Wednesday, December 31, 2008
Wednesday, December 24, 2008
Tuesday, December 9, 2008
Waiting to Buy Home or Waiting to Sale your Home
“The indispensable first step to getting the things you want out of life is this: Decide what you want” Ben Stein Why Wait?
Monday, December 8, 2008
Tuesday, December 2, 2008
East San Diego County Association of REALTORS® Provides Clarus? MarketMetrics? and Clarus? Investor as Member BenefitsLOS ANGELESCA-REBS/C.A.R./ESDCAR
East San Diego County Association of REALTORS® Provides Clarus? MarketMetrics? and Clarus? Investor as Member BenefitsLOS ANGELESCA-REBS/C.A.R./ESDCAR
LOS ANGELES--(BUSINESS WIRE)--
Real Estate Business Services Inc. (REBS) and the East San Diego County Association of REALTORS® today announced that the East San Diego County Association of REALTORS® (ESDCAR) has signed an agreement to provide both Clarus? MarketMetrics? and Clarus? Investor? as a free member benefit. Clarus? MarketMetrics? and Clarus? Investor?, together, retail for $480 for an annual subscription.
The East San Diego County Association of REALTORS®, with more than 1,000 REALTOR® members, is among the growing number of REALTOR® associations nationwide providing their members with the competitive advantage they need in today?s challenging marketplace through the suite of Clarus? products.
?The Clarus? products strengthen our members? position as the experts of the San Diego real estate market,? said Share Smithwick, executive officer of ESDCAR. ?These products differentiate our members by enabling them to more effectively communicate market insights to their clients.?
Clarus? MarketMetrics? generates easy-to-understand market and price-point analysis charts and reports derived from MLS data for REALTORS® to share with their clients. These reports can be invaluable as a prospecting tool, an aid to setting seller expectations, or as a companion set of data to justify a buyer?s offer. With Clarus? MarketMetrics?, ESDCAR members now have access to the most current, relevant local market data that even the savviest client will value.
Clarus? Investor enables agents to engage clients in a healthy discussion about adding real estate to their investment portfolio.
?Our members want to expand their niche in this challenging market,? said ESDCAR 2009 President Candace Waldon. ?Clarus? Investor? allows the residential REALTOR® an opportunity to showcase the investment potential in our area.?
Clarus? MarketMetrics is powered by Terradatum Inc., a provider of real estate technology products based in Glen Ellen, Calif. All agreements regarding the MLS data are between Terradatum and the participating MLS. Terradatum has been generating real estate technology solutions since 1994. In addition to Clarus? MarketMetrics, Terradatum has several other bold and exciting real estate technology products: BrokerMetrics® and BrokerMetrics® Web Tools.
Clarus? MarketMetrics and Clarus? Investor are two of the latest tools in the Clarus? REsource product line provided by REBS.
The East San Diego County Association of REALTORS® (ESDCAR) is a professional trade association whose origins date to the 1950s.
Real Estate Business Services Inc. (REBS) is a subsidiary of the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) and is the leading provider of real estate products and services to practitioners in California. Through its RE FormsNet (REFN) subsidiary, REBS is the creator of ZipForm® and WINForms® electronic forms software, available to more than 1,055,000 REALTORS® nationwide.
Leading the way...® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with nearly 180,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
LOS ANGELES--(BUSINESS WIRE)--
Real Estate Business Services Inc. (REBS) and the East San Diego County Association of REALTORS® today announced that the East San Diego County Association of REALTORS® (ESDCAR) has signed an agreement to provide both Clarus? MarketMetrics? and Clarus? Investor? as a free member benefit. Clarus? MarketMetrics? and Clarus? Investor?, together, retail for $480 for an annual subscription.
The East San Diego County Association of REALTORS®, with more than 1,000 REALTOR® members, is among the growing number of REALTOR® associations nationwide providing their members with the competitive advantage they need in today?s challenging marketplace through the suite of Clarus? products.
?The Clarus? products strengthen our members? position as the experts of the San Diego real estate market,? said Share Smithwick, executive officer of ESDCAR. ?These products differentiate our members by enabling them to more effectively communicate market insights to their clients.?
Clarus? MarketMetrics? generates easy-to-understand market and price-point analysis charts and reports derived from MLS data for REALTORS® to share with their clients. These reports can be invaluable as a prospecting tool, an aid to setting seller expectations, or as a companion set of data to justify a buyer?s offer. With Clarus? MarketMetrics?, ESDCAR members now have access to the most current, relevant local market data that even the savviest client will value.
Clarus? Investor enables agents to engage clients in a healthy discussion about adding real estate to their investment portfolio.
?Our members want to expand their niche in this challenging market,? said ESDCAR 2009 President Candace Waldon. ?Clarus? Investor? allows the residential REALTOR® an opportunity to showcase the investment potential in our area.?
Clarus? MarketMetrics is powered by Terradatum Inc., a provider of real estate technology products based in Glen Ellen, Calif. All agreements regarding the MLS data are between Terradatum and the participating MLS. Terradatum has been generating real estate technology solutions since 1994. In addition to Clarus? MarketMetrics, Terradatum has several other bold and exciting real estate technology products: BrokerMetrics® and BrokerMetrics® Web Tools.
Clarus? MarketMetrics and Clarus? Investor are two of the latest tools in the Clarus? REsource product line provided by REBS.
The East San Diego County Association of REALTORS® (ESDCAR) is a professional trade association whose origins date to the 1950s.
Real Estate Business Services Inc. (REBS) is a subsidiary of the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) and is the leading provider of real estate products and services to practitioners in California. Through its RE FormsNet (REFN) subsidiary, REBS is the creator of ZipForm® and WINForms® electronic forms software, available to more than 1,055,000 REALTORS® nationwide.
Leading the way...® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with nearly 180,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
Monday, December 1, 2008
You can qualify for mortgage, it's just tougher
Marni Leff Kottle, Special to The Chronicle
Sunday, November 30, 2008
There is something that mortgage lenders want Bay Area home buyers to know: They are open for business.
While it is certainly harder to get a loan today than it was two years ago, lenders say it's far from impossible for would-be borrowers with the right credentials. In fact many in the industry praise the return to normal, where loan candidates are required to prove they can pay back the money they borrow.
"You can't turn on the TV or pick up the newspaper without reading about the credit crisis," said Arlene Allert, a regional manager and vice president at Wells Fargo Home Mortgage. "It leads to the perception that consumers can't get the credit they need to buy a home."
Across the board, mortgage industry executives, real estate agents and others say that news stories about Wall Street's woes have left people convinced that it's simply not possible to get a loan.
"Prospective home buyers come in and they say, 'This is probably impossible, but I would like to buy a home,' " said John Holmgren, a spokesman for the California Association of Mortgage Brokers, an industry trade group.
"They say, 'If General Motors can't get a loan then it must be impossible for somebody like Little Mr. Me to borrow money, right?' But it is possible."
Lenders and others in the mortgage industry were very clear that the bar has risen. Today borrowers need three things to qualify for a loan: documentable income, good credit - a score of at least 620 - and a down payment in most cases of at least 10 percent, according to the California Association of Mortgage Brokers.
"Mortgages haven't gone away. Mortgage lending hasn't gone away," Allert said. "We've just gone back in time."
Down payment
Gone are the days of buying a home with zero down, mortgage experts said. But exactly how much cash a home buyer needs to come up with will depend on the situation.
The best rates and widest variety of loans are available to borrowers who have at least 20 percent to put down, said Matt Vernon, a national sales executive with Bank of America. "The size of the down payment ranges by product, but the 20 percent number is a safe one to guarantee a good rate," Vernon said.
"Certainly some products are a little less, some may have higher requirements than that." Buyers with less than 20 percent to put down will wind up paying more for their loans because they will almost certainly need to take out mortgage insurance.
"Any time you're under 20 percent, you're going to need mortgage insurance," Vernon said.
Borrowers can pay for the mortgage insurance in a number of ways, but no matter how it is done, it will raise the cost of borrowing money, said Holmgren, the spokesman for the mortgage trade group.
Home buyers often rely on lender-paid insurance, which builds the cost of insurance into the loan by raising the interest rate. Consumers can also opt for private mortgage insurance programs, where the borrower makes monthly payments separately from the loan just as they would for any other type of insurance.
Still, some real estate experts pointed out, even though home prices have fallen sharply in the Bay Area, many potential buyers are going to struggle to come up with such a significant down payment.
The median price for a home or condo in San Francisco dropped 12.1 percent last month to $699,000, according to MDS DataQuick, the real estate information service. A down payment of 20 percent for a median priced home would be $139,800 and it would take $69,900 to meet the lower bar of 10 percent based on the October figures.
That's a lot for most people, said Ken Rosen, chairman of the Fisher Center for Real Estate and Urban Economics at UC Berkeley.
"It's a very big number - 20 percent is a very stiff standard," Rosen said. "You are talking about $100,000 to $150,000 in cash and people just don't have it." When home prices were rising, it was easy to get loans, Rosen said. Now that the market has collapsed, it's much more difficult, a relationship that doesn't make economic sense.
"At the peak the credit market should be at its tightest, and at the bottom it should loosen up," he said. "The credit market should be counter-cyclical to the housing market."
Good credit
Leery of borrowers who have poor track records, lenders are now reviewing credit reports much more carefully in an attempt to insure that loans are paid back.
"All of us have a written story of our willingness to repay," said Allert. "We look at housing debt, whether it has been paid in the past and paid on time, whether the consumer has fulfilled that obligation on a mortgage or rental history. Has the credit card debt been paid in a timely manner?"
The actual credit score is just one element of a credit report, Allert said. Lenders also examine information such as utility bills in an effort to put together a complete credit history.
Allert and other bank officials were reluctant to site a minimum threshold for a credit score, saying that the standards are changing almost daily and that it depends on each individual's circumstances and the type of loan sought.
Mortgage brokers, however, said typically a borrower needs at least a 620 credit score. "That's one of the hardest parts for people these days," said Ed Craine, chief executive of Smith-Craine Finance, a San Francisco mortgage lender.
The less a borrower has to put down, the higher the credit score requirements are going to be, said Holmgren of the mortgage trade group. He said that's one area where lending standards have changed dramatically as a direct result of the subprime debacle.
"A few years ago, you could have a very, very low credit score and still get a loan for more than 80 percent of the home's value," he said.
Today, borrowers who put down less than 20 percent may need a credit score of as much as 720, he said.
Although Bay Area home prices have fallen, leaving fewer buyers to seek jumbo loans, people seeking to borrow such large amounts of money also need higher credit scores. A new government program has raised the limits on so-called jumbo conforming loans and as of Jan. 1 that limit will be $625,500.
"Anything that falls into that category or lower will be relatively easier to finance," said Craine.
Conventional conforming loans are $417,000 or less. Federal Housing Administration loans are still available in some cases to people with lower credit scores, and often have lower down payment requirements, Craine said. The FHA is a government program that insures mortgages and was created to help people who wouldn't otherwise be able to purchase a home.
Proof of income
The final criterion that is critical for would-be borrowers is documented income high enough to support the monthly payments on the property, lenders said.
