PlacerAreaHomes.com

Making Sense of the Market July 2010

2010-08-02T16:26:00.000-07:00

Making Sense of the Market Today

August 2^nd, 2010

This time around, let's look at some basic trends to see where the
Placer County Real Estate market is now that we have an economy
teetering on recovery. One of the most basic weather vanes is to look
at Absorption Rate. That is the percent of homes that are sold in any
one month (or looked at another way – how many months will it take
to sell all the homes currently for sale). A neutral market is one
that has 4 to 6 months of inventory on hand. A seller's market has
less than 4 months (more buyers than sellers); and a buyer's market
is one that has over 6 months of inventory (more sellers than
buyers).

Let's also break the market into two sections. One with homes
that sold under $300,000 and the other $300,000 and above.

Placer County Absorption Rate (All Homes Under $300,000)

It is easy to see in this graph that over the past 2 years we have
moved from a Buyer's market to a Seller's market with between 2 and 3
months of inventory over the past 13 months in the under $300,000
price range. I'll break the home sales down to REO (Bank
Owned/Foreclosed homes), Short Sales (homes owners are negotiating
with the bank) and Non-Distressed homes (no direct bank involvement).
If we look at homes sold during this time period we see what started
out as an REO market in January of 2009 has turned into a pretty
equal mix of REO, Short Sale and Non-Distressed Sales. Non-Distressed
sales are those where the bank is not involved in the transaction and
currently makes up 37% of the sales with the remainder made up of
Short Sales at 33% and REO at 30%. With the combined REO and Short Sale
listings, distressed sales still make up
nearly two thirds of all the sales in the under $300,000 range.

Placer County Market Trends Under $300,000 (Metrolist)

Here is the last graph of the under $300k showing inventory, sold
and pended homes.

Placer County For Sale - Sold - Pended (Metrolist)

This is an interesting chart because it shows that we have had a
fairly significant increase in inventory over the past 4 months while
sales have had a slight increase. Increased pendings does not always
reflect an immediate increase in the number of sold homes – as you
can see with the numbers for last summer. Some offers are canceled
and many short sales take longer than 30 days to close.

Over
$300,000

For the over $300,000 price range we are currently looking at
nearly 5 months of inventory with 22% of the homes selling each month.
That is considered to be a neutral market.

Placer County Absorption Rate for Over $300,000 (Metrolist)

And here below, is the market breakdown for the homes sold in Placer County
looking at REO, Short Sale and Non-Distressed sales. Over the past 18 months
Non-Distressed sales have made up 57% of the reported sales on Metrolist
listing service. April 2010 was 58%, May was 59% and June was 58%. Compare
that to the 63% distressed sales in the under $300,000 price range.

Placer County Market Trends for Over $300,000 (Metrolist).

Placer County For Sale - Sold - Pended Over $300,000 (Metrolist)

As you can see below, we are starting to see a rebound in the sales of
homes over $300,000 this year in the county area.

There are some significant differences in home sale trends
when you compare the under $300k to the over $300k homes.

Besides the
overall basic trends described here, I cannot stress enough that home prices are extremely specific
to your location. If you have questions about the value of your home, please
feel free to contact me at (916) 303-0257.

New Facebook Page

2010-07-20T08:37:00.000-07:00

I've created a new Facebook page for PlacerAreaHomes.com. It should be another fun way to communicate with those of you interested in the local Real Estate market. Share the link and stay cool in this heat.

Employee Programs for HP, Intel, Apple, Yahoo, Weyerhaeuser, and More!

2010-06-23T14:20:00.000-07:00

Hello Neighbors,

Fun news.

Neighborly is now partnered with several different large companies in Northern California and the Bay Area. Most are tech companies, which happily takes us back to our previous lives...

Neighborly has been working for several months to get these relationships in place, and they've all gone live simultaneously.

Neighborly now offers special programs to employees of:

- Hewlett-Packard
- Intel
- Apple
- Oracle
- Microsoft
- Yahoo
- AMD
- Genentech
- KeyPoint
- Sony Playstation
- Levi Strauss
- Meriwest Credit Union
- CommonWealth Central

If you work for one of those companies, how do you get access to Neighborly's special employee programs?

Log into your employee discount portal and search:

a) Home & Garden > Real Estate category or
b) Finances & Money > Real Estate category

What is your employee discount portal called?

It could be different at each company. Examples:

1) HP's system is called "Passport”
2) Microsoft’s system is called “Benefits Prime”
3) Intel’s system is called “Vault”
4) Apple’s system is called “Passport Unlimited”
5) Weyerhaeuser's system is called "MyDiscount".

Contact your internal HR rep for help with your system.

Many thanks!
Jeff Engle
http://www.PlacerAreaHomes.com

Strategic Defaulters May Not Buy Again Soon

2010-05-28T14:22:00.000-07:00

Repost from CNN via Realtor Magazine:

Strategic Defaulters May Not Buy Again Soon
How long will it be before former home owners who walked away from their mortgages can buy again?

Mortgage lenders are saying that in the future, losing a home because of illness or job loss will be seen differently than choosing to abandon a mortgage obligation for other reasons.

"If you made a strategic decision to default on paying your mortgage, it will work against you," says Bill Merrell of the National Association of Review Appraisers and Mortgage Underwriters.

It will probably be seven or eight years before walkaways are able to buy another home, says Jay Brinkmann, chief economist for the Mortgage Bankers Association. "Credit scores are only one component of a complete credit decision," he says. "[In these cases] credit scores are not a good indicator of their willingness to continue to pay their mortgage."

Source: CNNMoney, Les Christie (05/28/2010)

If you know of someone who needs to explore options regarding their home, please let let introduce them to me.

Jeff Engle
http://www.PlacerAreaHomes.com

SFR (Short Sale/Foreclosure Certification)

Borrowers Walking Away from Homes

2010-05-10T13:14:00.000-07:00

Strategic Defaults, Borrowers Walking Away, Homes in Foreclosure

Hello Neighbors,

60 minutes did a story last night on something we see in this business on a daily basis.

"Strategic Defaults". When a home owner CAN afford their mortgage, but they decide to walk away from their home and let it go to foreclosure.

Here's the link:

http://www.cbsnews.com/video/watch/?id=6470184n

Although I agree with the depression-era view - that losing your house is the last straw - it's clear not everyone else does.

Regardless of your moral or ethical view of this trend, the economic impacts are something to find concerning. We simply don't have economic models for this behavior.

We know banks are sitting on foreclosed homes and not releasing them to the market. If 1 of every 5 upside down borrowers is choosing to walk away, then the foreclosure rates are going to continue to be record setting for years to come.

If you need to short sell, give Neighborly a call.

Please don't walk away. We can help you protect your financial future by doing the right thing.

Jeff

http://www.PlacerAreaHomes.Com

Neighborly Realty

New Flood Insurance Policy Information For Natomas

2010-05-05T07:21:00.000-07:00

This just in from our friend Chris Altobell with Farmers Insurance. It looks like buyers in Natomas may have a few extra hiccups:

Hi Jim,

The National Flood Insurance Program has been suspended; meaning new flood policies cannot be issued. This will likely have an impact on your clients looking to close escrow on a house in the Natomas area (or any other area) where flood insurance is required by the lender.

The flood program will not be reconsidered for extension until the Senate resumes its session on April 12th.

Here’s why it is being suspended:

1) The proposal for extending the flood program is part of a larger package of programs that are under consideration for extension. There is opposition to extending some of the other programs, not the flood program.

2) There are many in Congress who want to make reforms before granting a long-term extension to the flood program.

I’ll keep you posted on any further changes.

Cheers,

Chris

Have questions?

Chris can be reached at the following:

Altobell Insurance Agency
1700 Eureka Rd., Ste 120
Roseville, CA 95661
(916) 797-0990 (office)
(916) 214-2126 (cell)
www.farmersagent.com/caltobell

Thank you Chris for the updates!

Jeff
http://www.PlacerAreaHomes.Com

Neighborly Supports the "Tour de Cure" 100 Mile Bike Fund Raiser

2010-04-30T21:22:00.000-07:00

Neighborly Supports the "Tour de Cure" 100 Mile Bike Fund Raiser

Tour de Cure, American Diabetes Association, 100 Mile Bike Race

Hello Neighbors!

Good fun.

Neighborly Realty & Neighborly Financial will be supporting the "Tour de Cure" 100 mile bicycle ride and fund raiser tomorrow, May 1st.

Here is the link:

http://main.diabetes.org/site/TR/TourdeCure/SacramentoArea?pg=entry&fr_id=6898
Neighborly's own Jeff Engle will be driving a support vehicle during the middle of the race!

Visit the web site, come out to the course, and come support the American Diabetes Association!

Jeff
Neighborly Realty
http://www.PlacerAreaHomes.com

REALTOR® Magazine-Daily News-30-Year Rate Just Over 5 Percent

2010-04-23T14:55:00.000-07:00

REALTOR® Magazine-Daily News-30-Year Rate Just Over 5 Percent

Entire Placer County Covered by Neighborly Realty

2010-04-23T09:19:00.000-07:00

While we covered the Tahoe area before, Neighborly has expanded it's coverage into Tahoe by joining the Tahoe-Sierra Board.

Neighborly Joins Tahoe Sierra Board

Searching for Property in Tahoe, Tahoe Sierra Board of Realtors, Tahoe Sierra MLS System

Hello Neighbors,

Neighborly joined our 4th Realtor board today, the Tahoe-Sierra board.

If interested, their web site is: http://www.tahoemls.com/index.cfm

Neighborly is now officially part of:

* Placer County Association of Realtors
* Sacramento Association of Realtors
* Nevada County Association of Realtors
* Tahoe Sierra Association of Realtors.

Why?

We have another client who needs better information in the Tahoe area than the "standard" Placer County and Nevada County MLS systems provide. The Tahoe area is on a smaller MLS system than the rest of the nearby counties. They are supposed to list properties in the major MLS systems too, but we are done fighting that battle.

So?

Should you need help with vacation property in Tahoe, or even your primary residence in Tahoe, we now have even better information.

Many thanks,

Jeff

Approved Short Sale in Elk Grove

2010-04-23T09:15:00.000-07:00

Approved Short Sale – Buyers Walked!

Approved Short Sale, Quick Close, Buyers Walked, Short Sale Sweet Spot

Hello Neighbors,

We don't usually use this space for updates about just one listing, but this is a special opportunity.

After months of negotiation, we have short sale approval at $146,400 for an Elk Grove property. ...and the original buyers have walked away!

If needed, a new buyer could likely close in 30 days.

We call this the "sweet spot" of short sales - the lender has approved the terms and conditions (which takes MONTHS) but the original offers have moved on. Now the property is ready for another potential buyer - and that buyer won't have to wait months!

Some basic details:

$35,082 Spent in Installed Builder Options !!!!

• 2 Bedrooms, 2 Separate Bathrooms, and a 1 Car Garage Included !!
• Great Room Concept with Kitchen + Living Room + Nook
• 1,239 Square Feet on this Quiet Second Floor
• Quality DR Horton Construction – Completed in 2007 – with DR Horton’s Ultra-Efficient “Environments for Living” Options, Meaning Very Low Utility Bills
• Outdoor Balcony / Patio for your Barbeque, Table + Chairs
• Upstairs Laundry
• Maple Cabinets, Built In Entertainment Center, and Fireplace!
• Granite Counter Tops in Kitchen
• Pre-Wired for Security Systems
• Upgraded 18” x 18” Tile Flooring Throughout
• Maytag Stainless Steel Appliances
• Upgraded Window Treatments, Including 3.5” Plantation Shutters
• Upgraded Carpet and Carpet Pad
• Maple Stair Rail, and Elegant Wood Framed Stairs
• Additional Storage Fixtures in Garage
• Upgraded Sinks and Faucets, Shower Doors Too!

MLS #10006472

We put a few pictures in Craigslist at this URL: http://sacramento.craigslist.org/reb/1706281642.html

Please let us know if we can help!

Many thanks,
Jeff

Win a home in Rocklin California

2010-04-19T12:03:00.000-07:00

Win a 5 Bedroom Home in Rocklin !!

St Jude Dream House Contest, Free House in Rocklin, Free Home in Rocklin

Hello Neighbors,

What a fantastic opportunity and for a wonderful cause. For a $100 entry ticket, your family could win a 5 Bedroom home in Rocklin. Yep. 3,096 square feet. Free. Built by Standard Pacific Homes. The address is already set - 2122 Ranch View Drive in Rocklin's Whitney Ranch. This is made possible through a St. Jude charity program.

Here is the link: http://www.stjude.org/stjude/v/index.jsp?vgnextoid=2360a4095bd67210VgnVCM1000001e0215acRCRD&vgnextchannel=61d5dc15925b0210VgnVCM1000001e0215acRCRD

The drawing is on June 27th. Good luck.

Please do invite Neighborly to the housewarming party!

More about St. Jude and their children's programs: http://www.stjude.org/stjude/v/index.jsp?vgnextoid=f2bfab46cb118010VgnVCM1000000e2015acRCRD

Jeff

http://www.EnglePropertiesOnline.com

We have a SPRING increase in home listings!

2010-04-09T08:24:00.000-07:00

Hello Everyone. Exciting news for us in Placer County and surrounding areas. For the first time in a while, we are seeing an increase in homes available for sale. For the end of March 2010 there are 1392 single family homes for sale in the County. Up from 1282 in February (with December 2009 and January 2010 posting similar numbers). Also, pending sales jumped to 747 (up from 518 in February and ranging from 329 to 572 for the prior 14 months.

Pre-Qualification explained from John Graham

2010-02-16T18:34:00.000-08:00

Placer County Home Sale Update

2010-02-16T18:33:00.000-08:00

2009 Placer County Single Family
Detached Home Market Recap

2009 showed single family detached home
prices stabilizing with less than a 1% increase of home prices
between the first half and second half with the average sale price
moving from $335,398 to $337,672 based on the sale of 2,867 sales in
the first half and 3,241 sales in the 2^nd half.

Non-distressed sales comprised 59% of
the sales in the 1^st half and 54% of the sales in the 2^nd
half, showing a light decrease in value of about 2% between the first
half and 2^nd half.

Bank Owned (REO) homes made up just
over 29% of the total homes sold for each of the periods with .37%
increase in value overall.

Short Sales increased from 12% to 16%
of the sales volume between the first half and 2^nd half of
the year and registering nearly a 5% drop in value.

Distressed sales (Bank Owned and Short
Sales) continue to be a dominate force in the market for Placer
County making up 42% of the sales for the 1^st half and 45%
of the sales in the second half.

2009 Single Family
Detached Home Placer County Home Sales

	1^st half		2^nd Half
Type of Sale	# of Sales	% of Total	# of Sales	% of Total
Active Owner Sales	1913	59%	1623	55%
Bank Owned (REO)	954	29%	874	29%
Short Sale	375	12%	476	16%

The good news is that home prices
showed considerable stability, especially for 3 bedroom homes.
Overall 39% of the homes sold within 30 days and 54% sold within 60
days (Combined Days on the Market). 54% of the Bank Owned (REO) homes
sold within 30 days and 69% sold within 60 days. Only 7% of short
sales sold within 30 days, and 17% within 60 days.

Time on the market –
Single Family Detached Home Sales

Sale Type	30 Days	60 Days	90 Days	Average*
Overall	39%	15%	11%	70 days
Non-Distressed	42%	17%	12%	64 days
Bank Owned (REO)	54%	15%	9%	38 days
Short Sale	7%	10%	14%	141 days

* Average market time may
not include prior listings

Under $250,000 home sale analysis
for Placer County

Home prices for
the under $250,000 price range rose 1% between the first half of 2009
and the 2^nd half. Average prices rose from $200,055 to
$202,185. Interestingly, Short Sale prices showed level prices
between the first half and 2^nd half for this price range.
Bank Owned (REO) sales decreased as a percentage of sales by 13%.
This decrease was made up by an increase of both Non-Distressed sales
of 9% and Short Sales of 4%. Distressed sales (Bank Owned & Short
Sales) decreased from 78% of the sales in the first half to 69% in
the 2^nd half. Distressed sales seem to be moving up in the
price range with more traditional non-distressed sales starting to
appear in this price range.

Single Family Detached
Homes Sales Analysis

Under $250,000

Sale Type	1^st Half 2009	2^nd half 2009
Non-Distressed	22%	31%
Bank Owned (REO)	57%	44%
Short Sale	21%	25%

Single Family Detached
Homes Time on the market

Under $250,000

Sale Type	30 Days	60 Days	90 Days	Average*
Overall	43%	14%	11%	62 days
Non-Distressed	55%	16%	10%	45 days
Bank Owned (REO)	54%	15%	10%	38 days
Short Sale	6%	10%	15%	134 days

*
Average market time may not include prior listings

An Important Note

This
analysis is for homes reported sold through the Metrolist (MLS)
system and does not include all homes sold in the county. In
addition, home prices are very neighborhood specific. Your
neighborhood will most likely have different price characteristics
than the overall average. Please consult your Realtor © for
detailed analysis of the value of your home. This information is
provided to indicate general trends, and all information is deemed
reliable but not guaranteed.

