Bay Area Real Estate&Mortgage News&Commentary

Signs of an Improving Housing Market - 2011 Bay Area Market Reports

2012-01-19T12:31:00.001-08:00

Signs of an Improving Housing Market - 2011 Bay Area Market Reports

Recently, there have been more optimistic reports nationwide that indicate there appears to be signs of life out there for the housing market.

My recent experiance is that nice, well priced homes are selling in all areas of the San Francisco Bay Area and many with multiple offers. For example, I represent a client looking in the south bay and the last two homes we have made an offer on have had more than 20 offers each.

Yes, they were in desirable neighborhoods, showed nicely and sold quickly. Also, they were priced at the low end of the market price range to encourage multiple offers. A recent survey of agents nationwide by HouseHunt.com revealed that 65% of agents reported at least one multiple offer situation in the last quarter of 2011.

With that being said, below are the Market Activity Reports for each San Francisco County for 2011:

San Mateo County Market Metrics Report

San Francisco City/County Market Metrics Report

Santa Clara County Market Metric Reports

Santa Cruz County Market Metrics Reports

Alameda County Market Metrics Reports

Contra Costa County Metrics Reports

Of note, available inventory is below 2.5 months in all Bay Area Counties with the lone exception of Santa Cruz County. A balance market is considered 6 months of housing inventory.

I’m always available to answer your questions or discuss your concerns. Just text, call (650 325 7877) or email me for a prompt response. If you are in the San Francisco Bay Area, I invite you to take a look at our Resource Center, AboutBayAreaHomes.com. There you will find links for active home listings, home loan information, market activity reports, home seller strategies, staging and decorating ideas and more.

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They serve clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240. National Mortgage Originator Endorsement 230411.

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Have you heard? Buying is better than renting in 70% of America

2011-12-13T13:34:00.001-08:00

Have you heard? Buying is better than renting in 70% of America.

I'm asked two questions all the time, "is this a good time to buy" and "what kind of market is this, a buyers market or sellers market?" My answer is this, "it's a good time to buy when the timing is right for you" and "the market is at a point of affordibility not seen in decades,so, if the time is right for you, this is the time to buy."

According to a recent article in the Wall Street Journal, “Home prices and mortgage rates have fallen so far that the monthly cost of owning a home is more affordable than at any point in the past 15 years and is less expensive than renting in a growing number of cities.”

What this means to renters is “as a result, monthly mortgage payments on the median priced home—including taxes and insurance—are lower than the average rent levels in 12 metro areas, according to data compiled for The Wall Street Journal by Marcus & Millichap, a real-estate brokerage that tracked 27 metro areas.”

Furthermore, Trulia recently reported that “Making an apples-to-apples comparison between the renting and buying a two-bedroom apartment, condo or townhouse, we found that buying is more affordable in 72% of major cities.” As you can see from the graph below, a strong case can be made for buying in the major bay area cities. The full report can be seen at Trulia.com.

Notice that In the San Francisco, San Jose and Oakland markets the balance is shifting strongly from “it’s better to rent” segment.

I’m always available to answer your questions or discuss your concerns. Just text, call (650 325 7877) or email me for a prompt response. If you are in the San Francisco Bay Area, I invite you to take a look at our Resource Center,www.AboutBayAreaHomes.com. There you will find links for active home listings, home loan information, market activity reports, home seller strategies, staging and decorating ideas and more.

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Tips to Improve Your FICO Scores Quickly

2011-10-24T12:00:00.001-07:00

With mortgage interest rates hovering near record lows, you may want to either refinance your mortgage or purchase a new home before rates go higher again. The question is – can you qualify for refinancing or a purchase loan?

Lenders have tightened loan qualification standards and their most widely used tool to determine if you qualify for a loan and at what interest rate. Credit scores are determined by a software algorithm that analyzes your credit and payment history.

These “FICO” scores run between 300 and 850, with the highest numbers considered to be the best scores. The 47% of Americans with credit scores of 720 or higher receive the best interest rates, according to MyFICO.com and a new survey by Zillow Mortgage Marketplace.

But, during the first half of September 2010, nearly one-third of Americans who applied for a mortgage couldn’t qualify because their credit scores were too low, even with a 15% to 20% down payment.

Those with scores 720 or above qualified for annual percentage rates of 4.3% on benchmark 30-year fixed-rate loans. Borrowers with mid-range scores from 620 to 719 received APRs of between 4.73% and 4.44%. Fannie Mae imposes a minimum credit score of 620 for any loan intended for sale on the secondary market.

Credit scores make a significant impact. For every 20-point credit score increase, found Zillow, the average low APR declines 0.12 percent, a savings of $6,400 on a $300,000 home over 30 years.

Improve your credit scores

FICO scores are based on your credit history. Each credit reporting bureau, Experian, TransUnion, and Equifax calculates its own score, so you may have three scores.

The first thing you need to do is review your credit reports for errors and get them resolved as quickly as possible. Visit annualcreditreport.com to get copies. You can then purchase your credit scores for approximately $14.95 from each agency or all three at myfico.com.

FICO scores change with every new report that comes into the credit reporting bureau, so the credit score you receive today can be improved quickly by following some dos and don’ts.

