Up to Date Real Estate News from the Experts in Urban Living, April 2012

Up to Date Real Estate News from the Experts in Urban Living April, 2012

Pending Home Sales Rise to 22-Month High!

Pending Home Sales, The Sousse Group, Luxury Irvine Condos, Luxury Homes Newport BeachThe housing market appears headed for a strong spring season. After a brief setback in December, the Pending Home Sales Index resumed its climb in January, posting a 2 percent gain over the month prior. The data puts pressure on Orange County home buyers. This is because a “pending home” is a home that’s under contract to sell, but has not yet sold. It’s tracked by the National Association of REALTORS® and, among all housing statistics, it’s the only one that’s “forward-looking”.

The Pending Home Sales Index is important to home buyers throughout California because 80% of homes under contract to sell close within 60 days of contract. In this way, the Pending Home Sales Index forecasts the housing market 1-2 months into the future. This is very different from how NAR’s Existing Home Sales report works; or, how the Census Bureau’s New Home Sales report works. These two metrics tell us what’s already happened in housing. By contrast, the Pending Home Sales Index tells us what’s coming next.

January’s Pending Home Sales Index reading lifts the monthly metric to its highest level since April 2010 — the month during which the 2010 federal home buyer tax credit expired — foreshadowing a strong housing market through March and April 2012, at least. This should not be news, of course. The nation’s home builders have said “foot traffic” is rising and home supplies are scarce nationwide. The only wild-card for housing is the high contract cancellation rate. As compared to last January when just 9 percent of home purchase contracts “failed”, this January saw 33 percent of contracts fail. High failure rates undermine the Pending Home Sales Index’s viability as a forward-looking housing market indicator.

Despite contract failures, though, the combination of low mortgage rates and low home prices is enticing to today’s home buyers. Expect home sales to climb in the coming weeks which will lead to a strong spring season for housing.

JUST LISTED – 3260 Watermarke Pl, $488,888

3260 Watermarke, The Sousse Group, Luxury Irvine Condos, Luxury Homes Newport Beach

JUST LISTED 3260 Watermarke, $ 488,888

Beautiful Westcliff model with view of the San Joaquin Nature Preserve and Meditation Garden! . Soothing breeze from the private balcony opening onto expansive view, perfect for entertaining. Home includes upgraded carpet in living room and bedrooms, Travertine floor, granite counters in kitchen and bathroom, stainless steel appliances, crown molding, custom paint, and window shutters throughout. Experience a sophisticated lifestyle in one of the best condominiums Experience a sophisticated lifestyle in one of the best condominiums in Orange County! The Watermarke Community provides you with a bounty of amenities such as a concierge service, fitness center, movie viewing room, pools, spas, basketball and tennis courts

Financial Update by Maurice

Rates came down a touch this week with the 10 year Treasury Yield easing off a bit from last Friday.

We have had overwhelming requests for the HARP II loans that FNMA and FHLMC now have for borrowers with limited equity. The program has been somewhat challenging as the agencies state they are unlimited loan to values, but, the banks have restricted the loan to values to 150% for owner occupied and 105% for investor properties. It has not been quite as glorious as promised.

Take a look at the 15 year fixed rates down in the 2’s…Wow.

Based in Orange County, California, The Soussé Group is ranked number one in total sales in Irvine, California, 92612. Topped $120 million in sales in 2011, 2010, 2009, 2008, 2007 alone with 320 completed transactions and have successfully risen to the top 50 along the 25,000 agents in Orange County.
Kerry and Maurice Soussé
Realtor / Broker
The Soussé Group
HÔM Real Estate Group
1200 Newport Center Drive, Suite 100
Newport Beach, CA 92660
Direct Line: (714) 412-9014
Direct Line: (714) 412-8512
Direct Fax : (949) 640-7606
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