Daily Real Estate News | June 26, 2009 | Share
Real Estate Improves in California
Median prices for single-family homes in California have risen for the third straight month, reaching $267,570, up 4 percent from April, according to a report from the California Association of REALTORS®.
The inventory of homes continues to drop, falling a 4.2-month supply in May, compared to 8.7 month supply in May 2008.
California’s real estate market always has been seen as a leading indicator for the rest of the country. What is happening in California bodes well for the rest of the nation, observers say.
Source: The Wall Street Journal, Stu Woo (06/26/2009)
Tuesday, June 30, 2009
Tuesday, June 23, 2009
Poor Appraisals Stall Transactions
Poor Appraisals Stall Transactions
However, the increase in sales is less than expected because poor appraisals are stalling transactions. Pending home sales indicated much stronger activity, but some contracts are falling through from faulty valuations that keep buyers from getting a loan.”
Total housing inventory at the end of May fell 3.5 percent to 3.80 million existing homes available for sale, which represents a 9.6-month supply at the current sales pace, down from a 10.1-month supply in April.
Yun says the appraisal problem is serious.
“Lenders are using appraisers who may not be familiar with a neighborhood, or who compare traditional homes with distressed and discounted sales,” he says. “In the past month, stories of appraisal problems have been snowballing from across the country with many contracts falling through at the last moment. There is danger of a delayed housing market recovery and a further rise in foreclosures if the appraisal problems are not quickly corrected
However, the increase in sales is less than expected because poor appraisals are stalling transactions. Pending home sales indicated much stronger activity, but some contracts are falling through from faulty valuations that keep buyers from getting a loan.”
Total housing inventory at the end of May fell 3.5 percent to 3.80 million existing homes available for sale, which represents a 9.6-month supply at the current sales pace, down from a 10.1-month supply in April.
Yun says the appraisal problem is serious.
“Lenders are using appraisers who may not be familiar with a neighborhood, or who compare traditional homes with distressed and discounted sales,” he says. “In the past month, stories of appraisal problems have been snowballing from across the country with many contracts falling through at the last moment. There is danger of a delayed housing market recovery and a further rise in foreclosures if the appraisal problems are not quickly corrected
Wednesday, June 17, 2009
Can Buying Cheap Foreclosures Make You Rich?
We are certaining feeling this in San Diego County. First time homebuyers are becoming frustrtated as they are outbid by the cash investors...
Speculators are buying up an uncounted, but certainly significant percentage of homes for sale in cities where the meltdown has hit hardest.
Homes.com reports a 30- to 50-percent year-over-year increase in searches for homes in foreclosure-heavy states, including California, Michigan, and Florida. In these states, helping long-distance investors find and close on properties and close has become a burgeoning real estate specialty.
The investors run the gamut from international speculators seeking a house or two to venture capital firms that buy bundles of homes for 25 cents on the dollar — most in need of renovation and some with substantial tax liens.
Will these investments lead to riches? Possibly, if housing prices go back up and if investors are able to fix up and rent the properties out while they wait to sell, experts say.
Source: Smart Money, Anne Kadet (06/01/2009)
Speculators are buying up an uncounted, but certainly significant percentage of homes for sale in cities where the meltdown has hit hardest.
Homes.com reports a 30- to 50-percent year-over-year increase in searches for homes in foreclosure-heavy states, including California, Michigan, and Florida. In these states, helping long-distance investors find and close on properties and close has become a burgeoning real estate specialty.
The investors run the gamut from international speculators seeking a house or two to venture capital firms that buy bundles of homes for 25 cents on the dollar — most in need of renovation and some with substantial tax liens.
Will these investments lead to riches? Possibly, if housing prices go back up and if investors are able to fix up and rent the properties out while they wait to sell, experts say.
Source: Smart Money, Anne Kadet (06/01/2009)
Tuesday, June 16, 2009
New Tools for House Hunters
If you are thinking of buying a home but not quite ready to call me to help, here are some ideas to get you started. It is really amazing the resources that are out there to get you going. Just remember, when you are ready, I am here to help.
New technology continues to make it easier for shoppers to identify homes to buy. Here are some of the latest and greatest.