·Don’t close credit card accounts. FICO scores utilize a credit utilization ratio that turns against you because it appears that you might be overusing your available credit.

·Don’t max out or consolidate credit cards. Credit card companies like it if you only use about 30% of your available credit on your card. You’re better off having small balances on multiple cards than a large balance on one card.

·Don’t apply for new revolving credit or transfer balances. If you’re buying a new home, it’s tempting to buy some new furniture, but don’t open that account until after your loan closes. You don’t want “inquiries” to be raised in the scoring algorithm.

·Don’t change jobs right before you apply for a home loan, although job changes within the same field are considered more favorably in scoring.

·Do pay all bills on time and with at least the minimum payment due. Lenders like on time payment histories.

·Do pay down your debt, as lower income-to-debt ratios are attractive to lenders. Start by reducing credit card balances first, beginning with the balances that generate the highest interest rates. Revolving credit is considered riskier debt than installment loans such as student loans or car payments.

·Do shop lenders simultaneously. Credit score software takes into account several inquiries from mortgage lenders as normal, but if you space rate-shopping out over weeks or months, that could impact your credit score negatively.

Remember, mortgage lenders are most interested in your ability to repay their loan. The most important factors are job and debt payment history. Job security – long-term employment in the same field and on-time credit payments are the best ways to build and protect your credit scores.

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Are you ready to buy a foreclosure?

2011-09-20T09:48:00.001-07:00

Are you ready to buy a foreclosure?

Due to the mortgage crisis that our country faced over the last several years, there are continually more and more foreclosure properties that are being put up for sale everywhere you turn. Of course, this can be very tempting for homebuyers as people can sometimes get properties for 30% or even less on the dollar.

However, if you are considering a foreclosure property for your next purchase, then there are some common pitfalls that you will need to avoid along the way to protect yourself and your future asset. Let’s review some areas to be aware of before making any serious offers.

1. Avoid Making Emotional Offers:When you are planning on putting a bid down on a property, you need to be extremely confident with the home’s current condition, its true market value, and what will be needed to fully restore the property.

Too many buyers will think that they found a great deal and fear that they will lose the home to another bidder. So instead of taking the time to truly do their homework and complete the proper inspections and analysis, they can end up locking up a property for more than it’s actually worth.

2. Estimate Neighborhood Values:Consider what other comparable properties are selling for and talk to a real estate agent who has a working knowledge of the area. In fact, it’s a wise decision to thoroughly review these questions and any other recommendations your Real Estate agent may make:

Is this neighborhood a desirable location. Are there schools, parks and shops nearby? Will I feel comfortable walking down the street at night?

What schools would be available for my kids or future buyers?

Were there any other foreclosures or investor sales that could negatively affect the future value of my home?

How long do I plan on living there and how could that affect things?

What type of appreciation should I expect?

3. Get Preapproved:Before you even start looking at homes, you must get preapproved on a mortgage in order to know exactly what you can afford. Sadly, many buyers can miss out on some phenomenal deals or spend hours of wasted time because they avoid this step. Show banks that you are a serious buyer and have your financing in place!

4. Get Professional Help: Not only should you seek the expertise and of an experienced Realtor®, but you may also need guidance from a real estate attorney or financial consultant as well. Each professional can ensure that you are making the right choices throughout the process and can protect you from any issues you may come across along the way.

Remember that there is a lot more than meets the eye when you are trying to buy a foreclosure property. Negotiating with the banks, filling out paperwork properly, and undergoing all the necessary inspections can be a very detailed and tedious procedure. Therefore, we encourage you to give me a call today to get started. Put my years of experience to work for you.

I’m always available to answer your questions or discuss your concerns. Just text, call (650 325 7877) or email me for a prompt response. If you are in the San Francisco Bay Area, I invite you to take a look at our Resource Center, www.AboutBayAreaHomes.com. There you will find links for active home listings, home loan information, market activity reports, home seller strategies, staging and decorating ideas and more.

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They serve clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed Real Estate Broker by the California Department of Real Estate, 01264240. National Mortgage Originator License Endorsement 230411.

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The State of the Mid Summer Real Estate in the San Francisco Bay Area

2011-08-17T10:38:00.001-07:00

Russ Boyd's videos syndicated by

Now that we are in the summer home buying months I thought it would be a good idea to take a look at some market indicators for the Bay Area Counties.
As can be seen below, the media selling price has dropped for most Bay Area Counties during the past 12 months. Now keep in mind, the median sales price is merely an indication of what price range has the most sales, it says nothing about the value of any specific home nor its current value.
A key component of sales activity is reflected in available inventory for sale. After all, home sales and prices are deeply impacted by supply and demand. As can be seen, “for sale” inventory is down dramatically in the past 12 months.

At this link, Bay Area Market Metrics, you will find the complete reports by county, including considerable more information than is seen here.

