3rd quarter “affordability” numbers for Sonoma County and the NorthBay. We are now at 25% or 1 in 4 folks can afford to buy the median home priced at $630,000. You payment will be $3,180 per month with total income needed of $127,100. And this was BEFORE the “Fire Storms”. Now throw in scarcity and things are just very, very tight! Housing Crisis
We’ve discussed “Crowdfunding” previously for raising money for home improvement, down-payment for a loan but the funds all needed to be “seasoned” and would have to be usually 6 months old before being counted as legitimate funds by the big government lenders–Fannie Mae and Freddie Mac. Now CMG has partnered with the two big GSE’s in making the crowdfunding money available immediately for a down-payment. We’ll discuss what changed and how you can use this way to raise money to buy a house.
Why go on a “destination” wedding which may cost $50,000 when you REALLY want to buy a home?!
Open House today! Sunday, July 9th –1 to 4pm. $829,900. EZ directions–Bennett Valley rd to Sonoma Mountain and down about a mile on the left hand side. Allison and I are pleased with this terrific new offering in the heart of Bennett Valley. Home is just around 1600 sqft with 3 spacious bedrooms and 2 full bathrooms. New carpeting in living room area, interior paint, new gorgeous redwood deck with easterly views for morning coffee. All on 1.50+ acres and single level living. Bring your animals, critters, shop dreams, chickens, 4-H projects, whatever! Open today 1 to 4pm.
Here in the lovely “Wine Country” housing market you can’t be complaining about the interest rates! If you are retiring in 7 years and perhaps moving to another area then hook onto a refinance as your rate would be 3.125% Wow! Or opt for a 15 year loan and enjoy super low rates and rapid equity build up.
David Guhin, City of Santa Rosa, CA Director of Planning and Economic Development will be on the show to discuss the State’s new requirements, and how cities are now required to make changes allowing for an easier, less restrictive process for adding an ADU (Accessory Dwelling Unit) to your property. More City of Santa Rosa info here
Tune us in at 9-10AM on KSRO 1350AM, 103.5FM and streaming live at KSRO.com. Call in numbers are 707-636-1350
Missed the Show? – Listen HERE
|David Guhin||Director of Planning and Economic Development
City of Santa Rosa
Mr. Guhin has over 17 years of experience in the public sector, most of which has been with the City of Santa Rosa’s Water Department. In July 2015 Mr. Guhin was asked to lead the former Community Development Department through a series of strategic changes. His first tasks were to tackle the organizational changes that would create the new and revitalized Planning and Economic Development Department and to engage staff in visioning, developing, and implementing a comprehensive Process Improvement Action Plan aimed at positively altering the experience of doing business with and for the City.
Mr. Guhin’s areas of reasonability includes the Planning, Engineering, Building and Economic Development functions for the City of Santa Rosa. In his time with Planning and Economic Development, Mr. Guhin has established the ongoing process improvement implementation, integrated the Engineering Development Services and Economic Development Divisions into the department, guided the development of the Housing Action Plan, and is leading the development of the City of Santa Rosa’s comprehensive policy on medical cannabis.
Mr. Guhin holds a Bachelor’s of Science degree in Engineering from the South Dakota School of Mines and Technology, and he is a Registered Professional Engineer in the State of California. Mr. Guhin’s recent community involvement includes being Past President for the Redwood Empire Food Bank, and he was the co‐chair for the Amgen Tour of California local organizing committee and has helped to bring the Ironman to Santa Rosa for the next 5 years.
David M. Guhin | Director
Planning and Economic Development
100 Santa Rosa Avenue | Santa Rosa, CA 95404
Here’s the “Tale of the Tape” for home sales, Sonoma County, California, November 2016.
Median home price is up 9% over last year at this time but this is due to the tight inventory market, buyer demand and rates on the rise. As of this writing, December 7, 2016, rates are hovering just at 4 to 4.25%. So the threat of rising rates is bringing those looking to the table. It should be noted we have only 575 “Active” listings for every town in Sonoma County–all price points. Slim pickens
While the median SOLD price is $575,000, the “On the Market” median home price is $749,00. This means of those 575 homes half are below and above that number. Sales are actualy up +2%, or pretty darn close to “Flat” year over year. The “Solds” for 2016 never broke 500 sales in any month. Last year we had two months of 500+ sales.
