CONGRESS PASSES HOMEBUYER TAX CREDIT

November 5, 2009

Here's the latest intelligence from Real Estate Economy Watch.

Special Report

CONGRESS PASSES HOMEBUYER TAX CREDIT


The House of Representatives voted overwhelmingly this afternoon to pass legislation containing an extension and expansion of the homebuyer tax credit, completing Congressional action and sending the tax credit to President Obama for his signature, possibly as early as tomorrow.
The $8,000 homebuyer tax credit for first-time buyers, due to expire in 25 days, will be extended through April 30 of next year and buyers will have an additional two months, until the end of June, to close. First-time buyers who are in process of making a purchase will no longer need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline. The new legislation increases the income limit for couples with income up to $225,000, a nearly $55,000 increase above the level in existing law.
For the first time, the new legislation makes buyers who already own a home eligible for a credit. A $6,500 maximum credit will be available to existing homeowners who have lived in their current residence for five of the prior eight years. The legislation limits eligibility for the existing homeowner credit to homes worth $800,000 or less.

Read the full story at Real Estate Economy Watch.

Tracy Pina

BUYING REO'S and SHORT SALE HOMES

Take Advantage of Today's Buyer's Market

Action Packed Seminar with Topics Including:

Buying bank owned properties (REO's) at a discount - Successful negotiation strategies with banks and other sellers - 1st time home buyer options - Short-sale negotiations - Distressed property investment - Financing - Lender requirements - Creative financing options - Minimizing closing costs and cash requirements - Negotiation Techniques - and much more...

THURSDAY OCTOBER 22, 2009

6:00pm TO 7:45pm

INTERO SANTANA ROW

377 Santana Row Suite 1180

Entrance off Olsen Drive

Located between Peets Coffee and Eli Thomas

"Intero's seminar series has been fantastic. I feel confident and prepared to take the next step in today's market! Thanks!"

-- Janice, Campbell, past attendee

**REGISTER NOW**

Loan Modifications/Short Sales and other options

Options I learned about recently for those hoping to get their loan modified…

Government Assisted Refinance: Federal Homeowner Affordability Refinance Program http://www.makinghomesaffordable.gov

Loan Modification – Federal Homeowner Affordability and Stability Plan, for those that do not qualify for the above: http://financialstability.gov/impact/contracts_list.htm

I have more information on these programs and on short sales/foreclosures/bankruptcy options – let me know if you want it, email me.

Tracy Pina

High End Prices: Still coming down

Total sales volume of high end homes in 2009 has made up of only 2% of sales v. 4.4% in 2008.

In 2008, 40% of buyers were move up buyers, thus far in 2009, only 15% are move up buyers. I believe this more reflects a surge in volume in the low end rather then a significant slow down in the high end. That being said the high end is slower – the data…

Average days on market for luxury homes in the Bay Area is up 67%. In the SF Bay Area there is approximately 18 months of inventory for sale in the high end. This means if you have a home that equates to high-end/luxury in your market you can expect it to take 18 months to sell.

Pricing in the high end is down from 5% to 25% depending on location.

The good news for buyers/not good news for sellers, The Wall St Journal recently published an article quoting a JPMorgan analyst saying that high end real estate could fall as much as 60% off its high and that they do not expect a rebound until 2013. No doubt the U.S. Government will do all it can to bolster the high end and prevent this from happening however this being in print alone may put pressure on the high end – as you are well aware the media has a way of driving consumer sentiment.

Questions? email me, Tracy Pina

What is Happening in Our Local Market

• The Sweet Spot: $300K-$800K – this is where the majority of activity this year has taken place. This is where we are seeing multiple offers and stability.

• Continued strong volume in the lower end with purchases being powered by cash. Investors, notably from the East Coast and China, are buying California real estate – unfortunately making it tough for first time homebuyers.

• Foreclosures are still the route de jour for the banks – they are able to write off losses this year against gains from the past 3 years (this was extended from last year), BUT short sales are getting approved to a degree – just depends on the numbers.

