Rental Costs Eat Up 70% – Chuck Barberini Real Estate

Chuck Barberini Real Estate – Barberini Robinson Real Estate – Contra Costa County Real Estate

Rental Costs Eat Up 70% – Chuck Barberini Real Estate

DAILY REAL ESTATE NEWS | THURSDAY, MAY 12, 2016

We are seeing this every day, but it is exceptional brutal in our current market. Rent is higher than most mortgage payments, but getting into a house these days is extremely difficult, lack of inventory has pushed up house prices and the completion from first time buyers and investors looking to take advantage of the increased rents make it extremely difficult for buyers. Check out this article that was in Realtor.com today.

Soaring rental costs are taking a big dent out of some renters’ paychecks, and creating hardships for entry-level employees in particular.

Read moreWhy Renters Can’t Make the Move

In New York City, the average entry-level employee earns $47,000 per year. That means affording the rent of an average one-bedroom apartment at $3,000 per month will take up 77 percent of the average employees’ monthly income, according to RadPad, which recently analyzed more than 150,000 apartment listings to judge affordability for entry-level employees. In San Francisco, employees’ have 79 percent of their incomes eaten up by rental costs – the highest percentage in the nation of any metro studied.

Renters in Houston have it easier. Houston renters spend 29 percent of their incomes on rents, which falls under the 30 percent threshold that most financial planners say is healthy for a budget.

Here are 10 popular cities ranked from highest to lowest in terms of the percentage of starting monthly income that goes towards rent:

  1. San Francisco: 79%

    For Rent
    For Rent
  2. New York City: 77%
  3. Los Angeles: 61%
  4. Boston: 56%
  5. Seattle: 51%
  6. Chicago: 47%
  7. Orlando: 44%
  8. Atlanta: 36%
  9. Austin: 36%
  10. Houston: 29%

Source: “An Entry-Level Salary Is Barely Enough to Make Rent in These Cities,” Credit.com (May 11, 2016)

Rates improved today upon the release of weaker than expected economic news. 

Mortgage Rates and Market Data

Rental Costs Eat Up 70% – Chuck Barberini Real Estate

A Troubling Shortage of Homes – Chuck Barberini Real Estate

A Troubling Shortage of Homes – Chuck Barberini Real Estate

 Chuck Barberini Real Estate – Contra Costa County Real Estate

We all see it. The rapid increase in home prices, especially in the Bay Area. Interest rates remain low, but so does inventory. Younger buyers and first time buyers continue to have a difficult road to home ownership. To make matters worse rents continue to rise and rental inventory continues to decline making the frenzy around rental properties equal to or greater then multiply offer, over asking price scenarios that continue to take place in the house buying market.

Check out this article by Lawrence Yun that I found in RealtorMag.com that speaks to the current home buying market. Good Luck, Chuck

Inflation may be in check, but the lack of inventory around the country is fueling a sharp rise in housing costs.mar16_NC_economy

There is no inflation, says the federal government. The consumer price index rose by only 0.4 percent in 2015 so there will be no cost-of-living adjustment to Social Security checks this year. However, as most real estate professionals know, housing costs are still climbing. Rents rose at their highest pace in seven years and home prices nationally increased by 6 percent. That would be three times the pace of average wage growth. Housing costs are expected to keep rising in 2016 simply because not enough homes are being built.

From 2009 to today, new construction of single-family homes, condominiums, and apartment units totaled 5.6 million. Over the same period, approximately 1.7 million housing units were deemed uninhabitable or obsolete and were demolished and removed from the housing stock. These two figures result in a net addition of 3.9 million housing units to the country’s stock. Is that adequate in light of 17.3 million additional people living in the country over the same period?

Clearly, the answer is no. Given the average household size of 2.5 persons, a total of 6.9 million new housing units would be needed to accommodate the country’s rising population. The 3.9 million units that were actually created fall far short of the demand—by some 3 million homes.