"You have to have a realistic expectation of a home that you can afford and that you have the ability to repay," said Bank of America's Vernon. "The industry term is debt-to-income-ratio. What that means is, 'Are you looking at a home that makes sense for you? Do you have the greatest degree of confidence that you will be able to pay back the loan?' "
Lenders are now going over loan applications with a fine-tooth comb, particularly income requirements, Holmgren said.
While much more stringent than what borrowers had come to expect in recent years, current loan standards aren't vastly different from those that existed in the 1980s and 1990s.
"You're going to an institution and asking them for hundreds of thousands of dollars to facilitate a home purchase," he said. "It's right to require some documentation."
And while Rosen, the Berkeley economist, said he expects lenders may eventually loosen up again on the minimum down payment, he said that income documentation requirements are here to stay.
"Full documentation is something we will see for sure, no matter what," Rosen said.
For those home shoppers who do have good credit, money in the bank and income high enough to support the value of the house they are trying to purchase, there may not be a better time to buy a home, said Allert, the Wells Fargo executive.
"Real estate is on sale right now compared to where it has been for a long time, particularly in the Bay Area," she said.
Marni Leff Kottle is a San Francisco freelance writer. Comment at realestate@sfchronicle.com.This article appeared on page K - 2 of the San Francisco Chronicle
Sunday, November 30, 2008
There is something that mortgage lenders want Bay Area home buyers to know: They are open for business.
While it is certainly harder to get a loan today than it was two years ago, lenders say it's far from impossible for would-be borrowers with the right credentials. In fact many in the industry praise the return to normal, where loan candidates are required to prove they can pay back the money they borrow.
"You can't turn on the TV or pick up the newspaper without reading about the credit crisis," said Arlene Allert, a regional manager and vice president at Wells Fargo Home Mortgage. "It leads to the perception that consumers can't get the credit they need to buy a home."
Across the board, mortgage industry executives, real estate agents and others say that news stories about Wall Street's woes have left people convinced that it's simply not possible to get a loan.
"Prospective home buyers come in and they say, 'This is probably impossible, but I would like to buy a home,' " said John Holmgren, a spokesman for the California Association of Mortgage Brokers, an industry trade group.
"They say, 'If General Motors can't get a loan then it must be impossible for somebody like Little Mr. Me to borrow money, right?' But it is possible."
Lenders and others in the mortgage industry were very clear that the bar has risen. Today borrowers need three things to qualify for a loan: documentable income, good credit - a score of at least 620 - and a down payment in most cases of at least 10 percent, according to the California Association of Mortgage Brokers.
"Mortgages haven't gone away. Mortgage lending hasn't gone away," Allert said. "We've just gone back in time."
Down payment
Gone are the days of buying a home with zero down, mortgage experts said. But exactly how much cash a home buyer needs to come up with will depend on the situation.
The best rates and widest variety of loans are available to borrowers who have at least 20 percent to put down, said Matt Vernon, a national sales executive with Bank of America. "The size of the down payment ranges by product, but the 20 percent number is a safe one to guarantee a good rate," Vernon said.
"Certainly some products are a little less, some may have higher requirements than that." Buyers with less than 20 percent to put down will wind up paying more for their loans because they will almost certainly need to take out mortgage insurance.
"Any time you're under 20 percent, you're going to need mortgage insurance," Vernon said.
Borrowers can pay for the mortgage insurance in a number of ways, but no matter how it is done, it will raise the cost of borrowing money, said Holmgren, the spokesman for the mortgage trade group.
Home buyers often rely on lender-paid insurance, which builds the cost of insurance into the loan by raising the interest rate. Consumers can also opt for private mortgage insurance programs, where the borrower makes monthly payments separately from the loan just as they would for any other type of insurance.
Still, some real estate experts pointed out, even though home prices have fallen sharply in the Bay Area, many potential buyers are going to struggle to come up with such a significant down payment.
The median price for a home or condo in San Francisco dropped 12.1 percent last month to $699,000, according to MDS DataQuick, the real estate information service. A down payment of 20 percent for a median priced home would be $139,800 and it would take $69,900 to meet the lower bar of 10 percent based on the October figures.
That's a lot for most people, said Ken Rosen, chairman of the Fisher Center for Real Estate and Urban Economics at UC Berkeley.
"It's a very big number - 20 percent is a very stiff standard," Rosen said. "You are talking about $100,000 to $150,000 in cash and people just don't have it." When home prices were rising, it was easy to get loans, Rosen said. Now that the market has collapsed, it's much more difficult, a relationship that doesn't make economic sense.
"At the peak the credit market should be at its tightest, and at the bottom it should loosen up," he said. "The credit market should be counter-cyclical to the housing market."
Good credit
Leery of borrowers who have poor track records, lenders are now reviewing credit reports much more carefully in an attempt to insure that loans are paid back.
"All of us have a written story of our willingness to repay," said Allert. "We look at housing debt, whether it has been paid in the past and paid on time, whether the consumer has fulfilled that obligation on a mortgage or rental history. Has the credit card debt been paid in a timely manner?"
The actual credit score is just one element of a credit report, Allert said. Lenders also examine information such as utility bills in an effort to put together a complete credit history.
Allert and other bank officials were reluctant to site a minimum threshold for a credit score, saying that the standards are changing almost daily and that it depends on each individual's circumstances and the type of loan sought.
Mortgage brokers, however, said typically a borrower needs at least a 620 credit score. "That's one of the hardest parts for people these days," said Ed Craine, chief executive of Smith-Craine Finance, a San Francisco mortgage lender.
The less a borrower has to put down, the higher the credit score requirements are going to be, said Holmgren of the mortgage trade group. He said that's one area where lending standards have changed dramatically as a direct result of the subprime debacle.
"A few years ago, you could have a very, very low credit score and still get a loan for more than 80 percent of the home's value," he said.
Today, borrowers who put down less than 20 percent may need a credit score of as much as 720, he said.
Although Bay Area home prices have fallen, leaving fewer buyers to seek jumbo loans, people seeking to borrow such large amounts of money also need higher credit scores. A new government program has raised the limits on so-called jumbo conforming loans and as of Jan. 1 that limit will be $625,500.
"Anything that falls into that category or lower will be relatively easier to finance," said Craine.
Conventional conforming loans are $417,000 or less. Federal Housing Administration loans are still available in some cases to people with lower credit scores, and often have lower down payment requirements, Craine said. The FHA is a government program that insures mortgages and was created to help people who wouldn't otherwise be able to purchase a home.
Proof of income
The final criterion that is critical for would-be borrowers is documented income high enough to support the monthly payments on the property, lenders said.
"You have to have a realistic expectation of a home that you can afford and that you have the ability to repay," said Bank of America's Vernon. "The industry term is debt-to-income-ratio. What that means is, 'Are you looking at a home that makes sense for you? Do you have the greatest degree of confidence that you will be able to pay back the loan?' "
Lenders are now going over loan applications with a fine-tooth comb, particularly income requirements, Holmgren said.
While much more stringent than what borrowers had come to expect in recent years, current loan standards aren't vastly different from those that existed in the 1980s and 1990s.
"You're going to an institution and asking them for hundreds of thousands of dollars to facilitate a home purchase," he said. "It's right to require some documentation."
And while Rosen, the Berkeley economist, said he expects lenders may eventually loosen up again on the minimum down payment, he said that income documentation requirements are here to stay.
"Full documentation is something we will see for sure, no matter what," Rosen said.
For those home shoppers who do have good credit, money in the bank and income high enough to support the value of the house they are trying to purchase, there may not be a better time to buy a home, said Allert, the Wells Fargo executive.
"Real estate is on sale right now compared to where it has been for a long time, particularly in the Bay Area," she said.
Marni Leff Kottle is a San Francisco freelance writer. Comment at realestate@sfchronicle.com.This article appeared on page K - 2 of the San Francisco Chronicle
Tuesday, November 25, 2008
Forbes.com States California Real Estate Challenges
The Golden state has recently become a hot spot for residential real estate transactions. Based on figures from Radar Logic, a New York-based derivatives data firm, Sacramento, San Diego, Los Angeles and San Francisco lead the nation in real estate transaction growth, with Sacramento sales up an astounding 75% from last year. It's important to note, though, that many of those sales are of foreclosed properties or by distressed sellers, who may have to sell at a loss. Sacramento prices are down 33% from last year, according to Radar Logic.
Thursday, November 20, 2008
Couple hope fire-safe features will preserve home in future wildfire
Fire marshal says fire-resistant construction is necessary, but awareness is also key
RAINBOW ---- At first glance, Bob and Anne Atkins' house doesn't look too much like a fortress.
Its yellow stucco walls and Mexican tile roof blend in with other houses in the residential area just east of Interstate
15, overlooking Stewart Canyon stretching out to the south.
Watch the video
But it is a fortress of sorts, designed to keep flames and smoldering debris at bay the next time a fire roars over the hill where the couple's 6-acre lot is perched ---- like the Rice Canyon wildfire that razed 219 homes and scorched 9,500 acres in Fallbrook, Rainbow and De Luz a year ago this week.
click here to read whole article
RAINBOW ---- At first glance, Bob and Anne Atkins' house doesn't look too much like a fortress.
Its yellow stucco walls and Mexican tile roof blend in with other houses in the residential area just east of Interstate
15, overlooking Stewart Canyon stretching out to the south.
Watch the video
But it is a fortress of sorts, designed to keep flames and smoldering debris at bay the next time a fire roars over the hill where the couple's 6-acre lot is perched ---- like the Rice Canyon wildfire that razed 219 homes and scorched 9,500 acres in Fallbrook, Rainbow and De Luz a year ago this week.
click here to read whole article
Wednesday, November 19, 2008
Yea Team
Los Gatos High faces Mountain View in CCS volleyball semifinals
By Dick Sparrer
Los Gatos Weekly-Times
Posted: 11/18/2008 04:11:47 PM PST
It won't be the first match of the year between the Los Gatos and Mountain View volleyball teams, but when they collide on Nov. 19 at Valley Christian High School it will certainly be the most important.
The Wildcats and Spartans will square off at 5:30 p.m. Wednesday in the Central Coast Section Division II semifinals with a berth in the Nov. 22 championship match on the line.
By Dick Sparrer
Los Gatos Weekly-Times
Posted: 11/18/2008 04:11:47 PM PST
It won't be the first match of the year between the Los Gatos and Mountain View volleyball teams, but when they collide on Nov. 19 at Valley Christian High School it will certainly be the most important.
The Wildcats and Spartans will square off at 5:30 p.m. Wednesday in the Central Coast Section Division II semifinals with a berth in the Nov. 22 championship match on the line.
Tuesday, November 18, 2008
RECENT HOME SALES RECENT HOME SALES
View map of prior sales information
Home sales are provided by California REsource, a real estate information company that obtains the information from the County Recorder's Office. Information is recorded from deeds after the close of escrow and published within four to eight weeks.