Inventory

Last,
let's look at the inventory. Currently at the first of February there
are 1910 single family detached homes on the market for sale. That's
about 7% less than the 2050 range we saw in June and September
newsletters. REO bank owned properties currently make up 8% of the
market – a slight up-tick from the 6-7% we saw throughout most
of 2009. Short sales have increased again to a whopping 53% of the
inventory. This is up from 41% in June and 46% in September 2009.
Owner Occupied or non-distressed inventory dropped to 38% of the
inventory – down from 52% in June and 50% in September.

Placer County Single
Family Residence

January 2010
Inventory vs Sales

Type of Sale	Inventory %	Sales %
REO	8	29
Short Sale	53	34
Non-Distressed	38	37

Distressed
sales make up 61% of the sales for single family detached homes in
Placer County, and 63% of the sales. REO Bank Owned sales are still a
driving force in the market while only comprising 8% of the inventory
they comprise nearly a third of the sales.

Placer County Single
Family Residence

Under $250,000

January 2010 Inventory
vs. Sales

Type of Sale	Inventory %	Sales %
REO	10	36
Short Sale	76	24
Non-Distressed	14	38

For the
under $250,000 priced homes, distressed sales made up 86% of the
inventory and 60% of the sales. REO Bank Owned sales comprised 10% of
the inventory and over a third of the sales.

Pre-qualification Video from Neighborly Financial

2009-12-10T10:23:00.000-08:00

Energy Savings could equal Tax Savings

2009-10-19T13:12:00.000-07:00

Hi Neighbors,

Some of my home buyers have used this energy credit. Often the tax credit can be used along with other rebates offered by PG&E and SMUD.

Here's an article published by RISMEDIA with more details:

As the weather turns chilly in many parts of the country, homeowners are looking at improvements to help them keep their energy costs down-and the government can help with part of the bill.

Upgrade your insulation, windows, doors, roofing, heating and air-conditioning system or water heater, and you could qualify for a federal tax credit for 30% of the purchase price of the product-up to a $1,500 maximum credit. The credits can be claimed on a homeowner's income taxes for 2009 or 2010, whatever year the improvements were purchased. With a credit, the amount comes off any taxes you owe. The credit is nonrefundable, meaning it allows taxpayers to lower their tax liability to zero, but not below zero, according to the Internal Revenue Service.

"It's a good time to be thinking about this," said Ronnie Kweller, spokeswoman for the Alliance to Save Energy. The alliance notes that a more energy-efficient home, along with the lower fuel costs and the mild weather expected for this winter, should make for lower heating bills a blessing for many cash-strapped consumers.

To qualify for the credit, you must place those purchases in service between January 1, 2009 and December 31, 2010. "The $1,500 cap applies to the aggregate amount of credits claimed in both years combined," said Robin Christian, senior tax analyst at the tax and accounting business of Thomson Reuters. "Also, only improvements made to your principal residence qualify-vacation homes are not considered."

Typically, for more costly improvements-including solar water heaters, solar panels, small wind-energy systems and geo-thermal heat pumps-the credit is for 30% of the purchase price, with no cap, according to the Energy Star website. Fuel cells also are covered, at 30% of the cost, up to $500 per 0.5 kilowatt of power capacity. Credits for these improvements are available through 2016, but you must claim them for the tax year in which you made the purchase. And all but the fuel-cell equipment can be used for a vacation home as well. To qualify for the credits, all of the products must be used inside a home. That means equipment used to heat a pool or hot tub doesn't qualify, Christian says.

Also, the federal tax credits don't always cover the cost of installation. The installation costs for heating and cooling systems and some other higher-cost improvements qualify, according to the Energy Star site. But installation of windows, insulation, doors and roofs doesn't. The tax-credit rules are different if you are building a new home. In this instance, you can qualify for the credit for some upgrades, including geo-thermal heat pumps, solar panels, solar water heaters, small wind-energy systems and fuel cells. But you won't get a tax credit for the purchase of windows, doors, insulation, roofs, heating and air-conditioning systems, and nonsolar water heaters, according to the Energy Star site.

Make sure any products you purchase come with a Manufacturer Certification Statement, a signed statement from the manufacturer that says the product qualifies for the tax credit. You will need that and any receipts when you claim the credit on your taxes. Monica Rebella, a certified public accountant in Tustin, Calif., suggests making a copy of receipts since the print can wear off over time.

When looking to make a home more energy efficient, consumers typically first turn to insulation and windows. "If you need insulation, that is the most cost-effective upgrade you can make-even without a tax credit," said Karen Schneider, website manager for Energy Star. "If you have a 50-year-old home and never looked at the insulation, now is the time to do that." Many insulation projects, such as upgrading or adding insulation in an attic, are easy for do-it-yourselfers, said Michael Chenard, director of environmental affairs for home-improvement store Lowe's. "Insulation is one of the easiest things to do that is covered by the tax-credit promotion," he says. Replacing windows also can be done by amateurs, as long as the measurements are accurate, Chenard said.

The federal tax credit doesn't cover the cost of installation, says Art Donnelly, of Legacy Builders & Remodelers Corp., on Long Island, N.Y. Still, the credit makes the cost of a more efficient window competitive with a lower-grade window that doesn't qualify, Donnelly says. And because of the weak economy, it's also easier to pick up the phone and get an appointment for a window installation today, he adds.

Jeff

http://EnglePropertiesOnline.com

REO Buyers can select their own Title and Escrow

2009-10-16T15:11:00.000-07:00

NAR reports that REO Buyers can now select their Escrow and Title companies. Here is the text of the

REO Buyer Can Select Escrow and Title: Effective October 11, 2009, the Buyer's Choice Act prohibits an REO lender selling residential property up to four units from directly or indirectly requiring the buyer to purchase escrow services or title insurance from any particular company. A buyer, however, who has received written notice of the right to make an independent selection, may agree to the REO lender's escrow or title recommendations. An REO lender that violates this law can be held liable for three times the charges the buyer incurred, whereas a violation by the seller's agent may be subject to license disciplinary action. This law expires on January 1, 2015. Assembly Bill 957.

Jeff
http://www.EnglePropertiesOnline.com

Longer Escrows - Yup!

2009-10-14T14:06:00.001-07:00

Hi Neighbors,

As mentioned in a blog article from a couple of months ago, be ready for potential extensions in escrows due to changes in financing regulation.

But... don't just take our word for it, take a look at what the California Association of Realtors (CAR) just published.

THANK YOU CAR!

NEW LOAN DISCLOSURE RULES MAY POTENTIALLY AFFECT CLOSE OF ESCROW

Starting July 30, 2009, if the APR on an initial Good Faith Estimate is no longer accurate (within a 0.125% range) at close of escrow, a lender must generally provide a residential borrower with a new disclosure and a three-day right to rescind before consummating the loan. REALTORS® are forewarned that, because of this new three-day waiting period, a lender's failure to timely provide corrected disclosures has the potential of delaying funding of the loan and close of escrow.

This new requirement is part of the Mortgage Disclosure Improvement Act (MDIA) implementing new loan procedures to protect borrowers and foster greater transparency in mortgage lending. For loan applications submitted on or after July 30, 2009, the new MDIA changes to the Truth in Lending Act are generally as follows:

Applicability: The new MDIA rules pertain to federally-related mortgage loans covered under RESPA and secured by a consumer's dwelling. The rules apply to both purchase and refinance loans.

Early Disclosures: A lender must provide a borrower with an initial Good Faith Estimate within three business days of receiving the borrower's written loan application as specified. For this provision, a "business day" is generally defined as a day on which the lender's offices are open for business.

Upfront Fees Restriction: Neither a lender nor any other person may impose an upfront fee on the borrower (except for credit report) until the borrower has received the early disclosures in person or, if mailed, three business days after the early disclosures are mailed. For this rule, a "business day" is defined as all calendar days except Sundays and legal public holidays as specified.

Seven-Day Waiting Period: A lender must wait seven business days after providing the early disclosures before consummating the loan. For purposes of this waiting period, a "business day" is defined as all calendar days except Sundays and federal legal holidays as specified. A borrower may waive the waiting period in writing in case of personal financial emergency, such as an imminent foreclosure sale.

Re-disclosure Requirement: If the final Annual Percentage Rate (APR) at loan consummation varies more than 0.125% (or 1/8 of one percent) from the initial APR on the early disclosures of a regular transaction, the lender must provide the borrower with a corrected disclosure at least three business days before the loan is consummated. For purposes of this waiting period, a "business day" is defined as all calendar days except Sundays and federal legal holidays as specified.

Three-Day Waiting Period: For corrected disclosures, a lender cannot consummate a loan until three business days after the borrower receives the corrected disclosure in person. If the corrected disclosure is mailed, the borrower is deemed to have received it three business days after it is placed in the mail. A borrower may waive this waiting period in writing in case of a bona fide personal financial emergency, such as an imminent foreclosure sale.

Source: The new MDIA rules and regulations are set forth at 74 Federal Register 23,289 (May 19, 2009) (to be codified at 12 CFR 226) available at http://www.federalreserve.gov/reportforms/formsreview/RegZ_20090519_ffr.pdf.

Again, our sincere thanks to CAR for this content.

Home Ownership: A good investment

2009-10-13T12:08:00.000-07:00

Hi Neighbors,

I've written about this before, but I think it is especially true for the Sacramento region. Now is the time to buy. Historically if you look at home values increasing over time, home prices have kept pace with inflation over the long run. With our current adjustment, the Sacramento - Placer - El Dorado counties are now actually below the long range trend. That indicates to me that not only will this region be among the first to recover, but will some modest appreciation. Of course the big caveat is the overall economy. You have to have jobs in order to have a decent economy.

Another thing to keep in mind from an investment point of view, your home values increase based on the purchase price of the home. So if your home is purchased for $100,000 and it increases 2% your HOME is now worth $102,000. But let's say you bought the home with 30% down. You have actually increased your $30,000 investment by $2,000. That's a 6 2/3% increase in your home equity. If your put down 3.5% FHA your increase based on investment is even greater.

The important thing to remember is that home ownership should make sense for you, and when you factor in all of the benefits and costs involved typically your ahead of the game when you buy a home. Some of those benefits may be intangible - like being able to have your children go to the schools you want them to, being able to have a home that fits your lifestyle, etc.

Here's a great quip from the NAR bulletin on this very topic:

The American dream of homeownership is still a good bet, financial advisors say firmly.

Despite the downturn in the last couple of years, homes have still appreciated an average of 4 percent a year since World War II. Plus, it's a leveraged investment; a 10 percent down payment yields a 1,000 percent return if the price of the home doubles.

There are also valuable intangibles. Owning a home provides independence, security, community, and a roof over the owner's head. No one can say that about investing in stock.

Source: Associated Press, Dave Carpenter (10/12/2009)

Jeff
http://www.EnglePropertiesOnline.com

Home Buyer Calculators available

2009-10-12T13:02:00.000-07:00

Hi Neighbors,

I'd like to share two links to home buying calculators reported from Business Week via the National Association of Realtors.

There are a number of free tools to help potential home buyers decide how much home they can afford to buy.

One of the best calculators is offered by the National Association of REALTORS®. It is simple to use and includes all the important criteria, says BusinessWeek columnist Marc Roth, founder and president of Home Warranty of America. If that doesn't work, Roth also recommends the real estate-related calculators offered by Michael Bluejay.

Source: BusinessWeek.com, Marc Roth (10/09/2009)

Happy Columbus Day

Jeff
http://www.englepropertiesonline.com

Home Prices Expected to Rise in 2010 (California)

2009-10-07T18:37:00.000-07:00

Hi Neighbors,

Leslie Appleton-Young, California Association of Realtor's Chief Economist released the 2010 California Real Estate Market Forecast. In that:

The median home price in California will rise 3.3 percent to $280,000 in 2010 compared with a projected median of $271,000 this year, according to C.A.R.'s "2010 California Housing Market Forecast," presented today at CALIFORNIA REALTOR® EXPO 2009 in San Jose. Sales for 2010 are projected to decrease 2.3 percent to 527,500 units, compared with 540,000 units (projected) in 2009

The report has some regional data in it. For example the peak of the housing market for the Sacramento Region was August 2005 where the median priced home was valued at $394,450. August shows that median price to be $192,050 or down 51%.

NOTE: Real estate is a neighborhood market. For example, the report shows that Concord's median price was down 16% Year-To-Year while neighboring Walnut Creek saw 13% decline. Placer County has a whole for example has not been hit as hard as Sacramento County as a whole. But when you look at it neighborhood by neighborhood great variations exist.

Another interesting note is that for California almost 20% of the sales were All Cash, up from 8% in 1998. My first time home buyers sure saw this action in the under $250,000 homes! Competition has been fierce.

Add a bathroom to increase your home's value

2009-10-07T17:23:00.000-07:00

Hi Neighbors. The NAR (National Association of Realtor's) posted this excerpt of an article originally published in the Chicago Tribune. Neat tidbit to share:

More than 80 percent of new single-family homes have at least two bathrooms, which occupy an average of 300 square feet of floor space, or 12 percent of the total area, according to a study by the National Association of Home Builders.

The home builder's study reports a major return on value for extra bathrooms: "When the number of bathrooms is approximately equal to the number of bedrooms, an additional half-bath adds about 10 percent to the home's value, and one additional bath adds about 19 percent."

A mid-range bathroom remodel, which costs $10,500 on average nationwide, repays a home buyer at least 100 percent of the outlay when the property is sold, the home buyer study concludes.

Source: Chicago Tribune, Mike McClintock (09/21/2009)

Now is a great time to do some of those home improvements you have been thinking about.

Jeff
Neighborly Realty
http://www.EnglePropertiesOnline.com

Making Cents of the Market Today (Placer/Sacramento Region)

2009-09-30T15:08:00.001-07:00

Hi Neighbors,

Making Sense of the Market Today

Current Home Inventory (MLS Single Family Detatched homes only)

Placer County currently has 2068 homes on the market at the end of September. This is 8 more than last month, and has been a fairly consistent running number throughout 2009.

Of the 2068 homes:

134 or 6% are Bank Owned (REO) homes. This number has been steadily declining over the past 9 months.

965 or 47% are Short Sales

971 or 47% are Organic, non-distressed owner sales

REO homes comprise a smaller percentage of Placer County Inventory

Foreclosed homes are decreasing in number as well as percentage during 2009, however the number of Short Sales have increased keeping distressed homes for sale at 50% or more of the homes on the market.

September 2009 Home Sales

342 homes were sold in Placer County during the month of September. 114 were Bank Owned (REO) homes accounting for 34% of all sales.

80 homes sold were short sales accounting for 24% of all sales.

138 homes sold were normal non-distressed 'active' or 'organic' sales.

REO (Bank Owned) homes are a driving force in our market. Again as we've consistently seen this year, REO sales are a driving force in the market. Even though they only account for 6-10% of the inventory they account for a third to half of the sales.

Sales Trends

The dollar value of sales have been fairly consistent throughout 2009.

Average and Median home price sales for Placer County

Month	Average	Median
Jan	311055	285000
Feb	336324	300000
Mar	320151	290000
Apr	342600	295000
May	348024	300000
Jun	345403	288000
Jul	345708	299500
Aug	336949	305000
Sep	327072	290000

9 Months Overall	336083	295000

Home Inventory and Sales for Placer County

Over the past 9 months inventory levels of single family homes and prices have remained fairly stable. The biggest change has been the decreasing volume of REO Bank Owned homes and the increase of Short Sales (both from an inventory perspective as well as volume of sales). Short Sale homes as well as non-distressed homes are selling at a price point set by the REO sales. Looking forward no major changes are forseen in the market other than the expiration of the First Time Home Buyer tax credit.

Hope this has been useful

Jeff
http://www.EnglePropertiesOnline.com

What to expect for home appreciation

2009-09-29T11:25:00.000-07:00

Hi Neighbors,

When you are purchasing or remodeling a home one of the things to consider is appreciation. What will the value of my home be in 5 or 10 years? In the past couple of decades, we've seen some incredible swings. Overall during the past 7 or more decades home prices have kept pace with inflation and most people buying a home did so because of life style reasons rather than as an investment. The Los Angeles Times recently publlished an artlce that sums up what some economists are predicting over the next few decades.

