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Mortgage Backed Securities have dropped 263 base points since their low on November 27th. This information along with the information the Fed is winding down the buying of Mortgage Backk Securities, as stocks and cash are becoming more attractive alternatives, along with that the existing home sales figures coming in higher then expect ( 6.54m sold v. 6.2m expected) there is increasing press on interest rates to climb upward next year. Add to that the Dow is now over 10,000, the low was at 6,763.29 in March 2009.
Buyers who are waiting for prices to fall further may be in for a surprise when as interest rates climb and their buying power gets smaller. Remember, the amount of house you can afford is dependent on the purchase price of the mortgage = the interest rate.
Now is the time to buy while home prices and interest rates are still low at the same time.
To learn more call me at 925-548-1699
Tuesday, December 22, 2009
Thursday, February 26, 2009
Should I Rent or Should I Purchase
It is hard to decide just what to do these days regarding real estate. We know home values have dropped signficantly in most areas and interests for a 30 year fixed mortgage are at an all time low. So what is a person to do? First the decision to purchase a home is a purely personal one and one that should not be taken into lightly. We have seen and are living the effects of buyers entering into home purchasing without fully understanding what they were doing and the pit falls of easy money. So, here is what I recommend when deciding to purchase or rent, take out piece of note book paper and write down the pros and cons of both. Let me help get you started:
Pro's:
Tax benefits, mortgage interest and property taxes are among the biggest financial benefits of home ownership.
Long term financial benefit, otherwise know as equity, traditionally homes have been viewed first as a place to live and second as a financial investment which is why it is a long term investment.
Home owners are more likely to invest money into their home over renters thus adding to the economic growth of their community as well as pride of home ownership.
Con's
Home ownership is a long term investment and you have to want to live in the home for several years to come. If you think you would want to move within the next 3 years owning may not be the right thing for you, right now.
It may be cheaper to rent, if something breaks or is in need of repair as a tenant you simple call the landlord and he or she takes care of it.
Property values are still dropping and I want to wait.
There are just as many reasons to purchase a property as to not. As a potential home owner you have to decide if the time is right for you or not. As a real estate agent I see both sides and if you are thinking of purchasing have all your facts in front of you before going forward. Study the market and know what kind of loan you will be getting and if you will be staying put for several years to come, now is a good time to purchase.
Pro's:
Tax benefits, mortgage interest and property taxes are among the biggest financial benefits of home ownership.
Long term financial benefit, otherwise know as equity, traditionally homes have been viewed first as a place to live and second as a financial investment which is why it is a long term investment.
Home owners are more likely to invest money into their home over renters thus adding to the economic growth of their community as well as pride of home ownership.
Con's
Home ownership is a long term investment and you have to want to live in the home for several years to come. If you think you would want to move within the next 3 years owning may not be the right thing for you, right now.
It may be cheaper to rent, if something breaks or is in need of repair as a tenant you simple call the landlord and he or she takes care of it.
Property values are still dropping and I want to wait.
There are just as many reasons to purchase a property as to not. As a potential home owner you have to decide if the time is right for you or not. As a real estate agent I see both sides and if you are thinking of purchasing have all your facts in front of you before going forward. Study the market and know what kind of loan you will be getting and if you will be staying put for several years to come, now is a good time to purchase.