The Intero Insider

The Intero Insider

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Real Estate: Moving into the hands of the U.S. Government

With congressional elections coming in 2010 the new administration has a window of time to correct the housing market and reach “stability.” They have exercised control over the market thus far - although it may not be transparent. As with many other U.S. industries, there have been increased regulations for the benefit of the end consumer.

The U.S. Government now has a substantial ownership in U.S. banks, 26% ownership for example in BofA. Where we have seen control being exercised besides their ownership and say in bank activities on the selling side (REO inventory flow) is through increased truth-in-lending regulations and timelines for delivery of disclosures to the consumer (the buying side).

At the end of the day what does this mean? It means the probability of longer contingency time frames and longer escrows BUT it also means we will reach stability – in fact we have to a degree. In many markets we are back to multiple offers and stable prices.

It’s a balance of supply and demand that so far is working.

For more info email me.

Mortgage Disclosure Improvement Act, Effective July 30th

New Guidelines for all lenders both wholesale and retail are going into effect July 30th.

These new guidelines will affect COE (close of escrow) time frames and financing contingency timeframes. Buyers and Sellers expect longer timelines.

Short version…appraisals cannot be ordered until 4 days after upfront disclosures are mailed from the lender to the Buyer. Also if APR is .125% higher at docs than it was in the upfront disclosures, a new disclosure will have to go out to the borrower and it will take another 6-7 days before lending docs can be ordered. On a lower purchase price, .125% is a very small number. Since an appraisal cannot be ordered until four days after the file is received by the lender, Realtors will need longer financing contingency time frames.

Just like other fair lending disclosures acts/laws, this is supposed to help the consumer. That remains to be seen. One thing we know for sure, the more educated we are about this, the better.

If you would like more information, email me.

Tracy Pina

Loan Modification and Short Sale Seminar

Property Tax Appeals - Deadline is August 15th

Information directly from: http://www.sccassessor.org/

If you think your property is being taxed on a value that is higher than its current market value, submit a Prop 8 temporary relief form (http://eforms.sccgov.org/lfserver/DeclineInValueRequest) or contact the Assessor's Office, and ask for a review form.
Assessment Review Requests should be submitted to the Assessor's Office no later than August 15, of the current assessment year. After August 15, taxpayers are advised to file an assessment appeal with the Clerk of the Board.
Important Points
· The Assessor can only consider the market value of your property as of the lien date (January 1st).
· The market value of your property will be determined by analyzing sales of comparable properties in the area.
· Properties with characteristics similar to yours must have sold for less than your current assessed value.
· Supplemental Assessments will not be revised due to Proposition 8 reviews.

MORE INFORMATION: Santa Clara County Assessor’s Office: http://www.sccassessor.org/ Under Quick Links there is a link to Assessment Appeals – you will see full information and a Q&A


**For assistance with comparable sales in your area email or call me**
Tracy Pina

Market Update and Good to Know Information

I continue to see good market activity across price points and neighborhoods. To give you a better snapshot of what is happening in Santa Clara County real estate, here are some of the latest statistics:

Santa Clara County Statistics

CURRENT INVENTORY:
TODAY: 3,278 properties for sale v. 6,732 this time last year

CURRENT PENDINGS:
TODAY: 3,902 under contract v. 2,215 this time last year

HOTTEST AREAS: South San Jose and Blossom Valley
South San Jose: 70% of properties listed on MLS are in contract
Blossom Valley: 69% of properties listed on MLS are in contract
*In these areas, I am seeing multiple offers, buyers are needing to bid 5-10% over asking price to be competitive and considered.

SLOWEST AREA: Los Gatos
Los Gatos: 22% of properties listed on MLS are in contract

INFORMATION UPDATE:
Beginning August 15th: Listings MUST have one Photo, and must have at minimum one photo be of the front of the home. - - Good news for frustrated buyers looking at homes online!


INSURANCE FOR YOUR HOME PURCHASE:

• C.A.R. (California Association of Realtors) now offers protection for new home buyers. Any W-2 employee/new homeowner that loses their job can tap into CAR services to help cover their mortgage.
• Bank of America also offers coverage up to 12 months if you have a BofA home loan.

For more information, email me.

Tracy Pina

Market Update:The REAL Scoop

Bank-owed homes are throwing the overall market stats, what you read/hear in the News is not exactly the correct picture. Here's the real scoop on the market...

