Barry Ripp ~ East Bay Area Real Estate

  There’s triple trouble for the Golden State’s struggling real estate market: the usual seasonal slowdown, a weak economy and “unrealistic asking prices” by some sellers, according to a report today from the California Association of Realtors.

 Statewide, the seasonally adjusted home sales rate dropped 3.5 percent in October from the month before, the group reported. Year over year, though, sales were down 19.6 percent, although the market last fall was bolstered by federal tax credits for many homebuyers. The median price of a resale single-family house was up 2.3 percent from a year earlier to $304,220.

 ”We’re really seeing two different housing markets — one at the lower-end driven by first-time buyers and investors, which is keeping prices stable, and one with nostalgic sellers who set unrealistic asking prices,” Leslie Appleton-Young, the group’s vice president and chief economist, said in a news release today.

 ”Sellers need to consider current market conditions when pricing their home in order to facilitate a shorter time on the market,” she said.

 “The housing market is experiencing an uneven recovery, and a temporary foreclosure stoppage in some states is likely to have held back a number of completed sales,” Lawrence Yun, the group’s chief economist, said in a statement. “Still, sales activity is clearly off the bottom and is attempting to settle into normal sustainable levels.”

 ~ Barry Ripp  

information provided by Calif Assoc of Realtors with permission: www.car.org

Back in 2008, when the housing market was in even deeper trouble than it is in now, Congress passed the Housing and Economic Recovery Act to help move a glut of homes off the market. One of the key provisions was a tax credit for first-time homebuyers. That provision would be extended (twice) – and getting in early would have been a mistake.

If you claimed a federal income tax credit for a 2008 home purchase, you’ll probably have to pay it back over 15 years, starting with your 2010 Form 1040 (due next April). In contrast, if you claimed a credit for a 2009 or 2010 purchase, you probably won’t have to pay it back. (Blame Congress’s patchwork legislating.) 

It gets much more complicated, so please click the following link to get more information.  

http://www.smartmoney.com/personal-finance/taxes/do-you-have-to-repay-your-homebuyer-credit/   

~ Barry Ripp

A recent survey by Fannie Mae found that 70 percent of Americans think it is a good time to buy a house, with 47 percent of responsdents saying they believe home prices will hold steady over the next year.  However, 33 percent said they would be more likely to rent their next home if they were to move.

A majority of Americans (67 percent) continue to believe that housing is a safe investment; however, that number is down 16 percentage points from a similar survey conducted in 2003, according to Fannie Mae.  Delinquent borrowers and renters are notably more discouraged than mortgage borrowers and underwater borrowers about a home’s safety as an investment and the appeal of buying versus renting. More than 70 percent of all respondents believe it will be harder for the next generation to buy a home, an increase of three percentage points compared with the beginning of the year.

 ~ Barry Ripp            www.barryripp.com         

This information was obtained by the Calif. Association of REALTORS with permission.

The National Association of Realtors report:.

How it works: The organization collects data from all Realtor associations across the country and releases information about the number of sales, median home prices and pending sales. It takes some data, for example, from its MLS  listings, which are properties that Realtors have on the market.

The pros: The association has access to tons of data, and the number of home sales and pending sales can show if the housing market is heating up.

The cons: The average price information is on a national, or even county level and it isn’t going to show what your house is worth or how your neighborhood is performing.

The take-away: Most economists say median price — the price at the midpoint of all sales — isn’t helpful in determining home values because its mix of sales can be fairly erratic. For instance, if a bunch of higher-priced homes sell in a given month, the median price will increase but that doesn’t necessarily mean home values have jumped. Also, if mostly low-priced homes sell, then the median price will dip. Still, the number of pending sales and home sales can tell you a lot about the relative health of the housing market.

~Barry Ripp
www.barryripp.com

Sales of homes for less than the amount of their outstanding mortgage debt have tripled since 2008, particularly in California, according to a report released last Tuesday.

