Elle Karimi

Economic update for the week ending June 27, 2015 Mortgage Rates higher than last week The 30 year fixed rate ended the week around 4.30% for loans up to $417,000, around 4.50% for loans between $417,000 and $625,500. The 30 year fixed rates on jumbo loans, loans over $625,500, are about 4.625%. The 15 year fixed rate loans are about 3.375% for loans up to $417,000, around 3.50% for loans between $417,000 and $625,500, and around 3.675% for loans over $625,500. The 5 Year...-ARM rates are around 3.25% 1 Year-ARM mortgages are around 2.75%. U.S. Consumer Confidence Rises The University of Michigan reported that their consumer sentiment index rose from 90.7 in May to 96.1 in June. This was the highest level since January when the rating of 98.1 shocked experts. That was the highest rating in more than a decade. Last June the index was 82.5. For the first 6 months of 2015 consumer sentiment has improved at the highest pace since 2004. This increase is important because it suggest that consumer spending, which accounts for a majority of the economy, will continue to increase. New home sales hit 7 year high The Commerce Department reported that new home sales in May jumped 2.2% from April to a seasonally adjusted annual rate of 546,000 units. This marked the highest level of new home sales in 7 years. New home builders said that fears of higher interest rates contributed to buyer demand, as buyers rushed to lock in rates before they increase further later in the year. U.S. home resales jump 5.1% - Prices continue to rise - The National Association of Realtors reported that sales of previously owned homes jumped 5.1% in May from April figures. This was a strong number which beat analysts’ expectations. One comment that was made by Lawrence Yun, the chief economist at NAR, was, Strong job growth for young adults and low down-payment programs are helping more young buyers enter the marketplace. The return of first time buyers in May is an encouraging sign. The median price also showed strength rising 7.9% from one year ago for the nation as a whole. The median price in the west grew 10.2% from a year earlier and 4.3% from April. Next Friday the Labor Department will release the June employment report. A high number will show that the economy is continuing to improve. An improving economy puts pressure on the Federal Reserve to raise its benchmark rate which has been near zero since 2008 in an effort to lift the nation out of recession. There has not been an interest rate hike since 2006. Expect mortgage rates to rise with a high number and to fall with a low number of jobs created.

Economic Update Economic update for the week ending April 18, 2015 Stocks sell off on Friday - First quarter corporate profits, which experts felt would be down, were better than expected as they began to be reported, which had stocks flat most of the week. Unfortunately, on Friday some disappointing results came out from several big companies, which included American Express. There was also fear that Greece could default on its debt and abandon the Euro when it was revealed...Continue reading

Economic update for the week ending June 27, 2015 Mortgage Rates higher than last week The 30 year fixed rate ended the week around 4.30% for loans up to $417,000, around 4.50% for loans between $417,000 and $625,500. The 30 year fixed rates on jumbo loans, loans over $625,500, are about 4.625%. The 15 year fixed rate loans are about 3.375% for loans up to $417,000, around 3.50% for loans between $417,000 and $625,500, and around 3.675% for loans over $625,500. The 5 Year...-ARM rates are around 3.25% 1 Year-ARM mortgages are around 2.75%. U.S. Consumer Confidence Rises The University of Michigan reported that their consumer sentiment index rose from 90.7 in May to 96.1 in June. This was the highest level since January when the rating of 98.1 shocked experts. That was the highest rating in more than a decade. Last June the index was 82.5. For the first 6 months of 2015 consumer sentiment has improved at the highest pace since 2004. This increase is important because it suggest that consumer spending, which accounts for a majority of the economy, will continue to increase. New home sales hit 7 year high The Commerce Department reported that new home sales in May jumped 2.2% from April to a seasonally adjusted annual rate of 546,000 units. This marked the highest level of new home sales in 7 years. New home builders said that fears of higher interest rates contributed to buyer demand, as buyers rushed to lock in rates before they increase further later in the year. U.S. home resales jump 5.1% - Prices continue to rise - The National Association of Realtors reported that sales of previously owned homes jumped 5.1% in May from April figures. This was a strong number which beat analysts’ expectations. One comment that was made by Lawrence Yun, the chief economist at NAR, was, Strong job growth for young adults and low down-payment programs are helping more young buyers enter the marketplace. The return of first time buyers in May is an encouraging sign. The median price also showed strength rising 7.9% from one year ago for the nation as a whole. The median price in the west grew 10.2% from a year earlier and 4.3% from April. Next Friday the Labor Department will release the June employment report. A high number will show that the economy is continuing to improve. An improving economy puts pressure on the Federal Reserve to raise its benchmark rate which has been near zero since 2008 in an effort to lift the nation out of recession. There has not been an interest rate hike since 2006. Expect mortgage rates to rise with a high number and to fall with a low number of jobs created.

