I have created a new blog using Wordpress. Please go to www.dawnhocevar.com/blog to continue receiving/following my blog posts and market information. I will no longer be posting to this location.
Thank you for your continued support!
Dawn
Tuesday, June 16, 2009
Monday, May 4, 2009
JUST SOLD!
1708 Fell Street #2
San Francisco, CA 94117
Sold for: $680,000
Status: Closed Escrow
Bedrooms: 2
Bathrooms: 2
Parking: 1
Property Characteristics
Neighborhood: North Panhandle
Property Type: Condo
Two Bedrooms
Two Bathrooms
Back Yard
Independent Parking
Storage
HOA: $220
Square Feet: 1208 +/-
Description
This full floor condo lends itself to entertaining in its naturally lit open floor plan with high ceilings and large windows. Tucked away from the street, you are surrounded by the gracious greenery of mature trees. This two bedroom, two full bath unit features hardwood floors, mirrored walls, halogen track and recessed lighting. Thoughtfully designed, the marble kitchen countertops match the inlay of the wood-burning fireplace, and the custom built-in shelves and cabinets create both space and aesthetics in this inviting home.
The U-shaped kitchen surrounds you on three sides with countertops, appliances, storage and a gas stove. The kitchen is extremely functional with a proper work triangle and special corner shelf, which cuts down on excess movement by centering your work space. The spacious bedrooms offer abundant closet space and the large windows overlooking the back yard allow for great natural light.
This urban retreat is situated on Panhandle Park, a three-quarter of a mile long and one block wide greenbelt. The park has two paths that run through it from Golden Gate Park to Baker Street, one for pedestrians (and dogs) and one for bicycles. The park also features basketball courts and a playground. NOPA is a blossoming neighborhood and has everything, including upscale restaurants, spas and a farmer`s market every Sunday. Parking, storage, laundry and a maintained yard complete this spectacular unit.
Thursday, April 23, 2009
For my Pacifica followers and those considering a move to Pacifica
Good news for Pacifica schools!
U.S. Congresswoman Jackie Speier took a few minutes to pose with some of the beneficiaries of the Pacifica School District's "Coaching for Equity and Excellence" program, one of the six projects selected for recommendation by the Citizens' Oversight Panel. Pictured with Speier are (front row, L-R) Maia Cluver, William Hirsch, Cisco Argueta, Sal Argueta, Ellis Manning-Villar, Shannon Manning-Villar, (back row, L-R) Amirah Tulloch, Congresswoman Speier, Neikesha Barnett-McNeil, Ashaye Barnett and Anandah Tulloch. (Photo by Sheila Menlo)U.S. Congresswoman Jackie Speier announced a Pacifica School District teacher training program was recommended in an application process for congressional appropriations.
On April 7, Speier announced the findings of a citizens' oversight committee she formed to evaluate the 59 proposed projects that applied for federal appropriations. After much review, the committee recommended funding nine of those projects.
Pacifica School District's "Coaching for Equity and Excellentce," which coaches teachers in ways to improve stdent achievement in literacy and mathematics, could receive $207,987.
HIP Housing, or Human Investment Project, which matches people in need of housing with homeowners and others who have room to share, may receive $120,000.
Samaritan House's Safe Harbor Shelter, a 90 bed emergency homeless shelter in South San Francisco, provides people with the resources to assist them with housing, case management, employment assistance, literacy services, home econommics instruction, tenant skill instruction, referrals to legal aid for landlord/tenant law and victims rights counseling. Safe Harbor is in line to receive $200,000.
San Francisco State's "Competency Based Education Training Initiative for an Early Child Care Workforce" provides training and internships for early care and eudcation students and matches them with mentor teachers to assure they will be of the highest quality and meet the highest standards. That program could receive $750,000.
University Center's Consortium at San Mateo County Community College District provides opportunities for laid-off workers to get training in new, high demand careers. It may receive $2 million in appropriations.
CalTrain's Positive Control Center System is an integrated signal and communication system that will improve train performance, reliability and safety while allowing Caltrain to respond to demand for expanded service along the U.S. 101 corridor. That program could be awarded $1 million over two years. The San Mateo County Smart Corridors project coordinates multiple jurisdictions to deploy an Intelligent Transportation Syatem to mitigate recurring traffic congestion, improve traffic operations and optimize the use of existing roadways. The project may be granted $3 million over two years.
The San Mateo County Sheriff's Office may receive $622,000 over two years to acuire and equip a mobile command vehicle to asist local emergency responders in the event of emergencies.
South Bayfront Levee Improvements is up to receive the highest award of $6,586.750 to provide protection from flooding in San Mateo and Foster City.
Reacting to the good news for the Pacifica School District, PSD Board Member Eileen Manning-Villar said, "Though funding here is by no means guaranteed, it is quite an honor for the district's project to be selected by the Citizens' Oversight Panel and endorsed by Congresswoman Speier herself for a recommendation for a funding appropriation. I am very pleased that Superintendent Susan Vickrey and the district's grant writing consultant, Peter Zachariou, took the opportunity to present PSD's teacher training program to this innovative panel review process. Quite obviously they did an excellent job."
From Kalimah Salahuddin, PSD parent and President of the newly formed Saving Pacifica Schools PAC, "For me it is was nice to know that through community action we can help in maintaining our high level of education and secure our children's future. This is one victory and we need to continue to keep pressure on our legislature and remind them how vital their continued support is to the children of Pacifica."
From Sheila Merlo, PSD Parent and Vice President of the Vallemar PTO, "Our community is continuing to stand strong in advocating for our children's education and California's future. We have wonderful teachers in this district, but they need our support. Professional development training is one way to do that. As many of you know this program has been largely responsible for raising our API scores and closing the achievement gap between our schools. With the current cuts this program is in jeopardy, but we have an opportunity to keep it funded with the Congresswoman's support. We would like to thank her from the bottom of our hearts, and our children's too."
By Jane Northrop
STAFF WRITER
U.S. Congresswoman Jackie Speier took a few minutes to pose with some of the beneficiaries of the Pacifica School District's "Coaching for Equity and Excellence" program, one of the six projects selected for recommendation by the Citizens' Oversight Panel. Pictured with Speier are (front row, L-R) Maia Cluver, William Hirsch, Cisco Argueta, Sal Argueta, Ellis Manning-Villar, Shannon Manning-Villar, (back row, L-R) Amirah Tulloch, Congresswoman Speier, Neikesha Barnett-McNeil, Ashaye Barnett and Anandah Tulloch. (Photo by Sheila Menlo)U.S. Congresswoman Jackie Speier announced a Pacifica School District teacher training program was recommended in an application process for congressional appropriations.
On April 7, Speier announced the findings of a citizens' oversight committee she formed to evaluate the 59 proposed projects that applied for federal appropriations. After much review, the committee recommended funding nine of those projects.
Pacifica School District's "Coaching for Equity and Excellentce," which coaches teachers in ways to improve stdent achievement in literacy and mathematics, could receive $207,987.
HIP Housing, or Human Investment Project, which matches people in need of housing with homeowners and others who have room to share, may receive $120,000.
Samaritan House's Safe Harbor Shelter, a 90 bed emergency homeless shelter in South San Francisco, provides people with the resources to assist them with housing, case management, employment assistance, literacy services, home econommics instruction, tenant skill instruction, referrals to legal aid for landlord/tenant law and victims rights counseling. Safe Harbor is in line to receive $200,000.
San Francisco State's "Competency Based Education Training Initiative for an Early Child Care Workforce" provides training and internships for early care and eudcation students and matches them with mentor teachers to assure they will be of the highest quality and meet the highest standards. That program could receive $750,000.
University Center's Consortium at San Mateo County Community College District provides opportunities for laid-off workers to get training in new, high demand careers. It may receive $2 million in appropriations.
CalTrain's Positive Control Center System is an integrated signal and communication system that will improve train performance, reliability and safety while allowing Caltrain to respond to demand for expanded service along the U.S. 101 corridor. That program could be awarded $1 million over two years. The San Mateo County Smart Corridors project coordinates multiple jurisdictions to deploy an Intelligent Transportation Syatem to mitigate recurring traffic congestion, improve traffic operations and optimize the use of existing roadways. The project may be granted $3 million over two years.
The San Mateo County Sheriff's Office may receive $622,000 over two years to acuire and equip a mobile command vehicle to asist local emergency responders in the event of emergencies.
South Bayfront Levee Improvements is up to receive the highest award of $6,586.750 to provide protection from flooding in San Mateo and Foster City.
Reacting to the good news for the Pacifica School District, PSD Board Member Eileen Manning-Villar said, "Though funding here is by no means guaranteed, it is quite an honor for the district's project to be selected by the Citizens' Oversight Panel and endorsed by Congresswoman Speier herself for a recommendation for a funding appropriation. I am very pleased that Superintendent Susan Vickrey and the district's grant writing consultant, Peter Zachariou, took the opportunity to present PSD's teacher training program to this innovative panel review process. Quite obviously they did an excellent job."
From Kalimah Salahuddin, PSD parent and President of the newly formed Saving Pacifica Schools PAC, "For me it is was nice to know that through community action we can help in maintaining our high level of education and secure our children's future. This is one victory and we need to continue to keep pressure on our legislature and remind them how vital their continued support is to the children of Pacifica."
From Sheila Merlo, PSD Parent and Vice President of the Vallemar PTO, "Our community is continuing to stand strong in advocating for our children's education and California's future. We have wonderful teachers in this district, but they need our support. Professional development training is one way to do that. As many of you know this program has been largely responsible for raising our API scores and closing the achievement gap between our schools. With the current cuts this program is in jeopardy, but we have an opportunity to keep it funded with the Congresswoman's support. We would like to thank her from the bottom of our hearts, and our children's too."
By Jane Northrop
STAFF WRITER
Sunday, April 19, 2009
Do you have kids or just love skateboarding?
San Francisco is close to completing designs on a new, $1 million skate park in the north Mission District. It would be the second built in as many years and only the city's third overall.
If all goes as planned, the new park will be built on a shaded half-acre parking lot that sits beneath the freeway heading toward the Octavia Street off-ramp of Highway 101. The lot, at Mission and Duboce streets, has been a magnet for trash. A nearby parcel covered in asphalt would be replaced with a new basketball court and dog park.
Caltrans gave the land to the city as part of the construction of the off-ramp and the new Octavia Boulevard. The idea for a skate park emerged after neighbors lobbied for something that would bring activity to the large, concrete open spaces.
Skateboarding is popular in the city, yet illegal nearly everywhere other than neighborhood sidewalks. City law prohibits skateboarding on any city street and any sidewalk in any business district.
Rich Hillis in the Mayor's Office of Economic Development said that the city and property owners spend a lot of money on obstructions to keep skaters off their property. The city's first public skateboarding venue opened at the Potrero del Sol park in the south Mission in 2008 and has been wildly popular, Hillis said. A smaller skate park is located in Crocker Amazon.
If all goes as planned, the new park will be built on a shaded half-acre parking lot that sits beneath the freeway heading toward the Octavia Street off-ramp of Highway 101. The lot, at Mission and Duboce streets, has been a magnet for trash. A nearby parcel covered in asphalt would be replaced with a new basketball court and dog park.
Caltrans gave the land to the city as part of the construction of the off-ramp and the new Octavia Boulevard. The idea for a skate park emerged after neighbors lobbied for something that would bring activity to the large, concrete open spaces.
Skateboarding is popular in the city, yet illegal nearly everywhere other than neighborhood sidewalks. City law prohibits skateboarding on any city street and any sidewalk in any business district.
Rich Hillis in the Mayor's Office of Economic Development said that the city and property owners spend a lot of money on obstructions to keep skaters off their property. The city's first public skateboarding venue opened at the Potrero del Sol park in the south Mission in 2008 and has been wildly popular, Hillis said. A smaller skate park is located in Crocker Amazon.
Friday, April 17, 2009
Don't have 20% to put down? FHA loans available
With low down-payment requirements, competitive rates, and less stringent credit score requirements, more home buyers are choosing mortgages insured by the Federal Housing Administration (FHA). Mortgages insured by the FHA account for 20 percent of the total dollar volume in home loans – up from just 3 percent in 2006.
Some benefits to FHA loans include: a better loan modification program; ability to easily and often less expensively refinance; low rates; and acceptance of borrowers with credit scores as low as 620.
FHA loans are targeted to low- and moderate-income borrowers, but there are not any income restrictions. However, these loans do restrict the amount that can be borrowed. In high-cost areas, such as California, the maximum amount that a mortgage applicant can borrower is $729,750.
Additionally, borrowers must pay an up-front insurance premium totaling 1.75 percent of the loan, which goes into FHA’s fund for repaying lenders if borrowers default. This is in addition to other usual closing costs.
In previous years, few lenders would originate FHA loans due to strict qualifications. That all changed a few years ago when the Dept. of Housing and Urban Development (HUD), which oversees the FHA, reworked its guidelines. The number of authorized FHA lenders has soared by 500 percent over the past two years. Please let me know if you would like a referral for an FHA lender.
Some benefits to FHA loans include: a better loan modification program; ability to easily and often less expensively refinance; low rates; and acceptance of borrowers with credit scores as low as 620.
FHA loans are targeted to low- and moderate-income borrowers, but there are not any income restrictions. However, these loans do restrict the amount that can be borrowed. In high-cost areas, such as California, the maximum amount that a mortgage applicant can borrower is $729,750.
Additionally, borrowers must pay an up-front insurance premium totaling 1.75 percent of the loan, which goes into FHA’s fund for repaying lenders if borrowers default. This is in addition to other usual closing costs.
In previous years, few lenders would originate FHA loans due to strict qualifications. That all changed a few years ago when the Dept. of Housing and Urban Development (HUD), which oversees the FHA, reworked its guidelines. The number of authorized FHA lenders has soared by 500 percent over the past two years. Please let me know if you would like a referral for an FHA lender.
Wednesday, April 15, 2009
How Lenders Evaluate a Buyer's Credit in Today's Market
By David Compton & George Smith
When a lender evaluates a buyer's creditworthiness, they consider several factors about the buyer's past credit-usage behaviors. These behaviors have been systematized into what is called a “Tri-Merged Residential Credit Report” (T.M.R.C.R.) and is quantified with a scoring system called F.I.C.O. (Fair Issac Company). The score is essentially a merger of reports from three major credit repositories known as:
Experion/T.R.W.
Equifax
Transunion
While F.H.A. and V.A. are not officially F.I.C.O. driven in their credit-approval processing, many lenders are still giving heavy weighting to the scores on these loans. Conventional (F.N.M.A. & F.H.M.L.C.) lenders have been using this scoring system for years.
Listed below is how the F.I.C.O. scores are generally interpreted:
Scores range from 300 to 850.
Score under 600 - will most likely need to use loan programs that are not F.I.C.O. driven. Represents extreme concern for underwriting and may result in additional fees, higher rates and/or points, additional down payment required, or even non-approval.
Score 600 - 620: The underwriter will need to carefully review the application and may result in more fees, points and/or lower loan-to-value ratio.
Score 620 - 660: This is considered a cautious risk although the buyer does stand a good chance of getting the loan provided he/she can explain any derogatory notations (i.e. late payments) in a plausible manner.
Score 660 - 680: This is a standard automated approval score.
Score 680 - 699: This is considered a very good risk by the lender.
Score 700 - 719: This is considered an excellent risk by a lender and is pretty much a “slam dunk” for approval.
Score 720 & above: This is considered “Accept Plus” for automated underwriting.
