HUD SUSPENDS RECENT MORTGAGE INSURANCE PREMIUMS REDUCTION

An hour after President Trump was sworn in Friday, the Department of Housing and Urban Development announced it suspended the recently initiated one-quarter percent reduction of Mortgage Insurance Premiums. Concern regarding the credit quality of FHA originated home loans has been expressed by many. The suspension of the one-quarter percent reduction should have a minimal effect on FHA loan origination volumes.

MID-JANUARY - SERIOUS BUYERS OUT THERE

A very successful agent in our office recently listed a home in the Upper Highland Oaks area of Arcadia. It appears this beautiful late 1950's built ranch style home  with 4 BR's 3 BA was listed at the lower end of the price pattern for this wonderful property. The marketing strategy worked! To date, twenty-four offers have been received. The agent definitely got the market's attention. IT IS MID- JANUARY AND THE BUYERS ARE OUT THERE.

HIGH HOME PRICES DRIVE PEOPLE OUT OF CALIFORNIA

By Kevin Smith, San Gabriel Valley Tribune  POSTED: 11/09/16

California’s warm weather, sunny beaches and world-class schools have lured people to the Golden State for decades but rising home prices are turning that equation around.

Data analysis firm CoreLogic says that for every home buyer coming into California another three are selling theirs homes, packing up and moving out.

The trend of out-migration was also noted in a trio of reports released earlier this year by Beacon Economics. Beacon noted that 625,000 more U.S. residents left California between 2007 and 2014 than moved into the state. The vast majority ended up in Texas, Oregon, Nevada, Arizona and Washington.

The search for more affordable housing is sending low and middle-income workers out of the state, while higher-wage workers continue to move in, which argues against the theory that high taxes are driving people away.“California has an employment boom with a housing problem,” Christopher Thornberg, a founding partner with Beacon, said the reports were released. “The state continues to offer great employment opportunities for all kinds of workers, but housing affordability and supply represent a significant problem.”

Recent figures from CoreLogic reveal how much home prices have risen over the past year. Azusa’s median home price for September was $449,250, up nearly 20 percent from the year-ago price of $375,000. But bigger year-over-year increases were seen in such cities as Foothill Ranch (26.9 percent), Westlake Village (25 percent), La Canada Flintridge (22.3 percent) and Chino Hills (20.4 percent), among others.

Mel Wilson, broker and owner of Mel Wilson & Associates Realtors in Northridge, said many people who are near retirement or living on a fixed income are looking for a less costly lifestyle. “I see that more in some areas of the baby boomer population,” he said. “As they retire they are trying to figure out how they can live but not outlive their money. If you are a boomer and have owned your home for 20 years or more you will have quite a bit of equity built up.”

Many baby boomers are moving to Nevada, Arizona, Idaho, Georgia or North Carolina where home prices are considerably lower. Still others are relocating to Texas. Home prices are cheaper there, he said, although property taxes are higher.

Wilson said high housing prices are also impacting younger Californians. “Some people in their early to late 20s are living with their parents after they get out of college because they’re saddled with so much student debt,” he said. “When they get to their mid to late 30s they’ll get help from their parents or grandparents with buying a home.” Wilson said California home prices have risen in part because of a lack of inventory.

SO. CAL HOMEOWNERSHIP - LOWEST

New census data show Los Angeles and Orange counties have the lowest homeownership rates in the nation. In the 2nd quarter, only 46.5 percent of local residents lived in a home they owned. The Los Angeles and Orange County region had the lowest homeownership rate in four out of the last five quarters among the 85 metropolitan areas tracked by the U.S. Census Bureau.

The lack of affordable housing drives these numbers. This lack of So. Cal. affordable housing has very negative implications for our regional and state economies. Area businesses have an ever increasing challenge attracting and retaining talent. Too many businesses are expanding or moving out of state to locals where  housing is more affordable. Housing affordability (reflecting the American Dream of Home Ownership) is high on the list of factors influencing high demand prospective employee employment decisions.

Looking from a more personal perspective, just think of the many So. Cal families and parents who sadly experience their young adult children (and grand children) moving out of state where housing is affordable and the American Dream is so much more attainable.

336 MAY AVENUE MONROVIA

SOLD OCTOBER 17, 2016      ASKING PRICE:  $650,000     SELLING PRICE $640,000

1056 ENCANTO DRIVE ARCADIA (LOWER RANCHO)

SOLD     AUGUST 5, 2016    Asking Price: $3,680,000    Sale Price $3,330,000

CLEVER REAL ESTATE SALE PROMOTION POST CARD

WISH I HAD THOUGHT OF THIS - Clever, humorous......