If you watch the Oprah show, or read her magazine, you will be familiar with her line..."What I know for sure". She follows this up with timely bits of advice for social/relational issues and also basic matters relating to the human experience. Without totally taking Oprah's idea, I have to say that there are things I know....Without a doubt!!!
My mom had her work cut out for her when I was young. If I did not know the answer to something, I would ask, ask, ask...if I didn't like the answer, or think it was sufficient, I would push for a better answer. If I didn't like the better answer, and it was the truth, I would figure out a way to change it -- to make it right. My husband says to me these days, "Why do you feel the need to right every wrong?" This is usually in reference to a social issue. In this same vein, as a REALTOR (R) I feel compelled to let people know what I know ....without a doubt. This is how I can make right the wrong perceptions people have regarding the real estate industry.
I have spent the last several weeks looking at property in Fontana. And I mean a lot of property. I have worked with bank owned property locally as well (Glendora, La Verne) and I am seeing a real trend....Prices are still getting matched with multiple offers, and bank owned homes are especially selling for above the listed price. Why is this? I thought the financial world was a mess!? Well, irregardless of this, the world still has valuable assets for investment. Besides philanthropic ventures, there is always cold, hard cash investment in real estate.
Do you remember A Charlie Brown Christmas? When Lucy is asked what she wants for Christmas she answers, very matter-of-factly, "real estate". Now, we know what a smart alec she was, but she was also right a lot of the time.
So, as the year ends, and the stock market continues to surprise us each day....one thing remains....investing in real estate is a very smart long-term decision. Prices are down now, but sales are up...and prices will make a rebound, this I know ...without a doubt!
Thursday, November 13, 2008
Friday, October 10, 2008
Financial Meltdown? Retirement Gone? What really matters?
People who know me well -- and what you will learn about me around a campfire is this: I love modern society, but I crave a slower, balanced and traditional life. Recently, when around a campfire and playing a game, each person was asked a question, including this: What are two of your all-time favorite television shows -- shows that if you could only watch those two, you would forever watch them (this was the question, in not so many words). Well, again, my immediate family knows that the shows I choose are shows I can watch repeatedly -- Leave it to Beaver and The Brady Bunch (and coming in at a close third, Twilight Zone). What does this say about me? Volumes, I suppose!
Let's start with the society it portrays is so ideal to me -- it is nonexistent. I wanted my children to see a show where the adults were not portrayed as either stupid, or mean and disrespected and discounted. Even Eddie Haskel calls the Cleavers Mr. and Mrs. and says, "geez" instead of many phrases used nowadays. June is near perfect, Ward is essentially everything a dad and husband should be (without real depth, but you know what I mean, right?). The discipline used on the boys is caring, considerate, logical and loving. The boys usually respond with intelligent thought and regret after reviewing their actions. What a perfect world!
Then there's the good old Brady Bunch! No one is perfect, each person has one flaw, it is a blended family - yet each problem encountered is resolved quickly. Again, very logical responses to each child's issues are played out. Again, each parent has a style all at once wise and firm, yet loving and thoughtful -- oh, the perfect parents! And, yes, another series I have season boxed sets for....
So, my two top shows have some common threads: Family, respect, logical relational boundaries, somewhat predictable and stable societies, and a big one: Their HOMES are the MAIN SET for these shows. The Brady house lives into infinity in its popularity -- the Beaver House is on a perfect "lane" in Universal Studios - so perfect its set has been used for countless shows since, including the street facade of Wisteria Lane on a current popular show. Both shows center around the character's lives - their homes are the hub.
Because it has been said that the truest statement of a society is reflected in its art (I do not know who said that, but it is a common perception in art and sociology), these homes' in the shows provide a snapshot of our society and the role a home plays. A simple truth emerges, our homes are forever reflected in the story of our lives.
Now, with current housing prices falling, homes either not purchased yet (out of fear or concern), homes purchased and regret brewing, homes lost and sadness prevailing, I implore you to reflect on this basic truth: Home is where your story begins, continues and is written. Regardless of what your net worth is today or in 5 years (And I would bet it is much more in 5 years) REGARDLESS of any of this -- let's keep in mind that our homes are the stage for our lives. Whether we own or rent, the rooms around us will forever play a part in our memories, our children's' memories and perhaps our grandchildren....so, don't let the economy take your comfort and security away from you. Remember that your home will never be lost in your story -- and you have a responsibility to your family and society in general to place your home in high regard -- after all, it is where your story begins.
Best - Stacy
Let's start with the society it portrays is so ideal to me -- it is nonexistent. I wanted my children to see a show where the adults were not portrayed as either stupid, or mean and disrespected and discounted. Even Eddie Haskel calls the Cleavers Mr. and Mrs. and says, "geez" instead of many phrases used nowadays. June is near perfect, Ward is essentially everything a dad and husband should be (without real depth, but you know what I mean, right?). The discipline used on the boys is caring, considerate, logical and loving. The boys usually respond with intelligent thought and regret after reviewing their actions. What a perfect world!
Then there's the good old Brady Bunch! No one is perfect, each person has one flaw, it is a blended family - yet each problem encountered is resolved quickly. Again, very logical responses to each child's issues are played out. Again, each parent has a style all at once wise and firm, yet loving and thoughtful -- oh, the perfect parents! And, yes, another series I have season boxed sets for....
So, my two top shows have some common threads: Family, respect, logical relational boundaries, somewhat predictable and stable societies, and a big one: Their HOMES are the MAIN SET for these shows. The Brady house lives into infinity in its popularity -- the Beaver House is on a perfect "lane" in Universal Studios - so perfect its set has been used for countless shows since, including the street facade of Wisteria Lane on a current popular show. Both shows center around the character's lives - their homes are the hub.
Because it has been said that the truest statement of a society is reflected in its art (I do not know who said that, but it is a common perception in art and sociology), these homes' in the shows provide a snapshot of our society and the role a home plays. A simple truth emerges, our homes are forever reflected in the story of our lives.
Now, with current housing prices falling, homes either not purchased yet (out of fear or concern), homes purchased and regret brewing, homes lost and sadness prevailing, I implore you to reflect on this basic truth: Home is where your story begins, continues and is written. Regardless of what your net worth is today or in 5 years (And I would bet it is much more in 5 years) REGARDLESS of any of this -- let's keep in mind that our homes are the stage for our lives. Whether we own or rent, the rooms around us will forever play a part in our memories, our children's' memories and perhaps our grandchildren....so, don't let the economy take your comfort and security away from you. Remember that your home will never be lost in your story -- and you have a responsibility to your family and society in general to place your home in high regard -- after all, it is where your story begins.
Best - Stacy
Tuesday, September 30, 2008
Economic Turmoil Causes Concern: But good news and hope always prevail!
So, we have all heard the scary, negative facts right now regarding the country's economic situation. Some good news I have found:
Stocks are staging a strong recovery rally today, after an utterly awful session Monday. The markets, which had been up all day, surged even higher this afternoon on renewed hopes that Congress will pass a financial rescue plan this week.
At 1:43 p.m. ET, the Dow Jones Industrial Average was up 342 points to 10,707 after plunging a whopping 778 points Monday, its worst one-day point drop in its storied 100-plus-year history.
This afternoon, the Nasdaq Composite Index was up 77 points to 2,061 after plunging 200 points Monday. The Standard & Poor's 500 Index had added 45 points to 1,152 after losing 107 points in yesterday's session, the biggest drop ever for the S&P 500(From Msn.com)
August Home Sales are UP from 2007:
Glendora 91740:17 91741: 11
San Dimas: 7
La Verne: 18 !!!!!!!!!!1
Claremont: 34 !!!!!
Covina: 91722: 24; 91723: 7; 91724: 17!!!!!!!!!!!!!
(Data taken from county records)
Last, I still believe real estate is a wonderful investment. Real Estate is a safe place to "park" your funds, enjoy tax benefits and you have an almost guaranteed long-term return on your investment. Although prices have dropped, I still have not seen them at 2002 levels. If we looked at sales from 2002, we would not be able to compare and show the same price for a like property in Glendora. With the prices still lower than a few years ago, interest rates good and FHA loans a good option, this is still a wonderful time to invest in real estate.
Please call me or post any comments you may have. Also, any questions you have are welcome. These are uneasy times, but things will improve in the long-run -- they always do!
Honesty, Integrity...Service you can TRUST!
Stacy
Stocks are staging a strong recovery rally today, after an utterly awful session Monday. The markets, which had been up all day, surged even higher this afternoon on renewed hopes that Congress will pass a financial rescue plan this week.
At 1:43 p.m. ET, the Dow Jones Industrial Average was up 342 points to 10,707 after plunging a whopping 778 points Monday, its worst one-day point drop in its storied 100-plus-year history.
This afternoon, the Nasdaq Composite Index was up 77 points to 2,061 after plunging 200 points Monday. The Standard & Poor's 500 Index had added 45 points to 1,152 after losing 107 points in yesterday's session, the biggest drop ever for the S&P 500(From Msn.com)
August Home Sales are UP from 2007:
Glendora 91740:17 91741: 11
San Dimas: 7
La Verne: 18 !!!!!!!!!!1
Claremont: 34 !!!!!
Covina: 91722: 24; 91723: 7; 91724: 17!!!!!!!!!!!!!
(Data taken from county records)
Last, I still believe real estate is a wonderful investment. Real Estate is a safe place to "park" your funds, enjoy tax benefits and you have an almost guaranteed long-term return on your investment. Although prices have dropped, I still have not seen them at 2002 levels. If we looked at sales from 2002, we would not be able to compare and show the same price for a like property in Glendora. With the prices still lower than a few years ago, interest rates good and FHA loans a good option, this is still a wonderful time to invest in real estate.
Please call me or post any comments you may have. Also, any questions you have are welcome. These are uneasy times, but things will improve in the long-run -- they always do!
Honesty, Integrity...Service you can TRUST!
Stacy
Thursday, September 18, 2008
Stock Market is up -- What now?
As many of you may already know, it has been a whirlwind week for Wall Street. What is worrisome is that what happens on Wall Street does affect the folks on Main Street (i.e. average American's). Many people have come through open house's, called into our office and stopped to ask us REALTOR (S) what we think about the current housing market, what we think about Wall Street and the bailouts and the bank failures ....and all of that negative news. Responsible, repsected professional REALTORS (R) will all tell you this is something we all watch closely, but that regardless of the topsy-turvy bank situations and the misgivings people are having about the stock market, real estate sells are UP. The prices are down, but the existing home sales has exceeded that of last years' numbers.
Stability in the housing market is coming. The insecurity first time home buyers and also current homeowners have had can be relaxed. Here's what the professional REALTORS (R) all know, and what we are trying to tell the world:
1. Price your house right to sell fast. We are seeing multiple offer situations in homes priced right. This may be less than what you would have done last year, but it still will sell. Remember, if you have not already spent the dollars you perceived as yours through equity, you have lost nothing.
2. Sellers are looking for good offers - not total low-ball offers. Which means, buyers, do not expect a total liquidation of housing through bargain basement prices. If you are looking for the bottom of the market -- stop! You will not know the bottom until prices go back up. Remember: Prices have dropped, but not everyone selling is in a default situation. Those sellers that can wait, will.
3. And those sellers that wait, if you do not want to sell now, for your perceived price, and you can hold on a 2-3 more years....Guess what! I think you will be safe.
4. Buyers: If you have been waiting, things do not get better! Prices are low, interest rates are historically low (still BELOW 6%) and FHA loans are big. Coupled with the federal tax credit for first time home buyers, this is the best year to buy -- better thany any in recent memory.
5. Buyers and Sellers: Remember - a home is a long-term investment. Do not expect to "cash out" big if you are selling now and bought less than 5 years ago. Buyers, do not expect that golden deal -- that needle in the haystack foreclosure -- the deals are out there -- but they are getting multiple offers. The time is now! Do not hesitate!
As always, if you or anyone you know needs any real estate advice, please send them my way.
Honesty, Integrity...Service you can TRUST!!!!
Stacy
Stability in the housing market is coming. The insecurity first time home buyers and also current homeowners have had can be relaxed. Here's what the professional REALTORS (R) all know, and what we are trying to tell the world:
1. Price your house right to sell fast. We are seeing multiple offer situations in homes priced right. This may be less than what you would have done last year, but it still will sell. Remember, if you have not already spent the dollars you perceived as yours through equity, you have lost nothing.
2. Sellers are looking for good offers - not total low-ball offers. Which means, buyers, do not expect a total liquidation of housing through bargain basement prices. If you are looking for the bottom of the market -- stop! You will not know the bottom until prices go back up. Remember: Prices have dropped, but not everyone selling is in a default situation. Those sellers that can wait, will.
3. And those sellers that wait, if you do not want to sell now, for your perceived price, and you can hold on a 2-3 more years....Guess what! I think you will be safe.
4. Buyers: If you have been waiting, things do not get better! Prices are low, interest rates are historically low (still BELOW 6%) and FHA loans are big. Coupled with the federal tax credit for first time home buyers, this is the best year to buy -- better thany any in recent memory.
5. Buyers and Sellers: Remember - a home is a long-term investment. Do not expect to "cash out" big if you are selling now and bought less than 5 years ago. Buyers, do not expect that golden deal -- that needle in the haystack foreclosure -- the deals are out there -- but they are getting multiple offers. The time is now! Do not hesitate!
As always, if you or anyone you know needs any real estate advice, please send them my way.
Honesty, Integrity...Service you can TRUST!!!!
Stacy
Tuesday, September 9, 2008
How will the Fed Take Over of Fannie and Freddie Affect You? Read on...
This is a posting from MSN Money and Bankrate.com
How the Fannie and Freddie takeover affects you
The feds want mortgages to remain available at good rates to creditworthy borrowers. That's good news. But don't expect easier jumbo mortgages or home equity loans.
The government takeover of Fannie Mae and Freddie Mac is designed to put downward pressure on mortgage rates and to ensure that home loans remain available.
Those goals are made crystal clear in the statements made by public officials.