To determine the borrower's credit score, most lenders apportion weights as indicated to the following factors:
Timely payments - 35%
Total debt - 30%
Length of credit history - 15%
New credit inquiries - 10%
Amount/type of credit - 10%
A buyer/borrower can get a free copy of their credit report from each repository by mail or online at: www.myFICO.com. They are entitled to one free credit report from each agency once a year. Consumers should review their credit reports once a year, as they often have inaccuracies and old derogatory notations that should be removed from the report.
Here are some methods that a borrower may use to improve their credit score:
Dispute incorrect information by directly contacting the credit reporting agency.
If the borrower/buyer has any past-due debt, they can contact the creditor directly and settle the debt. Creditors are often willing to settle past-due debt for less than what is owed and sometimes are even willing to remove the derogatory notation about the debt. If the debt has been sold to a collection agency, the borrower would have to contact the agency.
Pay down credit card balances, if possible, to less than 1/3 of the available limit.
Work to show that they have maintained 12 consecutive months of timely payments on ALL of their financial obligations. If they have gone into foreclosure and/or bankruptcy, this will take longer; perhaps three to four years.
Be sure to remember that most of you are NOT credit experts and should always condition any advice you give buyers/borrowers by suggesting that they seek the assistance of a qualified credit counselor. However, these are the basic rules when a lending underwriter is deciding whether or not to approve a loan.
When a lender evaluates a buyer's creditworthiness, they consider several factors about the buyer's past credit-usage behaviors. These behaviors have been systematized into what is called a “Tri-Merged Residential Credit Report” (T.M.R.C.R.) and is quantified with a scoring system called F.I.C.O. (Fair Issac Company). The score is essentially a merger of reports from three major credit repositories known as:
Experion/T.R.W.
Equifax
Transunion
While F.H.A. and V.A. are not officially F.I.C.O. driven in their credit-approval processing, many lenders are still giving heavy weighting to the scores on these loans. Conventional (F.N.M.A. & F.H.M.L.C.) lenders have been using this scoring system for years.
Listed below is how the F.I.C.O. scores are generally interpreted:
Scores range from 300 to 850.
Score under 600 - will most likely need to use loan programs that are not F.I.C.O. driven. Represents extreme concern for underwriting and may result in additional fees, higher rates and/or points, additional down payment required, or even non-approval.
Score 600 - 620: The underwriter will need to carefully review the application and may result in more fees, points and/or lower loan-to-value ratio.
Score 620 - 660: This is considered a cautious risk although the buyer does stand a good chance of getting the loan provided he/she can explain any derogatory notations (i.e. late payments) in a plausible manner.
Score 660 - 680: This is a standard automated approval score.
Score 680 - 699: This is considered a very good risk by the lender.
Score 700 - 719: This is considered an excellent risk by a lender and is pretty much a “slam dunk” for approval.
Score 720 & above: This is considered “Accept Plus” for automated underwriting.
To determine the borrower's credit score, most lenders apportion weights as indicated to the following factors:
Timely payments - 35%
Total debt - 30%
Length of credit history - 15%
New credit inquiries - 10%
Amount/type of credit - 10%
A buyer/borrower can get a free copy of their credit report from each repository by mail or online at: www.myFICO.com. They are entitled to one free credit report from each agency once a year. Consumers should review their credit reports once a year, as they often have inaccuracies and old derogatory notations that should be removed from the report.
Here are some methods that a borrower may use to improve their credit score:
Dispute incorrect information by directly contacting the credit reporting agency.
If the borrower/buyer has any past-due debt, they can contact the creditor directly and settle the debt. Creditors are often willing to settle past-due debt for less than what is owed and sometimes are even willing to remove the derogatory notation about the debt. If the debt has been sold to a collection agency, the borrower would have to contact the agency.
Pay down credit card balances, if possible, to less than 1/3 of the available limit.
Work to show that they have maintained 12 consecutive months of timely payments on ALL of their financial obligations. If they have gone into foreclosure and/or bankruptcy, this will take longer; perhaps three to four years.
Be sure to remember that most of you are NOT credit experts and should always condition any advice you give buyers/borrowers by suggesting that they seek the assistance of a qualified credit counselor. However, these are the basic rules when a lending underwriter is deciding whether or not to approve a loan.
Friday, April 10, 2009
Top Economists Say Recovery Has Begun
This coincides with my previous rebounding articles....
Economic recovery is about making people feel more confident, says Mark Zandi, chief economist of Moody’s Economy.com.
Zandi evidenced increasing home sales and gains in the stock market are some promising signs that the worst is over and people will start spending again.
“We’re starting to see some pent-up demand for goods,” he says.
But Zandi warns that the situation is still fragile. "Confidence is a very fickle thing. It can go from abject pessimism that pervades now to a more balanced view of the world rather quickly.”
Robert Brusca of FAO Economics is predicting strong growth in the last half of the year and a quick recovery for the labor market. "You've lost 5 million jobs. It shouldn't be hard to put 2.5 million jobs back on rather quickly after you hit bottom," he said.
Joseph Carson, chief economist at AllianceBernstein, calls improving home sales, a rising stock market, and better-than-expected retail sales in February and March good signs of a turnaround. By the time President Obama’s stimulus package takes effect, the economy will be ready, he says.
"The stimulus has a much better chance of working if trends are already turning up than if it needs to halt a decline," he said.
Source: CNNMoney, Chris Isidore (04/06/2009)
Economic recovery is about making people feel more confident, says Mark Zandi, chief economist of Moody’s Economy.com.
Zandi evidenced increasing home sales and gains in the stock market are some promising signs that the worst is over and people will start spending again.
“We’re starting to see some pent-up demand for goods,” he says.
But Zandi warns that the situation is still fragile. "Confidence is a very fickle thing. It can go from abject pessimism that pervades now to a more balanced view of the world rather quickly.”
Robert Brusca of FAO Economics is predicting strong growth in the last half of the year and a quick recovery for the labor market. "You've lost 5 million jobs. It shouldn't be hard to put 2.5 million jobs back on rather quickly after you hit bottom," he said.
Joseph Carson, chief economist at AllianceBernstein, calls improving home sales, a rising stock market, and better-than-expected retail sales in February and March good signs of a turnaround. By the time President Obama’s stimulus package takes effect, the economy will be ready, he says.
"The stimulus has a much better chance of working if trends are already turning up than if it needs to halt a decline," he said.
Source: CNNMoney, Chris Isidore (04/06/2009)
Thursday, April 9, 2009
California Assoc. of Realtors data point on home sales
Pending home sales increased in February..... another bullet point to support my previous comments on April 8th about a possible market rebound.
Pending Home Sales Index, a forward-looking indicator based on contracts signed in February, rose 2.1 percent to 82.1 from a reading of 80.4 in January, but is 1.4 percent below February 2008 when it was 83.3.
"Pending home sales have a way to go for there to be a meaningful increase, but recent increases in shopping activity are hopeful indicators that we’ll see additional sales gains,” said Lawrence Yun, NAR’s chief economist. “More buyers are getting into the market to take advantage of stimulus incentives and much-improved housing affordability conditions, but it will take a few months before we could see this turn up in measurable sales contract activity.”
If you are actively in the market, what are you experiencing?
Pending Home Sales Index, a forward-looking indicator based on contracts signed in February, rose 2.1 percent to 82.1 from a reading of 80.4 in January, but is 1.4 percent below February 2008 when it was 83.3.
"Pending home sales have a way to go for there to be a meaningful increase, but recent increases in shopping activity are hopeful indicators that we’ll see additional sales gains,” said Lawrence Yun, NAR’s chief economist. “More buyers are getting into the market to take advantage of stimulus incentives and much-improved housing affordability conditions, but it will take a few months before we could see this turn up in measurable sales contract activity.”
If you are actively in the market, what are you experiencing?
Wednesday, April 8, 2009
Is the market beginning to rebound?
If your idea of a “rebound” means getting back to the sales levels and home values experienced just a few years ago, then the answer to the question is “no”. The fantastic escalation in home values during the peak of 2004/2005 was based on the easy accessability of sub-prime loans that lured many buyers into a false sense of easy home ownership. Demand was at record highs thus supply was low and home values surged. As we all know, unless you have been living under a rock, those days are gone.
The current situation is not as bleak as the daily headlines lead many to believe. It all depends on where you live and where you are looking to sell or buy. The closer you get to S.F. the less of an impact the foreclosure market is having. It always comes back to supply and demand. Last year with the economic implosion we saw a decrease in demand and thus an increase in supply which lead to a reduction in home values. Buyers stood frozen in fear listening to the media and experiencing their own personal job losses or fear of loosing their job. So the market did what it had to do and sellers began to lower their asking prices. Still buyers just waited to see how far the prices would fall. A few very brave buyers took advantage of that time and bought very good properties at much lower prices than they had seen in years.
Since February the market has begun to change. Is it a temporary trend? Only time will tell however based on what I and other realtors in S.F. and close proximity are experiencing is that we may have passed the "bottom". What happened since February? The stimulus package was announced giving home buyers up to $18,000 in tax credits for those that qualify. Interest rates have dropped to record lows and so have home prices. That combination of events has caused serious buyers who have been sitting on the fence to take action. Property is now moving and buyers are taking advantage of the buyers market. Properties in a good location, in good condition and well priced for the market are moving quickly and in some cases, seeing multiple offers.
What does this mean? It means if you are a serious buyer who has been pre-approved for a loan you should be taking advantage of this unique opportunity. As more buyers jump off the fence it will naturally become more competitive when making offers. Does this mean we will see the double digit growth we saw just a few years ago? Not in the near future as there is still unrest in the economy, people are still loosing jobs.
What I can be sure of is that the cycle will continue. Supply and demand will fluctuate, we will have future recessions and boom years. Is this the right time for you to sell or buy? Contact me and lets explore your specific market and what the best options may be at this time for you.
The current situation is not as bleak as the daily headlines lead many to believe. It all depends on where you live and where you are looking to sell or buy. The closer you get to S.F. the less of an impact the foreclosure market is having. It always comes back to supply and demand. Last year with the economic implosion we saw a decrease in demand and thus an increase in supply which lead to a reduction in home values. Buyers stood frozen in fear listening to the media and experiencing their own personal job losses or fear of loosing their job. So the market did what it had to do and sellers began to lower their asking prices. Still buyers just waited to see how far the prices would fall. A few very brave buyers took advantage of that time and bought very good properties at much lower prices than they had seen in years.
Since February the market has begun to change. Is it a temporary trend? Only time will tell however based on what I and other realtors in S.F. and close proximity are experiencing is that we may have passed the "bottom". What happened since February? The stimulus package was announced giving home buyers up to $18,000 in tax credits for those that qualify. Interest rates have dropped to record lows and so have home prices. That combination of events has caused serious buyers who have been sitting on the fence to take action. Property is now moving and buyers are taking advantage of the buyers market. Properties in a good location, in good condition and well priced for the market are moving quickly and in some cases, seeing multiple offers.
What does this mean? It means if you are a serious buyer who has been pre-approved for a loan you should be taking advantage of this unique opportunity. As more buyers jump off the fence it will naturally become more competitive when making offers. Does this mean we will see the double digit growth we saw just a few years ago? Not in the near future as there is still unrest in the economy, people are still loosing jobs.
What I can be sure of is that the cycle will continue. Supply and demand will fluctuate, we will have future recessions and boom years. Is this the right time for you to sell or buy? Contact me and lets explore your specific market and what the best options may be at this time for you.
Friday, April 3, 2009
Green Festival-Learn about "green" options
As more and more "green" products and services become available how do you know what makes the most sense for you?
Come to SFAA's first Green Festival to learn about "green" options and get answers to your questions.
The Green Festival is the focus of SFAA's April Monthly Meeting and will be held Mon., April 20, 2009 from 5-7 p.m. at Fort Mason Center in San Francisco. All SFAA members are invited to attend.
Presenters will include:
Sustainable Energy Partners (SEP works with commercial property owners and managers to improve the environmental and financial performance of their portfolio of properties.)
Enviro Pro Tech (They'll explain how solar hot water systems can lower your utility bills while helping you protect the environment.)
San Francisco Curbside Recycling Program (Making it easier and more convenient for residents and businesses to recycle.)
Plus, Sunset Scavengers will be on-hand to shred your old documents for free from 5-7 p.m.
For more information, please contact Vanessa Khaleel at 415.255.2288 x16
or vanessa@sfaa.org. Download our event flyer here (pdf).
No need to RSVP. Just come to the Green Festival and learn!
Come to SFAA's first Green Festival to learn about "green" options and get answers to your questions.
The Green Festival is the focus of SFAA's April Monthly Meeting and will be held Mon., April 20, 2009 from 5-7 p.m. at Fort Mason Center in San Francisco. All SFAA members are invited to attend.
Presenters will include:
Sustainable Energy Partners (SEP works with commercial property owners and managers to improve the environmental and financial performance of their portfolio of properties.)
Enviro Pro Tech (They'll explain how solar hot water systems can lower your utility bills while helping you protect the environment.)
San Francisco Curbside Recycling Program (Making it easier and more convenient for residents and businesses to recycle.)
Plus, Sunset Scavengers will be on-hand to shred your old documents for free from 5-7 p.m.
For more information, please contact Vanessa Khaleel at 415.255.2288 x16
or vanessa@sfaa.org. Download our event flyer here (pdf).
No need to RSVP. Just come to the Green Festival and learn!
Thursday, April 2, 2009
Thursday, March 26, 2009
Another data point with positive news on the recession
This coincides with the uptake in buyers, increased properties in escrow, low mortgage rates, lowered home prices.....all adding up to a turn-around in the market.
Tuesday March 24, 2009, 5:48 pm EDT
The recession will ease by the end of this year and companies will begin adding workers, signaling the end of the worst economic downturn since the Great Depression.
It was the 64th day of the Obama administration and Chicago-based Dow Jones Indexes assembled a group of financial experts to assess the impact of government actions, whether they will work to stem the recession and what opportunities that might present investors.
The recession has affected every region of the country and nearly every sector of the economy, said Gus Faucher, director of macroeconomics at Moody's Economy.com, which conducts independent research and provides economic forecasts.
"It's really unprecedented in the U.S. to have nearly the entire country in a recession simultaneously," he said.
The good news is there's an end in sight.
The economy will pull out of the recession at the end of this year, marking a duration of 24 months, about twice as long as the average post-World War II recession, Faucher said.
The unemployment rate is expected to peak at nearly 10 percent in the first half of 2010. Without the $787 billion government stimulus package, he estimated job losses would have continued into the second half of the year and peaked at about 12 percent.
"That would take what is now a severe recession and actually turn it into a deep depression," he said. "We think the fiscal stimulus package is vital in turning around attitudes toward the economy."
He said we are at or near a stock market bottom and stock prices should soon stabilize.
That certainly wasn't the case so far this week. The Dow Jones industrial average gained 498 points on Monday but dropped 115 points, or 1.5 percent, on Tuesday.
Home sales will turn around by midyear and home prices will begin recovering by the end of this year after bottoming out at 35 percent of their value from peak to trough. Home prices won't return to their values of a few years ago during the boom, but will recover from current lows, he said.
Banks will likely begin seeing improvement in capital as the government program to remove bad assets kicks in and the Federal Reserve provides more economic support. Faucher predicted major bank and financial services company failures will abate in the second half of this year and credit will begin to move again.
Those improvements and additional government spending will provide investors some opportunities in companies that own bridges, toll roads and utilities. It also will drive growth in areas of green energy production.