EAST PALO ALTO
1363 Camellia Drive Argent Mortgage to V. & H. Perez for $343,000 on 10/17/08; previous sale 7/05, $530,000
1234 Jervis Ave. E. Villalta to E. & B. Garcia for $230,000 on 10/17/08; previous sale 1/04, $389,000
102 Maple Lane Weeks Street Limited to R. Hallengren for $641,000 on 10/21/08
112 Maple Lane Weeks Street Limited to K. & O. MacK for $639,000 on 10/21/08
1139 O'connor St. Lasalle Bank to E. Lopez for $285,000 on 10/22/08; previous sale 6/05, $580,000
1217 Saratoga Ave. Ravenswood Palms to R. Harris for $126,500 on 10/17/08; previous sale 3/08, $370,000
LOS ALTOS
545 Clark Court Black Trust to F. Lo for $1,400,000 on 11/3/08
1080 Los Altos Ave. 1080 Limited to C. & A. Peterson for $1,385,000 on 10/31/08
594 Magdalena Ave. Bell Trust to L. Gurzhy for $1,240,000 on 10/31/08
152 Pasa Robles Ave. C. Choe to A. & L. Grebene for $1,711,500 on 10/31/08; previous sale 7/05, $990,000
MENLO PARK
3715 Alameda de las Pulgas F. & K. Townsend-Merino to H. Chwu for $1,200,000 on 10/21/08; previous sale 6/06, $1,050,000
335 Hedge Road Kelley Trust to A. Hengehold for $826,000 on 10/21/08
501 Menlo Oaks Drive D. & P. Sincerbox to K. Fickle for $2,600,000 on 10/23/08; previous sale 3/96, $1,030,000
MOUNTAIN VIEW
142 Alley Way R. Bhagat to C. Labrecque for $650,000 on 11/4/08; previous sale 4/03, $464,000
701 Astor Court J. Bahn to J. Saenz for $570,000 on 10/30/08
212 Central Ave. Donnellan Trust to A. Kosut for $690,000 on 10/30/08; previous sale 5/99, $400,482
1114 Doyle Place Squaglia Trust to M. Ulinich for $1,000,000 on 10/30/08
297 Higdon Ave. Bank of New York to W. & W. Wang for $574,000 on 10/31/08; previous sale 6/06, $905,000
126 Iris Drive Castle Principles to J. Hummel for $1,017,500 on 10/31/08
132 Iris Drive Castle Principles to C. Segantini for $1,004,000 on 10/30/08
134 Iris Drive Castle Principles to B. Schneider for $990,000 on 10/31/08
341 Mercy St. Rose Trust to N. & J. Fey for $850,000 on 10/29/08
2040 W. Middlefield Road #9 L. Jackson to S. & I. Saksena for $625,000 on 10/31/08
221 Orchard Glen Court K. Gelman to B. Bargenguast for $870,000 on 10/31/08; previous sale 5/01, $660,000
505 Sleeper Ave. Mcdonald Trust to D. & K. McDonald for $1,300,000 on 11/3/08; previous sale 9/98, $1,250,000
PALO ALTO
2452 W. Bayshore Road #7 Jishung Trust to B. & S. Aiyar for $540,000 on 10/31/08; previous sale 10/04, $380,000
555 Byron St. #103 Ritchey Trust to Hexter Trust for $1,500,000 on 10/31/08
4248 Rickeys Way #C Western Pacific Housing to L. Ryzhik for $276,000 on 11/3/08
REDWOOD CITY
816 6th Ave. R. Campos to Perez Trust for $450,000 on 10/20/08; previous sale 6/06, $700,000
2422 Harding Ave. G. Dillon to G. Chan for $750,000 on 10/23/08
627 Hudson St. Long Beach Mortgage to H. Lin for $500,000 on 10/17/08; previous sale 7/05, $785,000
500 Hurlingame Ave. Lasalle Bank to M. Garcia for $280,000 on 10/20/08; previous sale 5/95, $140,000
1007 Iris St. Bank of America to R. Micheletti for $530,000 on 10/22/08; previous sale 10/04, $650,500
1629 Kentfield Ave. S. Tanaka to M. Erickson for $490,000 on 10/22/08
10 Meadow Lane Fremont Home Loan Trust to R. Lavalley for $456,000 on 10/21/08; previous sale 2/06, $710,000
3290 Page St. Trapp Trust to M. Tan-Banico for $400,000 on 10/22/08
19 Woodleaf Ave. M. Leibel to Becker Trust for $2,210,000 on 10/22/08; previous sale 6/04, $2,249,000
Home sales are provided by California REsource, a real estate information company that obtains the information from the County Recorder's Office. Information is recorded from deeds after the close of escrow and published within four to eight weeks.
EAST PALO ALTO
1363 Camellia Drive Argent Mortgage to V. & H. Perez for $343,000 on 10/17/08; previous sale 7/05, $530,000
1234 Jervis Ave. E. Villalta to E. & B. Garcia for $230,000 on 10/17/08; previous sale 1/04, $389,000
102 Maple Lane Weeks Street Limited to R. Hallengren for $641,000 on 10/21/08
112 Maple Lane Weeks Street Limited to K. & O. MacK for $639,000 on 10/21/08
1139 O'connor St. Lasalle Bank to E. Lopez for $285,000 on 10/22/08; previous sale 6/05, $580,000
1217 Saratoga Ave. Ravenswood Palms to R. Harris for $126,500 on 10/17/08; previous sale 3/08, $370,000
LOS ALTOS
545 Clark Court Black Trust to F. Lo for $1,400,000 on 11/3/08
1080 Los Altos Ave. 1080 Limited to C. & A. Peterson for $1,385,000 on 10/31/08
594 Magdalena Ave. Bell Trust to L. Gurzhy for $1,240,000 on 10/31/08
152 Pasa Robles Ave. C. Choe to A. & L. Grebene for $1,711,500 on 10/31/08; previous sale 7/05, $990,000
MENLO PARK
3715 Alameda de las Pulgas F. & K. Townsend-Merino to H. Chwu for $1,200,000 on 10/21/08; previous sale 6/06, $1,050,000
335 Hedge Road Kelley Trust to A. Hengehold for $826,000 on 10/21/08
501 Menlo Oaks Drive D. & P. Sincerbox to K. Fickle for $2,600,000 on 10/23/08; previous sale 3/96, $1,030,000
MOUNTAIN VIEW
142 Alley Way R. Bhagat to C. Labrecque for $650,000 on 11/4/08; previous sale 4/03, $464,000
701 Astor Court J. Bahn to J. Saenz for $570,000 on 10/30/08
212 Central Ave. Donnellan Trust to A. Kosut for $690,000 on 10/30/08; previous sale 5/99, $400,482
1114 Doyle Place Squaglia Trust to M. Ulinich for $1,000,000 on 10/30/08
297 Higdon Ave. Bank of New York to W. & W. Wang for $574,000 on 10/31/08; previous sale 6/06, $905,000
126 Iris Drive Castle Principles to J. Hummel for $1,017,500 on 10/31/08
132 Iris Drive Castle Principles to C. Segantini for $1,004,000 on 10/30/08
134 Iris Drive Castle Principles to B. Schneider for $990,000 on 10/31/08
341 Mercy St. Rose Trust to N. & J. Fey for $850,000 on 10/29/08
2040 W. Middlefield Road #9 L. Jackson to S. & I. Saksena for $625,000 on 10/31/08
221 Orchard Glen Court K. Gelman to B. Bargenguast for $870,000 on 10/31/08; previous sale 5/01, $660,000
505 Sleeper Ave. Mcdonald Trust to D. & K. McDonald for $1,300,000 on 11/3/08; previous sale 9/98, $1,250,000
PALO ALTO
2452 W. Bayshore Road #7 Jishung Trust to B. & S. Aiyar for $540,000 on 10/31/08; previous sale 10/04, $380,000
555 Byron St. #103 Ritchey Trust to Hexter Trust for $1,500,000 on 10/31/08
4248 Rickeys Way #C Western Pacific Housing to L. Ryzhik for $276,000 on 11/3/08
REDWOOD CITY
816 6th Ave. R. Campos to Perez Trust for $450,000 on 10/20/08; previous sale 6/06, $700,000
2422 Harding Ave. G. Dillon to G. Chan for $750,000 on 10/23/08
627 Hudson St. Long Beach Mortgage to H. Lin for $500,000 on 10/17/08; previous sale 7/05, $785,000
500 Hurlingame Ave. Lasalle Bank to M. Garcia for $280,000 on 10/20/08; previous sale 5/95, $140,000
1007 Iris St. Bank of America to R. Micheletti for $530,000 on 10/22/08; previous sale 10/04, $650,500
1629 Kentfield Ave. S. Tanaka to M. Erickson for $490,000 on 10/22/08
10 Meadow Lane Fremont Home Loan Trust to R. Lavalley for $456,000 on 10/21/08; previous sale 2/06, $710,000
3290 Page St. Trapp Trust to M. Tan-Banico for $400,000 on 10/22/08
19 Woodleaf Ave. M. Leibel to Becker Trust for $2,210,000 on 10/22/08; previous sale 6/04, $2,249,000
Wednesday, November 12, 2008
Tuesday, November 11, 2008
U.S. Foreclosures Index: October Foreclosures Drop Dramatically to Near 2008 Lows
ForeclosureS.com Index Offers First Post-Election Look at October Trends
SACRAMENTO, Calif., Nov 10, 2008 (BUSINESS WIRE) -- Foreclosures fell for the second month in a row in October to nationwide lows not seen since last February, according to the latest U.S. Foreclosure Index from ForeclosureS.com.
In this first post-election look at foreclosure numbers, October pre-foreclosure filings -- which can include notice of default and/or foreclosure auction -- were off more than 10% from August's highs, and nearly 7% from September's numbers. October numbers were down in about half of the states in the U.S. Foreclosure Index.
Properties repossessed by lenders following foreclosure or REOs (bank-owned real estate) were down significantly in October, too -- off 22% from September's high to just 84,286 properties, the lowest monthly total since May, the U.S. Foreclosure Index shows.
Property information specialists ForeclosureS.com bases its U.S. Foreclosure Index and comprehensive analysis of pre-foreclosure and foreclosure proceedings nationwide on the number of formal notices filed against a property during the foreclosure process. That can include notice of default, notice of foreclosure auction, and/or notice of REO -- lender-owned real estate that occurs after a foreclosed property reverts back to the lender. (All pre-foreclosure filings do not end up in foreclosure).
"These latest foreclosure numbers are great news because pre-foreclosures are early signals of what's to come," says Alexis McGee, real estate expert, educator, president of ForeclosureS.com. "The nation's foreclosure free-fall may be subsiding. We still have a long way to go, and some of the recent numbers are skewed by lender programs for homeowners that delay rather than eliminate foreclosures. But gains as measured by drops in foreclosure numbers in the past two months reflect that efforts by lenders, banks, organizations, and government entities to work with strapped homeowners to avoid foreclosure are beginning to pay off."
McGee is author of The ForeclosureS.com Guide to Advanced Investing Techniques You Won't Learn Anywhere Else (Wiley), and The ForeclosureS.com Guide to Making Huge Profits Investing in Pre-foreclosures without Selling Your Soul (Wiley).
