New and Existing

Given the scant listings, another competitive spring buying season is likely. Last month, there was a smaller supply of homes for sale than a year earlier in every Southern California county, data from the California Association of Realtors show. Real estate agents say the shortage has people crowding open houses. As sunlit days get longer going into early spring, consumer confidence is still coming out of the shadows as the dull numbers in existing home sales for February don’t have experts fried. In fact, according to Housingwire.com, “Experts predict the combination of pent-up housing demand and historically high consumer confidence will increase existing home sales in the months ahead.” Locally, in sunny Southern California, a hike in home prices resulted in what the Los Angeles Times is hailing, “the largest increase in more than a year, as buyers rushed to outbid one another for a meager selection of homes for sale.” Yet, although the umbrella of high home prices is upon us at home, the housing forecast is currently clear of showers as, with a vibrant outlook, experts like Svenja Gudell, chief economist for Zillow, maintains, “It’s important not to read too deeply into the one-month dip in existing home sales in February; the housing market is still running quite hot, and the next few months look to be as competitive and fast-moving as ever.”

On a broader spectrum, the Wall Street Journal sheds light on the glaring issue of new home sales by stating, "In a sign that builders are responding to demand, the number of homes for sale at the end of February rose to the highest level since July 2009." Nationally, defying all gloomy expectations, "U.S. new home sales increased sharply for the second consecutive month in February, an indication that growing demand and a pickup in construction activity could propel a strong spring selling season for this segment of the market," clarifies real estate reporter, Laura Kusisto. And, as temperatures rise, "Economists expect new-home sales to continue to increase this year as builders step up construction of single-family homes and more first-time buyers enter the starter-home market," as the Wall Street Journal connects the rosy housing outlook to such conditions as a "strengthening economy and unseasonably warm weather". Even though the hazy days of winter hold on tight, the near future for housing is certainly looking bright. Courtesy of JMJ Financial Group

If you are ready to buy, sell, or refinance, we are here to help with your next mortgage. 

Todd Burns - NMLS 254981
JMJ Financial Group
949-547-3557
WEBSITE

The Balancing Act

Rising home values are more important because the value of houses far exceeds the value of stocks held by individuals. Even so, the homeownership rate hovers near a five-decade low and well below its pre-crisis peak. This explains why the so-called wealth effect isn’t having as much of an impact on overall consumer spending and economic growth as it used to.

The peaking consumer confidence in housing recently reported remains in spite of today’s news doused in rumors of rising mortgage rates. In reality, although Americans are richer than ever, they’re not quite feeling that way while, according to The Wall Street Journal, in 2016, “As of the third quarter, American Households had roughly $105 trillion in assets and $15 trillion of debt. And as home values kept rising and stock prices surged following the election, it likely only increased.” Some uncertainties in the economy caused mortgage rates to fall at the beginning of this month and, subsequently, Sean Becketti, Freddie Mac chief economist, was quoted as saying, “With the housing market on the verge of the spring homebuying season, this is good news in an environment where historically low mortgage rates will help offset the pace of house price growth and lack of for-sale inventory in many markets,” as reported by The Washington Post. Presently though, directly following the fall, “Mortgage rates followed the 10-year Treasury yield for the first time in 2017 with a substantial increase from last week,” reports Housingwire.com.

Even with this flux and an air of suspicion that the Federal Reserve is gearing up for a March rate hike, experts are able to find the bright side. With this, Housingwire.com offers an analysis of the latest Mortgage Monitor Report, just released by Black Knight Financial Services, claiming, "The nation's housing market is looking up with an annual increase of 17% in mortgage originations in 2016." In addition, sentiments from the National Association Of Realtors are positive with, "Buyer demand is much stronger than supply at the moment and the economy and job growth are continuing to support the housing market." Thankfully, today's housing market is still being referred to as "a virtuous cycle" by MarketWatch, reiterating that, "Home equity has recovered, mortgage rates remain low enough to be manageable, and high rents make homeownership attractive." In a year already full of surprises, conditions are weighing out as the market steadily finds some balance in the midst of the first quarter act. 

Courtesy of JMJ Financial Group

If you are ready to buy, sell, or refinance, we are here to help with your next mortgage. 

Todd Burns - NMLS 254981
JMJ Financial Group
949-547-3557
WEBSITE

All Aboard

January’s version of Fannie Mae’s Home Purchase Sentiment Index showed that consumers’ confidence in housing improved for the first time in five months, and February’s survey saw consumers’ sentiments improving even more.

Good vibes are rocketing through the housing market going into the hot spring selling season and buyers are ready for takeoff. January’s runway of consumer confidence has resulted in an ongoing ascent as, “Fannie Mae’s latest Home Purchase Sentiment Index (HPSI) shows that consumer confidence in housing hit an all-time high in February, continuing a climb in confidence that began in January,” as reported by Housingwire.com, also citing that the index “increased by 5.6 percentage points in February to 88.3, setting an new all-time high”. Senior vice president and chief economist at Fannie Mae, Doug Duncan, claims, “The latest post-election surge in optimism puts the HPSI at its highest level since its starting point in 2011.” Experts across the housing horizon seem to agree as CNBC reports, “Both buyers and sellers alike are feeling very good about the housing market this spring, even as home values hit new highs and mortgage rates move up.” So, despite some sluggish market conditions including lingering constrained housing affordability, prospective home buyers are definitely heeding the call to jump on board.

And in the waiting line skyward, the housing force is being fueled by other positive increases. Real estate reporter, Ben Lane, points to the recent HPSI with, "Additionally, consumers also reported increased confidence about not losing their jobs," which, in part, caused an 11 percentage point rise in the net share of Americans who said that now is a goo time to by and a 7 percentage point rise in those who believe that now is a good time to sell, states Housingwire.com. In fact, CNBC reveals that in general, "More Americans are also reporting slightly higher household income, and a growing number expect home values to rise." Everything considered, all signals point to a first class spring season with experts like, Frank Martell, CEO of CoreLogic, plainly stating, "Home prices continue to climb across the nation, and the spring homebuying season is shaping up to be one of the strongest in recent memory." All turbulence aside, overall economic strengths are making for smooth air and a solid lift off for consumer morale this spring. 

If you need a mortgage for a purchase or refinance, we would love the opportunity to work on your behalf. 

Todd Burns NMLS 254981
JMJ Financial Group
949-547-3557
WEBSITE