09 September 2008
Who is Fannie & Freddie?
We've all been hearing about the US government (aka you and me) taking over the two of our largest financial institutions. But what we haven't been hearing is what the impact will be. It seems that there are some initial positive impacts, but what is to come seems to be in debate. For now, if you're not familiar with who Fannie Mae and Freddie Mac are, check out this short video explanation from Joel Singer of the California Association of Realtors.
31 August 2008
Bodega Bay Trail update
I just received an update on the Bodega Bay Trail from Norma Jellison who represents the Bodega Bay Bicycle and Pedestrian Advisory Committee and thought I'd post it here for you...
"What an incredible day we had Thursday for the dedication of the Cheney Creek Bridge and Trail, connecting Birdwalk on Rt 1 to Doran Park beaches thru the Doran Marsh, and thus the southern section of the Bodega Bay Path! It is also a section of the CA Coastal Trail.
If you have not yet seen the reconstructed path and the new bridge, do go check it out. Better yet, walk it!!
I accepted a Certificate of Appreciation - with photo of the bridge as background - on behalf of the Bodega Bay Bicycle and Pedestrian Advisory Committee. So we can all be proud to finally see something come of all our meetings and advocacy! I'm sure this gem will be much used and bring lots of appreciation for the beautiful southern end of our Bodega Bay - Sonoma County Coast.
BTW, sometime in January, Regional Parks will be looking for volunteers to help plant the new plants along the path. Hope to see some of you help with that effort to further enhance this section of the Bodega Bay Path!
Our Bodega Bay Path is now incorporated into the Countywide Bike/Ped Path Master Plan and a Programmatic EIR is underway for the BB Path. All of which will allow our Path to continue a forward march.
The next section to be constructed will be the northern section from Salmon Creek thru State Park lands to BB Community Center and then down thru the Dunes and old Rt 1 tree line to the Horse Trailer parking lot on Bayflat - there has been a bike lane around the Bay on Bayflat for many years - maybe we can get the path stripe repainted soon. This should be under construction in 2010. A boardwalk between the Tides and Lucas is also in the offing, hopefully not far behind the northern section construction."
"What an incredible day we had Thursday for the dedication of the Cheney Creek Bridge and Trail, connecting Birdwalk on Rt 1 to Doran Park beaches thru the Doran Marsh, and thus the southern section of the Bodega Bay Path! It is also a section of the CA Coastal Trail.
If you have not yet seen the reconstructed path and the new bridge, do go check it out. Better yet, walk it!!
I accepted a Certificate of Appreciation - with photo of the bridge as background - on behalf of the Bodega Bay Bicycle and Pedestrian Advisory Committee. So we can all be proud to finally see something come of all our meetings and advocacy! I'm sure this gem will be much used and bring lots of appreciation for the beautiful southern end of our Bodega Bay - Sonoma County Coast.
BTW, sometime in January, Regional Parks will be looking for volunteers to help plant the new plants along the path. Hope to see some of you help with that effort to further enhance this section of the Bodega Bay Path!
Our Bodega Bay Path is now incorporated into the Countywide Bike/Ped Path Master Plan and a Programmatic EIR is underway for the BB Path. All of which will allow our Path to continue a forward march.
The next section to be constructed will be the northern section from Salmon Creek thru State Park lands to BB Community Center and then down thru the Dunes and old Rt 1 tree line to the Horse Trailer parking lot on Bayflat - there has been a bike lane around the Bay on Bayflat for many years - maybe we can get the path stripe repainted soon. This should be under construction in 2010. A boardwalk between the Tides and Lucas is also in the offing, hopefully not far behind the northern section construction."
28 August 2008
Home Sales Increase Again
NEW HOME SALES ROSE 2.4 PERCENT IN JULY
Sales of new, single-family homes rose 2.4 percent in July to a seasonally adjusted annual rate of 515,000 units, according to new data from the U.S. Census Bureau and the Dept. of Housing and Urban Development released Tuesday.
The uptick represents a modest increase from June figures at 503,000, but sales still remain roughly 35.3 percent below July 2007 estimates of 796,000 units.
Sales of new, single-family homes rose 2.4 percent in July to a seasonally adjusted annual rate of 515,000 units, according to new data from the U.S. Census Bureau and the Dept. of Housing and Urban Development released Tuesday.
