Potent Cocktail

November was another good month for jobs with 178,000 new ones created and unemployment dropping to 4.6%. The bad news was that after an encouraging 0.4% gain in October, average hourly wages dropped back by 0.1%.

Flat wages are not hurting home prices–at least so far. They continue to defy forecasts of smaller increases. CoreLogic said October home prices were up 6.7% on an annual basis compared to 6.3% in September. Company president Anand Nallathambi said soaring prices in major metro areas such as Boston, Los Angeles and Denver, “are being fueled by a potent cocktail of high demand, low inventories and historically low interest rates.”
Americans are doing everything from starting their cars remotely, to buying groceries via smart phone these days, so it is not surprising they would like to apply for a mortgage while walking to work. Both doing that and the desire to so it have more than doubled in a year according to a recent survey where Fannie Mae focused on “the mobile mortgage experience.” The company’s earlier survey of lenders found the industry was responding; with more than half of companies expecting to have a mobile app in place by the end of this year.
Even the closing table may soon be an Internet “thing,” something the Consumer Financial Protection Bureau has been advocating for quite a while. E-closings eliminate hours at the closing table and give the consumer private time to thoroughly review loan documents. One hang up has been the sensitivity of creating, signing, transferring, and storing mortgage notes which, as a Freddie Mac spokesman says, must be “a single, unique, unaltered, authoritative copy.”  That too is now falling into place. Freddie just gave its lenders a short list of companies certified to have the facilities and expertise to do this.
The FHA and the Veterans Administration followed Freddie Mac and Fannie Mae in raising their loan limits. The VA’s new maximums matched the new GSE limit of $424,100 ($636,150 in high cost areas) for loans with no money down. While FHA’s limits play off the conforming ones, its formula determining them is more complicated.
Remember, loan limits are just that–a maximum loan amount, not a limit on a home’s purchase price. Under the new limits a 20% down payment pushes the maximum home that can be purchased with a conforming loan from the old $520,250 to $530,125. The VA limit is the maximum the government will guarantee. The actual loan can be as large as a lender is willing to make.

For information on your area’s maximum loan amounts, call, or send an email.


Greg Timms Blog | Freddie Mac - 120916

Posted on December 9, 2016 at 6:47 pm
Greg Timms | Category: Economical Updates | Tagged , , , , ,

Where to Begin

It is rare indeed when we can report on new, existing, and pending home sales in one fell swoop but all three reports were issued while many of us were enjoying friends, family, turkey and pie. The data was mixed, and relatively flat, but then we are morphing into the holiday rather than the homebuying season.
Existing home sales rose for the second month in a row in October, up 2.0% to a seasonally adjusted annual rate of 5.60 million units. It wasn’t much of a gain, but tacked on to September’s more robust increase, sales were at the highest annualized rate since February 2007 and 5.9% higher than the previous October.
Pending sales were also up, but hardly enough to notice. National Association of Realtor economist Lawrence Yun called the 0.1% gain “miniscule.” Still it was enough to give the Pending Home Sale Index a two-month winning streak and bring it back to where it last was in July.
October new home sales were estimated at a rate of 563,000, off by 1.9% from what had originally been reported as a great September. Those sales also lost some luster under revision, downgraded from 593,000 to 574,000 units.
We also had a “hat trick” with home prices. Three of the four major indices came in during our hiatus. One was especially crucial.
The Federal Housing Finance Agency (FHFA) said its House Price Index (based on mortgages sold or guaranteed by Freddie Mac and Fannie May) rose 1.7% during the third quarter. This, under rules established by Congress, was enough to trigger the first revision of conforming loan limits in a decade. On January 1, the new maximum will be $424,100 rather than the $417,000 limit that has been in place since 2006.
All three home price reports continue to contradict most forecasts expecting some moderation. FHFA said prices were 6.1% higher year-over-year while Case-Shiller’s National Index rose 5.5% (0.4 points more than in August) and Black Knight’s Home Price Index was up 5.4% against 5.3% the previous month.
Finally, we hope you were lulled sufficiently by an overload of tryptophan to miss the interest rate antics of the last two weeks. Freddie Mac reported a 9-basis point (bp) increase last Wednesday, tipping the 30-year fixed rate mortgage just over 4%. Then bond market volatility drove some lender quotes as much as 20 bps higher by week’s end. While Freddie’s rate rose to 4.08% this week, things seem to have quieted down.

