California’s Improving Housing Markets

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Check out Riverside County! Permits up 21% from our lowest point over the last 6 months.

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Looking To Rent? Beware of This Scam!

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This is a common scam that anybody looking to rent should be aware of. Always deal with licensed real estate professionals – property managers must be current licensees registered with the California Department of Real Estate – check their licenses here:

Police Say Suspects Posed as Property Managers in Rental Scam

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Two Temecula men are accused of posing as property managers at numerous vacant residences and collecting money for fake rental agreements, according to police.

Matthew Sinay, 23, and Brent Perry, 27, were arrested Friday after Temecula Police responded to a vacant residence on Ritter Court to investigate a suspicious-circumstance call.

 

Investigators determined that the suspects changed the locks of the residence near Great Oak High School and were fraudulently representing themselves as the property manager, according to Sgt. Joseph Greco.

Further investigation revealed that Sinay and Perry had been conspiring to illegally enter residences throughout Riverside County and scam money from unsuspecting renters by issuing them fraudulent contracts, according to Greco.

Police say other people may have been swindled by the suspects and are asked to call Investigator Dickey at (951) 696-3045.

Sinay was freed Saturday on $35,000 bail according to jail records, and Perry remained in custody Saturday facing burglary and conspiracy charges, along with DUI and driving on a suspended license. Perry’s bail was set at $35,000.

According to jail records, Sinay was arrested on Feb. 13, 2013, at the Wal Mart on Temecula Parkway for felony second-degree burglary and conspiracy. Sinay’s next court date for those charges is on April 10.

via Police Say Suspects Posed as Property Managers in Rental Scam – Temecula, CA Patch.

Investors Gradually Retreating from Market

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Piece of the PuzzleAs home prices rise, the number of investors in the housing market appears to be starting to cool. The number of investment properties purchased last year dropped 2.1 percent compared to 2011, according to a recent National Association of REALTORS® report.

Investors are making up a smaller number of home buyers, shrinking from 27 percent in 2011 to 24 percent in 2012. However, investment buyers still make up a large percentage of buyers compared to historical standards.

“Investors have been very active in the market over the past two years, attracted mostly by discounted foreclosures that could be quickly turned into profitable rentals,” says Lawrence Yun, NAR chief economist. “With rising prices and limited inventory, notably in the low price ranges, investors are likely to step back in coming years.”

Investors in 2012 purchased a median home priced at $115,000, which is a 15 percent increase over 2011, according to NAR.

Investment buyers also appear to plan to hold onto their properties longer than in the past, with a median of eight years now compared to five years in 2011, according to NAR.

Source: “Investors Cooling on Housing Market,” CBS MoneyWatch (April 3, 2013)

via Investors Gradually Retreating from Market | Realtor Magazine.

Big Predictions for Housing for Next 2 Years

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PredictionsHome sales are projected to post some big gains in the next two years, according to Fannie Mae’s latest monthly economic outlook.

Fannie Mae economists predict that existing-home sales will rise by 10.5 percent this year, and by 6.2 percent in 2014. The economists made even bolder projections for new single-family home sales — growing 15.1 percent this year and 44.1 percent in 2014.

“We expect home prices to firm further amid a durable housing recovery, continuing to boost household net worth, gradually diminishing the population of underwater borrowers, and reducing incentive for strategic defaults,” according to Fannie Mae’s report.

Fannie Mae projects that mortgage rates will stay low by historical averages this year, but the 30-year fixed-rate mortgage will rise from an average of 3.5 percent during the first quarter to an average of 4 percent during the final three months of 2013. During the fourth quarter of 2014, mortgage rates are projected to tick up to a 4.5 percent average.

Mortgage applications for purchases are projected to increase by 16.8 percent this year and by 17.1 percent in 2014. However, a decline in applications for refinancings will likely cause mortgage originations to be down 14.5 percent this year and by 31.4 percent in 2014, Fannie economists predict.

Source: “Fannie Mae sees housing upturn as ‘intact’,” Inman News (March 28, 2013)

via Big Predictions for Housing for Next 2 Years | Realtor Magazine.