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Small Houses, Big Prices in Palo Alto, Calif.

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According to CNBC, Palo Alto, California, is considered one of the most highly sought-after communities in the San Francisco Bay area. That, of course, means there’s a huge demand for homes and a fairly low inventory, leading to small houses more aptly defined as bungalows selling for millions of dollars.

In one concrete example, a 990-square-foot home with two bedrooms and one bathroom recently sold for $3 million.

“Given what’s going on with income growth, unless there is a crash in tech, I see this as sustainable in the near term,” Nancy Wallace, a professor at the U.C. Berkeley Haas School of Business, said.

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Americans Feeling Like They’re Falling Behind on Cost of Living

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A new Pew Research Center study revealed this week that approximately 55 percent of Americans feel as though their income levels are falling behind the cost of living.

As CNN money points out, the median income – $51,939 – is just about even with where it was in 1995 after inflation.

The good news, however, is that the job market seems to be on the incline, with the majority of the study’s respondents saying they feel as though there are plenty of new jobs available to them.

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Report: Housing is 75% Back to Normal

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According to a new report from Trulia, the housing market in the United States continues to improve and is about 75 percent back to where it was when it began to crash in 2006.

As CNBC points out, sales and prices seem to be leading the recovery, with each about 10 to 15 points from where they sat this time last year.

“We’ll continue to see improvement in existing home sales, as I expect we’ll see more inventory this year,” said Jed Kolko, chief economist at Trulia. “That could further slow down price gains, but should add to the volume of sales.”

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News, Tips & Advice

National Association of Realtors Reveals Most and Least Popular Closing Dates in 2014

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In a new blog post published by the National Association of Realtors, director of housing statistics Danielle Hale and data analyst Hua Zhong outlined the year’s most and least popular closing dates in 2014.

First, the two experts revealed that Fridays and the last business day of the month were the most popular days, with Monday, June 30, taking home the top prize.

“In fact, these days are so popular that the top 25 closing days are expected to account for roughly a quarter of all home sale closings for the year.”

On the other end of the spectrum, it was noted that weekends and holidays are the least popular closing dates, but with those taken out of the equation, Jan. 2 was the slowest day of the year in 2014.

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News

Ocwen Financial Stands to Lose Mortgage License in California

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The LA Times reported on Tuesday that Ocwen Financial Corp. – one of the biggest mortgage servicers in the U.S. – could soon be losing its mortgage license in California.

According to the report, the state of California is seeking to suspend the company’s license, as it has reportedly failed to provide documentation proving that it complies with laws that have been put in place to protect homeowners.

The news immediately sent Ocwen stocks plunging, and in the morning trade hours alone, shares had dropped 26 percent.

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D.C. Area Housing Market Looking Up

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According to the Washington Post, home sales in the Washington, D.C., area picked up for the first time in year last month, suggesting that homebuyers may finally be starting to feel more confident in the status of the housing market.

The number of December 2014 home sales was also up 8 percent from December 2013, jumping from 3,644 to 3,937.

“The increase in sales could be attributed to the rise in inventory,” Post blogger Kathy Orton said. “Discouraged by the lack of selection, many would-be home buyers have been sitting on the sidelines. Now as more and more homes are being listed, sales have been rising.”

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Fannie Mae Survey Reveals Housing Attitudes Remain Cautious

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A new survey conducted by Fannie Mae has revealed that Americans continue to look at the housing market with a cautious outlook.

The news comes despite the fact that consumers continue to become increasingly more comfortable with the state of the economy.

“Despite consistent and robust job growth in recent months, consumer attitudes toward housing remained cautious in the final month of 2014,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Our survey results show that consumer housing sentiment has, on average, been moving sideways amid some improvement in the general view of the economy. It is not surprising that the housing sector continues to lag behind the rest of the economy given the long-term financial commitment that getting a mortgage represents. Many prospective homebuyers want to be certain that their personal finances can withstand potential downside risks to the economy.”

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News, Tips & Advice

Tax Tips for First-Time Homebuyers

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With tax season upon us, Redfin has just released a series of tips to help out first-time homebuyers when filing their tax returns for 2014.

According to the real estate news site, the main thing to keep in mind is that you may want to itemize your deductions.

“For many non-homeowners, the standard deduction is a no-brainer – it’s easy and you barely have anything you could itemize anyway,” blogger Scott Kelly explained. “Once you own a home, however, the math changes: You can deduct your mortgage interest payments. This deduction, in combination with other deductions, will often exceed the standard deduction.”

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All About Insurance, Health Insurance, News

NAHB Chairman Responds to Obama’s FHA Announcement

National Association of Homebuilders (NAHB) chairman Kevin Kelly released a statement on Thursday applauding President Barack Obama and the FHA for lowering annual mortgage insurance premiums.

“NAHB commends the President for taking action to reduce FHA’s annual mortgage insurance premiums by 50 basis points to 0.85 percent,” Kelly said. “Lower premiums will make home loans more affordable for qualified borrowers, particularly first-time buyers, and help to alleviate tight credit conditions in the mortgage market. This prudent course reflects a recent actuarial report that FHA is back in black and strengthening its financial health. The new premium structure will allow FHA to continue building its reserves.”

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FHA to Lower Cost of Mortgage Insurance

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President Barack Obama announced on Wednesday that the Federal Housing Administration will soon be cutting its annual insurance premiums from 1.35 percent to .85 percent.

“This action will make home ownership more affordable for over two million Americans in the next three years,” said Julián Castro, U.S. Department of Housing and Urban Development Secretary. “Since 2009, the Obama administration has taken bold steps to reduce risks in the mortgage market and to protect consumers. These efforts have made it possible to take this prudent measure while also ensuring FHA remains on a positive financial trajectory. By bringing our premiums down, we’re helping folks lift themselves up so they can open new doors of opportunity and strengthen their financial futures.”

Obama is set to further discuss housing market improvements during his scheduled speech in Phoenix on Thursday.

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