There’s an iPhone app for that: Zillow.com released a free iPhone app that allows consumers to check out homes for sale. The GPS-powered app allows shoppers to drive by a home for sale and see price and other details like number of bedrooms and baths.
Search for ROI: Web sites like Investorloft.com rank homes by the profits they produce and identify properties with big differences between listing price and estimated value. The site has listings in 20 states and will be in all 50 by early 2010.
Search for falling prices: Trulia.com will let you look for price reductions. Enter a zip code and reduced listings will come up.
Guided tours on YouTube: Coldwell Banker has partnered with YouTube to launch a homes-for-sale video channel.
Project value for $9.95: Cyberhomes is offering a market report for slightly less than $10 that provides neighborhood price projections and 12- to 24-month price-change forecasts. It also identifies the number of distressed, foreclosed, and REO properties nearby.
Source: CNNMoney.com, Les Christie (06/15/2009)
New technology continues to make it easier for shoppers to identify homes to buy. Here are some of the latest and greatest.
There’s an iPhone app for that: Zillow.com released a free iPhone app that allows consumers to check out homes for sale. The GPS-powered app allows shoppers to drive by a home for sale and see price and other details like number of bedrooms and baths.
Search for ROI: Web sites like Investorloft.com rank homes by the profits they produce and identify properties with big differences between listing price and estimated value. The site has listings in 20 states and will be in all 50 by early 2010.
Search for falling prices: Trulia.com will let you look for price reductions. Enter a zip code and reduced listings will come up.
Guided tours on YouTube: Coldwell Banker has partnered with YouTube to launch a homes-for-sale video channel.
Project value for $9.95: Cyberhomes is offering a market report for slightly less than $10 that provides neighborhood price projections and 12- to 24-month price-change forecasts. It also identifies the number of distressed, foreclosed, and REO properties nearby.
Source: CNNMoney.com, Les Christie (06/15/2009)
Father's Day History
Have you ever wondered where Father's Day started? Well, woman by the name of Sonora Smart Dobb came up with the idea. She was listening to a Mother's Day service in 1909 and wanted to let her father know how special he was to her. See, she had been raised by her father, William Jackson Smart, after her mother died. It was her father who had raised her, taken care of her and made all the sacrifices. To her he was the most loving and selfless person in her life and she wanted to honor him. William was born in June so she chose the first Father's Day celebration to take place in Spokane, Washingon on June 19th, 1910.
Later, the National Father's Day Committee was formed in New York City in 1926. Father's Day was recognized by a Joint Resolution of Congress in 1956. In 1972, President Richard Nixon established a permanent national observance of Father's Day to be held on the third Sunday of June.
So there you have it. Father's Day was started by a daughter who wanted to honor her father just like mothers are honored on Mother's Day.
Later, the National Father's Day Committee was formed in New York City in 1926. Father's Day was recognized by a Joint Resolution of Congress in 1956. In 1972, President Richard Nixon established a permanent national observance of Father's Day to be held on the third Sunday of June.
So there you have it. Father's Day was started by a daughter who wanted to honor her father just like mothers are honored on Mother's Day.
Monday, June 15, 2009
California imposes 90-day foreclosure moratorium
The Associated Press
Posted: 06/13/2009 04:53:54 PM PDT
Updated: 06/13/2009 04:53:55 PM PDT
SACRAMENTO, Calif.—California is imposing a 90-day moratorium on housing foreclosures under a new law that takes effect Monday.
The law is expected to make lenders try harder to keep borrowers in their homes. Loan companies must prove they tried to modify the delinquent loans before they can begin foreclosing.
But supporters acknowledge the California Foreclosure Prevention Act won't stop thousands of foreclosures from eventually happening. There have been more than 365,000 foreclosures in California since early 2007, with many more already scheduled.
The bill passed in February is similar to the Obama administration's Making Home Affordable Program that began in March.
Both encourages lenders to cut interest rates or rewrite loans to affordable levels.
Posted: 06/13/2009 04:53:54 PM PDT
Updated: 06/13/2009 04:53:55 PM PDT
SACRAMENTO, Calif.—California is imposing a 90-day moratorium on housing foreclosures under a new law that takes effect Monday.
