Norris Bruce
Aug 27, 2014

Homes in California Are the Least Affordable Despite Rising Home Prices

 

 

 


Today’s News Synopsis:

The Mortgage Bankers Association reported a 2.8% increase in mortgage applications from last week in their latest Mortgage Applications Survey.  Foreclosures decreased 34.4% year-over-year and stands at 640,000 compared to 976,000 last year.  Homes in California, specifically Los Angeles and Orange County, are the least affordable despite a strong increase in home prices.

In The News:

Mortgage Professional America – “JPMorgan attacked by Russian computer hackers” (8-27-14)

“JPMorgan and at least one other bank have been attacked by Russian computer hackers, according to a Bloomberg report.”

DS News – “Secondary Market, Decreased Sales Fuel Freddie Mac Portfolio Growth” (8-27-14)

“Boosted by an increase in secondary market purchases and a decline in sales, Freddie Mac’s portfolio grew for the first time this year in July.”

Mortgage Bankers Association“Mortgage Applications Increase in Latest MBA Weekly Survey” (8-27-14)

“Mortgage applications increased 2.8 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending August 22, 2014.”

Housing Wire “Vacancies drop again in Invitation Homes rental securitizations” (8-27-14)

“The vacancy rate in the properties that make up Invitation Homes’ two REO-to-rental securitizations continued to decrease in July, according to a new report from Morningstar.”

OC Housing News – “Coastal California housing least affordable in US” (8-27-14)

“Despite the rapid home price increases from March 2012 to July 2013, I’ve consistently maintained we are not in a new bubble — at least not yet.  The housing market reports I publish each month compare the cost of owning real estate to the cost of renting it, and as long as these two alternatives for acquiring homes is in balance, I consider the market affordable.”

DS News “Foreclosure Inventory Down Nearly 35 Percent Year-Over-Year in July” (8-27-14)

“Foreclosure activity was down all over the nation in July, particularly in the area of foreclosure inventory – homes that are in any stage of the foreclosure process – where there was a 34.4 percent drop from July 2013, according to CoreLogic’s July 2014 National Foreclosure Report released on August 27.”

Press Enterprise – “Economy: Job fairs make a comeback” (8-27-14)

“Seeing the real estate industry well into its recovery is quite a comfort after the tribulation of recent years. Comfort can be drawn from scenes around the area showing the real estate industry is well in its recovery mode.”

Bloomberg “Paramount Group Files for REIT IPO Poised to Be Largest” (8-27-14)

“Paramount Group Inc., a U.S. office landlord, filed for an initial public offering that is poised to be the largest ever for a real estate investment trust.”

 

Hard Money Loan Closed

San Marcos, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $235,000 on a 2 bedroom, 2 bathroom home appraised for $365,000.

San Marcos Hard Money Loan closed by the Norris Group

 

Bruce Norris of The Norris Group will be speaking at the SRC YPN Lunch & Learn on Tuesday, September 16, 2014.

Bruce Norris of The Norris Group will be presenting Secrets To Becoming Wealthy with Robert Hall and Associates on Tuesday, September 16, 2014.

Bruce Norris of The Norris Group will be presenting his California Real Estate Market Update with Paramount Club Market on Wednesday, September 17, 2014.

Bruce Norris of The Norris Group will be presenting Secrets To Becoming Wealthy with InvestClub for Women on Wednesday, September 17, 2014.

Bruce Norris of The Norris Group will be presenting Secrets To Becoming Wealthy with InvestClub for Women in Cerritos on Thursday, September 18, 2014.

 

Looking Back:

Home prices continued to show signs of increase according to the latest S&P/Case-Shiller Index.  Prices increased by 12.1% in 20 of the largest cities in the nation in June.  Home sales also increased the previous month by 3% month-over-month and 17.6% year-over-year.  In the meantime, mortgage delinquencies continued to show signs of decrease both by 3.96% month-over-month and 8.76% year-over-year.

 

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

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