The primary mission of the two mortgage giants "now will be to proactively work to increase the availability of mortgage finance," says James Lockhart, who will temporarily govern Fannie and Freddie.
Lockhart, head of the Federal Housing Finance Agency, adds that his agency will examine Fannie's and Freddie's fees "with an eye toward mortgage affordability."
Treasury Secretary Henry Paulson says the government has three objectives: "market stability, mortgage availability and taxpayer protection." That's another signal that the government wants mortgages to remain available, at good rates, to borrowers with a low risk of default.
Jim Sahnger, a mortgage broker with Palm Beach Financial Network in Stuart, Fla., says, "The good news for the consumer is that money will still continue to flow, provided you have the ability to qualify."
Dean Baker, an economist with the Center for Economic and Policy Research, a think tank in Washington, D.C., says, "I think that the immediate impact will be somewhat positive. You'll see some drop in mortgage rates because it'll decrease the uncertainty" that had pushed mortgage rates up this summer.
Baker says he can imagine a drop in mortgage rates of around a quarter of a percentage point, give or take about 5 basis points. A basis point is one-hundredth of a percentage point. "It's something," he says. "It's not going to make a huge difference."
It's hard to guess the timing of such a rate decrease. Baker says it might happen as soon as today, but possibly later, as people in the mortgage industry scratch their heads and assess the federal government's plan. "Probably we're talking inside of two weeks," Baker says.
Sahnger agrees that rates will fall soon. "There will be an immediate impact as far as rates," he says. "I think rates are going to improve modestly at the beginning."
Mortgage rates are expected to fall because the Treasury Department will buy mortgage-backed securities. Here's why rates would fall as a result of the Treasury buying mortgage-backed securities:
When investors buy bonds, they have a wealth of choices. They can buy U.S. Treasury bills and notes, or corporate debt, or bonds from state and local governments. Or they can buy mortgage-backed securities, which behave much like bonds. Mortgage-backed securities are known as MBS in industry shorthand.
Fannie and Freddie guarantee the mortgage-backed securities that they issue, and those securities are deemed quite safe as investments. Not as safe as Treasury notes, but relatively safe. Fannie and Freddie are government-sponsored enterprises, or GSEs, and for decades they had implicit government backing. That backing is now explicit.
In the past few months, investors have rushed to the safety of Treasury notes and haven't been as eager to buy mortgage-backed securities. The lessened demand caused the prices of mortgage-backed securities to go down. When bond prices fall, bond yields rise, and that's what happened with mortgage-backed securities. As yields went up, so did mortgage rates. The difference, or spread, widened between Treasury yields and mortgage-backed securities.
Now that the Treasury will buy mortgage-backed securities, their prices should rise because of the greater demand. (The same thing would happen if the federal government bought, say, boxcar loads of sugar. You would expect sugar prices to go up.) When bond prices rise, yields drop -- so mortgage rates should follow.
Lockhart, whose department will run Fannie and Freddie, describes this succinctly when he says, "As the GSEs have grappled with their difficulties, we've seen mortgage rate spreads to Treasurys widen, making mortgages less affordable for homebuyers. While the GSEs are expected to moderately increase the size of their portfolios over the next 15 months through prudent mortgage purchases, complementary government efforts can aid mortgage affordability. (The) Treasury will begin this new program later this month, investing in new GSE MBS."
The government's action will have a beneficial effect on some mortgages, but not all. It will have little or no impact on jumbo mortgages -- home loans for large amounts. (The definition of a jumbo loan varies, depending on house prices in each metro area. A jumbo is a loan of more than $417,000 in much of the country, and is higher in more expensive housing markets -- up to $729,750 in places such as Los Angeles.)
Because jumbo mortgages are perceived as riskier, their rates have been unusually high for the past year. Historically, jumbo rates had hovered about a quarter of a percentage point above the rates for mortgages backed by Fannie and Freddie. Now they're about a full percentage point higher, and that gap is unlikely to narrow soon.
The government's bailout of Fannie and Freddie won't affect rates on home equity loans or home equity lines of credit, either.
This article was reported and written by Holden Lewis for Bankrate.com.
How the Fannie and Freddie takeover affects you
The feds want mortgages to remain available at good rates to creditworthy borrowers. That's good news. But don't expect easier jumbo mortgages or home equity loans.
The government takeover of Fannie Mae and Freddie Mac is designed to put downward pressure on mortgage rates and to ensure that home loans remain available.
Those goals are made crystal clear in the statements made by public officials.
The primary mission of the two mortgage giants "now will be to proactively work to increase the availability of mortgage finance," says James Lockhart, who will temporarily govern Fannie and Freddie.
Lockhart, head of the Federal Housing Finance Agency, adds that his agency will examine Fannie's and Freddie's fees "with an eye toward mortgage affordability."
Treasury Secretary Henry Paulson says the government has three objectives: "market stability, mortgage availability and taxpayer protection." That's another signal that the government wants mortgages to remain available, at good rates, to borrowers with a low risk of default.
Jim Sahnger, a mortgage broker with Palm Beach Financial Network in Stuart, Fla., says, "The good news for the consumer is that money will still continue to flow, provided you have the ability to qualify."
Dean Baker, an economist with the Center for Economic and Policy Research, a think tank in Washington, D.C., says, "I think that the immediate impact will be somewhat positive. You'll see some drop in mortgage rates because it'll decrease the uncertainty" that had pushed mortgage rates up this summer.
Baker says he can imagine a drop in mortgage rates of around a quarter of a percentage point, give or take about 5 basis points. A basis point is one-hundredth of a percentage point. "It's something," he says. "It's not going to make a huge difference."
It's hard to guess the timing of such a rate decrease. Baker says it might happen as soon as today, but possibly later, as people in the mortgage industry scratch their heads and assess the federal government's plan. "Probably we're talking inside of two weeks," Baker says.
Sahnger agrees that rates will fall soon. "There will be an immediate impact as far as rates," he says. "I think rates are going to improve modestly at the beginning."
Mortgage rates are expected to fall because the Treasury Department will buy mortgage-backed securities. Here's why rates would fall as a result of the Treasury buying mortgage-backed securities:
When investors buy bonds, they have a wealth of choices. They can buy U.S. Treasury bills and notes, or corporate debt, or bonds from state and local governments. Or they can buy mortgage-backed securities, which behave much like bonds. Mortgage-backed securities are known as MBS in industry shorthand.
Fannie and Freddie guarantee the mortgage-backed securities that they issue, and those securities are deemed quite safe as investments. Not as safe as Treasury notes, but relatively safe. Fannie and Freddie are government-sponsored enterprises, or GSEs, and for decades they had implicit government backing. That backing is now explicit.
In the past few months, investors have rushed to the safety of Treasury notes and haven't been as eager to buy mortgage-backed securities. The lessened demand caused the prices of mortgage-backed securities to go down. When bond prices fall, bond yields rise, and that's what happened with mortgage-backed securities. As yields went up, so did mortgage rates. The difference, or spread, widened between Treasury yields and mortgage-backed securities.
Now that the Treasury will buy mortgage-backed securities, their prices should rise because of the greater demand. (The same thing would happen if the federal government bought, say, boxcar loads of sugar. You would expect sugar prices to go up.) When bond prices rise, yields drop -- so mortgage rates should follow.
Lockhart, whose department will run Fannie and Freddie, describes this succinctly when he says, "As the GSEs have grappled with their difficulties, we've seen mortgage rate spreads to Treasurys widen, making mortgages less affordable for homebuyers. While the GSEs are expected to moderately increase the size of their portfolios over the next 15 months through prudent mortgage purchases, complementary government efforts can aid mortgage affordability. (The) Treasury will begin this new program later this month, investing in new GSE MBS."
The government's action will have a beneficial effect on some mortgages, but not all. It will have little or no impact on jumbo mortgages -- home loans for large amounts. (The definition of a jumbo loan varies, depending on house prices in each metro area. A jumbo is a loan of more than $417,000 in much of the country, and is higher in more expensive housing markets -- up to $729,750 in places such as Los Angeles.)
Because jumbo mortgages are perceived as riskier, their rates have been unusually high for the past year. Historically, jumbo rates had hovered about a quarter of a percentage point above the rates for mortgages backed by Fannie and Freddie. Now they're about a full percentage point higher, and that gap is unlikely to narrow soon.
The government's bailout of Fannie and Freddie won't affect rates on home equity loans or home equity lines of credit, either.
This article was reported and written by Holden Lewis for Bankrate.com.
Tuesday, September 2, 2008
Happy (almost) Fall!
Labor Day is officially over and the traditional countdown to fall -- then Christmas -- has begun in our house! Target and Longs are slowly bringing out the holiday candy! It is easy to celebrate when holidays are approaching -- and there is still much to celebrate with the new housing bill.
Read below in my past posts for specific information regarding many great incentives for first-time buyers. If you have been on the side-lines - waiting for the prices to "bottom-out" - rest assured, they are very low and more people are taking note. There is a saying in real estate -- "One never knows the bottom of the market until prices start to go back up". Now is the best time to think seriously if you would like to buy and take advantage of the many TAX benefits! Some people never see an income tax RETURN until they are homeowners! This may be the time to guarantee that spring-time return.
Owning a home in southern California is at times difficult to keep up with -- but I also know rents are NOT declining -- and there are not tax benefits to renters. We have a wonderful community and it makes sense to invest in it!
Call me or email me with your housing questions! I am always here to help!
Happy Fall -- Happy Househunting -- Happy tax deductions!
Stacy
Honesty, Integrity...Service you can TRUST!
Read below in my past posts for specific information regarding many great incentives for first-time buyers. If you have been on the side-lines - waiting for the prices to "bottom-out" - rest assured, they are very low and more people are taking note. There is a saying in real estate -- "One never knows the bottom of the market until prices start to go back up". Now is the best time to think seriously if you would like to buy and take advantage of the many TAX benefits! Some people never see an income tax RETURN until they are homeowners! This may be the time to guarantee that spring-time return.
Owning a home in southern California is at times difficult to keep up with -- but I also know rents are NOT declining -- and there are not tax benefits to renters. We have a wonderful community and it makes sense to invest in it!
Call me or email me with your housing questions! I am always here to help!
Happy Fall -- Happy Househunting -- Happy tax deductions!
Stacy
Honesty, Integrity...Service you can TRUST!
Monday, August 25, 2008
First Time Home Buyer Tax Credit is RETROACTIVE
If you or anyone you know has purchased a home anytime after April 9, 2008 and is a first-time home buyer (which is defined in this case as an individual who has not owned a primary home at any time during the past three years) THIS IS A WONDERFUL INCENTIVE!!!
Please go to this website for more information on the RETROACTIVE first-time home-buyers tax credit of up to $7,500! http://www.era.com/erabuy/homebuyers_taxcredit.html
This is yet another incentive for first time homebuyers!
Please go to this website for more information on the RETROACTIVE first-time home-buyers tax credit of up to $7,500! http://www.era.com/erabuy/homebuyers_taxcredit.html
This is yet another incentive for first time homebuyers!
Tuesday, August 19, 2008
A few FHA Facts
The following information is taken from FHA.gov
Sustainable, Affordability Homeownership
Hope for Homeowners maintains FHA’s long-standing requirement that new loans be based on a family’s long-term ability to repay the mortgage. FHA only allows owner-occupants to be eligible for FHA-insured mortgages. Borrowers must also meet the following eligibility criteria:
Their mortgage must have originated on or before January 1, 2008;
Their mortgage debt-to-income must be at least 31 percent;
They cannot afford their current loan;
They did not intentionally miss mortgage payments; and
They do not own second homes.
Features of FHA-insured loans under the new program include:
30-year, fixed rate mortgage;
Maximum 90 percent loan-to-value ratio;
No prepayment penalties;
$550,440 maximum mortgage amount;
Extinguishment of any subordinate liens; and
New home appraisals from FHA-approved appraisers.
HUD, Treasury, FDIC and the Federal Reserve will form the Congressionally-mandated Board of Directors and work together to establish additional program standards.
Voluntary Lender Participation
FHA will continue to offer lenders an alternative to foreclosing on borrowers. Similar to FHASecure’s recent expansion, lenders will be encouraged to write-down the outstanding mortgage principal balances to 90 percent of the new value of the property. In many cases, reductions in principle will cost lenders less than the losses associated with foreclosure.
Market Stability and Liquidity
By continuing to slow the rate of foreclosures, this program will support FHA’s existing effort to stabilize local housing markets. From September 2007 to June 2008, FHA has guaranteed more than $93 billion of mortgage capital.
Funding
FHA will insure up to $300 billion in new loans. Borrowers will pay an upfront premium of 3 percent of the original mortgage amount and an annual premium of 1.5 percent of the outstanding mortgage amount. Any additional costs incurred by FHA will be reimbursed by Fannie Mae and Freddie Mac.
Program Timeline
The program will last from October 1, 2008 through September 30, 2011. Since September 2007, FHASecure has helped more than 290,000 families obtain safer, more affordable mortgages. FHASecure is on pace to help 500,000 families by the end of the year.
Sustainable, Affordability Homeownership
Hope for Homeowners maintains FHA’s long-standing requirement that new loans be based on a family’s long-term ability to repay the mortgage. FHA only allows owner-occupants to be eligible for FHA-insured mortgages. Borrowers must also meet the following eligibility criteria:
Their mortgage must have originated on or before January 1, 2008;
Their mortgage debt-to-income must be at least 31 percent;
They cannot afford their current loan;
They did not intentionally miss mortgage payments; and
They do not own second homes.
Features of FHA-insured loans under the new program include:
30-year, fixed rate mortgage;
Maximum 90 percent loan-to-value ratio;
No prepayment penalties;
$550,440 maximum mortgage amount;
Extinguishment of any subordinate liens; and
New home appraisals from FHA-approved appraisers.
HUD, Treasury, FDIC and the Federal Reserve will form the Congressionally-mandated Board of Directors and work together to establish additional program standards.
Voluntary Lender Participation
FHA will continue to offer lenders an alternative to foreclosing on borrowers. Similar to FHASecure’s recent expansion, lenders will be encouraged to write-down the outstanding mortgage principal balances to 90 percent of the new value of the property. In many cases, reductions in principle will cost lenders less than the losses associated with foreclosure.
