Gary's Blog

5 Tips to Buying a Home on Deadline and How the Tax Credit Extension Can Help

Gary Giffin (Keller Williams Realty) — Tue, 24 Nov 2009 18:32:30 -0600

RISMEDIA, November 24, 2009—(MCT)By Amy Hoak—House shopping usually slows down in the winter, as people put their home searches on hold to trim the tree, buy presents to put under it and avoid the chilly weather. This winter, however, might be different, thanks to the extended—and expanded—first-time home-buyer tax credit.

“We’re going to see far more interest in the fourth quarter than we generally do because of the tax credit,” said Heather Fernandez, vice president of Trulia.com, a real estate search engine. Traffic surged on the site on Nov. 5, the day Congress approved the credit extension, she said.

The new law extends the tax credit for first-time home buyers and opens it up to some existing homeowners as well: The credit is now 10% of the home price, up to $8,000 for first-time buyers and up to $6,500 for repeat buyers. All buyers must have a binding contract on a house in place on or before April 30, 2010. The sale must close on or before June 30. 2010.

To be considered a first-time home buyer, an individual must not have owned a home in the past three years. And to be eligible, existing homeowners need to have lived in the same principal residence for five consecutive years during the eight-year period that ends when the new home is purchased. The credit is only for principal residences.

Income limits have risen as well. According to the IRS, the home buyer tax credit now phases out for individuals with modified adjusted gross incomes between $125,000 and $145,000, and between $225,000 and $245,000 for people filing joint returns.

The inclusion of move-up buyers might inspire homeowners to take action and list their house if they’ve been putting it off, said Carolyn Warren, a Seattle, Wash.-based mortgage broker and banker and author of the book Homebuyers Beware. “If somebody loves their home, it’s not going to entice them to sell. If they’ve had it on the back of their minds and really would like to move up, it might push them into doing it sooner than later,” Warren said.

The credit isn’t expected to have as large of an effect on move-up buyers as it has on first-time buyers, according to the Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions. The maximum tax credit is about 4% of the average purchase price for first-time buyers, but about 2% of the average purchase price for move-up buyers.

“We estimate that the first-time home buyer tax credit will result in a 10% increase in home sales from March through November of 2009,” said Thomas Popik, research director for Campbell Surveys, in a news release. “We’d expect the effect of the proposed tax credit for current homeowners to be about half as large—from December until the tax credit expiration in the spring of next year, it might be 5% of 3 million transactions, or about 150,000 incremental home sales. Incremental sales to first-time home buyers could be an additional 300,000, for a total of 450,000 incremental sales due to the tax credit extension.”

Tips for buyers
Interested in buying a home and claiming the home-buyer tax credit? Below are five tips:

1. Don’t procrastinate. Start searching for a home now. Getting an early start will give you a better chance of finding the right house before the credit deadline. Before you start house hunting, get preapproved for a mortgage, said Eddie Fadel, a Miami-based mortgage banker, and do a realistic assessment of what you can afford. Buyers who have to sell an existing home should price it aggressively from the beginning to drum up interest and get a buyer as soon as possible.

2. Don’t count on another extension. The credit won’t be available forever, Fadel said. If you want to take advantage, be sure to make that spring deadline.

“This is a medication for the housing crisis. Once the patient—which is the housing market—cures, there will be no medication needed,” he said.

3. Mind the interest rates. Mortgage interest rates are low right now, but will likely rise next year. Higher rates will affect your monthly mortgage payments, thus the affordability of the house you are buying. Average rates on the 30-year fixed-rate mortgage have been hovering around 5%, but when the government stops buying large amounts of mortgage-backed securities, rates could rise.

4. Communicate with your lender. Throughout the process, make sure you’re communicating with your lender regularly; if there’s a piece of documentation you’re asked for, get it turned in as soon as possible, said Doug Heddings, a New York-based real estate agent with Charles Rutenberg Realty. Good communication is important in making sure the loan closes on time. And think twice before pursuing a short sale if you want to make the credit deadline. That’s where someone sells a home for less than what he or she owes on a mortgage, with permission of the lender. The process can be lengthy and unpredictable because the homeowner’s lender has to approve any deal, and can be complicated when there is a second mortgage associated with the property.

5. Don’t take shortcuts. Don’t forgo any of the steps you would normally take just to make the tax credit deadline. Make sure the house is a good fit for your needs and get a home inspection. Skipping steps could cost you in the long run.

Permission to re-post by Rismedia-More San Diego Real Estate articles & tips; at Gary Giffin web www.GaryGiffin.com or search for San Diego Real Estate and foreclosure homes at Gary Giffin MLS search www.SanDiegoHomeSold.com

La Jolla New Listing in Windansea area of La Jolla Walking distance to Wind and Sea Beach.

Gary Giffin (Keller Williams Realty) — Sat, 21 Nov 2009 00:57:37 -0600

Gary | Keller Williams Realty | 858-401-0204

6642 Electric, La Jolla, CA

Windansea area of La Jolla. Charming in a beautiful quiet neighborhood walking distance to Wind and Sea Beach. The remodel and addition was completed

3BR/2BA Single Family House

offered at $1,295,995

Year Built	1947
Sq Footage	1,530
Bedrooms	3
Bathrooms	2 full, 0 partial
Floors	2
Parking	Unspecified
Lot Size	2,500 sqft
HOA/Maint	$0 per month

DESCRIPTION

Windansea area of La Jolla. Charming 3/4 bedroom 2 bath in a beautiful quiet neighborhood walking distance to Wind and Sea Beach. This home is light and bright with an open floor plan and wonderful hardwood floors. The remodel and addition was completed in 2000. Great kitchen, bath and master suite with ocean views and a private yard with 1 car garage. The lot is zoed R-2 with potential to build another unit in 92037 zip code.

see additional photos below

PROPERTY FEATURES

- Central A/C	- Central heat	- Hardwood floor
- Family room	- Living room	- Dining room
- Breakfast nook	- Dishwasher	- Refrigerator
- Stove/Oven	- Microwave	- Granite countertop
- Laundry area - inside	- Balcony, Deck, or Patio	- Yard

ADDITIONAL PHOTOS

Photo 1	Photo 2
Photo 3	Photo 4

Contact info:

Gary

Keller Williams Realty

858-401-0204

For sale by agent/broker

Equal Opportunity Housing

Posted: Nov 20, 2009, 9:38pm PST

Will FHA Rule Change Benefit Condo Market?

Gary Giffin (Keller Williams Realty) — Tue, 17 Nov 2009 19:11:55 -0600

Will FHA Rule Change Benefit Condo Market?

RISMEDIA, November 16, 2009—(MCT)—The Federal Housing Administration (FHA) is giving the condo market something it hasn’t had for a while—a little breathing room.

The FHA, the federal agency that insures low-down-payment home loans for private lenders recently said it was relaxing its building underwriting guidelines as a way of helping the struggling sector ride out the downturn. The move could help boost sales in condos by making more FHA mortgages available to borrowers.

“The best way to bring back some level of security is to get new buyers into those vacant units. You can’t do that until new homeowners have access to financing,” said Meg Burns, director of the FHA’s single-family program development. The new rules—which are temporary—come after more than a year of more stringent standards from lenders, who, after suffering major losses on condos, began vetting and disqualifying condominium projects for purchase loans, regardless of whether home buyers qualified.

“This might be an entree for traditional and conventional lenders to return to the marketplace. Symbolically, it’s a pretty significant move,” said Peter Zalewski, a condo market analyst and broker with Condo Vultures in Bal Harbour, Fla.

The temporary rules are effective for most of the coming year and will help the marketplace transition into a new set of tougher guidelines that bring FHA into closer alignment with the project underwriting practices of Fannie Mae.

Earlier this year, Fannie implemented a slew of new regulations governing condo projects that some claim have strangled the market by stigmatizing condo loans in tough markets such as Florida.

Similar to Fannie regulations, the FHA is also now singling out those markets for special attention by approving projects itself, rather than lenders. Burns said lenders and investors were reluctant and even “scared” to lend money, prompting the agency to step in as a way of calming nerves. “We’re coming in and saying we’ll approve the projects and back them so you will feel confident and comfortable lending in this environment,” Burns said.

Securing the blessing of the FHA is important because it allows borrowers to get loans that require down payments of only 3.5% and qualify under less burdensome terms. Most conventional loans now require 20% down, keeping creditworthy borrowers on the sidelines. In some new projects, lenders have asked for down payments of as much as 40 to 50%.

Among the new, temporary rules is a measure extending a deadline allowing lenders to submit mortgage loans for spot approval in buildings that have not been approved for FHA lending. The administration had said the so-called spot loans would be eliminated by the end of the year but the new deadline is February 2010.

The new guidelines also:

-Increase from 30% to 50% the number of units in a project that can be financed with FHA loans. FHA, however, will make exceptions, even allowing up to 100%, when buildings meet an additional set of more stringent criteria.

-Require at least 50% of units in a complex to be owner-occupied or sold to owners who plan to live in the units. Bank-owned units may be disqualified from the percentage calculation.

-Reduce a presale requirement in new construction to 30%, compared to 70% for loans from conventional lenders.

“This temporary guidance represents incredible leniency in terms of financing standards and loan standards,” Burns said. It’s hard to say how many buildings may benefit from the new rules, but mortgage brokers and real estate observers applauded the reprieve. “This should really help some of the stalled projects if they can get their buildings approved,” said Grant Stern, a mortgage consultant in Bay Harbor Islands, Fla., who specializes in Fannie Mae and FHA guidelines. “A lot of these buildings looking to sell out the rest of their inventory should be able to get FHA approval to close out the projects.”

But there will be more hurdles to overcome beginning Dec. 7. That’s when a bevy of additional regulations take effect, including a provision that withholds approval from buildings where more than 15% of unit owners are past due on association fees.

Foreclosure Home Activity Slows for Third Straight Month RealtyTrac

Gary Giffin (Keller Williams Realty) — Thu, 12 Nov 2009 20:18:50 -0600

Foreclosure Activity Slows for Third Straight Month

RISMEDIA, November 12, 2009—RealtyTrac one of the leading online marketplaces for foreclosure properties, released its October 2009 U.S. Foreclosure Market Report, which shows foreclosure filings—default notices, scheduled foreclosure auctions and bank repossessions—were reported on 332,292 U.S. properties during the month, a decrease of 3% from the previous month but still up nearly 19% from October 2008. The report also shows one in every 385 U.S. housing units received a foreclosure filing in October.

“Three consecutive monthly declines is unprecedented for our report, and on first blush an indication that the foreclosure tide may be turning,” said James J. Saccacio, chief executive officer of RealtyTrac. “However, the fundamental forces driving foreclosure activity in this housing downturn—high-risk mortgages, negative equity, and unemployment—continue to loom over any nascent recovery. And despite all the efforts and resources directed at helping homeowners avoid foreclosure, we continue to see foreclosure activity levels that are substantially higher than a year ago in most states.”