Tuesday, February 3, 2009
National Numbers On Home Gains
National numbers on Home Gains - but remember real estate is like the weather and to see what the real estate weather looks like in the Tri-Valley are of Northern California go to PleasantonRealEstateLink.com
Existing-Home Sales Show Surprising Gain Existing-home sales rose unexpectedly while inventory declined, led by a surge of sales in the West, according to the National Association of Realtors®.Existing-home sales – including single-family, townhomes, condominiums and co-ops – jumped 6.5 percent to a seasonally adjusted annual rate of 4.74 million units in December. The number compares to a downwardly revised pace of 4.45 million units in November, but 3.5 percent below the 4.91 million-unit pace in December 2007. For all of 2008, there were about 4.9 million existing-home sales -- 13.1 percent below the 5.65 million transactions recorded in 2007. This is the lowest volume since 1997 when there were 4,371,000 sales.Lawrence Yun, NAR chief economist, said home prices continue to fall significantly. “It appears some buyers are taking advantage of much lower home prices,” he said. “The higher monthly sales gain and falling inventory are steps in the right direction, but the market is still far from normal balanced conditions. Buyers will continue to have an edge over sellers for the foreseeable future.”Total housing inventory at the end of December fell 11.7 percent to 3.68 million existing homes available for sale, which represents a 9.3-month supply at the current sales pace, down from a 11.2-month supply in November.Yun said the market is underperforming and hurting the broader economy. “We’ve added 25 million people to our population over the past decade and housing affordability conditions are the best we’ve seen since 1973, but household formation is much lower than expected,” he said. “Consequently, there is a pent-up demand which could be unleashed with the right stimulus, including a non-repayable home buyer tax credit. The Obama administration and Congress need to move fast to stimulate a spring sales upturn which will help to stabilize home prices and set the foundation for a sustainable economic recovery.” Housing StatsNational median existing-home price: (for all housing types) was $175,400 in December, which is 15.3 percent below December 2007 when the median was $207,000. There remains a significant downward distortion in the current median from a large number of distress sales at discounted prices, currently 45 percent of transactions; the median is where half of the homes sold for more and half sold for less. For all of 2008, the median price was $198,600, down 9.3 percent from $219,000 in 2007.Single-family home sales: rose 7 percent to a seasonally adjusted annual rate of 4.26 million in December from a level of 3.98 million in November, but are 1.4 percent below a 4.32 million-unit pace in December 2007. For all of 2008, single-family sales fell 11.9 percent to 4,349,000.Median existing single-family home price: dropped to $174,700 in December, down 14.8 percent from a year ago. For all of 2008, the single-family median was $197,100, which is 9.5 percent below 2007.Existing condominium and co-op sales: increased 2.1 percent to a seasonally adjusted annual rate of 480,000 units in December from 470,000 in November, but are 18.4 percent below the 588,000-unit level a year ago. For all of 2008, condo sales dropped 21.0 percent to 563,000 units.Median existing condo price: slipped to $181,400 in December, down 18.3 percent from December 2007. For all of 2008, the median condo price was $210,000, which is 7.2 percent below 2007.Existing-Home Sales By Region
Northeast: slipped 1.4 percent to an annual pace of 720,000 in December, and are 14.3 percent below December 2007. The median price in the Northeast was $235,000, which is 7.8 percent lower than a year ago.
Midwest: increased 4.0 percent in December to a level of 1.04 million but are 10.3 percent below a year ago. The median price in the Midwest was $140,800, down 11.4 percent from December 2007.
South: rose 7.4 percent to an annual pace of 1.74 million in December, but are 11.2 percent lower than December 2007. The median price in the South was $158,600, which is down 8 percent from a year ago.