Market Stability and Liquidity
By continuing to slow the rate of foreclosures, this program will support FHA’s existing effort to stabilize local housing markets. From September 2007 to June 2008, FHA has guaranteed more than $93 billion of mortgage capital.
Funding
FHA will insure up to $300 billion in new loans. Borrowers will pay an upfront premium of 3 percent of the original mortgage amount and an annual premium of 1.5 percent of the outstanding mortgage amount. Any additional costs incurred by FHA will be reimbursed by Fannie Mae and Freddie Mac.
Program Timeline
The program will last from October 1, 2008 through September 30, 2011. Since September 2007, FHASecure has helped more than 290,000 families obtain safer, more affordable mortgages. FHASecure is on pace to help 500,000 families by the end of the year.
Homeowner Tax Breaks as reported by the LA Times
Homeowners get tax breaks in housing bill
The Housing and Economic Recovery Act doesn't only stave off foreclosures and help troubled lenders. First-time buyers, older homeowners and others also benefit.
Kathy M. Kristof
Personal Finance
August 10, 2008
Tax breaks for owning real estate are undergoing another shift, thanks to the Housing and Economic Recovery Act recently signed into law by President Bush.
The main focus of the bill was on its provisions to stave off foreclosures and to bail out mortgage giants Freddie Mac and Fannie Mae. But there are also measures of interest to people with vacation homes, first-time home buyers or those planning to buy a home who haven't owned one in three years, and homeowners who don't itemize their federal tax returns.
Here's a rundown:
Vacation homes
The housing bill closes a provision that some people with vacation homes had used to avoid paying tax on the appreciation realized on their vacation properties when they sell.
You might wonder: What does this have to do with solving the housing crisis? Nothing, really; it is designed to raise revenue and help pay for the other tax breaks in the bill.
The provision has allowed someone with a vacation home to get a tax break, providing he or she is willing to live in it for at least two years before selling it.
Under current law, taxpayers can exclude up to $250,000 per person, or $500,000 per couple, in gains on the sale of a personal residence from federal tax.
Because tax law defines a personal residence as the place where the taxpayer has lived for two of the last five years, people with vacation homes can move in for two years, sell the home and then move back to their primary residence.
But starting Jan. 1, 2009, taxpayers can exclude only the portion of the gain that corresponds to the "qualified use" of the home. That means the taxpayer will have to divide the number of years lived in the residence by the number of years it was owned to figure out what percentage of the gain is tax-free, said Mark Luscombe, principal tax analyst with CCH Inc., a Riverwoods, Ill.-based publisher of tax information.
Here's an example: If you bought the house in 2009 and owned it for 10 years but lived in it for just two, only two-tenths of the gain would be tax-free.
Even if the home appreciated in uneven fashion (as homes often do), the tax law says you have to act as if the appreciation was earned evenly throughout the time period that you owned it.
The good news is that Congress also put in a generous transition period, he said. Only the period following the law's 2009 start date will count in the "non-qualified use" portion of the home-sale calculation.
So if you bought the house in 2000 and moved into it in 2010, selling in 2012, you would pay tax on only two years of appreciation after the law's start date but before you moved in -- the non-qualified use in 2009 and 2010.
That makes it time to get packing, said Bob Scharin, senior tax analyst with the tax and accounting business of Thomson Reuters, about the change: "If you move in before the end of 2008, the law will not affect you at all," he said.
A 'credit' you must repay
The housing act also ushered in two new tax breaks for homeowners.
The most widely touted was one that provides a tax "credit" of $7,500 for couples and $3,750 for married couples filing separately for first-time home buyers. But the credit is really an interest-free loan, not a credit in the traditional sense of the word, Luscombe said. It must be paid back in equal installments over a 15-year period.
Saying the credit is for first-time home buyers is also a misnomer. Anyone who hasn't owned a home for three years before purchasing the home can qualify.
Before that "look-back period," they could have been Donald Trump and it still wouldn't matter.
"You could have owned many homes in your lifetime, as long as you didn't own a home in the three-year period prior to the purchase of the home to which the credit will apply," Scharin said.
There are income limits, however. Only singles earning less than $75,000 annually and married couples earning less than $150,000 annually can claim the full credit.
Once income exceeds those thresholds, the maximum credit is reduced until it is eliminated for singles earning $95,000 and married couples with $170,000 or more in income.
The credit is also temporary. It is available only for homes purchased April 9, 2008 through July 1, 2009.
One-time deduction
There are fewer strings attached to a new tax deduction for homeowners who don't itemize deductions. The tax law gives non-itemizers a write-off to compensate them for any state and local real estate taxes they pay. The deduction is the lesser of the amount of that tax, or $500 for single filers or $1,000 for married couples.
But this deduction is available for only one year -- 2008.
This deduction is aimed at helping older homeowners, who may have already paid off their mortgages and thus don't have enough deductible expenses to itemize. It is meant to help them through today's tough economy.
Kathy M. Kristof welcomes your comments but regrets that she cannot respond to every question. Write to Personal Finance, Business Section, Los Angeles Times, 202 W. 1st St., Los Angeles, CA 90012, or e-mail kathy.kristof @latimes.com. For past Personal Finance columns, visit latimes.com/kristof.
The Housing and Economic Recovery Act doesn't only stave off foreclosures and help troubled lenders. First-time buyers, older homeowners and others also benefit.
Kathy M. Kristof
Personal Finance
August 10, 2008
Tax breaks for owning real estate are undergoing another shift, thanks to the Housing and Economic Recovery Act recently signed into law by President Bush.
The main focus of the bill was on its provisions to stave off foreclosures and to bail out mortgage giants Freddie Mac and Fannie Mae. But there are also measures of interest to people with vacation homes, first-time home buyers or those planning to buy a home who haven't owned one in three years, and homeowners who don't itemize their federal tax returns.
Here's a rundown:
Vacation homes
The housing bill closes a provision that some people with vacation homes had used to avoid paying tax on the appreciation realized on their vacation properties when they sell.
You might wonder: What does this have to do with solving the housing crisis? Nothing, really; it is designed to raise revenue and help pay for the other tax breaks in the bill.
The provision has allowed someone with a vacation home to get a tax break, providing he or she is willing to live in it for at least two years before selling it.
Under current law, taxpayers can exclude up to $250,000 per person, or $500,000 per couple, in gains on the sale of a personal residence from federal tax.
Because tax law defines a personal residence as the place where the taxpayer has lived for two of the last five years, people with vacation homes can move in for two years, sell the home and then move back to their primary residence.
But starting Jan. 1, 2009, taxpayers can exclude only the portion of the gain that corresponds to the "qualified use" of the home. That means the taxpayer will have to divide the number of years lived in the residence by the number of years it was owned to figure out what percentage of the gain is tax-free, said Mark Luscombe, principal tax analyst with CCH Inc., a Riverwoods, Ill.-based publisher of tax information.
Here's an example: If you bought the house in 2009 and owned it for 10 years but lived in it for just two, only two-tenths of the gain would be tax-free.
Even if the home appreciated in uneven fashion (as homes often do), the tax law says you have to act as if the appreciation was earned evenly throughout the time period that you owned it.
The good news is that Congress also put in a generous transition period, he said. Only the period following the law's 2009 start date will count in the "non-qualified use" portion of the home-sale calculation.
So if you bought the house in 2000 and moved into it in 2010, selling in 2012, you would pay tax on only two years of appreciation after the law's start date but before you moved in -- the non-qualified use in 2009 and 2010.
That makes it time to get packing, said Bob Scharin, senior tax analyst with the tax and accounting business of Thomson Reuters, about the change: "If you move in before the end of 2008, the law will not affect you at all," he said.
A 'credit' you must repay
The housing act also ushered in two new tax breaks for homeowners.
The most widely touted was one that provides a tax "credit" of $7,500 for couples and $3,750 for married couples filing separately for first-time home buyers. But the credit is really an interest-free loan, not a credit in the traditional sense of the word, Luscombe said. It must be paid back in equal installments over a 15-year period.
Saying the credit is for first-time home buyers is also a misnomer. Anyone who hasn't owned a home for three years before purchasing the home can qualify.
Before that "look-back period," they could have been Donald Trump and it still wouldn't matter.
"You could have owned many homes in your lifetime, as long as you didn't own a home in the three-year period prior to the purchase of the home to which the credit will apply," Scharin said.
There are income limits, however. Only singles earning less than $75,000 annually and married couples earning less than $150,000 annually can claim the full credit.
Once income exceeds those thresholds, the maximum credit is reduced until it is eliminated for singles earning $95,000 and married couples with $170,000 or more in income.
The credit is also temporary. It is available only for homes purchased April 9, 2008 through July 1, 2009.
One-time deduction
There are fewer strings attached to a new tax deduction for homeowners who don't itemize deductions. The tax law gives non-itemizers a write-off to compensate them for any state and local real estate taxes they pay. The deduction is the lesser of the amount of that tax, or $500 for single filers or $1,000 for married couples.
But this deduction is available for only one year -- 2008.
This deduction is aimed at helping older homeowners, who may have already paid off their mortgages and thus don't have enough deductible expenses to itemize. It is meant to help them through today's tough economy.
Kathy M. Kristof welcomes your comments but regrets that she cannot respond to every question. Write to Personal Finance, Business Section, Los Angeles Times, 202 W. 1st St., Los Angeles, CA 90012, or e-mail kathy.kristof @latimes.com. For past Personal Finance columns, visit latimes.com/kristof.
Homeowner Tax Breaks as reported by the LA Times
Homeowners get tax breaks in housing bill
The Housing and Economic Recovery Act doesn't only stave off foreclosures and help troubled lenders. First-time buyers, older homeowners and others also benefit.
Kathy M. Kristof
Personal Finance
August 10, 2008
Tax breaks for owning real estate are undergoing another shift, thanks to the Housing and Economic Recovery Act recently signed into law by President Bush.
The main focus of the bill was on its provisions to stave off foreclosures and to bail out mortgage giants Freddie Mac and Fannie Mae. But there are also measures of interest to people with vacation homes, first-time home buyers or those planning to buy a home who haven't owned one in three years, and homeowners who don't itemize their federal tax returns.
Here's a rundown:
Vacation homes
The housing bill closes a provision that some people with vacation homes had used to avoid paying tax on the appreciation realized on their vacation properties when they sell.
You might wonder: What does this have to do with solving the housing crisis? Nothing, really; it is designed to raise revenue and help pay for the other tax breaks in the bill.
The provision has allowed someone with a vacation home to get a tax break, providing he or she is willing to live in it for at least two years before selling it.
Under current law, taxpayers can exclude up to $250,000 per person, or $500,000 per couple, in gains on the sale of a personal residence from federal tax.
Because tax law defines a personal residence as the place where the taxpayer has lived for two of the last five years, people with vacation homes can move in for two years, sell the home and then move back to their primary residence.
But starting Jan. 1, 2009, taxpayers can exclude only the portion of the gain that corresponds to the "qualified use" of the home. That means the taxpayer will have to divide the number of years lived in the residence by the number of years it was owned to figure out what percentage of the gain is tax-free, said Mark Luscombe, principal tax analyst with CCH Inc., a Riverwoods, Ill.-based publisher of tax information.
Here's an example: If you bought the house in 2009 and owned it for 10 years but lived in it for just two, only two-tenths of the gain would be tax-free.
Even if the home appreciated in uneven fashion (as homes often do), the tax law says you have to act as if the appreciation was earned evenly throughout the time period that you owned it.
The good news is that Congress also put in a generous transition period, he said. Only the period following the law's 2009 start date will count in the "non-qualified use" portion of the home-sale calculation.
So if you bought the house in 2000 and moved into it in 2010, selling in 2012, you would pay tax on only two years of appreciation after the law's start date but before you moved in -- the non-qualified use in 2009 and 2010.
That makes it time to get packing, said Bob Scharin, senior tax analyst with the tax and accounting business of Thomson Reuters, about the change: "If you move in before the end of 2008, the law will not affect you at all," he said.
A 'credit' you must repay
The housing act also ushered in two new tax breaks for homeowners.
The most widely touted was one that provides a tax "credit" of $7,500 for couples and $3,750 for married couples filing separately for first-time home buyers. But the credit is really an interest-free loan, not a credit in the traditional sense of the word, Luscombe said. It must be paid back in equal installments over a 15-year period.
Saying the credit is for first-time home buyers is also a misnomer. Anyone who hasn't owned a home for three years before purchasing the home can qualify.
Before that "look-back period," they could have been Donald Trump and it still wouldn't matter.
"You could have owned many homes in your lifetime, as long as you didn't own a home in the three-year period prior to the purchase of the home to which the credit will apply," Scharin said.
There are income limits, however. Only singles earning less than $75,000 annually and married couples earning less than $150,000 annually can claim the full credit.
Once income exceeds those thresholds, the maximum credit is reduced until it is eliminated for singles earning $95,000 and married couples with $170,000 or more in income.
The credit is also temporary. It is available only for homes purchased April 9, 2008 through July 1, 2009.
One-time deduction
There are fewer strings attached to a new tax deduction for homeowners who don't itemize deductions. The tax law gives non-itemizers a write-off to compensate them for any state and local real estate taxes they pay. The deduction is the lesser of the amount of that tax, or $500 for single filers or $1,000 for married couples.
But this deduction is available for only one year -- 2008.
This deduction is aimed at helping older homeowners, who may have already paid off their mortgages and thus don't have enough deductible expenses to itemize. It is meant to help them through today's tough economy.
Kathy M. Kristof welcomes your comments but regrets that she cannot respond to every question. Write to Personal Finance, Business Section, Los Angeles Times, 202 W. 1st St., Los Angeles, CA 90012, or e-mail kathy.kristof @latimes.com. For past Personal Finance columns, visit latimes.com/kristof.
The Housing and Economic Recovery Act doesn't only stave off foreclosures and help troubled lenders. First-time buyers, older homeowners and others also benefit.