Housing Economists Predict Slow Growth
The fundamentals that drove the increase in housing values for the last century - increasing population, incomes, and household wealth - may not follow in the United States in the future. Some housing experts speculate this will change the economics of homeownership.

Over the next few decades, "We can expect a gradual rise [in home values], but not the bonanza we've become accustomed to between the end of World War II and 2006, and especially the last 20 years," says Robert Reich, public policy professor at UC Berkeley and U.S. Labor secretary in the Clinton administration.

The reasons for the change include the absence of pent-up demand that followed the Great Depression and World War II and the aging of the baby boomers who carried that housing demand forward, says housing consultant Thomas Lawler.

Source: Los Angeles Times, Peter Y. Hong (09/27/2009)

This is an interesting article and is of course only one prediction. Other things to consider is that left and right coast prices often rise more than the interior. Also, some area that have been hit the hardest such as Sacramento and some areas around Los Angeles may (in my estimation) recover a bit more than other areas because right now they are clearly below the historic appreciation points expected without the 'bubble'. In addition, there is continued population increase in California that will put more pressure on home prices.

The bottom line is that if your a home owner or planning to be one look at a home as a long term investment and include the tax advantages (consult your tax accountant) of home ownership. Investors also need to justify purchase of a property on the basis of a conservative market and not expect to make a windfall from appreciation.

Thanks for reading,

Jeff
Neighborly Realty
HTTP://www.EnglePropertiesOnline.com

Assistance for low income familes to purchase a home

2009-09-28T11:43:00.001-07:00

Hi Neighbors,

Great news today. Many of our communities have assistance programs for low income household to provide them with various assistance to get a home, however many of these are not funded. A good example is the city of Roseville's assistance program where there is a minimum of a 1 year wait and priority is given to city employees (great program if you are a city employee). The city of Rocklin and Lincoln have similar programs, but lack funding. The Obama administration may help fund more of these programs as reported below:

The U.S. Treasury is contemplating a new program that would provide as much as $15 billion to purchase tax-exempt mortgage bonds issued by states over the next three years.

The program would be beneficial for low-income home buyers who have long depended on state programs for low-interest mortgages. States have been unable to offer these mortgages in the last year because they haven't been able to sell mortgage bonds. This program would solve that, according to the National Council of State Housing Agencies.

Details are expected to be announced on Sept. 30.

Source: Bloomberg, Dawn Kopecki (09/28/2009)

Give me a call if you would like more details on local buyer assistance programs.

Jeff
Neighborly Realty
http://www.EnglePropertiesOnline.com

Great Neighborhood Analysis tool from KCRA and Frontdoor.com

2009-09-28T07:27:00.000-07:00

Hi Neighbors,

I found a link to frontdoor.com that has some wonderful pointers on choosing a new home, starting with doing an inventory of what you want out of a home, then finding a neighborhood that matches those requirements.

The article starts off by asking about your own family make-up and plans such as number and age of children (or plans on starting or expanding your family), the type of home you are looking for, commute distance, historic home or new development, what you like or dislike about your current community, access to stores and schools by foot, what community features turn you off such as noisy neighborhoods.

Also, once you have identified those neighborhoods you would like to explore take some time to check out the area durring different times of the day and night, and what your neighbors are like. You can also check out crime statistics by going to various crime statistics websites such as crimetracker, also on the KCRA website.

Enjoy,

Jeff
Neighborly Realty
http://www.EnglePropertiesOnline.com

Take advantage of the Energy Tax Credit

2009-09-28T06:19:00.001-07:00

Hi Neighbors,

While the new homebuyer tax credit may be expiring soon, the Energy Tax Credit IS NOT! You have until December 31, 2010 to get a 30% tax credit, up to $1,500 on installing new energy efficient windows, insulation, air conditioning systems, and more! AND funds are still available supporting the tax credit.

In addition there is the Residential Energy-Efficient Property Credit, or Section 1122, of the Recovery Act. This provides tax credits to install alternative energy equipment, such as solar hot water heaters, geothermal heat pumps, and wind turbines.

Check for a National Fenestration Rating Council (NFRC) certification to verify products qualify for the tax credit.

Jeff
Neighborly Realty
http://www.EnglePropertiesOnline.com

Short Sales - The good, the bad and the ugly

2009-09-25T10:25:00.001-07:00

Hi Neighbors,

I came across a summary of an article published in the Chicago Tribune talking about short sales. With about 40% of the inventory in Placer County (with similar stats in surrounding counties) short sales are an important part of our housing market today. With around 7% of the inventory from REO/Bank Owned properties and 40% from Short Sales that means nearly half of the inventory is in the cateogry of 'distressed sales'.

Here's the link to the full article, and here's the summary from the NAR:

As more homeowners find themselves underwater -- owing more on their mortgage than their home is currently worth -- and unable to make the monthly mortgage payments, many are turning to short sales, which allow a homeowner to sell their home for less than owed on the mortgage. Short sales can be a win-win situation for all parties, because they enable home buyers to purchase properties in desirable neighborhoods and at favorable prices.

· Theoretically, short sales should be a win-win for the bank and the homeowner. Although the bank does not receive the full amount owed on the mortgage, it also does not incur the costs of foreclosure and/or eviction, if necessary. Many homeowners also prefer short sales because it is less damaging to their credit scores than a foreclosure. However, many real estate experts say that the majority of banks are reluctant to approve short sales, and often let properties go into foreclosure, even when there are reasonable offers on the property. In addition to considering the price, most lenders also take into consideration whether the homeowner can demonstrate financial hardship. If the homeowner is capable of making payments, many lenders will try to work out a loan modification, rather than a short sale.

· Unlike foreclosed properties, which may be run-down and vacant for many months, short-sale properties are likely to be better maintained, as most owners may still live in the home.

· Short sales often are more time intensive than traditional transactions and often require additional paperwork. Due to the large number of offers on short sales, many take as long as a few months to receive approval. If information or required forms are missing or incomplete, the bank may set the offer aside, which could delay the process and cause the property to go into foreclosure. To expedite the process, sellers should work closely with their REALTOR® to provide all of the necessary paperwork.

· Working with a REALTOR^® who has experience with short sales can help both sellers and home buyers during the transaction. A seasoned REALTOR^® will be able to serve as the mediator between the seller and the lender, and lead to a successful transaction.

· It is important to remember that in a short sale, although the seller may be anxious about selling the property and willing to accept any offer, it is ultimately up to the lender to determine if, and at what price, the property can be sold. Home buyers should work closely with their REALTOR^® to submit realistic offers.

The important factor when dealing with short sales is mental. It's not an easy or fast process most of the time, however these homes are selling and with the right attitude, when you know what to expect as a buyer it can be worth the effort.

Jeff
Neighborly Realty
http://www.EnglePropertiesOnline.com

Updated New Buyer tax credit chart

2009-09-24T08:35:00.000-07:00

Hi Neighbors,

An updated tax credit chart has been published by the California Association of Realtors (CAR). It can be read in full here.

First, the California new home tax credit for First Time Home Buyers (FTHB) is no longer available as the funds have run out.

Secondly, the US tax credit is still available until November 30th of this year, for a 10% credit up to $8,000.

More details are available at the IRS web site here. Quoting from the IRS information: "The IRS reminds taxpayers the amount of the credit begins to phase out for taxpayers whose modified adjusted gross income is more than $75,000, or $150,000 for joint filers. Taxpayers can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately."

Hope this has been helpful,

Jeff
Neighborly Realty
http://www.EnglePropertiesOnline.com

Use your Self Directed IRA to invest in property

2009-09-23T10:15:00.000-07:00

Hi Neighbors,

Here is a great article about investing using your Self Directed IRA. The full article can be read here from the San Francisco Chronicle.

Key Points:

You need to follow IRS rules - for example you can't live in the property

The rental income can go directly back to your IRA

You need to put down 30%

This could be a great way to save money on taxes today and build your retirement. Read the article for details, and consult your tax accountant before making this move. For some, it could be a perfect way to invest.

Jeff
Neighborly Realty
http://www.EnglePropertiesOnline.com

First Time Home Buyers - now is the time to act

2009-09-23T10:02:00.001-07:00

Hi Neighbors.

I received a great article in a newsletter from a mortgage broker I work with - Chris Headrick. In it he states:

First-time homebuyers (FTHB) are taking advantage of one of the best real estate environments we have ever seen. Home affordability this year has been at an all time high with low interest rates and declining home prices. However, buyers on the fence should not be complacent.

The full article continues with great points about first time home buyer (FTHB) information. Included topics are:

Why buy a home

Financial reasons to buy

Move in and watch it grow (appreciation and equity)

The impact on your wallet - today

Income tax credit

Paying down points

Mortgage interest tax deduction

Private Mortgage Insurance (PMI)

Real Estate Taxes

Possibly more dough (not the bread)

And it sums up at:

If you or someone you know plans on purchasing a home in time to take advantage of the tax credit, there are some things to keep in mind. The last day to close to take advantage of the tax credit is Monday, November 30, 2009. Keep in mind, this follows Thanksgiving week. With the holiday offering a shortened work week for many, this will make closing at the end of the month more challenging.

You can read the full article here. Enjoy!

Jeff
Neighborly Realty
http://www.EnglePropertiesOnline.com

How much will you pay to save on your energy bill?

2009-09-22T09:19:00.000-07:00

Hi Neighbors,

My daughter recently purchased a home, and included an Energy Efficient Mortgage (EEM) with her FHA loan. This is a great tool for homes needing a retrofit for HVAC or insulation. But, how much are you willing to pay so save some $$$$ on your energy bill? For the EEM it's pretty neat because you are given several options to choose from, and the energy savings must be more than the montly increase of your mortgage.

Here's an interesting article about energy savings - of special note:

Even though prospective home buyers want the benefits of new, more efficient homes, they are unwilling to pay much more for a "green" home, according to a recent member survey from the National Association of Home Builders (NAHB).

Read more: http://rismedia.com/2009-09-19/home-buyers-want-to-save-energy-but-only-at-right-price/#ixzz0Rqvhs5VQ

Jeff
Neigbhorly Realty
http://www.englepropertiesonline.com

Keep that lawn green

2009-09-22T09:12:00.000-07:00

The fall is the time to fertize your lawn. Usually you need temperatures in the 90's or below for a few days so if you have not already done so, fertilize during the next cool spell.

More information can be found here.

Remember to stay within the guidelines recommended so you don't have a bunch of fertilizer wash out to our creeks and streams. A green lawn and well kept landscaping goes a long way when you are planning to sell your home. Curb appeal is key to getting top-dollar for your home.

Also check out fall flowers to add color. Here in California there is always something you can plant to improve your curb appeal.

Jeff
Neighborly Realty
http://www.EnglePropertiesOnline.com

Fire Safety at home

2009-09-22T09:11:00.000-07:00

I recently had a fire in the kitchen when my Kenmore gas range igniter caught fire. It was a scary time, and I was able to extinguish the blaze fairly quickly.

Here is a good article about fire safety in the home.

In the United States, approximately 2.4 million burn injuries are reported per year. The Journal of Burn Care and Rehabilitation reports that, of those injuries, between 8,000 and 12,000 of the burn patients die and approximately one million will sustain substantial or permanent disabilities resulting from their burn injury. According to the Home Safety Council's State of Home Safety in America Report, fires and burns are the third leading cause of unintentional home injury and related deaths.

Read more: http://rismedia.com/2009-09-20/top-10-tips-for-burn-and-fire-prevention/#ixzz0RqtMtGPo

The number one tip is to always stay in the kitchen while cooking.

Hope this is helpful

Jeff
Neighborly Realty
http://www.EnglePropertiesOnline.com

Afraid of a fixer?

2009-09-22T08:08:00.001-07:00

Hi Neighbors.

Afraid of a fixer? Do you live in one or are thinking of buying one, and are interested in doing a project yourself? Read on...

For some people, getting a fixer is just not in the cards. However for most folks a lot of the work that needs to be done on many homes is cosmetic like replacing carpet, painting, and minor repair work. Even when it gets a little more complicated like removing and installing new kitchen cabinets it may not be as difficult as it looks, and there is a lot of help available.

Often the first thing to do in any project is figuring out where to start. The key here is to break any project down into smaller ones. For example a kitchen remodel may include putting in a new floor, replacing kitchen cabinets and upgrading appliances. Figure out what needs to be done first, and then break each of these into separate projects. For example you may want to do the work in stages (replace the cabinets, install appliances, then do the floor) or you may want to gut the kitchen and start from the ground up.

There are lots of resources for those of you on your first project or 20^th project.

The Library. A great free resource is the library. The often have books on general remodels, fixing appliances, installing tile for example. Pay particular attention to what needs to be done BEFORE you start and the recommended sequence of doing the work.

Resources from your home center. Most 'big-box' stores such as Home Depot and Lowes have entire sections devoted to handyman books. From plumbing to kitchen remodels there are usually books that will get you started. If you are uncertain what to get they often have helpful sales help to assist you. They are also a great help for advice as you get down to the brass tacks of actually doing the work. Many also have short training sessions on how to replace a toilet, lay tile, or install kitchen cabinets.

Read the label. Sometimes, all it takes is reading the label. For example most toilet repair kits have pretty good instructions about what needs to be done. Again, a general handyman plumber's booklet or that sales assistant can help.

Find a friend. Yes, you probably have friends or neighbors who have experience in helping with your project. Often all it takes is a beer and Hamburgers to entice them over for assistance. Even if they don't have experience, often another set of hands come in very handy.

Find a contractor you can work with. On larger projects, you may want to do some parts of the work, and leave others to a contractor or handyman you hire. Talk to them about your capabilities and see what fits your budget and schedule.

Talk to your real estate professional. Yes, the Realtor you worked with to purchase your home is still there to help you even after the sale (or should be!). They often can provide you with advice as to where to go for help and who you may contact to provide reliable assistance.

Check out your local community college or technical school. Local colleges often have home owner related classes. For example I took a basic woodworking course to help me figure out what equipment and tools to buy for a large project I wanted to do myself. In addition it taught me the basic skill to not only use the equipment, but read and understand diagrams. I ended up taking 6 courses over a 3 year period that provide me with skills to either build or install ready-made cabinets.

Check out rental centers. You may not want to purchase fancy tools and power equipment for your one-time project. Rental centers usually carry a wide assortment of hand and power tools that will enable you to complete a project and stay within budget.

Have a can-do attitude. As the ads say, "You can do it, and we can help." While the "we" specifies a certain big-box store, the statement is true. If you get stuck go back to the books and ask for assistance. With the right attitude these projects can be fun.

Keep safety in mind. Don't do anything stupid to spoil that 'fun' of doing a home project. Do read all the safety information about equipment and tools. Your health and safety is not something to toy around with. Remember, Norm always starts out his TV shows with a safety reminder, and there is a reason. You only have one set of eyes and fingers. Keep them!

Hope this has been helpful. Now, what project do you want to start with?

Jeff
Neighborly Realty
http://www.EnglePropertiesOnline.com

New New Home Buyer Tax Credit?

2009-09-21T07:08:00.001-07:00

Congess is working on extending the new Home Buyer Credit. Remember, these are proposals and nothing is concrete other than the current Home Buyer Credit. If you are planning on purchasing a home now, the best course of action to to work hard at getting the current credit working for you and not hold out for an extension. The AP reports:

Washington is being forced to take a hard look at the expiring $8,000 first-time homebuyer tax credit.

Nearly a dozen bills have been proposed to extend the credit past the Nov. 30 deadline, but the top decision makers are just beginning to weigh in.

On Thursday, Senate Majority Leader Harry Reid endorsed a six-month extension. Treasury Secretary Timothy Geithner said Thursday that he hasn't made a decision yet. And the White House economic team says it will make a recommendation to President Barack Obama by the end of Friday.

Extending the credit is a tough sell in some corners because so far the credit has cost an estimated $15 billion, twice what was projected last February.

Source: The Associated Press, Adrian Sainz (09/17/2009)

Jeff
Neighborly Realty
http://www.EnglePropertiesOnline.com

What is the 'Neighborly Way'?

2009-09-17T09:22:00.001-07:00

Hello Neighbors,

Many thanks for those of you who have helped us support the Auburn "Highway 49 Fire" relief efforts. We plan to drop off another huge batch of clothing this weekend. This is a great community, and we very much appreciate the support from everyone.