"Keep in mind, too, that though foreclosure is a coast-to-coast issue that affects tens of thousands of Americans every month, our analysis reveals that a huge chunk of the REO and pre-foreclosure filings are concentrated in certain states, and key metropolitan, and coastal areas," adds McGee. "Some are either hard-hit by recession and layoffs as in the case of the Detroit area, or are where property speculation, prices, and affordability spiraled seemingly out of control before the sub-prime debacle. The latter includes areas in California, Florida, and Nevada."
Almost one-third of the 1.76 million pre-foreclosure filings so far this year are in 10 counties out of the more than 1,300 nationwide included in the ForeclosureS.com database. Those counties include: Maricopa County, Arizona; Los Angeles, Riverside, and San Bernardino counties in California; Miami-Dade, Broward, Palm Beach, and Lee counties in Florida; Clark County, Nevada, and Cook County, Illinois.
More than 255,000 of the 828,670 completed foreclosures this year to date are in 10 counties, too, U.S. Foreclosure Index analysis shows. Those counties include Maricopa County, Arizona; Los Angeles, Riverside, San Bernardino, Sacramento, and San Diego counties in California; Clark County, Nevada (including Las Vegas); Wayne County, Michigan (including Detroit); Harris County, Texas (including Houston), and Cook County, Illinois (Chicago).
Looking at nationwide foreclosures another way, based on the number of filings out of every 1,000 households, the clearest indication of trends, ForeclosureS.com reports:
-- 11.5 out of every 1,000 households nationwide have been repossessed by lenders following foreclosure YTD based on REO filings. That's up 71.64% from the same time a year ago.
-- 24.6 of every 1,000 have had to deal with pre-foreclosure filings YTD, up 71.53% from 2007 YTD.
"Foreclosures as part of the nation's broader economic crisis will likely be the first major issue President-elect Obama addresses when he takes office in January," adds McGee. "He has promised a 90-day freeze on foreclosures. But each state has its own regulations relating to foreclosures, so whether the promise will become reality is another question. Meanwhile, for the next close to three months, foreclosures and economic stimulus packages remain the purview and the problem of the Bush administration."
Government intervention in foreclosures could end up a moot issue, however, since some key banks and lenders already have recognized that keeping homeowners out of foreclosure is good business. Banks like the now FDIC-operated IndyMac, Bank of America (which acquired Countrywide), and most recently JPMorgan Chase already have pledged to cut monthly payments for many strapped borrowers by lowering interest rates and temporarily reducing home loan balances, adds McGee.
"Our foreclosure numbers, plus the National Association of Realtors recent Existing Home Sales and Pending Home Sales reports for the last two months show that housing markets may be stabilizing. You can't call a bottom with two months of data, but we are absolutely headed in the right direction," McGee said.
She continued, "Prices are low and current government backed mortgages are making homes more affordable than ever. Plus lenders are finally getting realistic and unloading REO's at cut-rate prices. The deals are happening. Whether you're a would-be homeowner or property investor now is a great time to buy discounted properties from motivated sellers."
With its data base of more than 5.5 million property listings, ForeclosureS.com has been the professional's source for accurate foreclosure property information for more than 20 years. For more information on ForeclosureS.com and its products, please visit www.foreclosures.com.
SOURCE: ForeclosureS.com
SACRAMENTO, Calif., Nov 10, 2008 (BUSINESS WIRE) -- Foreclosures fell for the second month in a row in October to nationwide lows not seen since last February, according to the latest U.S. Foreclosure Index from ForeclosureS.com.
In this first post-election look at foreclosure numbers, October pre-foreclosure filings -- which can include notice of default and/or foreclosure auction -- were off more than 10% from August's highs, and nearly 7% from September's numbers. October numbers were down in about half of the states in the U.S. Foreclosure Index.
Properties repossessed by lenders following foreclosure or REOs (bank-owned real estate) were down significantly in October, too -- off 22% from September's high to just 84,286 properties, the lowest monthly total since May, the U.S. Foreclosure Index shows.
Property information specialists ForeclosureS.com bases its U.S. Foreclosure Index and comprehensive analysis of pre-foreclosure and foreclosure proceedings nationwide on the number of formal notices filed against a property during the foreclosure process. That can include notice of default, notice of foreclosure auction, and/or notice of REO -- lender-owned real estate that occurs after a foreclosed property reverts back to the lender. (All pre-foreclosure filings do not end up in foreclosure).
"These latest foreclosure numbers are great news because pre-foreclosures are early signals of what's to come," says Alexis McGee, real estate expert, educator, president of ForeclosureS.com. "The nation's foreclosure free-fall may be subsiding. We still have a long way to go, and some of the recent numbers are skewed by lender programs for homeowners that delay rather than eliminate foreclosures. But gains as measured by drops in foreclosure numbers in the past two months reflect that efforts by lenders, banks, organizations, and government entities to work with strapped homeowners to avoid foreclosure are beginning to pay off."
McGee is author of The ForeclosureS.com Guide to Advanced Investing Techniques You Won't Learn Anywhere Else (Wiley), and The ForeclosureS.com Guide to Making Huge Profits Investing in Pre-foreclosures without Selling Your Soul (Wiley).
"Keep in mind, too, that though foreclosure is a coast-to-coast issue that affects tens of thousands of Americans every month, our analysis reveals that a huge chunk of the REO and pre-foreclosure filings are concentrated in certain states, and key metropolitan, and coastal areas," adds McGee. "Some are either hard-hit by recession and layoffs as in the case of the Detroit area, or are where property speculation, prices, and affordability spiraled seemingly out of control before the sub-prime debacle. The latter includes areas in California, Florida, and Nevada."
Almost one-third of the 1.76 million pre-foreclosure filings so far this year are in 10 counties out of the more than 1,300 nationwide included in the ForeclosureS.com database. Those counties include: Maricopa County, Arizona; Los Angeles, Riverside, and San Bernardino counties in California; Miami-Dade, Broward, Palm Beach, and Lee counties in Florida; Clark County, Nevada, and Cook County, Illinois.
More than 255,000 of the 828,670 completed foreclosures this year to date are in 10 counties, too, U.S. Foreclosure Index analysis shows. Those counties include Maricopa County, Arizona; Los Angeles, Riverside, San Bernardino, Sacramento, and San Diego counties in California; Clark County, Nevada (including Las Vegas); Wayne County, Michigan (including Detroit); Harris County, Texas (including Houston), and Cook County, Illinois (Chicago).
Looking at nationwide foreclosures another way, based on the number of filings out of every 1,000 households, the clearest indication of trends, ForeclosureS.com reports:
-- 11.5 out of every 1,000 households nationwide have been repossessed by lenders following foreclosure YTD based on REO filings. That's up 71.64% from the same time a year ago.
-- 24.6 of every 1,000 have had to deal with pre-foreclosure filings YTD, up 71.53% from 2007 YTD.
"Foreclosures as part of the nation's broader economic crisis will likely be the first major issue President-elect Obama addresses when he takes office in January," adds McGee. "He has promised a 90-day freeze on foreclosures. But each state has its own regulations relating to foreclosures, so whether the promise will become reality is another question. Meanwhile, for the next close to three months, foreclosures and economic stimulus packages remain the purview and the problem of the Bush administration."
Government intervention in foreclosures could end up a moot issue, however, since some key banks and lenders already have recognized that keeping homeowners out of foreclosure is good business. Banks like the now FDIC-operated IndyMac, Bank of America (which acquired Countrywide), and most recently JPMorgan Chase already have pledged to cut monthly payments for many strapped borrowers by lowering interest rates and temporarily reducing home loan balances, adds McGee.
"Our foreclosure numbers, plus the National Association of Realtors recent Existing Home Sales and Pending Home Sales reports for the last two months show that housing markets may be stabilizing. You can't call a bottom with two months of data, but we are absolutely headed in the right direction," McGee said.
She continued, "Prices are low and current government backed mortgages are making homes more affordable than ever. Plus lenders are finally getting realistic and unloading REO's at cut-rate prices. The deals are happening. Whether you're a would-be homeowner or property investor now is a great time to buy discounted properties from motivated sellers."
With its data base of more than 5.5 million property listings, ForeclosureS.com has been the professional's source for accurate foreclosure property information for more than 20 years. For more information on ForeclosureS.com and its products, please visit www.foreclosures.com.
SOURCE: ForeclosureS.com
Monday, November 10, 2008
Thursday, November 6, 2008
Plan calls for 90 day stay of foreclosure
In an effort to slow the pace of home foreclosures and stabilize California's shaky economy, Gov. Arnold Schwarzenegger yesterday unveiled a proposal to help borrowers modify troubled mortgages while making lenders more accountable.
The centerpiece of the plan is a 90-day stay of foreclosure for owner-occupied homes that have a first mortgage in default. Schwarzenegger today is expected to call for a special session of the Legislature to consider the strategy, along with other economic issues.
Under the proposal, lenders could exempt themselves from the 90-day stay by providing evidence that they have an aggressive loan modification program in place. An “aggressive” program is broadly defined as one that will keep troubled borrowers in their homes in cases where doing so brings lenders a greater return than simply foreclosing.
Faced with the 90-day freeze on foreclosures, lenders will be more inclined to work with borrowers, California Department of Corporations Director Preston DuFauchard said during an afternoon teleconference with reporters.
The proposed freeze “is designed to be a stick to get people to have a more aggressive modification program,” DuFauchard said. “ . . . The time value of money creates a real strong incentive to take this modification approach.”
While many lenders already are doing voluntary loan modifications, they aren't being nearly aggressive enough to resolve the foreclosure problem, said David Crane, the governor's special adviser for jobs and economic growth.
Paul Leonard, director of the California office of the Center for Responsible Lending, noted that an increase in loan modification efforts nationwide began over the summer, when the Federal Deposit Insurance Corp. took over failed lender IndyMac Bancorp. The governor's plan follows that example.
“The goal is to encourage loan servicers to adopt a more streamlined, systematic approach to loan modifications,” Leonard said. “The governor is trying to use leverage to move servicers in a positive direction.”
Mark Goldman, a real estate finance instructor at San Diego State University, said the 90-day stay may give delinquent borrowers more time to remain in their homes, but ultimately it will place greater financial pressures on lenders.
“The lender is going to just have to wait that much longer to get the collateral, and that may have some negative impacts on the pricing of loans,” Goldman said.
A new state law that requires lenders to work harder to help distressed borrowers led to a steep drop in September default notices in San Diego County, and foreclosures also declined. In many instances, Senate Bill 1137 calls for lenders to try to contact delinquent borrowers, then wait 30 days before filing a default notice.
A total of 1,206 county homes received notices of default, which mark the beginning of the foreclosure process. That marked a 58 percent decline from August and a 35 percent drop from September 2007. Around the state, mortgage servicers recorded 94,240 notices of default on homes during the third quarter. That was down 23 percent from a record of 121,673 in the second quarter and up 30 percent from third-quarter 2007, according to the MDA DataQuick research firm.
In his proposal to help distressed borrowers, Schwarzenegger suggested that loan modifications be based on a 38 percent monthly housing debt payment-to-income ratio, so that revamped loans are more sustainable. To achieve that, he suggested that lenders temporarily reduce interest rates, increase loan repayment periods, or defer part of the unpaid principal balance to the end of the loan term.