MARKET UPDATE

• April and May have seen a dramatic pick up in activity under $900,000. At the lowest end we are seeing and have been seeing for the last 2 months multiple offers - as clarification, I mean anywhere from 10-30 offers on one property. There are many cash-heavy players out there right now - tough times for an entry point buyer.

• First Time Buyers Stay Tuned. We are in a mini-market. Banks are holding their inventory of homes, they WILL be coming in 60 days. They will NOT flood the market but this should offer some relief, and hope, for FHA-approved and conventional first time buyers with little money to put down. (This is info that is not widely known, not even in the real estate community, if it was buyers wouldn't be bidding up homes like crazy. Your advantage!)

• Investors Gear Up. Bank owned homes are coming to the West side. Albeit the majority are still in South and East San Jose we will see opportunities in Cambrian, Campbell, Santa Clara, Willow Glen - dare I say Los Gatos (we have a few now!).

• Attention Stat Lovers: This week in Santa Clara County there were 272 Notice of Defaults issued (homeowners not paying their mortgage), 14 homes sold by court auction, and 329 homes went back to the banks (foreclosed). Last year our numbers were roughly half at this time of year. To put the volume into perspective, we have had year to date just over 5,300 bank-owned homes, last year, there was a total of 5,748. Wow!

• Attention SELLERS: If you haven't realized it yet after reading the last few bullets, this is your opportunity to get the HIGHEST POSSIBLE PRICE. Low inventory plus strong demand has created a GREAT time for sellers. Properties are moving, particularly as you go down in price range. List now! In 60 days the market will be back to "normal."
  

April 2009 Santa Clara County Closings - Broken Down by Type to give you the TRUE picture
1. Short Sales
96 SOLD Average Sale Price: $471,304 % of Last List Price Recvd: 98.5% % Original List Price Recvd: 84.7% (meaning it sold for 15% less than original list)

2. REO (Bank Owned Homes)
451 SOLD Average Sale Price: $389,032 % of Last List Price Recvd: 99.9% % Original List Price Recvd: 93.8% (highest demand for this category)

3. Regular Sales
409 SOLD Average Sale Price: $849,338 % of Last List Price Recvd: 93.7% % Original List Price Recvd: 88.9% (Great justification for going in low on your offer in the upper price ranges)

**If you are interested in learning more about the REO/Short-Sale market and the upcoming opportunities, Intero Los Gatos will be offering a seminar in early July. I will post the information soon.**

Hope this is helpful. Always appreciate your feedback/requests for information.

Tracy Pina

Real Estate Market Update

• Activity continues to rise at open houses and with sales. Great homes, priced right, are selling within 7-14 days with multiple offers in most areas and most price points.
• April inventory is down approx 4% from March (Santa Clara County Single Family Home)
• Closed sales are up 26% for April. (Santa Clara County SFH). Sales are averaging 96% of last listed price.
• Average Days on Market remains at approx 100 Days.
• REO's: Still being held back by the banks - slowly coming to market and slowly moving West.

Want more info? Contact me.

Tracy Pina

http://www.FindYourNextHome.info

http://www.FindYourHomeValueNow.info

General Market Overview and Statistics - Mixed signs, still a very neighborhood specific market

General Overview of What I am Seeing

• Incremental evidence of a pick up in the higher end. The number of sales have been inching up over the last several weeks in the $1MM+ market.
• There is an increased number of move-up buyers. I am seeing many mid-tier price range listings being sold by Sellers looking to take advantage of the market and move up, even if that means selling their current home at a loss.
• Lender requirements continue to change regularly, large down payments are preferred. FHA loans are becoming increasingly prevalent and offer a great option for those with a smaller down payment. Once in contract, expect longer financing contingency periods, lenders are triple checking everything.
  

REO (Bank Owned Homes) Statistics

• 53% of all REO sales in March sold over asking price.
• REO sales prices are averaging 5% over list price, majority are selling with multiple offers - anywhere from 5 to 35 offers per property in a variety of locations and price ranges.
• REO Sales are at 300-350 per month.
• REO's continue to come to the West side of the Bay, there are currently REO's in Sunnyvale, Los Gatos (over $1MM) and Willow Glen (over $1MM)
• More to come - the banks are still holding their inventory back.