Nevada, California, Florida post top state foreclosure rates
Despite a 26% decrease in foreclosure activity from the previous month, Nevada continued to document the nation’s highest state foreclosure rate—one in every 80 housing units received a foreclosure filing in October. A total of 13,842 Nevada properties received a foreclosure filing during the month, a 4% decrease from October 2008 and the first ever year-over-year decrease in Nevada since RealtyTrac began tabulating the year-over-year change in January 2006. Nevada default notices were down 10% from October 2008, and scheduled foreclosure auctions were down 6% from October 2008, while bank repossessions were up 8% from October 2008. A new foreclosure mediation program implemented by state law (AB 149) in July may be slowing the inflow of distressed properties into the foreclosure pipeline.

With one in every 156 housing units receiving a foreclosure filing in October, California posted the nation’s second highest state foreclosure rate for the second month in a row. A total of 85,420 California properties received a foreclosure filing during the month, a decrease of 1% from the previous month but still nearly 50% above the total reported in October 2008. The state’s default notices and scheduled foreclosure auctions were up 120% and 73% respectively from October 2008, when California foreclosure activity was in the midst of a three-month trough after a law (SB 1137) requiring lenders to give distressed homeowners extra notification before initiating foreclosure took effect in September 2008.

Florida posted the third highest state foreclosure rate, with one in every 168 housing units receiving a foreclosure filing in October. A total of 51,911 Florida properties received a foreclosure filing during the month, a nearly 6% decrease from the previous month and a decrease of 4% from October 2008. It was the first year-over-year decrease in overall Florida foreclosure activity since July 2006.

Other states with foreclosure rates ranking among the nation’s 10 highest were Arizona, Idaho, Illinois, Michigan, Georgia, Maryland and Utah.

Four states account for more than 50 percent of national total
Four states accounted for 52% of the nation’s total foreclosure activity in October: California, Florida, Illinois and Michigan.

Illinois posted the third highest state total after California and Florida, with 19,946 properties receiving a foreclosure filing in October—a 56% spike from the previous month and the highest monthly total for Illinois since RealtyTrac began issuing its report in January 2005. The state’s foreclosure rate jumped from No. 11 in September to No. 6 in October, and it was the only state with a foreclosure rate in the top 10 to post a monthly increase in foreclosure activity. A recent state law (SB 2513) that gives distressed homeowners an extra grace period to seek counseling to help avoid foreclosure may have created some pent-up foreclosure activity in the state. After the law went into effect in April, Illinois foreclosure activity decreased for three straight months before beginning to climb again.

Michigan registered the fourth highest state foreclosure activity total despite a nearly 2% decrease from the previous month. A total of 16,468 Michigan properties received a foreclosure filing in October, an increase of nearly 45% from October 2008.

Other states with totals among the 10 highest in the country were Nevada (13,842), Arizona (13,345), Georgia (12,468), Texas (11,798), Ohio (11,646) and New Jersey (7,435).

Three states account for all top 10 metro foreclosure rates
Despite a 27% decrease in foreclosure activity from the previous month, Las Vegas continued to document the nation’s highest foreclosure rate among metropolitan areas with a population of at least 200,000. One in every 68 Las Vegas housing units received a foreclosure filing in October—more than five times the national average.

Seven of the top 10 metro foreclosure rates were in California, led by Vallejo-Fairfield at No. 2 and Modesto at No. 3, both with one in every 81 housing units receiving a foreclosure filing. Other California cities in the top 10 were Riverside-San Bernardino-Ontario at No. 4 (one in 83), Bakersfield at No. 6 (one in 97), Merced at No. 7 (one in 100), Stockton at No 8 (one in 116), and Sacramento-Arden-Arcade-Roseville at No. 10 (one in 130).

Metro areas in Florida accounted for the remaining two spots in the top 10: Cape Coral-Fort Myers at No. 5 (one in 92) and Orlando-Kissimmee at No. 9 (one in 117).

4 bedroom Views in the Estates Subdivision in Carlsbad 92009

Gary Giffin (Keller Williams Realty) — Mon, 09 Nov 2009 10:05:16 -0600

Gary | Keller Williams Realty | 858-401-0204

2862 Rancho Diamonte, La Jolla, CA

4 bedroom Views in the Estates Subdivision in Carlsbad 92009

4BR/4.5BA Single Family House

offered at $1,195,000

Year Built	2001
Sq Footage	3,743
Bedrooms	4
Bathrooms	4 full, 1 partial
Floors	2
Parking	Unspecified
Lot Size	Unspecified
HOA/Maint	$139 per month

DESCRIPTION

Price Reduced 3747 sqft, 4 beds/3.5 baths. This home is for those who like to live in a nice neighborhood with all the class of the area which includes high quality schools, shopping malls. This house has been very well maintained along with constant up grades. Gorgeous views in the back yard from the swimming pool and patio with privacy fence.

see additional photos below

PROPERTY FEATURES

- Central heat	- Fireplace	- High/Vaulted ceiling
- Walk-in closet	- Tile floor	- Family room
- Living room	- Dining room	- Breakfast nook
- Dishwasher	- Refrigerator	- Stove/Oven
- Microwave	- Laundry area - inside	- Swimming pool
- Jacuzzi/Whirlpool

COMMUNITY FEATURES

- Garage parking

- Gated property

ADDITIONAL PHOTOS

Photo 1	Photo 2
Photo 3

Contact info:

Gary

Keller Williams Realty

858-401-0204

For sale by agent/broker

Equal Opportunity Housing

Posted: Nov 9, 2009, 6:36am PST

First Time Homebuyer $8000 Tax Credit Update

Gary Giffin (Keller Williams Realty) — Fri, 06 Nov 2009 13:05:59 -0600

Homebuyer Tax Credit Update

Today November 6, 2009, President Obama signed a bill to extend the tax credit for first-time homebuyers (FTHBs) through June 30, 2010. The bill also opens up opportunities for others who are not buying a home for the first time.

To learn what the new tax credit means to you and your clients, take a look at the concise overview below.

TAX CREDIT OVERVIEW

Who Gets What?

First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

What are the New Deadlines?

In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

What are the Income Caps?

The amount of income someone can earn and qualify for the full amount of the credit has been increased.

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible

Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

What is the Maximum Purchase Price?

Qualifying buyers may purchase a property with a maximum sale price of $800,000.

What is a Tax Credit?

A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual’s primary residence.

How Much are First-Time Homebuyers (FTHB) Eligible to Receive?

An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.

Who is Eligible fort FTHB Tax Credit?

Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible.

This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.

As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.

How Much are Current Home Owners Eligible to Receive?

The tax credit program includes a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Can Homebuyers Claim the Tax Credit in Advance of Purchasing a Property?

No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.

Can a Taxpayer Claim a Credit if the Property is Purchased from a Seller with Seller Financing and the Seller Retains Title to the Property?

Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Some examples of this would include a land contract or a contract for deed.

According to the IRS, factors that would demonstrate the ownership of the property would include:

1. Right of possession,
2. Right to obtain legal title upon full payment of the purchase price,
3. Right to construct improvements,
4. Obligation to pay property taxes,
5. Risk of loss,
6. Responsibility to insure the property, and
7. Duty to maintain the property.

Are There Other Restrictions to Taking the FTHB Credit?

Yes. According to the IRS, if any of the following describe a homebuyer’s situation, a credit would not be due:

They buy the home from a close relative. This includes a spouse, parent, grandparent, child or grandchild. (Please see the question below for details regarding purchases from “step-relatives.”)
They do not use the home as your principal residence.
They sell their home before the end of the year.
They are a nonresident alien.
They are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
Their home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
They owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2005, through July 1, 2008.

Can Homebuyers Purchase a Home from a Step-Relative and Still be Eligible for the Credit?

Yes. As long as the person they buy the home from is not a direct blood relative, the purchase would be allowed.

If a Parent (Who Will Not Live In The Property) Cosigns for a Mortgage, Will Their Child Still be Eligible for the Credit?

Yes, provided that the child meets the other requirements for the tax credit.

More San Diego Real Estate articles & tips; at Gary Giffin web www.GaryGiffin.com or search for San Diego Real Estate at Gary Giffin MLS search www.SanDiegoHomeSold.com

Great Reasons to Purchase Real Estate in a Down Market

Gary Giffin (Keller Williams Realty) — Thu, 05 Nov 2009 08:50:09 -0600

Great Reasons to Purchase Real Estate in a Down Market

Though many people may try and avoid it, there are some very good reasons to purchase real estate in a down market. Real estate investment has always been an interest for people looking to put their money into something secure. When the market is distressed it can be the perfect time to purchase real estate.

The real estate market said to be in a down market state, or a distressed state, when the value of property is falling. Many factors can contribute to a distressed market, but the main reason is typically that the market is flooded with houses for sale and with limited buyers.

Some people avoid investing in real estate, but there are many good reasons to purchase real estate in a down market. Real estate investment is always worthwhile, if done well. There are many different avenues to purchase real estate in a down market. If you research carefully and exhibit patience, the potential for you to profit can be well worth any risk.

Buy Low, Sell High
Real estate investment is all about making sound buying decisions at the right time. The fundamental reason to purchase real estate in a down market is the price. Many great real estate bargains can be found during times that the real estate market is in decline.

If you want to purchase property to resell, assuming that you can hold on to the property until the market recovers, you can really maximize your return on investment by purchasing property in a down market.

If you want to invest in rental property, the best time to buy is when the market is low. The smaller your initial investment in rental properties, the sooner you will be able to realize profits as a result of your investment.

Research Market Conditions
As with any other type of investment, research is the key to good real estate investing, regardless of the market condition. If the market is expected to continue to decline even further for a long period of time, purchasing property for resale might not be the best idea. Properties close to the San Diego coast like Del Mar, Carmel Valley , La Jolla & Encinitas tend to hold there value better even in a down market.

However, for example, if new industry is set to come to town within a few years, it is very likely that property values will increase. This type of information can help you make sound investing decisions. Finding out everything you can about your prospective investments before you purchase real estate is the key to doing well.

When you purchase real estate in a down market, it is important to have patience. The market may continue to fall after you buy your real estate investment. Sticking with your investment is the best way to make money from it. In a market that has been through a decline, there is plenty of money to make with your real estate investment. With the right research and a little patience, you can be well rewarded when you invest in real estate in a down market.