Kathy M. Kristof
Personal Finance
August 10, 2008
Tax breaks for owning real estate are undergoing another shift, thanks to the Housing and Economic Recovery Act recently signed into law by President Bush.
The main focus of the bill was on its provisions to stave off foreclosures and to bail out mortgage giants Freddie Mac and Fannie Mae. But there are also measures of interest to people with vacation homes, first-time home buyers or those planning to buy a home who haven't owned one in three years, and homeowners who don't itemize their federal tax returns.
Here's a rundown:
Vacation homes
The housing bill closes a provision that some people with vacation homes had used to avoid paying tax on the appreciation realized on their vacation properties when they sell.
You might wonder: What does this have to do with solving the housing crisis? Nothing, really; it is designed to raise revenue and help pay for the other tax breaks in the bill.
The provision has allowed someone with a vacation home to get a tax break, providing he or she is willing to live in it for at least two years before selling it.
Under current law, taxpayers can exclude up to $250,000 per person, or $500,000 per couple, in gains on the sale of a personal residence from federal tax.
Because tax law defines a personal residence as the place where the taxpayer has lived for two of the last five years, people with vacation homes can move in for two years, sell the home and then move back to their primary residence.
But starting Jan. 1, 2009, taxpayers can exclude only the portion of the gain that corresponds to the "qualified use" of the home. That means the taxpayer will have to divide the number of years lived in the residence by the number of years it was owned to figure out what percentage of the gain is tax-free, said Mark Luscombe, principal tax analyst with CCH Inc., a Riverwoods, Ill.-based publisher of tax information.
Here's an example: If you bought the house in 2009 and owned it for 10 years but lived in it for just two, only two-tenths of the gain would be tax-free.
Even if the home appreciated in uneven fashion (as homes often do), the tax law says you have to act as if the appreciation was earned evenly throughout the time period that you owned it.
The good news is that Congress also put in a generous transition period, he said. Only the period following the law's 2009 start date will count in the "non-qualified use" portion of the home-sale calculation.
So if you bought the house in 2000 and moved into it in 2010, selling in 2012, you would pay tax on only two years of appreciation after the law's start date but before you moved in -- the non-qualified use in 2009 and 2010.
That makes it time to get packing, said Bob Scharin, senior tax analyst with the tax and accounting business of Thomson Reuters, about the change: "If you move in before the end of 2008, the law will not affect you at all," he said.
A 'credit' you must repay
The housing act also ushered in two new tax breaks for homeowners.
The most widely touted was one that provides a tax "credit" of $7,500 for couples and $3,750 for married couples filing separately for first-time home buyers. But the credit is really an interest-free loan, not a credit in the traditional sense of the word, Luscombe said. It must be paid back in equal installments over a 15-year period.
Saying the credit is for first-time home buyers is also a misnomer. Anyone who hasn't owned a home for three years before purchasing the home can qualify.
Before that "look-back period," they could have been Donald Trump and it still wouldn't matter.
"You could have owned many homes in your lifetime, as long as you didn't own a home in the three-year period prior to the purchase of the home to which the credit will apply," Scharin said.
There are income limits, however. Only singles earning less than $75,000 annually and married couples earning less than $150,000 annually can claim the full credit.
Once income exceeds those thresholds, the maximum credit is reduced until it is eliminated for singles earning $95,000 and married couples with $170,000 or more in income.
The credit is also temporary. It is available only for homes purchased April 9, 2008 through July 1, 2009.
One-time deduction
There are fewer strings attached to a new tax deduction for homeowners who don't itemize deductions. The tax law gives non-itemizers a write-off to compensate them for any state and local real estate taxes they pay. The deduction is the lesser of the amount of that tax, or $500 for single filers or $1,000 for married couples.
But this deduction is available for only one year -- 2008.
This deduction is aimed at helping older homeowners, who may have already paid off their mortgages and thus don't have enough deductible expenses to itemize. It is meant to help them through today's tough economy.
Kathy M. Kristof welcomes your comments but regrets that she cannot respond to every question. Write to Personal Finance, Business Section, Los Angeles Times, 202 W. 1st St., Los Angeles, CA 90012, or e-mail kathy.kristof @latimes.com. For past Personal Finance columns, visit latimes.com/kristof.
LA TIMES REPORTS TODAY Southern California home sales jump 13.8% in July
Posted from the LA Times
Southern California home sales jump 13.8% in July
The year-over-year increase, spurred by falling prices and foreclosures, is the first since September 2005. Los Angeles County sees a slight drop in sales.
By Annette Haddad
Los Angeles Times Staff Writer
August 19, 2008
Southern California home sales rose last month for the first time in nearly three years, as steep discounts lured buyers back into a market where values have tumbled 31% over the last year.
Sales volume was up 13.8% overall from a year earlier, with Riverside County leading the way with a 48.6% jump, MDA DataQuick reported Monday. Los Angeles County was the exception, posting a 3.2% decline.
The rise is being driven in part by buyers like Andre and Jody Ocampo, who attended an auction of 250 foreclosed homes at the Riverside Convention Center on Sunday, looking for a bargain.
After just three minutes of bidding, they became buyers of a Lake Elsinore home -- offering $385,000 for a house that had been appraised just a couple of years ago at nearly $700,000.
The Ocampos said they weren't worried that prices would continue falling, as most real estate experts predict, because they plan to live in the home and not resell it for a quick profit.
"We've been building our nest egg and waiting for the right opportunity," Andre Ocampo said. "Our goal is to move in and make it our home, and wait out the market."
Overall, 20,329 homes in the six-county region closed escrow last month, MDA DataQuick said, for the first increase in Southland sales since September 2005.
G.U. Krueger, an economist with Irvine-based real estate advisory firm IHP Capital Partners, said the uptick was evidence that the "price mechanism is working" -- that is, lower prices are bringing buyers back into the market.
But he and other experts believe that prices will take months to hit bottom, citing the wave of foreclosures and the tightening of lending standards because of the continuing credit crunch.
"Higher sales are great, but foreclosures are still high and people need to appreciate that more discounts may be coming," Krueger said.
Los Angeles County, the one exception to the trend, hasn't been hit as hard by foreclosures and has relatively fewer discounted homes for sale. That's probably why it saw a slight decline in sales instead of the increase seen in neighboring counties, said John Karevoll, MDA DataQuick's chief analyst.
The median home price in Southern California last month fell 31.1% to $348,000 from $505,000 in July 2007, DataQuick said, the lowest level since February 2004, when the region was in the frenzy of the housing expansion. The decline ranged from 25.6% in San Diego County to 35.2% in San Bernardino County.
The decline is being exacerbated by record numbers of homeowners defaulting on their mortgages each month, with most of the homes ultimately being repossessed by the lender and sold at a discount.
The market is also being weakened by "short sales," in which homeowners price their homes for less than what they owe on their mortgages in hopes of avoiding foreclosure.
In addition, most lenders have tightened their standards, eliminating many potential home buyers who might have qualified for a loan during the boom.
There is also concern about the health of mortgage finance giants Fannie Mae and Freddie Mac, which buy the bulk of the nation's home loans. Speculation that the two companies may be facing a government takeover helped trigger a sell-off on Wall Street on Monday.
But with buyers returning to the marketplace, lenders that got burned after approving risky mortgages and that then retreated are becoming slightly less wary these days, some loan brokers and real estate agents say.
"There are a lot of good, well-qualified people out there," said Mitch Ohlbaum, president of Legend Mortgage Corp. in Los Angeles. "People feel, 'OK, I can put down 10% or 20% and do this and the payment will be OK, even with a 30-year fixed mortgage.' "
For bargain hunters like Dale Smet of Santa Clarita, the timing is perfect.
"I've been waiting for this market," he said.
Smet, who works in marketing for Southern California Gas Co., said he carefully conserved an equity line of credit during the boom years, which he tapped to pay $300,000 cash last month for two foreclosed condos near his house.
And that was after being outbid on a handful of other bank-owned homes in the Santa Clarita area.
After a 15-day escrow, Smet did the necessary cosmetic repairs himself and said he had no trouble finding renters willing to pay about $1,500 a month for each unit. He hopes eventually to take a first mortgage on each with monthly payments that he figures would be less than his rental income.
"This isn't risk free. But I don't care if home prices go down," Smet said. "I'll just buy more."
Smet acknowledges that the housing downturn's drag on the broader economy could accelerate, putting his job at risk.
"That's definitely a weak link. The job situation is always an issue," he said.
Andre Ocampo, the buyer of the Lake Elsinore home, has seen firsthand how falling home prices can affect one's livelihood.
His Huntington Beach company, South Shore Extermination, boomed as rising home sales fueled demand for termite inspection and control work.
With the downturn, business fell off. But Ocampo and his wife waited patiently, building their credit and saving their money.
After hearing about the auction, he and his wife scoped out a place they knew would be on the block -- a 2,100-square-foot ranch-style house on two acres near their rental house in the Rancho Capistrano neighborhood.
They liked the place enough to brave the crowds of professional investors and enter a live bidding war for the home, which had an opening price of $189,000.
"We did all our due diligence and this made sense to us," Ocampo said.
"Everything is possible right now; we worked hard to get our ducks in a row."
annette.haddad@latimes.com
--------------------------------------------------------------------------------
Southern California home sales jump 13.8% in July
The year-over-year increase, spurred by falling prices and foreclosures, is the first since September 2005. Los Angeles County sees a slight drop in sales.
By Annette Haddad
Los Angeles Times Staff Writer
August 19, 2008
Southern California home sales rose last month for the first time in nearly three years, as steep discounts lured buyers back into a market where values have tumbled 31% over the last year.
Sales volume was up 13.8% overall from a year earlier, with Riverside County leading the way with a 48.6% jump, MDA DataQuick reported Monday. Los Angeles County was the exception, posting a 3.2% decline.
The rise is being driven in part by buyers like Andre and Jody Ocampo, who attended an auction of 250 foreclosed homes at the Riverside Convention Center on Sunday, looking for a bargain.
After just three minutes of bidding, they became buyers of a Lake Elsinore home -- offering $385,000 for a house that had been appraised just a couple of years ago at nearly $700,000.
The Ocampos said they weren't worried that prices would continue falling, as most real estate experts predict, because they plan to live in the home and not resell it for a quick profit.
"We've been building our nest egg and waiting for the right opportunity," Andre Ocampo said. "Our goal is to move in and make it our home, and wait out the market."
Overall, 20,329 homes in the six-county region closed escrow last month, MDA DataQuick said, for the first increase in Southland sales since September 2005.
G.U. Krueger, an economist with Irvine-based real estate advisory firm IHP Capital Partners, said the uptick was evidence that the "price mechanism is working" -- that is, lower prices are bringing buyers back into the market.
But he and other experts believe that prices will take months to hit bottom, citing the wave of foreclosures and the tightening of lending standards because of the continuing credit crunch.
"Higher sales are great, but foreclosures are still high and people need to appreciate that more discounts may be coming," Krueger said.
Los Angeles County, the one exception to the trend, hasn't been hit as hard by foreclosures and has relatively fewer discounted homes for sale. That's probably why it saw a slight decline in sales instead of the increase seen in neighboring counties, said John Karevoll, MDA DataQuick's chief analyst.
The median home price in Southern California last month fell 31.1% to $348,000 from $505,000 in July 2007, DataQuick said, the lowest level since February 2004, when the region was in the frenzy of the housing expansion. The decline ranged from 25.6% in San Diego County to 35.2% in San Bernardino County.
The decline is being exacerbated by record numbers of homeowners defaulting on their mortgages each month, with most of the homes ultimately being repossessed by the lender and sold at a discount.
The market is also being weakened by "short sales," in which homeowners price their homes for less than what they owe on their mortgages in hopes of avoiding foreclosure.
In addition, most lenders have tightened their standards, eliminating many potential home buyers who might have qualified for a loan during the boom.
There is also concern about the health of mortgage finance giants Fannie Mae and Freddie Mac, which buy the bulk of the nation's home loans. Speculation that the two companies may be facing a government takeover helped trigger a sell-off on Wall Street on Monday.
But with buyers returning to the marketplace, lenders that got burned after approving risky mortgages and that then retreated are becoming slightly less wary these days, some loan brokers and real estate agents say.
"There are a lot of good, well-qualified people out there," said Mitch Ohlbaum, president of Legend Mortgage Corp. in Los Angeles. "People feel, 'OK, I can put down 10% or 20% and do this and the payment will be OK, even with a 30-year fixed mortgage.' "
For bargain hunters like Dale Smet of Santa Clarita, the timing is perfect.
"I've been waiting for this market," he said.
Smet, who works in marketing for Southern California Gas Co., said he carefully conserved an equity line of credit during the boom years, which he tapped to pay $300,000 cash last month for two foreclosed condos near his house.
And that was after being outbid on a handful of other bank-owned homes in the Santa Clarita area.
After a 15-day escrow, Smet did the necessary cosmetic repairs himself and said he had no trouble finding renters willing to pay about $1,500 a month for each unit. He hopes eventually to take a first mortgage on each with monthly payments that he figures would be less than his rental income.
"This isn't risk free. But I don't care if home prices go down," Smet said. "I'll just buy more."
Smet acknowledges that the housing downturn's drag on the broader economy could accelerate, putting his job at risk.
"That's definitely a weak link. The job situation is always an issue," he said.
Andre Ocampo, the buyer of the Lake Elsinore home, has seen firsthand how falling home prices can affect one's livelihood.
His Huntington Beach company, South Shore Extermination, boomed as rising home sales fueled demand for termite inspection and control work.
With the downturn, business fell off. But Ocampo and his wife waited patiently, building their credit and saving their money.
After hearing about the auction, he and his wife scoped out a place they knew would be on the block -- a 2,100-square-foot ranch-style house on two acres near their rental house in the Rancho Capistrano neighborhood.
They liked the place enough to brave the crowds of professional investors and enter a live bidding war for the home, which had an opening price of $189,000.
"We did all our due diligence and this made sense to us," Ocampo said.