Economic Update Economic update for the week ending April 18, 2015 Stocks sell off on Friday - First quarter corporate profits, which experts felt would be down, were better than expected as they began to be reported, which had stocks flat most of the week. Unfortunately, on Friday some disappointing results came out from several big companies, which included American Express. There was also fear that Greece could default on its debt and abandon the Euro when it was revealed...Continue reading

Check out this article by the Wall Street Journal, it discusses where the luxury home market is going! #realestate #homes #luxury #estates #marketnews #homesalesnow

Just Sold, $2,230,000 SOARING CEILINGS WITH GIANT SKYLIGHTS PROVIDE A DRAMATIC GREETING AS YOU ENTER 658 N EDINBURGH. THE DESIGNER OASIS BOASTS 3 BEDROOMS, 2.5 BATHROOMS, POOL, SPA WITH WATERFALL, CUSTOM CABINETRY, BUILT-IN BARBECUE, OUTDOOR SHOWER, AND CABANA / FLEX SPACE. THIS ARCHITECTURAL GEM FEATURES ALL TOP-OF-THE-LINE FINISHES THAT ENVELOP ONE AS SOON AS THEY'RE FORTUNATE ENOUGH TO STEP FOOT INSIDE. CASE IN POINT, 'TIS A TRULY "SMART HOME" THAT ALLOWS ONE TO CONTROL AL...L OF ITS DYNAMIC FUNCTIONS FROM THE TOUCH OF THE WALL-MOUNTED IPAD OR ANY SMART PHONE ON-THE-GO. STUNNING 20-FT. FLEETWOOD POCKET DOORS ARE MOTOR-OPERATED, TO PROVIDE OPTIMAL INDOOR/OUTDOOR LIVING FROM THE PUSH OF A BUTTON OR SWIPE OF A TOUCH SCREEN. NEST THERMOSTAT, HD CAMERAS, SONOS SURROUND SOUND MUSIC SYSTEM, AND 70" FLAT SCREEN TELEVISION CHECK OFF THE REST OF ANY DISCERNING BUYERS WANTS AND NEEDS. FANTASTIC CENTRAL LOCATION CLOSE TO ALL THE SHOPS AND RESTAURANTS ON MELROSE. See more

Economic update for the week ending February 13, 2015 Stock markets rebound and make up all loses for the year in the last two weeks and more! - The S&P closed at a record high. The DOW broke 18,000 for the first time since December and is approaching all time highs. The Nasdaq closed at a 15 year high. News this week focused on improving conditions in Europe, and rebounding oil prices. The week began with markets rising on a Greek debt deal. A cease fire in Ukraine which s...Continue reading

Despite a tepid year, the California housing market stayed in line with 2014 predictions and hopefully set the pace for a better 2015, according to PropertyRadar’s December Real Property Report. Single-family home and condominium sales increased 7% to 27,770 units, up from 25,964 in November, but down 11.4% from 31,340 in December 2013. Total sales for the entire year fell 11.7% from 2013 and were the lowest since 2007. As we predicted early in 2014, sales volume stayed near... 7-year lows throughout 2014 because prices rose too far too fast in 2012 and 2013, said Madeline Schnapp, director of economic research for PropertyRadar. However, Schnapp added that although prices are likely still too high, 2015 may fare slightly better thanks to mortgage interest rates trending lower and loosening lending standards. Median home prices have been stagnant for most of the second half of 2014, with December no different. The December median price of a home was nearly unchanged at $385,000, down $2,500, or 0.6% from $387,500 in November. The number of homeowners in a negative equity position fell 1.1% to 987,000 in December, from 998,000 in November. In December, approximately 11.4% of California homeowners owed more than their home was worth, down from 1.4 million, a decline of nearly 28.5% from a year ago. The California real estate market continues to show steady improvement, said Schnapp. Nearly one in three homeowners with negative equity in 2014 saw their finances improve significantly as they transitioned from negative to positive equity this past year. Many homeowners are now free to participate in the real estate market or refinance their homes. In addition, foreclosure starts, notices of default, increased 8.1% between November and December but are down 14.3% from December 2013. The monthly increase is likely due to increased volatility around the holiday season. Foreclosure sales gained 6.9% for the month but were down 21.6% for the year.

