CoreLogic released their Home Price Index Report for September 2013 this week with some very interesting and positive trends for the residential marketplace: Home prices increased by 12% in September 2013 (year over year); the 19th consecutive month of year over year home price gains. Home prices increased 0.2% month over month from August (0.3% excluding distressed sales data) The Home Price Index is at the highest level since May 2008 Home prices are projected to rise year over year in October 2013 as well “September marks the unofficial five-year anniversary of the start of the housing crisis” according to Dr Mark Fleming, Chief Economist at CoreLogic. “The five-year home price appreciation for all homes in the nation was 3.4%. While there is still room for improvement, the HPI is at the highest level since May 2008”.
Down with Down Payments
High end borrowers no longer need large down payments to get a mortgage. As the non-conforming market has rebounded and become more robust for the first time since 2007, more options are becoming available to the Jumbo buyer: 90% LTV to $850,000 on a 30 year Fixed Rate mortgage. Only 10% down.80% LTV to $4,000,000 on a 5/5 ARM. For the high end borrower, the ability to finance a $5M purchase with a $4M mortgage -> financing this deep has not been available for quite some time and as always, low down payment options are available to conforming borrowers as well with low (Fannie, Freddie, FHA) as well as no (VA, USDA) down payment options where applicable.
Searching for a home in Princeton? Here is a list of homes new to the market:
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