West: jumped 13.6 percent to an annual rate of 1.25 million in December and are 31.6 percent higher than a year ago. The median price in the West was $213,100, down 31.5 percent from December 2007. A Good Time to BuyNAR President Charles McMillan said it’s an excellent time for first-time home buyers with good jobs. “The typical buyer plans to stay in their home for 10 years, which is the correct approach in today’s market,” he said. “With historically low mortgage interest rates, flexible sellers, a large inventory, and homes that are selling for less than replacement construction costs in much of the country, buyers who’ve been on the fence should take a closer look at today’s market.” McMillan added that first-time buyers may want to consider an FHA loan, which offers downpayments of 3.5 percent on a safe 30-year fixed-rate mortgage.According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 5.29 percent in December from 6.09 percent in November; the rate was 6.10 percent in December 2007. Last week, Freddie Mac reported the 30-year rate was 5.12 percent.Source: NAR
Existing-Home Sales Show Surprising Gain Existing-home sales rose unexpectedly while inventory declined, led by a surge of sales in the West, according to the National Association of Realtors®.Existing-home sales – including single-family, townhomes, condominiums and co-ops – jumped 6.5 percent to a seasonally adjusted annual rate of 4.74 million units in December. The number compares to a downwardly revised pace of 4.45 million units in November, but 3.5 percent below the 4.91 million-unit pace in December 2007. For all of 2008, there were about 4.9 million existing-home sales -- 13.1 percent below the 5.65 million transactions recorded in 2007. This is the lowest volume since 1997 when there were 4,371,000 sales.Lawrence Yun, NAR chief economist, said home prices continue to fall significantly. “It appears some buyers are taking advantage of much lower home prices,” he said. “The higher monthly sales gain and falling inventory are steps in the right direction, but the market is still far from normal balanced conditions. Buyers will continue to have an edge over sellers for the foreseeable future.”Total housing inventory at the end of December fell 11.7 percent to 3.68 million existing homes available for sale, which represents a 9.3-month supply at the current sales pace, down from a 11.2-month supply in November.Yun said the market is underperforming and hurting the broader economy. “We’ve added 25 million people to our population over the past decade and housing affordability conditions are the best we’ve seen since 1973, but household formation is much lower than expected,” he said. “Consequently, there is a pent-up demand which could be unleashed with the right stimulus, including a non-repayable home buyer tax credit. The Obama administration and Congress need to move fast to stimulate a spring sales upturn which will help to stabilize home prices and set the foundation for a sustainable economic recovery.” Housing StatsNational median existing-home price: (for all housing types) was $175,400 in December, which is 15.3 percent below December 2007 when the median was $207,000. There remains a significant downward distortion in the current median from a large number of distress sales at discounted prices, currently 45 percent of transactions; the median is where half of the homes sold for more and half sold for less. For all of 2008, the median price was $198,600, down 9.3 percent from $219,000 in 2007.Single-family home sales: rose 7 percent to a seasonally adjusted annual rate of 4.26 million in December from a level of 3.98 million in November, but are 1.4 percent below a 4.32 million-unit pace in December 2007. For all of 2008, single-family sales fell 11.9 percent to 4,349,000.Median existing single-family home price: dropped to $174,700 in December, down 14.8 percent from a year ago. For all of 2008, the single-family median was $197,100, which is 9.5 percent below 2007.Existing condominium and co-op sales: increased 2.1 percent to a seasonally adjusted annual rate of 480,000 units in December from 470,000 in November, but are 18.4 percent below the 588,000-unit level a year ago. For all of 2008, condo sales dropped 21.0 percent to 563,000 units.Median existing condo price: slipped to $181,400 in December, down 18.3 percent from December 2007. For all of 2008, the median condo price was $210,000, which is 7.2 percent below 2007.Existing-Home Sales By Region
Northeast: slipped 1.4 percent to an annual pace of 720,000 in December, and are 14.3 percent below December 2007. The median price in the Northeast was $235,000, which is 7.8 percent lower than a year ago.
Midwest: increased 4.0 percent in December to a level of 1.04 million but are 10.3 percent below a year ago. The median price in the Midwest was $140,800, down 11.4 percent from December 2007.
South: rose 7.4 percent to an annual pace of 1.74 million in December, but are 11.2 percent lower than December 2007. The median price in the South was $158,600, which is down 8 percent from a year ago.
West: jumped 13.6 percent to an annual rate of 1.25 million in December and are 31.6 percent higher than a year ago. The median price in the West was $213,100, down 31.5 percent from December 2007. A Good Time to BuyNAR President Charles McMillan said it’s an excellent time for first-time home buyers with good jobs. “The typical buyer plans to stay in their home for 10 years, which is the correct approach in today’s market,” he said. “With historically low mortgage interest rates, flexible sellers, a large inventory, and homes that are selling for less than replacement construction costs in much of the country, buyers who’ve been on the fence should take a closer look at today’s market.” McMillan added that first-time buyers may want to consider an FHA loan, which offers downpayments of 3.5 percent on a safe 30-year fixed-rate mortgage.According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 5.29 percent in December from 6.09 percent in November; the rate was 6.10 percent in December 2007. Last week, Freddie Mac reported the 30-year rate was 5.12 percent.Source: NAR
Pleasanton School Cut Backs
This article is being brought to you by Wraijean Crane, Realtor serving the Tri-Valley area. For information on the local real estate market you can visit my website at www.PleasantonRealEstateLink.com
Pleasanton School District Deals with Budget Woes: The Pleasanton Unified School District (PUSD) must cut $8.7 million from its $120 million budget. PUSD Superintendent John Casey, PhD. conducted a community meeting on Monday and spoke to REALTORS® on Friday at the Valley Marketing meeting to prepare the community for what these cuts may mean in terms of school services and performance. According to Casey, the revenue shortfall is a direct result of cuts in state education funding.