An indicator of things to come is the “Under Contract” numbers which are down -8% over last year. But this is also seasonal as the slowest months of the year are upon us. Inventory is as you’d expect–down. New properties entering the market -6% and total inventory down -15% year over year.
Positives? DOM or Days on the Market is down -33%! 50 days is the time and our MSI or Month’s Supply of Inventory is only 1.8 months. Put this in context: a “normal” market is 4-6 months supply, under that its a Seller’s market. We have a BIG TIME Seller’s Market!
Still, if you are a buyer keep at it! Especially if you are below the median home price of $575,000. Less competition and motivated Sellers are a good combination for you! Let us know if we can help! 707-322-8503! Mike Kelly.
Rates are so low it’s Xmas in October!
|Loan Type||MI Type||Interest Rate||APR|
|5/1 ARM Conforming||3.000%||3.523%|
|30-yr fixed Conforming||3.375%||3.432%|
|15-yr fixed Conforming||2.875%||2.977%|
Non-Conforming: Over $554,300
|Loan Type||MI Type||Interest Rate||APR|
|5/1 ARM Non-Conforming||2.625%||3.378%|
|30-yr fixed Non-Conforming||3.250%||3.272%|
|15-yr fixed Non-Conforming||3.000%||3.040%|
Information displayed is accurate as of 9/30/2016 2:59:57 PM (CT) and is subject to change without notice.
For information on the many other loan options we have available, please contact me. I look forward to hearing from you.
So when the world economy shudders and lurches on the news of “the un-thinkable” –Brittian leaving the EU– the smart money runs for the relative safety of “bonds”. Bad news=great interest rates! This is getting seriously low. Look at these absolutely delicious rates!
Mortgage Rates for June 24, 2016
|FIXED AND ARM CONVENTIONAL PROGRAMS||RATE APR|
|30 Year Fixed Conventional||3.500% 3.665%|
|15 Year Fixed Conventional||2.875% 3.015%|
|5/1 LIBOR ARM Conventional||3.000% 3.088%|
|7/1 LIBOR ARM Conventional||3.125% 3.178%|
|JUMBO PROGRAMS ($554k +)||RATE APR|
|30 Year Fixed||3.375% 3.592%|
|15 Year Fixed||3.250% 3.009%|
|5/1 LIBOR ARM||2.750% 2.847%|
|7/1 LIBOR ARM||2.750% 2.911%|
|FHA/VA FIXED PROGRAMS||RATE APR|
|30 Year FHA/VA||3.250% 4.397%|
|15 Year FHA/VA||3.250% 4.660%|
66% of May real estate sales fell between $400,000 to $749,000 here in the “Wine Country” of Sonoma County, California. Many in the nation might think our prices outrageous but here in the super heated “Tech-centered” Bay Area we are considered the “bargain basement”. Our “Median” SOLD home price is $580,000. However, the “Active” or “Showable” listings tell a different story. Whereas a “median” home price indicates half the market above and half below when it comes to “Active” listings its another story altogether. We have 818 total “Active” or “Showable” listings now available county-wide. If we use $580,000 as a median home price with our “Active” inventory we see 27% of the available listings are BELOW $580,000 and 73% above. The county-wide Median “Active” list price is $815,000.
If you wish to find “Active” properties below the “Median SOLD Price” only 4 areas meet that criteria: Russian River–$449,000 with 59 showable listings. The SW area of Santa Rosa comes in at $469,000 with only 27 showable listings, followed by NW Santa Rosa, $515,000 with 46 showable listings and the Cotati/Rohnert Park with $537,000 median home price of actives but only 18 showable homes.
It really takes off from there. The top two median “Active” home prices? Sonoma at $1,297,000 with 125 showable listings and Healdsburg, $1,411,500 with 76 showable listings. Overall, of the 818 total “Active” listings 308 are OVER $1,000,000.
If you are 62 or older. you can use a Reverse Mortgage to make a home purchase, and have no payments!! Today on the show, Reverse Mortgabe specialist, Jill Gromm of Alliance Reverse Mortgage, joins us. Tune in to the Real Estate Hour today for more information om this great option for our seniors community.