The stimulus package will spend $50 billion on roads, bridges, utilities and other infrastructure, said Craig Noble, portfolio manager, for Brookfield Redding LLC, a Chicago-based investment manager of global real estate and infrastructure securities.
He sees a potential sweet spot for investors in companies that own the assets that will benefit from the needed spending. He said the stimulus package is only a small portion of government spending on transportation and utilities. Congress must reauthorize this year a multiyear transportation bill that provides hundreds of billions of dollars in spending and sets priorities for the next five years or more.
"The infrastructure class currently offers a unique and compelling investment case with trillions needed to be spend across the globe in coming years," he said.
Stimulus packages rolled out in Canada, Europe, Australia, South America and China show the global nature of the infrastructure asset class, he said.
Obama administration polices that emphasize renewable energy such as wind power will also push billions of dollars into building electricity-carrying power lines and the towers to hold them. That construction is needed to carry wind power from expanding wind turbine farms in the Midwest to population centers in the Eastern United States.
Personal Finance Writer David Pitt reported from Des Moines, Iowa.
Tuesday March 24, 2009, 5:48 pm EDT
The recession will ease by the end of this year and companies will begin adding workers, signaling the end of the worst economic downturn since the Great Depression.
It was the 64th day of the Obama administration and Chicago-based Dow Jones Indexes assembled a group of financial experts to assess the impact of government actions, whether they will work to stem the recession and what opportunities that might present investors.
The recession has affected every region of the country and nearly every sector of the economy, said Gus Faucher, director of macroeconomics at Moody's Economy.com, which conducts independent research and provides economic forecasts.
"It's really unprecedented in the U.S. to have nearly the entire country in a recession simultaneously," he said.
The good news is there's an end in sight.
The economy will pull out of the recession at the end of this year, marking a duration of 24 months, about twice as long as the average post-World War II recession, Faucher said.
The unemployment rate is expected to peak at nearly 10 percent in the first half of 2010. Without the $787 billion government stimulus package, he estimated job losses would have continued into the second half of the year and peaked at about 12 percent.
"That would take what is now a severe recession and actually turn it into a deep depression," he said. "We think the fiscal stimulus package is vital in turning around attitudes toward the economy."
He said we are at or near a stock market bottom and stock prices should soon stabilize.
That certainly wasn't the case so far this week. The Dow Jones industrial average gained 498 points on Monday but dropped 115 points, or 1.5 percent, on Tuesday.
Home sales will turn around by midyear and home prices will begin recovering by the end of this year after bottoming out at 35 percent of their value from peak to trough. Home prices won't return to their values of a few years ago during the boom, but will recover from current lows, he said.
Banks will likely begin seeing improvement in capital as the government program to remove bad assets kicks in and the Federal Reserve provides more economic support. Faucher predicted major bank and financial services company failures will abate in the second half of this year and credit will begin to move again.
Those improvements and additional government spending will provide investors some opportunities in companies that own bridges, toll roads and utilities. It also will drive growth in areas of green energy production.
The stimulus package will spend $50 billion on roads, bridges, utilities and other infrastructure, said Craig Noble, portfolio manager, for Brookfield Redding LLC, a Chicago-based investment manager of global real estate and infrastructure securities.
He sees a potential sweet spot for investors in companies that own the assets that will benefit from the needed spending. He said the stimulus package is only a small portion of government spending on transportation and utilities. Congress must reauthorize this year a multiyear transportation bill that provides hundreds of billions of dollars in spending and sets priorities for the next five years or more.
"The infrastructure class currently offers a unique and compelling investment case with trillions needed to be spend across the globe in coming years," he said.
Stimulus packages rolled out in Canada, Europe, Australia, South America and China show the global nature of the infrastructure asset class, he said.
Obama administration polices that emphasize renewable energy such as wind power will also push billions of dollars into building electricity-carrying power lines and the towers to hold them. That construction is needed to carry wind power from expanding wind turbine farms in the Midwest to population centers in the Eastern United States.
Personal Finance Writer David Pitt reported from Des Moines, Iowa.
Tuesday, March 24, 2009
Filming for TV pilot in S.F. to cause traffic delays
For those of you planning a trip to or around AT&T Park please note the following media announcement regarding street closures and traffic delays.....
MEDIA ALERT -- I-280 N/B KING STREET EXIT TO BE CLOSED SATURDAY MARCH
> 28 - WEDNESDAY APRIL 1ST (WEEKDAY MORNING COMMUTE HOURS
> EXCEPTED) and I-280 S/B KING STREET ENTRANCE TO BE CLOSED SUNDAY MARCH
> 29 from 1 PM - 4 PM FOR FILMING OF TV PILOT IN SAN FRANCISCO
>
> NORTHBOUND TRAFFIC ON I-280 WILL BE DIVERTED TO 6TH STREET due to the
> closure of the King Street off-ramp at Sixth Street in San Francisco
> on Saturday, March 28 at 5:00 AM through Sunday, March 29 until 10
> p.m. and on Monday, March 30, Tuesday March 31st and Wednesday, April
> 1 from 10 AM - 9 PM each day leaving the exit ramp available after 9
> PM - 10 AM to accommodate the weekday commute hours. Northbound
> traffic will be diverted onto the Sixth Street exit with detours set
> up to Embarcadero.
>
> KING STREET ENTRANCE RAMP FOR SOUTHBOUND I-280 will be closed on
> Sunday March 29th from 1 PM - 4 PM. Southbound traffic will be
> detoured from King Street to MARIPOSA STREET OR SIXTH STREET AT
> BRANNAN.
>
> The closures are to facilitate the filming of action sequences for the
> NBC Universal TV drama pilot "Trauma," which features emergency
> responders working a tanker truck crash.
>
> The simulated freeway crash involving several cars and a tanker truck
> is scheduled for Saturday March 28 and will include aerial helicopter
> activity. The scenes to be filmed on Sunday will include an explosion
> with a fireball and billowing smoke. There will be aerial helicopter
> activity throughout the day.
>
> Throughout filming, there will also be intermittent traffic stoppages
> at the entrance to I-280 S/B at both 6TH Street and KING STREET
> whenever there is a stunt being filmed or a helicopter landing or
> taking off. These brief intermittent stoppages will take place
> randomly during filming on the weekend and on the weekdays between 10
> AM and 3 PM.
>
> The California Highway Patrol, the San Francisco Police and Fire
> Departments and other emergency service departments for the City of
> San Francisco and the State of California have been notified in
> advance of this permitted filming.
>
> NBC is currently shooting "Trauma" (working title) in San Francisco
> with the cooperation of the San Francisco Film Commission, the
> California State Film Commission, CALTRANS, the CHP and the SFPD.
> Dario Scardapane is writer and executive producer of the project,
> which will be directed by executive producer Jeffrey Reiner (NBC's
> "Friday Night Lights"). Peter Berg ("Hancock", "Friday Night
> Lights") and Sarah Aubrey ("Friday Night Lights")are also executive
> producers of the pilot from Universal Media Studios in association
> with Film 44. The stars include Derek Luke ("Notorious"), Cliff
> Curtis ("10,000 B.C"), Anastasia Griffith ("Damages"), Aimee Garcia
> ("George Lopez"), Kevin Rankin ("Friday Night Lights") with Jamey
> Sheridan ("Law & Order: Criminal Intent).
>
>
> MEDIA CONTACTS:
> Jessica Nevarez, Universal Media Studios, 818-777-0543 Melissa
> Armstrong, NBC Entertainment, 818-777-2846 Joe Arellano, Deputy
> Director, Mayor's Communications Office,
> 415-554-6163
> Stefanie Coyote, Executive Director, San Francisco Film Commission,
> 415-554-6241
MEDIA ALERT -- I-280 N/B KING STREET EXIT TO BE CLOSED SATURDAY MARCH
> 28 - WEDNESDAY APRIL 1ST (WEEKDAY MORNING COMMUTE HOURS
> EXCEPTED) and I-280 S/B KING STREET ENTRANCE TO BE CLOSED SUNDAY MARCH
> 29 from 1 PM - 4 PM FOR FILMING OF TV PILOT IN SAN FRANCISCO
>
> NORTHBOUND TRAFFIC ON I-280 WILL BE DIVERTED TO 6TH STREET due to the
> closure of the King Street off-ramp at Sixth Street in San Francisco
> on Saturday, March 28 at 5:00 AM through Sunday, March 29 until 10
> p.m. and on Monday, March 30, Tuesday March 31st and Wednesday, April
> 1 from 10 AM - 9 PM each day leaving the exit ramp available after 9
> PM - 10 AM to accommodate the weekday commute hours. Northbound
> traffic will be diverted onto the Sixth Street exit with detours set
> up to Embarcadero.
>
> KING STREET ENTRANCE RAMP FOR SOUTHBOUND I-280 will be closed on
> Sunday March 29th from 1 PM - 4 PM. Southbound traffic will be
> detoured from King Street to MARIPOSA STREET OR SIXTH STREET AT
> BRANNAN.
>
> The closures are to facilitate the filming of action sequences for the
> NBC Universal TV drama pilot "Trauma," which features emergency
> responders working a tanker truck crash.
>
> The simulated freeway crash involving several cars and a tanker truck
> is scheduled for Saturday March 28 and will include aerial helicopter
> activity. The scenes to be filmed on Sunday will include an explosion
> with a fireball and billowing smoke. There will be aerial helicopter
> activity throughout the day.
>
> Throughout filming, there will also be intermittent traffic stoppages
> at the entrance to I-280 S/B at both 6TH Street and KING STREET
> whenever there is a stunt being filmed or a helicopter landing or
> taking off. These brief intermittent stoppages will take place
> randomly during filming on the weekend and on the weekdays between 10
> AM and 3 PM.
>
> The California Highway Patrol, the San Francisco Police and Fire
> Departments and other emergency service departments for the City of
> San Francisco and the State of California have been notified in
> advance of this permitted filming.
>
> NBC is currently shooting "Trauma" (working title) in San Francisco
> with the cooperation of the San Francisco Film Commission, the
> California State Film Commission, CALTRANS, the CHP and the SFPD.
> Dario Scardapane is writer and executive producer of the project,
> which will be directed by executive producer Jeffrey Reiner (NBC's
> "Friday Night Lights"). Peter Berg ("Hancock", "Friday Night
> Lights") and Sarah Aubrey ("Friday Night Lights")are also executive
> producers of the pilot from Universal Media Studios in association
> with Film 44. The stars include Derek Luke ("Notorious"), Cliff
> Curtis ("10,000 B.C"), Anastasia Griffith ("Damages"), Aimee Garcia
> ("George Lopez"), Kevin Rankin ("Friday Night Lights") with Jamey
> Sheridan ("Law & Order: Criminal Intent).
>
>
> MEDIA CONTACTS:
> Jessica Nevarez, Universal Media Studios, 818-777-0543 Melissa
> Armstrong, NBC Entertainment, 818-777-2846 Joe Arellano, Deputy
> Director, Mayor's Communications Office,
> 415-554-6163
> Stefanie Coyote, Executive Director, San Francisco Film Commission,
> 415-554-6241
Tuesday, March 17, 2009
Federal and California Tax Credits
I know I have posted blogs about these tax credits already however I found the following to be very straight forward and may be helpful to you if you are confused about what tax credits are available.
The good news is that there are both Federal and California Tax Credits available for certain qualifying buyers of homes that meet the requirements. Note that the Federal and California tax credits are very different from each other, and the methods for claiming the credit are likewise very different.
This summary is provided for general information only and does not apply to any individual situation. Remember to consult with your own tax advisors for how this applies to your personal situation.
1. FEDERAL TAX CREDIT (FIRST-TIME BUYERS ONLY)
Amount: $8,000 if home purchased in 2009, but no more than 10% of the purchase price of the home (half that amount if married filing separately). $7,500 if purchased before 2009.
Expires: December 1, 2009
Only First-Time Homebuyers Can Claim the Credit: In general, buyers can claim the credit if they are a first-time homebuyer. Buyers are considered a first-time homebuyer if: They purchased their main home after April 8, 2008, and before December 1, 2009. The buyer (and spouse, if married) did not own any other main home during the 3-year period ending on the date of purchase.
Main home. A main home is the one the buyer lives in most of the time. Not limited to new construction. It can be a house, houseboat, house-trailer, cooperative apartment, condominium, or other type of residence.
The Credit Cannot Be Claimed If: The buyer’s modified adjusted gross income is $95,000 or more ($170,000 or more if married filing jointly). The buyer is a nonresident alien. The home is located outside the United States. The buyer acquired their home by gift or inheritance. The buyer acquired their home from a related person.
No Repayment of Credit: There is no repayment of this credit if the home is purchased in 2009. However, the buyer must repay the credit if the home ceases to be their main home within the 36-month period beginning on the purchase date. (Note: For homes purchased before 2009, the tax credit is subject to repayment rules.)
2. CALIFORNIA TAX CREDIT (NEW CONSTRUCTION PURCHASES ONLY)
Amount: Up to $10,000. California allows qualified new home buyers a total tax credit amount equal to either five percent of the purchase price or $10,000, whichever is less.
Note: Taxpayers must apply the total tax credit in equal amounts over three successive taxable years (maximum of $3,333 per year) beginning with the taxable year (2009 or 2010) in which the new home is purchased. Special rules apply to married/RDP (Registered Domestic Partners) taxpayers filing separately.
Expires: March 1, 2010.
All Qualified Buyers Can Claim This Credit, Not Just First-Time Home Buyers: 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. The buyer must reside in the new home for a minimum of two years immediately following the purchase date.
Qualified Buyer: A taxpayer who purchases a Qualified Principal Residence that is purchased to be the principal residence of the taxpayer for a minimum of two years, and that is eligible for the homeowner’s exemption (under California Revenue and Taxation Code Section 218).
Qualified Principal Residence – New Construction: Any of the following can qualify if it is new construction (that is, it has never been occupied), is the buyer’s principal residence, and is subject to property tax, whether real or personal property: a single family residence, a condominium, a unit in a cooperative project, a houseboat, a manufactured home, or a mobile home.
First-Come, First-Served (or You Snooze, You Lose): California has allocated $100,000,000 for this tax credit. Buyers must apply for credit allocation from the Franchise Tax Board (“FTB”). Applications will be reviewed and credit allocations will be made on a first-come, first-served basis. Once $100,000,000 has been allocated, the tax credit will no longer be available.
How to apply: Within one week (seven calendar days) after the close of escrow:
· The seller must complete Part I of Form 3528-A, Application for New Home Credit, certifying that the home has never been occupied, and provide a copy to the buyer or escrow person.
· The buyer will complete Parts II & III of Form 3528-A.
· The escrow person on behalf of the seller and buyer will fax the completed Form 3528-A to FTB at 916.845.9754, and provide a copy to the buyer.
Fax is the only delivery method that will be accepted by, and considered for credit allocation by, FTB, as the date and time stamp on the fax will determine the order in which credits are allocated.
TIME IS OF THE ESSENCE!
1. Remember, when the allocated amount of funds ($100,000,000) has been approved for credit by the FTB, there are no more tax credits available.
2. Also, Buyers only have one week after close of escrow to apply for the credit.
For more information on the California tax credit (and a running total of the amount of credit left to be allocated) go to: New Home Credit
or call the Franchise Tax Board at: 888.792.4900 (press 5)
The good news is that there are both Federal and California Tax Credits available for certain qualifying buyers of homes that meet the requirements. Note that the Federal and California tax credits are very different from each other, and the methods for claiming the credit are likewise very different.
This summary is provided for general information only and does not apply to any individual situation. Remember to consult with your own tax advisors for how this applies to your personal situation.