He called for the Department of Real Estate and Department of Corporations to enforce federal laws and regulations, such as the Truth in Lending Act, and discipline real estate licensees who violate such laws and regulations.
To avoid future mortgage market meltdowns, lending practices should be reformed to protect borrowers by expanding fiduciary responsibilities for mortgage brokers, Schwarzenegger said. He also called for increasing and standardizing licensing requirements for loan originators. Counseling may be desirable for borrowers entering into risky mortgages, to make sure they understand terms and obligations, he said.
Turning to underwriting, the governor urged the federal government to require loan originators to retain a portion of their loan risks to encourage better practices. Kevin Stein, associate director of the California Reinvestment Coalition, said the success of the plan will depend on the details of implementation.
“It is good that the governor is engaged, good that he has called for a special session,” Stein said. “We don't want it to be another good-sounding program that doesn't meaningfully help people avoid foreclosure.”
The centerpiece of the plan is a 90-day stay of foreclosure for owner-occupied homes that have a first mortgage in default. Schwarzenegger today is expected to call for a special session of the Legislature to consider the strategy, along with other economic issues.
Under the proposal, lenders could exempt themselves from the 90-day stay by providing evidence that they have an aggressive loan modification program in place. An “aggressive” program is broadly defined as one that will keep troubled borrowers in their homes in cases where doing so brings lenders a greater return than simply foreclosing.
Faced with the 90-day freeze on foreclosures, lenders will be more inclined to work with borrowers, California Department of Corporations Director Preston DuFauchard said during an afternoon teleconference with reporters.
The proposed freeze “is designed to be a stick to get people to have a more aggressive modification program,” DuFauchard said. “ . . . The time value of money creates a real strong incentive to take this modification approach.”
While many lenders already are doing voluntary loan modifications, they aren't being nearly aggressive enough to resolve the foreclosure problem, said David Crane, the governor's special adviser for jobs and economic growth.
Paul Leonard, director of the California office of the Center for Responsible Lending, noted that an increase in loan modification efforts nationwide began over the summer, when the Federal Deposit Insurance Corp. took over failed lender IndyMac Bancorp. The governor's plan follows that example.
“The goal is to encourage loan servicers to adopt a more streamlined, systematic approach to loan modifications,” Leonard said. “The governor is trying to use leverage to move servicers in a positive direction.”
Mark Goldman, a real estate finance instructor at San Diego State University, said the 90-day stay may give delinquent borrowers more time to remain in their homes, but ultimately it will place greater financial pressures on lenders.
“The lender is going to just have to wait that much longer to get the collateral, and that may have some negative impacts on the pricing of loans,” Goldman said.
A new state law that requires lenders to work harder to help distressed borrowers led to a steep drop in September default notices in San Diego County, and foreclosures also declined. In many instances, Senate Bill 1137 calls for lenders to try to contact delinquent borrowers, then wait 30 days before filing a default notice.
A total of 1,206 county homes received notices of default, which mark the beginning of the foreclosure process. That marked a 58 percent decline from August and a 35 percent drop from September 2007. Around the state, mortgage servicers recorded 94,240 notices of default on homes during the third quarter. That was down 23 percent from a record of 121,673 in the second quarter and up 30 percent from third-quarter 2007, according to the MDA DataQuick research firm.
In his proposal to help distressed borrowers, Schwarzenegger suggested that loan modifications be based on a 38 percent monthly housing debt payment-to-income ratio, so that revamped loans are more sustainable. To achieve that, he suggested that lenders temporarily reduce interest rates, increase loan repayment periods, or defer part of the unpaid principal balance to the end of the loan term.
He called for the Department of Real Estate and Department of Corporations to enforce federal laws and regulations, such as the Truth in Lending Act, and discipline real estate licensees who violate such laws and regulations.
To avoid future mortgage market meltdowns, lending practices should be reformed to protect borrowers by expanding fiduciary responsibilities for mortgage brokers, Schwarzenegger said. He also called for increasing and standardizing licensing requirements for loan originators. Counseling may be desirable for borrowers entering into risky mortgages, to make sure they understand terms and obligations, he said.
Turning to underwriting, the governor urged the federal government to require loan originators to retain a portion of their loan risks to encourage better practices. Kevin Stein, associate director of the California Reinvestment Coalition, said the success of the plan will depend on the details of implementation.
“It is good that the governor is engaged, good that he has called for a special session,” Stein said. “We don't want it to be another good-sounding program that doesn't meaningfully help people avoid foreclosure.”
Wednesday, November 5, 2008
Monday, November 3, 2008
Discover the wrong way and right way to get a loan for a Home
In today's economic climate, you can't afford to not have a pro on your side, to help you with the loan process as well as the home buying. Discover what you need to do now to buy a home.
Thursday, October 30, 2008
John answer the Question is purchasing a home makes sense now?
With the roller-coaster ride on Wall Street continuing, many have asked me whether this is the right time to buy a house. Maybe it’s a better idea to stay put and wait until the economy recovers, and then a logical course of action may seem clearer.
I beg to differ.
We have seen economic ups and downs before. Postponing the decision to own real estate was the wrong path then, and I believe it to be the wrong path now.
For starters, there are at least five compelling reasons to buy and own real estate today. Let’s take a look:
1. You have to have a place to live. Let’s face it. When you write that rent check every month, you are throwing your money down the drain. The only return you get is the receipt your landlord politely hands you.
Most real estate markets are truly beat up right now, meaning that any serious seller understands what it will take to make a sale. The house has to be in good condition, priced right and made attractive in every way. Smart buyers can get a bargain in this market.
In addition, because interest rates are at or near historical lows, you can buy a house today for only slightly more than it costs to rent. The interest expense of owning a home is far and away the largest cost associated with ownership. And you’ve got to live somewhere.
2. Your government wants you to own a house, and it will give you tax breaks for doing so. And those tax breaks are substantial. The interest you pay on your home loan is probably totally tax deductible, and so are the property taxes you pay. These two expenditures make up the bulk of your monthly payment in the early years of your mortgage.
And the benefits get better from there. When you get ready to sell, you can likely pocket 100 percent of the profit and pay no tax whatsoever, amplifying the dollar value of any appreciation you might experience.
And both these benefits can be used again and again, within certain limits.
3. Your investment in real estate is likely to be worth more in the future. I know, I know. You’ve heard that
real estate has lost most of its value and that it’s a bad investment because it has gone down so far in value. And you heard just last week on cable TV that the housing market might never recover.
Well, take a deep breath and listen to this: The last time I checked, there were 305 million of us living in this great nation, and most of us prefer to live indoors. The reality is that certain regional markets, particularly California and Florida, have experienced extreme price volatility, allowing some pundits to focus on the downside of the run-up in prices. In contrast, homes in Georgia have, with some exceptions, maintained their value.
Appreciation has, in the past, rewarded homeowners who owned for any substantial length of time. While there is no guarantee that your home’s value will increase in the future, history tells us that is the most likely outcome.
4. You will be paying back your loan, little by little, month by month. On a typical home loan, the portion of your monthly payment allocated to debt reduction is small. But with each passing month, your loan’s principal balance gets lower and lower.
This buildup in equity occurs regardless of any appreciation, and it will eventually result in a home that you own free and clear of any debt. Whether you select a traditional 30-year loan or a lower-interest-rate 15-year program, the eventual goal is the same. And it happens automatically.
5. You can use a very small cash down payment to buy a large investment. While the days of the 103 percent loan are mostly behind us, you can still find 90 percent and even 95 percent financing available for well-qualified buyers.
And depending on the lender’s guidelines, you may be able to use a gift from a family member as some or all of your required cash at closing.
This ability to leverage your purchase and to obtain long-term fixed-rate financing has made homeownership affordable to more of us than ever before.
I understand that homeownership isn’t right for everyone. If you plan to relocate in the next three years, or if you aren’t ready for the financial responsibilities of ownership, then it likely makes sense to wait. Furthermore, there are some people who highly value their freedom to make a move on a moment’s notice. For these and some others, owning might be a burden and a mistake.
But if you are planning on settling down for at least a few years and you understand what you are getting into, owning a home might very well be the best financial decision you make this year.
John Adams is a broker and investor. For more real estate information or to make a comment, visit Money 99. Find previous articles by John Adams and more home buying advice on the
I beg to differ.
We have seen economic ups and downs before. Postponing the decision to own real estate was the wrong path then, and I believe it to be the wrong path now.
For starters, there are at least five compelling reasons to buy and own real estate today. Let’s take a look:
1. You have to have a place to live. Let’s face it. When you write that rent check every month, you are throwing your money down the drain. The only return you get is the receipt your landlord politely hands you.
Most real estate markets are truly beat up right now, meaning that any serious seller understands what it will take to make a sale. The house has to be in good condition, priced right and made attractive in every way. Smart buyers can get a bargain in this market.
In addition, because interest rates are at or near historical lows, you can buy a house today for only slightly more than it costs to rent. The interest expense of owning a home is far and away the largest cost associated with ownership. And you’ve got to live somewhere.
2. Your government wants you to own a house, and it will give you tax breaks for doing so. And those tax breaks are substantial. The interest you pay on your home loan is probably totally tax deductible, and so are the property taxes you pay. These two expenditures make up the bulk of your monthly payment in the early years of your mortgage.
And the benefits get better from there. When you get ready to sell, you can likely pocket 100 percent of the profit and pay no tax whatsoever, amplifying the dollar value of any appreciation you might experience.
And both these benefits can be used again and again, within certain limits.
3. Your investment in real estate is likely to be worth more in the future. I know, I know. You’ve heard that
real estate has lost most of its value and that it’s a bad investment because it has gone down so far in value. And you heard just last week on cable TV that the housing market might never recover.
Well, take a deep breath and listen to this: The last time I checked, there were 305 million of us living in this great nation, and most of us prefer to live indoors. The reality is that certain regional markets, particularly California and Florida, have experienced extreme price volatility, allowing some pundits to focus on the downside of the run-up in prices. In contrast, homes in Georgia have, with some exceptions, maintained their value.
Appreciation has, in the past, rewarded homeowners who owned for any substantial length of time. While there is no guarantee that your home’s value will increase in the future, history tells us that is the most likely outcome.
4. You will be paying back your loan, little by little, month by month. On a typical home loan, the portion of your monthly payment allocated to debt reduction is small. But with each passing month, your loan’s principal balance gets lower and lower.
This buildup in equity occurs regardless of any appreciation, and it will eventually result in a home that you own free and clear of any debt. Whether you select a traditional 30-year loan or a lower-interest-rate 15-year program, the eventual goal is the same. And it happens automatically.
5. You can use a very small cash down payment to buy a large investment. While the days of the 103 percent loan are mostly behind us, you can still find 90 percent and even 95 percent financing available for well-qualified buyers.
And depending on the lender’s guidelines, you may be able to use a gift from a family member as some or all of your required cash at closing.
This ability to leverage your purchase and to obtain long-term fixed-rate financing has made homeownership affordable to more of us than ever before.
I understand that homeownership isn’t right for everyone. If you plan to relocate in the next three years, or if you aren’t ready for the financial responsibilities of ownership, then it likely makes sense to wait. Furthermore, there are some people who highly value their freedom to make a move on a moment’s notice. For these and some others, owning might be a burden and a mistake.