Short Sales

• Short sales are still here and are closing, albeit slower, stats are showing an average of 80-100 short sales closing each month.

Loan Modifications
Bank of America now has a quick look up system to check to see if you will qualify. If you are interested in finding out if you can adjust your loan, call Tracy Garner, Mortgage Loan Officer, at (831) 239-4550 or email her at tracy.a.garner@bankofamerica.com

Email me with any questions or interest in exploring the market.

Tracy Pina

Willow Glen Market Update (3/26/2009)

Highest Priced Home Sold Since Jan 2009: 1671 Campbell Avenue, sold 1/5/09. List Price: $1,799,000, Sale Price: $1,550,000

Highest Priced Home Currently for Sale: 1600 Norman Avenue, 6+Bd/4+Ba List Price $2,895,000

Average Price of Homes for Sale in Willow Glen: $1,278,939

Lowest Priced Home Currently For Sale: 523 Felix Way, 2Bd/1Ba Townhome. List Price: $225,000

Number of Homes Currently for Sale in Willow Glen: 281 (SFH/Townhomes/Condos)

Average Time on Market Before Selling: 119 Days (although if they are priced right they are moving withing 14-21 days)

Number of Homes Currently in Escrow: 80

Interested in knowing how much your home would sell for today?? Go to http://www.FindYourHomeValueNow.info for a free computerized analysis.

LG Broker Tour Wow -Greener Living in Los Gatos

Today's Los Gatos Broker Tour was full of new great options for those looking to get into LG at any price - my favorites were...

90 Reservoir Road $4,349,000 5Bd/4+BA - New Construction by Tony Jeans

If you are looking for new, high-end and GREEN, Tony Jeans is presenting a great option. He has meticulously crafted a subdivision of stunning new homes nestled in the Los Gatos foothills right in downtown Los Gatos off College Ave. The first to come on the market is a stunning 5,100+/-SF home full of natural light, beautiful materials and views. Listed by Carol Jeans, and available for open viewing on Sunday, 3/22 from 2-4PM.

134 Hernandez Ave, $3,698,000 4Bd/4+Ba

This is worth looking at if you are at all considering LG and are in the high end price range. A beautiful, very classic home all re-done in 2003 - full of grace and elegance while maintaining a warm comfort of home. Probably one of the best I've seen in a long time. Plus you are in the prestigious Glen Ridge neighborhood -walking distance to town and Bachman Park. It may be over the top for some - there's a pool and a tennis court nestled below in the oak trees - very picturesque. Listed by Ducky Grabill.

114 Olive Street, $888,000 2Bd/1Ba

So cute and well laid out. This is a perfect starter home for those desiring a great central LG location. It is also perfect for an empty-nester looking to downsize. Complete with a charming backyard - and did you see the great price?

For more info on these homes email me.

Tracy Pina

An Opportunity of a Lifetime By Joel Ferrill, Pacific Valley Financial

Warren Buffet says, "A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful." While Mr. Buffet was writing about buying stocks, the same can be said for housing today.

Housing issues have permeated the economy both locally and nationally. This week, one index that tracks housing prices, S&P/Case-Shiller Home Price Indices, indicated home values fell the most since 1968, declining 18.5% in December from the year before.

Looked at from a different perspective, this means home prices have fallen to levels not seen in six to twelve years, depending on individual markets. Following the Case-Schiller report was the report from the National Association of Realtors (NAR) recently. The NAR reported that home prices for the month of January fell by 14.8%.

The bright spot though in contrast was that the number of homes sold in December increased. Home buyers from coast-to-coast have been buying distressed properties at the rate of 45% of total sales.

Recognizing that now is the time to buy, everyone – from those looking to purchase their first home to seasoned real estate investors – is buying homes today. Bruce Norris, the head of an investment group in Southern California, expects to buy at least 100 homes this year as, "This is the buying opportunity of our lifetime."