Known as “short sales”, the increasingly common transactions for financially troubled homeowners are projected to balloon to 400,000 in 2010.  The number of transactions had exploded to more than 160,000 in 2009 from roughly 96,000 the year before. More than a quarter of the transactions occur in California, with another quarter split between Arizona, Texas and Florida

In an economy in which jobs are scarce and a quarter of homeowners owe more on their property than it’s worth, short sales are appealing to investors, banks and owners as a cheaper way out than foreclosure.

And with fluctuating home prices, lenders can be reluctant to approve short sales. The transactions can be a hassle to execute, especially when multiple loans on a home mean a slew of creditors are included in negotiations.

But on the bright side; Short sales could actually end up boosting the job market. Unemployed homeowners who can escape underwater mortgages have an easier time moving around, expanding their job search.

As I finish this posting, there are currently 604 houses for sale in the Fremont tri-city area. Of which 126 are short sales, that’s 20%.  Those numbers decrease sharply for the higher priced homes. Of the homes prices over $500,000 only 12% are short sales.

I just thought I would post this beautiful 4 bedroom home in Newark, CA.  Its been all remodeled through out and looks great. It’s nearly 2000 square feet.

You’ll love the all new custom kitchen with gas stove, Bosch dishwasher, “Corian” counters and Maple cabinets.

New “Milgard” windows, new carpet, new paint inside & out, new roof & gutters and new garage door & opener too. The large master suite with new bathroom and 2 large closets.

Cherrywood floors highlight the family room & kitchen.

Inside washer/dryer included.

Enjoy the front patio and the large backyard also.  I think is could be the perfect home for you and your family.

For a Photo Slide Show, click: http://www.flyinside.com/tour.php?id=42787

Please contact me if you have any questions about this home or others.

 ~ Barry

I just got the news. Interest rate for a 30 year fixed: 4.5% for loans up to $417,000.

For loans up to $729,000 the rate is: 4.75%

These are great rates, and they won’t last forever.  It’s time to upgrade yourself.  So contact me today about buying a new home.

                                                         To comply with the stricter lending guidelines of Fannie Mae and Freddie Mac, and to avoid accusations that the loans sold to Fannie and Freddie are based on inflated appraisals, some real estate professionals have reported lenders lowering home values on appraisals submitted to them. However, effective Sept. 1, Fannie Mae is prohibiting the purchase of loans from lenders who change appraisers’ numbers.

Generally, lenders order a low-cost electronic valuation—based on publicly available statistical data—to review the accuracy of the information submitted by the appraiser. If there is a discrepancy between the electronic valuation and the appraiser’s report, the lender’s underwriters may reduce the appraisal figure.

 ~ Barry Ripp

From:  Calif. Assoc. of Realtors & LA Times

1. Don’t buy if you don’t plan to stay
If you can’t commit to remaining in one place for at least a few years, then owning is probably not for you, at least not yet. With the transaction costs of buying and selling a home, you may end up losing money if you sell any sooner – even in a rising market.

2. Start by shoring up your credit
Since you probably will need to get a mortgage to buy a house; you must make sure your credit history is as clean as possible. A few months before you start house hunting, get copies of your credit report. Make sure the facts are correct, and fix any problems you discover.

3. Choose carefully between points and rate
When picking a mortgage, you usually have the option of paying additional points- a portion of the interest that you pay at closing- in exchange for a lower interest rate. If you stay in the house for a long time- say three to five years or more- it’s usually a better deal to take the points. The lower interest rate will save you more in the long run.

4. Hire a home inspector
A home inspector can let you know about potential problems. At best, you can move into the house confident that it’s in good shape; at worst, the inspector’s report can let you back out of the deal if the house has major problems. Most typically, the home inspection can allow you to negotiate the home price to account for necessary repairs.

5. Get professional help
Even though the Internet gives buyers unprecedented access to home listings, most new buyers (and many more experienced ones) are better off using a professional agent. Look for an experienced agent, who will have your interests at heart and can help you with strategies during the bidding process.

6. Bonus Tip: Be patient
Buying a home is one of the largest purchases most people will make in their lifetime. The key to avoiding buyer’s remorse is to be completely comfortable before signing on the dotted line.