The law is expected to make lenders try harder to keep borrowers in their homes. Loan companies must prove they tried to modify the delinquent loans before they can begin foreclosing.
But supporters acknowledge the California Foreclosure Prevention Act won't stop thousands of foreclosures from eventually happening. There have been more than 365,000 foreclosures in California since early 2007, with many more already scheduled.
The bill passed in February is similar to the Obama administration's Making Home Affordable Program that began in March.
Both encourages lenders to cut interest rates or rewrite loans to affordable levels.
Tuesday, June 9, 2009
Moving Tips
Moving Tips for the Busiest Moving Month of the Year—June
RISMEDIA, June 9, 2009-When moving, many people are faced with weighing the options-should they hire movers or pack themselves? What are the benefits of doing either? What do most people forget when packing up and moving? How can you save money when moving? From FlatRate Movers, a nationwide leader in moving and storage, here are some tips to keep in mind:
• Order boxes and moving supplies early so you can start packing. Moving companies provide boxes that are purpose made and easily marked. If your moving company allows you to return unused boxes, order more than you think you’ll need, by 20%. Likewise, do not scrimp on tape. It is inexpensive and prevents boxes from splitting open. You need fresh felt tip pens for labeling. Use colored ready-stick labels to designate boxes to their respective rooms.
• Start a book about your upcoming move and keep it in one place. Create a “Move Book,” using a large noticeable notebook, to centralize all the important details of your move. It should contain any lists you make, including that of labeled boxes. Supplement this with a computer printout of box contents. E-mail this to yourself as a backup. You can also access it remotely.
• First, pack up what you don’t use. Items, such as books, you do not immediately need can be packed right away. Keep your list up to date. Do not make the boxes too heavy for a person to carry, and place heavier objects at the bottom.
• Document your media connections. Take photos of or make notes on how your media equipment is set up: television, sound equipment, modems and computer equipment. Keep track of your remote controls and wires so you can locate them quickly in your new home.
• Make arrangements for pets. Moving can be particularly stressful for animals. You may want to consider leaving them with a friend or retaining a professional pet boarding service.
• Plan to care for your valuables and vital documents yourself. Most homeowner’s insurance will not cover property in transit. It may be desirable to insure certain items separately. Remember to take photos in case you need documentation to support loss or damage claims. If the items are irreplaceable (family heirlooms) or complicated to replace (passports and birth certificates), carry them with you.
• Choose a good moving company. Good companies guide you through the process and minimize surprises on moving day. They have local knowledge and a proven track record, and they can also advise you on receiving building permissions. Moving companies have no incentive to create extra hours of work for themselves, if they work for a flat fee.
• Keep your moving receipts for income tax deductions. In many cases, moving expenses are deductible from federal income taxes. If you are moving because of a change in employment, you may be able to claim this deduction even if you do not itemize. Consult your tax preparer. Also note that there is an $8,000 tax credit for first-time home buyers in the economic stimulus plan, signed into law by President Obama. To learn more, visit www.federalhousingtaxcredit.com.
Read more: http://rismedia.com/2009-06-08/moving-tips-for-the-busiest-moving-month-of-the-year—june/#ixzz0HykZkCMZ&C
RISMEDIA, June 9, 2009-When moving, many people are faced with weighing the options-should they hire movers or pack themselves? What are the benefits of doing either? What do most people forget when packing up and moving? How can you save money when moving? From FlatRate Movers, a nationwide leader in moving and storage, here are some tips to keep in mind:
• Order boxes and moving supplies early so you can start packing. Moving companies provide boxes that are purpose made and easily marked. If your moving company allows you to return unused boxes, order more than you think you’ll need, by 20%. Likewise, do not scrimp on tape. It is inexpensive and prevents boxes from splitting open. You need fresh felt tip pens for labeling. Use colored ready-stick labels to designate boxes to their respective rooms.
• Start a book about your upcoming move and keep it in one place. Create a “Move Book,” using a large noticeable notebook, to centralize all the important details of your move. It should contain any lists you make, including that of labeled boxes. Supplement this with a computer printout of box contents. E-mail this to yourself as a backup. You can also access it remotely.