The uptick represents a modest increase from June figures at 503,000, but sales still remain roughly 35.3 percent below July 2007 estimates of 796,000 units.
14 August 2008
PENDING HOME SALES INDEX INCREASES 5.3 PERCENT IN JUNE
From National Association of Realtors (click for full article):
The Pending Home Sales Index, based on contracts signed in June, increased 5.3 percent in June to 89.0 from 84.5 in May, according to the latest report from NAR.
According to NAR, approximately 2.5 million first-time home buyers are expected to take advantage of the temporary tax credit, which economists predict will increase existing home sales by 7 percent to 5.51 million in 2009.
"The rise in pending home sales was broad-based with all four regions showing gains," Lawrence Yun, NAR chief economist said. "This is welcome news because a rise in contract activity is necessary for an overall housing recovery. With a tax credit now available to first-time home buyers, increases in home sales could be sustained with the momentum carrying into 2009."
The Pending Home Sales Index, based on contracts signed in June, increased 5.3 percent in June to 89.0 from 84.5 in May, according to the latest report from NAR.
According to NAR, approximately 2.5 million first-time home buyers are expected to take advantage of the temporary tax credit, which economists predict will increase existing home sales by 7 percent to 5.51 million in 2009.
"The rise in pending home sales was broad-based with all four regions showing gains," Lawrence Yun, NAR chief economist said. "This is welcome news because a rise in contract activity is necessary for an overall housing recovery. With a tax credit now available to first-time home buyers, increases in home sales could be sustained with the momentum carrying into 2009."
07 August 2008
Housing, Job Data Signal Recovery, Not Recession
An article by SmartMoney.com's Donald Luskin points out some important news items that seem to be neglected by nearly everyone in the media. Indicators are showing real sign of a real estate market recovery. Here's an excerpt or click here for the entire article.
"I haven't seen a single media story that reported the truth: that the median price of an existing home rose in June. It went up. It was higher."
"Let me be perfectly clear. The median existing home price was higher in June than it was in May, rising to $215,100 from $208,600. Oh, and while we're at it, the price was higher in May than it was in April. And guess what: It was higher in April than it was in March. And hey, while we're at it, it was higher in March than it was in February."
"I haven't seen a single media story that reported the truth: that the median price of an existing home rose in June. It went up. It was higher."
"Let me be perfectly clear. The median existing home price was higher in June than it was in May, rising to $215,100 from $208,600. Oh, and while we're at it, the price was higher in May than it was in April. And guess what: It was higher in April than it was in March. And hey, while we're at it, it was higher in March than it was in February."
30 July 2008
Reform Bill Summary
I received an email from our Coldwell Banker Mortgage advisor today and thought it was a much better summary than I could provide. Feel free to contact him directly - his info is at the end...
From Steve Guenza:
As most of you have already heard, President Bush signed the Mortgage reform bill this morning. I confess, I have not read the entire 700 pages, but below is my take on the import issues that will affect all of our business.
The most important aspect of the bill is that is gives the federal government the authority to step in and infuse money into Fannie Mae and Freddie Mac to keep them from going under. Over the last month, investors were selling off Fannie and Freddie stocks and not buying the mortgage backed securities for fear that they would lose money. Fannie and Freddie have bought over half of the mortgages in the US and their stocks have taken a huge hit due to the mortgage market mess.
In order for Fannie and Freddie to make their mortgage backed securities more attractive to investors. They started offering them at a higher yield to investors. They can’t offer a higher yield unless they get a higher yield themselves; hence, interest rates have gone up.
I believe this bill will calm investors down a little knowing that Fannie and Freddie won’t go under. That coupled with the new lending guidelines and rules set into place, should bring rates down as investors come back to the table. I have already seen rates drop twice already today.
The second most important thing is the new FHASecure loan. By now most of you know of Short Sales. Think of this as a ‘Short Sale’ refi. The current lender has to agree to take a 90% of the current value payoff and write off the rest, and FHA will come in and buy the reworked loan from the lender. Of course there are some conditions such as profit sharing of additional equity when the home is sold, and the lenders have additional fees to pay FHA. It is estimated that the lenders will save billions by accepting the ‘Short Sale’ refinance by not letting it go to foreclosure, but they will have to do a better job than they are doing now with all the problems we currently face with the Short Sale process.