1. FEDERAL TAX CREDIT (FIRST-TIME BUYERS ONLY)
Amount: $8,000 if home purchased in 2009, but no more than 10% of the purchase price of the home (half that amount if married filing separately). $7,500 if purchased before 2009.
Expires: December 1, 2009
Only First-Time Homebuyers Can Claim the Credit: In general, buyers can claim the credit if they are a first-time homebuyer. Buyers are considered a first-time homebuyer if: They purchased their main home after April 8, 2008, and before December 1, 2009. The buyer (and spouse, if married) did not own any other main home during the 3-year period ending on the date of purchase.
Main home. A main home is the one the buyer lives in most of the time. Not limited to new construction. It can be a house, houseboat, house-trailer, cooperative apartment, condominium, or other type of residence.
The Credit Cannot Be Claimed If: The buyer’s modified adjusted gross income is $95,000 or more ($170,000 or more if married filing jointly). The buyer is a nonresident alien. The home is located outside the United States. The buyer acquired their home by gift or inheritance. The buyer acquired their home from a related person.
No Repayment of Credit: There is no repayment of this credit if the home is purchased in 2009. However, the buyer must repay the credit if the home ceases to be their main home within the 36-month period beginning on the purchase date. (Note: For homes purchased before 2009, the tax credit is subject to repayment rules.)
2. CALIFORNIA TAX CREDIT (NEW CONSTRUCTION PURCHASES ONLY)
Amount: Up to $10,000. California allows qualified new home buyers a total tax credit amount equal to either five percent of the purchase price or $10,000, whichever is less.
Note: Taxpayers must apply the total tax credit in equal amounts over three successive taxable years (maximum of $3,333 per year) beginning with the taxable year (2009 or 2010) in which the new home is purchased. Special rules apply to married/RDP (Registered Domestic Partners) taxpayers filing separately.
Expires: March 1, 2010.
All Qualified Buyers Can Claim This Credit, Not Just First-Time Home Buyers: 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. The buyer must reside in the new home for a minimum of two years immediately following the purchase date.
Qualified Buyer: A taxpayer who purchases a Qualified Principal Residence that is purchased to be the principal residence of the taxpayer for a minimum of two years, and that is eligible for the homeowner’s exemption (under California Revenue and Taxation Code Section 218).
Qualified Principal Residence – New Construction: Any of the following can qualify if it is new construction (that is, it has never been occupied), is the buyer’s principal residence, and is subject to property tax, whether real or personal property: a single family residence, a condominium, a unit in a cooperative project, a houseboat, a manufactured home, or a mobile home.
First-Come, First-Served (or You Snooze, You Lose): California has allocated $100,000,000 for this tax credit. Buyers must apply for credit allocation from the Franchise Tax Board (“FTB”). Applications will be reviewed and credit allocations will be made on a first-come, first-served basis. Once $100,000,000 has been allocated, the tax credit will no longer be available.
How to apply: Within one week (seven calendar days) after the close of escrow:
· The seller must complete Part I of Form 3528-A, Application for New Home Credit, certifying that the home has never been occupied, and provide a copy to the buyer or escrow person.
· The buyer will complete Parts II & III of Form 3528-A.
· The escrow person on behalf of the seller and buyer will fax the completed Form 3528-A to FTB at 916.845.9754, and provide a copy to the buyer.
Fax is the only delivery method that will be accepted by, and considered for credit allocation by, FTB, as the date and time stamp on the fax will determine the order in which credits are allocated.
TIME IS OF THE ESSENCE!
1. Remember, when the allocated amount of funds ($100,000,000) has been approved for credit by the FTB, there are no more tax credits available.
2. Also, Buyers only have one week after close of escrow to apply for the credit.
For more information on the California tax credit (and a running total of the amount of credit left to be allocated) go to: New Home Credit
or call the Franchise Tax Board at: 888.792.4900 (press 5)
Thursday, March 12, 2009
Real Estate Rebound.....has the bottom passed us by?
I have definitely noticed an upsurge of buyers at my listing at 1708 Fell St. unit 2 in S.F. I recently posted an entry in my Blog about a home in S.F. that received 41 offers, 20 of them over asking. When I was out on tour last Sunday looking at open homes in Pacifica I found the homes filled with eager buyers looking for deals. I believe the combination of lower pricing, available low interest rates and the stimulus package has unleashed buyers that have sitting back watching the market over the last year.
If this is a sign of the market rebounding then the bottom has already passed us by. As you know the news media is always reporting on doom and gloom however last night Channel 5 CBS news did a report on the signs of a rebound in S.F. If you missed it go to: Real Estate Rebound Video from CBS5.com
With the pick up in buyer activity there is also a pick up in lending activity. The good news is that if you have good credit and work history there are great loans to be had. The challenge is going to be getting a pre-approval in a timely matter. If you have already been recently pre-approved for a mortgage then you are in good shape to make offers. If you are not yet pre-approved and thinking of buying in the next two months then you must get pre-approved before offers can be made. I warn you, the paperwork and documentation needed is extensive; which is one of the reasons why it is taking longer to get pre-approvals now.
Please let me know if you have any questions or need recommendations for a good mortgage broker. Let’s go house hunting!
If this is a sign of the market rebounding then the bottom has already passed us by. As you know the news media is always reporting on doom and gloom however last night Channel 5 CBS news did a report on the signs of a rebound in S.F. If you missed it go to: Real Estate Rebound Video from CBS5.com
With the pick up in buyer activity there is also a pick up in lending activity. The good news is that if you have good credit and work history there are great loans to be had. The challenge is going to be getting a pre-approval in a timely matter. If you have already been recently pre-approved for a mortgage then you are in good shape to make offers. If you are not yet pre-approved and thinking of buying in the next two months then you must get pre-approved before offers can be made. I warn you, the paperwork and documentation needed is extensive; which is one of the reasons why it is taking longer to get pre-approvals now.
Please let me know if you have any questions or need recommendations for a good mortgage broker. Let’s go house hunting!
Wednesday, March 11, 2009
Here are some useful, interesting and/or fun websites for San Francisco and the Bay Area. Hope you enjoy them.
Everything within walking distance to your home
Chronicle list of top 100 Bay Area Restaurants
Chronicle MAP of top 100 Bay Area Restaurants
Chronicle Top 20 Wines under $40.00
San Francisco Biking Resources
Bay Area Hiking Trails
S.F. Neighborhood news and information
Bay Area Public Transportation
Bay Area Trip Planner and Traffic Conditions
S.F. neighborhood crime maps
San Mateo Crime Maps
Disaster Prepardness,Information and Resources
San Mateo County Recycling Resources
S.F. Recycling Resources
Chronicle list of top 100 Bay Area Restaurants
Chronicle MAP of top 100 Bay Area Restaurants
Chronicle Top 20 Wines under $40.00
San Francisco Biking Resources
Bay Area Hiking Trails
S.F. Neighborhood news and information
Bay Area Public Transportation
Bay Area Trip Planner and Traffic Conditions
S.F. neighborhood crime maps
San Mateo Crime Maps
Disaster Prepardness,Information and Resources
San Mateo County Recycling Resources
S.F. Recycling Resources
Tuesday, March 10, 2009
Are you on the fence about home ownership?
With all the doom and gloom in the media many renters are in a quandry about whether now is the time to take advantage of the buyers market. If you are tired of paying your landlords mortgage yet not sure if you should enter the world of homeownership here are some things to consider.....
Do you need tax write offs?
Mortgage Interest is one of the biggest tax incentives to owning a home. The interest you pay on your mortgage is tax-deductible up to $1 million.
You can also deduct the local property taxes that you pay each year which applies to your principle home and any others you may own.
You may also be able to deduct the points that were paid to the lender to secure your mortgage.
First-time home buyer tax credit of $8,000 that will not have to be repaid if you keep your home for at least three years.
Mortgage Insurance (PMI or MI) can be deducted in most cases for mortgages issued after 2006 and up to 2010 (may be extended by congress). There are income limits so talk to your tax professional.
When you are ready to sell you will make up to $250,000 in tax-free profit if single and up to $500,00 if married.
Home pricing is dropping and mortgage rates are low and you can't ask for a better combination if you are looking to buy. However none of this matters if you can't qualify for financing. With today's tougher economy lenders have tightened their standards for all types of mortgage financing. There are many factors involved in determining what interest rate you qualify for or the type of loan you can get. Talking with a good mortgage consultant will help you determine if there is a loan that is right for you and your financial situation. If you need a recommendation for a good mortgage broker, give me a call.
Do you need tax write offs?
Mortgage Interest is one of the biggest tax incentives to owning a home. The interest you pay on your mortgage is tax-deductible up to $1 million.
You can also deduct the local property taxes that you pay each year which applies to your principle home and any others you may own.
You may also be able to deduct the points that were paid to the lender to secure your mortgage.
First-time home buyer tax credit of $8,000 that will not have to be repaid if you keep your home for at least three years.
Mortgage Insurance (PMI or MI) can be deducted in most cases for mortgages issued after 2006 and up to 2010 (may be extended by congress). There are income limits so talk to your tax professional.
When you are ready to sell you will make up to $250,000 in tax-free profit if single and up to $500,00 if married.
Home pricing is dropping and mortgage rates are low and you can't ask for a better combination if you are looking to buy. However none of this matters if you can't qualify for financing. With today's tougher economy lenders have tightened their standards for all types of mortgage financing. There are many factors involved in determining what interest rate you qualify for or the type of loan you can get. Talking with a good mortgage consultant will help you determine if there is a loan that is right for you and your financial situation. If you need a recommendation for a good mortgage broker, give me a call.
Friday, March 6, 2009
Multiple offers on homes? Buyers are finding great "deals" too good to pass up.
I know it's hard to imagine in this market however a property that shows real value will not only sell, it may also get multiple offers. There are many "deals" to be had for serious buyers.
Many homes that are bank owned are getting multiple offers including over asking due to the very attractive asking prices. A fixer home in the Excelsior district in S.F. recently received 42 offers with half over asking.
A property in Pacifica in a very desirable neighborhood sold in 21 days $50,000 below asking.
Even with all the doom and gloom of the media and the message that houses are not selling......when consumers qualify for conventional or FHA loans and they recognize good value, the offers do come.
Many homes that are bank owned are getting multiple offers including over asking due to the very attractive asking prices. A fixer home in the Excelsior district in S.F. recently received 42 offers with half over asking.
A property in Pacifica in a very desirable neighborhood sold in 21 days $50,000 below asking.
Even with all the doom and gloom of the media and the message that houses are not selling......when consumers qualify for conventional or FHA loans and they recognize good value, the offers do come.
Tuesday, March 3, 2009
March 2009 Market Update
Foreclosure Sales in San Francisco
San Francisco has the lowest foreclosure rate of any county in the Bay Area, but that rate is accelerating. Of the 4600+ SF home sales reported in MLS in the last 12 months, sales of REO (bank-owned) properties equaled only 3%, but by last November that had increased to 10%, and as of 2/17/09, they constituted over 15% of all houses and condos currently pending sale. 69% of city REO activity is in houses; 22% in condos; 8% in 2-4 unit buildings; and 1% in TICs. Median sales prices for REO homes—at $450k to $500k—are about 60% of the median sales price for the entire city, and though scattered throughout SF, REOs are predominately found in the South/SE neighborhoods stretching from Oceanview to Bayview, and to a lesser degree in SOMA and Bernal Heights.
So far, there has been very little REO activity in areas such as St. Francis Wood, Noe Valley, the Richmond, Pacific Heights and Russian/Nob Hills—though one REO condo sold for over $2m in the Marina, and an REO house is now listed for over $13m in Pacific Heights.
Over 50% of REO listings accept offers within 21 days of going on market, and those sell, on average, at 4% to 5% over list price—buyers snapping up perceived bargains.
These foreclosure stats do not include homes sold at auction.
Upper-End Home Market Wilts
Sales of San Francisco homes under $1,000,000 continue at similar rates as last year, however home sales between $1m and $2m have fallen by over 50% and in the ultra high-end over $2m, sales have declined by almost 70%. Thus days-on-market (the time it takes for the average listing to sell) and months-supply-of-inventory (the time it would take for all existing listings to sell at current rates of activity) for the more expensive homes have soared as well. This huge change in buying trends in San Francisco—a complete flip from a year earlier—began in mid-September with the global market meltdown and all it entailed—including a significant deterioration in high-end home financing conditions. Buyers who can pay all or mostly cash are now kings.
New Condo Developments Reduce Prices
Many of the larger new condo developments in the city—generally located in South Beach, SOMA & Mission Bay—have recently announced across-the-board price reductions of 15% to 25%. This is a classic example of supply and demand dynamics—inventory increasing as demand declines—exacerbated by the increased difficulty buyers are facing in securing financing. Some of these new projects are facing deadlines with their lenders pertaining to achievement of a contractually specified minimum percentage of total units sold by a certain date—providing significant motivation to offer aggressive pricing and terms.
Regarding Statistics
“There are three kinds of lies: lies, damned lies and statistics”
Attributed to Mark Twain
One hears California home prices have dropped 40% or reads SF Metro Area prices have declined 30%. One recent article insisted some SF districts had experienced double-digit appreciation in 2008. (Sorry, no.) And so on. The media loves dramatic—i.e. usually bad—news; some agents deliver only the rosiest view. These analyses might quote median prices, average prices, dollar per square foot, or values based upon secret algorithms—each of which may generate different conclusions. They can encompass sales of houses, condos, TICs, multi-unit buildings, resale homes, new construction, or any mixture thereof—which can be dissimilar markets. If the calculation is based on too short a time period, the number of sales is too small to be statistically reliable; if the period is too long, it may mix data from both before and after major market shifts, muddying the current reality.
With statistics, the devil’s always in the details.
Averages are easily skewed by one or two sales higher or lower than usual. The median price, most often quoted, is that price at which half the homes sell for more and half sell for less, and can be dramatically affected by changes in buying trends as well as changes in values. If the market makes a shift to lower-end homes, such as has happened recently because of financing difficulties for more expensive homes and increasing foreclosure sales in less affluent areas, the drop in median price is larger than the decline in values. The median sales price for houses in SF has been hammered by the numerous foreclosure sales in Bayview-Excelsior—that doesn’t mean that Noe Valley or Presidio Heights values have fallen 30% to 40% in the past year.
Location, location: the Bay Area is full of financial microclimates—for example, depending on location, foreclosure sales range from less than 1% to more than 60% of total sales. The statistics for California don’t apply to the Bay Area; Bay Area stats don’t apply to SF; city stats don’t apply to specific SF neighborhoods. There are city neighborhoods—generally in the SE quadrant—where values have dropped 20% to 30% from their peak. Most have probably seen declines in the 10% to 15% range. In some neighborhoods, there have been too few sales since September 15th to make a meaningful calculation.
Statistics are generalities and the market is changing rapidly. Of course, ultimately, market value is defined as that price a qualified buyer is willing to pay when the property has been well exposed. Our goal at Paragon is to provide the most straightforward, reliable and meaningful statistics available. Here are our latest analyses of the SF real estate market:
Average Dollar per Square Foot in Selected Bay Area Zip Codes
Antioch $127
Vallejo $144
Hayward $253
SF Bayview $342
Danville $375
Pleasanton $386
Daly City $397
HMB $402
Pacifica $464
San Mateo $478
The Sunset $564
Burlingame $602
Belmont $631
Potrero Hill $658
Mt. View $670
Los Altos $779
Haight Area $874
Palo Alto $976
Noe Valley $922
SF Marina $1127
Atherton $1179
Per DataQuick for 2008 home sales: approximations for the purposes of comparison only. Cities may have multiple zip codes with differing values and zip codes may overlap dissimilar neighborhoods. Values have generally declined since 9/15/08.