During his presentation at the VMA meeting Casey stated the size of the budget cuts could require the district to lay off more than 100 employees and reduce some school programs. Dr. Casey could not quantify the direct impact these cuts would have on student performance.
In addition to cutting expenditures the PUSD is also seeking additional revenue. A school funding parcel tax is at the top of a short list of potential new funding sources. Adoption of the proposed tax would require a two-thirds majority vote by Pleasanton residents. At this point the District has not made a final decision to place a parcel tax on a June ballot or what the amount of such a tax would be.
REALTOR® Impact: School performance is a major factor in real estate values in Pleasanton. A parcel tax would also directly impact property owners.
Next Steps: The PUSD is actively seeking community input on the budget situation and possible solutions. They are holding a series of meetings over the next few weeks including:
Special PUSD Budget Workshop: Tuesday, February 3 from 5:00 to 7:00pm at the District Office located at 4665 Bernal Avenue in Pleasanton.
Community meeting: Wednesday, February 4 at 7:00pm in the Foothill High School Multi-Purpose Room. Foothill High School is located at 4375 Foothill Road in Pleasanton.
PUSD Board of Trustees Meeting: February 24 at 7:00pm at the District Office. At this meeting the PUSD Board will take preliminary action on how the district will respond to the cuts.
For more information please visit the PUSD website
Pleasanton School District Deals with Budget Woes: The Pleasanton Unified School District (PUSD) must cut $8.7 million from its $120 million budget. PUSD Superintendent John Casey, PhD. conducted a community meeting on Monday and spoke to REALTORS® on Friday at the Valley Marketing meeting to prepare the community for what these cuts may mean in terms of school services and performance. According to Casey, the revenue shortfall is a direct result of cuts in state education funding.
During his presentation at the VMA meeting Casey stated the size of the budget cuts could require the district to lay off more than 100 employees and reduce some school programs. Dr. Casey could not quantify the direct impact these cuts would have on student performance.
In addition to cutting expenditures the PUSD is also seeking additional revenue. A school funding parcel tax is at the top of a short list of potential new funding sources. Adoption of the proposed tax would require a two-thirds majority vote by Pleasanton residents. At this point the District has not made a final decision to place a parcel tax on a June ballot or what the amount of such a tax would be.
REALTOR® Impact: School performance is a major factor in real estate values in Pleasanton. A parcel tax would also directly impact property owners.
Next Steps: The PUSD is actively seeking community input on the budget situation and possible solutions. They are holding a series of meetings over the next few weeks including:
Special PUSD Budget Workshop: Tuesday, February 3 from 5:00 to 7:00pm at the District Office located at 4665 Bernal Avenue in Pleasanton.
Community meeting: Wednesday, February 4 at 7:00pm in the Foothill High School Multi-Purpose Room. Foothill High School is located at 4375 Foothill Road in Pleasanton.
PUSD Board of Trustees Meeting: February 24 at 7:00pm at the District Office. At this meeting the PUSD Board will take preliminary action on how the district will respond to the cuts.
For more information please visit the PUSD website
Wednesday, January 28, 2009
Great Aritcle on what the feds are doing with interest rates. Dont forget to visit me at PleasantonRealEstateLink.com
Fed Plans to Leave Rates Near Zero for 'Some Time'
By: CNBC.com 28 Jan 2009 02:33 PM ET
The Federal Reserve, acknowledging the economy has continued to deteriorate, signaled Wednesday that it will keep using unconventional tools to cushion the fallout, including keeping a key interest rate at a record low for quite "some time."