More San Diego Real Estate articles & tips; at Gary Giffin web www.GaryGiffin.com or search for San Diego Real Estate at Gary Giffin MLS search www.SanDiegoHomeSold.com

For Sale Sunset Cliffs Ocean Front Lot in Point Loma 92107

Gary Giffin (Keller Williams Realty) — Wed, 04 Nov 2009 08:54:42 -0600

Gary | Keller Williams Realty | 858-401-0204

741 Sunset Cliff Blvd, Point Loma, CA

Huge Ocean Front Lot to build Point Loma Panoramic Ocean Views

.249 acres Vacant Land

offered at $2,500,000

Lot Size

.249 acres

DESCRIPTION

Huge Lot to build .249 acre w/ Panoramic ocean front yard across the street. Lot is surrounded by luxury homes: one of the very last ocean front lots in Point Loma 92107. Located at the end of Sunset Cliffs near stairway to the beach. Lot size to build approx. 6,000sf with guest home; height restriction 30'. Not splittable. Seller will consider 'carry- back' with minimum 10 % ; or better offer, but not subordinating under terms are negotiable.

see additional photos below

LOCATION FEATURES

- Lot is surrounded by luxury homes

- Ocean Front in Point Loma 92107

ADDITIONAL PHOTOS

Photo 1	Photo 2
Photo 3

Contact info:

Gary

Keller Williams Realty

858-401-0204

For sale by agent/broker

Equal Opportunity Housing

Posted: Nov 3, 2009, 6:36am PST

Big Rebound in Existing-Home Sales Shows First-Time Buyer Momentum

Gary Giffin (Keller Williams Realty) — Sat, 31 Oct 2009 11:38:30 -0500

Big Rebound in Existing-Home Sales Shows First-Time Buyer Momentum

RISMEDIA, October 26, 2009—Existing-home sales bounced back strongly in September with first-time buyers driving much of the activity, marking five gains in the past six months, according to the National Association of Realtors®. Existing-home sales–including single-family, townhomes, condominiums and co-ops–jumped 9.4% to a seasonally adjusted annual rate of 5.57 million units in September from a level of 5.10 million in August, and are 9.2% higher than the 5.10 million-unit pace in September 2008. Sales activity is at the highest level in over two years, since it hit 5.73 million in July 2007.

Lawrence Yun, NAR chief economist, said favorable conditions matched with a tax credit are boosting home sales. “Much of the momentum is from people responding to the first-time buyer tax credit, which is freeing many sellers to make a trade and buy another home,” he said. “We are hopeful the tax credit will be extended and possibly expanded to more buyers, at least through the middle of next year, because the rising sales momentum needs to continue for a few additional quarters until we reach a point of a self-sustaining recovery.”

Even with the improvement, Yun said the market is underperforming. “Despite spectacular gains in the stock market, principally from the financial sector recovery, most of the 75 million home owning families have more wealth tied to their homes. Home values could soon turn consistently positive and help the broad base of middle-class families, but we are not there yet,” he said. “We’re getting early indications of price stabilization, but we need a steady supply of qualified buyers to meaningfully bring inventories down and return us to a period of normal, steady price growth and to fully remove consumer fears, which would then revive the broader economy. Without a firm foundation for middle-class wealth recovery, the post-recession economic growth likely will be one of the weakest in U.S. history.”

Early information from a large annual consumer study to be released November 13, the 2009 National Association of Realtors® Profile of Home Buyers and Sellers, shows that first-time home buyers accounted for more than 45% of home sales during the past year. A separate practitioner survey shows that distressed homes accounted for 29% of transactions in September.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said affordability conditions remain historically high. “Potential first-time buyers can take heart in that affordability conditions this year are the highest on record dating back to 1970, but with the first-time buyer tax credit scheduled to expire at the end of next month, people could hold back from entering the market,” he said. “Our read is that housing overshot on the downside because homes are selling for less than replacement construction costs in much of the country, and the home price-to-income ratio has fallen below the historical average,” McMillan said.

Total housing inventory at the end of September fell 7.5% to 3.63 million existing homes available for sale, which represents an 7.8-month supply at the current sales pace, down from an 9.3-month supply in August. Unsold inventory totals are 15.0% below a year ago.

“The current housing supply is the lowest we’ve seen in two and a half years,” Yun said. “If we could continue to absorb inventory at this pace, home prices would return to normal, modest appreciation patterns next year.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 5.06% in September from 5.19% in August; the rate was 6.04% in September 2008. The national median existing-home price for all housing types was $174,900 in September, which is 8.5% lower than September 2008. Distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes in the same area.

Single-family home sales rose 9.4% to a seasonally adjusted annual rate of 4.89 million in September from a pace of 4.47 million in August, and are 7.7% above the 4.54 million-unit level in September 2008. The median existing single-family home price was $174,900 in September, which is 8.1% below a year ago. Existing condominium and co-op sales jumped 9.7% to a seasonally adjusted annual rate of 680,000 units in September from 620,000 in August, and are 9.7% above the 561,000-unit pace a year ago. The median existing condo price was $175,100 in September, down 11.7% from September 2008.

Northeast
Regionally, existing-home sales in the Northeast increased 4.4% to an annual level of 950,000 in September, and are 11.8% higher than September 2008. The median price in the Northeast was $234,700, down 7.0% from a year ago.

Midwest
Existing-home sales in the Midwest jumped 9.6% in September to a pace of 1.25 million and are 7.8% above a year ago. The median price in the Midwest was $147,600, which is 1.0% below September 2008.

South
In the South, existing-home sales rose 9.0% to an annual level of 2.06 million in September and are 10.8% higher than September 2008. The median price in the South was $153,500, down 7.6% from a year ago.

West
Existing-home sales in the West surged 13.0% to an annual rate of 1.30 million in September and are 5.7% above a year ago. The median price in the West was $219,000, which is 15.0% below September 2008.

Permission to re-post by Rismedia-More San Diego Real Estate articles & tips; at Gary Giffin web www.GaryGiffin.com or search for San Diego Real Estate at Gary Giffin MLS search www.SanDiegoHomeSold.com

Breaking News: Senate Plans to Extend and Expand $8000 Home Buyer Tax Credit

Gary Giffin (Keller Williams Realty) — Fri, 30 Oct 2009 10:33:30 -0500

Breaking News: Senate Plans to Extend and Expand $8000 Home Buyer Tax Credit

RISMEDIA, By Alan J. Heavens, Corey Boles, John D. McKinnon ,October 30, 2009—(MCT/The Wall Street Journal)-The Senate has reached a compromise on extending and expanding the $8,000 tax credit for first-time home buyers, a boost the housing industry believes will help it pull out of its two-year-old downturn.

While its passage remains uncertain, the agreement would extend the existing credit for first-time homebuyers, worth up to $8,000, while offering a new credit of up to $6,500 for some existing homeowners, Senate aides said. The reduced credit would be available to all homebuyers who have been in their current residence for a consecutive five-year period in the past eight years. Lawmakers in Washington also raised the qualifying income limits to $125,000 for single taxpayers and $250,000 for joint taxpayers, from the current $75,000 and $150,000, housing-industry sources said. Under the Senate compromise, buyers must have sales agreements in hand by April 30, but they will have until June 30 to go to settlement, said the sources. The measure still faces votes in the full Senate and the House.

Treasury Secretary Tim Geithner and HUD Secretary Shaun Donovan are in full support of the Senate’s proposal to both extend and expand the first-time homebuyer tax credit and called on Congress to approve key housing measures that include the tax credit. “We welcome efforts taken by Congress to extend the First-Time Homebuyer Tax Credit for a limited period. This credit has brought new families into the housing market and contributed to three consecutive months of rising home prices nationwide,” said Secretaries Geithner and Donovan. “In extending the credit, we urge Congress to include strict measures to combat tax fraud and protect responsible homeowners.”

The current tax credit did little for the new-home market in September, the Commerce Department recently reported—news that took many industry analysts by surprise. Sales fell 3.6% from August and 7.8% from September 2008. Industry observers had expected a fifth consecutive monthly increase in new-home sales, believing that the tax incentive for qualified first-time buyers—credited with 357,000 sales of previously owned homes so far this year—would do the trick. Instead, sales of typically more expensive newly built houses slipped. “The decline in new-home sales seems to us to be more a function of the attractive pricing available on resales in the current environment than a reflection of weakening demand,” said Michael Feder, president of Radar Logic in New York, which tracks the market.

“Since hitting rock bottom in March, demand is up 20 percent,” said Joel L. Naroff of Naroff Economic Advisers in Holland, Pa. For Naroff, the robust rise in existing-home purchases—9.2% year over year in September—indicated that the housing market was not faltering. “Maybe the issue is supply, which fell to its lowest level in 27 years,” he said. “Builders, at least those left standing, have been making sure they don’t have any houses sitting around, and they have been very successful in controlling inventories.”

IHS Global Insight economist Patrick Newport echoed that, noting new-home inventories “sank for the 29th straight month to their lowest level since November 1982.” Naroff maintained housing has recovered enough to stand without the tax credit, but Newport said that if the credit were not extended and expanded, housing demand would take a hit, and home sales would drop.

The new provisions are aimed at broadening availability of the credit beyond first-time buyers and giving the weakened real estate market a bigger boost while preventing real estate investors from benefitting. While Senate lawmakers appear to have reached a deal on the substance of the tax credit, they are still at odds over how it would be brought to the Senate floor.

New Listing Mission Hills Banker Hills Views Of Balboa Park in San Diego

Gary Giffin (Keller Williams Realty) — Wed, 28 Oct 2009 09:22:20 -0500

Gary | Keller Williams Realty | 858-401-0204

2626 6th, San Diego, CA

Mission Hills Banker Hill Home with views to Balboa Park.Your opportunity to live in the park is here and in grand style.

2BR/3BA Condo

offered at $1,649,000

Year Built	2006
Sq Footage	2,500
Bedrooms	2
Bathrooms	3 full, 0 partial
Floors	4
Parking	Unspecified
Lot Size	Unspecified
HOA/Maint	$0 per month

DESCRIPTION

Mission Hills Banker Hill Home with views to Balboa Park.Your opportunity to live on the park is here and in grand style. Take the elevator directly into your contemporary mid rise condo!! This is the only unit that has 2 patios with one of them spanning the complete width of the unit. Walking distance to restaurants, shops, museums and the world famous Balboa Park. Upgraded kitchen and spacious floor plan that opens up looking directly into Balboa Park.

see additional photos below

PROPERTY FEATURES

- Central A/C	- Central heat	- Fireplace
- Hardwood floor	- Living room	- Office/Den
- Dishwasher	- Refrigerator	- Stove/Oven
- Microwave	- Stainless steel appliances	- Washer
- Dryer	- Laundry area - inside	- Balcony, Deck, or Patio

COMMUNITY FEATURES

- Garage parking	- Gated property	- Secured entry
- Elevator

ADDITIONAL PHOTOS

Photo 1	Photo 2
Photo 3	Photo 4

Contact info:

Gary

Keller Williams Realty

858-401-0204

For sale by agent/broker

Equal Opportunity Housing

Posted: Oct 14, 2009, 12:23pm PDT

Inflated Egos in a Deflated Market-Millionaire Listing Agent Bravo Show

Gary Giffin (Keller Williams Realty) — Thu, 22 Oct 2009 11:28:10 -0500

Inflated Egos in a Deflated Market

Stephanie Diani for The New York Times Realtor Josh Flagg poses in a house he showed to potential buyers in the Bel Air neighborhood of Los AngelePublished: August 6, 2008

THE first season of “Million Dollar Listing,” a reality series on Bravo that follows real estate agents in Hollywood and Malibu, Calif., was broadcast two years ago, and already feels like material from a time capsule. Spending much of its time on lingering shots of canyon villas and beachfront condos, the show captured a giddy period in which a cash-strapped seller could list a shabby 1960s contemporary in the Hollywood Hills for close to $1.3 million, get an offer above asking price, and still debate whether to make the deal.