That explains why rental vacancies are falling and housing inventories are shrinking. Of course, local market conditions vary. States with declining populations, including Connecticut, Illinois, and West Virginia, may have a less pressing need for additional home construction. But those places are exceptions. Housing shortages are the rule in most states and there’s no reason to expect anything to change this year.

There are essentially two major consequences of a persistent housing shortage: a continuing steep rise in housing costs and people needing to double or triple up to afford a home. Young adults may have to find multiple roommates or else live with their parents.

That latter scenario is probably not what most young people dream about, but it’s what the American dream of home ownership could turn into if we don’t spur more housing development in the country soon.

MARCH 2016 | BY LAWRENCE YUN

Mortgage Rates and Market Data

Chuck Barberini – Barberini Robinson Real Estate Group

A Troubling Shortage of Homes – Chuck Barberini Real Estate

December pending sales and Market Pulse Survey – Chuck Barberini Realtor

Chuck Barberini Realtor – Contra Costa County Real Estate – Barberini | Robinson Real Estate Group Intero Walnut Creek

December pending sales and Market Pulse Survey

For release:

January 25, 2016

California pending home sales register annual increase in December

LOS ANGELES (Jan. 25) – Pending home sales in California continued to improve from a year ago with solid gains, which will position the market for a modest increase in home sales in 2016, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.

In a separate report, California REALTORS® responding to C.A.R.’s December Market Pulse Survey saw a small decrease in the number of sales with multiple offers compared with November as well as a decrease in the number of offers received. Listing appointments remained stable, while floor calls and open house traffic were down, primarily reflecting seasonal factors. The Market Pulse Survey is a monthly online survey of more than 300 California REALTORS®, which measures data about their last closed transaction and sentiment about business activity in their market area for the previous month and the last year.

Read More Here:

This article kind of surprised me, the last quarter of 2015 was very slow. There was more inventory then we have seen over the last year and it seemed as if properties were sitting longer. Prices have been steadily rising and it appeared that there were less multiple offer situations happening. The new year, however started of with a fury: I have a listing that has been on the market over 90 days. It is a probate property that is less then desirable condition. It is a Townhouse in an association that is not FHA approved and needs a bunch of work. I have received several calls on the property and several agents have told me that their client is interested and would be writing an offer. For various reasons the listing just sat, while several people were waiting for the price to be lowered. The first week of January, my phone blew up with calls on the property. On the first Friday of the new year I had multiple offers and the property went pending. It seems like the starting bell rang and that real estate will be as frantic as ever. Looking forward to a busy 2016.

 

Rates improved today upon the release of weaker than expected economic news. 

Mortgage Rates and Market Data

TRID Rules Take Effect 10-3-2015 – Chuck Barberini Real Estate

https://www.barberinico.com/trid-rules-take-effect/

Chuck Barberini Realtor – Contra Costa County Real Estate – Intero Walnut Creek

TRID 6-page-001

TRID takes effect today I have attended a couple of talks discussing how the new rules will impact the Real Estate industry. Some of the items of importance, as I see them, are that TRID requires the lenders to draw up a very accurate Loan Estimate, which is replacing the Good Faith Estimate, at the beginning of the disclosure process, similar to the current process. Loan docs cannot be signed within a 7 day period of the Loan Estimate receipt date. It also requires that the Closing Disclosure, a modified document taking the place of the HUD, requires 3 days of seasoning before the buyers are able to sign their loan docs. The Closing Disclosure must be within 10% of the Loan Estimate or the Loan Estimate has to be re-issued with another 7 day waiting period. This is the part that has everyone worried about the length of escrows. Another key component is that there are no fee adjustments permitted once the Closing Disclosure is sent. The burden will be on the borrower to get the lender all of their information early and completely, then for the lender to thoroughly create the Loan Estimate, including all potential fees. I have heard that some of the banks anticipate that TRID will add 14 days to the closing of an escrow, I believe that will be the exception rather than the rule. As one of the speakers stated he expects a learning curve as everyone implements the new procedures and gets comfortable with the process and there may be some hiccups along the way, but it should be business as usual within 6 months, we shall see.