Freddie’s economists say they expect these rates will hold and that further increases will be modest. They are forecasting an average of 4.2% through 2017.


Greg Timms Blog | Freddie Mac  12 03 16

Posted on December 2, 2016 at 7:52 pm
Greg Timms | Category: Economical Updates | Tagged , , , , ,

JUST LISTED! 8228 Station Village Ln 1512, San Diego 92108

Greg Timms Blog | 8228 Station Village Ln 1512

Gorgeous 3rd floor corner unit with views. Freshly painted interior including baseboards & crown molding. New upgraded carpeting throughout. Private patio balcony off living room.

Greg Timms Blog | 8228 Station Village Ln 1512

Greg Timms Blog | 8228 Station Village Ln 1512

Greg Timms Blog | 8228 Station Village Ln 1512

Greg Timms Blog | 8228 Station Village Ln 1512

Stainless steel appliances, breakfast nook, granite counters throughout kitchen & plenty of cabinets. Interior laundry room & open living room.

Greg Timms Blog | 8228 Station Village Ln 1512

Greg Timms Blog | 8228 Station Village Ln 1512

Greg Timms Blog | 8228 Station Village Ln 1512

Greg Timms Blog | 8228 Station Village Ln 1512

Spacious master bedroom & 2nd bedroom. Two full baths with tubs.

Greg Timms Blog | 8228 Station Village Ln 1512

Greg Timms Blog | 8228 Station Village Ln 1512

Greg Timms Blog | 8228 Station Village Ln 1512

Greg Timms Blog | 8228 Station Village Ln 1512

Greg Timms Blog | 8228 Station Village Ln 1512

Greg Timms Blog | 8228 Station Village Ln 1512

Greg Timms Blog | 8228 Station Village Ln 1512

Greg Timms Blog | 8228 Station Village Ln 1512

Greg Timms Blog | 8228 Station Village Ln 1512

One car garage at entry level & parking space close by. Close to pool & BBQ area.

Greg Timms Blog | 8228 Station Village Ln 1512

Greg Timms Blog | 8228 Station Village Ln 1512

Greg Timms Blog | 8228 Station Village Ln 1512

Greg Timms Blog | 8228 Station Village Ln 1512

Greg Timms Blog | 8228 Station Village Ln 1512

Greg Timms Blog | 8228 Station Village Ln 1512

Currently offered at $420,000.

If you are interested in seeing this home, please contact me today!

Posted on November 22, 2016 at 12:44 am
Greg Timms | Category: Real Estate Activity | Tagged , , , , , ,

The Trump effect. How will it impact the US economy and housing?

Greg Timms Blog

The American people have spoken and they have elected Donald J. Trump as the 45th president of the United States. Change was clearly demanded, and change is what we will have.

The election was a shock for many, especially on the West Coast where we have not been overly affected by the long-term loss in US manufacturing or stagnant wage growth of the past decade. But the votes are in and a new era is ahead of us. So, what does this mean for the housing market?

First and foremost I would say that we should all take a deep breath. In a similar fashion to the UK’s “Brexit”, there will be a “whiplash” effect, as was seen in overnight trading across the globe. However, at least in the US, equity markets have calmed as they start to take a closer look at what a Trump presidency will mean.

On a macro level, I would start by stating that political rhetoric and hyperbole do not necessarily translate into policy. That is the most important message that I want to get across. I consider it highly unlikely that many of the statements regarding trade protectionism will actually go into effect. It will be very important for President Trump to tone down his platform on renegotiating trade agreements and imposing tariffs on China. I also deem it highly unlikely that a 1,000-mile wall will actually get built.