For us... This is more than propaganda. Helping the communities where we live is part of our operating philosophy we call "The Neighborly Way". Take a look at point #9:

The Neighborly Way

1) Service - NOT Sales

2) Be the Industry and Market Expert

3) Advisors, Coaches, and Teachers

4) Respect for the Client, Team Member, Partners, and Peers

5) Communicate Frequently - with Fact, Tact, and Truth

6) Integrity First, Honesty Always

7) Earn and Encourage Trust

8) Personal Earnings are Second to Client Service and Their Satisfaction

9) Repay our Communities, Promote Charity

10) Protect and Promote the Environment

11) Deliver a Single One Stop Shop Experience

12) Unwavering Belief in The American Dream

Our name was chosen very intentionally. "Neighborly" is the way we conduct ourselves. These points guide our decision making and our actions. The "Neighborly Way" is much more than a simple tagline - it's how we live.

Our Vision

2009-09-17T09:21:00.001-07:00

Hi Neighbors,

I want to share Neighborly Realty's vision, direct from the Broker Jim Harris and fully endorsed by myself. The reason I joined Neighborly is because of our commitment to YOU and an attitude of helping and educating our clients. YOU are the reason we are successful.

From time to time, it's important to look at why we are here. Keeping us focused on a few fundamental beliefs means better service levels for you.

So now and then, we ask ourselves - what is Neighborly's Vision?

Where do we fit against the competition?

How do we behave, and represent the Neighborly Way every day?

Simply stated......

THE Choice

By Delivering Unequaled Customer Service, Neighborly is the Recognized Leader in Real Estate and Lending Services in Northern California - By Clients, Partners, and Industry Professionals.

Neighborly Offers a Fully Integrated Suite of Services to Meet and Exceed Client Expectations. Neighborly is THE CHOICE in Real Estate and Lending Services.

We believe it. We practice it. We welcome the opportunity to prove it to you.

Jeff
Neighborly Realty
http://www.EnglePropertiesOnline.com

First Time Homebuyer Affordability 2nd Qtr 2009

2009-09-17T09:12:00.001-07:00

Hi Neighbors,

Just a quick update. The California Association of Realtors posted it's 2nd quarter 2009 First Time Homebuyer affordability index. For California overall, 67% of households could afford to buy an entry level home. This is up from 49% a year ago. The estimated monthly payment including taxes and insurance is $1,330 for a median priced $224,180 home. The minimum houseold income was $39,930.

For Sacramento region the index was at 79% compared with 70% a year ago and 80% last quarter.

Again, good news for first time home buyers! Chances are good that you can qualify not only for that home, but also if you act quickly you can still apply for the $8,000 Federal Tax Credit for First Time Home Buyers.

More details on each area can be found here.

Enjoy,

Jeff
Neighborly Realty
http://EnglePropertiesOnline.com

Why can't I get that low interest rate?

2009-09-17T09:11:00.001-07:00

Hi Neighbors,

Lots of things go into calculating the interest rate on your mortgage, so few people get the rates quoted in online or newspaper ads. Factors that influence your interest rate include:

The amount of your down payment also factors in the 'Loan to Value' ratio

Points paid to 'buy down' your interest rate

Your credit score as reported by Experian, Trans Union and Equifax agencies

Debt to Income ratio

Type or property

Whether you are occupying the property or someone else

Amount of loan

An interesting article in the New York Times and reported on the NAR website regarding the amount of down payment:

A Down Payment Anomaly

Despite home buyers being advised to issue down payments of at least 20 percent, many home buyers are finding that smaller down payments result in better interest rates-but also higher payments.

Rules put in place in late 2008 by Fannie Mae and similar rules adopted by Freddie Mac are less favorable to borrowers who put down 20 percent to 25 percent--partially because the GSEs consider these borrowers to be more of a credit risk since they are not required to purchase private mortgage insurance.

According to Fannie Mae, borrowers benefit from this industry practice because they are able to leave themselves a financial cushion by not issuing larger down payments, and can instead save the extra money for emergencies.

It is important to note though that smaller down payments mean higher monthly payments because the loan itself will be larger.

To read the full story, please click here

Enjoy,

Jeff
Neighborly Realty
http://www.englepropertiesonline.com

First Time Homebuyer Advice

2009-09-17T09:05:00.001-07:00

Hi Neighbors,

Came across this tidbit originally posted in the NY Times:

Here are seven bits of wisdom from economists and financial planners for anyone contemplating a home purchase today:

Old-fashioned basics are more important than ever. The safest way to purchase a home is to put down 20 percent on a fixed-rate, 30-year (or less) mortgage.

Don't become overconfident about income growth. Even though buyers in their 20s and 30s will likely see their incomes grow more quickly than previous generations, it is important to act sensibly when borrowing.

Anyone contemplating adding children to the family should calculate whether they could live on one income because having both halves of a couple work may turn out to be impractical.

Include a maintenance budget. Even new homes need upkeep and repairs.

Buyers who can't afford their dream home now should opt for a starter home where they can save money each month for what they really want.

Consider a property that can be expanded and improved down the road when money is available.

No two buyers are the same, but they should all feel confident with the loan they enter into, no matter the size of the mortgage.

Source: The New York Times, Ron Lieber (09/12/2009)

Enjoy,

Jeff
Neighborly Realty

Zillow reports home sales information

2009-09-17T09:04:00.000-07:00

Hi Neighbors,

Zillow is reporting some interesting statistics on home sales. In most market analysis I've done in the Placer county area homes are in general selling about 101% of list price. They are reporting sales in Sacramento to be 100% of list price. The key takeaway here is that in most situations buyers need to be aware that 'deep discounts' are already on the table in the list price. Of course this varies and you should always consult your realtor to provide you with the appropriate details on the house you are putting an offer on.

More information:

Homebuyers continue to drive hard bargains, holding down prices while allowing properties to sit on the market for an increasing length of time, according to Zillow.com's market report.

Nationwide, buyers paid 3.3 percent, or nearly $7,039, less than the last listing price on homes for sale during the month of July. That is a slight improvement over June, when the discount was 3.5 percent and significantly less than the 4.6 percent discount in January.

Meanwhile, 22.8 percent of all homes listed for sale on Zillow had at least one listing price reduction as of Sept. 1. The median U.S. price reduction was 6.5 percent off the original listing price. Homes listed for sale on Zillow during August were listed for a median 96 days, up from 91 in July.

Florida homebuyers got the best deals with buyers in the Vero Beach area, paying 10.2 percent, or a median $23,500, less than the last listing prices. Other Florida cities with a percentage of discount in the top 25 nationally were Naples, Daytona Beach, Miami-Fort Lauderdale, Panama City, Punta Gorda, Melbourne, Ocala, Tampa, Jacksonville, Port St. Lucie, Gainesville, and Lakeland.

In California, the situation is swinging in the other direction. In El Centro, Calif., buyers paid 1.8 percent, or a median of $2,150, more than the listing price. In seven California markets - Sacramento, Merced, Modesto, Riverside, Stockton, Yuba City and Fresno - asking price and sale price were the same.

Zillow's top 10 markets for negotiating discounts were:

Vero Beach, Fla., -10.2 percent from the last listing price

Sarasota, Fla., -8.2 percent

Atlantic City, N.J., -8 percent

Naples, Fla., -7.8 percent

Daytona Beach, Fla., -7.5 percent

Miami-Ft. Lauderdale, Fla., -7.5 percent

Panama City, Fla., -7.1 percent

Punta Gorda, Fla., -7 percent

Melbourne, Fla., -6.6 percent

Detroit, Mich., -6.5 percent

Source: Zillow.com (09/10/2009)

Making Home Affordable

2009-09-17T09:03:00.000-07:00

Hi Neighbors,

Another note about mortgage relief. If you are interested in a loan modification, feel free to contact me as Neighborly has relations with a local and reliable loan modification service.

The Obama administration's $50 billion "Making Home Affordable" mortgage relief plan is picking up steam, with 360,000 borrowers, or 12 percent of the eligible group, signing up for a three-month trial mortgage modification.

"There are signs the plan is working," says Michael Barr, assistant Treasury secretary for financial institutions. "But we can do better."

Bank of America has enrolled about 7 percent of its 836,000 eligible loans, compared with 25 percent for JPMorgan Chase & Co.

The Treasury Department's decision to publish these numbers is driving the banks to do better. Lenders are "concerned about the report card showing them in a worse light than their peers," says David Stevens, assistant secretary for housing and FHA commissioner at the U.S. Department of Housing and Urban Development. "Nobody wants to be a low performer on that score card."

Source: The Associated Press, Alan Zibel (09/09/2009)

Jeff
(916) 303-0257

Legal questions when firestorms destroy property - FAQ

2009-09-17T09:02:00.000-07:00

Hi Neighbors,

The California Association of Realtors (C.A.R.) has published a FAQ on legal issues on property loss during 'Acts of God' such as firestoms. This informative article is available here.

In the introduction, the article sums up it's goals:

The seasonal firestorms we experience in California raise several legal questions for REALTORS® and their clients. The following questions and answers may be helpful for property owners and residents who have suffered a loss, or for buyers who are in escrow to purchase property involved in the disaster.

Our hearts and prayers go out to those effected by the fires.

Your neighbor,

Jeff

C.A.R. offers job loss insurance

2009-09-17T09:01:00.000-07:00

Hello Neighbors,

This is very cool.

At a time when employment is challenging - yet buying a home is absolutely the right thing to do (and timing couldn't be better), CAR is offering "First Time Buyer Insurance". I love it.

Take a look:

C.A.R.'s Housing Affordability Fund (C.A.R.H.A.F) has committed $1 million to support the Mortgage Protection Program - and the National Association of REALTOR another $420,000 - an insurance product that kicks in when the unexpected happens: job loss.

Your first-time buyers who enroll in the program can draw upon their mortgage protection policy in the event they lose their job after purchasing their home. Under the program, first-time buyers will be eligible to receive $1,500 per month for six months in the event of a job loss; co-buyers are eligible to receive $750 per month.

To be eligible for coverage, the home must be a principle resident in California and a first-time buyer is defined as someone who has not purchased a home in the past three years. While there are no caps on the applicant's income or the purchase prices of the home, the applicants are required to use a California REALTOR in their transaction; they cannot be self-employed or older than the age of 70. Consumers can apply for the program via their REALTOR.

It's new - so we haven't tried executing on the program yet... but if you want it, call me! We'll figure it out together!

Putting 2009 in the rear view mirror... Neighborly!

Jeff

Foreclosure Clinics

2009-09-17T09:00:00.000-07:00

Hi Neighobrs,

Freddie Mac is offering clinics on avoiding foreclosure. A number of the sessions will be in California. Click here for a link to the California sessions.

If you are facing foreclosure and would like to explore options, please call. We are associated with local loan modification services that may also be of help. There are programs available to help families to keep their home.

Remember, we here at Neighborly are available to help. Give me a call.

Your neighbor,

Jeff
(916) 303-0257

Reasons to move...

2009-09-03T14:53:00.000-07:00

Hi Neighbors,

Relocation.com is reporting that more people are moving for positive reasons:

People have gone back to moving in hopes it will improve their lives rather than moving to escape foreclosure or other aspects of the economic crisis, according to a survey of recent movers released this month by Relocation.com.

In the June survey, nearly 42 percent said they were in the process of buying a home or planning to buy one. Poll participants said their reason for moving was:

To live in a bigger or better home (26 percent).

To live in a better neighborhood or area (24 percent).

To be closer to family or friends (12 percent).

To live in an area with a lower cost of living (9 percent).

To accommodate a change in marital status (6 percent).

Moving because of school, job loss, retirement, or foreclosure each generated 3 percent or less.

Responses to this survey are substantially different from the responses to a similar survey in March, when 41 percent said the recession was, at least partially, driving their move.

Source: Relocation.com (08/06/2009)

This is positive news on the overall environment.

Jeff
Neighborly Realty

FHA loans make up 25% of all new loans

2009-09-03T13:38:00.000-07:00

Hi Neighbors,

The USA Today reports FHA loans have made a dramatic comeback over the past year or so.

About 25 percent of all new mortgages are backed by the Federal Housing Administration in what will probably be the busiest year yet for the federal agency.

Applications for FHA mortgages rose 50 percent from last October through mid-August 2009 and approvals for purchases, refinancings, and reverse mortgages rose 70 percent to 1.67 million.

FHA loans "are one of the most important sources in this market," says Mark Zandi of Moody's Economy.com. "Without FHA, the housing slide would be much more severe. We wouldn't be talking about a recovery now. We'd still be talking about a crash."

Some analysts are concerned about the risk the FHA has taken on, but others point out that borrowers with FHA-insured loans now have an average credit score of 690, compared to 630 two years ago. Borrowers with a credit score below 500 must come up with a 10 percent down payment.

Source: USA Today, Stephanie Armour (09/02/2009)

FHA has a full suite of loan products that include the EEM Energy Efficient Mortgage. Call me and we can talk about getting into your home with as little as 3.5% down!

Jeff
Neighborly Realty

Wildfires: Goats and Guides

2009-09-03T13:28:00.000-07:00

With the recent fires close by in Auburn California that destroyed over 60 structures including about 50 homes I thought a word about wildfires would be in order. What is eye-opening is that this is not a real rural area, but made up of suburban homes and businesses. Many of the homes did back up to a preserve or natural area.

Here in Lincoln, a friendly shepherd has had his goats and sheep graze off a lot of public and private land. One herd of over 800 goats and sheep are currently grazing and eating 1.5 tons of grass and brush a day. That's a LOT of potential fuel for fires removed. His herds graze each area for a few days, and actually give us the opportunity to get native plants a chance to grow.

Plus we are getting our open spaces fertilized so next spring should be great for wild flowers, bushes and grasses. Already many of the bushes that have been trimmed a couple of weeks ago have sprouted lots of new growth.

In a related article, the National Association of Realtors provides this information about wildfires:

As hot, dry weather heats up the wildfire season, the non-profit Institute for Business & Home Safety is making available a nine-region-specific wildfire property protection guide.

The free guide is downloadable in PDF format, includes advice for retrofitting a home to make to make it more fire resistant.

"We have seen the benefits of effective preparation time and again. On the news, you'll see homes left standing, when others right near them burned. This isn't luck; this is because the surviving home's owner did the right things to make their home more fire resistant," says IBHS CEO Julie Rochman.

Source: Institute for Business & Home Safety (09/02/2009)

Also see this article in the Lincoln News Messenger about the goats and sheep.

Remember, the fire season is just starting! Be careful and keep an eye out.

Jeff
Neighborly Realty

Making Cents of the Market Today (Placer/Sacramento Region)

2009-09-03T13:03:00.000-07:00

September 2009 Market Update for Placer County

Hi Neighbors,

Another discussion of the current market in Placer County.

There are currently 2060 homes on the market in Placer County as listed on MLS (Single Family Detached Homes). This number has stayed pretty constant throughout the summer. 713 or 35% have been on the market over 90 days.

7% of the total inventory (148 homes of the 2060) are REO (Bank Owned) homes , 32 or 16% of the REO have been on the market for over 90 days. 46% of the homes (944) are short sales and 1039 are organic non-distressed sales.

342 homes have been sold in the past 30 days (August). 112 of these were REO homes or 33% of the total homes sold for the month.. Looking at the under $200,000 market 18 of 36 homes were REO (50%). 52 of the 342 were Short Sales (15%). 178 of the 342 homes were Organic sales that were non-distressed sales (52%).

Bottom Line

So, while REO homes only make up 7% of the market, they account for 33% of the sales overall and 50% of the sales for the $200,000 and under homes. This is why you see many REO properties sell in a few weeks or a month after the initial listing. Short Sales account for 46% of the market but only made up 15% of the sales. Organic non-distressed sales make up 50% of the market and 52% of the sales.

Distressed sales are currently making up 48% of the sales and are still setting the prices overall. Virtually any home being sold now is being impacted by REO and Short Sales.

Jeff
Neighborly Realty

Interest rates drop again

2009-08-29T12:48:00.001-07:00

Hi Neighbors,

Here's a report from the Pittsburgh Post-Gazette. "Long-term mortgage rates remain near record lows, despite rising slightly this week. Freddie Mac reported that average interest on a 30-year fixed loan was 5.14 percent, up from 5.12 percent a week ago.

Rates for 15-year home loans, meanwhile, rose to 4.58 percent from 4.56 percent last week."

Source: Pittsburgh Post-Gazette (08/28/09)

Good news for home owners getting a new mortgage or planning to re-fi.

Jeff
Neighborly Realty

What? I'm being taxed on my Short Sale?

2009-08-28T14:10:00.000-07:00

Hi Neighbors,

Just a reminder that you should always check with a tax consultant when doing a short sale to validate the tax implications of your transaction. A recent article in the SF Chronicle (read article here). The article states "Californians who lose their homes in a foreclosure, short-sale or deed in lieu of foreclosure this year could be hit with a state income tax on canceled or forgiven debt." Federal law excepts taxing the forgiven debt through 2012. State rules are more complex, so check with your tax professional.

Two state tax bills are in the Assembly to expand the tax relief.

