California’s “Unsold Inventory Index” (UII), a closely watched index indicating the number of months needed todeplete the supply of homes on the market at the current sales rate, declined to 3.8 months in December, the lowest level in five years, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). By comparison, the UII for existing, single-family homes stood at 5.6 months in December 2008.
In December, the median price of an existing, single-family home rose to $306,820, an 8.4% rise from Dec.’08, the second consecutive year-over-year increase, and the 10th straight month-over-month increase, according to C.A.R.’s December sales and price report.
With affordability near-historic highs, low interest rates, and home buyer tax credits, many properties in California are receiving multiple offers and sparking bidding wars. Home buyers who find themselves in bidding wars should work closely with their REALTOR® to ensure they are crafting realistic offers that are more likely to be accepted by the seller.
Governor Proposes $10K home buyer Tax Credit: During his final “state of the State” speech on Wednesday Jan. 6, Governor Schwarzenegger proposed a state income tax credit of $10,000 for first-time home buyers. The proposal would expand the tax credit for those purchasing newly constructed homes to include the purchase of existing homes by first-time home buyers.
For more information, contact me.
~ Barry
Here is some information on the real estate market. In my opinion, if you’re ready to buy a home, start looking now. There will likely be more inventory to chose from in the spring, but by looking now, you’ll be ready to make that final decision when the right house comes along.
Recent good news about the housing market has many home buyers wondering whether now is a good time to buy. For example, home sales activity increased 9.4 percent nationally in September, a 26 percent increase from a low point in January, according to the National Association of Realtors.
The $8,000 first-time buyer tax credit has stimulated the market, and it has been extended. A credit of up to $6,500 is now available to repeat home buyers who qualify.
Many buyers are having difficulty finding a home to buy. The inventory of good listings on the market is low in many areas because prospective sellers who don’t have to sell now are waiting for a better market. To aggravate the situation, many sellers who need to sell now often take their home off the market after Thanksgiving and will bring it back on the market next year.
Buyers may find there’s very little on the market to choose from for the next several months. However, they may also find that some buyers will drop out of the market over the holiday season, leaving less competition for the listings that are on the market during this period.
~ Barry Ripp
Information provided by C.A.R and used with permission.
Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/12/06/REAI1ARGC5.DTL&type=realestate#ixzz0ZnrVz7Rf
It’s hard to believe, but between Thanksgiving and New Year’s Day Americans throw away a million extra tons of garbage each week. Here are some suggestions of ways to go green this holiday season, and you just might save some green in the meantime.
Start with your gift giving. Giving an experience, like tickets to a movie or ballgame can create much less waste than toys and gadgets. And some of the best gifts can be homemade like cookies and cakes.
As you do begin wrapping up those presents for family and friends, consider reusing gift bags, tissue paper, and bows.
If you need to ship your presents this year, avoid Styrofoam packing peanuts and try using crumpled up newspaper instead.
As you search for that perfect tree, keep in mind that if you purchase a tree from a tree farm you’re not damaging forests. Artificial trees are also a good choice since they are reused every year and that saves on the gas you would use driving to the tree farms.
If you’re buying lights, be sure to purchase Christmas lights made with light-emitting diodes, or LEDs. These lights have been around a few years and are 90% more efficient than traditional Christmas lights. They also last longer.
And start the New Year off on the right foot try treecycling. By recycling your fresh tree you can make a huge difference in reducing holiday waste. Instead of ending up in a landfill, Christmas trees can be ground into wood chips and be reused as mulch gardens, or to prevent erosion.
And remember….have a very Merry Christmas
Great news for your first-time buyers: The Mortgage Protection Program has been extended through 2010.
To continue to provide first-time home buyers with peace of mind when purchasing their first home, the C.A.R. Housing Affordability Fund has extended the Mortgage Protection Program (MPP) through December 2010. To date, more than 1,700 first-time home buyers already have been approved for the program, and the numbers continue to increase.
