Great article on the front page of the Orange County Register today.  DataQuick reports that the median price of a home in Orange County now stands at $436,500 which is up almost 4% over a year ago and up a whopping 18% from January's price bottom.  It also says most of the sales are centered in the entry level market and that higher-priced home sales are sluggish.  I think we already know that piece of information.

How Does This Affect Us As Agents?

    With the extension of the home buying tax credit, continued low interest rates, and very attrac­tive home prices, the end of 2009 and the beginning of 2010 should be good for the Southern California real estate industry.  Hopefully this upward trend continues and helps lead the econ­omy out of the recession.  It will take several years to get the economy healthy again but this is a good start.

   It is always interesting to me how the media works.  I guess it is just easier to say that they print whatever sells the most papers.  The same real estate reporters that predicted doom and gloom from 2002 up until the actual crash are now publishing positive real estate articles.  Last week was an article about two separate studies that predict the Orange County home prices will in­crease (yes increase) by 9% to 16% in 2010.  Today there is an article in the business section of the Register reporting that the amount of households that owe more then they are worth went from 20% in the second quarter of this year to 14% in the third quarter.  They are also reporting that with the extension of the homebuyers tax credit and the continued low interest rates, we could see a bump in demand that could help offset the predicted increase in foreclosure activity. 

How Does This Affect Us As Agents?

    This is good news for the real estate industry no matter how you look at it.  People are respond­ing to low prices, low interest rates, and the tax credit and moving out into the market.  As we all know there is a serious lack of inventory and loans are not easy to get through but with activ­ity up and inventory down it is a good sign.  Get the word out and keep talking about it.

   Lots of stories out today with slightly different details but both the House and Senate have ap­proved the $8,000 tax credit for first time homebuyers through the middle of 2010.  The pro­gram has also been expanded to include those people who purchase an owner occupied home within the past 5 years although the tax credit in that case is reduced to $6,500.  The exact de­tails will be out later.

 How Does This Affect Us As Realtors ?

   This is obviously good news for the housing industry.  As the economy continues to stabilize and hopefully begins to improve it is essential that the housing market continue to improve.  As companies begin hiring again more and more buyers will jump into the housing market wanting to take advantage of low interest rates and affordable prices.  Get the word out to everyone you know.

   News out of the government seems to indicate that they will be extending the temporary loan limits for conventional and FHA loans through 2010.  This is great news as right now there are very few investors buying loans over the conforming loan limit of $417,000.  As I mentioned the other day it also appears the extension of the home buying tax credit is closer to being a done deal.  No word yet on exactly how long the tax credit will last or if it will be opened up to all buyers and not just 1st timers. 

 How Does This Affect Us As Realtors?

   This is all good news.  Remember that Fannie Mae and Freddie Mac buy loans and set under­writing guidelines for loan amounts up to and including $417,000.  Loan amounts over that amount are considered "Jumbo" loans and are sold to "other" investors.  Right now the "other" investors do not really exist.  Part of the Stimulus Package caused a temporary increase in the conforming loan limits.  In LA/Orange Counties the new conforming limit is $729,750 and these temporary limits were set to expire at the end of this year.  News that the government will be extending these limits through 2010 is huge news.  It appears that FHA loan limits will also be extended.    

 The word is the Senate could vote on the extension of the $8,000 tax credit as early as today.  There is lots of debate going on with some people feeling it should not be extended while others feel it should be extended and possibly expanded to offer tax credits to anyone buying a home or property and not just first time buyers.

 How Does This Affect Us As Realtors?

 The fear is that if the tax credit goes away so will the desire of many buyers to get out into the market and actually buy something.  As with many of the policies and programs we have seen over the last few years, this has never been done before so nobody really know what the posi­tive or negative effects will be if the tax credit is extended or suspended.  Stay tuned for more information.

Here are some ideas I think will help you with setting goals for 2010:

1) Your goals must be your own. They cannot be dictated by your spouse, your broker or any other individual.
2) Goals must be ambitious yet attainable. The key is to set goals that are realistic yet challenging.
3) Goals must be exciting. It is the excitement that fuels the engine. Simply ask yourself what it is you want, or want to do, that would really wind your clock.
4) If goals are not measurable, they will not work. You must be able to measure progress as you move toward your destination.
5) Your goals must have time limitations. If you don't have a finish line with time constraints, you will procrastinate.

So, what are realistic goals for the average real estate agent? The following are my "minimum" standards  (please note the word minimum):

1) 4-6 listing presentations monthly.
2) 4 listing contracts every month. These listings must be priced and conditioned correctly.
3) 4 opened transactions monthly.
4) At least 95% of all opened transactions should close successfully.
5) At least 15 leads generated by an agent's website monthly.
6) 100% client satisfaction rating.
7) After 24 months in our industry, at least 70% of an agent's success should come from the four "R's"; repeat, referral, recognition and residual sources.

 I can honestly say I have never met an full time agents who is not capable of meeting the minimum goals. And yet, I can also say that only a small percentage of the agents I have met are actually performing to these standards. Why such limited success? I would bet the ranch that a lack of challenging goals, and/or a lack of focus on goals, is a factor.

© drozcorp 2009

   These has been lots of talk and press yesterday and today about our famous Governor signing a package of mortgage related bills into law.  Some of the key components to these laws is pro­hibiting loan officers from "steering" people into higher priced loan program (the higher priced or sub-prime loans have not been available for over 3 years), outlawing negative amortizing loan programs (these programs have also not been available for several years), limiting pre-payment penalties to 2% of the loan amount (pre-payment penalties do not exist on any govern­ment or conventional loan anymore), and a few other cleanup type laws. 

 How Does This Affect Us As Agents ?

  I remember reading several years ago how many millions of dollars it takes to push legislation through the government and make them actual laws.  These new lending laws are a case of clos­ing the barn door after the animals have left.  The lending industry, as we all know, has taken care of most of the problems of the past.  As of right now no one sees a return to the crazy 100% stated income purchase loans that were available several years ago.  Lending guidelines are tough and will probably stay that way for quite a while.

This one of the funnest video's I have ever seen.  http://www.youtube.com/watch?v=SM7oWKgCVo4

    As we all know, the underwriting process is very tough right now.  Source of funds and build­ing permits are two areas to be aware of.  Over the last couple of weeks lenders have become increasingly picky about "sourcing' any and all monies deposited into escrow or the buyers bank accounts.  Monies given to the buyer as a gift for down payment or closing costs must be sourced and traced with paperwork showing the person had the money to give the gift, proof the money came out of the identified account, and proof the money is deposited into either the buyer's bank account or escrow.  If the appraiser mentions that a property has building addi­tions the lender will want permits.  Before the new appraisal guidelines (HVCC) the appraiser would go down to the city building department and research the property for permits.  Because the appraisal management companies are paying the appraisers less money to do the appraisals, in may cases the appraisers are no longer doing the research.

 How Does This Affect Us As Agents?

    The more you know about the lending situation the better prepared you can make your buyers and sellers.  Lending requirements will remain tough until property values start to increase and banks and lenders begin to feel confident in the housing market again.  The government is working hard to inject money into the banking system to make loans easier to qualify for but until the banks and investors ease their underwriting guidelines we all need to put our seat belt on and hold on for a wild ride.

Hi to my friends, I have a open house  on Sunday 9/20/09 at 1:00pm - 4:00pm. This home is a huge 6100+  of living space on a 7600+ lot with a pool. Stop by and see us.