Have a great weekend,

Jeff

What if your loan is sold?

2009-08-28T14:01:00.000-07:00

The California Association of Realtors published a great article originally from the LA Times that I would like to share with my neighbors.

What to do if your mortgage is sold to another lender

Approximately half of all mortgage loans are sold from one lender to another, often because the original lender is not equipped to collect payments, manage escrow accounts, pay taxes and insurance, respond to questions, and prepare payoff statements when the home is sold or refinanced. Some borrowers may receive letters in the mail alerting them of the sale of their loan a few days after closing, while others may not receive a notice for years.

In the mortgage-industry, this is called a "transfer of servicing," and is a common practice. Borrowers should not be concerned about these changes, as the majority of lenders transfer their servicing rights to loans. Generally, the selling of a mortgage loan from one lender to another is a smooth transition and does not impact the borrower. Every so often though, there is a misstep by either the loan buyer or the loan seller.

Under the National Affordable Housing Act, when a mortgage loan is sold, the borrower is required to receive a "goodbye" letter from their current servicers at least 15 days before their next payment is due. The letter must state the name, address, and telephone number of the new servicer; the date the old company will stop collecting payments; and the date the new company will start accepting them. Under the Helping Families Save Their Homes Act, signed by President Obama on May 20, the new owner of the loan-which may or may not be the servicer-also must notify the borrower of the transfer within 30 days, known as the "hello" letter.

The "hello" letter should outline the same information as the "goodbye" letter sent from the former loan servicing company. Borrowers should be cautious if they receive a "hello" letter without receiving a "goodbye" letter, as they may be the intended victim of a scam by someone who is hoping to unlawfully receive the monthly mortgage payments. Concerned borrowers should contact their current loan servicer to verify if their loan has been transferred. If it hasn't, authorities should be notified immediately.

In most cases, a mortgage payment sent to the old servicer automatically will be forwarded to the new servicer for a brief amount of time, typically 60 days. However, if payments are not sent to the correct servicer, they could become lost, and the homeowner may incur late fees.

Best regards,

Jeff - Neighborly Realty

California Home Prices Increase

2009-08-28T13:56:00.003-07:00

The San Gabriel Valley Times is reporting:

Home sales increased 12 percent in July in California compared with the same period a year ago, while the median price of an existing home declined 19.6 percent, according to the latest sales and price report released by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).

MAKING SENSE OF THE STORY FOR CONSUMERS

· Closed escrow sales of existing, single-family detached homes in California totaled 553,910 in July at a seasonally adjusted annualized rate. The statewide sales figure represents what the total number of homes sold during 2009 would be if sales maintained the July pace throughout the year.

· Many housing analysts believe the first-time home buyers tax credit has helped fuel home sales in recent months. According to a survey of first-time home buyers, nearly 40 percent reported they would not have purchased a home if the tax credit was not offered. Because the tax credit has helped so many first-time buyers become homeowners, it is critical that Congress extends the credit beyond the Dec. 1 deadline, and includes all buyers, not just first-timers.

· The median price of an existing, single-family detached home in California declined 19.6 percent in July compared with July 2008, but rose 3.9 percent compared with June. The median price statewide during July 2009 was $285,480. July marked the fifth consecutive month of month-to-month increases in the median price and the smallest yearly decline in 19 months.

· C.A.R.'s Unsold Inventory Index for existing, single-family detached homes in July 2009 was 3.9 months, compared with 6.9 months for the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

· Thirty-year fixed-mortgage interest rates averaged 5.22 percent during July 2009, compared with 6.43 percent in July 2008, according to Freddie Mac. Adjustable-mortgage interest rates averaged 4.82 percent in July 2009, compared with 5.24 percent in July 2008.

Jeff
Neighborly Realty

Freddie Mac Issues Written Short Sales Commission Policy

2009-08-28T13:55:00.000-07:00

Hello Neighbors,

More evidence that sanity is returning to Real Estate!

Freddie Mac has thrown its weight behind helping us in the industry.

Thank you NAR (National Association of Realtors) for posting this update.

Short Sale transactions are the hardest escrow to conclude. Even when we have a Willing buyer, and a willing Seller - the Seller's lender will do a variety of evil things to kill the process. Only 25% of escrows on Short Sales are actually making it to COE (Close of Escrow). The other 75%? Who knows. Default (foreclosure), Loan Modification, or the Seller "catching up" are the other likely outcomes.

One of our least favorite actions is when the Short Sale lender comes after our wages. We can get through the entire negotiation process, inspection period, escrow .... and then have the lender say "by the way, we are cutting your commissions to ZERO". Yep. Working for free. Or - more realistically, since we've invested a great deal of time, energy, and our own funds - we are working for a loss. Now factor in that the majority of the houses on the market are short sales. Do the math, earnings risk is pretty high concern in this profession.

Why does this Freddie Mac news help?

We can now work with less fear of "Short Sale Earnings Theft". More confidence when showing Short Sale homes to Buyers. More faith that we can operate a business as a business - not as a collections agency.

We have more assurance that the industry is recovering, and some level of logic is returning to the key principles who drive this market. Stability is around the corner!

Freddie Mac Issues Written Short Sales Commission Policy

On August 20, 2009, Freddie Mac confirmed in writing that its servicers are not allowed to renegotiate short sales commissions. According to the policy, as a condition of the servicer’s acceptance of a short sale offer, servicers cannot renegotiate the sales commission below the amount agreed to by the real estate broker and the seller/borrower. However, if the negotiated commission exceeds 6 percent, servicers are required to limit it to 6 percent. This Freddie policy is consistent with Fannie Mae’s policy.

NAR has asked Freddie to establish an appeals process for cases when servicers refuse to comply with Freddie Mac’s policy.

Links to more in depth information can be found here:

Freddie Mac Single-Family Seller/Servicer Guide Bulletin 2009-22 (August 20, 2009) http://www.freddiemac.com/sell/guide/bulletins/pdf/bll0922.pdf

Fannie Mae Short Sales Commissions Policy and Appeals Process http://www.realtor.org/wps/wcm/connect/4fb4f4804e824cf0a6e8e696c79aa288/government_affairs_fannie_short_sales_policy.pdf?MOD=AJPERES&CACHEID=4fb4f4804e824cf0a6e8e696c79aa288

NAR’s Short Sales Website http://www.realtor.org/realtors/basics_short_sales

Just another sign that logic is returning (if slowly).

Jeff

Neighborly Realty

The Recovery is Upon us!

2009-08-28T13:54:00.000-07:00

Hello Neighbors,

The recovery is upon us!

(Note to self though - the rumored zillions of foreclosures still to hit the market could drive things down again... but when will those homes hit the market? I've been told "next month" for 11 months now...)

Thank you NAR (National Association of Realtors) for the updates posted below!

STRONG Gain in Existing-Home Sales Maintains Uptrend

Washington, August 21, 2009

For the first time in five years, existing-home sales have increased for four months in a row, according to the National Association of Realtors®.

Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 7.2 percent to a seasonally adjusted annual rate1 of 5.24 million units in July from a level of 4.89 million in June, and are 5.0 percent above the 4.99 million-unit pace in July 2008. The last time sales rose for four consecutive months was in June 2004, and the last time sales were higher than a year earlier was November 2005.
Lawrence Yun, NAR chief economist, said he is encouraged. “The housing market has decisively turned for the better. A combination of first-time buyers taking advantage of the housing stimulus tax credit and greatly improved affordability conditions are contributing to higher sales,” he said.

The monthly sales gain was the largest on record for the total existing-home sales series dating back to 1999.

“Because price-to-income ratios have fallen below historical trends, there are more all-cash offers. In some recovering markets like San Diego, Las Vegas, Phoenix, and Orlando, the demand for foreclosed and lower priced homes has spiked, and a lack of inventory is becoming a common complaint,” Yun said.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 5.22 percent in July from 5.42 percent in June; the rate was 6.43 percent in July 2008.

An NAR practitioner survey showed first-time buyers purchased 30 percent of homes in July, and that distressed homes accounted for 31 percent of transactions.
NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said the first-time buyer tax credit is working. “In addition to first-time buyers, we’re also seeing increased activity by repeat buyers. While many entry-level buyers are focused on the discounted prices of distressed homes, they’re also freeing some existing owners to sell and make a move,” he said.

“Realtors® are the best resource for consumers in these changing market conditions because the transaction process has become more complex. Since it’s now taking longer to complete a home sale, first-time buyers who want to take advantage of the $8,000 tax credit should try to make contract offers by the end of September,” McMillan said. “Otherwise, they may miss the November 30 closing deadline.”

Total housing inventory at the end of July rose 7.3 percent to 4.09 million existing homes available for sale, which represents a 9.4-month supply2 at the current sales pace, which was unchanged from June because of the strong sales gain. Raw inventory totals are 10.6 percent lower than a year ago when the number of unsold homes was at a record.

The national median existing-home price3 for all housing types was $178,400 in July, which is 15.1 percent lower than July 2008. Distressed properties continue to weigh down the median price because they typically sell for 15 to 20 percent less than traditional homes.

Single-family home sales increased 6.5 percent to a seasonally adjusted annual rate of 4.61 million in July from a pace of 4.33 million in June, and are 5.0 percent higher than the 4.39 million-unit level in July 2008. The median existing single-family home price was $178,300 in July, which is 14.6 percent below a year ago.

Existing condominium and co-op sales jumped 12.5 percent to a seasonally adjusted annual rate of 630,000 units in July from 560,000 in June, and are 5.9 percent above the 595,000-unit level a year ago. The median existing condo price4 was $178,800 in July, down 18.9 percent from July 2008.

Regionally, existing-home sales in the Northeast surged 13.4 percent to an annual pace of 930,000 in July, and are 3.3 percent higher than July 2008. The median price in the Northeast was $236,700, down 15.0 percent from a year ago.

Existing-home sales in the Midwest jumped 10.9 percent in July to a level of 1.22 million and are 8.0 percent above a year ago. The median price in the Midwest was $157,200, which is 5.9 percent less than July 2008.

In the South, existing-home sales rose 7.1 percent to an annual pace of 1.95 million in July and are 5.4 percent higher than July 2008. The median price in the South was $164,500, down 7.1 percent from a year ago.

Existing-home sales in the West slipped 1.7 percent to an annual rate of 1.13 million in July, but are 1.8 percent above a year ago. The median price in the West was $202,300, which is 28.0 percent below July 2008.

Buyers, we are getting close to the "now or never" point.

Jeff

When should I Buy? When should I Sell?

2009-08-28T13:53:00.000-07:00

Hi Neighbors,

Many economists and other experts are now saying pretty consistently that the housing market is stabilizing with additional relatively small decreases of housing prices depending on the location and the price range. In some areas and price ranges there are already moderate price increases including Northern California where the home values were among the first and hardest it in the nation.

So, when do I buy? First, when you look at the affordability of homes right now they are at record points right now dropping even below the 10 and 20 year historic average of keeping on par with inflation. Price changes over the next several months should not impact your decision to buy because you should be looking at housing as a long term investment whether you are a home buyer or an investor.

A recent article in the Wall Street Journal states:

Yes, there are some hopeful signs, but don't let them fool you into thinking it's all clear. It might not be. As ever, anyone making a major financial decision needs to think more about his or her own situation than what "the market" is doing. A real-estate purchase needs to make sense on its own terms. And measure it on cash flow today, not the hope for capital gains tomorrow. When you factor in all the costs, is the purchase cheaper than renting?

The next question is WHEN should I buy? For many first time home buyers and investors the competition is stiff in the under $250,000 market here in Northern California and quickly get discouraged. With the $8,000 tax credit there are clear incentives for first time home buyers to stick in there and find that home. There are no guarantees that there will be an extension or expansion of the current tax credit. But don't panic! Even without the tax incentive there are bargains to be had, and the expectations of virtually all the economists are that this will continue for some time. Again, the same WSJ article states:

The biggest bubbles usually produce the deepest busts. And the 2002-2006 bubble was a doozy. The bad news may have ended after three terrible years, but maybe not. Japanese housing prices still haven't recovered from the late 1980s bubble. Western U.S. markets took six or seven years to recover after the last big bubble burst there in the early 1990s.

So, get in the right mind set and most importantly have fun shopping for that new home! Do your homework and understand the benefits of owning your own home including factoring in the total cost of ownership such has tax write-offs for the taxes and mortgage interest.

The next question I get is when should I sell?

The bad news is that home prices are not expected to rise very much in the short term. Even over the next few years a lot depends on the economy, so forecasts always footnote this factor. The good news is that the home you want to buy is more than likely also at it's lowest price in years. Do the math to figure out the real cost. This may be the best time for you to upgrade or make an investment.

Jeff - Neighborly Realty

First Time Home Buyer Credit - Use It Now

2009-08-28T13:52:00.000-07:00

The Los Angeles Times has a great article about the first time home buyer credit. Although extension and expansion of the current bill is being considered, it's important to note that these changes may not be passed or may not take the proposed form. Here's the article summary:

First-time homebuyers-those who have not owned a home for at least three years-may be eligible for the $8,000 federal tax credit, but the window of opportunity is closing rapidly. To qualify for the credit, the buyer must close escrow by midnight on Nov. 30, when the tax credit expires. Buyers hoping to take advantage of this benefit are advised to start house-hunting early, as the buying and lending processes takes time.

MAKING SENSE OF THE STORY FOR CONSUMERS

· Finding the right house can take some time, so REALTORS® recommend home buyers start looking for a home as soon as they are able and ready to purchase. Buyers also should build in extra time to accommodate the lending process, which is taking approximately two weeks longer to process this year compared with last year.

· The tax credit is equal to 10 percent of the purchase price, up to $8,000, subject to income limits. Single taxpayers are eligible if their modified adjusted gross income is $75,000 or less, while married taxpayers filing jointly must have a modified adjusted gross income of $150,000 or less.

· Only primary residences are eligible for the federal tax credit, including new or existing single-family homes, townhouses, condominiums, manufactured homes, custom homes, and houseboats. Vacation homes and investment properties do not qualify.

· Purchases must be arm's-length transactions, meaning the seller cannot be the buyer's parent, grandparent, child, grandchild or spouse.

· Married people filing as such cannot claim the credit if either spouse has owned a primary residence within the last three years. However, unmarried joint purchasers may allocate the credit in any way they see fit, as long as it does not exceed the $8,000 maximum.

· The government will allow those who finance their purchases with a federally insured loan to apply their anticipated credit immediately toward closing costs or as additional down payment, rather than waiting until they file their 2009 taxes to receive the refund.

The full article can be read here.

Tax Credit Extention?

2009-08-28T13:48:00.000-07:00

The Washington Post reports that further work has been done on extending the current new home buyer tax credit.

Bills to extend the maximum $8,000 tax credit for first-time home buyers, which expires Nov. 30, are pending in both the U.S. House and the Senate.

Sen. Christopher J. Dodd, a Connecticut Democrat and chairman of the Senate Banking, Housing, and Urban Affairs Committee, is co-sponsor of a bill with Georgia Republican Sen. Johnny Isakson that would raise the credit amount to a maximum of $15,000.

Senate Majority Leader Harry M. Reid of Nevada favors an extension of the current credit. He was quoted by the Las Vegas Sun saying, "It's something we can get done."

Odds are that the credit will be extended and broadened to cover all buyers next year, but the chances of the amount increasing aren't as good, observers say.

Source: Washington Post Writers Group, Kenneth R. Harney (08/22/2009)

Appraisers to have local housing experience and can talks with Realtors

2009-08-28T13:47:00.000-07:00

Good news on the appraisal front. From the National Association of Realtors (NAR):

WASHINGTON (July 23, 2009) - The following is a statement by National Association of Realtors® President Charles McMillan:

"NAR and our 1.2 million members are pleased that the Federal Housing Finance Agency has instructed Fannie Mae and Freddie Mac to take action to clarify confusion over the new Home Valuation Code of Conduct for home appraisers implemented this past May.

"Our members were experiencing delayed and lost sales because of poor appraisals conducted often by inexperienced appraisers who were not familiar with the area. The ramifications were so great to our members and to the housing industry that I personally met with the New York Attorney General's office and with the head of the FHFA to share our concerns.

"In those meetings I shared an NAR survey that found 76 percent of our members, representing both buyers and sellers, had experienced an increase in appraisal time since the new HVCC rules were enacted. Similarly, 71 percent of Realtors® noted an increase in the use of appraisers who were not from the local area. These factors often adversely affected the sale or the sales process, which occasionally resulted in the loss of a sale or a homeowner's inability to refinance into today's lower rates. I expressed our serious concern in the meetings.

