Real Estate Update

The National Association of Realtors® has reported that pending home sales increased in six of the last nine months. The Pending Home Sale Index is an indicator derived from signed contracts and showed a rise of 5.1% in March from February. The index also showed that it was 11.4% lower than March of 2010. This was caused by the high number of contract signings by people wanting to cash in on the home buyer tax credit.

NAR’s chief economist, Lawrence Yun feels that market activity has shown an irregular but palpable improvement. “Since reaching a cyclical bottom last June, pending home sales have posted an overall gain of 24 percent and demonstrate the market is recovering on its own,” he stated. “The index means modest near-term gains in existing-home sales are likely, which would be even stronger if tight mortgage lending criteria returned to normal, safe standards.”

“Based on the current uptrend with very favorable affordability conditions, rising apartment rents and ongoing job creation, existing-home sales should rise around 5 to 10 percent this year with sales growth of lower priced homes likely to outperform high-end homes. That means the price trend will reflect more homes sold in the lower price ranges,” he said.

Yun also added, “The good news is that recent home buyers are staying well within budget, leading to exceptionally low loan default rates among home buyers over the past two years.”

Real Estate Headlines, taken it with a grain of salt...

A recent Pending Home Sales Report stated that signed contracts on existing homes slipped in January for the second month in a row. Come to think of it, that may not be a huge surprise since not many people shop for homes during the holidays.

We should be somewhat cautious about buying into the doom & gloom and not erect barriers to our progress just because of a minor setback, like the one we had with last week's Pending Home Sales. Although The National Association of Realtors (NAR) records show fewer signed contracts on existing homes, the drop wasn't as severe as anticipated. NAR's chief economist stated: "We should not expect the recovery to be in a straight upward path--it will zigzag at times."

The most recent general forecast from NAR showed an interesting projection of that recovery. Property re-sales should grow 8.1% this year and an additional 5.2% in
2012. Median prices are expected to be static during 2011 and then increase over 3% next year. Sales of new homes are projected to go up about 5% this year, to over 55% for 2012. Median price will move up a bit in 2011, then up 3.5% next year.

As always bear in mind that this is a National survey and real estate and economies vary geographically. More soon on Ventura County real estate and California…

New Listing!

Ondulando Beauty

4 bedroom, 3 bath in Ventura hillside neighborhood offers quiet location and many upgrades. Remodeled baths, hardwood floors, dual pane windows and a resort-like backyard to relax in. For more info on this and other Ventura homes for sale, visit my web site at http://www.lynnkenton.com/

New Listing!

New Fraud Alert

Many homeowners may not know it, but once you've gotten a loan for your home purchase, that mortgage seldom stays with the same lender. (This is a normal procedure.) As you might expect, a new type of fraud is being played off of this.

In this new scam, someone claiming to be the new owner or servicer of the mortgage mails a letter to the homeowner and instructs the homeowner to now send their payments to a new address.

To avoid falling victim to this type of fraud, the Attorney General's Office is advising homeowners who receive a letter like this to contact the current mortgage servicer (not the number in the letter) to verify that the information in the letter is correct.

Homebuyers Workshop

The National Homebuyers Fund has just released grant funds (up to 3% of the purchase price) to be used for down payments. This isn't a loan and does not have to be repaid. With interest rates and property values at record lows, combined with a program like this, it makes the timing pretty sweet if you're thinking about buying a home right now.

With that in mind, Guild Mortgage and Ventura Property Shoppe will be hosting a Home Buyers Workshop. Information on this new program will be provided as well as the "ins and outs" of making an offer on a short pay or foreclosure (bank owned) home.

Since buying or selling a home is no doubt one of the most important investments one can make, it makes sense to have as much information as possible. James & Lisa Sherman attended a previous workshop and said "The real estate class that Lynn, Karen, and Linda taught was exceptionally helpful in getting my wife and I ready to buy a home. Their expertise and experience, in addition to their gregariousness, eased us into making the decision to finally buy our first home. Every step in the process was made clear and understandable with their guidance. I recommend their services to anyone looking for a home in Ventura County."

This is a free service to the community. The workshops will be held on the first Tuesday of the next three months at 711 Daily Drive, Suite 105, Camarillo, CA 93030.

February 1st, 6:30 PM
March 1st 6:30 PM
April 5th 6:30 PM

To reserve a seat contact Lynn Kenton @ 805-901-5444 or Linda Hall @ 805-208-8951

New Homebuyer Grant Program ( free $$$$)

This morning I heard about a new grant program through National Homebuyer’s Fund, Inc. designed to assist homebuyers in California. I’ve confirmed it with my trusted lender contacts. It could translate into around $12,000 give or take...

Here are the “nuts & bolts”:

*It’s used with a 30 year fixed rate loan.

*Can be used with conventional, FHA or VA loans.

*Can be up to 3% of the purchase price.

*The proceeds can be used for down payment &/or closing costs.

*There can be no cash back to the borrower from the Grant Fund proceeds.

*It must be for a primary residence.

*Maximum income for borrower in Ventura County is $104,040 per year.

*You do not need to be a first time home buyer.

*Minimum credit score of 620.

This is a great program- tell anyone you know about it. It’s a limited fund and will no doubt run dry in the next few months. This is a real deal and an opportunity to take advantage of. Contact me for more details!