Sales Price to List Price
In a seller’s market, the percentage of Sales Price to original List Price (SP/LP) is typically and unsurprisingly high. In a buyer’s market it naturally declines. Thus, in May 2007, probably the peak of the market in SF, the average SP/LP for SF houses was an incredible 104%—4% over asking price (think multiple offers)—but by early 2009, the average SP/LP had fallen to 93% (7% below asking). The parameters of negotiation have changed.
According to Broker Metrics, for YTD sales of houses and condos, Paragon is now the #1 SF brokerage for negotiating their buyers the largest discount off original list price. YTD 2009, our average Sales Price to original List Price ratio when representing buyers is 6.5% below the average for city brokerages as a whole. We’re 5% below the #2 brokerage. That adds up to a lot of money. Whether representing buyers or sellers, I work aggressively to negotiate the best possible price and terms—because that is one of the most important things clients pay us to do.
San Francisco has the lowest foreclosure rate of any county in the Bay Area, but that rate is accelerating. Of the 4600+ SF home sales reported in MLS in the last 12 months, sales of REO (bank-owned) properties equaled only 3%, but by last November that had increased to 10%, and as of 2/17/09, they constituted over 15% of all houses and condos currently pending sale. 69% of city REO activity is in houses; 22% in condos; 8% in 2-4 unit buildings; and 1% in TICs. Median sales prices for REO homes—at $450k to $500k—are about 60% of the median sales price for the entire city, and though scattered throughout SF, REOs are predominately found in the South/SE neighborhoods stretching from Oceanview to Bayview, and to a lesser degree in SOMA and Bernal Heights.
So far, there has been very little REO activity in areas such as St. Francis Wood, Noe Valley, the Richmond, Pacific Heights and Russian/Nob Hills—though one REO condo sold for over $2m in the Marina, and an REO house is now listed for over $13m in Pacific Heights.
Over 50% of REO listings accept offers within 21 days of going on market, and those sell, on average, at 4% to 5% over list price—buyers snapping up perceived bargains.
These foreclosure stats do not include homes sold at auction.
Upper-End Home Market Wilts
Sales of San Francisco homes under $1,000,000 continue at similar rates as last year, however home sales between $1m and $2m have fallen by over 50% and in the ultra high-end over $2m, sales have declined by almost 70%. Thus days-on-market (the time it takes for the average listing to sell) and months-supply-of-inventory (the time it would take for all existing listings to sell at current rates of activity) for the more expensive homes have soared as well. This huge change in buying trends in San Francisco—a complete flip from a year earlier—began in mid-September with the global market meltdown and all it entailed—including a significant deterioration in high-end home financing conditions. Buyers who can pay all or mostly cash are now kings.
New Condo Developments Reduce Prices
Many of the larger new condo developments in the city—generally located in South Beach, SOMA & Mission Bay—have recently announced across-the-board price reductions of 15% to 25%. This is a classic example of supply and demand dynamics—inventory increasing as demand declines—exacerbated by the increased difficulty buyers are facing in securing financing. Some of these new projects are facing deadlines with their lenders pertaining to achievement of a contractually specified minimum percentage of total units sold by a certain date—providing significant motivation to offer aggressive pricing and terms.
Regarding Statistics
“There are three kinds of lies: lies, damned lies and statistics”
Attributed to Mark Twain
One hears California home prices have dropped 40% or reads SF Metro Area prices have declined 30%. One recent article insisted some SF districts had experienced double-digit appreciation in 2008. (Sorry, no.) And so on. The media loves dramatic—i.e. usually bad—news; some agents deliver only the rosiest view. These analyses might quote median prices, average prices, dollar per square foot, or values based upon secret algorithms—each of which may generate different conclusions. They can encompass sales of houses, condos, TICs, multi-unit buildings, resale homes, new construction, or any mixture thereof—which can be dissimilar markets. If the calculation is based on too short a time period, the number of sales is too small to be statistically reliable; if the period is too long, it may mix data from both before and after major market shifts, muddying the current reality.
With statistics, the devil’s always in the details.
Averages are easily skewed by one or two sales higher or lower than usual. The median price, most often quoted, is that price at which half the homes sell for more and half sell for less, and can be dramatically affected by changes in buying trends as well as changes in values. If the market makes a shift to lower-end homes, such as has happened recently because of financing difficulties for more expensive homes and increasing foreclosure sales in less affluent areas, the drop in median price is larger than the decline in values. The median sales price for houses in SF has been hammered by the numerous foreclosure sales in Bayview-Excelsior—that doesn’t mean that Noe Valley or Presidio Heights values have fallen 30% to 40% in the past year.
Location, location: the Bay Area is full of financial microclimates—for example, depending on location, foreclosure sales range from less than 1% to more than 60% of total sales. The statistics for California don’t apply to the Bay Area; Bay Area stats don’t apply to SF; city stats don’t apply to specific SF neighborhoods. There are city neighborhoods—generally in the SE quadrant—where values have dropped 20% to 30% from their peak. Most have probably seen declines in the 10% to 15% range. In some neighborhoods, there have been too few sales since September 15th to make a meaningful calculation.
Statistics are generalities and the market is changing rapidly. Of course, ultimately, market value is defined as that price a qualified buyer is willing to pay when the property has been well exposed. Our goal at Paragon is to provide the most straightforward, reliable and meaningful statistics available. Here are our latest analyses of the SF real estate market:
Average Dollar per Square Foot in Selected Bay Area Zip Codes
Antioch $127
Vallejo $144
Hayward $253
SF Bayview $342
Danville $375
Pleasanton $386
Daly City $397
HMB $402
Pacifica $464
San Mateo $478
The Sunset $564
Burlingame $602
Belmont $631
Potrero Hill $658
Mt. View $670
Los Altos $779
Haight Area $874
Palo Alto $976
Noe Valley $922
SF Marina $1127
Atherton $1179
Per DataQuick for 2008 home sales: approximations for the purposes of comparison only. Cities may have multiple zip codes with differing values and zip codes may overlap dissimilar neighborhoods. Values have generally declined since 9/15/08.
Sales Price to List Price
In a seller’s market, the percentage of Sales Price to original List Price (SP/LP) is typically and unsurprisingly high. In a buyer’s market it naturally declines. Thus, in May 2007, probably the peak of the market in SF, the average SP/LP for SF houses was an incredible 104%—4% over asking price (think multiple offers)—but by early 2009, the average SP/LP had fallen to 93% (7% below asking). The parameters of negotiation have changed.
According to Broker Metrics, for YTD sales of houses and condos, Paragon is now the #1 SF brokerage for negotiating their buyers the largest discount off original list price. YTD 2009, our average Sales Price to original List Price ratio when representing buyers is 6.5% below the average for city brokerages as a whole. We’re 5% below the #2 brokerage. That adds up to a lot of money. Whether representing buyers or sellers, I work aggressively to negotiate the best possible price and terms—because that is one of the most important things clients pay us to do.
Sunday, March 1, 2009
Are you on the roller coaster? I'd like to hear your comments...
I get asked many times...."Do you think prices will drop further?", "What do you think are going to happen to rates?" If I (or anyone else) could definitively answer those questions, then I would be rich and sitting on my own private Island.
The real estate market has ALWAYS had ups and downs. The last time we had a significant drop in housing prices was in 1990-1991. Prices fell until 1994 and then the market began to rebound and prices continued to increase for the next 13 years.
Currently 30 yr mortgage rates are averaging 5%. For those of us that have either been in real estate or bought/sold over the last 20 years a single digit rate is phenominal. When I bought my first home in S.F. in 1986 the interest rate was 12.5% and that was a great "deal" since rates in the early 1980's were at 18%.
Timing is everything! Whether you are an investor or individual buyer, this is a fabulous time to purchase a property if you plan on holding on to the property and riding out the market. Property values will rise again and when they do, so will your equity.
I bought my current home in 1996. I watched the value rise over $600,000 during the peak in 2007. Since I had no intention of selling my home that equity was only "pie in the sky". As of today the value of my home has dropped by half since the peak. Am I freaked out that my homes value has dropped? No. I bought during a buyers market therefore I still have equity left in my home. I did not loose $300,000 because I never had $600,000 in my pocket. The only time the value of your home matters is the day you sell and the day you buy. If I was upside down in my home and am not planning to sell, then all I can do is continue to ride out the market and hope that when I do plan to sell the market is a sellers market.
In the meantime I am enjoying home ownership, getting the needed tax write-offs, and not giving my hard earned money away to a landlord so that they can get the benefits of home ownership.
What we can be sure of is that the market will ALWAYS flucuate and we can be sure that home prices and mortgage rates will continue to go up and down. Only you can decide if this is the time for you to take advantage of a buyers market. My recommendation is that you make the decision based on your personal situation and not based on the emotional roller coaster that surrounds you. How do you decide if the time is right for you to take advantage of this buyers market? Ask yourself the following:
Do I want to own a home?
Can I get approved for a loan?
Do I have money for a down payment?
Can I afford the monthly payments?
Do I have a back-up plan if I were to loose my job? (I know, a touchy subject for some people)
Is now the right time to sell? Only if you have to based on your personal situation.
Here is an excerpt from an article by Dean Rizzi at Guarrantee Mortgage. Is your choice to ride the roller coaster or to step off and make decisions based on your own personal situation? I would LOVE to hear what you think?
"We're all familiar with the bromide “talk is cheap.” Maybe it's not so cheap, if we are talking ourselves into a state of despair. People everywhere are likening the current economic environment to the Great Depression, which followed the October 1929 stock market crash and lasted until the United States entered World War II.
Revisiting the Great Depression might seem a logical consequence of our economic situation, but the constant comparison is contributing to current pessimism because too many of us are latching onto the Great Depression as a model of expectations. This latching on, in turn, is reducing consumers’ willingness to spend and businesses’ willingness to expand.
There's no reason to go down that road. Yes, unemployment is approaching 8%. Yes, housing prices have fallen off a cliff in some parts of the country (but in fewer parts then most would expect). Yes, the economy has contracted (operative term being “has contracted”). But there are many bright spots as well: We have little inflation, a very resilient economy, rising wage rates (it's true), 30-year fixed-rate mortgages at 5%, and unbelievable values in the housing market.
Yes, we can talk ourselves miserable, but why should we do that? This country offers too many positives and too much potential. Besides, isn't life just a little too short to be unnecessarily miserable?"
The real estate market has ALWAYS had ups and downs. The last time we had a significant drop in housing prices was in 1990-1991. Prices fell until 1994 and then the market began to rebound and prices continued to increase for the next 13 years.
Currently 30 yr mortgage rates are averaging 5%. For those of us that have either been in real estate or bought/sold over the last 20 years a single digit rate is phenominal. When I bought my first home in S.F. in 1986 the interest rate was 12.5% and that was a great "deal" since rates in the early 1980's were at 18%.
Timing is everything! Whether you are an investor or individual buyer, this is a fabulous time to purchase a property if you plan on holding on to the property and riding out the market. Property values will rise again and when they do, so will your equity.
I bought my current home in 1996. I watched the value rise over $600,000 during the peak in 2007. Since I had no intention of selling my home that equity was only "pie in the sky". As of today the value of my home has dropped by half since the peak. Am I freaked out that my homes value has dropped? No. I bought during a buyers market therefore I still have equity left in my home. I did not loose $300,000 because I never had $600,000 in my pocket. The only time the value of your home matters is the day you sell and the day you buy. If I was upside down in my home and am not planning to sell, then all I can do is continue to ride out the market and hope that when I do plan to sell the market is a sellers market.
In the meantime I am enjoying home ownership, getting the needed tax write-offs, and not giving my hard earned money away to a landlord so that they can get the benefits of home ownership.
What we can be sure of is that the market will ALWAYS flucuate and we can be sure that home prices and mortgage rates will continue to go up and down. Only you can decide if this is the time for you to take advantage of a buyers market. My recommendation is that you make the decision based on your personal situation and not based on the emotional roller coaster that surrounds you. How do you decide if the time is right for you to take advantage of this buyers market? Ask yourself the following:
Do I want to own a home?
Can I get approved for a loan?
Do I have money for a down payment?
Can I afford the monthly payments?
Do I have a back-up plan if I were to loose my job? (I know, a touchy subject for some people)
Is now the right time to sell? Only if you have to based on your personal situation.
Here is an excerpt from an article by Dean Rizzi at Guarrantee Mortgage. Is your choice to ride the roller coaster or to step off and make decisions based on your own personal situation? I would LOVE to hear what you think?
"We're all familiar with the bromide “talk is cheap.” Maybe it's not so cheap, if we are talking ourselves into a state of despair. People everywhere are likening the current economic environment to the Great Depression, which followed the October 1929 stock market crash and lasted until the United States entered World War II.
Revisiting the Great Depression might seem a logical consequence of our economic situation, but the constant comparison is contributing to current pessimism because too many of us are latching onto the Great Depression as a model of expectations. This latching on, in turn, is reducing consumers’ willingness to spend and businesses’ willingness to expand.
There's no reason to go down that road. Yes, unemployment is approaching 8%. Yes, housing prices have fallen off a cliff in some parts of the country (but in fewer parts then most would expect). Yes, the economy has contracted (operative term being “has contracted”). But there are many bright spots as well: We have little inflation, a very resilient economy, rising wage rates (it's true), 30-year fixed-rate mortgages at 5%, and unbelievable values in the housing market.
Yes, we can talk ourselves miserable, but why should we do that? This country offers too many positives and too much potential. Besides, isn't life just a little too short to be unnecessarily miserable?"
Friday, February 27, 2009
Earn up to $18,000 in tax credits for new home buyers
Ok, based on what I have been reading; here is my understanding on the mortgage tax credits that have been approved......
$10,000 California State Tax Credit:
The $10,000 tax credit applies to new home/condo's (not re-sale of existing home/condo) purchased as primary residences between March 1, 2009 and March 1, 2010. Tax credit is for $10,000 or 5% of the purchase price, whichever is lower.
Uncle Arnold will deduct $3,333 from the buyers taxes the first year of the purchase as well as the two following years. The owner MUST occupy as principle residence for the first two years or forfeit the tax break.
$8,000 First Time Buyer Federal Tax Credit:
You must purchase a home BEFORE December 1, 2009.
The credit only applies to a buyer who has not owned a principle residence in the prior three years.
To qualify for the maximum credit, single buyers must have an annual income of $75,000 or less and married buyers can have up to a $150,000 joint annual income.
The tax credit is equal to 10% of the purchase price with a limit of $8,000
The tax break does NOT have to be repaid....The $8,000 is your to keep!
Please contact your tax consultant to verify the above and how it will impact you personally. ....PLEASE NOTE, any of this is subject to change at the whim of our elected officials.....ok, I am just the messenger, I don't make the rules. :)
$10,000 California State Tax Credit:
The $10,000 tax credit applies to new home/condo's (not re-sale of existing home/condo) purchased as primary residences between March 1, 2009 and March 1, 2010. Tax credit is for $10,000 or 5% of the purchase price, whichever is lower.
Uncle Arnold will deduct $3,333 from the buyers taxes the first year of the purchase as well as the two following years. The owner MUST occupy as principle residence for the first two years or forfeit the tax break.
$8,000 First Time Buyer Federal Tax Credit:
You must purchase a home BEFORE December 1, 2009.