It is crucial that some of the more inflammatory statements that President-Elect Trump has made be toned down or markets will react negatively. However, what is of greater concern to me is that neither candidate really approached questions regarding housing with any granularity. There was little-to-no-discussion regarding housing finance reform, so I will be watching this topic very closely over the coming months.

As far as the housing market is concerned, it is really too early to make any definitive comment. That said, Trump ran on a platform of deregulation and this could actually bode well for real estate. It might allow banks the freedom to lend more, which in turn, could further energize the market as more buyers may qualify for home loans.

Concerns over rising interest rates may also be overstated. As history tells us, during times of uncertainty we tend to put more money into bonds. If this holds true, then we may see a longer-than-expected period of below-average rates. Today’s uptick in bond yields is likely just temporary.

Proposed infrastructure spending could boost employment and wages, which again, would be a positive for housing markets. Furthermore, easing land use regulations has the potential to begin addressing the problem of housing affordability across many of our nation’s housing markets – specifically on the West Coast.

Economies do not like uncertainty. In the near-term we may see a temporary lull in the US economy, as well as the housing market, as we analyze what a Trump presidency really means. But at the present time, I do not see any substantive cause for panic in the housing sector.

We are a resilient nation, and as long as we continue to have checks-and balances, I have confidence that we will endure any period of uncertainty and come out stronger.

Posted on November 10, 2016 at 6:21 pm
Greg Timms | Category: Economical Updates, Real Estate News | Tagged , , , , ,

JUST LISTED! 18724 Caminito Pasadero, San Diego 92128

160057063

Greg Timms Blog | 8724 Caminito Pasadero

Just Listed this gorgeous 3 bedroom model with loft office/study. Ideal location with privacy & garden views.

Greg Timms Blog | 8724 Caminito Pasadero

Greg Timms Blog | 8724 Caminito Pasadero

Greg Timms Blog | 8724 Caminito Pasadero

Greg Timms Blog | 8724 Caminito Pasadero

Greg Timms Blog | 8724 Caminito Pasadero

Greg Timms Blog | 8724 Caminito Pasadero

Open kitchen with granite counter center island off family room with fireplace & lots of kitchen cabinets. Spacious living room with dining adjacent to it.

Greg Timms Blog | 8724 Caminito Pasadero

Greg Timms Blog | 8724 Caminito Pasadero

Greg Timms Blog | 8724 Caminito Pasadero

Greg Timms Blog | 8724 Caminito Pasadero

Spacious master suite with walk in closet, dual vanity & views.

Greg Timms Blog | 8724 Caminito Pasadero

Greg Timms Blog | 8724 Caminito Pasadero

Greg Timms Blog | 8724 Caminito Pasadero

Greg Timms Blog | 8724 Caminito Pasadero

Greg Timms Blog | 8724 Caminito Pasadero

Greg Timms Blog | 8724 Caminito Pasadero

Greg Timms Blog | 8724 Caminito Pasadero

Greg Timms Blog | 8724 Caminito Pasadero

Greg Timms Blog | 8724 Caminito Pasadero

Sought after gated community with multi-million dollar club house with 2 pools, BBQ area, lighted tennis courts, exercise room, banquet room and more! No Mello Roos. Poway School District.

Greg Timms Blog | 8724 Caminito Pasadero

Greg Timms Blog | 8724 Caminito Pasadero

Greg Timms Blog | 8724 Caminito Pasadero

Greg Timms Blog | 8724 Caminito Pasadero

Currently offered at $559,000 – $579,000

If you or someone you  know is interested in seeing this home, call me today to schedule a private showing appointment! Homes is this area are selling quick and this one will too!

Posted on October 24, 2016 at 7:45 pm
Greg Timms | Category: Real Estate Activity | Tagged , , , , ,

JUST SOLD! 17738 Villamoura Drive, Poway 92064

Greg Timms Blog | Villamoura Dr

Just SOLD this Stoneridge Chateau unit with an open floor plan on the golf course. Single story unit on ground floor.

Greg Timms Blog | Villamoura Dr

Study room off the living room. Breakfast nook,pantry, interior laundry closet & pass through to dining area. Tiled fireplace with raised hearth in living room, large master bedroom with dual closets & views of golf course!