"We took this information, and our concerns, to those organizations responsible for the changes and we are pleased that they listened. Today Fannie Mae and Freddie Mac issued clear guidance on two very important points that we raised in our meetings. First, the guidance states that lenders should use appraisers who have clear experience in the geographic area. Second, it clarifies that appraisers are not prohibited from talking to real estate agents.

"NAR has asked Congress and the FHFA to immediately implement an 18-month moratorium on the new HVCC rules to further address unintended consequences of this new rule. We will continue to push for this, but are pleased that this first step was taken today."

The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

Pending home sales up

2009-08-05T14:53:00.000-07:00

The National Association of Realtor's is reporting 5 months of increased pending home sales. We are seeing similar activity in the West as well as the Sacramento region.

The report:

Pending home sales are up for the fifth consecutive month, the first time in six years for such a streak, according to NAR.

The Pending Home Sales Index,a forward-looking indicator based on contracts signed in June, rose 3.6 percent to 94.6 from an upwardly revised reading of 91.3 in May, and is 6.7 percent above June 2008 when it was 88.7. The last time there were five consecutive monthly gains was in July 2003.

Lawrence Yun, NAR chief economist, said a combination of positive market factors is fueling the gains. "Historically low mortgage interest rates, affordable home prices, and large selection are encouraging buyers who've been on the sidelines. Activity has been consistently much stronger for lower priced homes," he said.

"Because it may take as long as two months to close on a home after signing a contract, first-time buyers must act fairly soon to take advantage of the $8,000 tax credit because they must close on the sale by November 30," Yun said.

Here are the regional figures from the Pending Home Sales Index:

The Northeast rose 0.4 percent to 81.2 in June and is 5.8 percent above a year ago.

The Midwest increased 0.8 percent to 89.9 and is 11.6 percent above June 2008.

The index in the South jumped 7.1 percent to 100.7 in June and is 8.9 percent higher than a year ago.

In the West, the index rose 2.9 percent to 100.4 but is 0.2 percent below June 2008.

Source: NAR

Be Prepared - 45 and 60 day escrows

2009-08-05T14:46:00.000-07:00

Hello Neighbors,

As we continue to recover from these crazy times, the Feds are creating new legislation at an alarming rate. These new rules are rolling out a bit too quickly - and without a thorough analysis of the impact to the consumer.

Don't get me wrong - the goals are important, and the steps needed. We simply need to know how to manage in these new environments.

One immediate impact, probably 45 day purchase escrows. 60 days are even on the horizon.

These changes impact purchase loans AND re-finance loans.

Why?

The two most important changes were rolled out on May 1st and early in July.

The first is called the "HVCC" or Home Valuation Code of Conduct. It dictates how people in these industries work with Appraisers. In short, we can't talk to them!

The second is a change to the Truth-In-Lending laws. These laws force new disclosures to borrowers if there is a change of 1/8th of a point in APR. ...and a 3 day "hold" period for the analysis of that new disclosure.

What does this last item mean?

Let's say interest rates change between your lock and your close of escrow. NOTE THAT THEY ALWAYS WILL since rates are based on the daily US bond markets!! You could end up reviewing and reviewing changes and changes for days.

More review, more 3 day wait periods = longer escrows. Please plan accordingly!

- Jeff
http://www.EnglePropertiesOnline.com

WSJ reports more home owners "underwater"

2009-08-05T14:43:00.000-07:00

Today, the Wall Street Journal reported that almost a quarter of owner occupied single family homes have a larger mortgage than the home's value. If you are in need of a loan modification, feel free to contact me. Neighborly Realty can assist you to find the resources to help.

A report from Equifax and Moody's Economy.com shows that falling prices have left 24 percent of owner-occupied, single-family home owners with mortgage debt greater than the values of the residences.

At the end of this year's second quarter, more than 16 million Americans were in this predicament, an increase from 10 million a year earlier.

Almost 5 percent of owner-occupied dwellings are saddled with mortgage debt worth 150 percent of the property value. Nevada, where 40 percent of owner-occupied homes are "upside-down," is the hardest-hit state, followed by Arizona and California.

Source: Wall Street Journal, Nick Timiraos (08/05/09)

Jeff Engle
http://www.EnglePropertiesOnline.com

Sitting on the fence about buying a home?

2009-08-05T14:42:00.000-07:00

USA Today reported today:

Economic recovery is still a few months away, say economists surveyed by USA Today, but two-thirds of them think existing-home sales have bottomed out.

Both housing and automotive markets "have the potential to generate some quite large percentage increases," says Bill Cheney, chief economist at MFC Global Investment.

Overall, economists say unemployment won't peak until the first half of next year and credit markets will remain tight.

"I think (the recovery) is going to be anemic," says Allen Sinai, chief economist at Decision Economics. "I don't think consumers have the wherewithal to buy a lot of cars and a lot of houses."

Interesting comments lately from economists and the press. If your sitting on the fence now about buying, it may be time to jump. There are always a number of good homes for investors and first time home buyers coming on the market.

Jeff
http://www.englepropertiesonline.com

Loan Modification Video available

2009-07-24T11:47:00.000-07:00

Hi Neighbors,

Freddie Mac has produced a video that shows late-paying borrowers how gathering a few financial documents before calling a mortgage servicer can cut the time needed to determine their eligibility and process their application for a loan modification under the Making Home Affordable program or Freddie Mac's other workout initiatives.

Available in English and Spanish versions, the new Freddie Mac video, "Stop Foreclosure: Documents Your Lender Needs to Help You," can be seen at Freddie Mac's channel on YouTube at http://www.youtube.com/FreddieMacWeb. The two-minute video shows step-by-step which documents borrowers should have on hand when they call their servicer to discuss loan modifications. These documents can cut the time a servicer will need to understand the borrower's situation, determine his or her eligibility for a workout, and process the application.

The Loan Modification process can be complicated and it's important that you have all the tools and resources to do it successfully. Neighborly Realty is associated with a local loan modification service that guarantees results.

Jeff
Neighborly Realty
http://www.EnglePropertiesOnline.com

Warning signs that your home or investment property was once a Meth Lab

2009-07-24T11:46:00.000-07:00

Some of the homes my first time home buyers and investors have checked out look like they may have had a shady past. Sometimes it's angry prior owners or renters. Other times it may have been illegal activity. For Bank Owned REO homes, the Realtor representing the bank and the bank itself may not be aware of all the activities that occured at the home.

Melissa Dittman Tracey wrote on the 16th about '5 Signs Your Listing May Have Once Been a Meth Lab".

Melissa states that the NY TImes published an article about how Illnesses Afflict Homes with Criminal Past.

Things Melissa writes that you should watch out for:

1. Yellow discoloration on walls, drains, sinks and showers.

2. Blue discoloration on valves of propane tanks and fire extinguishers.

3. Fire detectors that are removed-or taped off.

4. Burning in your eyes, itchy throat, a metallic taste in your mouth, or breathing problems when in the home.

5. Strong odors that smell similar to materials often found in a garage, such as solvent and paint thinner, or odors of cat urine or ammonia.

The links above provide more details.

Jeff
Neighborly Realty
http://www.EnglePropertiesOnline.com

RadarLogic reports increase in home prices

2009-07-24T11:45:00.001-07:00

A followup to an earlier blog entry. RadarLogic is reporting a 6.9% increase in home prices for the Western Region that includes Sacramento, Denver, Las Vegas, San Francisco, Phoenix, San Jose and Seattle.

For year-over-year reports, Sacramento had a 21% decrease in home values from May of 2009 vs May of 2009, and a 30% decrease in home values for the prior year. This puts the Sacramento area at the 3rd highest trailing area in the nation over the past 2 and 5 years (only 2 other areas have been hit worse in the housing value change)

For month-to-month reports, Sacramento had a 2.7% increase in home values for May and a 1.5% increase in home values for April. There has also been a corresponding uptick in sales volume for the area. NAR chief economist reports 4 months of consistent gains for pending home sales.

The full May report can be found here.

Looking at comps on MLS, home prices have remained fairly stable over the past 6 months for Placer and Sacramento counties.

In addition, the Wall Street Journal reports that Economists see signs of Housing Stabilization. James Hagerty writes:

Independent housing economist Tom Lawler, who has pointed out frequently that his dog Kita could have qualified for a mortgage at the height of the boom - despite having a low "Fido Score" - is arguing now that prices for low- and mid-range homes are stabilizing.

He says they will continue to do so as the foreclosure rate declines for middle-income home owners. Lawler attributes that to the "stickiness" of home prices, which he defines as slow to adjust downward because stable home owners don't need or want to sell immediately.

In previous downturns, driven by regional unemployment, home prices fell slowly, Lawler says. This time he argues that things happened a lot faster because banks that owned foreclosed properties sold them aggressively. That forced prices down much faster than they fell in previous downturns.

Where are you looking for your new home?

2009-07-24T11:44:00.001-07:00

You may have noticed that print ads in newspapers such as the Sacramento Bee and hard-copy magazines have virtually dried up over the past 2 or 3 years. A recent National Association of Realtors report states that nearly 90% of all home research is now done online. This applies to both rental homes as well as home purchases. Virtually all of the clients I work with use the internet tools I provide to keep up-to-date with new and updated listings.

Define and Refine your home search on EnglePropertiesOnline.com.

Popular tools for the area is the real estate link at SacBee.com & click on HOMES in the top menu bar. Realtor.com, Zillow.com, Trulia.com, Redfin.com, the Sacramento Craigslist.org site are all good places to look, with 99.9% of the homes coming from the same MLS pool that you get from EnglePropertiesOnline.com. These and other links can be found at my Resources Page.

Where do YOU search for homes?

Jeff
EnglePropertiesOnline.com
http://www.EnglePropertiesOnline.com

New tool to compare mortgage costs

2009-07-24T11:43:00.000-07:00

Yesterday, Zillow announced a True Cost tool tauted to allow borrowers to make an apples-to-apples comparison of custom quotes. Mary Miller - director of product management writes:

What is True Cost?
True Cost is the sum total borrowers will pay in interest and fees during the expected time they plan to keep the loan. We call it True Cost, because it is the amount of money borrowers will never recoup. It does not include the principal accumulated, since principal is not an outright cost, but rather, it is equity that borrowers will likely get back when they sell their homes. However, we display the amount of accumulated principal as an additional number to consider, because principal will grow at varying rates depending on loan program.

Why is it important to look at a True Cost calculation?
When comparing mortgage quotes, most borrowers focus on two factors: interest rate and upfront fees. But it's difficult to determine whether it makes more sense to choose a loan with a lower rate and higher fees, or a loan with higher fees and a lower rate. The best combination depends on how long borrowers will have the loan.

For example, a lower rate with higher upfront fees may make the most sense if borrowers keep the loan for 20 years, but low fees with a higher rate may be a better way to go if they are only staying in the home for 4 years.

True Cost calculates these tradeoffs between rate and fees and does the math for borrowers. It helps them find the least expensive loan for their expected timeframe based on rate and fees.

How does it work?
After submitting an anonymous loan request on Zillow Mortgage Marketplace, borrowers view custom quotes received from lenders on the Quotes Received page. They can use the True Cost feature by selecting how long they plan to stay in their home, and then Zillow calculates how much they will pay in interest and fees over that time period. Borrowers can click the top of the True Cost column to sort the least expensive loans for the given time period to the top of the list. They can also adjust the time drop-down to see how costs will change if they end up keeping the loan longer or shorter than they expect.

Borrowers should use True Cost as a starting point to find the least expensive loans, then use the monthly payment and fees filter to remove quotes they cannot afford. Once they narrow down to a few quotes, they can check out the lender profiles, reviews, and ratings, and then select a couple of lenders to contact.

It's received good reviews! So try it out. I'll add it to my resources page. The tool is found at the Zillow Mortgage Marketplace.

Jeff
Neighborly Realty
Http://www.EnglePropertiesOnline.com

A lesson learned...

2009-07-24T11:42:00.000-07:00

Hi Neighbors,

Today, the Sacramento Bee has an excellent article about both the benefits of purchasing a home as an investment as well as the emotional and personal side of going through a foreclosure. All from the point of view of Sherie Coelho who has done both in the past decade.

As an investor, Sherie used $30,000 from her late mother and used that to purchase a home in south Sacramento for $115,000.

To make the story more poignant, she lost her home in 1997 in a foreclosure action. It's a great read, giving a glimpse at the human side of investing and foreclosure. Many of our neighbors have gone through the same process in Sacramento and Placer counties.

I hope you enjoy it as much as I did,

Jeff
Neighborly Realty
http://www.EnglePropertiesOnline.com

Home Prices rise for 3rd month in a row

2009-07-24T11:40:00.002-07:00

National news has been reporting 3 months of increasing home prices in the US. The same can be said for Northern California. For example, the Modesto Bee reported that the median home price in Stanislaus County has risen $4,000 to $139,000 over the past 2 months.

Craig Lewis, president of Prudential California Realty said, "Any house in decent condition priced below $250,000 is getting multiple purchase offers. Some homes have had more than 40 people competing to buy."

Sacramento and Placer counties have also posted similar gains, and as I've written before, competition is consistently fierce in the under $250,000 price point where both first time home buyers as well as investors are competing for homes. Better homes that are priced correctly usually sell in the first 30 days - often less.

For more information about buying your first home or investing, please contact me.

Jeff
Neighborly Realty
http://www.englepropertiesonline.com

Shadow Inventory of Homes?

2009-07-24T11:40:00.001-07:00

Nick Timiraos of the Wall Street Journal recently wrote about the possible positive signs in the California Real Estate market:

ZipRealty reported a 56% decrease in San Bernadino county to a level last seen in 10/05. San Francisco area dropped to 20,000 listing which was last seen in 2006. Similarly Orange County dropped to a level last seen in 2006 as well.

However,

Notices of Default (the first step in the foreclosure process) rose by 10% over the previous year in California according to ForeclosureRadar.

Trustee Sales (the 2nd step of the process) actually FELL by 15% in June.

Nick mentions that California has a new moritoriam on foreclosures, as long as a bank has a process in place for loan modification they are excempt from the moritoriam.

There is no doubt that we have seen a LONG dry spell in seeing many new REO homes in most areas of greater Sacramento. Especially in the under $250,000 price range.

See the full blog entry here.

Renting vs. Buyer

2009-07-24T11:39:00.000-07:00

This article appeared on MSNBC. Especially in the past year, in the Sacramento - Roseville area, home prices have dropped to the most affordable level in decades. There are lots of homes in the area that allow for renters to move into their home for about the same or even less than they are paying for rent. With the $8,000 federal tax credit PLUS many energy credits and the FHA Energy Efficient Mortgage (EEM) available this is a perfect time to investigate owning your own home.

Many renters debating whether to buy or rent their homes are realizing that the increase in affordability, coupled with low interest rates and tax incentives, are tipping the scales toward homeownership.

KEEP THIS IN MIND

An analysis of 45 metro areas by the Associated Press found that the gap between the monthly mortgage payment on a median-priced home and the median rent has decreased from $777 a month to just $221 in the past three years.

In markets across the nation, including the inland areas of California, prices have declined by nearly 40 percent, resulting in rising sales as first-time buyers use a federal tax credit that covers 10 percent of the home price, up to $8,000.

Favorably priced foreclosures in some markets are drawing multiple bids. Many housing experts believe that as supply and demand even out, home prices will eventually begin to rise, but for now most buyers are having little difficulty finding affordable homes.

Qualified first-time buyers may be eligible for loans insured by the Veterans Administration (VA), which does not require a down payment. Another loan product gaining popularity are those insured by the Federal Housing Administration (FHA), which require only a down payment of 3.5 percent.

It is important that potential home buyers not only look at the monthly mortgage payment compared with their monthly rent payment, but that they also consider other costs associated with homeownership. These can include homeowner association (HOA) fees, insurance, maintenance, and utilities, which most renters are not responsible for paying.

The complete article is at MSNBC.

New Mortgage Rules start July 30th

2009-07-24T11:37:00.000-07:00

Hi Neighbors,

New federal rules require that consumers receive initial disclosures of the estimated mortgage costs within 3 business days of a loan application. Lenders cannot collect any fees prior to the consumer receiving loan-cost disclosures. This includes fees for appraisal, credit, and other charges at the time of application. Consumers must receive the truth-in-lending disclosure and an annual percentage rate (APR) calculation of the loan costs prior to any fees being collected.

Lenders also have to provide a copy of the real estate appraisal at least 3 business days prior to closing. Current law states that consumers can request and obtain a copy of the appraisal, but according to the California Association of Realtors, many home buyers are not aware they can do this.

In addition - quickie closings of loans are prohibited by requiring a 7 day waiting period after applicants are handed their early disclosures or the disclosures are mailed. This gives the applicants a week to think about the transaction and to decide whether it is right for them. Final truth-in-lending disclosures are required 3 business days before closing.