How Much You Should Earn to Buy a Home Daily Real Estate News | Tuesday, December 30, 2014 How much money do you need to make in order to afford a home?... Using data from the National Association of REALTORS, mortgage site HSH.com pinpointed the minimum salary required to pay for the principal loan amount, interest, taxes, and insurance payments on a median-priced home in some of the largest metro areas in the country. Nationwide, buyers would need to earn about $51,247 to afford a median-priced home of $217,300, assuming a 20 percent down payment and a 4.37 percent interest rate, according to HSH.com.

Winter Is Best Time to Sell, Study Shows The housing market doesn’t hibernate in the winter. Sellers who list and buyers who buy often find the winter season the most advantageous time to make a move in real estate, according to a new study by the real estate brokerage Redfin. The winter season officially takes place between Dec. 21 and March 20, and real estate professionals should be ready for a season that often brings in more focused and active sellers and buyers. In an ...update to a two-year analysis it completed last year, Redfin researchers studied nationwide home listings, sales prices, and time-on-market data from 2010 through October 2014. The study found that February is historically the best month to list, with an average of 66 percent of homes listed then selling within 90 days, according to Redfin’s research. Even in cold weather cities such as Boston and Chicago researchers found that home sellers were better off listing their homes in the winter than during other seasons. The winter tends to net sellers’ more than their asking price during the months of December, January, February, and March than listings from June through November. Listing during those four winter months has resulted in higher percentages of above-asking-price sales than listing during any months, other than April and May. Redfin researchers found that in 2012 December listings were producing the highest percentage of above-asking sales for the entire year at 17 percent. Researchers say the winter market is less competitive for sellers since many people tend to wait until the spring to list. The smaller inventory of active listings help sellers get more attention from buyers on their properties. Also, many large corporations often transfer employees or hire new ones early in the year, creating opportunities for winter sellers from very motivated purchasers. Homes that are priced right and show well can sell any time of the year, says Nela Richardson, chief economist for Redfin. Winter buyers tend to be serious buyers... Most people are not window-shopping in December and January, like they do in the spring months, Richardson adds. Sellers shouldn’t worry about the holidays hampering their chances either. A 2011 study conducted by realtor.com found that 60 percent of real estate professionals advise their sellers to list a home during the holidays because they believe it’s an opportune time to sell. Nearly 80 percent of the real estate professionals surveyed said that more serious buyers emerge during the holidays, and 61 percent say less competition from other properties makes it an ideal time to sell. As for buyers, they may find winter a good time to make a move too. Sellers often are more flexible about negotiations over prices and terms than they would in the spring, real estate professionals say.

Economic update December 13, 2014 Stock markets post their biggest weekly decline in two years! The US stock markets posted its largest weekly loss in two years ending seven straight weeks of gains. The International Energy Committee announced that oil demand is far below what was earlier estimated leading experts to believe that while the U.S. Economy appears strong the world wide economy may be weaker that expected. China reported that factory output fell which was ...Continue reading

Rush to Buy Homes During the Holidays? Home owners may be doubtful that the months of November and December will bring about a home sale. After all, aren’t potential buyers sidetracked with the holidays and likelier to postpone their house hunt due to bad weather and shorter days? Winter Sales... Tips for Selling a Home in the Winter Making the Most of Your Buyers' Winter Search Are the Holidays a Good Time to Sell? Cold Weather, Warm Home The Dos and Don'ts of Holiday Listings But sometimes the off-peak time to sell can actually be the perfect moment for sellers. Several studies show that, on average, homes listed in November and December are more likely to sell, sell more quickly, and more closely approach the asking price, according to an article at Forbes.com. A 2011 study conducted by realtor.com found that 60 percent of real estate professionals advise their sellers to list a home during the holidays because they believe it’s an opportune time to sell. Nearly 80 percent of the real estate professionals surveyed said that more serious buyers emerge during the holidays, and 61 percent say less competition from other properties makes it an ideal time to sell. Thanksgiving is particularly good, the article notes. Buyers may have held out through the busy summer months hoping to find a better deal, but now they may be searching with increased urgency. Some buyers may be motivated to close before the end of the year for tax purposes. They can purchase a home late in the year to deduct home purchase costs on their taxes, such as points, interest, and property taxes. Also, certain sellers who sold their homes during the summer season may be facing a capital gains tax. They may be highly motivated to buy in November to avoid paying capital gains tax (since closing on the purchase of another house is required within 180 days)