What doe’s this mean for us?
It is estimate that this will help 400,000 U.S. homeowners currently facing foreclosure and that potentially means that we could have 400,000 less foreclosures and short sales on the market, and that’s a good thing.
A few other things included in the Bill:
- 10% or up to $7,500 tax credit for first time homebuyers (Although this needs to be paid back over 15 years with 0 interest)
- $7,000 tax credit for buyers that buy an REO
- Elimination of down payment assistance programs, such as Nehemiah, Ameridream and Genesis
- Tighter loan qualification guidelines
- Keeps the higher conforming and FHA loan limits, instead of just through this year.
- Increases FHA loan down payments from 3% to 3.5%.
- 4 billion dollars for states to buy and rehabilitate foreclosed properties
- Creates a national licensing system for Mortgage Brokers and lenders.
All in all, I really think that this is going to help. With all the good buzz in the media, I am even hearing more and more analyst piping up that this may well be the bottom……..Hang On!!!
Steve Guenza
Mortgage Advisor
Coldwell Banker Mortgage
707-765-4453 office
707-326-0814 cell
http://steveguenza.coldwellbankermortgage.com
From Steve Guenza:
As most of you have already heard, President Bush signed the Mortgage reform bill this morning. I confess, I have not read the entire 700 pages, but below is my take on the import issues that will affect all of our business.
The most important aspect of the bill is that is gives the federal government the authority to step in and infuse money into Fannie Mae and Freddie Mac to keep them from going under. Over the last month, investors were selling off Fannie and Freddie stocks and not buying the mortgage backed securities for fear that they would lose money. Fannie and Freddie have bought over half of the mortgages in the US and their stocks have taken a huge hit due to the mortgage market mess.
In order for Fannie and Freddie to make their mortgage backed securities more attractive to investors. They started offering them at a higher yield to investors. They can’t offer a higher yield unless they get a higher yield themselves; hence, interest rates have gone up.
I believe this bill will calm investors down a little knowing that Fannie and Freddie won’t go under. That coupled with the new lending guidelines and rules set into place, should bring rates down as investors come back to the table. I have already seen rates drop twice already today.
The second most important thing is the new FHASecure loan. By now most of you know of Short Sales. Think of this as a ‘Short Sale’ refi. The current lender has to agree to take a 90% of the current value payoff and write off the rest, and FHA will come in and buy the reworked loan from the lender. Of course there are some conditions such as profit sharing of additional equity when the home is sold, and the lenders have additional fees to pay FHA. It is estimated that the lenders will save billions by accepting the ‘Short Sale’ refinance by not letting it go to foreclosure, but they will have to do a better job than they are doing now with all the problems we currently face with the Short Sale process.
What doe’s this mean for us?
It is estimate that this will help 400,000 U.S. homeowners currently facing foreclosure and that potentially means that we could have 400,000 less foreclosures and short sales on the market, and that’s a good thing.
A few other things included in the Bill:
- 10% or up to $7,500 tax credit for first time homebuyers (Although this needs to be paid back over 15 years with 0 interest)
- $7,000 tax credit for buyers that buy an REO
- Elimination of down payment assistance programs, such as Nehemiah, Ameridream and Genesis
- Tighter loan qualification guidelines
- Keeps the higher conforming and FHA loan limits, instead of just through this year.
- Increases FHA loan down payments from 3% to 3.5%.
- 4 billion dollars for states to buy and rehabilitate foreclosed properties
- Creates a national licensing system for Mortgage Brokers and lenders.
All in all, I really think that this is going to help. With all the good buzz in the media, I am even hearing more and more analyst piping up that this may well be the bottom……..Hang On!!!
Steve Guenza
Mortgage Advisor
Coldwell Banker Mortgage
707-765-4453 office
707-326-0814 cell
http://steveguenza.coldwellbankermortgage.com
26 July 2008
Harbour View Update
It appears that the affordable housing units are about to rented and the developer is taking applications. There are some income restrictions but the rents are very attractive and the location is great. No word yet on when they'll begin building the single family units for sale but there hasn't been much activity for a while.
You can get more info on the rentals at www.theharborviewvillage.com
You can get more info on the rentals at www.theharborviewvillage.com
Subscribe to:
Posts (Atom)