San Mateo County-Median Price   July 2010 $797,500 July 2011 $810,000 -2 .0%

Inventory July 2010 4.9 months July 2011 2.6 months -48%

Santa Clara County-Median Price July 2010 $630,000 July 2011 $620,000 -2 .0%

Inventory      July 2010 4.8 months July 2011 2.0 months -58%

San Francisco-MedianPrice   July 2010 $488,000 July 2011 $649,000 +33 .0%

Inventory July 2010 11 months July 2011 2.6 months -77%

Santa Cruz County      MedianPrice    July 2010 $500,000 July 2011 $460,000 -8 .0%

Inventory         July 2010 6.3 months July 2011 3.8 months -40%

Alameda County-MedianPrice    July 2010 $450,000 July 2011 $428,000 - 5.0%

Inventory   July 2010 3.8 months July 2011 2.4 months -37%

Contra Costa County-Median Price   July 2010 $315,000 July 2011 $301,000 -4.0%

Inventory July 2010 4.8 months July 2011 2.2 months -44%

I’m always available to answer your questions or discuss your concerns. Just text, call (650 325 7877) or email me for a prompt response. If you are in the San Francisco Bay Area, I invite you to take a look at our Resource Center, www.AboutBayAreaHomes.com. There you will find links for active home listings, home loan information, market activity reports, home seller strategies, staging and decorating ideas and more.

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New Fannie Mae Rule Impacts Home Buyers

2011-07-24T14:24:00.001-07:00

Russ Boyd's videos syndicated by

Fannie Mae has implemented a new policy that is very important if you are thinking buying and financing a home. This is especially true, since most lenders use FNMA’s guidelines. As of June 1, 2011 lenders became responsible for certifying the borrower's monthly obligations have not increased from the time of the initial credit report through the closing date.

This is effective for new conventional applications only and is not applicable for VA, FHA or Rural Development loans at this time. However, they could follow suit. For Fannie Mae, the goal is to reduce the number of loans that default because of new, non-disclosed debt. Lenders have the freedom to verify in whatever manner they wish, but in most cases, the verification process will amount to a credit re-pull made just prior to closing. A credit report will be pulled at the beginning of the application and will also be pulled 5 days prior to closing.

What does this mean for the conventional borrower? It means that you absolutely should not take out any additional credit or even have an inquiry into your credit report from the time you start the loan application until after you close.

Tips to Avoid Last Minute Issues

DON’T:
• Take out any new credit during your loan application – wait until your loan has closed
• This means no furniture shopping, new window treatments and especially no “Buy now –Pay later” type of financing
• Use your line-of-credit to purchase anything
• Make any large purchases using your credit cards
• Co-sign on a loan for anyone else
• Pay for the mover upfront – ask to be billed later
• Go car shopping even if not ready to buy yet – the dealer may pull your credit that will result in an additional inquiry
• Add to your current debt load as of application time until after closing
• Pay late on any obligation

DO:
• Create paper trails for all deposits into your asset accounts
• Be prepared to write letters of explanations for anything out of the ordinary, e.g.: -For inquiries into your credit report – for any reason – over the last 90 days -For any derogatory credit issues -For any employment gaps
• Speak with your loan officer if you have any questions regarding any of this information

I’m always available to answer your questions or discuss your concerns. Just text, call (650 325 7877) or email me for a prompt response. If you are in the

San Francisco Bay Area, I invite you to take a look at our Resource Center, www.AboutBayAreaHomes.com. There you will find links for active home listings, home loan information, market activity reports, home seller strategies, staging and decorating ideas and more.

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Animoto - Intero Foundation Grants San Mateo June 2011

2011-06-16T09:45:00.001-07:00

via animoto.com

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Reduced Loan Limits Coming to a Town Near You

2011-06-11T07:08:00.001-07:00

You may not remember that back in back in 2008 the conforming loan limit for single family homes was $417,000. This may not be something that you paid much attention to because Jumbo loans were needed for most home purchases in the bay area and the market offered plenty of options.

Of course a lot has changed in the past three years. With the banks no longer to make loans other than those backed by Fannie Mae and Freddie Mac congress approved what we call “high balance” conforming loans. Originally the limit for these loans was set at $625,000 and was based on the median for the county. As it happens, all bay area counties qualified for the high balance conforming limit.

On a temporary basis that limit was increased to $729,750 in March 2008 and has been at that level for the past three years. As they say, all good things must come to an end, so unless congress acts before the 9-30-11 deadline the “temporary” limit will expire and the maximum “conforming loan” will be back to $625,000.

It’s no secret that the upper end of the conforming limit fits well for homes priced from about $900,000 and below. And it no coincidence that the highest level of sales is in the below $900,000 price point. Unless congress comes to the rescue (and at this time it technology’t look like that will happen) the official conforming loan limits for most counties in the Bay Area come 10-1-2011 will be:
$417,000 for Conforming
$625,500 for High Balance Conforming

Of course, depending on the median price in the county where you live could change the maximum conforming loan to somewhere between those numbers.

There are two schools of thought on this subject, although I don’t think there is any question that, at least initially, this will put downward pressure on prices.

The two sides of the debate go like this:
1. Why should home buyers in high-cost areas be penalized? Moreover – why should sellers also be penalized by taking a large group buyers out of the market. This move would substantially slow down recovery efforts in the market. Private lenders will likely not be able to bear all the risk to keep these loans in the market at the same pace as previous years when they were backed by Fannie Mae and Freddie Mac.