The Fed agreed—with one dissent—to keep the targeted range for the federal funds rate between zero and 0.25 percent. The funds rate is the interest banks charge each other on overnight loans.
Economists predict the Fed will leave rates at that range through the rest of this year.
"The economy has weakened further," the Fed said. To provide support, it said it would keep rates at rock bottom levels for "some time."
Having taken the unprecedented step of slashing its key rate to record lows at its previous meeting in December, the central bank pledged anew to look to other unconventional ways to revive the economy.
Specifically, the Fed said it is now "prepared" to buy longer-term Treasury securities if the circumstances warrant such action.
Fed Chairman Ben Bernanke and his colleagues are battling a three-headed economic monster: crises in housing, credit and financial markets that—taken together—haven't been seen since the 1930s.
Despite the Fed's aggressive rate-cutting campaign, a string of bold Fed programs and a $700 billion financial bailout program run by the Treasury Department, credit and financial markets are still stressed and far from normal.
At its last meeting in mid-December, the U.S. central bank reduced its target for the benchmark overnight federal funds rate to zero to 0.25 percent, and said rates would likely stay unusually low for some time.
That surprise move to lower its target for the benchmark federal funds rate from one percent put the Fed in uncharted territory. Financial markets had expected the Fed to lower rates by no more than three-quarters of a point, to 0.25 percent.
In its statement at the time, the Fed underscored its commitment to use extraordinary measures, including using its balance sheet to support the credit markets.
The Fed has flooded markets with dollars, more than doubling the size of its balance sheet to more than $2 trillion, and it may shed more light on how it plans to support broken down credit markets in its statement Wednesday. Investors are particularly keen to see whether the Fed signals a willingness to begin buying long-dated U.S. government debt.
.—AP and Reuters contributed to this story.
© 2009 CNBC
Fed Plans to Leave Rates Near Zero for 'Some Time'
By: CNBC.com 28 Jan 2009 02:33 PM ET
The Federal Reserve, acknowledging the economy has continued to deteriorate, signaled Wednesday that it will keep using unconventional tools to cushion the fallout, including keeping a key interest rate at a record low for quite "some time."
The Fed agreed—with one dissent—to keep the targeted range for the federal funds rate between zero and 0.25 percent. The funds rate is the interest banks charge each other on overnight loans.
Economists predict the Fed will leave rates at that range through the rest of this year.
"The economy has weakened further," the Fed said. To provide support, it said it would keep rates at rock bottom levels for "some time."
Having taken the unprecedented step of slashing its key rate to record lows at its previous meeting in December, the central bank pledged anew to look to other unconventional ways to revive the economy.
Specifically, the Fed said it is now "prepared" to buy longer-term Treasury securities if the circumstances warrant such action.
Fed Chairman Ben Bernanke and his colleagues are battling a three-headed economic monster: crises in housing, credit and financial markets that—taken together—haven't been seen since the 1930s.
Despite the Fed's aggressive rate-cutting campaign, a string of bold Fed programs and a $700 billion financial bailout program run by the Treasury Department, credit and financial markets are still stressed and far from normal.
At its last meeting in mid-December, the U.S. central bank reduced its target for the benchmark overnight federal funds rate to zero to 0.25 percent, and said rates would likely stay unusually low for some time.
That surprise move to lower its target for the benchmark federal funds rate from one percent put the Fed in uncharted territory. Financial markets had expected the Fed to lower rates by no more than three-quarters of a point, to 0.25 percent.
In its statement at the time, the Fed underscored its commitment to use extraordinary measures, including using its balance sheet to support the credit markets.
The Fed has flooded markets with dollars, more than doubling the size of its balance sheet to more than $2 trillion, and it may shed more light on how it plans to support broken down credit markets in its statement Wednesday. Investors are particularly keen to see whether the Fed signals a willingness to begin buying long-dated U.S. government debt.
.—AP and Reuters contributed to this story.
© 2009 CNBC
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