“April activity looks weak on the heels of March, which eked out the highest sales for that month in four years. But it’s also to be expected that sales and other statistics will behave more erratically these days. Part of the reason is that short sales are at relatively high levels, and they can take much longer to close escrow. Lenders can vary the pace at which they sell off distressed homes. What’s clear now is that 2011 is off to a slow start, but it’s a little soon to write off the rest of the year,” said John Walsh, DataQuick president.

“Higher job growth or lower home prices, coupled with low mortgage rates and rising consumer confidence, could still push sales well above today’s subpar level. Of course, everything will be tempered this year by the people who won’t buy until they’re convinced prices have hit rock bottom, and by those who can’t buy because they owe more on their existing homes than they’re worth.”

Article source: http://www.thestreet.com/story/11120821/1/san-francisco-home-sales-at-3-year-low.html