UNDER CONTRACT The new season of “Million Dollar Listing” stars Josh Flagg, in photo, and Madison Hildebrand, pictured with current listings this week.

Enlarge This Image

Stephanie Diani for The New York Times

Realtor Madison Hildebrand.

The current housing market, of course, is much gloomier, especially in Los Angeles, where inventory is up by roughly 60 percent compared with two years ago and the median listing price is down 20 percent from last year. Considering how emotionally fraught the subject of residential real estate has become, most fans of “Million Dollar Listing” probably figured the show, which was off the air last year, had gone the way of the subprime loan.

But this week a second season made its debut, and the channel has bravely stuck with the name and the format instead of steering the show in a more topical direction, like “Million Dollar Foreclosure.” Still, one wonders how a series that owed its popularity in large part to the go-go real estate market, and the national housing obsession that that market created, will be affected by the mortgage crisis.

“Obviously, the market is different today,” said Andy Cohen, the senior vice president for programming and production at Bravo. “But the cost of real estate in Malibu is still ridiculous. It’s like, O.K., this house isn’t selling for $17 million, it’s been reduced to $14 million.”

The series does show signs of retooling, however. For starters, the setting has moved away from Hollywood, where the market has cooled, to traditionally recession-proof areas farther west, like Beverly Hills and Bel Air, along with Malibu. Gone are the agents at the Hollywood offices of ReMax, a scrappy group that included Ray and Dia Schuldenfrei, an older, married team with a Burns and Allen repartee.

Season 2 revolves instead around three agents: Chad Rogers, Josh Flagg and the lone holdover from Season 1, Madison Hildebrand. None of them are over 30, and all are as focused on landing the next deal as they are with themselves. Mr. Rogers spends an inordinate amount of time on his hair and is given to making statements like, “I have a gorgeous girlfriend because image is everything in real estate.”

Mr. Flagg, meanwhile, is a man-child remarkably at ease with numbers containing lots of zeros. “Put in two, three million, sell this for nine — guaranteed,” he coolly tells one client.

(Now 22, Mr. Flagg may be less comfortable in moneyed circles after he was arrested last Thursday and accused of grand theft, several months after the season’s final episode was shot. The Los Angeles Police Department would not provide more details, but according to the celebrity gossip blog TMZ, Mr. Flagg is accused of stealing high-priced art in his capacity as an estate broker. Bravo had no comment, and David M. Baum, a lawyer for Mr. Flagg, said his client denies the accusations against him.)

Beverly Hills or not, market realities are evident in the first episode. One seller, an interior designer looking to unload his renovated condo, wants to party like it’s 2005, and Mr. Rogers must persuade him to be realistic about the asking price. The seller pouts, then pulls the listing. According to Mr. Hildebrand, unrealistic sellers are common these days, as are price reductions and slow turnarounds on high-end homes, even in Malibu. “Now the average time is eight months,” he said with a sigh the other day.

But the most noticeable change to “Million Dollar Listing” seems to be a shift in focus. In Season 1, the homes were the stars, while the agents were supporting players. Now it’s the reverse. Instead of tight shots of marble bathtubs, we get a tight shot of Mr. Hildebrand’s abs as he works out on the beach and tells us that he has “recently gone through a transition where I’m not close-minded to anything, be it a man or a woman.”

Randy Barbato, the show’s executive producer, said this change predated the sharp market downturn of the last several months and any diminishment of Americans’ interest in real estate that might have resulted. He just wanted more personal drama this season, and he pointed out that every episode still includes a deal.

Still, he acknowledged, the move to the city’s wealthiest enclaves does reflect the way property lust has evolved. Back when nearly anyone could get a loan, he said, “it used to be that you could almost touch the shingles” on houses shown on programs like his. Now, the attraction is more about fantasy. “Some properties should be there to long for, and not to have,” he added. That is why, this season, “the property is bigger and more delicious,” he said.

This is true to a point. In the premiere, Mr. Flagg gets a tip that Jay Bernstein, the former manager of Farrah Fawcett and Suzanne Somers, has died, and he shrewdly scores the exclusive listing to his house, a five-bedroom, seven-bath Spanish-style mansion that makes the Hollywood bungalows from Season 1 look like shacks. But house-obsessed viewers may wish for less of the subplot involving Mr. Flagg’s dentist, Dr. Sam, who tries unsuccessfully to buy the place for $3 million, and more shots of the interior, especially after learning that Clark Gable once used the place as a love nest.

If the show’s creators were concerned that viewers may have lost some of their appetite for “real estate porn,” as Mr. Cohen calls it, they needn’t have worried. With credit markets tight as a drum and many homeowners struggling to keep their houses, fleeting images of a hilltop mansion in Beverly Hills only provoke greater longing.

More San Diego Real Estate articles & tips; at Gary Giffin web www.GaryGiffin.com or search for San Diego Real Estate at Gary Giffin MLS search www.SanDiegoHomeSold.com

5 Things to do with your small business to survive the recession

Gary Giffin (Keller Williams Realty) — Thu, 22 Oct 2009 09:55:00 -0500

Great Post and very relevant in today's economy. I saw this and thought this would be a great place to re-post

5 Things to do with your small business to survive the recession

January 12, 2009 :: Steve FisherI know, I know. My post was very optimistic and the title of this post might sound like everyone should go into survival mode. The recession started a year ago and it looks to go one for at least the next 2-3 quarters.

Like I have said previously, now IS a good time to do great things for the future.

I have read tons of advice around the web and I have come up with five things that have worked for me in past economic downturns.

1.) Manage Your Cash Flow. People always say that cash is king. It is true and for a small business it is the difference between life and death. Crack open your accounting software and really look back at your previous year and how your cash went in and out. See if you noticed there were time periods were business picks up or is really slow. You need to prepare for things to be slower in the good periods and really slow in the normally slow periods. It is harder to get business lines of credit these days if you need to bridge for 60-90 days. But sometimes when you have employees and must make payroll, you gotta have the option. Having a good cash position makes you look good to a bank and having confidence you can pay it back will keep you going through this period.

2.) Launch new products or services. Now is the perfect time to test the market for new ideas. A recession gives you the opportunity to step back, rethink and review all sectors of your operation. While many are just thinking about staying quiet and surviving, you should consider launching a new product or service not currently offered in your market. Use the time to test out what is working and what doesn't. This will help you diversify your products, services or industries so you don't have too many eggs in one basket. Not only that but you will have launched something that has value during a tough time which means selling during good times will be super easy.

3.) Avoid death by frivolous discretionary spending. Think of all the little expenses $10-100 that you spent in 2008 on things. They are like little cash flow paper cuts that can bleed you dry. In good times many people most people don't really look hard at expenses because they are profitable and can afford it in the name of "doing business". It is time seriously evaluate all expenses and more effective use of free services and alternatives to accomplish the same things you did before.

4.) Take customer service to a new level. Great, you still have customers. Love them 10X more than you ever have before. They know that now is the time when they can look at alternatives and you seem too aloof or don't seem to value their business, they are gone. Take nothing for granted. Make sure your pricing is competitive, your service is exceptional and your attitude reflects how much you value their business.

Also, open up that Rolodex and call dormant customers and see what you can do to bring them back. Sometimes it takes as little as just asking to restart a relationship. Resurrecting a past customer is less expensive than finding and breaking in a new one. One other thing – Ask your customers for referrals.

5.) What ever else you do, don't stop marketing. Most companies that are cutting the budget sacrifice marketing first. WRONG MOVE. You should never stop marketing. In fact in quiet times like these when people are afraid to spend money you SHOULD BE LOUDER. And for those out there that think sales and marketing are the same thing – they aren't. Low cost but effective things you can do to market and have conversations with people are to attend networking functions, spruce up your Web site and leverage social media effectively. You can also go the traditional route by sending out post cards or put out a new sign in front of your office if that applies to you.

More San Diego Real Estate articles&tips; at Gary Giffin web www.GaryGiffin.com or search for San Diego Real Estate at Gary Giffin MLS search www.SanDiegoHomeSold.com

Fairbanks Ranch Community 92067 Thomas Kincade style home

Gary Giffin (Keller Williams Realty) — Wed, 21 Oct 2009 22:50:58 -0500

Gary | Keller Williams Realty | 858-401-0204

5866 Calle Camposeco, La Jolla, CA

One of a kind Estate in the prestigious Fairbanks Ranch Community 92067

7BR/6.5BA Single Family House

offered at $5,350,000

Year Built	1987
Sq Footage	12,146
Bedrooms	7
Bathrooms	6 full, 1 partial
Floors	2
Parking	Unspecified
Lot Size	92,347 sqft
HOA/Maint	$0 per month

DESCRIPTION

One of a kind Estate in the prestigious Fairbanks Ranch Community. Enter the Thomas Kincade style home-8Bedrooms/7.5 bath plus powder room Two story. Breathtaking entry way of imported Italian marble. A sweeping double staircase.Four car garage plus tandem. Enjoy the open space highlighted by traditional grand pillars.Floor to ceiling windows . Handcrafted walnut library, wine cellar, movie theater and elevator are only a few of the features. With more than 12,000 sq. ft. of living space, plus a pool house.

see additional photos below

PROPERTY FEATURES

- Central A/C	- Central heat	- Fireplace
- High/Vaulted ceiling	- Walk-in closet	- Hardwood floor
- Tile floor	- Family room	- Living room
- Bonus/Rec room	- Office/Den	- Dining room
- Dishwasher	- Refrigerator	- Stove/Oven
- Microwave	- Granite countertop	- Stainless steel appliances
- Washer	- Dryer	- Laundry area - inside
- Balcony, Deck, or Patio	- Yard	- Swimming pool
- Jacuzzi/Whirlpool

OTHER SPECIAL FEATURES

- Elavator

ADDITIONAL PHOTOS

Photo 1	Photo 2
Photo 3	Photo 4
Photo 5

Contact info:

Gary

Keller Williams Realty

858-401-0204

For sale by agent/broker

Equal Opportunity Housing

Posted: Oct 21, 2009, 7:23pm PDT

Flu Shot-Two Flu Vaccines, Twice the Number of Questions

Gary Giffin (Keller Williams Realty) — Wed, 21 Oct 2009 09:21:55 -0500

Two Flu Vaccines, Twice the Number of Questions

RISMEDIA, October 21, 2009—By Kristen Gerencher(MCT)—The annual ritual of fending off the flu is more complicated than usual this fall as Americans weigh the opportunity to receive two vaccines to protect against different types of influenza.

The vaccine to fight seasonal flu is already widely available to people of all ages and health conditions, although some areas have reported supply delays or shortages. But a new vaccine to protect against the H1N1 virus, commonly known as swine flu, is just starting to make its way to schools, public health departments and doctors’ offices. Because of an initial limited supply, the first doses of swine flu vaccine are earmarked for people at high risk of serious complications from swine flu and those at risk of spreading it to them. States have ordered about 8 million doses so far, with the potential for up to 250 million total doses, depending on demand, according to the Centers for Disease Control and Prevention in Atlanta. Public health officials say everyone who wants a swine flu vaccine eventually will be able to get one as more come on line.

