Foreclosure starts and completions declined significantly in November. As lenders review internal procedures related to foreclosure processing, many foreclosure actions have been delayed leading to a 21 percent decrease in foreclosure activity in November. While this is the biggest month over month decrease since 2005, the decline is likely to be temporary as lenders eventually revise and resubmit foreclosure paperwork in the coming months.

Well-qualified borrowers with good loan-to-value ratios and steady employment are increasingly finding it difficult to refinance because of medical billing mistakes impacting their credit reports and scores, according to mortgage bankers and real estate agents.

Home sales decreased 8.1 percent in April in California compared with the same period a year ago, while the median price of an existing home rose 21 percent, according to C.A.R.’s April sales and price report.

“It’s likely that the state tax credit that went into effect May 1 created an incentive for many buyers to postpone closing escrow so they could take advantage of both the state and federal tax credits that were available,” said C.A.R. President Steve Goddard.  “We should see the pace of closed sales edge up in May and June as these tax-incentivized transactions close.

The median price of an existing, single-family detached home in California during April 2010 was $306,230, a 21 percent increase from the revised $253,110 median for April 2009, C.A.R. reported. The April 2010 median price increased 1.5 percent compared with March’s $301,790 median price.

“The strong demand for distressed properties continued unabated last month, and overall, inventory remains constrained in most segments of the market,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.  “Listings in April increased compared with a month earlier, typical for this time of year, as more sellers entered the market. At the $300,000 and below price point, the number of homes for sale is at a 3.3-month supply, well below the historical average of seven months.”

Nationwide foreclosure resales accounted for 22.2 percent of all homes sold in the United States of America.

Loan apps are up after the borrowers finished up with holidays.  Interest rates are still hovering around 5 to 6 percent.  Each time rates spike up borrowers and real estate practitioners wonder if they will come back down.

News blurbs calling for a  double dip in home prices are not accurate.   Real estate always slows down in the winter.  The foreclosure homes continue to sell like hot cakes with prices that are stable and rising.  The majority of homes selling are foreclosures and short sales.

For re-sale homes in the Sacramento the price is $177,000 as of November. That is up 2 thousand form last November.  This is the first year to year increase that hase been seen since May of 2006.

The week ending in 11/24/09 the interest rate on a thirty year fixed was 4.78 fees/points .07

Low interest rates keep demand for housing strong.  Competition for starter homes in fierce.  Multiple offers on affordable homes is common.

Homes priced correctly in decent neighborhoods frequently go pending within 10 days in the greater Sacramento area.

The demand is not only from buyers who need a home.  Real estate investors seeking a high return on their dollar are drawn to the real estate market.

Nation wide, seventy percent of new and existing homes are affordable to families earning the national median income of $64,000 per year.  Last year at this time only 56 percent of families nationwide could afford to buy a home.  The supply of foreclosure properties has helped homes become more affordable. The demand for affordable homes is strong as real estate investors and first time home buyers snatch up deals.

California first time home buyer affordability is 64 percent.