Vs.

2. Why should the government continue to back high-priced mortgages? The private market will still be able to make loans to this portion of buyers in high-cost areas. Tax payers don't want the government's role in the mortgage market to be as big as it has been. It costs them too much money.

The topic presents a difficult choice. In effect this change kicks the market while it's down and would cause a hardship. On the other hand I believe the government's role in the mortgage market should be minimized a bit to take the risk off the tax payers shoulders.

The National Association of Realtors is lobbying to extend the loan guarantees. I agree that it makes the most sense to let the markets ride out the rest of the downhill battle and deal with foreclosures. Then we can start to lower these limits to more reasonable levels for both sides and encourage the private market to once again become active in mortgage investments. Doing it too soon, though, would be perhaps the riskiest move to come out of regulators thus far.

I’m always available to answer your questions or discuss your concerns. Just text, call (650 325 7877) or email me for a prompt response. If you are in the

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Common Documents Required For A Mortgage Pre-Approval

2011-05-13T13:29:00.001-07:00

Even though many lenders are still quoting quick 10 minute pre-qualifications over the phone or online, a true mortgage approval that holds any weight is one that has been issued by an underwriter who has had an opportunity to review all of the necessary documents. With a constant stream of new lending guidelines, volatile mortgage rates and tightening regulation from Washington, very few real estate agents will show new homes to a First-Time Home Buyer without at least a pre-qualification letter. A Pre-Approval Letter will help you in three ways:

It lets you know how much mortgage you can qualify for
It gives you an estimate of what your total housing payment would be
Submitting a strong "Pre-Approval" letter with a purchase offer will give the seller more confidence about your ability to complete your end of the agreement

It's obviously a good idea to get your paperwork prepared ahead of time so that the pre-approval process is as thorough as possible. In order to get a pre-approval letter, you'll start by filling out a loan application and submitting a few documents for the loan officer and / or underwriter to review.

Common Loan Pre-Approval Documents:

Income / Assets for Wage Earner:

Last 2 year W2s and Tax Returns
2 most recent Pay Stubs
2 most recent Bank Statements, 401(K), Liquid Assets, Investment Accounts

Income / Assets for Self-Employed:

Last 2 year Tax Returns - Business and Personal
Last Quarter P&L Statement

Letter of Explanation For:

Employment Gap or New Line of Work
Late Payments / Judgments / Bankruptcy on Credit Report

Other:

Bankruptcy Discharge
Child Support Documentation
Lease Agreements (If own other Rental Properties)
Mortgage Payment Coupons (If own other Real Estate)

.....

With the complexity in today’s mortgage and real estate market you will benefit from the advice and guidance of an experienced and knowledgeable mortgage and real estate professional. To see how our technologoy supports the needs of Buyers and Sellers, click here I’m always available to answer your questions or discuss your concerns. Just text, call (650 325 7877) or email me for a prompt response. If you are in the San Francisco Bay Area, I invite you to take a look at our Resource Center, www.AboutBayAreaHomes.com. There you will find links for active home listings, home loan information, market activity reports ,home seller strategies, staging and decorating, a suite of 19 calculators, plus my book, “Let’s Make a Deal, The Insiders Guide to Buying and Selling Real Estate” and more.

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Common Documents Required For A Mortgage Pre-Approval

2011-05-13T13:25:00.001-07:00

It lets you know how much mortgage you can qualify for
It gives you an estimate of what your total housing payment would be
Submitting a strong "Pre-Approval" letter with a purchase offer will give the seller more confidence about your ability to complete your end of the agreement

Common Loan Pre-Approval Documents:

Income / Assets for Wage Earner:

Last 2 year W2s and Tax Returns
2 most recent Pay Stubs
2 most recent Bank Statements, 401(K), Liquid Assets, Investment Accounts

Income / Assets for Self-Employed:

Last 2 year Tax Returns - Business and Personal
Last Quarter P&L Statement

Letter of Explanation For:

Employment Gap or New Line of Work
Late Payments / Judgments / Bankruptcy on Credit Report

Other:

Bankruptcy Discharge
Child Support Documentation
Lease Agreements (If own other Rental Properties)
Mortgage Payment Coupons (If own other Real Estate)

.....

Most borrowers also want an opportunity to learn more about the loan officer before digging up all of these personal documents. Spend 15 minutes on the phone asking the loan officer to explain how mortgage rates work, quizzing them on some basic industry vocab or just to see if they know what to prepare your agent for ahead of time. The Q&A session can be more than just a lender qualifying you, as long as you're prepared to ask the right questions. Either way, you'll definitely want to have the above list of approval documents ready once you've decided on the right loan officer that you trust will meet your expectations. With the complexity in today’s mortgage and real estate market you will benefit from the advice and guidance of an experienced and knowledgeable mortgage and real estate professional. To see how our technologoy supports the needs of Buyers and Sellers, click here I’m always available to answer your questions or discuss your concerns. Just text, call (650 325 7877) or email me for a prompt response. If you are in the San Francisco Bay Area, I invite you to take a look at our Resource Center, www.AboutBayAreaHomes.com. There you will find links for active home listings, home loan information, market activity reports ,home seller strategies, staging and decorating, a suite of 19 calculators, plus my book, “Let’s Make a Deal, The Insiders Guide to Buying and Selling Real Estate” and more. Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They serve clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240. National Mortgage Originator License 230411.