"Everything is possible right now; we worked hard to get our ducks in a row."
annette.haddad@latimes.com
--------------------------------------------------------------------------------
Monday, August 11, 2008
Pending Home Sales Rise -- According to the National Association of REALTORS (R)
The following article is a direct copy of an article posted at realtor.org:
Pending Home Sales Rise, Wider Gains Anticipated as Buyers tap Housing Provisions
WASHINGTON, August 07, 2008
Some improvement is projected for existing-home sales in the months ahead, with broader gains seen by the fourth quarter as buyers take advantage of new provisions provided through the recently passed housing stimulus bill, according to the latest forecast by the National Association of Realtors®.
The Pending Home Sales Index,¹ a forward-looking indicator based on contracts signed in June, rose 5.3 percent to 89.0 from a downwardly revised reading of 84.5 in May, but remains 12.3 percent below June 2007 when it stood at 101.4.
Lawrence Yun, NAR chief economist, said sales have been in a pattern of rising and falling within a fairly narrow range. “The vacillation of data from one month to the next indicates a housing market in transition,” he said. “The rise in pending home sales was broad-based with all four regions showing gains. This is welcome news because a rise in contract activity is necessary for an overall housing recovery. With a tax credit now available to first-time home buyers, increases in home sales could be sustained with the momentum carrying into 2009.”
The PHSI in the South jumped 9.3 percent to 92.4 in June but is 16.6 percent below June 2007. In the West, the index rose 4.6 percent to 101.0 in June but remains 1.7 percent below a year ago. The index in the Northeast increased 3.4 percent to 79.6 but is 15.4 percent below June 2007. In the Midwest, the index rose 1.3 percent in June to 79.6 but is 13.3 percent below a year ago.
Sales gains have been consistently strong in recent months in Sacramento, Calif.; Las Vegas; and Ft. Myers, Fla., where affordability conditions have greatly improved.² The pickup in contract signings appears to be broadening with many affordable markets in mid-America now showing year-over-year gains, including Columbus, Ohio; Charleston, W.V.; Oklahoma City; and Colorado Springs, Colo. Pending sales have fallen significantly in Texas markets and in the Pacific Northwest - two regions with very strong local economies.
NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said the housing stimulus package will provide long-term relief. “Provisions to stem foreclosures are helpful, but a greater lift to the economy should come from higher mortgage limits, enhancements to the FHA loan program and the first-time home buyer tax credit,” he said.
“These are excellent tools that will help buyers get into the market to take advantage of the unprecedented drop in home prices in many areas, as well as a wide selection of inventory, to make an investment in their future,” Gaylord said.
With roughly 2.5 million first-time home buyers taking advantage of the temporary tax credit, existing-home sales are likely to rise 7.0 percent to 5.51 million in 2009 from a expected total of 5.15 million this year.
Yun said home prices did not fall as much as anticipated in the second quarter. “Buyers entering the hardest-hit markets, in some cases with multiple-bid offers, may have put a floor on prices,” he said. “ In addition, rising commodity prices and higher construction costs have resulted in a very unusual market today with existing-home prices being less than replacement building costs in some areas. Home prices are projected to increase 3 to 6 percent in 2009.”
“Builders need to further cut production to help trim inventory. However, new-home sales are expected to bottom around the second quarter of next year with slight gains in the second half of 2009,” Yun said. New-home sales are forecast to drop 8.8 percent to 464,000 in 2009 from 509,000 this year. Housing starts, including multifamily units, should fall 8.8 percent next year to 795,000 from 960,000 in 2008.
The 30-year fixed-rate mortgage, which also has been vacillating, is likely to trend up to 6.5 percent by the end of 2008, and then hold at that level for most of next year. NAR’s housing affordability index is forecast to remain favorable this year, averaging 13 percentage points higher than in 2007.
Growth in the U.S. gross domestic product (GDP) is expected to be 1.7 percent this year and 1.5 percent in 2009. The unemployment rate is projected to average 5.5 percent in 2008 and 6.0 percent next year.
Inflation, as measured by the Consumer Price Index, is seen at 4.1 percent in 2008 and 2.6 percent next year. Inflation-adjusted disposable personal income is estimated to grow 1.7 percent this year and 1.1 percent in 2009.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
# # #
¹The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.
The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity from 2001 through 2004 parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons.
An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales.
²Market information is from unpublished snapshot data; please contact your local association of Realtors® for more information.
Second quarter metropolitan area home prices and state home sales will be published August 14. Existing-home sales for July will be released August 25; the next Forecast / Pending Home Sales Index will be released September 9
Pending Home Sales Rise, Wider Gains Anticipated as Buyers tap Housing Provisions
WASHINGTON, August 07, 2008
Some improvement is projected for existing-home sales in the months ahead, with broader gains seen by the fourth quarter as buyers take advantage of new provisions provided through the recently passed housing stimulus bill, according to the latest forecast by the National Association of Realtors®.
The Pending Home Sales Index,¹ a forward-looking indicator based on contracts signed in June, rose 5.3 percent to 89.0 from a downwardly revised reading of 84.5 in May, but remains 12.3 percent below June 2007 when it stood at 101.4.
Lawrence Yun, NAR chief economist, said sales have been in a pattern of rising and falling within a fairly narrow range. “The vacillation of data from one month to the next indicates a housing market in transition,” he said. “The rise in pending home sales was broad-based with all four regions showing gains. This is welcome news because a rise in contract activity is necessary for an overall housing recovery. With a tax credit now available to first-time home buyers, increases in home sales could be sustained with the momentum carrying into 2009.”
The PHSI in the South jumped 9.3 percent to 92.4 in June but is 16.6 percent below June 2007. In the West, the index rose 4.6 percent to 101.0 in June but remains 1.7 percent below a year ago. The index in the Northeast increased 3.4 percent to 79.6 but is 15.4 percent below June 2007. In the Midwest, the index rose 1.3 percent in June to 79.6 but is 13.3 percent below a year ago.
Sales gains have been consistently strong in recent months in Sacramento, Calif.; Las Vegas; and Ft. Myers, Fla., where affordability conditions have greatly improved.² The pickup in contract signings appears to be broadening with many affordable markets in mid-America now showing year-over-year gains, including Columbus, Ohio; Charleston, W.V.; Oklahoma City; and Colorado Springs, Colo. Pending sales have fallen significantly in Texas markets and in the Pacific Northwest - two regions with very strong local economies.
NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said the housing stimulus package will provide long-term relief. “Provisions to stem foreclosures are helpful, but a greater lift to the economy should come from higher mortgage limits, enhancements to the FHA loan program and the first-time home buyer tax credit,” he said.
“These are excellent tools that will help buyers get into the market to take advantage of the unprecedented drop in home prices in many areas, as well as a wide selection of inventory, to make an investment in their future,” Gaylord said.
With roughly 2.5 million first-time home buyers taking advantage of the temporary tax credit, existing-home sales are likely to rise 7.0 percent to 5.51 million in 2009 from a expected total of 5.15 million this year.
Yun said home prices did not fall as much as anticipated in the second quarter. “Buyers entering the hardest-hit markets, in some cases with multiple-bid offers, may have put a floor on prices,” he said. “ In addition, rising commodity prices and higher construction costs have resulted in a very unusual market today with existing-home prices being less than replacement building costs in some areas. Home prices are projected to increase 3 to 6 percent in 2009.”
“Builders need to further cut production to help trim inventory. However, new-home sales are expected to bottom around the second quarter of next year with slight gains in the second half of 2009,” Yun said. New-home sales are forecast to drop 8.8 percent to 464,000 in 2009 from 509,000 this year. Housing starts, including multifamily units, should fall 8.8 percent next year to 795,000 from 960,000 in 2008.
The 30-year fixed-rate mortgage, which also has been vacillating, is likely to trend up to 6.5 percent by the end of 2008, and then hold at that level for most of next year. NAR’s housing affordability index is forecast to remain favorable this year, averaging 13 percentage points higher than in 2007.
Growth in the U.S. gross domestic product (GDP) is expected to be 1.7 percent this year and 1.5 percent in 2009. The unemployment rate is projected to average 5.5 percent in 2008 and 6.0 percent next year.
Inflation, as measured by the Consumer Price Index, is seen at 4.1 percent in 2008 and 2.6 percent next year. Inflation-adjusted disposable personal income is estimated to grow 1.7 percent this year and 1.1 percent in 2009.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
# # #
¹The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.
The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity from 2001 through 2004 parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons.
An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales.
²Market information is from unpublished snapshot data; please contact your local association of Realtors® for more information.
Second quarter metropolitan area home prices and state home sales will be published August 14. Existing-home sales for July will be released August 25; the next Forecast / Pending Home Sales Index will be released September 9
Friday, August 1, 2008
Shoppers Beware!
I am writing this post very late on Friday night as a reminder and a warning!
Tonight me and my family went to the Santa Anita Mall to take advantage of some good sales for pre-back-to-school shopping. We took a pretzel break, just outside of Nordstrom. We went back into Nordstrom and my husband and I divided and conquered departments -- each with 1 or 2 kids to make things go faster.
As I was ready to pay for a purchase, I realized I did not have my purse. Now, my purse is the keeper of all things, not the least of which a diaper and wipes, social security cards, my credit cards and my husbands, 2 ATM account cards and 2 check books. Let's see, I also had my Suprakey (a lock box device which allows me to access all homes with a lock-box). I recalled that since I had paid cash for the pretzels, I had my purse and my husband saved our little table. As I went back to my family, I hung my purse over the chair (I usually put it in the stroller basket). This time, I was distracted by one child needing one thing and a toddler needing something else. So, on the back of the chair it hung. I recall getting out of the chair to leave and eyeing my purse as I buckled my daughter into the stroller. Before I knew it, my husband and I decided to strategize our last hurrah into Nordstrom and as I began to take command of the journey and part ways with my husband and one child, I left my purse behind.
Fast forward to me arriving back at the table and realizing my purse was gone! After doing the necessary report at the information kiosk and visit every retail store in the vicinity - to no avail, I met up with my husband and reported my mistake.
As we talked through the possibilities, my credit cards were the least of my worries; I realized my kids social security cards, pictures, and lock box key were all at the disposal of someone out there. I tried not to panic. My oldest son prayed.
Fast forward to an hour later and my bank ATM cards cancelled and a very nice Arcadia Police crew taking me to Nordstrom, where my purse was returned. The thieves had rummaged through it all, taken my $40 in cash, 2 ATM cards and an American Express card and called it a day. My purse was found in the parking lot outside of Nordstrom with everything laying around it. A couple of shoppers were nice enough to bring it inside and return it to the Customer Service Dept. As the officer said, "Well, $40 and you get your purse back". Not bad at all, I say.
One thing I have to say, though, is he mentioned that my credit cards were in my purse, but they now had my name, address and phone # and all these thieves needed were my credit card numbers and they could have a go at all that was in my name. VERY SCARY. This incident is the first to happen to me -- but as the police said, Identity Theft is the biggest crime right now. So, I have a couple of logical tips for all those women (and men) who keep their identities and lives in their pocketbooks:
1. Take only what you need.
2. Downsize to a very small bag and do not carry checks, extra cards or social security information.
3. Use cash -- Debit card fraud is on the rise -- big time! The thieves immediately took my card to a gas station across from the mall. The officer said the first thing they would do was get gas! And they did!!!!!!!
4. A personal one -- do not carry pictures of loved ones. We do not want people that steal our purse to have our address and pictures of our kids.
5. If you work in the Real Estate industry do not carry a lock box key with you unless you are on duty. This is a valuable and priceless tool. If this was in the wrong hands, it could be bad. Of course, Supra can cancel the key ASAP, but it is not worth the risk.
6. Never hang your purse over a chair. It is liable to get stolen or forgotten and then stolen.
7. In short, don't do what I did!
All that said, get yourselves a small purse and play it safe!
Stacy
Tonight me and my family went to the Santa Anita Mall to take advantage of some good sales for pre-back-to-school shopping. We took a pretzel break, just outside of Nordstrom. We went back into Nordstrom and my husband and I divided and conquered departments -- each with 1 or 2 kids to make things go faster.
As I was ready to pay for a purchase, I realized I did not have my purse. Now, my purse is the keeper of all things, not the least of which a diaper and wipes, social security cards, my credit cards and my husbands, 2 ATM account cards and 2 check books. Let's see, I also had my Suprakey (a lock box device which allows me to access all homes with a lock-box). I recalled that since I had paid cash for the pretzels, I had my purse and my husband saved our little table. As I went back to my family, I hung my purse over the chair (I usually put it in the stroller basket). This time, I was distracted by one child needing one thing and a toddler needing something else. So, on the back of the chair it hung. I recall getting out of the chair to leave and eyeing my purse as I buckled my daughter into the stroller. Before I knew it, my husband and I decided to strategize our last hurrah into Nordstrom and as I began to take command of the journey and part ways with my husband and one child, I left my purse behind.
Fast forward to me arriving back at the table and realizing my purse was gone! After doing the necessary report at the information kiosk and visit every retail store in the vicinity - to no avail, I met up with my husband and reported my mistake.
As we talked through the possibilities, my credit cards were the least of my worries; I realized my kids social security cards, pictures, and lock box key were all at the disposal of someone out there. I tried not to panic. My oldest son prayed.
Fast forward to an hour later and my bank ATM cards cancelled and a very nice Arcadia Police crew taking me to Nordstrom, where my purse was returned. The thieves had rummaged through it all, taken my $40 in cash, 2 ATM cards and an American Express card and called it a day. My purse was found in the parking lot outside of Nordstrom with everything laying around it. A couple of shoppers were nice enough to bring it inside and return it to the Customer Service Dept. As the officer said, "Well, $40 and you get your purse back". Not bad at all, I say.
One thing I have to say, though, is he mentioned that my credit cards were in my purse, but they now had my name, address and phone # and all these thieves needed were my credit card numbers and they could have a go at all that was in my name. VERY SCARY. This incident is the first to happen to me -- but as the police said, Identity Theft is the biggest crime right now. So, I have a couple of logical tips for all those women (and men) who keep their identities and lives in their pocketbooks:
1. Take only what you need.
2. Downsize to a very small bag and do not carry checks, extra cards or social security information.
3. Use cash -- Debit card fraud is on the rise -- big time! The thieves immediately took my card to a gas station across from the mall. The officer said the first thing they would do was get gas! And they did!!!!!!!
