Where Are House Prices Now

We are at 2003 home prices now. However, interest rates are 2% lower, so affordability is much higher than it was.

In fact, in 2007, only 10% of Californians could afford to buy real estate. Now with lower prices and interest rates that figure is up to 50%.

Cash Sales Up!

In 2001, about 8% of home sales were cash. That figure is now 26%!!

Investors in particular are paying cash for rental properties, showing great confidence in the value represented by the market.

Russell's Roundup

Foreclosure starts driven higher by Bank of America

Foreclosure starts driven higher by Bank of America
Foreclosure filings and foreclosure sales increased in August throughout the majority of areas covered by ForeclosureRadar.

Foreclosure starts – the first notice filed, either a Notice of Default or Notice of Trustee Sale depending on the state – rose in every state, and appears to have been primarily driven by Bank of America and related entities, where foreclosure starts rose 116 percent from July to August, according to the report. Wells Fargo and US Bank also saw increases in foreclosure start filings, while filings by JP Morgan Chase and Citibank were essentially flat.

Notice of Default filings increased 69.5 percent in California, to the highest level in a year. Notice of Trustee Sale filings were up more moderately, rising 6 percent month-over-month, but down 23.6 percent year-over-year. Cancellations were nearly flat, up just 1.9 percent from July.

Activity on the courthouse steps increased in August, with Properties Sold Back to Bank (REO) increasing 12.3 percent from the prior month. Properties Sold to Third Parties rose 9.9 percent month-over-month and 10.8 percent year-over-year. Time to Foreclose increased to 333 days in August, 49 days longer than a year ago.



AR recently issued a Call For Action urging REALTORS® to contact Congress and clearly communicate that Congress needs to prevent conforming loan limits from expiring on Sept. 30.

Unless Congress acts, the current loan limits will expire on Sept. 30, and the cost of a mortgage could rise significantly. More than 30,000 California families will face higher down payments, higher mortgage rates, and stricter loan qualification requirements if conforming loan limits on mortgages backed by the Federal Housing Administration (FHA), Fannie Mae, and Freddie Mac are reduced beginning October 1, 2011, according to analysis by C.A.R.

Despite the Obama administration claiming it will support a one-year extension of the current loan limits, Bank of America already has lowered its loan limits for new loans, and others will follow suit.

Please contact Congress today and communicate clearly that a housing recovery depends on keeping mortgages affordable and that Congress needs to prevent these higher loan limits from taking effect.

Buying Real Estate today is like buying gold when it was $ 300/ounce.

Not too long ago, Gold was $ 300-400/ounce. Now where is it?? $ 1700..$1800?

Property prices have dropped to the point that, allied to low interest rates, some people are going to making themselves rich over the next 10 years.

Investment in property, medium to long-term, has got to the point in the present scenario that it is probably the best place for investment money. You would expect that from me as I am in the business, but read this

CNN Money: Forget stocks. Don't bet on gold. After 4 years of plunging home prices, the most attractive asset class in America is housing.

CBS Money Watch: This may be a once in a generation buyer's market.

Forbes: It's a buyer's market, but like everything else in life, the bargain deals won't last.

Vegas roadblock

Its Friday afternoon of the holiday weekend and the road to Las Vegas is blocked by a fire!! Had to be this weekend didnt it. Glad I am not on the 15 Freeway. If you are on the 15 traveling at 2 mph I am sure there will be a bathroom soon!! You can hold on!

New Property For Sale

Upgraded Largest Model. 4 bed plus bonus, 3376 sq ft on small Cul-de-Sac - $844,900 Very rarely available in exclusive Hidden Ridge Estates Largest model in exclusive Hidden Ridge Estates, first on market in many years. Very rare. 4 bedrooms, bonus, formal dining with cathedral ceiling, huge kitchen/family room. Kitchen remodeled in cherry with 8 1/2 foot granite island. Windows all replaced, then hand finished inside with stunning molding. Walnut floor in living/dining room and downstairs bed/office. Plantation shutters,wet bar/wine fridge. Master bedroom a relaxing oasis,huge shower, double-sided fireplace,walk-in closets. Relaxing front balcony recently tiled. Large laundry room. Large flat lot with view of hills front and back. Built-in Bar-B-Q and large entertaining area with patio covers. Above ground spa and room for pool. Lots of storage. Dual AC systems, up and down. Security system built-in. All this and no Mello-Roos. HOA only $68/month. Quiet 11 house Cul-De Sac close to Toll Rd, stores, schools and trails. Value-priced for quick sale to facilitate next purchase. Halfway between Saddleback Church/Cook s Corner. Remodeled kitchen replacement windows Cul De Sac Very low HOA walnut floors fireplace in master No Mello-Roos Great condition MLS: s662599 Sq Ft: 3376 Yr Built: 1990 Bdrms: 4 Baths: 3 Pool: No Parking: 3 Car Garage Asking: $844,900 5 Mulberry Trabuco Canyon, CA 92679 Property Map Russell Taylor 949 584 7289 RTaylor@c21superstars.com www.fineochomes.com Lic#: 01382354 Century 21 Superstars.com 22342 Ave Empresa Suite# 150 Rancho Santa Margarita, CA92688 949 584 7289