Greg Timms Blog | Villamoura Dr

Greg Timms Blog | Villamoura Dr

Greg Timms Blog | Villamoura Dr

Enjoy patio living right on the golf course in a great community!

Greg Timms Blog | Villamoura Dr

Greg Timms Blog | Villamoura Dr

Greg Timms Blog | Villamoura Dr
This home also had direct access to the home from the garage which is unique to this floor plan. Located highly Poway Unified School District.

I can get the same results for you too! If you are considering buying or selling – call Greg Timms today! 858. 774.3049

Posted on October 5, 2016 at 4:36 pm
Greg Timms | Category: Real Estate News | Tagged , , , , , ,

New Homes on the Way

Despite a month-long tease by way of comments from various board members, the September meeting of the Federal Open Market Committee (FOMC) came and went this week leaving rates untouched. A hike in the fed funds rate did get three “yes” votes, two more than in August.

Whether in reaction to the FOMC decision or not, Freddie Mac said its 30-year fixed-rate mortgage gave back some of last week’s 6 basis point increase, retreating to 3.48%. Maybe more important than the 2-point dip is the hint that rates may not move inexorably upward.

Existing home sales declined for the second straight month in August, falling 0.9% from July to an annual rate of 5.33 million. Condo sales did reclaim part of their near 13% July nose-dive, rising 10.5%, but single family home sales lost 2.3%.

National Association of Realtors Chief Economist Lawrence Yun blamed the slowing sales on tight inventories and rising prices as evidenced by the Federal Housing Finance Agency Home Price Index. It rose nationally by 0.5% compared to 0.2% in June, a pattern repeated in most of the nine census divisions. The year over year gain also accelerated slightly from June which supports the trend CoreLogic noted earlier this month.

After hovering in a narrow three-point range for the last nine months, the National Association of Homebuilders Housing Market Index finally busted loose, rising six points to tie the post recession high reached last October. The index, which measures home builder confidence in the new home market, shows recovering satisfaction with the current level of sales activity and the prospects that activity will continue strong over the next six months.

Unfortunately, that confidence wasn’t reflected in the following day’s August residential construction stats. Building permits continue to lag behind the numbers authorized a year earlier and were lower month-over month for the third consecutive period, this time by 0.4%. The drag came from multi-family permitting, which declined by more than 8% while single family permits reclaimed the 3.7% lost in July.

Housing starts were down 5.8% from a month earlier, with the change shared fairly equally by the single and multi-family sectors, and up .9% compared to last year. Housing completions also fell compared to July, but are still running way ahead of August 2015.

The good news from the residential construction data is the potential for expanding new home inventories. There are over a million units of housing now under construction with work yet to start on another 100,000+ permitted units.

Another flood of sales and pricing news is on the docket for next week. Given the trend of existing home sales, the pending sales report is the one to watch.

Greg Timms Blog | FreddieMac 092316

Posted on September 23, 2016 at 6:36 pm
Greg Timms | Category: Economical Updates | Tagged , , , , ,

JUST SOLD | 3275 Camino Vallareal, Escondido 92029

Greg Timms Blog | 3275 CAMINO VALLAREAL

Just Sold by Exquisite Homes and Estate! FABULOUS TROPICAL PARADISE with GREAT PANORAMIC VIEWS!! A 1 story showcase with quality appointments & attention to every detail.

Greg Timms Blog | 3275 CAMINO VALLAREAL

Greg Timms Blog | 3275 CAMINO VALLAREAL

Greg Timms Blog | 3275 CAMINO VALLAREAL

Greg Timms Blog | 3275 CAMINO VALLAREAL

Greg Timms Blog | 3275 CAMINO VALLAREAL

Terrific Large Gourmet Island Kitchen with Striking Granite; Gorgeous Tiger/Mahogany Floors; 5″ Baseboards;Custom Fireplace Doors;8′ Solid Wood Doors;Surround Sound Speakers Interior & Exterior.