Fundamentals Point to Strength The basic fundamentals of the housing market point to higher prices ahead. Almost half of the properties being sold today are existing homes that are either owned by banks or homes on which banks are accepting short sales, allowing them to be sold for less than what is owed.

New homes or homes under construction are near all-time lows. The country's demographics point to more potential buyers coming into the housing market than projected inventory in coming years. This all points to higher prices on the horizon as demand will be greater than supply. This is supported by the fact that the inventory of unsold homes fell 2.7% in January.

Why Buy Now? Three very important reasons to buy now are:
---Interest rates are near all time lows;
---Home prices have declined to levels not seen in years; and
---Qualified first-time home buyers are now eligible for up to an $8,000 tax credit.

Lower Prices Don't Always Equate to Lower Payments One final point to consider. Even if you believe that home prices will continue to decline, it's very difficult to believe that interest rates will remain at these low levels.

Did you know that even if home prices were to decline 10% but also during that time, interest rates available for home loans were to increase by 1.00%, your monthly principal and interest payment would actually be higher? It's true. So, if you are thinking of buying or the end of your lease is near, get busy and get in the game. To quote Mr. Buffet again, "If you wait for the robins, spring will be over."

Call Joel to discuss the best options for you today.

Joel Ferrill
Owner/Creator of Financial Opportunities
Pacific Valley Financial
800-820-3070
jferrillpvf@sbcglobal.net

Great Buy in Los Gatos

239 Prince Street, Los Gatos $899,000

Open House Sat & Sun 1-4PM

This lovely Los Gatos home features many new upgrades, including new Arts & Crafts style lighting, designer paint colors, dual paned windows and a high efficiency heating and air conditioning system. Located in a wonderful neighborhood nestled against the foothills, this home is in the district for Marshall Lane Elementary School – a California distinguished school.

More Info & Photos: www.239Prince.com and www.239Prince.info

If you would like a private viewing of this home email me.

Tracy Pina

More on the First Time Homebuyers Credit...

First-time homebuyers also get a tax break under the plan. A credit would allow them to subtract $8,000 from the income tax they owe for 2009 for a principal residence purchased through Nov. 31, 2009. It phases out for individuals with adjusted gross income between $75,000 and $95,000 ($150,000 and $170,000 for joint filers). The credit is also available to taxpayers who haven't bought a home for the past three years. The homebuyer credit doesn't have to be repaid if the home isn't sold for at least 36 months.

More questions or interested in taking advantage of this FREE money? email me.

Tracy Pina

Federal Stimulus Update

Recently the U.S. Senate unanimously adopted an amendment to the tax portion of the stimulus package that would allow a tax credit of 10 percent of the value of new or existing residences, up to a $15,000 limit, for all purchasers, not just first-time homebuyers, in 2009 for a primary residence. Taxpayers would claim the credit on their 2008 income tax return. It also seeks to prevent misuse by only allowing purchases of a principal residence and by recapturing the credit if the home is sold within two years of purchase. The amendment would sunset the current $7,500 housing tax credit on the date of enactment.

The House-passed version of the bill continues the current $7,500 credit for first-time homebuyers and eliminates the repayment feature of the credit, but only for purchases that occur between January 1, 2009 and June 30, 2009.

The Senate legislation so far does not include the loan limit increase for FHA and GSEs, but NAR is urging its inclusion. The House-passed bill reinstates and makes permanent last year's temporary FHA and conforming loan limits of $729,750, as sought by NAR. Limits currently are $625,500.

(This information was received by me from my local board, the Silicon Valley Association of Realtors)

If you would like more information on this please email me.
Tracy Pina

3 Great New Listings in Willow Glen

Top picks from Willow Glen's Broker Tour today...

1. 1516 Cherry Garden Lane, List Price $1,089,000 - A fabulous home in a GREAT neighborhood. 3/3, 2,427+/-SF. The pictures do not do this house justice - if you are at all looking in the market and know this is in your range you need to see it. It was the best of tour today.

2. 1176 Britton Ave, List Price $779,000.

If you are looking for a downtown location at a great price Britton is it. 3/2, 1,378+/-SF, 10,260+/-SF Lot (attn builders!).

3. 2858 La Jolla Ave, List Price $559,000.