Plus more information about the traditional Reverse Mortgage refi which allows Seniors to age in place. This is good info for all us aging Baby Boomers, and our families.
The Real Estate Hour airs Sundays 9-10AM, PST live on KSRO 1350AM, 103.5FM and streaming live (and later podcast) at www.KSRO.com. Questions, call in numbers 707-636-1350 during the show or 707-799-3617 anytime.
Purchase a Home with a Reverse Mortgage
A HECM for Purchase is a Home Equity Conversion Mortgage that allows homeowners to purchase a new principal residence and obtain a Reverse Mortgage in a single transaction. As with a traditional Reverse Mortgage, all homeowners must be 62 years or older to qualify. (Spouse may be under 62)
The Reverse for Purchase enables senior homeowners to relocate to other geographical areas to be closer to family members, right-size home or land or maybe move closer to medical facilities.
What is a Reverse Mortgage
A Reverse Mortgage, also called a Home Equity Conversion Mortgage (HECM), is a loan that uses your home as collateral, but instead of making payments to a lender, the lender pays you. As long as you live in the home and comply with loan terms including payment of taxes and insurance, you will never have to make a mortgage payment, in other words you will have no personal liability for the payment of the debt. Upon the sale or transfer of ownership of the property the loan will then be repaid.
A huge benefit is that your cash is distributed to suit your needs and lifestyle. The lender pays out the loan in three ways: lump sum, monthly payouts, or line of credit. As long as you have money to access, you can change your mind on how you take the money at any time. This allows the homeowner to be flexible with the money.
Other benefits include:
- The funds loaned to you are tax-free (consult your tax advisor for your specific situation)
- Your loan does not affect your Social Security or Medicare benefits
- You and your heirs will keep any remaining equity
- You can never owe more than the value of your home
- There are no application fees
- Your piece of mind is invaluable. This loan will provide you the relief you have been looking for, remember it is a loan secured by a lien on your home
- You may continue to own your home in your name or in your trust
- Increase cash flow by eliminating monthly mortgage payments
How much can I borrow?
The amount of money the borrower can receive is determined by the age of the youngest borrower, interest rates, appraised value, sale price and the maximum lending limit. It will be specific to your situation. We offer a no obligation assessment. Contact us to discuss.
What types of homes are eligible to be collateral?
Most single-family homes, two-to-four unit owner-occupied dwellings and approved condominiums and manufactured homes are eligible for a reverse mortgage loan. The home must meet FHA minimum property standards.
Am I eligible to take out a Reverse Mortgage?
To be eligible the FHA requires all borrowers on title to be 62 years or older. Borrowers must also meet financial eligibility criteria as established by HUD. If there is an existing mortgage on the home, it must be paid off with the proceeds from the reverse mortgage loan.
What happens if I want my home to be a part of my inheritance?
When the reverse mortgage loan does become due, the borrower’s heirs and/or estate may choose to repay the reverse mortgage loan and keep the home. Or, they can put the home up for sale in order to repay the loan. If the home sells for more than the balance of the reverse mortgage loan, the remaining home equity passes to the heirs.
If the home sells for less than the owed balance, the estate is not required to pay more than the value of the home at the time the loan is repaid.
A reverse mortgage loan is “non-recourse”, meaning that if you sell the home to repay the loan, you or your heirs will never owe more than the loan balance or the value of the property, whichever is less; and no assets other than the home must be used to repay the debt.
What monthly payments will I have?
You will not have mortgage loan payments, but still need to continue paying property taxes, insurance and HOA dues if any while maintaining the home according to FHA guidelines.
What can I use the money from the Reverse Mortgage loan for?
Reverse mortgage loans are commonly used to pay for home renovations, medical and daily living expenses. Homeowners who have an existing mortgage must use the reverse mortgage loan to pay off their existing mortgage. Ultimately, you can usually use it for anything you need.
VP/Senior Loan Agent
Alliance Reverse Mortgage
3033 Cleveland Ave., Santa Rosa, CA 95403
CA BRE 01326979 | NMLS 246723