The first question many people are asking is if they need one or both of the vaccines. Nearly all Americans, or 88% of the population fall into a group that’s recommended to receive the seasonal flu vaccine, said CDC spokesman Tom Skinner. About half the population fits into a category deemed high priority for the swine flu vaccine. “People who are recommended to get those vaccines need to plan to get both of them,” Skinner said.

While some flu cases involve only several days of misery, others go on to become life-threatening or even fatal. Since the swine flu emerged in the U.S. in April, more than 800 people with flu symptoms have died, including 28 pregnant women and 86 children. Most of those children had an underlying condition, but 20% to 30% of them were otherwise healthy. The seasonal flu sends an average of 200,000 Americans to the hospital and kills 36,000 of them every year. People who’ve come down with a flu-like illness recently may think they had swine flu and that they no longer need a vaccine to prevent it.

But there are hundreds of other respiratory viruses circulating with symptoms that often overlap, and people with mild cases of suspected flu aren’t sent for laboratory confirmation of the H1N1 virus, making it impossible to know for sure if they’ve built immunity, said Dr. Greg Poland, director of the Vaccine Research Group at the Mayo Clinic in Rochester, Minn. “Because there’s no harm in getting the vaccine even if you think you had swine flu, we err on the side of caution and say you should get the vaccine,” Poland said.

While vaccination doesn’t confer 100% protection against the flu, it’s still the most effective way to prevent it or mitigate its harm to the body, according to the CDC.

Clinical trials of the H1N1 vaccine showed it has many of the same side effects as the seasonal variety, chiefly a sore arm at the injection site. People with a known allergy to chicken eggs and those with suppressed immune systems should talk to their doctor about whether flu vaccination is an option for them.

The swine flu vaccine is manufactured the same way as its seasonal counterpart, and the H1N1 strain may have been included in this year’s seasonal vaccine had the virus emerged a few months earlier when planning for the seasonal vaccine was under way, said Dr. Paul Offit, chief of infectious disease at the Children’s Hospital of Philadelphia.

The seasonal flu vaccine has been used for decades in formulations that change every year to reflect the three most dominant strains of virus that scientists believe will be circulating when the vaccine goes into production in the spring. The swine flu virus makes up the vast majority of flu bugs now going around and people in high-risk groups are urged to get a swine flu vaccine as soon as they become available. The groups who are first priority are pregnant women, children and young adults age 6 months to 24 years old, people who are around children too young to be immunized, those age 25 to 64 who have underlying chronic medical conditions such as diabetes or asthma, and health care workers.

More people are recommended to be vaccinated against seasonal flu since, unlike swine flu, it tends to hit the elderly hard as well. About 82 million doses of that vaccine have shipped, and manufacturers are expected to produce about 114 million doses total this year.

“The reason to get both is you want to be protected from the strains most likely to circulate,” Offit said. People who want one or both vaccines may have to be patient until more supply arrives, and they’re wise to call ahead to see if the vaccines they want are available. They also should ask about price and insurance coverage. Some employers and health insurers offer discounts or full reimbursement for flu vaccines. Medicare beneficiaries can receive both vaccines free of charge after satisfying their Part B deductible. The swine flu vaccine is free for anyone who wants it, though health care providers may charge an administration fee. Uninsured and underinsured children may receive free vaccines through the government’s Vaccines for Children Program. There is high demand for seasonal flu vaccine at Walgreens stores around the country, said company spokesman Jim Cohn in Deerfield, Ill. This year Walgreens is offering the seasonal flu vaccine seven days a week either by appointment or on a walk-in basis. The cost without Medicare or private insurance is $24.99 for the shot and $29.99 for the nasal-spray version.

“I would strongly encourage people interested in getting a seasonal vaccine to do so as soon as possible because we’re hearing about shortages or locations that are out of the vaccine already,” Cohn said.

“We now have the industrial capacity to make a lot of vaccine efficiently and quickly, and that’s good,” Offit said. “But what we don’t have yet is the distribution method to allow for easy, quick and efficient vaccination.”

For people who choose to get either or both flu vaccines, the next questions are often what form they should pick—the shot or the nasal spray—and how far apart the immunizations should be if they get both the regular and swine flu vaccines.

Only healthy people ages 2 to 49 who aren’t pregnant can receive the nasal-spray versions. People who fit that criteria and are looking to avoid needles for both flu vaccines need to wait four weeks between the two nasal-spray versions, said the CDC’s Skinner. Children ages 6 months to 9 years who have never received a flu vaccine before are recommended to receive two doses of both the H1N1 and seasonal flu vaccine about a month apart, Offit said. People age 10 and older need only one dose of swine flu vaccine, according to the CDC.

More San Diego Real Estate articles at Gary Giffin web www.GaryGiffin.com or search for San Diego Real Estate at Gary Giffin MLS search www.SanDiegoHomeSold.com

Google Posts Higher Profit; CEO Says Worst of Recession Is Over

Gary Giffin (Keller Williams Realty) — Tue, 20 Oct 2009 21:55:31 -0500

Google Posts Higher Profit; CEO Says Worst of Recession Is Over

RISMEDIA, October 20, 2009—By John Letzing(MCT)—Google Inc. reported third-quarter gains in profit and sales that topped Wall Street estimates on Thursday, fulfilling expectations that the Internet giant would start benefiting from increased spending on online advertising.

Google said net income for the quarter that ended in September 2009 rose to $1.64 billion, or $5.13 a share, from $1.29 billion, or $4.06 a share, in the same period last year. Net revenue for the period ended in September rose nearly 1% to $4.38 billion. Excluding special items, the company said earnings for the quarter were $5.89 a share.

Analysts polled by Thomson Reuters had expected Google to post earnings excluding items of $5.42 a share, and $4.24 billion in net revenue. “It was a very strong quarter that justifies the big run-up in the stock over the past couple of months,” said Signal Hill analyst Todd Greenwald.

Google Chief Executive Officer Eric Schmidt said during a conference call with analysts that, “We’re very, very happy,” adding, “The worst of the recession is clearly behind us.”

Shares of Google rose more than 3% in late trading following the earnings release, to $547.30.

Google said its paid clicks, or number of times users clicked on its online advertisements and generated revenue, grew 14% compared to the same period last year, and 4% compared to the prior period. However, the average price paid by advertisers per click fell 6% compared to the period last year, while increasing 5% over the prior period. Greenwald said prices paid by advertisers were “definitely a bright spot” in Google’s report, as the decline compared to last year was “a lot less than people expected.”

Google has also sought in recent months to rein in costs. The company said general and administrative costs fell to $389.6 million in the quarter, compared to $507 million in the same period last year. Once widely known for spending lavishly on hiring and perks, Google’s effort to cut costs under Chief Financial Officer Patrick Pichette has earned praise from Wall Street. Google said it had 19,665 employees as of the end of September, compared with 19,786 in the prior quarter that ended in June. The employee count had been as high as 20,222 in December. Pichette said during the conference call that because the company anticipates better economic conditions, it will be “accelerating hiring across the organization.” Pichette declined to specify any particular goals for hiring, saying only that there is no specific quota, as “you have to find the right Googler.”

“We’re investing, and we’re investing heavily,” Pichette said, while noting that specific areas of investment within the company include its Google Apps business, and mobile phone services. Pichette said that searches done on mobile phones through Google grew 30% in the quarter. Meanwhile, the city of Los Angeles is reportedly considering the use of Google Apps, a set of tools including word processing and e-mail that Google sells on a subscription basis. The product is positioned as a competitor to Microsoft Corp.’s Office suite of software. Google also said it saw a strong performance from its YouTube video service in the period. Still, the company declined to specify whether or not YouTube is profitable or not. Pichette reiterated an earlier statement that the service is “on its path to profitability in the not-too-distant future.” The CFO added, “We’re monetizing more than a billion video views every week on YouTube.” Google paid $1.65 billion to acquire YouTube in 2006.

Schmidt indicated that similarly large acquisitions are now possible amid an improving economy—but added that they won’t be frequent. In general, Schmidt said, the company seeks out smaller acquisitions. “We’re certainly looking for larger businesses to buy,” the CEO said, though “those will be relatively rare- maybe every year or two.”

Greenwald said that while Google’s third-quarter results are encouraging, their significance for the rest of the online advertising market is uncertain. “Whether or not they’re a real barometer for the sector, we won’t know that tonight,” the analyst said.

More San Diego Real Estate articles at Gary Giffin web www.GaryGiffin.com or search for San Diego Real Estate at Gary Giffin MLS search www.SanDiegoHomeSold.com

Appraisers Not Responsible for Low Home Appraisals

Gary Giffin (Keller Williams Realty) — Tue, 20 Oct 2009 09:47:33 -0500

Appraisers Not Responsible for Low Appraisals

RISMEDIA, October 20, 2009—Responding to recent testimony before the House Small Business Committee, the Appraisal Institute, one of the nation’s largest organizations of real estate appraisers, reminded the Committee’s leaders that appraisers are not responsible for so-called low appraisals.

The Appraisal Institute joined the American Society of Appraisers, the American Society of Farm Managers and Rural Appraisers, and the National Association of Independent Fee Appraisers in a letter reacting to recent testimony by National Association of Home Builders President Joe Robson. The four appraiser organizations, representing more than 35,000 members, urged Committee Chair Nydia Velazquez, D-N.Y., and Ranking Member Sam Graves, R-Mo., not to “shoot the messenger.”

“It is important for the Committee to understand that appraisers do not create value in the housing market; they report on what is occurring in the market,” the letter stated. “The fact that some home sales have failed to close is largely the result of the housing market we are in today. Accordingly, we urge caution in connection with those who would prefer to ‘shoot the messenger’ rather than face the realities of today’s distressed market.”

Robson’s testimony to the Committee alleged the improper use of foreclosed properties and properties from distressed sales as comparables in determining values of single family homes where no adjustment had been made to reflect the relative condition of the properties. His testimony also suggested that a high number of new home sales have fallen through because the appraisal reflects a value below the contract sales price for the property.

“Professional appraisers fully understand and agree that if foreclosure and/or distressed property sales are used as comparables, they must be treated carefully,” the letter stated. “Appropriate adjustments must be made by a qualified appraiser to reflect the physical condition of such properties as compared to the subject property. This is common practice. It is the professional real estate appraiser’s responsibility to be aware of these conditions and analyze the market, considering all relevant data and applying proven techniques and methods.”

The letter also stated that, “Given the complexity of this issue in today’s market, the competency and qualifications of the real estate appraiser is of critical importance in our system of real estate financing. Lenders or their agents–including appraisal management companies–would be well served by retaining the services of highly qualified appraisers where such conditions exist.”