The credit only applies to a buyer who has not owned a principle residence in the prior three years.
To qualify for the maximum credit, single buyers must have an annual income of $75,000 or less and married buyers can have up to a $150,000 joint annual income.
The tax credit is equal to 10% of the purchase price with a limit of $8,000
The tax break does NOT have to be repaid....The $8,000 is your to keep!
Please contact your tax consultant to verify the above and how it will impact you personally. ....PLEASE NOTE, any of this is subject to change at the whim of our elected officials.....ok, I am just the messenger, I don't make the rules. :)
Thursday, February 26, 2009
Speier plan would aid refinancing in Bay Area
Carolyn Said, Chronicle Staff Writer
Thursday, February 26, 2009
(02-25) 21:04 PST -- Legislation heading to the floor of the House today would help more Bay Area homeowners qualify for the mortgage relief in President Obama's housing rescue plan.
After reading an article in Sunday's Chronicle indicating that many people holding the pricy mortgages common to the Bay Area would not be able to take advantage of low-cost refinances, Rep. Jackie Speier, D-Hillsborough, amended a bill scheduled for a House vote.
"After reading your article, I thought, this isn't going to work for California," Speier said.
"I've drafted an amendment so that rather than being limited to whether the loan was conforming at time of origination, it will be based on (whether it's conforming at) the time of (modification), which will take the limit up to $729,750 in high-cost areas. This should make more people in the Bay Area eligible."
Speier's amendment addresses an aspect of the plan that encourages mortgage services to modify loans to make them more affordable for struggling borrowers. The modifications are supposed to reduce monthly payments to 31 percent of a borrower's income for five years; they also could include lowering the principal or refinancing the loan.
The amendment says that loan modifications must be available to loans that are "conforming," meaning those that can be securitized or guaranteed by Freddie Mac or Fannie Mae. The conforming loan limit was $417,000 until July 1, 2007. About 60 percent of homes purchased in the expensive Bay Area in 2005 and 2006 were bought with higher-cost "jumbo" loans above $417,000; about 30 percent of homes in California were jumbos in those years, according to MDA DataQuick. The limit is now $729,750 in high-cost regions, including most of the Bay Area.
"This puts some parameters around what the Obama administration didn't articulate in its plan and makes it so an important program for the Bay Area and surrounding counties will be widely available to folks, particularly in those areas where mortgages are very high-cost," said Drew Hammill, a spokesman for House Speaker Nancy Pelosi.
Hammill added that loan modifications might be available for even-larger loans, but this language "protects the conforming loan limit in particular areas, which is vital."
Pelosi supports the amendment and the bill, which is expected to pass the House.
A central aspect of the bill, called the "Helping Families Save Their Homes Act of 2009," is a change to bankruptcy law. That controversial proposal, fiercely opposed by the lending industry, would allow judges to "cram down" or reduce the principal owed on mortgages to the home's actual value.
The bill also attempts to resurrect the Hope for Homeowners program, another plan to help modify mortgages, which was introduced with great fanfare last year but has helped only a handful of homeowners, according to reports. It increases incentives, lowers monthly payments for borrowers who qualify, and attempts to simplify some of the terms and requirements.
Another part of the bill would indemnify loan servicers from being sued by investors if they modified mortgages.
Thursday, February 26, 2009
(02-25) 21:04 PST -- Legislation heading to the floor of the House today would help more Bay Area homeowners qualify for the mortgage relief in President Obama's housing rescue plan.
After reading an article in Sunday's Chronicle indicating that many people holding the pricy mortgages common to the Bay Area would not be able to take advantage of low-cost refinances, Rep. Jackie Speier, D-Hillsborough, amended a bill scheduled for a House vote.
"After reading your article, I thought, this isn't going to work for California," Speier said.
"I've drafted an amendment so that rather than being limited to whether the loan was conforming at time of origination, it will be based on (whether it's conforming at) the time of (modification), which will take the limit up to $729,750 in high-cost areas. This should make more people in the Bay Area eligible."
Speier's amendment addresses an aspect of the plan that encourages mortgage services to modify loans to make them more affordable for struggling borrowers. The modifications are supposed to reduce monthly payments to 31 percent of a borrower's income for five years; they also could include lowering the principal or refinancing the loan.
The amendment says that loan modifications must be available to loans that are "conforming," meaning those that can be securitized or guaranteed by Freddie Mac or Fannie Mae. The conforming loan limit was $417,000 until July 1, 2007. About 60 percent of homes purchased in the expensive Bay Area in 2005 and 2006 were bought with higher-cost "jumbo" loans above $417,000; about 30 percent of homes in California were jumbos in those years, according to MDA DataQuick. The limit is now $729,750 in high-cost regions, including most of the Bay Area.
"This puts some parameters around what the Obama administration didn't articulate in its plan and makes it so an important program for the Bay Area and surrounding counties will be widely available to folks, particularly in those areas where mortgages are very high-cost," said Drew Hammill, a spokesman for House Speaker Nancy Pelosi.
Hammill added that loan modifications might be available for even-larger loans, but this language "protects the conforming loan limit in particular areas, which is vital."
Pelosi supports the amendment and the bill, which is expected to pass the House.
A central aspect of the bill, called the "Helping Families Save Their Homes Act of 2009," is a change to bankruptcy law. That controversial proposal, fiercely opposed by the lending industry, would allow judges to "cram down" or reduce the principal owed on mortgages to the home's actual value.
The bill also attempts to resurrect the Hope for Homeowners program, another plan to help modify mortgages, which was introduced with great fanfare last year but has helped only a handful of homeowners, according to reports. It increases incentives, lowers monthly payments for borrowers who qualify, and attempts to simplify some of the terms and requirements.
Another part of the bill would indemnify loan servicers from being sued by investors if they modified mortgages.
Composting Tips
My family has been composting for several years. I purchased a compost bin from our recycle provider which at the time was about $35.00 and keep it in our backyard. We use the plastic containers that salad mix comes in and fill up those during the week with all our organic scraps (no meat, cooked foods to keep the racoons away). When they get full I bring them out to the yard and dump them into the compost bin and voila...over time it all breaks down and every spring we have fresh soil for planting and the vegetable garden. Here are some helpful tips for composting at home: BTW, if you live in S.F. or don't have a yard for composting no worries, you can still compost! Go to: http://journeytoforever.org/compost_indoor.html
Composting—the controlled natural decomposition of organic material such as leaves, grass clippings, prunings, and fruit and vegetable scraps—happens with the help of oxygen-using microorganisms that transform these materials into compost, or humus, a nutrient-rich and biologically diverse soil enricher. The benefits are many. You save money by reducing the need to purchase fertilizers and soil amendments. Compost improves soil health and fertility and prevents erosion. It conserves water by helping the soil hold more moisture. And it helps the environment by diverting valuable organic materials from the landfill or incinerator. Aerating your compost pile aids bacterial action and speeds up the composting process.
Collecting vegetable and fruit parings, stale bread, and other scraps for your compost pile need not detract from your kitchen décor. A handpainted bowl covered with a perforated lid, a colander, or a cloth shields materials from view and insects, yet allows air to circulate, preventing mold and odors. For added style, use a china soup tureen (the ladle opening conveniently lets in air) or a small splatterware cooking pot with a lid.
Several companies offer sleek countertop collectors for compostibles. Gardeners Supply (Gardeners.com, (888) 833-1412) makes a 3.5-quart kitchen compost crock, available in cobalt blue or white, that looks like attractive china kitchenware. An activated carbon filter in the lid prevents odors, so you can go days before emptying. The company also offers five-quart containers in stainless steel and pressed copper, and a gallon-sized terra-cotta crock. Biodegradable cornstarch plastic liners are also available to keep your countertop container from getting messy.
The humble outdoor composter, where organics are transformed into humus, is often relegated to a corner of the yard, out of view. For people with small yards, the idea of an open compost pile or a black plastic composter within sight of a patio or bay window can be a deal breaker. However, with a little creativity, composters can complement your backyard scenery.
Bins are easy to make out of wood, scrap pallets, wire fencing, fence boards, and barrels. These low- and no-cost composters can become attractive with the addition of finished siding. Picket and bamboo fencing make an easy composter or can enclose an existing one. Seek out fencing with hardy slats and weather-resistant wiring. Bamboo and Rattan Works (BambooAndRattan.com, (732) 370-0220) offers half-inch bamboo-slat fencing as well as others made from flexible willow, twigs, and reeds. Hay bales, mud blocks, and even bricks also can be used as composter walls.
Another method is to insert five-foot-high branches or bamboo culms into the ground in a three- or four-foot-diameter circle. Space the branches three inches apart to let in air but hold the pile securely. Or, space them four or more inches apart and weave grapevines or willow branches through them for a more securely knit structure that hides its contents.
You can make an enclosed composter by drilling air holes in a barrel or an attractive plastic container. Remember that the ideal composter size is three or four feet high and wide; this allows for a critical mass of organics and biology. (If yours is smaller, insulate it to keep the biology cooking, and add worms.)
To further beautify your composter, plant evergreens, shrubs, decorative grasses, or climbing flowers such as nasturtium around it. (Beware of using morning glory and other invasive plants that may seed your compost with plants you don’t want to spread!) You might also plant nutrient-loving vegetables and berries around the perimeter to take advantage of the liquid nutrients that leach from the bottom of the composter.
Erect trellises around your composter and train primrose up them. This also helps ward off hungry critters. You can also buy a beautiful, ready-made flowering composter. The Scrap Eater by Sun Frost (SunFrost.com, (707) 822-9095) is an oak wine barrel brimming with plants. Hidden in the middle is a composter topped with a glass dome that helps heat up the pile. In addition to the plants, the composter is insulated with an air space, assuring that the composting microbes stay warm and effective.
Composting Tips
* In a countertop collector, place a used paper towel or half a sheet of newspaper on the bottom of the container so organics slide out easily. Newspaper and paper towels will also compost.
* An easy way to compost is to “batch” it: Fill one composter, then use another. When the second is full, the first will likely contain completely finished compost.
* Keep your compost moist! It should be as damp as a well-wrung sponge.
Composting—the controlled natural decomposition of organic material such as leaves, grass clippings, prunings, and fruit and vegetable scraps—happens with the help of oxygen-using microorganisms that transform these materials into compost, or humus, a nutrient-rich and biologically diverse soil enricher. The benefits are many. You save money by reducing the need to purchase fertilizers and soil amendments. Compost improves soil health and fertility and prevents erosion. It conserves water by helping the soil hold more moisture. And it helps the environment by diverting valuable organic materials from the landfill or incinerator. Aerating your compost pile aids bacterial action and speeds up the composting process.
Collecting vegetable and fruit parings, stale bread, and other scraps for your compost pile need not detract from your kitchen décor. A handpainted bowl covered with a perforated lid, a colander, or a cloth shields materials from view and insects, yet allows air to circulate, preventing mold and odors. For added style, use a china soup tureen (the ladle opening conveniently lets in air) or a small splatterware cooking pot with a lid.
Several companies offer sleek countertop collectors for compostibles. Gardeners Supply (Gardeners.com, (888) 833-1412) makes a 3.5-quart kitchen compost crock, available in cobalt blue or white, that looks like attractive china kitchenware. An activated carbon filter in the lid prevents odors, so you can go days before emptying. The company also offers five-quart containers in stainless steel and pressed copper, and a gallon-sized terra-cotta crock. Biodegradable cornstarch plastic liners are also available to keep your countertop container from getting messy.
The humble outdoor composter, where organics are transformed into humus, is often relegated to a corner of the yard, out of view. For people with small yards, the idea of an open compost pile or a black plastic composter within sight of a patio or bay window can be a deal breaker. However, with a little creativity, composters can complement your backyard scenery.
Bins are easy to make out of wood, scrap pallets, wire fencing, fence boards, and barrels. These low- and no-cost composters can become attractive with the addition of finished siding. Picket and bamboo fencing make an easy composter or can enclose an existing one. Seek out fencing with hardy slats and weather-resistant wiring. Bamboo and Rattan Works (BambooAndRattan.com, (732) 370-0220) offers half-inch bamboo-slat fencing as well as others made from flexible willow, twigs, and reeds. Hay bales, mud blocks, and even bricks also can be used as composter walls.
Another method is to insert five-foot-high branches or bamboo culms into the ground in a three- or four-foot-diameter circle. Space the branches three inches apart to let in air but hold the pile securely. Or, space them four or more inches apart and weave grapevines or willow branches through them for a more securely knit structure that hides its contents.
You can make an enclosed composter by drilling air holes in a barrel or an attractive plastic container. Remember that the ideal composter size is three or four feet high and wide; this allows for a critical mass of organics and biology. (If yours is smaller, insulate it to keep the biology cooking, and add worms.)
To further beautify your composter, plant evergreens, shrubs, decorative grasses, or climbing flowers such as nasturtium around it. (Beware of using morning glory and other invasive plants that may seed your compost with plants you don’t want to spread!) You might also plant nutrient-loving vegetables and berries around the perimeter to take advantage of the liquid nutrients that leach from the bottom of the composter.
Erect trellises around your composter and train primrose up them. This also helps ward off hungry critters. You can also buy a beautiful, ready-made flowering composter. The Scrap Eater by Sun Frost (SunFrost.com, (707) 822-9095) is an oak wine barrel brimming with plants. Hidden in the middle is a composter topped with a glass dome that helps heat up the pile. In addition to the plants, the composter is insulated with an air space, assuring that the composting microbes stay warm and effective.
Composting Tips
* In a countertop collector, place a used paper towel or half a sheet of newspaper on the bottom of the container so organics slide out easily. Newspaper and paper towels will also compost.
* An easy way to compost is to “batch” it: Fill one composter, then use another. When the second is full, the first will likely contain completely finished compost.
* Keep your compost moist! It should be as damp as a well-wrung sponge.
Tuesday, February 24, 2009
Whole Foods expanding in S.F. including Noe Valley, SOMA and other locations!
Whole Foods - the high-end, nonunion, specialty grocery store - will soon move into a 24th Street Noe Valley spot recently vacated by the more basic, unionized Cala Foods-Bell Market.
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Planning officials have approved a special permit required for the chain store to open on the commercial strip. Another nearby market, Real Foods, closed about five years ago, and the Bell Market shut down a couple of weeks ago.
"People have been very concerned about having a strong grocery store there, and I think Whole Foods did a really good job of reaching out to the community," said the area's supervisor, Bevan Dufty.
While Cala appears to be dropping out of the city, Whole Foods is looking to expand. In October, the Planning Commission granted a permit for a four-story, 62-unit condo building at Stanyan and Haight streets, with plans for a Whole Foods on the ground floor.
In addition to its existing grocery stores in Pacific Heights, Potrero Hill and SoMa, and the two pending in Noe Valley and the Lower Haight, there is also talk that Whole Foods wants to replace the shuttered Ford dealership at Dolores and Market streets - right across the street from the Castro Safeway.
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Planning officials have approved a special permit required for the chain store to open on the commercial strip. Another nearby market, Real Foods, closed about five years ago, and the Bell Market shut down a couple of weeks ago.
"People have been very concerned about having a strong grocery store there, and I think Whole Foods did a really good job of reaching out to the community," said the area's supervisor, Bevan Dufty.
While Cala appears to be dropping out of the city, Whole Foods is looking to expand. In October, the Planning Commission granted a permit for a four-story, 62-unit condo building at Stanyan and Haight streets, with plans for a Whole Foods on the ground floor.