4. A personal one -- do not carry pictures of loved ones. We do not want people that steal our purse to have our address and pictures of our kids.
5. If you work in the Real Estate industry do not carry a lock box key with you unless you are on duty. This is a valuable and priceless tool. If this was in the wrong hands, it could be bad. Of course, Supra can cancel the key ASAP, but it is not worth the risk.
6. Never hang your purse over a chair. It is liable to get stolen or forgotten and then stolen.
7. In short, don't do what I did!
All that said, get yourselves a small purse and play it safe!
Stacy
Wednesday, July 30, 2008
President Bush Signs the Historic Housing Bill! Read on!
This message taken from an email sent out by the California Association of Realtors and sent to all members:
This morning President Bush signed the "Housing and Economic
Recovery Act of 2008." For the past several years, C.A.R. and
the NATIONAL ASSOCIATION OF REALTORS� have aggressively lobbied
for Congress to pass numerous provisions found in this historic
bill. Many of you participated in these efforts by communicating
with your Members of Congress.
Thank you to all of you who responded to these Calls-for-Action.
Your efforts have made a difference. This federal housing bill
is a significant move in the right direction for California
homeowners. It will aid in stabilizing our economy and help stem
foreclosures, while also providing support to first-time
homeowners.
The legislation will assist an estimated 400,000 homeowners
facing foreclosure, many of whom reside in California, by
allowing them to refinance their current mortgages with a
Federal Housing Administration (FHA)-backed loan. The bill also
will permanently increase FHA, Fannie Mae, and Freddie Mac loan
limits in high-cost areas.
The bill permanently increases the conforming loan limit to
$625,500. C.A.R. has long advocated for higher conforming loan
limits. In February, the Economic Stimulus Act of 2008 was
signed, temporarily raising the conforming loan limit in
high-cost areas to $729,750 from $417,000 until December 31,
2008.
Although we would have liked Congress to make permanent the
current $729,750 loan limit, C.A.R. is pleased with the new
permanent loan limit of $625,500. It will allow California
homeowners to refinance their loans into safe affordable loan
products and allow first-time home buyers to enter the market.
The new loan limits for Fannie Mae and Freddie Mac are the
greater of either $417,000 or 115 percent of an area�s median
home price, up to $625,500. The new FHA loan limit will be the
greater of $271,050 or 115 percent of an area�s median home
price, up to $625,500. Both new loan limits will be effective
at the expiration of the economic stimulus limits on December
31, 2008.
C.A.R. also supports the following bill provisions:
A temporary increase in mortgage revenue bonds to refinance
subprime mortgages.
New regulator for Government Sponsored Enterprises to restore
investor confidence in GSE loans and help the market and economy
stabilize.
First-time home buyer tax credit, which allows first-time home
buyers to receive a tax refund worth up to 10 percent of a
home�s purchase price, up to a maximum of $7,500. The refund
serves as an interest-free loan and the homeowner is required to
repay it in equal installments over 15 years.
Temporary raise in the loan limit for the Veterans Affairs home
loan guarantee program to the same level as the economic
stimulus limits until the end of 2008.
Adjustment to the Foreign Investment in Real Property Tax Act of
1980 (FIRPTA), allowing sellers to provide the non-foreign
affidavit to a qualified closing entity and not just the buyer.
The setting of minimum requirements for mortgage originators,
which mandates fingerprinting of loan originators and
establishes a nationwide loan originator licensing and
registration system. The requirements do not apply to those only
performing real estate brokerage activities unless they are
compensated by a lender, mortgage broker, or other loan
originator. States will have the ability to implement more
stringent laws.
The creation of a National Affordable Housing Trust Fund to help
cover the cost of the FHA rescue plan for the first five years
and develop affordable housing in subsequent years.
Other provisions in the legislation:
The Treasury Department�s proposal to create a federal backstop
program to insure the financial well-being of Fannie Mae and
Freddie Mac.
The FHA�s inability to insure loans that utilize a seller-funded
down-payment assistance program. Down-payment assistance from
family, employers and other nonprofits is still allowed.
The Community Development Block Grant Programs� $4 billion
allotment for communities to purchase and refurbish foreclosed
homes.
What do you think about this bill? Send me comments to be posted at a later time!
Stacy.dover1@era.com
Anyone you know sitting on the fence waiting for the right time to buy - tell them this IS THE TIME TO BUY!!!!!!!!!!!
- Stacy
This morning President Bush signed the "Housing and Economic
Recovery Act of 2008." For the past several years, C.A.R. and
the NATIONAL ASSOCIATION OF REALTORS� have aggressively lobbied
for Congress to pass numerous provisions found in this historic
bill. Many of you participated in these efforts by communicating
with your Members of Congress.
Thank you to all of you who responded to these Calls-for-Action.
Your efforts have made a difference. This federal housing bill
is a significant move in the right direction for California
homeowners. It will aid in stabilizing our economy and help stem
foreclosures, while also providing support to first-time
homeowners.
The legislation will assist an estimated 400,000 homeowners
facing foreclosure, many of whom reside in California, by
allowing them to refinance their current mortgages with a
Federal Housing Administration (FHA)-backed loan. The bill also
will permanently increase FHA, Fannie Mae, and Freddie Mac loan
limits in high-cost areas.
The bill permanently increases the conforming loan limit to
$625,500. C.A.R. has long advocated for higher conforming loan
limits. In February, the Economic Stimulus Act of 2008 was
signed, temporarily raising the conforming loan limit in
high-cost areas to $729,750 from $417,000 until December 31,
2008.
Although we would have liked Congress to make permanent the
current $729,750 loan limit, C.A.R. is pleased with the new
permanent loan limit of $625,500. It will allow California
homeowners to refinance their loans into safe affordable loan
products and allow first-time home buyers to enter the market.
The new loan limits for Fannie Mae and Freddie Mac are the
greater of either $417,000 or 115 percent of an area�s median
home price, up to $625,500. The new FHA loan limit will be the
greater of $271,050 or 115 percent of an area�s median home
price, up to $625,500. Both new loan limits will be effective
at the expiration of the economic stimulus limits on December
31, 2008.
C.A.R. also supports the following bill provisions:
A temporary increase in mortgage revenue bonds to refinance
subprime mortgages.
New regulator for Government Sponsored Enterprises to restore
investor confidence in GSE loans and help the market and economy
stabilize.
First-time home buyer tax credit, which allows first-time home
buyers to receive a tax refund worth up to 10 percent of a
home�s purchase price, up to a maximum of $7,500. The refund
serves as an interest-free loan and the homeowner is required to
repay it in equal installments over 15 years.
Temporary raise in the loan limit for the Veterans Affairs home
loan guarantee program to the same level as the economic
stimulus limits until the end of 2008.
Adjustment to the Foreign Investment in Real Property Tax Act of
1980 (FIRPTA), allowing sellers to provide the non-foreign
affidavit to a qualified closing entity and not just the buyer.
The setting of minimum requirements for mortgage originators,
which mandates fingerprinting of loan originators and
establishes a nationwide loan originator licensing and
registration system. The requirements do not apply to those only
performing real estate brokerage activities unless they are
compensated by a lender, mortgage broker, or other loan
originator. States will have the ability to implement more
stringent laws.
The creation of a National Affordable Housing Trust Fund to help
cover the cost of the FHA rescue plan for the first five years
and develop affordable housing in subsequent years.
Other provisions in the legislation:
The Treasury Department�s proposal to create a federal backstop
program to insure the financial well-being of Fannie Mae and
Freddie Mac.
The FHA�s inability to insure loans that utilize a seller-funded
down-payment assistance program. Down-payment assistance from
family, employers and other nonprofits is still allowed.
The Community Development Block Grant Programs� $4 billion
allotment for communities to purchase and refurbish foreclosed
homes.
What do you think about this bill? Send me comments to be posted at a later time!
Stacy.dover1@era.com
Anyone you know sitting on the fence waiting for the right time to buy - tell them this IS THE TIME TO BUY!!!!!!!!!!!
- Stacy
Thursday, July 24, 2008
THIS JUST IN!!!! NEW HOUSING BILL SIGNED OFF!
This just in from the California Association of REALTORS (R)
PRESIDENT BUSH DROPS OPPOSITION TO HOUSING BILL EXPECTED FOR A FULL VOTE TODAY!!!!!!!!!!
The White House today said President Bush has dropped his opposition to a sweeping housing bill aimed at shoring up the nation's troubled mortgage companies and assisting homeowners facing foreclosure.The measure, which includes a federal assistance plan for the ailing mortgage giants Fannie Mae and Freddie Mac, also calls for $3.9 billion to pay for grants to help local governments purchase and refurbish foreclosed properties, the component of the measure Bush opposed. Foreclosed properties are becoming a significant financial drain on local municipalities, driving down home values in nearby neighborhoods, creating blight, and impacting the cities' property tax reservoirs.The measure also would permanently increase the cap on mortgage loans guaranteed by Fannie and Freddie to a maximum of $625,000 from $417,000.
More Good News!
LeadingRE Housing Beat: Sluggish but We See Light at the End of the Tunnel
CHICAGO (7/16/08) – A survey of Leading Real Estate Companies of the World® brokers in early July indicates some easing of adverse conditions in the housing market, with 59% of respondents from throughout the country indicating that they are seeing a stronger market in the last 60 days, even after factoring in normal seasonal changes.
Overabundant supply has been one of the hurdles in the market, and nearly 20% of brokers are seeing a decline in inventory from a year ago, which has not been the case in the last several months. While the vast majority (82%) indicates that prices are down in the past year, 75% of those indicated that the decline was less than 10%, and 33% indicated a decline of under 5%.
Interestingly, with all of the focus on foreclosures, only a third said that such properties have had a significant impact on prices in their area, which is consistent with the fact that the majority of foreclosures are occurring in about eight states.
Experiences were mixed in terms of which market segments were the slowest in this environment, with 31% indicating the mid-range “move-up” market, 55% pointing to the high-end market, and 13% saying that the first-time buyer market is the most sluggish.
Respondents were from all areas of the country: Southeast 38%; Northeast 29%; Midwest 17%; Southwest 14%; and Western states 6%.
The Leading Real Estate Companies of the World® (LeadingRE) network is comprised of nearly 700 of the top locally-branded companies in the country, with 5,500 offices and annual homes sales of $370 billion in 2007, more than any national franchise brand. The organization also has members in 38 countries abroad.
“We believe our affiliates represent a good cross-section of the U.S. brokerage community because many of these firms are the market leaders in their areas and encompass a large number of transactions. The findings from this month’s ‘Housing Beat’ survey mirror what others in the industry are reporting – that we are not out of the woods yet, but that inventory is beginning to be absorbed, financing difficulties have eased, sellers are more realistic about pricing and buyers are growing impatient with waiting to purchase their next home.”
As always - please feel free to call or email me anytime with any questions you have!
Happy House Hunting!
Stacy
PRESIDENT BUSH DROPS OPPOSITION TO HOUSING BILL EXPECTED FOR A FULL VOTE TODAY!!!!!!!!!!
The White House today said President Bush has dropped his opposition to a sweeping housing bill aimed at shoring up the nation's troubled mortgage companies and assisting homeowners facing foreclosure.The measure, which includes a federal assistance plan for the ailing mortgage giants Fannie Mae and Freddie Mac, also calls for $3.9 billion to pay for grants to help local governments purchase and refurbish foreclosed properties, the component of the measure Bush opposed. Foreclosed properties are becoming a significant financial drain on local municipalities, driving down home values in nearby neighborhoods, creating blight, and impacting the cities' property tax reservoirs.The measure also would permanently increase the cap on mortgage loans guaranteed by Fannie and Freddie to a maximum of $625,000 from $417,000.
More Good News!
LeadingRE Housing Beat: Sluggish but We See Light at the End of the Tunnel
CHICAGO (7/16/08) – A survey of Leading Real Estate Companies of the World® brokers in early July indicates some easing of adverse conditions in the housing market, with 59% of respondents from throughout the country indicating that they are seeing a stronger market in the last 60 days, even after factoring in normal seasonal changes.
Overabundant supply has been one of the hurdles in the market, and nearly 20% of brokers are seeing a decline in inventory from a year ago, which has not been the case in the last several months. While the vast majority (82%) indicates that prices are down in the past year, 75% of those indicated that the decline was less than 10%, and 33% indicated a decline of under 5%.
Interestingly, with all of the focus on foreclosures, only a third said that such properties have had a significant impact on prices in their area, which is consistent with the fact that the majority of foreclosures are occurring in about eight states.
Experiences were mixed in terms of which market segments were the slowest in this environment, with 31% indicating the mid-range “move-up” market, 55% pointing to the high-end market, and 13% saying that the first-time buyer market is the most sluggish.
Respondents were from all areas of the country: Southeast 38%; Northeast 29%; Midwest 17%; Southwest 14%; and Western states 6%.
The Leading Real Estate Companies of the World® (LeadingRE) network is comprised of nearly 700 of the top locally-branded companies in the country, with 5,500 offices and annual homes sales of $370 billion in 2007, more than any national franchise brand. The organization also has members in 38 countries abroad.
“We believe our affiliates represent a good cross-section of the U.S. brokerage community because many of these firms are the market leaders in their areas and encompass a large number of transactions. The findings from this month’s ‘Housing Beat’ survey mirror what others in the industry are reporting – that we are not out of the woods yet, but that inventory is beginning to be absorbed, financing difficulties have eased, sellers are more realistic about pricing and buyers are growing impatient with waiting to purchase their next home.”
As always - please feel free to call or email me anytime with any questions you have!
Happy House Hunting!
Stacy
Monday, July 21, 2008
Summertime is in Full Swing! What Have You Done for FUN?