Located on the Cambrian border, this is a home with good bones in GREAT schools (Bagby, Ida Price). Value consensus today was $500,000 - get to it soon before the MLS price gets reduced - once it does, it'll go quick.

For more information on these homes or others in email me.

Tracy Pina

The Latest Market Update - REOs Continue.

Hot Statistic: 236,000 foreclosures in California in 2008, 560 were in December.

This WEEK: Pending sales are UP, Inventory is DOWN. Why? Investors, foreign and local are buying as much as they can, Sellers are holding/contemplating what to do, Banks are holding back inventory (for now).

So What is Going On Right Now?
Fannie Mae in pressuring banks to offer rent backs to owners (or former owners). In addition, the banks are holding more of their inventory... for the time being. There are initiatives and movements across the United States to assist homeowners with keeping their homes and/or staying in them.

Locally, we have seen what looks to be a bottom on the East side of the Bay. Expect prices to remain flat for the next several years - up to 5 years. Rental rates have continued to increase - what was renting for $1,400 a few months ago is now renting for $2,000. This presents a great market for investors. That being said, we are beginning to see foreclosures come to the West side which will quickly be followed by pricing pressure (we've already begun seeing it).

What does all this mean for the market and for you?
A likely extension of the recovery - we are now looking out to 2012, versus 2009. For buyers, it means great opportunities now and more to come. For those contemplating selling in the near term, give serious consideration to modifying your plans and staying for the next 5-8 years. If that doesn't fit, the best time to sell is probably right now.

If you want more information specific to your neighborhood, email me.

If you are interested in investing and want more details on the REO (bank-owned) market, email me. There IS a method to the madness and a way to win in this multiple offer, low communication, low information market segment.

Tracy Pina

Quotable Notable Market Stats

Some interesting stats on today's real estate market, perfect sound bites to share when people ask you what your opinion is...

• 76 million households in the US own their own home, 24 million of them are owned free and clear.
• 52 million households with mortgages, 97.2% of those are NOT in foreclosure, 93.8% of those ARE current on their payments.
• 20% of homeowners with a mortgage owe more than their homes are worth.
• 40% of all foreclosures are non-owner occupied.

2008 School API Scores (Academic Performance Index)

For information on the latest ratings of our schools follow the links below.

California Department of Education API List of Schools

Santa Clara County 2008 Growth API Report
last update 11/12/08

Santa Clara County 2007 Base Academic Performance Index (API) Report
This site rates schools on a scale of 1-10, as of 8/20/2008.

Hope you find this information helpful - Tracy Pina

Stunning Willow Glen Home Not on MLS (yet)

Not Yet On the MLS... A Quintessential Carmel Ranch Home. So much appeal and charm, you really will think you are in Carmel. Just perfect for a couple or family looking for something different, full of light, full of charm, and with a fabulous large dining room. This is a must see home.

4Bd/3.5Ba, 3,800 SF (yes, that big!) on a 11,500+/-SF Lot located on the highly desirable and presetigious Mulberry Lane in Willow Glen. Listed by my colleague, Valerie. Price will be below $2MM.

This is a one of kind home that you rarely see. If you have any interest or know someone that does feel free to pop me an email, Tracy Pina.

Tracy Pina

Best of Los Gatos Broker Tour

15400 Winchester Blvd, #28, Los Gatos, CA $899,000

The best find out there today, that I saw, was a condominium in a located on Winchester Ave. I really like this complex, it's quiet, clean, has good upkeep, it's a convenient location. This unit is listed for $899,000 (it may sound high but they have been selling above $900K for years). Open, spacious, great location at the back of the complex.

If you are interested in seeing more of what Los Gatos has to offer this week email me, Tracy Pina or go to http://wwwfindyournexthome.info/

Tracy Pina

Best of Los Gatos Broker Tour

Two tops picks today from Los Gatos Broker Tour. These new listings are worth checking out.

1. 18021 Rose Court. $895,000 LAND VALUE. (no photo)

Great price for 8,190+/-SF lot. The home is condemned so this truly is land value. A fantastic cul-du-sac, Los Gatos Schools. Worth considering if you are a builder or interested in building a home in Los Gatos.