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Getting ready to sell? Simple projects to increase your homes value.

2011-04-20T06:17:00.001-07:00

Russ Boyd's videos syndicated by

When I'm discussing listing a clients home for sale I always suggest they spend some time on Sunday looking at open houses available in their neighborhood. Not only does this help them see what other homes their home will be competing with, it also gives them first hand sense of "first impressions".

According to the results of a recent survey of hundreds of real estate professionals by HomeGain, the top six are listed below. These six do-it-yourself projects–all under $1,000– include the estimated increase to the home’s price at resale for each project.

1. Cleaning and decluttering: Remove any personal items, unclutter countertops, organize closets and shelves, and make the home sparkling clean.

Cost: $290

Estimated return: $1,990

2. Light and bright: Clean all windows inside and out, replace old curtains, update lighting fixtures, and remove anything that blocks light from the windows.

Cost: $375 cost

Estimated return: $1,550

3. Staging: Rearrange furniture, bring in new accessories and furnishings to enhance rooms, including artwork and playing soft music in the background.

Cost: $550 cost

Estimated return: $2,194

4. Landscaping: Punch up the home’s curb appeal in the front and backyards by adding bark mulch, bushes and flowers, and ensuring current plants and grass are well-cared for and manicured.

Cost: $540

Estimated return: $1,932

5. Repair electrical or plumbing: Repair any leaks under the bathroom or kitchen sinks, remove any mildew stains, and ensure all plumbing is in good working condition. Update the home’s electrical with new wiring for modern appliances, fix any lights or outlets that don’t work, and replace old plug points with new safety fixtures.

Cost: $535

Estimated return: $1,505

6. Replace or shampoo dirty carpets: Steam-clean carpets, replace any worn carpets, and repair any floor creaks.

Cost: $647

Estimated return: $1,739

I’m always available to answer your questions or discuss your concerns. Just text, call (650 325 7877) or email me for a prompt response. If you are in the San Francisco Bay Area, I invite you to take a look at our Resource Center, www.AboutBayAreaHomes.com. There you will find links for active home listings, home loan information, market activity reports ,home seller strategies, staging and decorating, a suite of 19 calculators, plus my book, “Let’s Make a Deal, The Insiders Guide to Buying and Selling Real Estate” and more.

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A Graph is worth 1000 words

2011-03-18T13:16:00.001-07:00

A Picture Graph is Worth a 1000 Words

This is dedicated to those of you that enjoy seeing more visuals and less verbal explanation. I came across these charts related to current real estate and mortgage conditions. A brief explanation and links to each chart are provided below:

Current Market Rates

By ft Editorial Staff • Mar 17th, 2011 • Category: Charts

91-Day Treasury Bill – Average Auction Rate Chart updated 3/17/11 Week Ending 3/18/11 0.09% Month Ago 2/18/11 0.13% Year Ago 3/17/10 0.17 This rate determines the minimum interest rate the seller must impute in a delayed §1031 transaction and report when not receiving interest on §1031 monies held by a facilitator/accomodator and sets the amount [...]

Boomers retire, and California trembles

By Bradley Markano • Mar 13th, 2011 • Category: Charts, Journal Articles, March 2011 Journal

The Baby Boomer generation will soon begin retiring en masse, bringing about a radical change in California real estate transactions. This article explores the repercussions of that great demographic shift.

Home sales volume and price peaks

By Bradley Markano • Mar 10th, 2011 • Category: Charts

This article looks at home sales volume through and beyond the current recession.

Reeling from California unemployment

By Bradley Markano • Mar 6th, 2011 • Category: Charts, Journal Articles

Chart last updated 3/6/11 January 2011 December 2010 January 2010 CA Unemployment Rate 12.7% 12.3% 13% Number Unemployed 2,348,700 2,226,800 2,240,000 LFP Rate 64.6% 63.8% 63.8% Data courtesy of California Employment Development Department For more employment information, see first tuesday’s Market Chart, Jobs Move Real Estate. The most recent peak month for unemployment was January, [...]

Jobs Move Real Estate

By Bradley Markano • Mar 6th, 2011 • Category: Charts, Journal Articles

Updated 3/6/2011. There is a 1-2 month reporting delay for all data. The past and future of jobs in California: the number of people employed: Chart last updated 3/6/11 January 2011 13,815,700 December 2010 14,078,100 January 2010 13,686,400 Current, detailed employment numbers for California’s biggest counties: Chart last updated 3/6/11 January 2011 December 2010 January [...]

California Tiered Home Pricing

By Bradley Markano • Mar 1st, 2011 • Category: Charts

Charts are updated monthly. There is a two-month lag in reported data. Chart last updated 3/1/11 Chart last updated 3/1/11 December 2010 November 2010 December 2009 Low Tier 164 163 158 Mid Tier 158 160 162 High Tier 157 158 155 Chart last updated 3/1/11 Chart last updated 3/1/11 December 2010 November 2010 December 2009 [...]