The appraiser organizations recommended four specific areas of guidance to mortgage lenders and financial institutions:

-Seek out the services of highly qualified appraisers for complex appraisal assignments.
-Recognize that sales concessions are as important as the condition of a property to the credibility and reliability of the appraisal.
-Provide sufficient time for the real estate appraiser to conduct the proper analysis of the subject property and comparables used.
-Promote communication between appraisers, builders and real estate agents.

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Industry’s Most Powerful Associations Send Letter to Administration Advocating for Extension of Homebuyer Tax Credit

Gary Giffin (Keller Williams Realty) — Tue, 20 Oct 2009 09:41:58 -0500

Industry’s Most Powerful Associations Send Letter to Administration Advocating for Extension of Homebuyer Tax Credit

RISMEDIA, October 20, 2009—The Mortgage Bankers Association (MBA) along with the National Association of Realtors (NAR) and the National Association of Homebuilders (NAHB) sent a letter to senior Obama Administration officials yesterday requesting their support for a 12-month extension of the first-time homebuyer tax credit.

The letter, addressed to Treasury Secretary Geithner, HUD Secretary Donovan and National Economic Council Chair Summers, outlines why the three organizations believe that the tax credit has had a stimulative effect on not only the housing market, but on the U.S. economy as a whole.

A copy of the letter is below:

Dear Secretaries Geithner and Donovan and Dr. Summers:

The undersigned trade associations have supported the first-time homebuyer tax credit as an effective housing stimulus during the current economic crisis. Congress established the homebuyer credit as part of the Housing and Economy Recovery Act of 2008 and it was subsequently expanded in the American Recovery and Reinvestment Act of 2009. The Internal Revenue Service (IRS) recently reported that over 1.4 million taxpayers have benefited from the tax credit as of August 2009.

The current global credit crunch and economic recession began in the U.S. housing market and recovery will not be complete until the housing market returns to economic health. In normal times, housing represents approximately 15% of U.S. gross domestic product, with numerous spillover benefits into other parts of the economy. Although we are seeing some improvement in the housing market, it is essential that the favorable impact of the first-time homebuyer credit be sustained beyond the upcoming expiration date of November 30, 2009.

The undersigned trade associations request your support for the extension of the first-time homebuyer tax credit for twelve more months.

Economic Impacts of Housing
As the housing markets began to falter, the economic ripples were felt across a number of industries. This highlights that housing is a pillar of our economy, and emphasizes the need to ensure we do not jolt today’s very fragile housing market just as we are starting to see signs of stabilization. As the housing market recovers, so do a number of other businesses, including small businesses that rely on family expenditures that accompany home purchases.

NAR has estimated that the first-time homebuyer tax credit program has generated approximately 355,000 home sales above what would have occurred in the absence of a credit. The credit has also allowed greater mobility among sellers. Existing homeowners are able to relocate (or simply move to a different home) because their current home has been sold to an eligible tax credit buyer. These entry-level, credit-eligible purchases have helped to reduce the glut of homes presently for sale on the market.

This increased housing activity leads to other benefits as well. A December 2008 report by the National Association of Home Builders (NAHB) examined the spending behaviors of those who recently purchased a home. The study showed that buyers of newly-constructed homes spent an average of $12,332 on additional goods and services. Those who purchased an existing home spent an average of $8,927. The report indicated that this money is spent in three main areas: property repairs and alterations, appliances, and furnishings. NAHB has estimated that this spending, in addition to other economic benefits connected to housing activity stimulated by the tax credit program, has produced 187,000 jobs.

Importantly, the tax credit has produced tangible effects with respect to the imbalance between supply and demand in the housing market. New home inventory has continued to fall due to dramatic declines in construction. In addition, a welcome pickup in sales has also reduced inventory. Consequently, months-supply currently stands at 7 months, down from 12.4 months in January 2009. A healthy housing market ideally has 5 to 6 months-supply. Likewise, months-supply of existing homes on the market has fallen to 8.5 months, down from its high of 10.6 in November 2008.

Achieving equilibrium between supply and demand for housing is critical to stabilizing housing prices, and therefore household wealth. An extended homebuyer tax credit is a critical policy for achieving this goal.

Conclusion
The undersigned trade associations believe that the first-time homebuyer tax credit has had a stimulative impact on our economy. We support extending and even expanding it so the credit can help more buyers and sellers. As we approach the sunset date of the current $8,000 tax credit, we urge Congress to expand the program to include all purchasers of principal residences, increase the credit, make the funds available for closing, and extend the overall program by at least 12 months.

Our fragile economy is just beginning to show signs of recovery. We should not jeopardize that recovery by letting this tax credit expire. The homebuyer tax credit is helping hundreds of thousands of Americans realize the American dream, and it is creating thousands of jobs that rely on housing. Problems in the housing industry led us into a global recession and housing incentives can help lead us out of the recession.

Our members greatly appreciate the efforts that the current administration has made by helping troubled homeowners to stay in their homes, providing Treasury support to the secondary market for mortgages, and shoring up the housing industry through the first-time homebuyer tax credit. We encourage you to finish the job already started by extending and expanding the current first-time homebuyer tax credit.

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1.4 Million Families Have Taken Advantage of First-Time Home Buyer Tax Credit, More Claims Expected

Gary Giffin (Keller Williams Realty) — Sun, 18 Oct 2009 20:23:10 -0500

1.4 Million Families Have Taken Advantage of First-Time Home Buyer Tax Credit, More Claims Expected

RISMEDIA, October 8, 2009—With the First-Time Home Buyer Tax Credit deadline quickly approaching, the Internal Revenue Service recently reminded potential home buyers they must complete their first-time home purchases before Dec. 1, 2009 to qualify for the special first-time home buyer credit. The American Recovery and Reinvestment Act extended the tax credit, which has provided a tax benefit to more than 1.4 million taxpayers so far.

The credit of up to $8,000 is generally available to home buyers with qualifying income levels who have never owned a home or have not owned one in the past three years.

The IRS encouraged all eligible homebuyers to take advantage of the first-time home buyer credit but at the same time cautioned taxpayers to avoid schemes that help ineligible people file false claims for the credit. Currently, the agency is investigating a number of cases of potential fraud and is using computer screening tools to identify questionable claims for the credit.

Because the credit is only in effect for a limited time, those considering buying a home must act soon to qualify for the credit. Under the Recovery Act, an eligible home purchase must be completed before Dec. 1, 2009. This means that the last day to close on a home is Nov. 30.

The credit cannot be claimed until after the purchase is completed. For purchases made this year before Dec. 1, taxpayers have the option of claiming the credit on their 2008 returns or waiting until next year and claiming it on their 2009 returns.

For those considering a home purchase this fall, here are some other details about the first-time home buyer credit:

-The credit is 10% of the purchase price of the home, with a maximum available credit of $8,000 for either a single taxpayer or a married couple filing jointly. The limit is $4,000 for a married person filing a separate return. In most cases, the full credit will be available for homes costing $80,000 or more.

-The credit reduces the taxpayer’s tax bill or increases his or her refund, dollar for dollar. Unlike most tax credits, the first-time home buyer credit is fully refundable. This means that the credit will be paid to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.

-Only the purchase of a main home located in the United States qualifies. Vacation homes and rental properties are not eligible.

-A home constructed by the taxpayer only qualifies for the credit if the taxpayer occupies it before Dec. 1, 2009.

-The credit is reduced or eliminated for higher-income taxpayers. The credit is phased out based on the taxpayer’s modified adjusted gross income (MAGI). MAGI is adjusted gross income plus various amounts excluded from income—for example, certain foreign income. For a married couple filing a joint return, the phase-out range is $150,000 to $170,000. For other taxpayers, the range is $75,000 to $95,000. This means the full credit is available for married couples filing a joint return whose MAGI is $150,000 or less and for other taxpayers whose MAGI is $75,000 or less.

-The credit must be repaid if, within three years of purchase, the home ceases to be the taxpayer’s main home. For example, a taxpayer who claims the credit based on a qualifying purchase on Sept. 1, 2009, must repay the full credit if he or she sells the home or converts it to business or rental use at any time before Sept. 1, 2012.

Taxpayers cannot take advantage of the credit even if they buy a main home before Dec. 1 if:

-The taxpayer’s income is too large. This means joint filers with MAGI of $170,000 and above and other taxpayers with MAGI of $95,000 and above.

-The taxpayer buys a home from a close relative. This includes a home purchased from the taxpayer’s spouse, parent, grandparent, child or grandchild.

-The taxpayer owned another main home at any time during the three years prior to the date of purchase. For a married couple filing a joint return, this requirement applies to both spouses. For example, if the taxpayer bought a home on Sept. 1, 2009, the taxpayer cannot take the credit for that home if he or she owned, or had an ownership interest in, another main home at any time from Sept. 2, 2006, through Sept. 1, 2009.

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Fix-Up Home Strategy Works in Long Run: If You Have Time on Your Side, Improve and Enjoy Your Home

Gary Giffin (Keller Williams Realty) — Sun, 18 Oct 2009 20:05:55 -0500

A Fix-Up Strategy Works in Long Run: If You Have Time on Your Side, Improve and Enjoy Your Home

RISMEDIA, October 17, 2009—(MCT)—You’re thinking of selling—but not just yet. Let’s say you’ve got a five-year plan to prepare an older, lived-in house for sale.

Maybe you’re faced with tattered carpets, battered appliances and dingy paint. Or maybe we’re talking about truly scary problems, such as asbestos, underground oil tanks or leaking roofs.

What should you take care of first? What can wait? What can be ignored altogether? And how do you keep costs under control?

“Basically what we’re talking about is good, solid preventive maintenance on your home,” said Barbara Weissmann of Friedberg Properties in River Vale, N.J. She recommends that homeowners looking at a sale down the road hire a home inspector to check out the house. “You’re looking to discover defects that you can fix over time,” she said. She and other experts say it’s possible to get a house ready for market without spending a fortune, especially if you have time on your side. And if you’re going to fix up the property anyway, Weissmann said, “why not do it several years in advance so you can enjoy it?”

The first jobs to tackle include anything that’s a danger to your health or the house’s future. If the roof is leaking, for example, that will damage the ceiling, walls and floors below. Funky wiring or leaky plumbing? Deal with it sooner, not later. “The biggest killer of a home’s value is no maintenance,” Weissmann said.

If there’s flaking asbestos insulation on the pipes, that’s a health hazard, and can also delay or kill a sale down the line. Don’t try to remove it yourself; get a licensed contractor.

You should also make sure you have working smoke and carbon monoxide detectors. Check with your town; some require that at the time of sale, the alarms must be wired into the home’s electrical system, a job that requires an electrician. Other municipalities will accept battery-operated alarms. Either way, you also want these in place for your own safety, along with a fire extinguisher in the kitchen.