More information can be found here.

Jeff - Neighborly Realty

http://www.EnglePropertiesOnline.com

Placer County Tax Bill search

2009-07-24T11:36:00.000-07:00

Hi Neighbors,

I wanted to remind those folks using the link page on my website to look up the mello-roos and special levy taxes for Placer County that this information will not be loaded onto the county website until September. In the meantime, you can call the tax office to get that information at (530) 889-4120. You will need to provide the APN# to get the information.

Also, this is the month that you should get a notice of re-appraisal if your taxes have been reduced in the past. If you have questions or need help to determine this, give me a call.

Jeff (916) 303-0257

Google maps updated to help you find homes

2009-07-24T11:35:00.000-07:00

Another helpful tool from the folks at Google as reported at the Media Daily Online.

Google says it has improved its search capabilities for real estate shoppers.

Its new landing page allows buyers to link directly to property and rental listings using general screens like "homes with pools in Wilmington, Del." The 10 most relevant listings are shown with pins. Its street view lets buyers check out what the neighborhood looks like.

Mike Blumenthal, a blogger, says so far these additions have been largely ignored because Google hasn't promoted them. "It's indicative of Google wanting to get into real estate, but at the moment the tool is buried deep in Maps," he says.

Google Maps continues to trail Yahoo Real Estate, Realtor.com and Trulia.com

Hpe this helps your searches,

Jeff

American Clean Energy and Security Act

2009-07-24T11:34:00.000-07:00

As always at Neighborly, we keep an ear and eye out for changes and updates to help us live green and have a more sustainable environment. H.R. 2454 recently passed and the California Association of Realtors reported a summary of the bill that has important information for home owners retrofitting homes to be more energy efficient. Some important points from C.A.R.:

In the week following the passage of H.R. 2454, the American Clean Energy and Security Act, the Internet and talk radio were abuzz with erroneous reports of mandatory point-of-sale retrofits, audit and labeling, and other misinformation. This misinformation was due, in part, to the inability of Congress to post a current draft of the bill on the Web in a timely manner, due to a last-minute, 300-plus pages amendment. There also was a well-orchestrated, intentional scare campaign by opponents of the legislation.
C.A.R. and NAR had opposed H.R. 2454 specifically because of a mandatory labeling provision included in the original bill. NAR was successful in procuring a provision in the last-minute amendment that ensured the labeling requirement would only apply to new construction and not to existing homes. Additionally, the bill does not include any retrofit mandates at point-of-sale. What the bill does do is provide financial incentives, such as grants, loans, loan guarantees, and/or mortgage interest rate buy-downs, for property owners who voluntarily make energy efficiency improvements. As these voluntary improvements would be incentivized by federal tax dollars, the energy efficiency of the property would require an audit before and after the improvement.

The legislation will create a national building code standard that states will have to adopt or the federal government will set and enforce the state's building codes. Although California's code already would be in compliance with the provisions of the legislation, C.A.R. historically has opposed federal preemption of state laws. Both C.A.R. and NAR will continue to work with the Senate to amend this section of the bill.
The issue of energy conservation and climate change continues to be a hot-button issue for many Americans and often splits along party lines. While H.R. 2454 contained more than 1,400 pages, only a small portion of the bill directly impacted real estate. As a result, legislators easily can overlook critical real estate provisions and instead focus on headline-grabbing issues such as factory emissions and foreign oil dependency. C.A.R., NAR, and a strong grass roots effort by our members ensured that Congress recognized and addressed pitfalls within the bill that would have harmed the real estate industry. Because of NAR's efforts, the final piece of legislation will not force existing homes to compete with newly constructed homes by mandating energy efficiency labeling, labeling will be excluded from the home buying process, and property owners who voluntarily choose to improve the energy efficiency of their property will have the financial incentives to do so.

Home Foreclosures Expected to Rise

2009-07-24T11:33:00.000-07:00

We've heard it before, and I've written about these report earlier and here it is again. The Chicago Tribune is reporting another wave of foreclosures to come about again as early as this summer. It cites:

Loan defaults have surged due to the troubled economy and the unemployement rates
Expiring of government and self imposed moratoriams

Home sales have been steadying nationally, the report further states, but rising foreclosures will depress home values.

Of primary concern is at what rate will the banks release these properties for re-sale. Currently the number of REO homes available less than the demand, so some increase in REO volume won't change the home values for our area. Also 80,000 default borrowers have had loan modification according to Chase and 45,000 according to Bank of America. But loan defaults for the first quarter of 2009 are reported at 844,000.

Read the full story here.

Home Buyer Report

2009-07-24T11:31:00.000-07:00

The California Association of Realtors recently published results of their 2009 Survey of California Home buyers. Key points include

68% of buyers indicated that price decreases motivated them to buy a home and 39% reported that low interest rates helped them move to a better location.
Housing affordability in California created an opportunity for home buyers helping to rebound home sales during 2008 and early 2009.
49% of all buyers bought traditionalmarket sale (not REO or Short Sale). 38% bought an REO (bank owned). Only 13% bought short sale property citing difficulties of closing shot sales. (Note that short sales comprise the largest number of homes on the market in Placer County yet a much smaller percentage of actual market sales).
Home buyers purchasing REO properties experienced the greatest difficulty of obtaining financing compared with a more traditional transaction.

More details at the Sacramento Bee website.

Jeff

First Time Home Buyer Credit

2009-07-24T11:28:00.000-07:00

The good news is that congress is looking at extending or expanding the First Time Home Buyer Tax Credit.

The bad news is that passage of any new legislation is highly uncertain according to Robert Freeman Senior Editor of Realtor Magazine. He further states that while the legislation has broad support, with the number of bills needing work during this next legislative cycle it may be difficult for it to pass in time to have any type of smooth transition.

He further states that "with Congress, you never know what's going to happen."
What you do have now is the $8,000 tax credit through November of this year.
Jeff

California State New Home tax credit ends

2009-07-24T11:27:00.000-07:00

After 12,000 applications were received California stopped accepting applications for the first time home buyer credit for new homes. Funding was for $100 million or 10,000 applications. 12,000 applications were accepted because there were some duplications and expectations that some of the applicants may not qualify.

Applications will be funded on a first-come first-serve basis.
The program was aimed at promoting sales of new homes.

Home Owner Tip: Programmable Thermostats

2009-07-02T13:18:00.000-07:00

Programmable Thermostats can save about $180 a year by utilizing the automatic settings built in to the device according to the Energy Star website. For most HVAC (Heating, Ventilation and Air Conditioning) units it's easy to replace the thermostat with one that is programmable for between $50 and $100 (see Sears.com as an example). Besides saving you money, they can have your home warmed up or cooled off on your schedule.

Why does it save money reason #1? Because if your like me, you often forget to turn the manual thermosat at the right temperature in a timely manner.

Another good article about programmable thermostats can be found here. In this article, the author states "Research has shown that for every degree you can raise the thermostat setting in summer or lower it in winter, you can save anywhere from 2 to 10% on energy costs (the number varies greatly depending on the climate, the overall energy efficiency of your home and other factors)."

Why does it save money reason#2?You can set the thermostat a couple of degrees warmer in the summer or cooler in the winter and save$$$$

Have a cool 4th of July

Jeff

Mortgage Applications Decrease - Pending Sales Increase

2009-07-02T12:59:00.000-07:00

RISMEDIA is reporting that Mortgage applications have decreased 18.9% in the US according to the Mortgage Banker's Association (MBA) for the week ending June 26th. The biggest driver is a reduction in home refinances. The complete article can be read here.

On the flip side, Pending home sales increased for the 4th straight month - read the complete article here. May increased .1% over April. However, issues regarding the new appraisal process (see my earlier blog this week) and other issues may be slowing down the closing process.

The article also points out that housing affordability is still at an all-time high with many more people qualified to own entry level homes than just about anytime in recent history, stating " A median-income family, earning $60,800, could afford a home costing $296,700 in May with a 20 percent downpayment, assuming 25 percent of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small downpayments are roughly 80 percent of what a median-income family can afford. The affordable price was significantly higher than the median existing single-family home price in May, which was $172,900."

Bottom line: while interest rates are slowing down the refinance market a bit, sales are still strong especially in the under $200,000 price range where many first time home buyers and investors are looking.

Jeff

New Re-Fi Rules

2009-07-02T12:41:00.001-07:00

Hello Neighbors!

GREAT NEWS from our friends at CNN and CNNMoney! Thanks CNN Teams!

Government driven changes to the home financing markets continue to roll out, and we couldn't be happier. Home owners can now refinance up to 125% of their home values. Fantastic news for owners underwater due to the huge market shifts we've seen since 2006.

Don't let these rates pass you buy. Although they are no longer in the 4%s, we are still getting great rates in the 5%s. Those of you with adjustable or very bad 2nds can now take advantage of locking into the new lower rates even if we couldn't help you just a month ago!

If you need help with a re-fi, CALL! You can start with Jeff at (916) 303-0257

The full article from CNN is below:

NEW YORK (CNNMoney.com) -- The Obama administration is widening its mortgage refinancing program to allow more borrowers hit hard by falling home prices to take part.

Borrowers whose loans are now worth up to 125% of their home's value are now eligible to refinance their homes under the Obama foreclosure prevention plan announced in February. Previously, the limit was 105%.

"The president's Making Home Affordable plan is already helping far more than any previous foreclosure initiative and with today's announcement we will extend its reach still further," said Donovan.

How many more people will be drawn to the program now, however, remains a question, especially since mortgage rates are on the rise. Administration officials do not have an estimate.

Refinancings Slow to Ramp Up

Some 20,000 loans have been refinanced so far, according to the Treasury Department.

The initiative waives the requirement that homeowners have at least 20% equity in their home, allowing them to take advantage of today's lower rates. Homeowners must still meet other criteria, including being current on their payments and having loans that are owned or backed by Fannie Mae or Freddie Mac. The administration has set up a Web site, www.makinghomeaffordable.gov, with more information.

Wednesday's expansion means those with homes worth $200,000 and mortgages as large as $250,000 can still qualify. Previously, these borrowers could not have loans exceeding $210,000.

The program, however, has been slow to ramp up. Borrowers have complained that banks are not approving their applications. The Mortgage Bankers Association last week slashed its 2009 forecast of originations because fewer refinancings were being done than they originally expected. The group said only 13,000 were done in the three months after the plan's launch

The administration has projected that 4 million to 5 million mortgage borrowers would be helped. A Treasury official Tuesday said that the figure applied to those who would be eligible, not necessarily those who would participate.

Administration officials do not have an updated figure of how many people would be eligible or participate now that the criteria has been widened.

The recent uptick in mortgage prices has blunted the plan's benefit, as well. The Federal Reserve has been buying mortgage-backed securities and long-term Treasurys in an effort to lower rates.

It worked for a while. Rates hit a low of 4.84% on April 28, but are now at 5.45%, according to HSH Associates.

Since mortgage rates have been in the 6% range in recent years, refinancing to the mid-5% range may not be worth it, said Keith Gumbinger, vice president at HSH Associates. A homeowner with a $200,000 mortgage at 6% would see a savings of about $64 a month if he refinanced at 5.5%, and that's before closing costs.

"Are interest rates low enough to warrant getting into the process?" he said.

The administration's announcement comes on the same day as an industry group reported that the demand for refinancing dropped 30% last week. In addition to higher rates, rising unemployment is contributing to the decline.

Borrowers with Freddie Mac loans who refinance through their current servicer can apply right away, but those who want to go through a different lender must wait until Oct. 1. Those with Fannie Mae mortgages must use their current lenders and wait until Sept. 1.

A second part of the program lets eligible borrowers who are in default -- or at risk -- lower their monthly payments to no more than 31% of their pre-tax income. This can help those who are not making as much at their jobs or who have monthly payments they can't handle. Homeowners, servicers and mortgage investors can receive incentives to entice them to participate in the program.

Banks have extended more than 200,000 trial modification offers, according to the Treasury Department. Homeowners must make three monthly payments on time before the modification is made permanent.

Call to start the re-fi process now!

Jeff

Making Sense of the Market (July 1st update)

2009-07-01T15:35:00.000-07:00

Hi Neighbors!

I've posted a blog on ActiveRain with graphics. Go there for the rest of the story!

June 2009 Placer County Market Update

Hi Neighbors, it's time for the monthly market snapshot, Jeff's style.

What's for sale?

Today, July 1st sees 2,041 homes on the market – a slight decrease from June 1st's 2053. In the under $200,000 range there are 172 homes on the market, a slight increase from 166 at the beginning of last month.

REO or Bank Owned homes comprise 8% of the total market and Short Sales 42%. The remaining portion are 'non-distressed' sales.

What's Selling (Pending overall market)

Pending sales show a different story. Of the 563 homes in Pending Status, 166 or 29% are REO and 136 or 24% are Short Sales.

Again, we continue to see a disproportionate amount of REO pending vs. REO on the market. REO is 7% of the overall active market, yet 29% of the pending sales. 24% of the pending sales were Short Sales.

What's Sold (Sold overall market)

Sales for June are slightly higher than May coming in at 384 vs. 356. 34% of the sales were REO sales and 20% were Short Sales.

Under $200,000 Market Analysis for Placer County

As of July 1st 2009, 172 homes are for sale in the under $200,000 price range. A slight increase from the 166 for sale on June 1st. This accounts for 8% of the overall market. The under $200,000 homes account for 15% of the pending sales and 13% of the sold market.

While REO homes sold account for 34% overall, 51% of the under $200,000 market were bank owned.

Short Sales account for 41% of the overall market, 66% of the homes under $200,000 are short sales. Short sales account for 19% of the sold market, and 37% of the homes sold under $200,000.

Bottom Line

The saga continues with REO homes accounting for a disproportionate percentage of the SOLD and PENDING market; especially in the under $200,000 price range. These percentages continue to remain stable with multiple offers and quick sales in the investor and first time home buyer price range.

Selllers: Price it RIGHT and SELL

2009-07-01T13:23:00.003-07:00

I wanted to share these thoughts from Jim - our broker at Neighborly Realty. He's got two key points - first he has a listing in the sweet spot of the market right now - the under $250k price range that both investors as well as first time home buyers are scrambling for. Secondly (and in my mind most importantly) the home was priced correctly. Even higher priced homes are selling if they are priced right for the market (something we as real estate agents can't control).

WOW.

You use this site to keep up on the latest market activities. No spin, just good solid data.

Here is an example of how insane the markets are right now, from one of our own listings (in Marysville, CA).

We listed a house in Marysville for $79,800 at 11:00pm on Saturday the 20th. Within 10 hours, we had 3 written offers. We had more verbally promised offers, but those don't count (unless we see it in writing, it doesn't exist).

Amazing market conditions if you are selling - and IF you are at the right price point.

Before going into escrow (roughly 7 days after listing) we had 13 very solid offers. Some were all cash. Most were above list price. 13 written offers.

Why?

Competition in the entry-level housing markets is incredible. Foreclosures continue to dry up. Short Sales continue to take forever - although some lenders are getting better.

Now What?

If you are a family and need to sell - we can get it done for you, and quickly AS LONG AS YOU PRICE ACCORDINGLY and you are in the "entry-level" price points. If you are at the very top of the high end market segments... we may not be able to sell. Those purchase dollars are still missing in action. Sorry Jan and Dave!

Wild times indeed.

Thanks Jim for sharing the insights,

Jeff

Home appraisals may get easier

2009-07-01T12:55:00.000-07:00

Recently new legistlation went into effect that put additional regulations on home appraisals. These regulations have slowed down appraisals in some cases in this area. An example in point is a recent appraisal for a home sold in Sacramento where the appraisal was done out of a LA office! This appraisal clearly did not know the market for the neighborhoods in this area, and it forced the team to get another appraisal and postpone closing.

The American Banker recently posted this information:

U.S. Reps. Travis Childers (D-Miss.) and Gary Miller (R-Calif.) have teamed up to champion a bill that would put a moratorium on the new Home Mortgage Valuation Code of Conduct.

HVCC is an agreement between Fannie Mae, Freddie Mac, and the New York State Attorney General that went into effect earlier this year with the aim of improving the accuracy of appraisals, although it's come under criticism in the real estate industry for causing its own problems.

Although the agreement involves the New York AG, it's being applied nationwide to all the mortgages handled by Fannie Mae and Freddie Mac.

The bipartisan legislation directs the Federal Housing Finance Agency, which is the conservator of the two secondary mortgage market companies, to suspend the code for 18 months.

Among other things, the code has been criticized by the National Association of Mortgage Brokers for delaying residential property closings and costing its members business at a critical time. Group members also are up in arms about having to pay high fees to appraisal management firms.