But if you are planning on settling down for at least a few years and you understand what you are getting into, owning a home might very well be the best financial decision you make this year.
John Adams is a broker and investor. For more real estate information or to make a comment, visit Money 99. Find previous articles by John Adams and more home buying advice on the
Tuesday, October 28, 2008
Homes & Land to Offer Featured Listings on Yahoo! Real Estate
TALLAHASSEE, Fla., Oct 28, 2008 (BUSINESS WIRE) -- Homes & Land, the affluent home buyer's marketplace, announced today that it will begin to offer its Realtor(R) advertisers featured listings on Yahoo! Real Estate, the number one real estate site on the web. With this new ad package, Homes & Land Realtors are able to promote specific homes as featured listings on Yahoo! Real Estate at the top of its local search results pages, increasing exposure for home listings and generating significantly higher click-through rates and views than non-featured listings.
According to comScore Media Metrix, the number of unique visitors to real estate sites was up to 41.2 million in the past year, and Yahoo! Real Estate has seen its unique visitors increase 22 percent in year over year analysis. Additionally, Yahoo! Real Estate visitors are twice as likely as Internet users to purchase a new residence in the next six months and almost twice as likely to have sold or changed their primary residence in the last six months. (comScore Media Metrix July 2008 report)
"Home sellers engage Realtors(R) who are savvy marketers and expect their homes to be advertised in well-branded areas," says Rob Wicker, Homes & Land's Chief Marketing Officer. "Featured listings are a vital tool in attracting active buyers as well as an important way for our advertisers to demonstrate to their sellers that their home sale is a top priority."
The agreement allows Homes & Land Realtor(R) advertisers to purchase featured listings on Yahoo! Real Estate, one of the largest and fastest-growing real estate Web sites, according to comScore Media Metrix. Realtor(R) advertisers of Homes & Land publications can purchase featured listings at a special introductory price.
Yahoo! Real Estate's Web site http://realestate.yahoo.com showcases featured listings based on qualifiers such as zip codes, cities, beds, baths and price ranges. Yahoo! Real Estate averages over five million unique visitors monthly, according to comScore Media Metrix.
"We're pleased to extend our partnership with Homes & Land," said Steve Schultz, senior director of Yahoo! Real Estate. "This relationship brings together Yahoo! Real Estate's substantial audience of home buyers with Homes & Land's long history of serving the advertising needs of local real estate agents."
Homes & Land advertisers may upgrade any of their online listings easily by choosing the Featured Listing option associated with their property on their account at HomesAndLand.com.
"There continues to be growth in online real estate searches and listings," adds Wicker. "Offering our advertisers more ways to reach online active buyers in the marketplace is essential in assisting with their business goals."
Homes & Land is a category leader in real estate media. For more than 35 years, Realtors(R) have counted on the brand to provide the most targeted distribution channel to reach active home buyers. In addition to its flagship publication, the company also publishes Home Guide magazine, Estates & Homes magazine and Rental Guide magazine. Homes & Land is a leading resource of real estate information through its online portal HomesAndLand.com http://www.homesandland.com. Log on 24-hours a day to gain insight and perspective into the home sales market.
SOURCE: Homes & Land
Monday, October 27, 2008
As A New Home Buyer
Is it Best to Buy a New Home, or a Older Home In California? “The indispensable first step to getting the things you want out of life is this: Decide what you want” Ben SteinWednesday, October 22, 2008
Is it True Housing healthier near thriving metros
As housing prices near a bottom -- perhaps by late 2009 -- homes closer to cities with thriving economies and mass transit will outperform outer-ring suburbs and "exurban areas," where high gas prices are making long car commutes prohibitively expensive and rising energy costs mean higher utility bills.
That's the conclusion of a report released today by the Urban Land Institute and PricewaterhouseCoopers LLP that's based on interviews with more than 600 real estate experts, including investors, developers, lenders and real estate brokers. The Urban Land Institute is a nonprofit that bills itself as dedicated to promoting the "responsible use of land and in creating and sustaining thriving communities worldwide."
The report, Emerging Trends in Real Estate 2009, projects that the worst of the national housing downturn may be over, with a price bottom probably forming by late 2009. But there's still more pain to come, the report predicted, in part because mortgage lenders aren't backing off stricter standards and interest rates are probably headed up.
The report is focused on commercial real estate such as commercial, office, industrial and apartment properties. But it includes an overview of housing markets and how they may be affected by macroeconomic trends and changing regional conditions.
Home builders may have to continue selling tracts of land for cents on the dollar or face foreclosure on their holdings, the report predicts, adding to the already high rate of mortgage defaults and foreclosures.
As home prices continue to fall, "McMansion subdivisions in the sticks (will) take a double whammy," the report predicts. Rising heating and cooling bills could work against sellers already facing resistance to long commutes. "People realize they don't need 3,000 square feet and four cars anymore," one source interviewed for the report said.
Changing preferences could increase demand for condos in urban areas, many of which now have a glut of such properties. One respondent said their company had 30,000 unsold units in south Florida -- just as they did in 1975 and 1988.
At some point, those high-end Miami condos overlooking the Atlantic will be good buys," the report predicts, noting that ocean views "always find a market."
So-called "24 hour cities" like New York, Boston, Chicago, San Francisco, and Washington, D.C., should also benefit from mass transit systems that can free residents from car dependence, the report said.
"Fast-growing Sunbelt cities had pooh-poohed mass transit in their rapid expansions, enabled by interstate highway building during the 1960s and 1970s," the report said. "Virtually no one contemplated the consequences of car dependence until populations began to overwhelm road capacities."
The Sunbelt is also plagued by water issues, as spotlighted by droughts that tested Atlanta's reservoir system, which the report called "insufficient."
Water issues pose a challenge to further growth in areas dependant on the Colorado River and throughout the Southwest, the report said. Continued growth in areas like Las Vegas, Phoenix and Southern California will require increased conservation and new sources of water.
The suburbs will continue to retain an edge among many families looking for better school districts and child-friendly environments, the report said. But the mortgage crisis, high car-related costs and increasing property taxes mean moving to the suburbs requires greater sacrifices, the report noted. Federal grants that enabled suburban expansion by subsidizing the extension of roads and sewers are also in shorter supply.
Gains in the attractiveness of 24-hour cities could be "squandered" if cutbacks in police, fire and sanitation result in less safe and appealing environments, the report said. Falling property values and the economic slowdown are expected to cut into tax revenues, forcing cities to reduce services.
"Nothing would undermine 24-hour dynamics more quickly than rising crime rates," the report warned.
Commercial outlook
Seattle, San Francisco, Washington, D.C., New York and Los Angeles are expected to be the top five markets for investment in commercial property in 2009, the report said.
Wall Street layoffs and office vacancies will help Seattle and San Francisco to reclaim top rankings for commercial investment from New York, the report predicted, and California's large suburban satellite markets, Riverside and Orange County, are expected to "tank in mortgage and housing misery."
Seattle is braced for downtown office vacancies to rise above the current 10 percent, and demand for housing and housing prices are expected to slip but stay above national averages.
San Francisco offers "a high quality of life with a well-diversified economy," the report said, and the city ranks first for development and home building. Even though housing prices are expected to decline, foreclosures should remain in check, the report notes.
The thriving energy industry is expected to boost commercial investment prospects for "long-forlorn" Texas markets, but Midwest factory towns are expected to lose even more ground, the report said.
Houston makes the report's list of top 10 commercial markets since 1995, as office vacancies are expected to drop to 10 percent.
"Cheap land results in cheap housing, and prices have not gone up dramatically," the report noted of Houston's housing markets.
That's the conclusion of a report released today by the Urban Land Institute and PricewaterhouseCoopers LLP that's based on interviews with more than 600 real estate experts, including investors, developers, lenders and real estate brokers. The Urban Land Institute is a nonprofit that bills itself as dedicated to promoting the "responsible use of land and in creating and sustaining thriving communities worldwide."
The report, Emerging Trends in Real Estate 2009, projects that the worst of the national housing downturn may be over, with a price bottom probably forming by late 2009. But there's still more pain to come, the report predicted, in part because mortgage lenders aren't backing off stricter standards and interest rates are probably headed up.
The report is focused on commercial real estate such as commercial, office, industrial and apartment properties. But it includes an overview of housing markets and how they may be affected by macroeconomic trends and changing regional conditions.
Home builders may have to continue selling tracts of land for cents on the dollar or face foreclosure on their holdings, the report predicts, adding to the already high rate of mortgage defaults and foreclosures.
As home prices continue to fall, "McMansion subdivisions in the sticks (will) take a double whammy," the report predicts. Rising heating and cooling bills could work against sellers already facing resistance to long commutes. "People realize they don't need 3,000 square feet and four cars anymore," one source interviewed for the report said.
Changing preferences could increase demand for condos in urban areas, many of which now have a glut of such properties. One respondent said their company had 30,000 unsold units in south Florida -- just as they did in 1975 and 1988.
At some point, those high-end Miami condos overlooking the Atlantic will be good buys," the report predicts, noting that ocean views "always find a market."
So-called "24 hour cities" like New York, Boston, Chicago, San Francisco, and Washington, D.C., should also benefit from mass transit systems that can free residents from car dependence, the report said.
"Fast-growing Sunbelt cities had pooh-poohed mass transit in their rapid expansions, enabled by interstate highway building during the 1960s and 1970s," the report said. "Virtually no one contemplated the consequences of car dependence until populations began to overwhelm road capacities."
The Sunbelt is also plagued by water issues, as spotlighted by droughts that tested Atlanta's reservoir system, which the report called "insufficient."
Water issues pose a challenge to further growth in areas dependant on the Colorado River and throughout the Southwest, the report said. Continued growth in areas like Las Vegas, Phoenix and Southern California will require increased conservation and new sources of water.
The suburbs will continue to retain an edge among many families looking for better school districts and child-friendly environments, the report said. But the mortgage crisis, high car-related costs and increasing property taxes mean moving to the suburbs requires greater sacrifices, the report noted. Federal grants that enabled suburban expansion by subsidizing the extension of roads and sewers are also in shorter supply.
Gains in the attractiveness of 24-hour cities could be "squandered" if cutbacks in police, fire and sanitation result in less safe and appealing environments, the report said. Falling property values and the economic slowdown are expected to cut into tax revenues, forcing cities to reduce services.
"Nothing would undermine 24-hour dynamics more quickly than rising crime rates," the report warned.
Commercial outlook
Seattle, San Francisco, Washington, D.C., New York and Los Angeles are expected to be the top five markets for investment in commercial property in 2009, the report said.
Wall Street layoffs and office vacancies will help Seattle and San Francisco to reclaim top rankings for commercial investment from New York, the report predicted, and California's large suburban satellite markets, Riverside and Orange County, are expected to "tank in mortgage and housing misery."
Seattle is braced for downtown office vacancies to rise above the current 10 percent, and demand for housing and housing prices are expected to slip but stay above national averages.
San Francisco offers "a high quality of life with a well-diversified economy," the report said, and the city ranks first for development and home building. Even though housing prices are expected to decline, foreclosures should remain in check, the report notes.