• First, pack up what you don’t use. Items, such as books, you do not immediately need can be packed right away. Keep your list up to date. Do not make the boxes too heavy for a person to carry, and place heavier objects at the bottom.
• Document your media connections. Take photos of or make notes on how your media equipment is set up: television, sound equipment, modems and computer equipment. Keep track of your remote controls and wires so you can locate them quickly in your new home.
• Make arrangements for pets. Moving can be particularly stressful for animals. You may want to consider leaving them with a friend or retaining a professional pet boarding service.
• Plan to care for your valuables and vital documents yourself. Most homeowner’s insurance will not cover property in transit. It may be desirable to insure certain items separately. Remember to take photos in case you need documentation to support loss or damage claims. If the items are irreplaceable (family heirlooms) or complicated to replace (passports and birth certificates), carry them with you.
• Choose a good moving company. Good companies guide you through the process and minimize surprises on moving day. They have local knowledge and a proven track record, and they can also advise you on receiving building permissions. Moving companies have no incentive to create extra hours of work for themselves, if they work for a flat fee.
• Keep your moving receipts for income tax deductions. In many cases, moving expenses are deductible from federal income taxes. If you are moving because of a change in employment, you may be able to claim this deduction even if you do not itemize. Consult your tax preparer. Also note that there is an $8,000 tax credit for first-time home buyers in the economic stimulus plan, signed into law by President Obama. To learn more, visit www.federalhousingtaxcredit.com.
Read more: http://rismedia.com/2009-06-08/moving-tips-for-the-busiest-moving-month-of-the-year—june/#ixzz0HykZkCMZ&C
Friday, May 29, 2009
Housing Prices Pick Up in California
This is very encouraging new, but the lenders need to stop being overly conservative on their new loans by requiring at least one comparable property to have sold for more than the subject property. Buyers are willing to buy and their is competition for homes but if the property won't appraise all bets are off. I think it is great that lenders have learned from previous mistakes and that there needed to be tighter lending requirements but they have swung to the far other side. Don't they realize they are defeating themselves, forcing the banks themselves to list the bank owned properties for lower than what buyers are willing to pay. It seems to me they are cutting off their nose to spite their face. They need to use some common sense when making lending requirements.
Daily Real Estate News | May 29, 2009
As the biggest residential property market in the United States, California often serves as a bellwether for the nation's economic health. And new research from that state suggests that housing prices nationally could start to rebound relatively soon.
The latest data, including two consecutive monthly gains in the median price of existing homes, has some industry officials hopeful that the state housing market has finally reached a bottom and is poised to recover from a prolonged period of declining residential values.
In April, California's single-family median home price rose 1.4 percent to $256,700. While that is still off by more than 36 percent from April 2008, the 540,360 homes sales on a seasonally adjusted annual basis reflect an increase of almost 50 percent over the same period, according to the state’s REALTORS® group.
Source: Wall Street Journal, Jim Carlton (05/29/09)
Daily Real Estate News | May 29, 2009
As the biggest residential property market in the United States, California often serves as a bellwether for the nation's economic health. And new research from that state suggests that housing prices nationally could start to rebound relatively soon.
The latest data, including two consecutive monthly gains in the median price of existing homes, has some industry officials hopeful that the state housing market has finally reached a bottom and is poised to recover from a prolonged period of declining residential values.
In April, California's single-family median home price rose 1.4 percent to $256,700. While that is still off by more than 36 percent from April 2008, the 540,360 homes sales on a seasonally adjusted annual basis reflect an increase of almost 50 percent over the same period, according to the state’s REALTORS® group.
Source: Wall Street Journal, Jim Carlton (05/29/09)
Tuesday, May 26, 2009
Experts Say Real Estate Industry Is Thinning
As news like this hits the airwaves, I want to make sure you know that I am not going anywhere! I love what I do and I am not going to stop now! I have worked to hard to get here!
Daily Real Estate News | May 26, 2009 | Share
Some people are predicting that the current slump in real estate sales will mean a permanent thinning of the ranks among real estate professionals.