In addition to its existing grocery stores in Pacific Heights, Potrero Hill and SoMa, and the two pending in Noe Valley and the Lower Haight, there is also talk that Whole Foods wants to replace the shuttered Ford dealership at Dolores and Market streets - right across the street from the Castro Safeway.
Sunday, February 22, 2009
New Fees for Home Buyers as of April 1, 2009
Check out the below article....Banks are trying to make money no matter what the consequence...Since the gov't is stepping in to try and make loans more affordable the banks are not willing to loose a penny so they are tacking on new fees. Give a buyer a break already!!!
If you fall into one of these categories and will be hit with new fees then you definately want to check into an FHA loan (Federal Housing Administration). Make sure you are working with a very good loan agent and if you need a recommendation, please let me know.
Home buyers to be dinged with new feesBeginning April 1, Fannie Mae and Freddie Mac will increase mandatory fees and toughen credit-score and down-payment rules.
Under the new guidelines, applicants will be charged more for down payments of less than 30 percent. Home buyers with FICO scores between 700 and 720 will pay an extra three-quarters of a point. Applicants who purchase a condominium and do not have a 25 percent down payment also will pay a three-quarter point add-on penalty, regardless of their FICO score, for purchasing a condominium instead of a single-family home.
The two Government Sponsored Enterprises (GSEs) said the additional fees are to counter higher risks and losses associated with certain loan products, buyer equity stakes, and credit scores.
To read the full story, please click here
If you fall into one of these categories and will be hit with new fees then you definately want to check into an FHA loan (Federal Housing Administration). Make sure you are working with a very good loan agent and if you need a recommendation, please let me know.
Home buyers to be dinged with new feesBeginning April 1, Fannie Mae and Freddie Mac will increase mandatory fees and toughen credit-score and down-payment rules.
Under the new guidelines, applicants will be charged more for down payments of less than 30 percent. Home buyers with FICO scores between 700 and 720 will pay an extra three-quarters of a point. Applicants who purchase a condominium and do not have a 25 percent down payment also will pay a three-quarter point add-on penalty, regardless of their FICO score, for purchasing a condominium instead of a single-family home.
The two Government Sponsored Enterprises (GSEs) said the additional fees are to counter higher risks and losses associated with certain loan products, buyer equity stakes, and credit scores.
To read the full story, please click here
Friday, February 20, 2009
Sunday Open House- 2/22, 3-4:30pm ..... 1708 Fell St. unit 2
ASKING: $749,000
2 BED/2 BATH w/Yard, Tree lined Street, 1 car parking, storage, HOA: $220/mo
This full floor condo lends itself to entertaining in its naturally lit open floor plan with high ceilings and large windows. Tucked away from the street, you are surrounded by the gracious greenery of mature trees. This two bedroom, two full bath unit features hardwood floors, mirrored walls, halogen track and recessed lighting. Thoughtfully designed, the marble kitchen countertops match the inlay of the wood-burning fireplace, and the custom built-in shelves and cabinets create both space and aesthetics in this inviting home. The U-shaped kitchen surrounds you on three sides with countertops, appliances, storage and a gas stove. The kitchen is extremely functional with a proper work triangle and special corner shelf, which cuts down on excess movement by centering your work space. The spacious bedrooms offer abundant closet space and the large windows overlooking the back yard allow for great natural light.
How Much Have S.F. Home Values Declined Since Their Peak?
Below is an analysis of San Francisco neighborhoods comparing dollar per square foot ($/sq.ft.) at what is estimated to be the time when peak value was reached, to what the $/sq.ft. was for sales occurring 10/15/08 – 1/30/09. (Sales occurring after 10/15/08 reflect the impact of the 9/15/08 financial meltdown on the SF market.)
The neighborhoods below were chosen because enough sales occurred in the comparison periods to generate what appeared to be reliable statistical results. (Many areas of the city did not have sufficient sales.) We have chosen $/sq.ft. because it is more trustworthy than median prices when trying to assess changes in value for specific properties. Indeed, median prices have dropped significantly more than $/sq.ft. because less expensive homes now make up a much larger proportion of sales than they did previously (for a variety of reasons, especially financing conditions).
Different areas reached peak values at different times – in 2006, 2007 or 2008 – and the asterisked notes denote the estimated peak value period that pertains. The price ranges of the sales included were chosen because we felt them to be in a standard range of value for the area and property type specified – thus attempting to eliminate both the ultra high end and the ultra low end, which often distort averages.
Important note: the changes delineated probably understate the actual decline in values for 3 reasons:
In a declining market, sales data – which typically shows up 30 to 45 days after acceptance of offers – will always be a step behind current activity, i.e. offers being accepted right now.
The market has definitely shifted to smaller, less expensive homes (less expensive as to total sales price). All things being equal, a smaller home will have a higher dollar per square foot value than a larger one, therefore skewing current values higher than they ought to be in an apples-to-apples comparison.
In a sellers’ market, virtually everything sells, but in a buyers’ market, typically just the best homes sell – best appearing, best condition and/or best value. So the $/sq.ft. for the recent period applies to the “best homes” while the $/sq.ft. for the peak period applies to homes of a much wider range of quality.
Key to Estimated Peak-Value Period for the Chart Below:
* Peak values estimated to have been reached 1/1/06 – 6/30/06** Peak values estimated to have been reached 1/1/07 – 6/30/07*** Peak values estimated to have been reached 1/1/08 – 6/30/08
Only homes with parking were included in the below analysis. SFD = single family dwelling (house)
Neighborhood or District
Property TypePrice Range
Avg $/sq.ft. at Peak of Market
$/sq.ft. for Sales10/15/08 – 01/09
Change in Avg $/sq.ft. Value
Bayview/Excelsior(District 10)*
SFD (House)$400 – 800k
$554/sq.ft.
$416/sq.ft.
- 25%
Ingleside/ Oceanview*
SFD$400k – 800k
$572
$459
- 20%
Potrero Hill/ Bernal Hghts**
SFD$700k – 1.6m
$678
$610
- 10%
Richmond District**
SFD$700k – 1.6m
$582
$547
- 6%
Parkside/ Outer & Central Sunset**
SFD$550 – 1.1m
$608
$542
- 11%
Miraloma/ Sunnyside**
SFD$600k – 1.2m
$667
$611
- 8.4%
SOMA**
Condo$500k – 900k
$689
$534
- 22.5%
Noe & Eureka Valleys***
SFD$800k – 2m
$856
$770
- 10%
Noe & Eureka Valleys***
Condo$500k – 1.2m
$759
$704
- 7%
Pacific Hghts/ Marina (Dist 7)***
Condo$600k – 1.2m
$818
$762
- 7%
South Beach***
Condo$500k – 1m
$785
$713
- 9%
Hayes Valley/ Alamo/ NOPA***
Condo$500k – 900k
$684
$612
- 10.5%
Averages are generalities and cannot account for the varieties in location, condition and amenities found in SF homes. Averages may be affected by unusual events or anomalous short-term trends, and do not necessarily reflect values for specific properties. All data from sources deemed reliable, but not guaranteed and may contain errors and omissions. Sales not reported to MLS – such as many new condo-development sales – are not included in this analysis. February 3, 2009
The neighborhoods below were chosen because enough sales occurred in the comparison periods to generate what appeared to be reliable statistical results. (Many areas of the city did not have sufficient sales.) We have chosen $/sq.ft. because it is more trustworthy than median prices when trying to assess changes in value for specific properties. Indeed, median prices have dropped significantly more than $/sq.ft. because less expensive homes now make up a much larger proportion of sales than they did previously (for a variety of reasons, especially financing conditions).
Different areas reached peak values at different times – in 2006, 2007 or 2008 – and the asterisked notes denote the estimated peak value period that pertains. The price ranges of the sales included were chosen because we felt them to be in a standard range of value for the area and property type specified – thus attempting to eliminate both the ultra high end and the ultra low end, which often distort averages.
Important note: the changes delineated probably understate the actual decline in values for 3 reasons:
In a declining market, sales data – which typically shows up 30 to 45 days after acceptance of offers – will always be a step behind current activity, i.e. offers being accepted right now.
The market has definitely shifted to smaller, less expensive homes (less expensive as to total sales price). All things being equal, a smaller home will have a higher dollar per square foot value than a larger one, therefore skewing current values higher than they ought to be in an apples-to-apples comparison.
In a sellers’ market, virtually everything sells, but in a buyers’ market, typically just the best homes sell – best appearing, best condition and/or best value. So the $/sq.ft. for the recent period applies to the “best homes” while the $/sq.ft. for the peak period applies to homes of a much wider range of quality.
Key to Estimated Peak-Value Period for the Chart Below:
* Peak values estimated to have been reached 1/1/06 – 6/30/06** Peak values estimated to have been reached 1/1/07 – 6/30/07*** Peak values estimated to have been reached 1/1/08 – 6/30/08
Only homes with parking were included in the below analysis. SFD = single family dwelling (house)
Neighborhood or District
Property TypePrice Range
Avg $/sq.ft. at Peak of Market
$/sq.ft. for Sales10/15/08 – 01/09
Change in Avg $/sq.ft. Value
Bayview/Excelsior(District 10)*
SFD (House)$400 – 800k
$554/sq.ft.
$416/sq.ft.
- 25%
Ingleside/ Oceanview*
SFD$400k – 800k
$572
$459
- 20%
Potrero Hill/ Bernal Hghts**
SFD$700k – 1.6m
$678
$610
- 10%
Richmond District**
SFD$700k – 1.6m
$582
$547
- 6%
Parkside/ Outer & Central Sunset**
SFD$550 – 1.1m
$608
$542
- 11%
Miraloma/ Sunnyside**
SFD$600k – 1.2m
$667
$611
- 8.4%
SOMA**
Condo$500k – 900k
$689
$534
- 22.5%
Noe & Eureka Valleys***
SFD$800k – 2m
$856
$770
- 10%
Noe & Eureka Valleys***
Condo$500k – 1.2m
$759
$704
- 7%
Pacific Hghts/ Marina (Dist 7)***
Condo$600k – 1.2m
$818
$762
- 7%
South Beach***
Condo$500k – 1m
$785
$713
- 9%
Hayes Valley/ Alamo/ NOPA***
Condo$500k – 900k
$684
$612
- 10.5%
Averages are generalities and cannot account for the varieties in location, condition and amenities found in SF homes. Averages may be affected by unusual events or anomalous short-term trends, and do not necessarily reflect values for specific properties. All data from sources deemed reliable, but not guaranteed and may contain errors and omissions. Sales not reported to MLS – such as many new condo-development sales – are not included in this analysis. February 3, 2009
Thursday, February 19, 2009
BEWARE! Property Reassessment Scams
I received one of these letters, don't be fooled!!!!
The scammers are back! Once again, property owners throughout California are being targeted by a number of private companies who are taking advantage of people during these tough economic times.
These companies, with names and mailers designed to look like official governmental documents, are soliciting fees ranging from about $80.00 to more than $200.00 to file a homeowner's request for a review of their property’s assessed value for the current tax year, presumably to obtain a lower tax bill on a lower valuation. While they usually prey on the elderly, immigrants and others who may be confused about how property taxes work, these companies are now sending mass mailers to most homes in California.
These official looking mailers are usually printed on a legal size form that contains the homeowner's name, address and current property assessment information preprinted on the form (which are available from public records). These solicitations may also include an estimated tax savings of hundreds or thousands of dollars. Some of the solicitations even create a false sense of urgency by stating that the property owner must comply by a certain date or there will be a penalty of an increased fee for the service.
The reality is that homeowners can request a reassessment of the value of their property at any time and do so directly with the County Assessor’s office – for free.
Virtually every County Assessor has a system for property owners to request a re-evaluation of their property’s value. The Assessors will have forms in their offices, and most have the forms online. The form may be called something like a “Decline in Value” form. Most counties have these forms available in several languages.
In many cases, the property owner can complete the form online; or they can also download and print a paper copy of the form, complete it and either fax, mail or hand deliver their request. Most County Assessors accept most of these methods.
If their request is found to be meritorious, the property’s assessed value will be reduced. If the request is ultimately denied, in most cases the homeowner still has the option to file an appeal before a county appeals board.
ALL OF THIS IS RELATIVELY EASY, FREE -- AND DOESN’T REQUIRE THE HELP OF ANY PERSON OR ENTITY TO ASSIST FOR A FEE.
The scammers are back! Once again, property owners throughout California are being targeted by a number of private companies who are taking advantage of people during these tough economic times.
These companies, with names and mailers designed to look like official governmental documents, are soliciting fees ranging from about $80.00 to more than $200.00 to file a homeowner's request for a review of their property’s assessed value for the current tax year, presumably to obtain a lower tax bill on a lower valuation. While they usually prey on the elderly, immigrants and others who may be confused about how property taxes work, these companies are now sending mass mailers to most homes in California.
These official looking mailers are usually printed on a legal size form that contains the homeowner's name, address and current property assessment information preprinted on the form (which are available from public records). These solicitations may also include an estimated tax savings of hundreds or thousands of dollars. Some of the solicitations even create a false sense of urgency by stating that the property owner must comply by a certain date or there will be a penalty of an increased fee for the service.
The reality is that homeowners can request a reassessment of the value of their property at any time and do so directly with the County Assessor’s office – for free.
Virtually every County Assessor has a system for property owners to request a re-evaluation of their property’s value. The Assessors will have forms in their offices, and most have the forms online. The form may be called something like a “Decline in Value” form. Most counties have these forms available in several languages.
In many cases, the property owner can complete the form online; or they can also download and print a paper copy of the form, complete it and either fax, mail or hand deliver their request. Most County Assessors accept most of these methods.
If their request is found to be meritorious, the property’s assessed value will be reduced. If the request is ultimately denied, in most cases the homeowner still has the option to file an appeal before a county appeals board.
ALL OF THIS IS RELATIVELY EASY, FREE -- AND DOESN’T REQUIRE THE HELP OF ANY PERSON OR ENTITY TO ASSIST FOR A FEE.
Wednesday, February 18, 2009
Homeowner Affordability and Stability Plan
Wednesday, February 18, 2009
President Obama unveiled the Homeowner Affordability and Stability Plan, which will offer assistance to as many as 9 million homeowners, while attempting to prevent the destructive impact of foreclosures on families and communities.The plan contains three main components, and only applies to primary residences. The loans referenced in the plan cannot exceed Freddie Mac/Fannie Mae conforming loan limits. I’ve outlined the plan in greater detail below.The first component is directed toward homeowners suffering from falling housing prices who still have equity in their homes, but no longer have the 20 percent equity needed to refinance. Under the plan, homeowners who have conforming loans owned or guaranteed by Freddie Mac and Fannie Mae will be allowed to refinance their homes, even if they do not have 20 percent equity left in the house. The U.S. Treasury Dept. estimates that about 5 million homeowners will be helped by this portion of the program.The second component, known as the Homeowner Stability Initiative, is designed to assist homeowners who are “underwater” on their mortgages. The $75 billion initiative will bring together lenders, servicers, and the government so that all stakeholders share in the cost of the modification. Primary mortgages would be reduced to monthly payments that do not exceed a 38 percent debt-to-income ratio, with the costs of doing so borne by the lender. The government and lender then would split the costs of further reducing the monthly payments until they were at a 31 percent debt-to income ratio. An important aspect of the initiative is that homeowners do not have to be delinquent to participate.The Homeowner Stability Initiative also will create incentives for servicers, mortgage holders, and homeowners. Servicers would receive an up-front fee of $1,000 for every eligible modification meeting the initiative’s guidelines. Guidelines are scheduled to be released by March 4. Mortgage holders will receive an incentive payment of $1,500, and servicers $500, for modifications made on loans that are current but at risk of imminent default.The final aspect of the Homeowner Stability Initiative is creating clear and consistent guidelines for loan modifications. The Obama Administration plans to work with federal agencies, banking and credit union regulators, and the private sector in order to develop loan modification guidelines that can be implemented across the entire mortgage market. While adoption of the guidelines will be voluntary for the private sector, all financial institutions receiving Financial Stability Plan assistance going forward will be required to implement the loan modification guidelines.The government estimates that between 3 and 4 million homeowners will benefit from the Homeowner Stability Initiative component of the plan.The third component of The Homeowner Affordability and Stability Plan is supporting low mortgage rates by strengthening Fannie Mae and Freddie Mac. The Treasury Dept. plans to increase their Preferred Stock Purchase Agreements with both Fannie Mae and Freddie Mac from its current $100 billion in both entities to $200 billion in each. The Treasury Dept. also will continue to purchase Fannie Mae and Freddie Mac mortgage-back securities in order to help promote stability and liquidity in the marketplace. Additionally, the Treasury Dept. will increase Fannie Mae and Freddie Mac’s portfolios by $50 billion, for a total of $900 billion. The Obama Administration will work with Fannie Mae and Freddie Mac to support state housing finance agencies in serving home buyers, such as CalHFA. Funding for this will not come from TARP money but from the Housing and Economic Recovery Act.While some of the details still are being developed, such as the modification guidelines, the Obama Administration plans on using programs and funding already allocated for The Homeowner Affordability and Stability Plan and will need little legislative approval for programs under the plan.