CA single- and multi-family housing starts

By Bradley Markano • Feb 27th, 2011 • Category: California Construction, Charts

FOR THE MONTH OF January 2011 SFR and Multi-Family Residential Construction Chart last updated 2/27/2011 Chart last updated 2/27/2011 Data courtesy of Construction Industry Research Board *Forecasts are made by first tuesday in January and adjusted in July based on current new homes sales trends, actual construction starts and government measures taken in reaction to [...]

Using the yield spread to forecast recessions and recoveries

By ft Editorial Staff • Feb 14th, 2011 • Category: Charts, December 2010 Journal

This article presents an analysis of the yield spread as a tool for brokers and their agents to use in forecasting future economic conditions facing the real estate market in 2011.

Rentals: The Future of Real Estate in CA?

By Bradley Markano • Feb 14th, 2011 • Category: Charts, July 2010 Journal

This article discusses the market factors influencing the decision to rent or buy in the wake of the Great Recession, and forecasts the future of the rental housing market.

Newly Licensed Sales and Broker Population

By Bradley Markano • Feb 7th, 2011 • Category: Charts

Chart last updated 2/7/11 4Q 2010 3Q 2010 4Q 2009 Agent Licenses 3,172 3,486 3,573 Broker Licenses 1,646 1,634 1,797 When you compare the number of newly-licensed real estate brokers to the number of newly-licensed agents, the data show that for every two newly-licensed sales agents there will be approximately one newly-licensed broker. Newly licensed [...]

Now, our clients never leave our side, no matter what, and it’s really saving critical moments if not days in the loan and real estate process. Believe me it does streamline the process for everyone.

I’ve always taken my business seriously but now I take it with me as well.

I’m always available to answer your questions or discuss your concerns. Just text, call (650 325 7877) or email me for a prompt response. If you are in the San Francisco Bay Area, I invite you to take a look at our Resource Center, www.AboutBayAreaHomes.com. There you will find links for active home listings, home loan information, market activity reports ,home seller strategies, staging and decorating, a suite of 19 calculators, plus my book, “Let’s Make a Deal, The Insiders Guide to Buying and Selling Real Estate” and more.

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Some Good News for Bay Area Home Sales

2011-02-25T11:06:00.001-08:00

Russ Boyd's videos syndicated by

One of the stories that found its way to the headlines recently was that the number of home sales may have been overstated for the past few years by the National Association of Realtors. As a Bay Area resident and homeowner, I’m not so sure that is headline worthy news.

As far as I’m concerned, the more important story was that Bay Area home sales were up in January compared to the same month a year ago. DataQuick, the real estate monitoring service reported that 4,966 homes sold in January 2011, which was lower than December numbers but higher than January last year.

What we do know is that January and February are typically slow months for housing. DataQuick pointed out that this makes it difficult to use these months as trend predictors. But, however you read the numbers, a year-over-year increase is a good thing.

Adding a local flavor, a home in our neighborhood just sold in less than two weeks with multiple offers.

What else is new in the Bay Area as look at the numbers for January 2011?

The median price for new and resale houses and condos decreased to $338,000 in January from $350,000 a year ago.
Higher-cost homes are still being influenced by the affects of the credit crisis, which made adjustable-rate mortgages and "jumbo" loans more difficult to get. Jumbo loans accounted for 60% of the Bay Area home loan market more than three years ago, and accounted for only 27.1% of the market in January of this year.
Foreclosure activity remains high, but is below the peak levels reached two years ago, the report said.

I didn’t say we were heading for the stars, but, all in all, not a bad beginning for 2011, especially considering the past three years.

As the months of 2011 roll by, remember the importance of discovering the data in your local market. While what is talked about at the national level in real estate may be interesting, it very often has nothing to do with the market where you live.

I’ve always taken my business seriously but now I take it with me as well.

I’m always available to answer your questions or discuss your concerns. Just text, call (650 325 7877) or email me for a prompt response. If you are in the San Francisco Bay Area, I invite you to take a look at our Resource Center, www.AboutBayAreaHomes.com. There you will find links for active home listings, home loan information, market activity reports ,home seller strategies, staging and decorating, a suite of 19 calculators, plus my book, “Let’s Make a Deal, The Insiders Guide to Buying and Selling Real Estate” and more.

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Cost vs Remodel Report San Francisco Bay Area 2010-2011

2011-02-12T05:35:00.001-08:00

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Every year, Remodeling Magazine publishes the Remodeling Cost vs Value Report. Click to view the 2010-2011 Bay Area Remodeling Cost vs Value Report or see all our reports under Quick Links on our website, www.aboutbayareahomes.com.

The Report reflects an improvement over the previous two years of transition for the remodeling and real estate. It would be easy to think that the costs for remodeling projects would have fallen, but that turns out to not be the case. One consistency for the past couple of years is that consumers are sticking to projects that are “back to the basics”.

Exterior improvements continue to be more common, primarily becauseexterior improvements contribute to the overall look and feel of a building. In other words, in a competitive market “Curb appeal is king.”

