PRESIDENT SIGNS HISTORIC HOUSING BILL!!
On July 30, 2008 President Bush signed the "Housing and Economic Recovery Act of 2008."
THE REASON: To help owners with short term loans due to increase in interest rate to make refinancing more possible. Also, the secondary goal is to make financing more affordable for every type of borrower.
HOMEOWNERS: This legislation will assist an estimated 400,000 homeowners facing foreclosure, many of whom reside in California. It will allow them to refinance their current mortgages with a Federal Housing Administration (FHA)-backed loan. It will also hopefully boost sales by making loans for affordable to more buyers and thus increase lagging sales.
BUYERS: The new bill will permanently increase FHA, Fannie Mae, and Freddie Mac loan limits in high-cost areas to a loan limit of $625,500. It will allow many buyers, among them first-time home buyers, to enter the market and purchase homes.
WHAT ARE FANNIE MAE & FREDDIE MAC? Fannie Mae is the common name for the Federal National Mortgage Assn. based in Washington, DC. Freddie Mac is the common name for the Federal Home Loan Mortgage Corp. based in McLean, VA. They are publically traded mortgage companies created by the federal government. They are the two largest providers of financing for U.S. home loans. Mortgages are bought from banks, savings and loans and mortgage lenders. Some of the loans are sold as mortgage-backed securities that are federally guaranteed investments.
*By Pamela Horton, 7/30/08. Sources W. Brown, CAR President 7/30/08 and LATimes 7/20/07.
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COASTAL FORECLOSURE LISTING STATISTICS FOR:
Corona del Mar, Costa Mesa, Dana Point, Newport Beach, Newport Coast, Laguna Beach, San Clemente
Active Listings = 2,569, with Bank Conditions = 287
In Escrow Listings = 463, with Bank Conditions = 114
Sold from 01/01/08 = 1,563 with Bank Conditions = 207
*MLS 7/30/08
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COASTAL ZIP CODES BY MEDIAN SALES PRICE FOR JUNE 2007 COMPARED TO JUNE 2008:
% Change is from the same month last year.
City - # Sold - Median Sale Price - % change from 2007:
Balboa Island - 92662 - 1 - $2,125,000 - 113%
Capistrano Beach - 92624 - 4 - $735,000 - minus 40%
Corona del Mar - 92625 - 9 - $1,953,000 - 2%
Costa Mesa - 92626 - 21- $555,000 - minus 18%
Costa Mesa - 92627 - 7 - $512,000 - minus 38%
Dana Point - 92629 - 11 - $885,000 - 0%
Laguna Beach - 92651 - 15 - $1,550,000 - minus 13%
Laguna Niguel - 92677 - 52 - $750,000 - minus 17%
Newport Beach - 92660 - 14 - $1,325,000 - minus 22%
Newport Beach - 92661- 7 - $1,840,000 - minus 35%
Newport Beach - 92663 - 9 - $1,885,000 - minus 6%
Newport Coast - 92657 - 10 - $3,253,000 - 47%
San Clemente - 92672 - 24 - $805,000 - 4%
San Clemente - 92673 - 29 - $942,000 - minus 14%
*Sales information provided by DQNews/LATimes, 07/28/08.