When you’re ready to sell, the buyer will generally require that certain major issues be addressed. Better to handle them now than risk delaying or losing a deal later. Aside from asbestos, another big environmental concern is an underground oil tank, which can leak. Jeana Cowie, a RE/MAX agent in Oradell, N.J., recently advised a couple who plan to sell in a few years to deal with the tank now. “I felt that buyers will skip looking at the home because of oil heat,” Cowie said. “And a new gas furnace is a huge positive for all homes.” Maybe you’ve already dealt with the oil tank. But if it was only abandoned in place, be prepared: a buyer will often seek to have it taken out because of concerns that the job was not done properly, said Louis Chapman, a real estate lawyer in Wayne and Teaneck, N.J.. You might want to have it removed before putting the house up for sale. Check for radon gas and deal with it if it’s there; this is something a buyer will also insist on. Try your state department of environmental protection for testing and correction companies.

Basement moisture often is an issue in home sales, said Dominick Laurita of Interstate Home Inspections in Califon, N.J. It can lead to mold, which can scare buyers away. The most common cause: gutters that aren’t draining rainwater away from the house. “It’s a simple fix,” said Laurita.

A termite problem also could derail a sale, so you want to act quickly if you find evidence of that. Though inspectors can’t see termite damage hidden behind walls, the insects sometimes leave visible trails. Keep the paperwork on all these jobs to show an eventual buyer.

Once you get past the most pressing projects, there are a cluster of jobs where you have to weigh the benefits against the costs. In general, home sellers get back only 60% to 80% of the money spent on home improvements, according to Remodeling magazine. “You’re not getting a dollar back for every dollar you spend,” Weissmann said. “Don’t do any remodeling whatsoever, but anything that has to be replaced should be replaced,” said Dick O’Connor, a Dumont, N.J., real estate broker. “You can spend $50,000 to remodel and get only $30,000 back. Just be sure everything is in working order.”

Michael Fitzpatrick, a Hackensack, N.J., real estate lawyer, said it’s okay to leave some issues to be handled in a negotiation between the seller and buyer, rather than spend a lot to upgrade the house before you even put it on the market.

Most experts recommend against major kitchen or bath renovations. But less ambitious upgrades, such as replacing scratched countertops or outdated appliances, could make sense, they said. “You’ve got to make it look good,” said Maria Rini, a RE/MAX agent in Oradell. “But the spruce-up bill can be a lot less than you imagine.”

When it comes to cost-effective fix-ups, most housing experts have three favorites: clear out clutter, paint the walls and rip up old carpet. If the wood floors under the carpet are in good shape, great; otherwise, they can be refinished at a cost that typically ranges from $1.50 to $3 a square foot. Bob Olson, a contractor with Home Resources in Ridgefield Park, N.J., said updating doors, moldings and trim can give a home “a fresh new look” at a reasonable cost.

Improving the landscaping, especially the front yard, is crucial. But it doesn’t have to look like a manicured estate. “Clean up the flowerbeds and trim back the bushes to expose the house,” Rini said. Plant flowers, especially in the front, for curb appeal, advised Barbara Ostroth, a Coldwell Banker agent in Oradell. In winter, you can plant cabbage plants with colorful leaves.

If your furnace or hot water heater dies, obviously you must replace it. If those items are old but still working, however, most real estate experts advise that you leave them in place and adjust the home price to reflect their age. “If the heating system is old but works, don’t touch it,” O’Connor said.

One option is to buy a home warranty when you’re ready to sell. A warranty “is a great way to overcome buyers’ objections to older appliances, pipes, electric systems, furnaces and hot water heaters,” Ostroth said.

New, energy-efficient windows? That’s a costly job that many sellers would rather just leave to the buyers, even it means getting a lower price for the property. “If you’re getting out of the house you would almost never redo the windows, unless they’re rotted through,” Rini said.

If you decide to renovate a kitchen or bath for your own enjoyment, keep resale in mind. “Try to pick something that is salable. Keep it neutral; don’t put in a green countertop,” said Margrit Vogler of Margrit Vogler Properties in Oradell.

Finishing a basement could be worthwhile if the house is small and there’s no other family room or play space for the kids. But otherwise, most real estate advisers recommend just tidying up instead, by throwing out clutter and painting the walls and floor.

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Economic Growth Expected to Slow in First Half of 2010 before Picking up in Second Half

Gary Giffin (Keller Williams Realty) — Fri, 16 Oct 2009 09:42:25 -0500

Economic Growth Expected to Slow in First Half of 2010 before Picking up in Second Half

RISMEDIA, October 16, 2009—MBA expects economic growth to continue through the rest of 2009 before slowing in the first half of 2010. Unemployment is expected to climb to 10.2% by the middle of 2010 before beginning to moderate as economic growth resumes sustained growth in the second half of the year.

Mortgage originations should reach $1.5 trillion in 2010. Modest increases in home sales should drive purchase originations but refinance originations are expected to decline as mortgage rates rise.

“The recession is behind us, but the effects of the recession will linger for some time in the form of higher unemployment, and lower levels of business investment and home construction. One of the big questions regarding growth will be the behavior of consumers. The large losses of consumer wealth in the form of reduced home values and stock market losses, as well as the absolute losses of income resulting from unemployment, reduced employment and the fear of unemployment have constrained consumer spending,” said Jay Brinkmann, MBA’s chief economist and senior vice president for research and economics.

“Timing of the economic recovery is very much tied to the growth in consumer spending. In addition, the effect of the bulk of the federal stimulus package, particularly the construction components, is not expected to be felt until 2010.

“Perhaps the biggest unknown is the level and volatility of interest rates. While the lack of inflation, high unemployment and excess capacity in the economy should hold interest rates down, there is a lot of uncertainty regarding rates immediately following the termination of the Federal Reserve’s purchase of mortgage-backed securities. No doubt the Fed will do its best to minimize adverse effects, but the elimination of these purchases will put upward pressure on all long-term rates as well as the spread between mortgage rates and Treasuries. The size of any resulting rate move will largely determine the size of the refinance market.”

Following are the key points of the latest MBA forecast:

-Real GDP growth was negative in 2009, with the economy contracting by around 0.5% resulting from sharp drops in the first half of the year followed by growth in the second half. Growth is expected to be about 3% in 2010.

-The unemployment rate will continue to increase from the current level of 9.8% to about 10% by the end of 2009 and peak at 10.2% in the second quarter of 2010, before declining slowly through 2011.

-Fixed mortgage rates are expected to average about 5% in the fourth quarter of 2009 and increase to 5.6% by the end of 2010.

-Total existing home sales for 2009 will end up about 2% higher than those for 2008. Existing home sales are projected to increase further in 2010, increasing by about 11.2%.

-New home sales for 2009 will be down by about 18% relative to 2008. Sales seemed to have bottomed in the first quarter of 2009 and have been rebounding modestly since. For all of 2010, new home sales should post an increase of about 21% from 2009’s very low levels.

-National average home price declines should abate by early 2010, but will vary by state and home value. The demand will be highest for entry-level homes.

-Purchase originations for 2009 will be $718 billion, about 2% below the 2008 level of $731 billion. Purchase originations should rise about 12% in 2010, as existing home sales recover and home prices stabilize.

-Refinance originations will end 2009 at $1.245 trillion, up about 60% from $777 billion in 2008. Refinance activity will likely decrease in 2010 to about $745 billion as mortgage rates increase

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$8,000 Tax Credit’s for First Time Home Buyers Hoops Frustrate House Hunters

Gary Giffin (Keller Williams Realty) — Fri, 16 Oct 2009 09:37:14 -0500

$8,000 Tax Credit’s Hoops Frustrate House Hunters

RISMEDIA, October 16, 2009—Mary Shanklin (MCT)— This summer, Brian Smith decided he should buy a house. Prices were at record lows; “for sale” signs were common, and, most important, he could get a tax credit of as much as $8,000 for first-time buyers if he bought before December. But four months later, after looking at more than 40 houses and condominiums, Smith quit his search in frustration.

“Honestly, my heart was so broken,” said Smith, an associate at a financial-investment company. “I hate that I am going to miss out on the tax credit. But it’s better to wait and get the place you need and want than to get a place and not be happy with it.”

As the Nov. 30 deadline nears for the first-time home buyer tax credit, no hard numbers suggest how many buyers are in Smith’s position. But interviews with real estate agents, lenders and buyers suggest that the number of first-time buyers who are encountering challenges is rising.

At least some are learning they must play by a whole new set of rules from just a few years ago. Stung by a real estate meltdown fueled with free-flowing mortgages and runaway prices, regulators have reacted to the downturn by forcing lenders to be stingier with loans.

Buyers in Orlando, one of the hardest-hit markets in the country, must compete with multiple offers on bargain properties. Short sales can take months to finalize. Foreclosed houses often need repairs that disqualify them from federally backed mortgages. And, amid the free-falling prices, deal-killing appraisals often fall short of sales prices.

Smith found monthly fees on the condos he was interested in would have cost more than mortgage payments. He endured a trail of “junk” houses that needed new roofs and other repairs. Some of the foreclosed properties had no power, and he had to view them by flashlight or cell phone light. And finally, the four-bedroom pool home he wanted the most failed to meet federal lending rules.

“In a nutshell, it’s a whole different world out there,” said Judi Northrop, the Equilliance LLC loan officer who worked with Smith. She said he was a great candidate for a mortgage, but the days of someone with a pretty credit score skating through the process are over. Now lenders want documents to address every note in a mortgage application.

The real estate industry continues to hope that the tax incentive will revive the sagging market. A study released earlier this month by the Fisher Center for Real Estate and Urban Economics at the University of California showed the credit has spurred sales. The supply of homes priced at less than $300,000 decreased by 26% compared with a year ago; and the amount of homes priced within the $300,000 to $500,000 range dropped by only 18%. Study author Kenneth T. Rosen, lead researcher on the study and Chairman of Rosen Consulting Group, credited the federal tax break.

In the Orlando area, it’s not clear how many first-time buyers are hitting snags while investors and others scoop up bargains. Though sales overall for the year are up 45% from last year, the percentage of home sales with prices from $300,000 to $500,000 grew more during the last year than home sales under $300,000, according to a review of data from the Orlando Regional Realtor Association. Investors are definitely making their mark, said Les Simmonds, president of the association. “Multiple offers are there because investors are getting back in the market,” Simmonds said. “Traditional buyers coming in are going to find they’re in that mix with those bids. The frustration is understandable.”

Until the tax credit emerged, buying a home had not been on Smith’s to-do list for a long time. In 2002, he considered purchasing a house but “chickened out” after declines in the stock market. For years, he rented from a roommate. Smith, who was earning $39,000 at his job in Maitland when he started his search, targeted homes priced at $100,000—about $28,000 less than the area’s median price. His loan officer said he could have afforded more, but he wanted to play it safe. Early in his hunt, he found a real estate landscape defined by foreclosures and distressed properties, which constitute about half of the sales in the Orlando market. Of the 20 houses or condos he had seen by June, only two had people still living in them.

Northrop recalled that one of the houses Smith zeroed in on was in such rough shape that the drywall was missing in some places and only the studs showed after owners did not complete a renovation. Smith was getting a Federal Housing Administration-backed loan because those mortgages require down payments of only about 3%, compared with 10% or 20% for conventional loans. Those loans also require solid houses instead of makeover candidates.