"The real estate brokerage industry is not going away, but the combination of efficiency gains via the Internet and the cyclical downturn will both be significant forces to their rapidly shrinking ranks," said Stuart Gabriel, director of UCLA's Ziman Center for Real Estate.
Other observers are not so sure. Yes, the Internet and the economy are having an impact on housing sales and the way some practitioners do business, but it won’t reduce the need for savvy advice, says David Emerson, an associate with Prudential California Realty with 25 years experience.
“Buying a house is a big deal,” he says – and the paperwork alone is enough to make many buyers avoid the do-it-yourself approach.
Source: The Los Angeles Times, Ricardo DeAratanha (05/25/2009)
Daily Real Estate News | May 26, 2009 | Share
Some people are predicting that the current slump in real estate sales will mean a permanent thinning of the ranks among real estate professionals.
"The real estate brokerage industry is not going away, but the combination of efficiency gains via the Internet and the cyclical downturn will both be significant forces to their rapidly shrinking ranks," said Stuart Gabriel, director of UCLA's Ziman Center for Real Estate.
Other observers are not so sure. Yes, the Internet and the economy are having an impact on housing sales and the way some practitioners do business, but it won’t reduce the need for savvy advice, says David Emerson, an associate with Prudential California Realty with 25 years experience.
“Buying a house is a big deal,” he says – and the paperwork alone is enough to make many buyers avoid the do-it-yourself approach.
Source: The Los Angeles Times, Ricardo DeAratanha (05/25/2009)
Thursday, May 21, 2009
HUD: Homebuyer Tax Credit Loans Still on Track
Yesterday I posted an update that the tax credit could not be used toward the down payment. It appears that the details are still being worked out but that it will be available. See below..
Daily Real Estate News | May 21, 2009
News reports that the federal government is backing away from its plan to permit eligible borrowers to monetize the first-time homebuyer tax credit are off the mark, a spokesperson for the U.S. Department of Housing and Urban Development says.
"The technical details are still being finalized and will soon be published in a mortgagee letter and posted on our Web site," Lemar Wooley, a HUD spokesperson, told REALTOR® Magazine Wednesday afternoon.
Under the guidance that's under development, state agencies and other HUD-approved entities would be able to provide short-term bridge loans that households could use to help with their downpayment. The loans would be repaid with the proceeds from the households' federal tax credit.
The loans were announced on the opening day of NAR's 2009 Midyear Legislative Meetings in Washington, D.C., last week. In his announcement, HUD Secretary Shaun Donovan said guidance would be issued shortly.
When the guidance is released, it is expected to cover eligible lenders and set parameters for loan terms and repayment.
Source: REALTOR® Magazine Online
Daily Real Estate News | May 21, 2009
News reports that the federal government is backing away from its plan to permit eligible borrowers to monetize the first-time homebuyer tax credit are off the mark, a spokesperson for the U.S. Department of Housing and Urban Development says.
"The technical details are still being finalized and will soon be published in a mortgagee letter and posted on our Web site," Lemar Wooley, a HUD spokesperson, told REALTOR® Magazine Wednesday afternoon.
Under the guidance that's under development, state agencies and other HUD-approved entities would be able to provide short-term bridge loans that households could use to help with their downpayment. The loans would be repaid with the proceeds from the households' federal tax credit.
The loans were announced on the opening day of NAR's 2009 Midyear Legislative Meetings in Washington, D.C., last week. In his announcement, HUD Secretary Shaun Donovan said guidance would be issued shortly.
When the guidance is released, it is expected to cover eligible lenders and set parameters for loan terms and repayment.
Source: REALTOR® Magazine Online
Wednesday, May 20, 2009
Update for Using Tax Credit for Down Payment
Can the $8,000 First-Time Home Buyer Tax Credit for Down Payments on FHA Loans? The Department of Housing and Urban Development (HUD) account last week that first time home buyers would be able to use the $8,000 “first-time home buyer tax credit” for down payments on FHA loans through the use of bridge loans.
The Department of Housing and Urban Development posted the information on their website in HUD Mortgagee Letter 09-15. For some reason they have completely removed the information from their website. People are speculating that the program is on hold because they have decided to make changes to the program.