The thriving energy industry is expected to boost commercial investment prospects for "long-forlorn" Texas markets, but Midwest factory towns are expected to lose even more ground, the report said.
Houston makes the report's list of top 10 commercial markets since 1995, as office vacancies are expected to drop to 10 percent.
"Cheap land results in cheap housing, and prices have not gone up dramatically," the report noted of Houston's housing markets.
Monday, October 20, 2008
WOW September home sales up 65% from last year in Southern California
Sinking home values continued to drive home sales in September as bargain hunters snared properties at 2003 prices.
The median Southern California home sales price was $308,500 in September, the lowest since May 2003 and down 33% from the September 2007 price of $462,000, according to real estate research firm MDA DataQuick.
The number of homes sold in Los Angeles, Orange, San Bernardino, Riverside, Ventura and San Diego counties shot up 65% compared with September 2007. Fifty percent of homes sold last month had been foreclosed.
Real estate experts said despite the increase in September sales, the real estate market is likely to suffer along with the rest of the economy.
September's figures reflect home purchase decisions that were made in mid- to late-summer, before the dramatic worsening of the nation's economic crisis in recent weeks, said MDA DataQuick president John Walsh.
"Over the next few weeks our sales data will begin to show how the meltdown in financial markets this fall has impacted housing demand," Walsh said in a statement.
Since September, the stock market has declined sharply and unemployment in California has remained close to 8%. Mortgage interest rates have also been rising, elevating the cost of home purchases.
A total of 20,497 homes closed escrow in the Southern California in September, up 5.8% from 19,366 in August. Sales were up most in Riverside County, which posted a 106% gain from the same month a year ago. Riverside and San Bernardino counties also recorded the steepest year-to-year price declines in the region, with the median sales price down 37% compared with a year ago.
In Riverside County, 69% of homes sold in September had been foreclosed, while foreclosed properties comprised 63% of San Bernardino County homes sold last month. Foreclosed homes made up 39% of Los Angeles County homes sold in September and 37% of Orange County homes sold last month.
The median Southern California home sales price was $308,500 in September, the lowest since May 2003 and down 33% from the September 2007 price of $462,000, according to real estate research firm MDA DataQuick.
The number of homes sold in Los Angeles, Orange, San Bernardino, Riverside, Ventura and San Diego counties shot up 65% compared with September 2007. Fifty percent of homes sold last month had been foreclosed.
Real estate experts said despite the increase in September sales, the real estate market is likely to suffer along with the rest of the economy.
September's figures reflect home purchase decisions that were made in mid- to late-summer, before the dramatic worsening of the nation's economic crisis in recent weeks, said MDA DataQuick president John Walsh.
"Over the next few weeks our sales data will begin to show how the meltdown in financial markets this fall has impacted housing demand," Walsh said in a statement.
Since September, the stock market has declined sharply and unemployment in California has remained close to 8%. Mortgage interest rates have also been rising, elevating the cost of home purchases.
A total of 20,497 homes closed escrow in the Southern California in September, up 5.8% from 19,366 in August. Sales were up most in Riverside County, which posted a 106% gain from the same month a year ago. Riverside and San Bernardino counties also recorded the steepest year-to-year price declines in the region, with the median sales price down 37% compared with a year ago.
In Riverside County, 69% of homes sold in September had been foreclosed, while foreclosed properties comprised 63% of San Bernardino County homes sold last month. Foreclosed homes made up 39% of Los Angeles County homes sold in September and 37% of Orange County homes sold last month.
Thursday, October 16, 2008
Tuesday, October 14, 2008
Foreclosures drop in Santa Clara County, state
Foreclosures decreased statewide by 12.4 percent and notices of default decreased 61.8 percent in September, which some attribute to the state law that went into effect last month
requiring lenders to work with borrowers who are struggling with mortgage payments.
requiring lenders to work with borrowers who are struggling with mortgage payments.
Monday, October 13, 2008
Affordability, is that true for Los Altos California, Is the Key
One of the interesting things about what is currently happening in the real estate and financial markets to me is all the pet theories people have about what drives prices. Folks will create spreadsheets and graphs that somehow prove, or at least don't disprove their ideas, and then other folks will agree or disagree based on their personal prejudices.
One theory floating around out there is the "Time Delay" theory. The Time Delay theory says that Los Altos and the surrounding area real estate pricing trends tend to lag trends in other parts of the country by 18 months to 2 years. It seems as though what the theory attempts to do is simply that some rule exists whereby you can predict what will happen in the Los Altos and the surrounding area market by looking at other real estate markets around the state or country. What this theory doesn't do, is indicate any understanding as to why markets may or may not behave differently. The proponents of this theory are quick to discount any strengths that the Los Altos and the surrounding area has that would mitigate the effects of a slowdown in the economy or real estate market.
In a nutshell, I would refer to the Time Delay theory as the idea that whatever happens elsewhere must inevitably happen to Los Altos and the surrounding area, and we are just late to the party. Obviously, the flaw is that you are looking at an effect and trying to imply causality.
I am not saying the theory is completely without any basis, however. It does seem to be true that our local economy may at times be up when other parts of the country are down, or vice versa. However, there are reasons why this happens, one of which is international trade. We are somewhat unique in that we have one of the strongest balances of international trade in the country. So, if the dollar is weak, and the economy overall is somewhat weak, our local economy can sometimes be buoyed by selling more of our goods overseas.
Not to say we are immune from economic factors that plague the rest of the country, but we do have the good fortune of not being tied as closely to the domestic economy. Conversely this can be a negative when the dollar is really strong, as our products then become more expensive domestically--this explains partially why Boeing orders go up when the dollar is weak, and Airbus orders pick up when the dollar is strong. At any rate, these factors lend validity to this idea that when the US at large is up, Washington might be down, or vice versa. But the important thing to note is that any time a trend like this exists, there will usually be reasons why it is, or is not so. It's an effect, not a cause.
The problem for us is when the global economy and the domestic economy go down the drain at the same time. Because then, there is no one to buy our stuff. And if no one buys our stuff, people tend to lose their jobs.
To return to this time delay theory, one of the theories that is floating around that I take the most exception to is this idea that Los Altos and the surrounding area real estate market is following in the footsteps of other inflated markets like San Diego. The theory seems to indicate that if San Diego has fallen 30%, then so too inevitably must Los Altos and the surrounding area --it is just taking us longer to get around to it. After all, the theory goes, San Diego what with its sun and fun, is a more desirable place to live than Los Altos and the surrounding area. How can our economy hold up when we don't even have a Sea World?
In my introspective moments, I've sometimes wondered this myself. There are days (rainy ones, usually) when I would rather be living in San Diego than here. But, there are a few factors that have always kept me here. Obviously, the first would be my family situation--being part of a Los Altos tends to limit the number of places that one might conceivably live. Another is the fact that I have actually visted San Diego, and did not like it. It is the proverbial place that is nice to visit, but not to live.
This is partly because of the sun and fun factor. Like most of California, San Diego has always had a boom and bust real estate market. Like it's bubble cohort Miami, part of what has always driven the market in San Diego is the 2nd home market. When times are good real estate in San Diego becomes very expensive because not only are companies that are located in San Diego expanding, you also get a lot of retired people (they call them Snow Birds) buying 2nd homes that they live in during the winter when the weather is bad in their home state. And because the 2nd home market tends to dry up whenever times are bad, that means that San Diego's real estate market is more volatile than our market here.
One theory floating around out there is the "Time Delay" theory. The Time Delay theory says that Los Altos and the surrounding area real estate pricing trends tend to lag trends in other parts of the country by 18 months to 2 years. It seems as though what the theory attempts to do is simply that some rule exists whereby you can predict what will happen in the Los Altos and the surrounding area market by looking at other real estate markets around the state or country. What this theory doesn't do, is indicate any understanding as to why markets may or may not behave differently. The proponents of this theory are quick to discount any strengths that the Los Altos and the surrounding area has that would mitigate the effects of a slowdown in the economy or real estate market.
In a nutshell, I would refer to the Time Delay theory as the idea that whatever happens elsewhere must inevitably happen to Los Altos and the surrounding area, and we are just late to the party. Obviously, the flaw is that you are looking at an effect and trying to imply causality.
I am not saying the theory is completely without any basis, however. It does seem to be true that our local economy may at times be up when other parts of the country are down, or vice versa. However, there are reasons why this happens, one of which is international trade. We are somewhat unique in that we have one of the strongest balances of international trade in the country. So, if the dollar is weak, and the economy overall is somewhat weak, our local economy can sometimes be buoyed by selling more of our goods overseas.
Not to say we are immune from economic factors that plague the rest of the country, but we do have the good fortune of not being tied as closely to the domestic economy. Conversely this can be a negative when the dollar is really strong, as our products then become more expensive domestically--this explains partially why Boeing orders go up when the dollar is weak, and Airbus orders pick up when the dollar is strong. At any rate, these factors lend validity to this idea that when the US at large is up, Washington might be down, or vice versa. But the important thing to note is that any time a trend like this exists, there will usually be reasons why it is, or is not so. It's an effect, not a cause.
The problem for us is when the global economy and the domestic economy go down the drain at the same time. Because then, there is no one to buy our stuff. And if no one buys our stuff, people tend to lose their jobs.
To return to this time delay theory, one of the theories that is floating around that I take the most exception to is this idea that Los Altos and the surrounding area real estate market is following in the footsteps of other inflated markets like San Diego. The theory seems to indicate that if San Diego has fallen 30%, then so too inevitably must Los Altos and the surrounding area --it is just taking us longer to get around to it. After all, the theory goes, San Diego what with its sun and fun, is a more desirable place to live than Los Altos and the surrounding area. How can our economy hold up when we don't even have a Sea World?
In my introspective moments, I've sometimes wondered this myself. There are days (rainy ones, usually) when I would rather be living in San Diego than here. But, there are a few factors that have always kept me here. Obviously, the first would be my family situation--being part of a Los Altos tends to limit the number of places that one might conceivably live. Another is the fact that I have actually visted San Diego, and did not like it. It is the proverbial place that is nice to visit, but not to live.
This is partly because of the sun and fun factor. Like most of California, San Diego has always had a boom and bust real estate market. Like it's bubble cohort Miami, part of what has always driven the market in San Diego is the 2nd home market. When times are good real estate in San Diego becomes very expensive because not only are companies that are located in San Diego expanding, you also get a lot of retired people (they call them Snow Birds) buying 2nd homes that they live in during the winter when the weather is bad in their home state. And because the 2nd home market tends to dry up whenever times are bad, that means that San Diego's real estate market is more volatile than our market here.
Thursday, October 9, 2008
Wednesday, October 8, 2008
From the Desk of the Associated Press
By ALAN ZIBEL – 12 hours ago
WASHINGTON (AP) — Pending home sales rose 7.4 percent from July to August, an unexpected piece of positive news for the battered U.S. housing market.
The National Association of Realtors said Wednesday its seasonally adjusted index of pending sales for existing homes rose to 93.4 from an upwardly revised July reading of 87. The reading was the highest since June 2007.