For us living in the San Francisco Bay Area, we continue to benefit from improvements that increase a home’s value above the project’s cost, which is not the case in most of the country. For example, remodeling a bathroom, adding a deck, remodeling a bedroom in the attic, new entry doors, a minor kitchen remodel and window replacements all add to value of a Bay Area Home above the cost.

For now, “Curb appeal is king” and “Bling is not the thing.” The five-year Cost vs. Value trend toward smaller, low-maintenance projects and an emphasis on essentials over extras continues to influence homeowners remodeling plans.

With the complexity in today’s mortgage and real estate market you will benefit from the advice and guidance of an experienced and knowledgeable mortgage and real estate professional. I’m always available to answer your questions or discuss your concerns. Just text, call (650 325 7877) or email me for a prompt response.

If you are in the San Francisco Bay Area, I invite you to take a look at our Resource Center, www.AboutBayAreaHomes.com. There you will find links for active home listings, including bank owned and short sales, home loan information, market activity reports, home seller strategies, staging and decorating, a suite of 19 calculators, plus my book, “Let’s Make a Deal, The Insiders Guide to Buying and Selling Real Estate” and more.

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Free e-Waste Recycling event at Intero Real Estate San Mateo January 29, 2011

2011-01-23T10:50:00.001-08:00

Free e-Waste Recycling event at Intero Real Estate San Mateo

Did you know 2.5 million tons of e-Waste is created each year? 82% of it ends up in landfills unrecycled. Help us change this! Tell your family, friends, and co-workers to bring their e-Waste to Intero Real Estate on:

Saturday, January 29, 2011 9:00 am - 3:00 pm
1100 Park Place, San Mateo
(in the parking lot just east of Whole Foods)
We take all computer & electronic equipment. Visit www.EarthCareRecycling.com for a complete list of acceptable items.

All proceeds will benefit the Intero Foundation, funding grants to children’s charities in our communities.
This is the time to clear out such things as old cell phones, used lap top batteries, computer monitors and such
Never, never throw them away in the trash or recycle bin.
eWaste accumulates very slowly and so it just gets put in some obscure drawer or placed out of the way in the garage. For instance here in my office I have an old phone and charger, a broken video camera and a laptop battery that gave up long ago.

We all know recycling is the right thing to do. Now you have the opportunity to recycle electronic waste and help children. The Intero Foundation has partnered with Earth Care Recycling and is accepting Electronic Waste for recycling at the Intero Real Estate Services office parking lot in San Mateo on Saturday, January 29th, 2011. That’s right, just bring those old cell phones, computer monitors, keyboards and all the other electronic stuff you’ve been meaning to recycle to the Intero Real Estate Services office parking lot at 1100 Park Place, San Mateo on Saturday, January 29th, 2011 and we’ll take care of the rest.

Now here’s the really good part….EarthCare Recycling will donate 50% of the proceeds from all the recycled eWaste to the Intero Foundation. The Intero Foundation provides grants to local non-profits that are dedicated to helping children in need and children in crisis. The Foundation has funded grants totaling more that $170,000 in 2010.
So remember, the more electronic waste you can bring by the Intero San Mateo office on Saturday, January 29th the more the Intero Foundation can grant to non-profits that assist children in need and in crisis. If you need assistance or have questions, I can be reached at 650 325 7877 or RBoyd@InteroRealEstate.com.

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A New Year and NEW RULES for Mortgage Loans

2011-01-07T10:53:00.001-08:00

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The NEW RULES of Mortgage Loans
and what it means to you

The role of your mortgage lender is truly heightened as a result of all the new regulations you’ve been reading about over the past year. More than ever, you need to make the right decision on what lender you’re going to use the first time.

There was a time in the not so distant past that you could start the loan process with one lender, and take it to a new lender if you were displeased with the first one. It could be that they were moving too slowly, or perhaps their appraiser came in much, much lower than you'd expected. Maybe you were able to find a better rate.

Well the world has changed and now that’s completely a thing of the past. The sad truth for the consumer is that portability of the single-family loan is dead and Congress made it so.

Let’s say that you are really displeased with a broker or lender for whatever reason. Well sadly, you are now forced to stick with them, because to use another lender means starting all over. And let me tell you from experience, you don’t want to have to start over!

There would be new costs for a credit report, new disclosures, and a whole new appraisal, and all this is not only costly, but time consuming as well. And to make matters worse, rates are trending up, so any delay in the process can make a big difference in the cost to you in interest.

While we could debate endlessly whether this serves or hurts the consumer, these are the new regulations and laws coming out of Congress. They are being implemented by the regulators and nothing we say is going to change them.

Whether you are a buyer needing a new purchase loan or a homeowner looking to refinance, the first thing to do is you must get serious about lender selection.

For buyers being represented by a real estate agent, you must be sure that your agent can assist you to make a wise choice. Any broker or lender referred by your agent should have a proven track record based on past experiences with other clients, plus solid references, and the ability to get it right the first time.

Real estate agents will now have to become increasingly knowledgeable about new regulations that could impact the relationship between Realtor, borrower and mortgage lender, and your Realtor must truly be careful in choosing which lenders to work with.

