Friday, July 21, 2017

Fannie DTI to Raise to 50%

I read the article a few weeks ago. But waited to see if it was really happening.

Fannie Mae, biggest money for home mortgages, is raising the Debt-To-Income ratio to 50%.

Yes, from 45 to 50% on July 29th.

Debt-To-Income ratios are one of the calculations used in determining a borrowers ability to repay a mortgage.  How much monthly debt vs. how much monthly income. In other words, can they afford that new mortgage payment on their current salary and still have money left over to spend for daily life?

Well, Fannie Mae has researched and decided that some people can definitely handle that higher DTI ratio. Not everyone, but some. Their justification is it will help more people get into homes.

It's not just DTI though, as two different articles remind us, it's also down payment. They both pointed at the Millennials as the group they were targeting to help buy their first home. And, one distinctly made me laugh when it noted that Millennials are accused of overspending on 'avocado toast' (hey that stuff is tasty!), that they don't have the savings for a down payment anyways so how would the increased DTI really help them get into a home.


And, of course, the other talk swirling is will this lead to another housing bust due to mortgages being given to those that can't repay....this was the final line comment that I smirked at:

At least lenders bother to verify income, demand a down-payment, and check the DTI ratio. There's a big difference between asking the maximum standard for ability to pay and basically not measuring one's ability to pay at all. 

Friday, July 14, 2017

"Nextdoor" Neighborhood Site to Launch Real Estate Ads

I'm a Realtor and I don't even like this.

I belong to one in my community and I noticed an Open House posted on it. Hmmmm, well I do have an open house scheduled this weekend but I just don't want to annoy my neighbors.

I figure, honestly, if they are interested....they are already looking online at Realtor.com, Zillow, Redfin, Trulia....so many sites to find a home for sale and when they are being hosted open. Heck, I even post mine on Twitter & Facebook....which many of my associates do as well.

I like Nextdoor to help my neighbors, with finding dogs, locating packages, offering a referral for a dry cleaner...that kind of thing. If someone is sharing a thief noted on the security camera. Those are important. Maybe a garage sale.

But a House for Sale? An Open House? I just don't like it. And, it's just about the money. Realtors paying for a 'lead', paying for a prime spot on the feed. It's just about money.

I do believe that getting my listings in front of as many eyes as possible is absolutely valuable. Don't get me wrong on that. But, this Nextdoor site was set up to help neighbors, not to sell homes.

If me, a 15 year veteran Realtor doesn't want to see homes for sale on my neighborhoods Nextdoor site, how do the rest of you feel? I think a bunch of us will stop using it, and then there goes the great reason it was set up to begin with. Neighbors networking with and helping each other.

Tuesday, July 11, 2017

Nope, It's Not A Car Model!

It's the number of active listings today in Santa Clarita Valley
 & our surrounding communities.


Yep, as of July 11, 2017 @ 8:18 am we have 595 active listings in SCV. Acton to the East, Stevenson Ranch to the West. Newhall to the South, Castaic to the North....and everything in between.

Yes, it includes townhouses, condos, and single family homes!

610 currently in escrow. 397 closed escrow in the last 30 days.

I did this count on June 2nd, and active was 543. We have 10% more inventory.

Questions about our market or what your home is worth? Just give me a jingle!