Home sales are considered pending when the seller has accepted an offer, but the deal has not yet closed. Typically there is a one- to two-month lag before a sale is completed.
Wall Street economists surveyed by Thomson/IFR had predicted the index would fall to 84.9.
The index, which sunk to a record low of 83 in March, stood at 85.8 in August 2007.
Sales are picking up in places that have seen the most severe declines in housing prices — including California, Florida Nevada and Arizona, plus Rhode Island and the Washington, D.C. area, said Lawrence Yun, the trade group's chief economist. Still, Yun does not expect home prices to rebound until next year and only expects a modest gain of 2 to 3 percent in 2009.
A major unknown is how the worldwide financial crisis and economic slump will affect the housing market.
Despite numerous efforts by the Federal Reserve to encourage banks to lend more, lenders have kept tight reins on mortgage lending, and average rates on 30-year mortgages have remained over 6 percent for most of the year.
The latest effort by the central bank came Wednesday, when the Fed and six other major central banks around the world slashed interest rates Wednesday in an attempt to prevent a mushrooming financial crisis from becoming a global economic meltdown.
The Fed reduced a key rate from 2 percent to 1.5 percent. In Europe, which also has been hard hit by the financial crisis, the Bank of England cut its rate by half a point to 4.5 percent and the European Central Bank sliced its rate by half a point to 3.75 percent. Also cutting rates were the central banks of China, Canada, Sweden, and Switzerland.
There's no guarantee, though, that mortgage rates will match the Fed's cut.
That's because long-term interest rates, which influence 30-year mortgages, don't always move in sync with the Fed's action, which lowered the interest rate banks charge each other on overnight loans.
However, the Fed action will reduce borrowing costs almost immediately for U.S. bank customers whose home equity and other floating-rate loans are tied to the prime interest rate. Bank of America, Wells Fargo and other banks cut their prime rate by half a point to 4.5 percent after the Fed announcement.
WASHINGTON (AP) — Pending home sales rose 7.4 percent from July to August, an unexpected piece of positive news for the battered U.S. housing market.
The National Association of Realtors said Wednesday its seasonally adjusted index of pending sales for existing homes rose to 93.4 from an upwardly revised July reading of 87. The reading was the highest since June 2007.
Home sales are considered pending when the seller has accepted an offer, but the deal has not yet closed. Typically there is a one- to two-month lag before a sale is completed.
Wall Street economists surveyed by Thomson/IFR had predicted the index would fall to 84.9.
The index, which sunk to a record low of 83 in March, stood at 85.8 in August 2007.
Sales are picking up in places that have seen the most severe declines in housing prices — including California, Florida Nevada and Arizona, plus Rhode Island and the Washington, D.C. area, said Lawrence Yun, the trade group's chief economist. Still, Yun does not expect home prices to rebound until next year and only expects a modest gain of 2 to 3 percent in 2009.
A major unknown is how the worldwide financial crisis and economic slump will affect the housing market.
Despite numerous efforts by the Federal Reserve to encourage banks to lend more, lenders have kept tight reins on mortgage lending, and average rates on 30-year mortgages have remained over 6 percent for most of the year.
The latest effort by the central bank came Wednesday, when the Fed and six other major central banks around the world slashed interest rates Wednesday in an attempt to prevent a mushrooming financial crisis from becoming a global economic meltdown.
The Fed reduced a key rate from 2 percent to 1.5 percent. In Europe, which also has been hard hit by the financial crisis, the Bank of England cut its rate by half a point to 4.5 percent and the European Central Bank sliced its rate by half a point to 3.75 percent. Also cutting rates were the central banks of China, Canada, Sweden, and Switzerland.
There's no guarantee, though, that mortgage rates will match the Fed's cut.
That's because long-term interest rates, which influence 30-year mortgages, don't always move in sync with the Fed's action, which lowered the interest rate banks charge each other on overnight loans.
However, the Fed action will reduce borrowing costs almost immediately for U.S. bank customers whose home equity and other floating-rate loans are tied to the prime interest rate. Bank of America, Wells Fargo and other banks cut their prime rate by half a point to 4.5 percent after the Fed announcement.
Tuesday, October 7, 2008
America's Fastest-Selling ZIP Codes from Forbes Magazine
No. 2 San Francisco, Calif., 94111
Year-Over-Year Change in Home Sales: 106.52%
2008 Median Sale Price: $755,000
San Francisco's financial district continued to see healthy home sales over the last year. Whether or not the recent financial crisis will affect this remains to be seen, but real estate agents will have a better idea in February or March, the post-bonus season window when financial-industry types tend to put down payments on homes. However, the area has seen steady appreciation since 2003, when the median price of a home was $600,000. Even a major spike in home prices in 2005, which caused the market to dip, hasn't pushed numbers too low.
As credit tightens, job losses and foreclosures mount and stocks see-saw, getting a mortgage is the last thing on many Americans' list of things to do this year.
That's not the case for home buyers in Cold Spring Harbor, N.Y. (population: 4,975). This quaint town on the North Shore of Long Island--with a Main Street that's only one-fifth of a mile long--is popular among buyers, and that's despite a $100,000 year-over-year median home sale price decrease to $1.2 million. Home sales there jumped 65.63% last year; there were 53 more from July 2007 to June 2008 than the same period a year prior. If you're looking to stay put, and have the money, it's a good buy; experts believe homes in this area will appreciate.
In Depth: 10 Spots Where Homes Are Selling Fast
Other neighborhoods are appreciating and selling well. That is, if you're willing to pay up. The median home sale price in most of these areas is more than $700,000, which puts them in the richest 1% of ZIP codes in the country. They include 10069, a part of New York's Upper West Side, 94111 in San Francisco, Cold Spring Harbor's 11724 and Fisher Island, Fla., ZIP 33109.
Wealth matters here. If buyers aren't paying cash for these homes upfront, they likely have enough net income to secure a mortgage, which is rare during this tight credit period.
"The areas that have been insulated from the [mortgage meltdown] tend to have high-income residents," says Walter Maloney, a spokesman for the National Association of Homebuilders (NAHB), a Washington, D.C.-based trade organization.
Behind the Numbers
To determine our list of the 10 best ZIP codes to buy a home, we looked at the percent increase in home sales from July 2007 to June 2008 in the top 500 richest ZIP codes in the country. This data was provided by First American CoreLogic, a Santa Ana, Calif.-based provider of real estate property and ownership information.
It's no surprise that Manhattan ZIP code 10069 tops our list. This patch of the city's Upper West Side--which falls between the Henry Hudson Parkway and West End Avenue and between 60th Street and 70th Street--has seen its home sales double in the last year to 233. That's mostly due to Riverside Boulevard's Trump Place, a 16-building, 5,700-unit apartment complex set to be completed in 2009.
But that's just one building, which means that once all the units are sold, the percent increase in homes sales in this ZIP code--108.04% from July 2007 to June 2008--is likely to slow down. The area remains desirable, however, for homeowners looking for a long-term investment. It's what economists call proximity value: A condo that's located near several other very expensive properties--like the Trump units, which cost upward of $1 million for a one bedroom--will hold its value better than one on the fringe of a metro area.
Fisher Island, a man-made resort island off the coast of Miami Beach that represents ZIP code 33109, is one of the only spots in the state of Florida that has stayed afloat during this real estate meltdown. While the median sale price of a home over the last year was $3.85 million, that number increased by half a million from 2007. Unlike some pricey spots that see an influx of buyers and then a severe dip in interest, the secluded Fisher Island has remained exclusive for an extended period because of its limited space. There are just 218 households on the private, 216-acre island. According to the U.S. Census Bureau, the area boasted the highest per capita income of any U.S. area in 2000.
What's happening to home sales in your neighborhood? Weigh in, Post your thoughts in the Reader Comment section below.
Monday, October 6, 2008
Friday, August 29, 2008
Increase in Local Market Searches
Though the housing sector has been in turmoil for about a year now, last month showed a glimmer of hope with new home sales up 2.4% month over month in July.
Real estate search site Diane Schmitz Realtor of Campi Properties is reaping the benefit of the little good news there is out there for the real estate industry. In July, Realtor.com saw increases in searches for certain local markets around the country, and they are:
• Stockton-Lodi, CA 140.9%
• Las Vegas, NV 93.9%
• Fort Myers-Cape Coral, FL 69.5%
• Detroit, MI 51.8%
• Washington, DC-MD-VA-WV, VA 49.1%
As a result, traffic to the site is up 9.5% year-over-year, despite an overall industry traffic slump declining 1% year-over-year.
Real estate search site Diane Schmitz Realtor of Campi Properties is reaping the benefit of the little good news there is out there for the real estate industry. In July, Realtor.com saw increases in searches for certain local markets around the country, and they are:
• Stockton-Lodi, CA 140.9%
• Las Vegas, NV 93.9%
• Fort Myers-Cape Coral, FL 69.5%
• Detroit, MI 51.8%
• Washington, DC-MD-VA-WV, VA 49.1%
As a result, traffic to the site is up 9.5% year-over-year, despite an overall industry traffic slump declining 1% year-over-year.
Thursday, August 28, 2008
New Home for Sale in the Cupertino School District part 2
1392 Belleville Wy, Sunnyvale Ca http://www.dianeschmitz.net
Wednesday, August 27, 2008
New Home for Sale in the Cupertino School District part 1
1392 Belleville Wy, Sunnyvale Come with me to see this great 4 bedroom 2 ½ bath home before it goes on the mls. Look at this great yard next time we will visit the inside.
Wednesday, August 13, 2008
Thursday, August 7, 2008
423 Arboleda Drive, Los Altos Home For Sale
Come see Diane Schmitz and Kathy Kitching Realtor new listing @ 423 Arboleda Drive, Los Altos
Tuesday, August 5, 2008
Stevens Creek Trail
In Santa Clara County California
Stevens Creek Trail is currently open from Shoreline at Mountain View to Yuba Drive. The 4 mile section of paved all weather pathway contains 6 undercrossings, 4 pedestrian bridges, a major 1/4 mile overcrossing structure that spans Central Expressway, Evelyn Avenue, light rail and the Caltrain tracks and a 350 foot pedestrian/bicycle overpass spanning Highway 237. The trail provides users multiple experiences through woodlands, tidal marshes and city neighborhood parks. In addition to bringing a unique creekside experience to urban residents and workers, the trail's easy connections to major bus routes, Cal Train and light rail make it ideal for connecting to the city's North Bayshore businesses. The trail is open from dawn to dusk. Dogs are allowed on leash from Yuba Drive north to the Crittenden Trailhead which is an entrance to Shoreline at Mountain View. Dogs are not allowed in Shoreline at Mountain View. Parking is available at the Crittenden Lane, La Avenida, Whisman, Landels and Yuba Drive Trailheads.
Saratoga Country Club is located on approximately 100 acres in the secluded foothills of Saratoga and offers scenic views of Santa Clara Valley. Saratoga Country Club was formed in April 1958 and first opened for play June 6, 1962. Six tennis courts were opened for play in 1972, and the second floor of the clubhouse, dining room and lounge was added in 1974.
Sunday, August 3, 2008
Thursday, July 31, 2008
Monday, July 21, 2008
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