Lower prices and low interest rates help lead to a third-quarter increase in those who can afford a home at the statewide median to 52%. This is up from 51% in the previous quarter.
Last Thursday the California Assn. of Realtors reported that the portion of households that could afford a home priced at the statewide median of $292,120 rose to 52%, up from 51% in the previous quarter.
Beth L. Peerce, president of the group, said that one problem potential home buyers could face is tight credit. Many first-time buyers don’t qualify for a loan.
Analysts have noted that banks have tightened their loan criteria since the housing crash. But it was those loose lending standards that caused the real estate bubble in the first place, so many other analysts argue that more carefully scrutinizing borrowers is appropriate.
The federal government has been providing enormous support to the mortgage market through loans backed by the Federal Housing Administration, although it has recently taken steps to scale back that support.
In California, potential buyers needed to earn at least $61,530 a year per household to afford a home at the third quarter’s median price, the Realtors group said. The median is the point at which half the homes in the state sold for more and half sold for less.
The real estate group calculated the monthly payment for a mortgage on such a home to be $1,540, including taxes and insurance, and assuming a 20% down payment and a 4.63% interest rate.
The CALIFORNIA ASSOCIATION OF REALTORS® is reporting that California’s home sales posted an increase from both the previous month and previous year in August and that the median home price rose to its highest level this year.
Closed escrow sales of existing, single-family detached homes in California rose to a seasonally adjusted 497,390 units in August, up 8.6 percent from a revised 457,930 in July, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. August home sales were up 10.2 percent from the revised 451,520 units sold during the like period a year ago. The statewide sales figure represents what would be the total number of homes sold during 2011 if sales maintained the August pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
The report further states that August’s median price marked the highest since December 2010, signifying that prices may be stabilizing in some market segments, as investors and first-time buyers continue to see value and opportunity in the market.
The August statewide median price of an existing, single-family detached home sold in California was $297,060, up 1 percent from a revised $294,050 in July, but down 7.4 percent from the $320,860 median price recorded for August 2010.
Other aspects of C.A.R.’s resale housing report for August 2011 include:
- The Unsold Inventory Index for existing, single-family detached homes was 5 months in August, down from 5.5 months in July and down from a revised 5.8 months in August 2010. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.
- Thirty-year fixed-mortgage interest rates averaged 4.27 percent during August 2011, down from 4.43 percent in August 2010, according to Freddie Mac. Adjustable-mortgage interest rates averaged 2.93 percent in July 2011, compared with 3.53 percent in August 2010.
- The median number of days it took to sell a single-family home was 52.7 days in August 2011, compared with 45.5 days for the same period a year ago.
The Santa Clara County District Attorney’s Office is warning homeowners about foreclosure and loan modification fraud.
If you are facing foreclosure, the DA’s Office is taking action to help. Recently, the DA’s Office prosecuted and convicted two defendants for running a business that promised homeowners behind on their mortgages that the homeowner could get their mortgage terms changed. These con artists convinced scared homeowners to stop speaking with their lender and instead pay the defendants an advance fee. With the help of the San Jose Police Department, the defendants’ business was shut down and they were sentenced to several years in state prison and ordered to pay back the victim homeowners.
The “Con Artists” violated the Foreclosure Consultants Act. It is a crime for anyone, even an attorney or real estate agent, to collect advance fees to perform loan modification services on a home mortgage. Instead, use a HUD-certified foreclosure counselor. Find one by calling the Santa Clara County District Attorney’s Foreclosure Help Hotline at (408 ) 794-1242.
The District Attorney’s Office also sends a letter to most homeowners whose home gets a notice of foreclosure, officially called a Recorded Notice of Default. In the letter, the DA’s Office tells you about the Foreclosure Help Hotline and the key points of the Foreclosure Consultants Act.
You can get more information from the DA’s Office by leaving a message on the District Attorney’s Real Estate and Foreclosure Fraud Hotline at(408) 792-2879.
San Jose, 95120 Summary
The median sales price for homes in ZIP code 95120 for May 11 to Jul 11 was $860,000. This represents an increase of 4.9%, or $40,000, compared to the prior quarter and a decrease of 0.3% compared to the prior year. Sales prices have depreciated 15.9% over the last 5 years in 95120, San Jose. The median sales price of $860,000 for 95120 is 115.00% higher than the median sales price for San Jose CA. Average listing price for homes on Trulia in ZIP code 95120 was $1,040,224 for the week ending Aug 24, which represents an increase of 1.3%, or $13,830 compared to the prior week and an increase of 0.7%, or $7,394, compared to the week ending Aug 03. Average price per square foot for homes in 95120 was $399 in the most recent quarter, which is 38.06% higher than the average price per square foot for homes in San Jose.