While no official explanation has been given, it appears that The Department of Housing and Urban Development and the Internal Revenue Service are researching the details of the program, leaving the status unknown for now
The Department of Housing and Urban Development posted the information on their website in HUD Mortgagee Letter 09-15. For some reason they have completely removed the information from their website. People are speculating that the program is on hold because they have decided to make changes to the program.
While no official explanation has been given, it appears that The Department of Housing and Urban Development and the Internal Revenue Service are researching the details of the program, leaving the status unknown for now
Tuesday, May 19, 2009
Home Prices Have Hit Bottom
As the following explains, many feel that home prices have hit bottom. I agree that if left up to buyers and sellers this would be the bottom. We are seeing multiple offers at or above the listed price which indicates the properties could sell for more except for one very important player. This player is the lenders. The lenders are continuing to devalue property by requiring an appraisal with at least one sometimes 2 comparables must have sold for more. This is creating a perpetual declining market. Also with the banks flooding the market with houses priced under market, looking for a quick cash deal they are further driving down the comps. The lenders are forcing the market lower by listing properties so low and making it tough for buyers to get a loan with the appraisal situation.
The second part of the article discusses the seller’s perspective of home prices. This is very true. Seller's often times feel that their property is exempt from the issues affecting the rest of the market. They feel their property is worth more than the one down the street. Some like overlook the any negatives about the property and see pink carpet and paneling as a reason their house is worth more than the neighbors. I try to explain that the reality is, their house’s value has declined and that even if a buyer comes along and is willing to pay over market value, they will not be able to get the loan. Many times the seller lists the home with the agent that tells them everything they want to hear as opposed to one who was upfront with them from the start. It can be difficult to watch as the property languishes on the market as prices continue to decline. So keep this in mind if you are considering selling your home, if the list price sounds too good to be true, it probably is.
Daily Real Estate News | May 19, 2009 | Share
Practitioners Say Homes Prices Have Hit Bottom
Real estate professionals are optimistic that home prices will hit bottom in the next six months, according to a survey from listing and home-pricing site HomeGain.com.
About half of practitioners surveyed expect home prices to stay the same in the next six months, 29 percent expect them to drop, and 22 percent believe they will increase.
More than 84 percent of practitioners believe their clients’ homes lost value in the last year, while 12 percent say values had stayed the same. Only 3 percent believe homes had gained value.
Meanwhile, sellers were skeptical of their real estate professional’s analysis, with 69 percent believing their homes were worth more than the practitioner recommended. About 35 percent of home sellers thought their home was worth 10 percent to 20 percent more, and 10 percent thought their home was worth at least 21 percent more than their real estate professional suggested.
Source: Inman News (05/18/2009)
The second part of the article discusses the seller’s perspective of home prices. This is very true. Seller's often times feel that their property is exempt from the issues affecting the rest of the market. They feel their property is worth more than the one down the street. Some like overlook the any negatives about the property and see pink carpet and paneling as a reason their house is worth more than the neighbors. I try to explain that the reality is, their house’s value has declined and that even if a buyer comes along and is willing to pay over market value, they will not be able to get the loan. Many times the seller lists the home with the agent that tells them everything they want to hear as opposed to one who was upfront with them from the start. It can be difficult to watch as the property languishes on the market as prices continue to decline. So keep this in mind if you are considering selling your home, if the list price sounds too good to be true, it probably is.
Daily Real Estate News | May 19, 2009 | Share
Practitioners Say Homes Prices Have Hit Bottom
Real estate professionals are optimistic that home prices will hit bottom in the next six months, according to a survey from listing and home-pricing site HomeGain.com.
About half of practitioners surveyed expect home prices to stay the same in the next six months, 29 percent expect them to drop, and 22 percent believe they will increase.
More than 84 percent of practitioners believe their clients’ homes lost value in the last year, while 12 percent say values had stayed the same. Only 3 percent believe homes had gained value.
Meanwhile, sellers were skeptical of their real estate professional’s analysis, with 69 percent believing their homes were worth more than the practitioner recommended. About 35 percent of home sellers thought their home was worth 10 percent to 20 percent more, and 10 percent thought their home was worth at least 21 percent more than their real estate professional suggested.
Source: Inman News (05/18/2009)
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