Summer's here and the weather has been wonderful these past few days in southern California! It is a wonderful time to look around and see what we all around us and be very thankful! We have had a very warm summer, but the past few days have been pleasant! Glendora has kicked off summer in the usual events -- all which are fun and "free" for everyone! If you have not left town --remember the city of Glendora offers free movies in the park at dusk on Wednesdays through July . Thursday's we have our Farmer's Market just south of Foothill Blvd. on Glendora Avenue. There are also concerts in the park every Sunday evening. There are also plenty of church camps and community services classes and camps to keep everyone busy! It seems we are as busy now as we were during the school year!
This past Sunday I held an open house at my listing in La Verne and the mild weather -- 89 degrees -- with a mild breeze -- brought out a lot of buyers. If you are looking to buy - and wondering when the right time is -- I believe it is now. Prices are still low and FHA financing is back. This is allowing more people to apply for and receive wonderful fixed rate loans.
There is a new book out called "Confessions of a Sub prime Lender" by Richard Bitner which details, in part, what happened the last few years in the mortgage lending industry. The author states the system failed in many levels, and in his opinion, Wall Street called many of the shots regarding mortgage lending guidelines. While I have not read the book, I am sure it is just the first of many to hit the bookstores in the next few years. Even as we think about what happened, and we all probably know someone negatively affected by the sub prime market, it is important to remember it was really a small percent of the population affected by these loans. I can confidently say as a full-time REALTOR (R) that plenty of well-qualified people are getting into the market now and getting wonderful deals.
As you enjoy your summer, I invite you to explore the possibility of owning your first home. If you own a home, summer is a wonderful time to enjoy your very own place in this world!
Here's to happy memories -- and new ones in the making!
Stacy
This past Sunday I held an open house at my listing in La Verne and the mild weather -- 89 degrees -- with a mild breeze -- brought out a lot of buyers. If you are looking to buy - and wondering when the right time is -- I believe it is now. Prices are still low and FHA financing is back. This is allowing more people to apply for and receive wonderful fixed rate loans.
There is a new book out called "Confessions of a Sub prime Lender" by Richard Bitner which details, in part, what happened the last few years in the mortgage lending industry. The author states the system failed in many levels, and in his opinion, Wall Street called many of the shots regarding mortgage lending guidelines. While I have not read the book, I am sure it is just the first of many to hit the bookstores in the next few years. Even as we think about what happened, and we all probably know someone negatively affected by the sub prime market, it is important to remember it was really a small percent of the population affected by these loans. I can confidently say as a full-time REALTOR (R) that plenty of well-qualified people are getting into the market now and getting wonderful deals.
As you enjoy your summer, I invite you to explore the possibility of owning your first home. If you own a home, summer is a wonderful time to enjoy your very own place in this world!
Here's to happy memories -- and new ones in the making!
Stacy
Friday, July 11, 2008
This just in from the California Association of REALTORS(R)
FORECLOSURE RELIEF BILL BECOMES LAWThis week, the State Legislature enacted foreclosure reform law to address the adverse effects of high foreclosure rates in California. The new law requires lenders to contact homeowners to explore options for avoiding foreclosure at least 30 days before filing a notice of default. It also requires owners acquiring property through foreclosure to maintain the exterior of vacant residential properties. The new law also extends from 30 to 60 days the time for residential tenants to move out of properties that have been foreclosed upon, unless other laws apply. These requirements will remain in effect until January 1, 2013. The full text of Senate Bill 1137 (Perata) is available at www.leginfo.ca.gov.
- Contact Between Lender and Borrower: Effective on or about September 8, 2008, a lender, trustee, or authorized agent may not file a notice of default until 30 days after contacting a borrower to assess the borrower's financial situation and explore options for avoiding foreclosure. A lender must generally contact the borrower in person or by telephone, or satisfy due diligence requirements for contacting a borrower. During the initial contact, the lender must inform the borrower of the right to request a meeting with the lender within 14 days. The lender must also give the borrower the toll-free number for finding a HUD-certified housing counseling agency. A subsequent notice of default must include the lender's declaration that it has contacted the borrower, tried with due diligence to contact the borrower, or the borrower has surrendered the property. A lender who had already filed a notice of default before the enactment of this law must include a simila r declaration in the notice of sale. This requirement to contact borrowers applies to loans secured by owner-occupied residences made from 2003 to 2007. Certain exemptions apply if the borrower has filed for bankruptcy, surrendered the property, or contracted with a person or entity whose primary business is advising people, who have decided to leave their homes, on how to extend the foreclosure process and avoid their contractual obligations.- Maintenance of Vacant Properties: Effective July 8, 2008, anyone who acquires property through foreclosure must maintain the exterior of vacant residential property. Violations of this law include permitting excessive foliage growth that diminishes the value of surrounding properties, failing to take action against trespassers or squatters, failing to take action to prevent mosquitoes from breeding in standing water, or other public nuisances. This law authorizes a governmental entity to impose a civil fine up to $1,000 per day for any violation, as long as the owner has been given notice and an opportunity to remedy the violation. A violator must be given at least 14 days to begin, and 30 days to complete, such remediation before a fine can be assessed.- 60-Day Notice to Terminate Tenants: Effective July 8, 2008, a tenant or subtenant in possession of a rental housing unit that has been sold through foreclosure is generally entitled to a 60-day written notice to quit, not just 30 days. However, a borrower who remains on the property after foreclosure may be served a three-day notice to terminate. This law does not affect, among other things, rent-controlled properties with just-cause evictions. Effective on or about September 8, 2008, the lender, trustee, or authorized agent posting a notice of sale must also post and mail a specified notice of a tenant's right to a 60-day eviction notice from the new owner, unless other laws apply. This requirement to notify tenants of their rights applies to loans secured by residential real property where the borrower has a different billing address than the property address.
As always, if you have any questions about this or other Real Estate related issues, please contact me!
stacy.dover1@era.com 626-429-7361
Best,
Stacy
- Contact Between Lender and Borrower: Effective on or about September 8, 2008, a lender, trustee, or authorized agent may not file a notice of default until 30 days after contacting a borrower to assess the borrower's financial situation and explore options for avoiding foreclosure. A lender must generally contact the borrower in person or by telephone, or satisfy due diligence requirements for contacting a borrower. During the initial contact, the lender must inform the borrower of the right to request a meeting with the lender within 14 days. The lender must also give the borrower the toll-free number for finding a HUD-certified housing counseling agency. A subsequent notice of default must include the lender's declaration that it has contacted the borrower, tried with due diligence to contact the borrower, or the borrower has surrendered the property. A lender who had already filed a notice of default before the enactment of this law must include a simila r declaration in the notice of sale. This requirement to contact borrowers applies to loans secured by owner-occupied residences made from 2003 to 2007. Certain exemptions apply if the borrower has filed for bankruptcy, surrendered the property, or contracted with a person or entity whose primary business is advising people, who have decided to leave their homes, on how to extend the foreclosure process and avoid their contractual obligations.- Maintenance of Vacant Properties: Effective July 8, 2008, anyone who acquires property through foreclosure must maintain the exterior of vacant residential property. Violations of this law include permitting excessive foliage growth that diminishes the value of surrounding properties, failing to take action against trespassers or squatters, failing to take action to prevent mosquitoes from breeding in standing water, or other public nuisances. This law authorizes a governmental entity to impose a civil fine up to $1,000 per day for any violation, as long as the owner has been given notice and an opportunity to remedy the violation. A violator must be given at least 14 days to begin, and 30 days to complete, such remediation before a fine can be assessed.- 60-Day Notice to Terminate Tenants: Effective July 8, 2008, a tenant or subtenant in possession of a rental housing unit that has been sold through foreclosure is generally entitled to a 60-day written notice to quit, not just 30 days. However, a borrower who remains on the property after foreclosure may be served a three-day notice to terminate. This law does not affect, among other things, rent-controlled properties with just-cause evictions. Effective on or about September 8, 2008, the lender, trustee, or authorized agent posting a notice of sale must also post and mail a specified notice of a tenant's right to a 60-day eviction notice from the new owner, unless other laws apply. This requirement to notify tenants of their rights applies to loans secured by residential real property where the borrower has a different billing address than the property address.
As always, if you have any questions about this or other Real Estate related issues, please contact me!
stacy.dover1@era.com 626-429-7361
Best,
Stacy
Thursday, July 10, 2008
The Latest...
Have you ever felt like times change in the blink of an eye? There are times that change is great and times it doesn't seem quick enough! I am really excited because the latest stories in the paper and also word-of-mouth from those who know in the real estate and mortgage industries is . . . The market is changing! Are we still spiralling downward? No! If there was a pulse we could feel, it would be speeding up. A year ago, we were on the cusp of the decline in real estate tranactions . . . we all sat and speculated. Now, we are faced with a market that is so full of inventory it is literally bloated with GREAT buys! And guess what? People are taking notice!
When was the last time you have heard about multiple offers and bidding wars on a property? You may think that was years ago, in the boom times. Guess what? It is happening again! Now, I will cautiously say this is not like the boom times with inflated values and loans - there is much prudence on the part of the banks, and also with regard to the buyers.
The market is changing, though...All the people priced out previously who waited patiently until a time when prices were reasonable, their money was saved and they could get a great loan rate are waking up and realizing that the time is now! There are properties priced so low they are sparking bidding wars (Yes, in Glendora, nonetheless). Look around and you will start to notice that the house up the street priced way below market value is selling - and it is selling for more than the asking price.
The real estate market has its share of ups and downs; the change is always inevitable. It has not been change in the blinks of an eye, rather like change as one wakes up from a long slumber.
As the rest of America forces open their eyes, blinks and adjusts their focus, you may realize the time to act is now!
As always I am here to answer any questions you have about real estate! Please call or email me and I will promise you service you can TRUST!
Happy shopping!
Stacy
When was the last time you have heard about multiple offers and bidding wars on a property? You may think that was years ago, in the boom times. Guess what? It is happening again! Now, I will cautiously say this is not like the boom times with inflated values and loans - there is much prudence on the part of the banks, and also with regard to the buyers.
The market is changing, though...All the people priced out previously who waited patiently until a time when prices were reasonable, their money was saved and they could get a great loan rate are waking up and realizing that the time is now! There are properties priced so low they are sparking bidding wars (Yes, in Glendora, nonetheless). Look around and you will start to notice that the house up the street priced way below market value is selling - and it is selling for more than the asking price.
The real estate market has its share of ups and downs; the change is always inevitable. It has not been change in the blinks of an eye, rather like change as one wakes up from a long slumber.
As the rest of America forces open their eyes, blinks and adjusts their focus, you may realize the time to act is now!
As always I am here to answer any questions you have about real estate! Please call or email me and I will promise you service you can TRUST!
Happy shopping!
Stacy
Monday, June 30, 2008
Happy 4th of July!
This is it - My favorite summer holiday! As a child growing up in Glendora, the 4th of July was an exciting time as we could feel the heat of summer in full swing, we were used to lazy days of swimming and relaxing, and ice cream was a daily treat! Although we were usually in town for the holiday, it always felt like we were on vacation! The 4th of July brought the annual Twilight Zone marathon on channel 9 (before it was even KCAL -- before cable!); with the background noise of postmodern televised science fiction and the foreground laughter, swimming pool games of "Marco-Polo", diving board hi jinks and unabashed over-abundance, we rang in our Independence. Although, as a child, I felt it was the Independence from responsibilities, I have come to internalize it as the Independence we have in America that is cause for celebration.
In an election year, with a war going on out of our daily sight, and in a time where the world seems to move too fast - I hope the dream of owning a home can become realized for you - if has not already been. A home is not just a place to "be", for me, it is an anchor to all that is real for me and my family. A home is a place to live, thrive, center, and enjoy what we have as Americans.
A home is also a place to think about giving back to those in need. I invite you to search the website for Habitat for Humanity at www.habitat.org, to find out more ways you can help those in need. If you are in search of assistance, they may be able to help you as well.
While so many of us are concerned with the dollar value of our home - our biggest investment - let's keep in perspective we all have an equal right, ability and chance to own a home - whether it is a condo, mobile home or single family residence. That is a right to be celebrated!
HAPPY 4th of July!!!!!!!!!!!
Stacy
In an election year, with a war going on out of our daily sight, and in a time where the world seems to move too fast - I hope the dream of owning a home can become realized for you - if has not already been. A home is not just a place to "be", for me, it is an anchor to all that is real for me and my family. A home is a place to live, thrive, center, and enjoy what we have as Americans.
A home is also a place to think about giving back to those in need. I invite you to search the website for Habitat for Humanity at www.habitat.org, to find out more ways you can help those in need. If you are in search of assistance, they may be able to help you as well.
While so many of us are concerned with the dollar value of our home - our biggest investment - let's keep in perspective we all have an equal right, ability and chance to own a home - whether it is a condo, mobile home or single family residence. That is a right to be celebrated!
HAPPY 4th of July!!!!!!!!!!!
Stacy
Monday, June 23, 2008
JUMBO LOAN FACTS
The Economic Stimulus Act of 2008 signed into effect in February brought about many great opportunities to home buyers in California (and nationwide!) -
JUMBO LOAN LIMITS ARE UP! Previous limits were $417,000, the new limit is now $729,750 WOW! But you must act fast! Limits expire as of December 31, 2008.
Go to this link to check loan limits in YOUR AREA of California: https://entp.hud.gov/idapp/html/hicostlook.cfm or you can use this map: www.fhaoutreach.com
Yesterday, despite the 100 + degree weather, I held an Open House in Covina and had about 50% more buyers than previous months. Although the weather was awful, people are actively searching for a wonderful home because rates are still low and the prices are wonderful, too! There is plenty of inventory to choose from and there are sellers willing to make concessions! These loan limits are allowing more people to realize the dream of owning a home with a good loan package.
As always, if you have any questions - or have a friend or family member with questions, please feel free to pass them through my comments section on my blog (it is public, though, so do not leave personal information) or you may email me anytime at:
stacy.dover1@era.com
Happy Summer!
Stacy
JUMBO LOAN LIMITS ARE UP! Previous limits were $417,000, the new limit is now $729,750 WOW! But you must act fast! Limits expire as of December 31, 2008.