Greg Timms Blog | 3275 CAMINO VALLAREAL

Greg Timms Blog | 3275 CAMINO VALLAREAL

Greg Timms Blog | 3275 CAMINO VALLAREAL

Greg Timms Blog | 3275 CAMINO VALLAREAL

Greg Timms Blog | 3275 CAMINO VALLAREAL

Greg Timms Blog | 3275 CAMINO VALLAREAL

Greg Timms Blog | 3275 CAMINO VALLAREAL

Fourth bedroom has been converted to office with beautiful built-ins.

Greg Timms Blog | 3275 CAMINO VALLAREAL

Beach Entry Pool/Spa, BBQ Island, Covered Patio Area with it’s own Fireplace!

Greg Timms Blog | 3275 CAMINO VALLAREAL

Greg Timms Blog | 3275 CAMINO VALLAREAL

Greg Timms Blog | 3275 CAMINO VALLAREAL

Greg Timms Blog | 3275 CAMINO VALLAREAL

Greg Timms Blog | 3275 CAMINO VALLAREAL

Greg Timms Blog | 3275 CAMINO VALLAREAL

Greg Timms Blog | 3275 CAMINO VALLAREAL

Greg Timms Blog | 3275 CAMINO VALLAREAL

Sold for: $935,000

Greg Timms can help you find your dream home too! If you are considering buying, selling or investing call Greg today.

Posted on September 13, 2016 at 6:30 pm
Greg Timms | Category: Real Estate Activity | Tagged , , , , , , ,

LISTED AND SOLD IN 1 DAY! 13816 Paseo Cevera, San Diego 92129

Just listed and sold this great  home in San Diego!

Greg Timms Blog | Paseo Cevera

Enjoy the panoramic westerly view toward ocean, watch hot air balloons, from your private backyard with large covered patio.

Home is light and bright with flowing floorplan. Kitchen overlooking the backyard, opens to family room with fireplace. Tile floors in kitchen, entry, and family room. Large master bedroom with walk-in closet, dressing area with large vanity and double sinks. Oversized shower. Walking distance to Mt. Carmel High School, shopping, parks, and library.

Listed at: $629,900

I can get the same results for you too! If you are considering buying or selling, now is the time. Please call me today. 

Posted on July 11, 2016 at 6:16 pm
Greg Timms | Category: Real Estate News | Tagged , , , , , , , , ,

JUST LISTED! 1769 Larkhaven Gln, Escondido 92026

Greg Timms Blog | LARKHAVEN GLN

Just listed this gorgeous 2 bedroom, 2 bathroom, single story home with upgrades galore.

Greg Timms Blog | LARKHAVEN GLN

Greg Timms Blog | LARKHAVEN GLN

Greg Timms Blog | LARKHAVEN GLN

Remodeled kitchen with stainless steel appliances, granite counter tops, reverse osmosis, and tons of storage.

Greg Timms Blog | LARKHAVEN GLN

Greg Timms Blog | LARKHAVEN GLN

Greg Timms Blog | LARKHAVEN GLN

Greg Timms Blog | LARKHAVEN GLN

Greg Timms Blog | LARKHAVEN GLN

Greg Timms Blog | LARKHAVEN GLN

Beautiful hardwood floors and plantation shutters in all rooms. The 3rd bedroom has been converted into a media room. Built in storage in extra large garage. Bathrooms have been upgraded.

Greg Timms Blog | LARKHAVEN GLN

Greg Timms Blog | LARKHAVEN GLN

Greg Timms Blog | LARKHAVEN GLN

Greg Timms Blog | LARKHAVEN GLN

Greg Timms Blog | LARKHAVEN GLN

Enjoy the outside pool and spa, covered patio and deck is ideal for outdoor entertaining.

Greg Timms Blog | LARKHAVEN GLN

Greg Timms Blog | LARKHAVEN GLN

Greg Timms Blog | LARKHAVEN GLN

Greg Timms Blog | LARKHAVEN GLN
 

Currently Offered at: $529,000

Please contact me today if you or someone you know is interested in seeing this home. 

Posted on July 11, 2016 at 6:04 pm
Greg Timms | Category: Real Estate News | Tagged , , , , , , ,