Troubled house hunts aren’t unique to Smith. Orlando resident Darby Miller said he has found the market so competitive that one house had 12 offers by the time he looked at it. The biggest problem, he said, was that he did not qualify for a state program that would have given him the $8,000 tax credit money upfront to use as a down payment. “At this point, it’s very inconvenient,” Miller said. “I’m going to have to draw from funds I didn’t really want to use.” For Smith, any condos and houses that were in his price range and in good condition quickly disappeared from the bargaining table. Two months into his search, Smith had made no offers. “By the time I’ve said I’m interested, they’re gone,” he said. “Someone got to them before me.”

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Basics of the Housing Market (Buyer’s vs. Seller’s Markets)

Gary Giffin (Keller Williams Realty) — Thu, 15 Oct 2009 20:19:38 -0500

•October 2, 2009

Basics of the Housing Market

If you have been looking to purchase or sell real estate, you may have heard the terms sellers’ market and buyers’ market. You may also have wondered what these terms mean and how each market impacts you as a buyer or seller. Here is a brief explanation.

What are the different markets?

When there are more buyers than homes for sale, a sellers’ market is in effect. As you might expect, the conditions in this market favor sellers over buyers. During a sellers’ market, you will generally find that home prices rise higher than they normally would and that homes tend to sell more quickly.

At other times buyers have more negotiating power. In a buyers’ market there is a surplus in housing inventory. In other words, there are more homes on the market than there are willing buyers. During this period, prices tend to rise more slowly and may even fall. Also, homes typically take longer to sell.

When conditions do not necessarily favor either buyers or sellers, you have a transitional market. This period occurs between moves toward either a buyers’ or sellers’ market. When the market changes, it doesn’t do so overnight. There is a transitional period in between when housing demand and supply are approximately equal and pricing typically stabilizes.

How are buyers and sellers affected?

Buying a home in a sellers’ market is a very fast and competitive process. Multiple offers on the same property are not uncommon. Some of these offers may even be above the asking price. To improve your negotiating position as a buyer, have your finances in order, get pre-approved for a mortgage, be prepared to act quickly, and make a strong offer. Even so, don’t be surprised and try not to be frustrated if you still get squeezed out of the market by escalating prices and bidding wars.

If your home is for sale when conditions have created a sellers’ market, your timing is ideal for reaping the rewards of price appreciation. Generally speaking, you also have more leverage in the negotiating process. Remember however, that regardless of your more favorable position in this market, you would be wise to set realistic expectations and remain flexible in negotiations. It is unreasonable to think that a sellers’ market automatically means you will get full price, agreement on all terms, sale within a few days, or sale regardless of property condition. Hold your ground beyond a reasonable point and you could be left with your home still for sale when the market swings in the other direction.

If you are selling when a buyers’ market is in effect, be prepared for a challenge. Buyers tend to be more demanding with higher expectations for seller incentives and concessions. If you need to sell, you must be ready and willing to consider sensible compromises with respect to both price and terms. More aggressive marketing may be needed to attract buyers and extra attention to getting your property in the best possible condition will help improve your competitive edge in the marketplace.

Purchasing a home in a buyers’ market presents you with a great opportunity to find the right home at the right price. Along with this opportunity though comes a different set of potential challenges. With a greater number of homes on the market and bargaining power in your hands, you are faced with numerous choices and the temptation to negotiate on just about everything. To make the process easier, focus and narrow your search based on needs, wants and affordability. And when you find the right home, focus on which concessions are really critical to helping you meet goals and needs.

What stimulates market changes?

The housing market tends to cycle between shortage and surplus. Therefore factors that impact supply and demand influence housing market changes. Factors that have a widespread effect include interest rates, economic conditions, and consumer confidence levels. For example, low interest rates, good economic conditions and high levels of consumer confidence can increase the number of potential buyers. Since housing supply tends to lag behind demand, the result is movement toward a sellers’ market. Reverse those factors and buyer demand will most likely slow. When the market reaches the point where there is an excess of properties, a swing toward a buyers’ market generally occurs.

How long does a given market cycle last?

The short answer is: it varies. Either market can last months, sometimes even years. Much is dependent on the driving forces behind the change. Even for experts, forecasting the duration and timing of changes is difficult at best. What is certain, however, is that sooner or later the housing market will change. Neither buyers nor sellers have the upper hand all the time. For you as a buyer or seller, knowing that market change is inevitable as well as which market your area is currently experiencing will give you an informed advantage as you make decisions about buying and selling real estate.

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California Association of Realtors Releases 2010 Housing Market Forecast

Gary Giffin (Keller Williams Realty) — Thu, 15 Oct 2009 20:13:21 -0500

Looking Ahead – California Association of Realtors Releases 2010 Housing Market Forecast

RISMEDIA, October 15, 2009—“California’s housing market continued its strong sales rebound this year, resulting from the continued pace of distressed properties coming to market,” said California Association of Realtors (C.A.R.) President James Liptak. “This follows two years of double-digit sales declines in 2006 and 2007. Looking ahead, we expect sales to moderate to a more sustainable pace.”

“After experiencing its sharpest decline in history, we expect the median price to rise modestly next year,” Liptak added. “2010 will mark the beginning of the ‘new normal’ for California’s housing market. This ‘new normal’ likely will feature a steady stream of sales driven by distressed properties in the low end of the market, coupled with moderate home-price appreciation.”

The median home price in California will rise 3.3% to $280,000 in 2010 compared with a projected median of $271,000 this year, according to the forecast. Sales for 2010 are projected to decrease 2.3% to 527,500 units, compared with 540,000 units (projected) in 2009.

“Housing in California has become a tale of two markets,” Liptak said. “The low end continues to attract first-time buyers and investors, with a resulting shortage in the number of homes for sale. Sellers at the high end, however, continue to be challenged by the ability of home buyers to secure financing as well as their concerns about where prices are headed. While demand from first-time buyers for low-end properties will continue throughout next year, sales could be impacted if discretionary sellers do not return to the market by the second half of 2010.

“2009 marked a unique opportunity for first-time home buyers,” Liptak said. “Homes were more affordable than they have been in years, interest rates hovered near historic lows, and the federal tax credit helped more than 1 million people become homeowners nationwide. Now is the time for Congress to extend the federal tax credit and to expand it to all buyers, not just first-timers.”

“With distressed properties accounting for nearly one-third of the sales in 2010, inventory will be relatively lean, under six months during the off-season months, and a roughly four-month supply during the peak season,” said C.A.R. and Vice President Leslie Appleton-Young. “We expect the median price to decrease slightly through the remainder of 2009 and into next year, then rise before leveling off next summer. For the year as a whole, home prices are forecast to reach $280,000.”

“Although it appears at this time that lenders are closely monitoring the flow of distressed properties onto the market, there could be an exertion of downward pressure on home prices should a heavier than expected wave of foreclosures come to market next year,” she said.

“The wild cards for 2010 include foreclosures, loan resets, the labor market, and the California budget crisis, as well as the actions of the federal government,” Appleton-Young said.

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Home Real Estate Foreclosure Activity Increases 5% in Third Quarter 2009

Gary Giffin (Keller Williams Realty) — Thu, 15 Oct 2009 20:09:37 -0500

Foreclosure Activity Increases 5% in Third Quarter

RISMEDIA, October 15, 2009—RealtyTrac, one of the leading online marketplaces for foreclosure properties, released its U.S. Foreclosure Market Report for Q3 2009, which shows that foreclosure filings—default notices, scheduled auctions and bank repossessions—were reported on 937,840 properties in the third quarter, a 5% increase from the previous quarter and an increase of nearly 23% from Q3 2008. One in every 136 U.S. housing units received a foreclosure filing during the quarter—the highest quarterly foreclosure rate since RealtyTrac began issuing its report in the first quarter of 2005.

Foreclosure filings were reported on 343,638 properties in September, a 4% decrease from the previous month but a 29% increase from September 2008. Despite the monthly decrease, September’s total was still the third highest monthly total since the RealtyTrac report began in January 2005, behind only July and August of this year.

“Bank repossessions, or REOs, jumped 21% from the second quarter to the third quarter, corresponding to jumps in defaults and scheduled auctions in the previous two quarters,” said James J. Saccacio, chief executive officer of RealtyTrac. “REO activity increased from the previous quarter in all but two states and the District of Columbia, indicating that lenders may be starting to work through some of the pent-up foreclosure inventory caused by legislative delays, loan modification efforts and high volumes of distressed properties.”

Nevada, Arizona, California post top state foreclosure rates in third quarter
Nevada continued to document the nation’s highest state foreclosure rate in the third quarter, with one in 23 housing units receiving a foreclosure filing—nearly six times the national average. Foreclosure filings were reported on 47,925 Nevada properties during the quarter, an increase of nearly 10% from the previous quarter and an increase of nearly 59% from the third quarter of 2008. Nevada REO activity in the third quarter increased 29% from the previous quarter and scheduled auctions increased 26% from the previous quarter, but defaults decreased 8% from the previous quarter.

Arizona posted the nation’s second highest state foreclosure rate in the third quarter, with one in every 53 housing units receiving a foreclosure filing, and California posted the nation’s third highest state foreclosure rate, also with one in every 53 housing units receiving a foreclosure filing during the quarter.

Other states with foreclosure rates ranking among the top 10 in the third quarter were Florida, Idaho, Utah, Georgia, Michigan, Colorado and Illinois.

Six states account for more than 60% of nation’s third quarter total
California, Florida, Arizona, Nevada, Illinois and Michigan accounted for 62% of the nation’s total foreclosure activity in the third quarter, with 579,541 properties receiving foreclosure filings in the six states combined.

With 250,054 properties receiving foreclosure filings during the quarter, California accounted for nearly 27% of the nation’s total. The state’s foreclosure activity decreased nearly 2% from the previous quarter thanks to a 10% drop in default notices, but scheduled auctions increased 4% from the previous quarter and REOs increased 12% from the previous quarter.

Florida foreclosure activity decreased less than 1% from the previous quarter, but the state still posted the second highest foreclosure activity total for the third quarter. Foreclosure filings were reported on 156,924 Florida properties, a 23% increase from Q3 2008. Default notices in Florida decreased 6% from the previous quarter while scheduled auctions increased 5% from the previous quarter and REOs increased 16% from the previous quarter.

Arizona posted the nation’s third highest foreclosure activity total in the third quarter, with 50,342 properties receiving a foreclosure filing during the quarter—a 5% increase from the previous quarter and a 25% increase from Q3 2008.

Nevada posted the nation’s fourth highest foreclosure activity total, with 47,925 properties receiving a foreclosure filing in the third quarter, followed by Illinois, with 37,270 properties receiving a foreclosure filing, and Michigan, with 37,026 properties receiving a foreclosure filing. All three states reported increasing foreclosure activity from the previous quarter and from Q3 2008.

Other states with foreclosure activity totals among the nation’s 10 highest were Georgia (33,385), Texas (29,838), Ohio (29,645), and New Jersey (18,108).

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