Go to this link to check loan limits in YOUR AREA of California: https://entp.hud.gov/idapp/html/hicostlook.cfm or you can use this map: www.fhaoutreach.com
Yesterday, despite the 100 + degree weather, I held an Open House in Covina and had about 50% more buyers than previous months. Although the weather was awful, people are actively searching for a wonderful home because rates are still low and the prices are wonderful, too! There is plenty of inventory to choose from and there are sellers willing to make concessions! These loan limits are allowing more people to realize the dream of owning a home with a good loan package.
As always, if you have any questions - or have a friend or family member with questions, please feel free to pass them through my comments section on my blog (it is public, though, so do not leave personal information) or you may email me anytime at:
stacy.dover1@era.com
Happy Summer!
Stacy
Thursday, June 12, 2008
Now is the time for a GOOD BUY!
School is officially out for the summer here in Glendora! Although spring is the "official" time of rebirth and change in nature, summer seems to bring about a lot on its own! Everything and everyone seems to grow so much in the summer months! Change is inevitable as we begin summer and the San Gabriel Valley Tribune has posted an article stating how good the market is for buyers!
The article information is listed below ... Please let me know your thoughts and comments about the current state of the market!
Pending home sales rise
By Kevin Smith, Staff Writer
Pending home sales rose unexpectedly in April to their highest reading since October but were still down 13 percent down from a year ago, according to the National Association of Realtors. Lawrence Yun, the association's chief economist, said pending sales contracts have ticked up in areas with the largest price declines such as Detroit and Las Vegas.
"Bargain hunters have entered the market en masse," he said. "Sharp price reductions are leading to a quicker discovery of price equilibrium points." That trend is also occurring in Southern California, although the The California Association of Realtors doesn't compile reports on pending home sales. "Bargain hunters who were on the sidelines are seeing that we're at the bottom - or at least near enough to the bottom - to get into a contract," CAR Chief Economist Leslie Appleton-Young said Monday. "But you don't really know it's the bottom until six months later when you can look back and make sure you've got a clear trend."
The National Association of Realtors' seasonally adjusted index of pending sales for existing homes rose to 88.2 in April from a March reading of 83.0, the lowest since the index was started in 2001. The index stood at 101.5 in April 2007. Wall Street economists polled by Thomson/IFR had predicted the index would remain steady at 83.
A reading of 100 is equal to the average level of sales activity in 2001.
Tom Adams, owner of Century 21 Adams & Barnes, said prospective buyers shouldn't sit on the fence for too long.
"Everything considered, this is a great time to buy," he said. "There's plenty of inventory, prices are down, property taxes are down and interest rates are down." Buyers with good credit who can pull together the down payment and have the ability to repay the debt should have no problem getting a loan, Adams said.
And the market bottom? "I think we'll probably hit the bottom, if I look into my crystal ball ... in the next month or two," Adams said. "I just bought a place in Arizona on the river. I saw an opportunity where two years ago I couldn't have afforded to buy. I took advantage of it."
Global Insight economist Patrick Newport tempered his enthusiasm for the surprising increase in April sales.
"It's good news, but I'm not jumping for joy because I'm not convinced that it's telling us things are picking up," he said "It's telling me that banks are dumping properties at fire sale prices, spurring home sales." Newport noted that inventory remains at record highs and is growing, especially in the West where sales showed a sharp increase.
Appleton-Young said the industry's problems aren't over yet.
As always, if you have any questions about this article I have posted, please feel free to email me at: stacy.dover1@era.com
Be sure to answer the new poll listed on my blog! Thanks to all of you have answered past polls - look for an article utilizing statistics compiled from my last two polls in the the next week!
Happy Summer Home-Shopping!
Stacy
The article information is listed below ... Please let me know your thoughts and comments about the current state of the market!
Pending home sales rise
By Kevin Smith, Staff Writer
Pending home sales rose unexpectedly in April to their highest reading since October but were still down 13 percent down from a year ago, according to the National Association of Realtors. Lawrence Yun, the association's chief economist, said pending sales contracts have ticked up in areas with the largest price declines such as Detroit and Las Vegas.
"Bargain hunters have entered the market en masse," he said. "Sharp price reductions are leading to a quicker discovery of price equilibrium points." That trend is also occurring in Southern California, although the The California Association of Realtors doesn't compile reports on pending home sales. "Bargain hunters who were on the sidelines are seeing that we're at the bottom - or at least near enough to the bottom - to get into a contract," CAR Chief Economist Leslie Appleton-Young said Monday. "But you don't really know it's the bottom until six months later when you can look back and make sure you've got a clear trend."
The National Association of Realtors' seasonally adjusted index of pending sales for existing homes rose to 88.2 in April from a March reading of 83.0, the lowest since the index was started in 2001. The index stood at 101.5 in April 2007. Wall Street economists polled by Thomson/IFR had predicted the index would remain steady at 83.
A reading of 100 is equal to the average level of sales activity in 2001.
Tom Adams, owner of Century 21 Adams & Barnes, said prospective buyers shouldn't sit on the fence for too long.
"Everything considered, this is a great time to buy," he said. "There's plenty of inventory, prices are down, property taxes are down and interest rates are down." Buyers with good credit who can pull together the down payment and have the ability to repay the debt should have no problem getting a loan, Adams said.
And the market bottom? "I think we'll probably hit the bottom, if I look into my crystal ball ... in the next month or two," Adams said. "I just bought a place in Arizona on the river. I saw an opportunity where two years ago I couldn't have afforded to buy. I took advantage of it."
Global Insight economist Patrick Newport tempered his enthusiasm for the surprising increase in April sales.
"It's good news, but I'm not jumping for joy because I'm not convinced that it's telling us things are picking up," he said "It's telling me that banks are dumping properties at fire sale prices, spurring home sales." Newport noted that inventory remains at record highs and is growing, especially in the West where sales showed a sharp increase.
Appleton-Young said the industry's problems aren't over yet.
As always, if you have any questions about this article I have posted, please feel free to email me at: stacy.dover1@era.com
Be sure to answer the new poll listed on my blog! Thanks to all of you have answered past polls - look for an article utilizing statistics compiled from my last two polls in the the next week!
Happy Summer Home-Shopping!
Stacy
Friday, May 30, 2008
Believe it or not -- HOME SALES INCREASED IN APRIL !!!!!!
Wednesday, May 28, 2008
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
C.A.R. REPORTS SALES INCREASED 2.5 PERCENT, MEDIAN HOME PRICE FELL 32 PERCENT IN APRIL Home sales increased 2.5 percent in April in California compared with the same period a year ago, while the median price of an existing home fell 32 percent, C.A.R. reported Friday."Home sales registered a 2.5 percent year-to-year gain compared with April 2007, ending a 30-month string of year-to-year percentage decreases that began in October 2005," said C.A.R. President William E. Brown. "This is not to say that the credit crunch that has contributed to the sales decline has disappeared. Both tighter underwriting standards and the ongoing effects of the credit/liquidity crunch continue to constrain sales."Closed escrow sales of existing, single-family detached homes in California totaled 366,720 in April at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity increased 2.5 percent from the revised 357,640 sales pace recorded in April 2007.
Now, if anyone has any questions about this information, I am compiling sales figures for the last 2 months in Glendora and I will have the info posted this weekend. The sales we have seen are increasing, with good deals receiving multiple offers - some over 10 , 12, 14 etc. There are some VERY GOOD DEALS right now -- here in Glendora!
IF INTERESTED -- ASK ME ABOUT THE PROBATE ON MYRTLE IN GLENDORA UNDER $390,000!!!!!!!!! THIS IS REALLY NOT GOING TO LAST!
The market is changing, but investors are buying -- don't let them bid up the market and reduce the affordability rates again! Now is the time to get in the market!
Email me with questions!
Stacy
Thursday, May 15, 2008
Your Relational Realtor ®
I am coining a term: Relational Realtor. How would I define this? I am a REALTOR® who works on my relationships within my community and circle of friends, family and acquaintances in order to know the needs and circumstances of my clients. In using the term relational I am implying there is a relationship – a connection – be it a friendship, or a common interest which brings us closer. I am also a licensed
REALTOR® by profession and use my professional skills and training to assist those I know with the need for a professional advisor in the area of real estate.
Why is this significant to me? Well, it is significant to me – and I hope to others – because I have seen many people without a real relationship trying to assist others in huge life-changing decisions. A lack of relationship can lead to a lack of understanding – or caring about what the decision to buy or sell means to them as a person or their family. Perhaps I care too much at times. I tend to side with the belief that business is always personal. Although I like to think of business as business, I know there is always someone who is taking it personally!
So, in the world of internet searches, real estate confusion and mass-media financial battle-cries, I hope you remember to ask me about your thoughts and your needs regarding real estate. Do not be afraid by what you hear – and if you are afraid, I will let you know if you have a real reason to be concerned! I promise to give you straight answers and I promise to value the relationship we forge together in support of your real estate needs!
Honesty, Integrity….Service you can trust!
Stacy
REALTOR® by profession and use my professional skills and training to assist those I know with the need for a professional advisor in the area of real estate.
Why is this significant to me? Well, it is significant to me – and I hope to others – because I have seen many people without a real relationship trying to assist others in huge life-changing decisions. A lack of relationship can lead to a lack of understanding – or caring about what the decision to buy or sell means to them as a person or their family. Perhaps I care too much at times. I tend to side with the belief that business is always personal. Although I like to think of business as business, I know there is always someone who is taking it personally!
So, in the world of internet searches, real estate confusion and mass-media financial battle-cries, I hope you remember to ask me about your thoughts and your needs regarding real estate. Do not be afraid by what you hear – and if you are afraid, I will let you know if you have a real reason to be concerned! I promise to give you straight answers and I promise to value the relationship we forge together in support of your real estate needs!
Honesty, Integrity….Service you can trust!
Stacy
Sunday, May 11, 2008
Wall Street Journal Article - The Housing Crisis is Over!
This is from this a mortgage broker I work with and trust. Please check out the article from the Wall Street Journal!
I’ve got fabulous news!! Actually, the news is from the Wall Street Journal. Attached is a very interesting research based article opining that the housing crisis is over. It is based on national statistics, but there are points in this article that pertain to our market here in Southern California. It points to affordability, rather than actual prices. Indeed, homes have become affordable again such that when someone wants a $2200 payment, they can indeed buy a house—not true two years ago! I’m sure you’ve all seen multiple offer situations in the past four months, and this is a healthy sign as well that NOW is the time.
The article also compares the current down market with other historical down markets, and the dynamics that are present that cause the market to recover. Most of the general public think they know where the market is headed (downward) which is largely media driven. But I also think most folks don’t realize when the bottom has hit until it is past.
Please refer to WSJ.com and look for "The Housing Crisis is Over"
I’ve got fabulous news!! Actually, the news is from the Wall Street Journal. Attached is a very interesting research based article opining that the housing crisis is over. It is based on national statistics, but there are points in this article that pertain to our market here in Southern California. It points to affordability, rather than actual prices. Indeed, homes have become affordable again such that when someone wants a $2200 payment, they can indeed buy a house—not true two years ago! I’m sure you’ve all seen multiple offer situations in the past four months, and this is a healthy sign as well that NOW is the time.
The article also compares the current down market with other historical down markets, and the dynamics that are present that cause the market to recover. Most of the general public think they know where the market is headed (downward) which is largely media driven. But I also think most folks don’t realize when the bottom has hit until it is past.
Please refer to WSJ.com and look for "The Housing Crisis is Over"
Friday, May 9, 2008
The Too-much Information Age has Arrived!
Welcome to the age of too-much information!
I am told there was a time in real estate - pre-internet, pre-multiple listing service, that when a listing came up the only people with access to a listing was a REALTOR (R) with a broker affiliation.
All listings were published in a book - imagine that, real pages! - and a client had to meet with a REALTOR (R) face to face to get the information. This face to face meeting was wonderful for an agent and for a client, for various reasons. The most important reason for a face to face meeting is simply because of communication - it is very difficult to convey over email a good sense of what someone is looking for in a home or investment. Although we can pull up listings based on a large number of search fields, a face to face meeting actually helps a REALTOR (R) know who they are working with beyond a screen of words. This is very valuable. Now, that being said, I do realize we are in the age of instant information. I welcome this as a wonderful form of research gathering, fact-finding and communication across the world which is exactly why I have decided it is time for me to start a blog. My goal for this is to be a forum of information gathered by me, a REALTOR (R) in southern California, wife and mom of 3 young kids. I also want to answer real questions posted by real people wondering about the state of the market. The times are confusing, but those of us working in the industry everyday have a good grasp of what is happening - beyond what the media is reporting.
Look to this blog if you want to know more about the real estate market - especially the local market. I promise to give you honest answers and I also promise to not just post articles of information, but to deconstruct what is being reported so that it reflects reality for us in southern California.
- Stacy
I am told there was a time in real estate - pre-internet, pre-multiple listing service, that when a listing came up the only people with access to a listing was a REALTOR (R) with a broker affiliation.
All listings were published in a book - imagine that, real pages! - and a client had to meet with a REALTOR (R) face to face to get the information. This face to face meeting was wonderful for an agent and for a client, for various reasons. The most important reason for a face to face meeting is simply because of communication - it is very difficult to convey over email a good sense of what someone is looking for in a home or investment. Although we can pull up listings based on a large number of search fields, a face to face meeting actually helps a REALTOR (R) know who they are working with beyond a screen of words. This is very valuable. Now, that being said, I do realize we are in the age of instant information. I welcome this as a wonderful form of research gathering, fact-finding and communication across the world which is exactly why I have decided it is time for me to start a blog. My goal for this is to be a forum of information gathered by me, a REALTOR (R) in southern California, wife and mom of 3 young kids. I also want to answer real questions posted by real people wondering about the state of the market. The times are confusing, but those of us working in the industry everyday have a good grasp of what is happening - beyond what the media is reporting.
Look to this blog if you want to know more about the real estate market - especially the local market. I promise to give you honest answers and I also promise to not just post articles of information, but to deconstruct what is being reported so that it reflects reality for us in southern California.
- Stacy
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