2. 17660 Vineland Ave, $2,495,000 - Beautiful Tuscan Home.

4Bd/3.5Ba, 2,900+/-SF Very appealing home, great location in Los Gatos, tastefully done, large open beamed family room, comfortable bedrooms. The photos on MLS do not do this home justice - worth seeing in person.

For more information or to schedule a time to see properties click here. Tracy Pina

2009 Market Indicators - What we are seeing out of the gate...

· Signs of the Bottom: We are seeing evidence of the bottom in the worst hit area, Alum Rock - a neighborhood in San Jose.
· Buyer activity: Tripled since the first of the year - open house traffic is dramatically up, phones are ringing more, investors are moving in.
· Buyer sentiment: People are expecting a good deal, they want to take advantage of the declined market but still believe prices may come down a bit.
· Herd mentality: Expect the masses to really come out mid year, perhaps as early as April, leading to a higher rate of multiple interest and multiple offers (we are seeing them now in the low end and in the cream of the crop/priced to sell properties)
· REO Properties: The banks are holding their inventory - expect a new uptick in the volume of REO listings in the next 60 days. The rate of foreclosures has not changed.
· Loan Modification and Short Sales: Banks are being strongly encouraged to work with homeowners to reduce the number of foreclosures.

For more information, or if you want to "beat the herd" contact me, Tracy Pina or go to Find Your Next Home.

The Global Pool of Money - A look at the sub-prime market crash

This Saturday KQED re-aired a fantastic piece explaining in very understandable and enlightening terms the sub-prime market collapse. This is a great piece for anyone - those that are familiar (or think they are) to those that would like to understand what did happen.

I also believe it's a great piece to educate your kids with - entertaining and understandable. Great interpretations of what Greenspan says and what those in the global financial markets hear (much different then what I hear!)

To access the audio file:
Go to this link (archives of "This American Life" Program), scroll down to May 9, 2008.
http://www.thislife.org/Radio_Archive.aspx?year=2008#5

And let me know what you think.
Tracy Pina

Loan Modification - A Great Alternative

If you are interested in refinancing, something to consider is the newest to the lending market: loan modification. To qualify a borrower must meet at least one of the following criteria:

1. High Loan-to-Value (90% or higher).

2. Bad credit due to late payments on credit cards, mortgage, medical bills, etc.

3. Adjustable Rate (that has or will change in the future)

4. Option Arm or pick-a-pay loan.

5. Temporary or permanent financial hardship (i.e. job loss, medical emergency, divorce, income reduction, etc.)

6. High Debt to Net Income Ratio

If you believe you may qualify and are interested in seeing if you actually do contact me direct and I will get you started and give you more details. Tracy Pina

$7,500 First Time Buyer Credit (still avail through Jun 30)

The “first-time home buyer credit” is a temporary refundable, repayable tax credit equal to 10% of the purchase price of a home, up to $7,500 for singles and married couples filing jointly. (Singles who buy a house together get only $3,750 each, as do married couples filing their tax returns separately.)

Be aware it is actually an interest-free loan. Two years after you claim this credit, you are required to begin payback over 15 years in 15 equal installments–an extra $500 on your tax return each year. Sell your house, and you have to pay the rest back that year from your profits. (No profits, no pay back. If you die, heirs are off the hook.)

The allowed credit starts being reduced once a single has $75,000 of modified adjusted gross income, or once a couple has $150,000 of income. The credit goes away entirely at $95,000 for singles and $170,000 for couples.

What is the definition of a first-time home buyer?

The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.

THE FULL DETAILS: http://www.federalhousingtaxcredit.com/glance.php

Best of Broker Tour: Home Deals in Los Gatos

110 Greendale Drive, Los Gatos, $975,000

Wow! Now this is a good price.

After starting at $1,150,000 this is now down to $975,000 - and should not last. Prices have and I dare say are still dropping. It's a great time to get out there and shop. These deals will go away mid-year when the everyone begins to start their buying plans. Beat the crowd (multiple offers?) and get in now.

Remodeled, spacious, 4BD home in Los Gatos Schools!

Rental rate estimate on this house: $3000-$3200/month