Mission Viejo and Orange County, California Real Estate Blog

February existing home sales rise by 5.1 percent

WASHINGTON – Sales of existing homes rose from January to February in an unexpected boost for the slumping U.S housing market as buyers took advantage of deep discounts on foreclosures.

The National Association of Realtors said Monday that sales of existing homes grew 5.1 percent to an annual rate of 4.72 million last month, from 4.49 million units in January. It was the largest sales jump since July 2003.

Sales had been expected to fall to an annual pace of 4.45 million units, according to Thomson Reuters.

The median sales price plunged to $165,400, down 15.5 percent from $195,800 a year earlier. That was the second-largest drop on record.

February's median sales price was up slightly from January, which recorded the lowest median price since September 2002. Prices are down about 28 percent from their peak in July 2006.

In contrast with the housing boom, when buyers took out ever-riskier loans and maxed out their home equity lines, "homebuyers are not over stretching" said Lawrence Yun, the Realtors' chief economist. "They want to stay within their budget."

By summertime, sales are expected to get a boost from a $8,000 tax credit for new home buyers included in the economic stimulus package signed by President Barack Obama last month.

The number of unsold homes on the market last month rose 5.2 percent to 3.8 million, a typical increase for the winter months. At February's sales pace, it would take 9.7 months to rid the market of all of those properties, unchanged from a month earlier.

The bursting of the U.S. housing bubble has caused foreclosures to swamp the market — especially in particularly distressed states like California, Florida, Nevada and Arizona.

About 45 percent of sales nationwide are foreclosures or other distressed property sales, according to the Realtors group. Those properties typically sell for about 20 percent less than non-distressed homes.

That's great news for buyers, who are paying the most attractive prices in years. Plus, interest rates have sunk to historic lows.

The Federal Reserve last week moved to reduce already low rates by printing $1.2 trillion and pumping it into the economy through the purchases of mortgage-backed securities and Treasury debt.

The central bank also will double its purchases of debt issued by Fannie Mae and Freddie Mac to $200 billion.

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Update on Mission Viejo Bank Owned Single Family Detached Homes for March 23, 2009

9 REOs currently for sale ranging in price from $529,900 - $665,000.

There are currently 11 Bank Owned Properties in Escrow.

Call Gail @ 949 422-4343 for a list of Bank Owned Homes for sale in Mission Viejo and surrounding cities in South Orange County, Ca.

Visit www.viphousesearch.com to search for homes.

On the heels of positive existing-home sales numbers, the Federal Housing Finance Agency reports that U.S. home prices jumped 1.7% in January. Is it too soon to call this a turnaround?

By MarketWatch_ MSN Real Estate, http://realestate.msn.com/article.aspx?cp-documentid=18758990&gt1=35000

March 25, 2009

more from MarketWatch.com

U.S. home prices rose 1.7% in January compared with December, the Federal Housing Finance Agency reported Tuesday. It was the first monthly increase in a year.

Home prices were down 6.3% for the past year and were down 9.6% from the peak in April 2006, the FHFA said. In December, the year-over-year decline was 8.8%.

Falling home values have helped plunge the global financial system into chaos because of mortgage-backed securities. Homeowners have lost trillions of dollars of wealth.

The "unexpected rise" in January was partially due to stronger sales in some markets, the FHFA said. The FHFA index attempts to control for such changes in sales patterns, but the adjustment is not perfect, the agency said. The agency warned that its estimate was uncertain and subject to large revisions.

December's index, originally reported as a 0.1% increase, was revised down to a 0.2% decline.

"While this is certainly good news, in our view it is too soon to call a turnaround in the cycle," wrote Charmaine Buskas, a senior economist for TD Securities. "We will have to see several consecutive months of improved prices before a true turnaround can be called, and a significant inventory overhang remains."

Prices rose or were flat in eight of nine regions in January; only the Pacific states registered a decline, down 0.9%.

Prices rose 3.9% in the East North Central region, which includes most of the Great Lakes states. Prices rose 3.6% in the South Atlantic region (from Delaware to Florida).

In the past year, prices were down in all nine regions, led by the Pacific with a 21.1% decline. The smallest price decline was the 0.4% drop in the West South Central (which includes Texas, Oklahoma, Arkansas and Louisiana).

The FHFA index tracks the whole country, relying on data from Fannie Mae and Freddie Mac. It has a broad geographic reach, but it missed most of purchases financed by subprime loans earlier in the decade because those loans were not funded by or guaranteed by Fannie or Freddie.

The Case-Shiller index, a separate price index that has less geographic reach but better coverage of the bubble mortgages, shows a much larger price decline of 18.6% in 2008 and a drop of 27% from the peak. The Case-Shiller index for January will be released next Tuesday.

Call Gail for information of Bank Owned homes that are still available. Call 949 422-4343 or visit www.viphousesearch.com.

Mission Viejo foreclosed homes

Bank Owned condos, townhomes, and single family detached homes

16 currently available for sale.

30 in Escrow

19 Sold in the past 30 days.

Call Gail @ 949 422-4343 for a free list of Bank owned homes.

Visit; www.viphousesearch.com

FTC Warns Consumers About Economic Stimulus Scams

The FTC is warning consumers that they could get stung by an economic stimulus scam.  The scams come in different forms. 

Right now, on the Web and in e-mail, scammers are telling consumers they can help them qualify for a payment from President Obama's economic stimulus package.  All they have to do is provide a little information or a small payment.

E-mail messages may ask for bank account information so that the operators can deposit consumers' share of the stimulus directly into their bank account.  Instead, the scammers drain consumers' accounts of money and disappear.  Or bogus e-mail may appear to be from government agencies and ask for information to "verify" that you qualify for a payment.  The scammers use that information to commit identity theft.  Some e-mail scams don't ask for information, but provide links to find out how to qualify for funds.  By clicking on the links, consumers have downloaded malicious software or spyware that can be used to make them a victim of identity theft.  

"Web sites may advertise that they can help you get money from the stimulus fund.  Many use deceptive names or images of  President Obama and Vice President Biden to suggest they are legitimate.  They're not," says Eileen Harrington, Acting Director of the FTC's Bureau of Consumer Protection.  "Don't fall for it.  If you do, you'll get scammed."

Some sites suggest that for a small sum of money - as little as $1.99 in some cases - consumers can get a list of economic stimulus grants they can apply for.  But two things can happen: the number of the credit card the consumer uses to pay the fee can fall into the hands of scam artists, or the $1.99 can be the down payment on a "negative option" agreement that may cost hundreds or thousands of dollars if the consumer does not cancel.  

"Consumers who may already have fallen for these scams should carefully check their credit card bills for unauthorized charges and report the scam to the FTC," Harrington said. 

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,500 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics.

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