The Wall Street Journal

Stronger lure for prospective home buyers  With the monthly cost of owning a home more affordable now than at any point in the past 15 years, homeownership is becoming less expensive than renting in a growing number of cities.

Making sense of the story

• The Wall Street Journal's third-quarter survey of housing-market conditions in 28 of the nation's largest metropolitan areas found that home values declined in all but five markets compared with the second quarter, according to data from Zillow Inc.
• Meanwhile, rent levels have risen briskly across the country and mortgage rates, hovering around 4 percent, are the lowest in six decades.
• As a result, monthly mortgage payments on the median priced home - including taxes and insurance - are lower than the average rent levels in 12 metro areas, according to data compiled by Marcus & Millichap.
• Homeownership also is looking more affordable because after several years of declines, apartment rents will rise approximately 4 percent this year, and rents are poised to pick up even more momentum across the country next year, according to Marcus & Millichap.
• Affordability could continue to improve as prices slide even lower in coming months. Price declines are likely because the share of "distressed" sales, including bank-owned foreclosures, tend to rise in the winter, when traditional sales activity cools.

Read the full story
http://online.wsj.com/article/SB10001424052970203764804577060502694077494.html?mod=WSJ_RealEstate_LeftTopNews

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Santa Cruz County Real Estate Map
Click on the map to search by price, 

neighborhood, geographic region,
and type of property.   

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The New York Times

When a co-borrower has poor credit  In most cases, it is easier to qualify for a home mortgage by applying with another person - be it a spouse or partner, or even a close friend or sibling. But problems may arise if the other person's credit score is less than stellar.  

Builders see growth in add-ons for in-laws
A new kind of home is being marketed to multigenerational households, a category that increased by 30 percent from 2000 to 2010, according to the U.S. Census Bureau. Many builders offer models with second master bedrooms, kitchenettes, and separate entrances.

SmartMoney

New barriers to reverse mortgage

Changes are in store for the way reverse mortgages are processed that might make it more difficult for some borrowers to qualify.

Read the full story  http://blogs.smartmoney.com/encore/2011/11/22/new-barriers-to-reverse-mortgages/

The Los Angeles Times

Americans more confident about the economy  Americans' confidence in the economy in November bounced back to its highest level since July, the latest sign that consumers are beginning to feel more cheerful about spending during the holiday shopping season.

Mercury News

U.S. home market being held back by wary first-timers  The most likely first-time homeowners, young professionals and couples starting a family, won't buy these days. Or they can't. Or they already did during the housing boom. And their absence helps explain why the housing industry is still depressed.

Read the full story   

San Diego Union-Tribune

Los Angeles Times

One in five American homes "underwater"  An estimated 10.7 million households, or 22.1 percent of all homes with mortgages, had more debt on the properties than they were worth in the third quarter, according to CoreLogic.

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Get up-to-date local real estate

market trends & statistics 

go to www.StrouseRealtyGroup.com 

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of the red bar.

Foreclosures

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Talking Points

• Traditionally - and when they could afford to - parents have provided cash to their children for down payments on homes. But in these days of tightened credit guidelines, some parents take bigger steps to help their kids become homeowners at today's low interest rates.
• One of the primary factors parents should consider is their own financial picture.
• One financial expert recommends that parents first ensure they are adequately prepared to address their own needs and pending retirement before thinking of helping their children. Pulling money out of a retirement account to give assistance is not recommended