On April 2, 2009 the Housing Affordability Fund launched a new program designed to provide peace of mind to first-time buyers who are hesitant to enter the housing market due to concerns about potential job loss, and subsequently being unable to meet their monthly mortgage obligations. Qualifying buyers can receive up to $1,500 a month for up to six months in the event of job loss, a qualified co-buyer can also receive a $750 benefit for up to six months to help pay the mortgage.
TO QUALIFY FOR THE MORTGAGE PROTECTION PROGRAM APPLICANTS MUST:
· Be a first-time home buyer – someone who has not owned property in the last three years
· Open escrow on or after April 2, 2009
· Use a California REALTOR® in the transaction
· Purchase the property in California
· Be a W-2 employee (cannot be self-employed)
This is a great opportunity for first-time homebuyers.Contact me for more information or: Click here for more information, requirements, and a downloadable application.
~ Barry Ripp
Information obtained by the Calif.Assoc.of Realtors. November 2009
Maintaining a good credit score can help you in a number of financial situations. For example, most lenders use your FICO score to judge credit worthiness. FICO stands for Fair Isaac Corp. which analyzes credit information to come up with a score.
A good score can mean a lot when it comes to your interest rate for car loans and home loans.
One key to keeping a good credit score is a combination of continuing to use your credit responsibly and paying down balances as soon as you can. I think it’s better to pay your credit cards off each month to avoid paying the high interest. So don’t buy more than you can afford to pay off.
To make sure you don’t have any credit errors, check your own credit at least once a year. You can get a free report from each of the three credit reporting agencies.
For a free copy of your credit report from all three agencies, you can visit: www.annualcreditreport.com They will ask several questions to insure security and also ask you to pay for an upgraded report, but a free report is available.
I hope you find this information helpful. I feel we all need to be more careful about using credit. But credit can be a useful tool when we need it.
~ Barry
Great news coming regarding the home buyer tax credit. The Senate has now agreed to extend the tax credit. The bill must be voted on and then go through the House of Representatives next. But most of us are certain it will pass before the current deadline.
As you can imagine, many buyers are looking forward to that tax credit, and many are rushing to make their home purchase before the current deadline. It has definitely helped our real estate market. But I truly feel we are at the bottom of this real estate cycle right now. Home prices should stay flat for a while, 18 months to 2 years, before we see significant increases.
For more information, or your comments, please respond.
~ Barry Ripp
Selling real estate since 1985
If you’re ready to buy a home, there are probably many questions on your mind. Let’s address a few right now.
1) When should I buy? Since we are pretty much at the bottom of this cycle, you should buy when you’re ready. And you should start getting ready right now. Get pre-approved and then talk to a Realtor about what’s for sale in your price range.
2) Should I buy a condo or house? Buy what you can afford. Condos offer some beneficial features (pool, etc) and they do appreciate, but many people prefer a house. You should see for yourself what’s in your price range and then decide.
I hope this helps with some of the many questions you may have. For more answers to your questions, please feel free to contact me directly. It will be my pleasure to serve you.
~ Barry
New federal rules protecting applicants for home loans take effect July 30
A new set of consumer-protection rules take effect July 30, including requiring lenders to provide consumers with initial disclosures of the estimated mortgage costs within three business days of the loan application; prohibiting lenders from collecting any fees prior to the consumer receiving the loan-cost disclosures; and prohibiting quickie closings on loans.
Traditionally, many mortgage brokers and lenders collected fees covering appraisal, credit, and other charges at the time of application. The new rules eliminate this practice and prohibit lenders from collecting any fees until the consumer has received the truth-in-lending disclosures and an annual percentage rate (APR) calculation of the loan costs.
The new rules also require lenders to deliver a copy of the real estate appraisal to the home buyer three business days before the scheduled closing on the loan. Previously, federal regulations guaranteed that consumers could request and obtain a copy of the appraisal, but many home buyers were not aware of this right.
Additionally, the rules prohibit quickie closings on loans by requiring a seven-day waiting period after applicants are handed their early disclosures or the disclosures are mailed. This provides applicants a week to think about the transaction and to decide whether it is right for them. Final truth-in-lending disclosures are due three business days before closing.