One of the scary propositions is that the government oversight has built in severe penalties for lenders who don’t comply with the process, which could be why the banks are being overly cautious with their estimated closing times. I have attached a short article from the National Association of Realtors which states that early enforcement will be corrective and not punitive, which should help alleviate some of the stress and allow the lenders to perform and adjust as they go.

As a borrower, I suggest that you bring up your questions and concerns with your lender at the beginning of the process, because once the ball starts rolling it needs to roll on a straight line to the finish. One of the most important things to remember in this competitive Bay Area market is that all buyers are in the same boat, dealing with lenders and Escrow Officers who are now learning the process. Ask the questions and find out how comfortable and forthcoming your lender is with TRID.

 

OCTOBER 2, 2015

BY WILLIAM GILMARTINMARCIA SALKIN

The new TILA-RESPA Integrated Disclosure (TRID) rules for mortgage closings took effect for new loan applications on October 3.  The Director of the Consumer Financial Protection Bureau, on behalf of the six federal financial regulatory agencies, provided written assurances that the early enforcement of the new rules will take into account the good faith efforts of supervised entities.  The letter coincides with Director Cordray’s testimony on September 29 before the House Financial Services Committee that early enforcement efforts would be corrective and not punitive for a period of several months.

This letter is the result of NAR’s joining with numerous industry partners to request this written assurance so that lending institutions can proceed with closings under the new rule in a timely manner.

www.Realtor.orgTRID 1-page-001

Rates are down click on the link below: 

Mortgage Rates and Market Data

Homelessness Rising Among Families – Chuck Barberini Real Estate

https://www.barberinico.com/homelessness-r…ni-real-estate/

Homelessness Rising Among Families – Chuck Barberini Real Estate

Chuck Barberini Realtor – Contra Costa County Real Estate – Intero Walnut Creek

DAILY REAL ESTATE NEWS | FRIDAY, AUGUST 21, 2015

Homeless Shelter

Total homelessness has fallen 10 percent in the country since 2010, but among one segment, homelessness is on the rise. A new blog post from Harvard University’s Joint Center for Housing Studies notes that homelessness among families remains persistently high.

Read moreNever Taking a Home For Granted

More than a third of the total homeless population is made up of people in families, and more than 60 percent of this segment have children who are under the age of 18.

The number of homeless families living in shelters – such as emergency shelters, transitional housing programs, or safe havens – is growing. Nearly nine in 10 homeless people in families were staying in shelters in 2014.

In some pockets across the country, the number has risen to the highest on record, JCHS notes. For example, in New York City, homeless families are estimated to comprise the majority of homeless shelter residents, rising by 67 percent alone between January 2005 and January 2015, according to the advocacy group Coalition for the Homeless.

“Since the end of the recession, the affordable housing shortage has continued to play a major role in rising rates of family homelessness,” JCHS research assistant Irene Law notes on the Housing Perspectives blog. “Between 2010 and 2014, in high-cost locations where affordable rentals are in short supply, the number of homeless people in families increased substantially: by 50 percent in the District of Columbia, 41 percent in Massachusetts, and 22 percent in New York.  The problem is acute in urban areas across the country.”

Indeed, 45 percent of all homeless families lived in major cities in 2014. Nearly 20 percent lived in New York City, which had the highest concentration of homeless families nationwide at 41,633, followed by Los Angeles City and County at 6,229.

“The current inventory of permanent supportive housing largely targets single adults, especially those with chronic patterns of homelessness,” notes Lew at the JCHS blog. “Although the number of permanent supportive housing beds has increased significantly since 2007, a substantial share of permanent supportive housing beds are set aside for individuals rather than families.  The limited availability of subsidies for the services component, as well as higher operating expenses compared to affordable housing, present challenges for expanding the supply of permanent supportive housing.”

Source: “Despite Declines in Homelessness, Family Homelessness Persists,” Harvard University’s Joint Center for Housing Studies (Aug. 12, 2015)

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