Realtor Email Flyers by EmailFlyers.net

Selling Your House with Me-Part 2

Once you have a buyer:

Many people think finding the buyer and signing a sales contract means it’s all over. This could not be more wrong.
Clients ask me “When can I be sure the deal will close?” My answer is “When the money hits your bank account at the end of the process.”
Opening escrow with a buyer is the start of a process with many hurdles, and it may still present you with uncomfortable decisions to make. It is vital to stay engaged in the process and understand the things that will, or may, happen.

Things to understand:
1) You are in a contract. It is a fact of life that it is much easier for the buyer to withdraw than for the seller to withdraw. If the buyer fulfills their obligations, and meets timelines, it is very difficult for you to pull out from selling your house, and if you do so without good legal reason, they can sue you for “specific performance” and make you sell it. This very rarely happens but it is important you do not think you can change your mind easily once under contract.
2) The buyer has the right to make any non-destructive investigations they want during the “contingency period” ( usually 17 days), at their own expense, and you must provide access for this. Usually a buyer just does a “home inspection” using a licensed inspector, but they could, if they choose, do a mold inspection, a roof inspection, a geo-technical inspection, a chimney inspection etc., and you cannot say “No”.
3) It is normal ( except in bank-owned and sometimes short-sales) for the seller to pay for a “wood destroying pest” ( termite) inspection, and also to pay for the work that is needed to remedy problems found. This can cost more than you might expect, and may even involve fumigation of the house , for which you will have to move out for a few days. A typical cost can be $ 2500 but it can sometimes cost a lot more.
4) During the contingency period of the escrow, the buyer conducts their investigations/inspections, finalizes their loan approval, and the lender does an appraisal to evaluate if they think the house is worth the price that has been agreed. After inspections, the buyer may present a “Request for repair”, which you are at liberty to accept in full or in part, or reject. The buyer is at liberty to cancel the sale depending on the response given so the response is a “double-edged sword”. The repairs and response are often a subject of negotiation.
5) Once the contingency period is over, the buyer is asked to remove those contingencies, having hopefully agreed repairs, and had the loan approved, and an acceptable appraisal. Many sellers assume that at this stage, if the buyer pulls out, the seller will get the buyer’s deposit money. While the contract could be read that way, and it may seem fair, it is very, very rare for it to happen, so do not expect it. In general buyers can find a way out and get their money back.
6) Many people want to sell “as is”, thinking this is a way to avoid having to make repairs. This is not always the case. Firstly, selling “as is” may make a buyer assume there is a lot of work to be done and this will affect the price they are willing to offer. Secondly, “as is” does not eliminate the buyers right to make inspections during the contingency period, and they can still make a “request for repair” based on their findings. You can reject that request, but they can also withdraw from the deal on that basis. So, “as is” has it’s place, but is not a simple way to avoid expense and can be counter-productive in the wrong place.
7) If you have altered or added-on to the house, but did not pull permits to do so, it is likely that the appraiser will not include these improvements in the appraisal. Any value you are going to get for such work would be at the behest of the buyer, and they may have to pay cash for the amount over the appraisal.
8) You will be sent a lot of paperwork during the process. One of the most important issues is “Disclosure”. You will be asked to disclose everything you know about the house, good or bad. It is very important that you do this thoroughly and honestly. If the buyer buys the house and you told them that 3 days a week semi trucks run their engine all day by your back window, then they cannot claim to be surprised when it happens. If you didn’t tell them, and a court deems this to me a material factor in their decision to buy, then you are in trouble.

Selling Your House With Me-Part 1

You want to sell your house!

You want:

1) to sell your house for the best price with no complications.

2) to deal with a Realtor who is experienced and knowledgeable and who you can trust.

Selling your house is a complex transaction. Complications and stress are a part of every home sale. Anyone who promises you no stress during the sale and escrow process, and no difficult decisions, is selling you hope over experience.

The way to avoid as many complications as possible and reduce stress is:

1) plan the process carefully with your Realtor and be aware not only of your needs, but also your obligations. Try to look at the house as a buyer would see it, not as your home. (This is actually difficult)

2) Choose a Realtor who can help you handle the complications and the unexpected twists and turns that may occur, especially during escrow. A Realtor doesn't earn their fee by finding a buyer, but by guiding the deal to actually close escrow.

3) Have realistic goals and be flexible in problem solving. Understand that the buyer is looking at the transaction from a completely different perspective and their actions and decisions may make no sense to you. A buyer's motivations may be clear, but it is possible there are factors at work of which you have no knowledge.