James Liptak2009 PresidentCALIFORNIA ASSOCIATION OF REALTORS®
President Obama unveiled the Homeowner Affordability and Stability Plan, which will offer assistance to as many as 9 million homeowners, while attempting to prevent the destructive impact of foreclosures on families and communities.The plan contains three main components, and only applies to primary residences. The loans referenced in the plan cannot exceed Freddie Mac/Fannie Mae conforming loan limits. I’ve outlined the plan in greater detail below.The first component is directed toward homeowners suffering from falling housing prices who still have equity in their homes, but no longer have the 20 percent equity needed to refinance. Under the plan, homeowners who have conforming loans owned or guaranteed by Freddie Mac and Fannie Mae will be allowed to refinance their homes, even if they do not have 20 percent equity left in the house. The U.S. Treasury Dept. estimates that about 5 million homeowners will be helped by this portion of the program.The second component, known as the Homeowner Stability Initiative, is designed to assist homeowners who are “underwater” on their mortgages. The $75 billion initiative will bring together lenders, servicers, and the government so that all stakeholders share in the cost of the modification. Primary mortgages would be reduced to monthly payments that do not exceed a 38 percent debt-to-income ratio, with the costs of doing so borne by the lender. The government and lender then would split the costs of further reducing the monthly payments until they were at a 31 percent debt-to income ratio. An important aspect of the initiative is that homeowners do not have to be delinquent to participate.The Homeowner Stability Initiative also will create incentives for servicers, mortgage holders, and homeowners. Servicers would receive an up-front fee of $1,000 for every eligible modification meeting the initiative’s guidelines. Guidelines are scheduled to be released by March 4. Mortgage holders will receive an incentive payment of $1,500, and servicers $500, for modifications made on loans that are current but at risk of imminent default.The final aspect of the Homeowner Stability Initiative is creating clear and consistent guidelines for loan modifications. The Obama Administration plans to work with federal agencies, banking and credit union regulators, and the private sector in order to develop loan modification guidelines that can be implemented across the entire mortgage market. While adoption of the guidelines will be voluntary for the private sector, all financial institutions receiving Financial Stability Plan assistance going forward will be required to implement the loan modification guidelines.The government estimates that between 3 and 4 million homeowners will benefit from the Homeowner Stability Initiative component of the plan.The third component of The Homeowner Affordability and Stability Plan is supporting low mortgage rates by strengthening Fannie Mae and Freddie Mac. The Treasury Dept. plans to increase their Preferred Stock Purchase Agreements with both Fannie Mae and Freddie Mac from its current $100 billion in both entities to $200 billion in each. The Treasury Dept. also will continue to purchase Fannie Mae and Freddie Mac mortgage-back securities in order to help promote stability and liquidity in the marketplace. Additionally, the Treasury Dept. will increase Fannie Mae and Freddie Mac’s portfolios by $50 billion, for a total of $900 billion. The Obama Administration will work with Fannie Mae and Freddie Mac to support state housing finance agencies in serving home buyers, such as CalHFA. Funding for this will not come from TARP money but from the Housing and Economic Recovery Act.While some of the details still are being developed, such as the modification guidelines, the Obama Administration plans on using programs and funding already allocated for The Homeowner Affordability and Stability Plan and will need little legislative approval for programs under the plan.
James Liptak2009 PresidentCALIFORNIA ASSOCIATION OF REALTORS®
Housing Benefits of the Stimulus Package
RATE UPDATE
Zero-points rates on conforming loans up to $417k and super-conforming loans up to $625,500 have improved to start this week as stocks have sold off and mortgage bonds have rallied—when bond prices rise in a rally, yields (or rates) drop. With the government participating in mortgage bond markets, lenders are pricing more conservatively than market levels might suggest because it’s harder than ever to predict which way markets will move. So we continue to see favorable terms on points: one point gets .625% to .875% lower in rate, so borrowers break even on a one-point buydown in 12-18 months. The new stimulus package raises super-conforming loan limits to $729k (more on this below). Jumbos 30yr fixed loans for SFR loans from $729k to $5m are looking good at 6.625%.
STIMULUS SUMMARY—THE WHOLE BILL
President Obama signed the $787 billion American Recovery & Reinvestment Act into law Tuesday, February 17. Funds will be allocated as follows, and consumers can track spending and timelines at www.Recovery.gov. The site is a pretty clever re-branding of the package that was branded as wasteful by a unified Republican minority in Congress. These categories aren’t fully defined on the site yet, and this doesn’t include a roughly $1 trillion bank rescue plan that’s forthcoming from Treasury. I cover the housing highlights in a separate section below.
Tax Relief: $288b. State and Local Fiscal Relief: $144b. Infrastructure and science: $111b. Protecting the Vulnerable: $81b. Health Care: $59b. Education and Training: $53b. Energy: $43b. Other: $8b.
STIMULUS SUMMARY—HOUSING PROVISIONS
Below are summaries of key housing provisions of the American Recovery & Reinvestment Act. Housing help that’s not in the Recovery Act explicitly but seems likely to fall in the “Protecting The Vulnerable” category (unless it is part of the Treasury plan) is a $50b investment plan for borrowers who haven’t yet been late on mortgage payments but are struggling. This is great for individual homeowners and critical for housing overall to stop the foreclosure spiral and stabilize home prices—foreclosures are estimated to top two million this year.
$729,750 Loan Limit Returns: FHA and Conforming loan limits we saw last year for high-cost areas have been restored. But please note that this change will take a few weeks for lenders to implement and price. Remember: the spreads between $417k-cap and $729k-cap loans were a lot wider than the current $417k vs $625k spreads. Note also that reverse mortgage limits have been increased from $417,000 to $625,500.
First-time Home Buyer Tax Credit: The tax credit for first time home buyers was increased from $7500 to $8000 for homes purchased between January 1, 2009 and December 1, 2009. A tax credit is equivalent to money in your hand, whereas a tax deduction just reduces taxable income. The credit no longer needs to be paid back as long as you live in the home without selling it for 3 years. The $7500 version of the credit expired on July 1, 2009, and required home buyers to pay the funds back over a 15 year time frame. If you bought the home in 2008, the credit remains $7500, and it still needs to be paid back over a 15 year timeframe beginning in 2011 when you file your 2010 returns.
The credit phases out for couples making over $150k or singles making over $75k. The credit remains refundable. This means that first-time home buyers who owe less than $8000 in taxes for the year are still eligible for the full $8000 credit when they file their tax returns. In that case, the IRS will write you a check for the difference between $8,000 and your actual tax bill. The credit can be claimed on your 2008 tax returns that you file by April 15, 2009, even if you buy the home in 2009.
Home Improvement Tax Credit: The tax credit for making energy efficient home improvements is now 30% of the cost of the improvements up to a maximum of $1500. Eligible improvements include energy efficient exterior doors and windows, insulation, heat pumps, furnaces, central air conditioners and water heaters. Generally, your home improvement contractor and/or the manufacturer selling the improvements issues a certification that clarifies whether the improvements meet the necessary standards for energy efficiency. Most modern windows, furnaces, and air conditioners meet these requirements.
Conforming ($200,000 – $417,000) – 1 POINT
30 Year: 4.875% (5.09% APR)
FHA 30 Year: 5.0% (5.21% APR)
15 Year: 4.875% (5.08% APR)
5/1 ARM: 5.75% (5.96% APR)
Super-Conforming ($417,001 to $625,500 cap by county) – 1 POINT
30 Year: 5.375% (5.52% APR)
FHA 30 Year: 5.375% (5.52% APR)
Jumbo ($625,500 – $3,500,000) – 1 POINT
30 Year: 6.625 % (6.83% APR)
10/1 ARM: 6.25% (6.39% APR)
5/1 ARM: 5.375 % (5.52% APR)
Scenarios assume full doc pricing on purchase or rate/term refi (but not cash-out refi) loans for borrower with 720 FICO score or greater, at least 20% equity (unless FHA), and 6-12 months reserves left over after close (retirement assets counted at 70% of value for reserves). Better or worse rates apply to specific client profiles. Better rates are available using tax deductible points. ARM rates adjust the first month after initial fixed period shown, and once per year thereafter until year 30. Adjusted rate calculated by adding 2.25% margin to 1yr LIBOR index at time of adjustment. At first adjustment LIBOR+margin cannot exceed start rate+5%, subsequent yearly adjustments can never be greater than 2% per year, total of all adjustments for 30yr life of loan can never exceed start rate+5%. This is not a loan commitment nor a loan guarantee, rates based on loan amount ranges shown and rates available at the time of production. Rates subject to change without notice. California Department of Real Estate license #01376428. Equal Housing Lender.
Julian D. HebronRPM Mortgage, Van Ness
office: 415.701.2638
cell: 415.250.1050
Zero-points rates on conforming loans up to $417k and super-conforming loans up to $625,500 have improved to start this week as stocks have sold off and mortgage bonds have rallied—when bond prices rise in a rally, yields (or rates) drop. With the government participating in mortgage bond markets, lenders are pricing more conservatively than market levels might suggest because it’s harder than ever to predict which way markets will move. So we continue to see favorable terms on points: one point gets .625% to .875% lower in rate, so borrowers break even on a one-point buydown in 12-18 months. The new stimulus package raises super-conforming loan limits to $729k (more on this below). Jumbos 30yr fixed loans for SFR loans from $729k to $5m are looking good at 6.625%.
STIMULUS SUMMARY—THE WHOLE BILL
President Obama signed the $787 billion American Recovery & Reinvestment Act into law Tuesday, February 17. Funds will be allocated as follows, and consumers can track spending and timelines at www.Recovery.gov. The site is a pretty clever re-branding of the package that was branded as wasteful by a unified Republican minority in Congress. These categories aren’t fully defined on the site yet, and this doesn’t include a roughly $1 trillion bank rescue plan that’s forthcoming from Treasury. I cover the housing highlights in a separate section below.
Tax Relief: $288b. State and Local Fiscal Relief: $144b. Infrastructure and science: $111b. Protecting the Vulnerable: $81b. Health Care: $59b. Education and Training: $53b. Energy: $43b. Other: $8b.
STIMULUS SUMMARY—HOUSING PROVISIONS
Below are summaries of key housing provisions of the American Recovery & Reinvestment Act. Housing help that’s not in the Recovery Act explicitly but seems likely to fall in the “Protecting The Vulnerable” category (unless it is part of the Treasury plan) is a $50b investment plan for borrowers who haven’t yet been late on mortgage payments but are struggling. This is great for individual homeowners and critical for housing overall to stop the foreclosure spiral and stabilize home prices—foreclosures are estimated to top two million this year.
$729,750 Loan Limit Returns: FHA and Conforming loan limits we saw last year for high-cost areas have been restored. But please note that this change will take a few weeks for lenders to implement and price. Remember: the spreads between $417k-cap and $729k-cap loans were a lot wider than the current $417k vs $625k spreads. Note also that reverse mortgage limits have been increased from $417,000 to $625,500.
First-time Home Buyer Tax Credit: The tax credit for first time home buyers was increased from $7500 to $8000 for homes purchased between January 1, 2009 and December 1, 2009. A tax credit is equivalent to money in your hand, whereas a tax deduction just reduces taxable income. The credit no longer needs to be paid back as long as you live in the home without selling it for 3 years. The $7500 version of the credit expired on July 1, 2009, and required home buyers to pay the funds back over a 15 year time frame. If you bought the home in 2008, the credit remains $7500, and it still needs to be paid back over a 15 year timeframe beginning in 2011 when you file your 2010 returns.
The credit phases out for couples making over $150k or singles making over $75k. The credit remains refundable. This means that first-time home buyers who owe less than $8000 in taxes for the year are still eligible for the full $8000 credit when they file their tax returns. In that case, the IRS will write you a check for the difference between $8,000 and your actual tax bill. The credit can be claimed on your 2008 tax returns that you file by April 15, 2009, even if you buy the home in 2009.
Home Improvement Tax Credit: The tax credit for making energy efficient home improvements is now 30% of the cost of the improvements up to a maximum of $1500. Eligible improvements include energy efficient exterior doors and windows, insulation, heat pumps, furnaces, central air conditioners and water heaters. Generally, your home improvement contractor and/or the manufacturer selling the improvements issues a certification that clarifies whether the improvements meet the necessary standards for energy efficiency. Most modern windows, furnaces, and air conditioners meet these requirements.
Conforming ($200,000 – $417,000) – 1 POINT
30 Year: 4.875% (5.09% APR)
FHA 30 Year: 5.0% (5.21% APR)
15 Year: 4.875% (5.08% APR)
5/1 ARM: 5.75% (5.96% APR)
Super-Conforming ($417,001 to $625,500 cap by county) – 1 POINT
30 Year: 5.375% (5.52% APR)
FHA 30 Year: 5.375% (5.52% APR)
Jumbo ($625,500 – $3,500,000) – 1 POINT
30 Year: 6.625 % (6.83% APR)
10/1 ARM: 6.25% (6.39% APR)
5/1 ARM: 5.375 % (5.52% APR)
Scenarios assume full doc pricing on purchase or rate/term refi (but not cash-out refi) loans for borrower with 720 FICO score or greater, at least 20% equity (unless FHA), and 6-12 months reserves left over after close (retirement assets counted at 70% of value for reserves). Better or worse rates apply to specific client profiles. Better rates are available using tax deductible points. ARM rates adjust the first month after initial fixed period shown, and once per year thereafter until year 30. Adjusted rate calculated by adding 2.25% margin to 1yr LIBOR index at time of adjustment. At first adjustment LIBOR+margin cannot exceed start rate+5%, subsequent yearly adjustments can never be greater than 2% per year, total of all adjustments for 30yr life of loan can never exceed start rate+5%. This is not a loan commitment nor a loan guarantee, rates based on loan amount ranges shown and rates available at the time of production. Rates subject to change without notice. California Department of Real Estate license #01376428. Equal Housing Lender.
Julian D. HebronRPM Mortgage, Van Ness
office: 415.701.2638
cell: 415.250.1050
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