[Editor's note: The NATIONAL ASSOCIATION OF REALTORS® has communicated its own concerns over HVCC to the New York State Attorney General and federal lawmakers and policymakers.]

Good news to get this straightened out! Fair appraisals are critical for both the buyer and the seller, but the appraiser MUST know the local market.

Jeff

Government ReFi Program Expands

2009-07-01T10:59:00.000-07:00

Government Refinance Plan updated 7/1/09

Great news for those needing to refinance. CNN reports that borrows whose loans are worth up to 125% of their home's values are now eligible to refinance their homes under the Obama foreclosure prevention plan announced in February. Prior to this the limit was 105%
The article continues on to state that one if five borrowers are now underwater, with parts of California and Florida losing more than 50% of their value, according to Zillow.com.

Loan Modification Program

For those individuals who still don't qualify for the refinance program because of the value of their home you may want to consider a Loan Modification Program. This is a program where you hire a team to represent you with your mortgage company to adjust the amount you owe and/or the interest rate so you can keep your home. This approach is much more effective than you trying to figure out what your mortgage company wants in order to perform the Loan Modification. Neighborly Realty has teamed up with a local and reputable company to help you with the loan modification process at a reduced rate.

Give me a call for additional information (Jeff @ 916 303-0257 or Jeff@NeighborlyRealty.com)

2009-06-26T15:52:00.000-07:00

The Field Check Group out of San Diego publishes updates on the San Diego market. While it is SD specific, much of the information also applies to California in general and the Sacramento Region specifically. The full blog can be read here.

He warns that we may be looking at a 'false bottom' in the Real Estate market, further stating "In my April 30th report entitled ‘Housing (bottom) Update' I highlighted the reasons why some of the hardest hit MSA's might do well over the near-to-mid term:

artificially depressed supply through gov't and bank-specific foreclosure moratoria;
artificially low rates and temporary tax benefit;
foreclosure mix-shift creating an artificial skew higher in reported median and average prices;
And fleeting seasonal demand. "

He further states:

But before you get too excited about the prospects of San Diego real estate and put in an order for a pool of REO's to flip or notes to work out, a wave of foreclosures is coming.

In the past three months alone, Notice-of-Trustee Sales are back at near peak levels of 2500 per month. An NTS is the second stage of foreclosure that comes 14-60 days prior to the property being taken to the courthouse and sold.

With most loss mit and mortgage mod plans known to servicers now, there is little reason to file an NTS unless in fact the property has a good change of going to foreclosure. With San Diego sales at about 3k per month, 2500 NTS per month could cause a serious supply/demand imbalance that must be absorbed for this market to become and remain healthy. This will be especially difficult considering that the peak sales season ends in August and Notice-of-Defaults (two charts down) that feed NTS, have also surged recently. Judging by the flow, recent NODs will feed foreclosures perhaps through the end of the year - that is as far out as we can see.

This NTS surge is especially troubling considering that foreclosure related supply only presently makes up approx 15% to 20% of total housing supply and Ma and Pay Organic homeowner make up the rest. With 3000 monthly sales and supply coming at a rate of 75% of total sales, that does not leave a lot of demand for organic sellers. First timers and investor can't carry this entire market on their own. Organic sellers must be able to sell and re-buy in order to keep demand stable and strong.

Good reading if you like statistics. Check out the full article if you want more information.
Jeff

LA Times reporting Recovery to be evident by 2010

2009-06-26T15:51:00.000-07:00

Hi Neighbors,

A few tidbits in the news.

Chapman University economists are stating that the California economy recovery will be starting during the next 2 quarters of 2009, but will be slugish and employment will continue to fall for the rest of this year and on into the beginning of next year. The entire article is available here.

Locally, Jim Wasserman reports that:

Sacramento County showed one of the biggest improvements regionally, with prices for existing homes alone climbing a dramatically higher 9.4 percent - from $160,000 in March and April to $175,000 in May.

In another article from Jim, he wrote that there were 222 new home starts for the Sacramento - Placer - Yolo and El Dorado counties for May - down slightly from April. We are on track to have the lowest production of houses in the past 20 years.

Remember, we are at a housing price point of about 10 years ago (not considering inflation). Homes are truly a bargain right now.

Several economists have warned that because home starts are so slow and the time frames for ramp up are so great once the economy starts rebounding, there will be severe shortages for new homes.

Jeff

Recovery?

2009-06-26T15:49:00.000-07:00

Hello Neighbors,

The Wall Street Journal reported that there are signs of a California housing recovery. For those of us in the Sacramento Region we've seen multiple offers "in the lower end of the market" for some time now, especially bank owned homes but also for private and flipped homes. Below is a synopsis thanks to NAR.

The Wall Street Journal

California housing market shows pockets of recoveryA surge in home sales that started in some of California's more affordable inland areas has begun to spread to several more expensive coastal areas, another indicator that the state's real estate market may be in recovery mode. MAKING SENSE OF THE STORY FOR CONSUMERSMany homes in the lower end of the market are receiving multiple offers, with some prospective buyers bidding well above asking prices. Inventory levels for homes priced under $500,000 stood at 3.2 months in May 2009, compared with 9.4 months in May 2008.

Some buyers, especially those in historically higher-priced markets such as the San Francisco Bay Area, are newly optimistic about buying homes and are realizing that the combination of low interest rates, favorable home prices, and first-time home buyer tax credits may not realign for many years.

Some housing economists caution against interpreting signs of increased sales activity as meaning the market has bottomed. Interest rates on 30-year, fixed-rate prime mortgages have risen above 5 percent in recent weeks and could continue to increase as fears of inflation impact interest rates. Additionally, the federal tax credit for first-time home buyers is scheduled to end Nov. 30, which may remove the incentive to purchase.

Although the median price in the state has risen for four consecutive months, prices in some higher-income neighborhoods still are declining. Some agents say that declining prices in these neighborhoods are a reflection of borrowers' problems getting jumbo mortgages to make purchases.

Jeff

Loan Modification Assistance

2009-06-26T15:47:00.000-07:00

USA Today writes that getting help through the Obama administration's mortgage-assistance program has been an impossible challenge for thousands of applicants.

Home owners who apply for mortgage modifications can expect to wait 45 to 60 days before hearing anything from their mortgage service company, according to a report from foreclosure-prevention counselor NeighborWorks America.

Here is some other basic information:

The refinancing option is available only for certain loans owned or securitized by Fannie Mae and Freddie Mac. Home owners should contact their lender to see if they're eligible. Borrowers who are delinquent on their mortgage will not qualify.
To be eligible for a modification, borrowers must live in their property and be able to pay the mortgage after the modification. The first mortgage may not exceed 105 percent of the current market value of the property. The unpaid principal balance must be equal to or less than $729,750 for one-unit properties. The loan must have originated before Jan. 1, 2009. A borrower must have a payment (including taxes, insurance and homeowners association dues) that is more than 31 percent of the borrower's gross monthly income.
Consumers can find more information about these programs at FinancialStability.gov.

Here at Neighborly Realty we can help! We offer Loan Modification assistance through a LOCAL and reputable company with a Neighborly Discount. Contact me if you would like to talk about it more. Search my blog for "Loan Modificaton" for more information.

Jeff

Sacramento Identified as one of the most Courteous Cities

2009-06-26T15:46:00.000-07:00

Hi Neighbors,

I don't know if it will help home prices or bring in some stabilization dollars or not, but AutoVantage car club reports SACRAMENTO as one of the most courteous cities in the U.S. We were just behind Portland Oregon as #1, Cleaveland as #2, and Baltimore as #3.

It must be all the San Francisco drivers who try to drive us off the road on Highway 80, or the Los Angeles drivers on I-5 that makes it seem like all the drivers are CRAZY.

It's sure to attract more folks to the area to know that they will have courteous neighbors.

Jeff

Fed Interest Rates Unchanged

2009-06-26T15:45:00.000-07:00

The Fed is continuing it's policy to keep the federal funds rate at .25 percent or less. In it's statement on June 24th, they continue "... to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period."

Two special quotes brought forward from the California Association of Realtors include:

"Information received since the Federal Open Market Committee met in April suggests that the pace of economic contraction is slowing," the Fed said in a prepared statement. "Conditions in financial markets have generally improved in recent months. Household spending has shown further signs of stabilizing but remains constrained by ongoing job losses, lower housing wealth, and tight credit. Businesses are cutting back on fixed investment and staffing but appear to be making progress in bringing inventory stocks into better alignment with sales.

"Although economic activity is likely to remain weak for a time, the Committee continues to anticipate that policy actions to stabilize financial markets and institutions, fiscal and monetary stimulus, and market forces will contribute to a gradual resumption of sustainable economic growth in a context of price stability.

Tired of hearing that we are 'stabilizing', but may not be there yet? Remember, we won't know we are in a 'recovery' situation until 6 or more months into it.

Jeff

$100M California Tax Credit 95% Used

2009-06-26T15:43:00.000-07:00

Another update from the California Association of Realtors notifying us that the California Tax Credit for New Home Buyers purchasing a home that has not been lived in before is almost at it's $100 Million limit. To date nearly $95 Million has been 'claimed'. This amount includes some amount of duplicates, however it is going fast! If you bought and expected to get a tax credit under this program you better make sure that your paperwork is in. If your looking, now's the time to buy while you can still take advantage of this great program.

$100 million new home tax credit nearly gone

The Franchise Tax Board (FTB) recently announced that the $100 million allocated by the state in new home tax credits will soon be gone. The FTB has received more than 9,800 applications, claiming nearly $95 million as of June 17, and plans to accept 12,000 applications to allow for duplicates, revisions, or invalid applications.

This tax credit is available for qualified buyers who, on or after March 1, 2009, and before March 1, 2010, purchase a qualified principal residence that has never been occupied. The buyer must reside in the new home for a minimum of two years immediately following the purchase date. To apply, an application for new home credit must be completed by the buyer and seller within one week after the close of escrow and faxed by the escrow person to the FTB at (916) 845-9754.

The FTB will continue to report the certificates issued on a weekly basis until the full $100 million has been allocated. FTB expects to complete processing all certificates in August. Each applicant will receive a notification indicating the amount of credit allocated or denied.

CLICK HERE to go direct to the California State webpage for the Tax Credit.

Jeff

Legistration introduced to increase/improve home buyer tax credits

2009-06-22T12:11:00.001-07:00

An article in USA today reports:

A first-time home buyer tax credit of up to $8,000 has helped to move housing inventory during an otherwise sluggish real estate cycle. Now both legislators and the business community are hoping to build on the incentive's success by expanding it.

A number of bills have been introduced in the House and the Senate that lobby for an expansion of the measure. Among the proposed changes:

Setting a new cap of $15,000.
Extending the tax break into mid-2010.
Making the benefit available to all home buyers, not just first-timers.
Offering a separate tax credit to $3,000 for borrowers who refinance.
Thanks to Stephanie Armour from USA today and NAR for sharing this information

This could be a real boost in the arm for home buyers waiting on the sideline, and those who have had challenges getting through the competition many face in the under $200,000 REO Bank Owned market as well as those of you who are placing offers on short sales.

Jeff

http://www.EnglePropertiesOnline.com

Real Estate Resources from Neighborly Realty

2009-06-22T08:45:00.001-07:00

Hi Neighbors,

Where to go to get General Information about the Market

If you are interested in tracking the homes for sale in a specific area - such as around your home, go to EnglePropertiesOnline and the first tab on the left navigation bar "Find a Home". Then click on "Advanced Search" at the bottom of the screen. There you can enter the address of your home, or the address of a specific home in the area you are interested in. You can discontinue the report at any time - or change the search parameters.

Also on Engle Blog and Resources, you can click on the tab to get information about market conditions as well as common links to important research web sites such as:

Get Pre-Qualified - in almost all cases now, sellers require that you be pre-qualified for a loan or have proof of cash at the time you submit your offer

Search tools such as Trulia, Redfin, Craiglist and some common searches such as a Western Placer and Citrus Heights Bank-Owned homes.

School Research providing links to Great Schools, Public School review, and School Matters

Links to Affordable Housing Programs in the area

Special Loan Programs

Placer County Resources such as Mello Roos lookup, Current County Projects, Permits and Zoning and much more

Sacramento Links such as Mello Roos lookup, City and County of Sacramento links

Green Living - a number of links to sites that support a eco-balanced life style such as PG&E's California Solar Initiative, Green Home Guide, and lots of energy efficient tools and ideas.

Educating our neighbors is a section of links that cover topics such as How do I get my Credit Score, what are Mello Roos taxes, how does the FED work, what is Freddie Mac Fannie Mae the FHA and HUD, how does the foreclosure process work, etc.

Commercial Real Estate section includes LoopNet and CoStar links.

Comp Your Rental links to RentoMeter website so you can evaluate rental rates.

Down Payment Assistance sites

Federal Bailout Money - where is it going.

And a several other links such as what are the customary Escrow splits between buyer and seller by county for California.

In addition I maintain an ActiveRain blog that has current information on a wide variety of topics of interest you may be interested in. ActiveRain is a RealEstate Professional networking tool that provides useful insights to both professional real estate agents as well as interested consumers.

I also maintain my blog at EnglePropertiesOnline where you can click on the Engle Blog and Resources Link in the left navigation bar.

See you down the blog,

Jeff

Buyer's Tools from Neighborly Realty

2009-06-22T08:43:00.000-07:00

Hi again neighbors. Following up on my last blog relating general tools available on the EnglePropertiesOnline website, here is a blog specific to buyers.

As a buyer, you need a variety of tools to help in the decision making process of getting a new home. The first step in the process is to determine how much can you afford, and linked to that how much will a lender loan you. Talk to your Realtor ® to help you determine what home value you probably qualify for. Very early on in the house-hunting process (maybe even before you start looking for homes) you will need to get what is called a Pre-Approval letter. The Pre-Approval letter is more in-depth than the Pre-Qualification letter. More information about the differences between these can be found here. Again, your Realtor ® can assist you in these tasks.

Searching for a home

There are a lot of web sites that offer home searches. At EnglePropertiesOnline I offer a number of search tools.

Unlimited number of flexible searches using a variety of criteria that you can modify. Reports can be sent to you daily, weekly or monthly. After the initial search is set up and the first report is sent to you only new properties and updates to existing properties that match your criteria are sent toyou

Canned searches for Bank Owned properties for Western Placer and Northern Sacramento counties.

Links to other home search tools such as Craigslist, Trulia etc. on EnglePropertiesOnline 'Engle Blog and Resources' link on the left navigation bar as well as school research etc. See the article on page one of this newsletter for more information about this link.

Tips, checklists and more

Also on EnglePropertiesOnline is the 'For Buyers' link where you can have reports emailed to you immediately. These address some of the most common questions buyers have:

Preparing for your move

How to be a shark by grabbing those new listings

Negotiating your deal

Make relocation easier

Commonly used Real Estate terminology

What home is best for you

Home Inspection

And many more.

Of course, give me a call when your ready to look.

Jeff

Neighborly Realty

Seller's Tools from Neighborly Realty

2009-06-22T08:42:00.001-07:00

As a followup to the previous 2 blogs about what is available on EnglePropertiesOnline here is the 3rd in the series.

For Sellers, you can set up a search on EnglePropertiesOnline to a ¼ or ½ mile radius of your home to get a better feel of what homes are selling for in your neighborhood. You can select to have this report sent to you on a daily, weekly or monthly basis. After the initial report, only new listings or updated listings are reported.

Get a Marketing Analysis done

A marketing analysis is done by a Real Estate professional and provides you with data to help you value your home for sale. While current houses that are for sale may be a good initial indicator, what really counts is the actual selling price of the home, and how long it took to sell. These are the two key points your interested in, right?

Online Tools

At EnglePropertiesOnline, select 'For Sellers' link in the left navigation bar. Here you will find reports to assist you, such as:

Are you having difficulty selling your home?

Market but don't brand your home

Property Inspection

Set the list price correctly

Stuck with 2 homes?

What is your home worth in today's market?

And several more reports for you.

When you are ready to discuss selling, give me a call.

Jeff
Neighborly Realty
(916) 303-0257

Seller's Tools from Neighborly Realty

2009-06-22T08:42:00.000-07:00

As a followup to the previous 2 blogs about what is available on EnglePropertiesOnline here is the 3rd in the series.

Get a Marketing Analysis done

Online Tools

At EnglePropertiesOnline, select 'For Sellers' link in the left navigation bar. Here you will find reports to assist you, such as:

Are you having difficulty selling your home?

Market but don't brand your home

Property Inspection

Set the list price correctly

Stuck with 2 homes?

What is your home worth in today's market?

And several more reports for you.

When you are ready to discuss selling, give me a call.

Jeff
Neighborly Realty
(916) 303-0257