Finding a lender with the lowest rates can no longer be the primary criteria. It is now crucial to find a mortgage broker or lender who fully understands the new regulatory environment, one who knows how to navigate all the new laws and knows how to close loans without stumbling over the new restrictions.

With the complexity in today’s mortgage and real estate market you will benefit from the advice and guidance of an experienced and knowledgeable mortgage and real estate professional. I’m always available to answer your questions or discuss your concerns. Just text, call (650 325 7877) or email me for a prompt response.

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When is a Foreclosure the Best Deal

2010-12-16T07:10:00.001-08:00

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When is a Foreclosure the Best Deal?

A common question I get, especially from first time homebuyers, is “is now a good time to buy”. This is followed by questions about buying a foreclosure because they are perceived as being a “good deal”. Typically the questions are about real estate prices having hit bottom and the natural human desire to get a “good deal”.

I respond by saying that a really “good deal” is buying a home that is well suited for your needs and well priced. I also submit that the property that best fits that description may or may not be a home that was foreclosed on.

Sellers of individually owned homes that are currently on the market are largely aware that they are in competition with many distressed (bank-owned and short-sale) properties.

As a result, there are many bargains available on non-foreclosures, which are very often in superior condition to foreclosed homes. As well, individual sellers tend to be vastly more negotiable on terms like repairs, included personal property, etc., when compared to banks.

Now, let's turn to the question of when the best time to buy is or will be. Overall, the best time to buy is the time that makes the most sense for your family's life, plans and vision for the future. This is also a very frequently asked question, though, especially from those buyers and investors who are fixated on market timing, so let's talk about whether the market has hit bottom. The truth is that it is impossible to know with certainty whether the market is at bottom.

And frankly, trying to time the bottom is a fool's errand on at least two levels. The first? It's impossible. The second: The desire to time the bottom arises out of a logic flaw called “myopic loss aversion”, which causes consumers to be more afraid of losing money than they are excited about gaining a similar amount of money, or equity.

The fact is this: We all know that prices and mortgage interest rates are very low compared to historic norms. So what is worse, holding off from buying because they think losing even a dollar's worth of equity would be painful; or, in that desperate attempt to avoid a post-purchase loss in value, waiting so long that prices will go up and experiencing the opportunity cost of lost appreciation they might have realized had they bought a bit sooner.

Studies have long shown the human tendency when trying to time the bottom of the market is to wait too long. When prices hit bottom, everyone wants to buy, sending prices right back up. What’s stopping that today? The dual problems of unemployment and conservative mortgage lending guidelines.

And therein lies the opportunity. This might be a great time for your family to buy, if it's a good time in the context of your lives, and if you are comfortable making the commitment to owning a home for a good five to seven years, plus or minus a bit.

With a longer-term view, you can feel much more comfortable that you'll come out ahead on the purchase and don't have to be fixated on whether the value of the home rises or falls by a percent here or there in the very short term. But to do that, you have to let go of the all too currently common fixation on getting the absolute most for the absolute least, and decide to be OK with buying very, very low.

With the complexity in today’s mortgage and real estate market you will benefit from the advice and guidance of an experienced and knowledgeable mortgage and real estate professional. I’m always available to answer your questions or discuss your concerns. Just text, call (650 325 7877) or email me for a prompt response.

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2010 is Almost History-What’s in Store for Real Estate in the New Year?

2010-11-22T14:18:00.001-08:00

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What’s in Store for Real Estate in the New Year?

As we approach the end of 2010, I am frequently asked about what lies ahead for real estate in the New Year. Will the New Year bring positive upward motion for housing both in our state and local San Francisco Bay Area? Are we going to see some job growth, which will help to fuel growth in a somewhat anemic housing recovery? The way I see it, is it's going to be a slow start in 2011 – let’s call it a year of transition. We may not always feel like we're making progress because of the slow speed.

Despite how slow or fast we're moving, it’s clear the bottom is behind us and we are setting our sights on upward movement in 2011.

As for foreclosures, they’ll be with us for some time, but the market will continue to work through them.

In the Bay Area, there are a lot of developments that are optimistic about 2011. Facebook game developer Zynga recently signed the largest lease for San Francisco office space in five years. Facebook itself recently announced a joint $250 million fund for social application developments. Stocks have been surging at Oracle, eBay, Google, Intel and other Silicon Valley tech powerhouses. And while sales volume has lagged, home prices in the Bay Area rose for 13 straight months through September, according to MDA Dataquick.

These are all very positive signs that the Bay Area economy is already looking up, though we need to be mindful that slow and steady progress is what 2011 will be about.

What to expect?

For Home buyers: Continue to expect the loan process to be long and lending guidelines to be conservative. You will need cash, a solid credit history, appropriate salary and job security. Buyers won't have the lowest of the low interest rates forever so expect the spring buying season to come on strong. Already surprising some buyers is buyer competition and multiple offers.
Home sellers: Studies by the California Association of Realtors have focused on the tale of segmented housing markets in our state: the low end, mid range and high end. How sellers come out in 2011 really depends on which market segment they are in.

The low end category, sales of properties valued at less than $500,000, is largely made up of distressed properties and banks are expected to release more inventory next year. This means sellers of properties in this price range will continue to have a lot of competing inventory.

Meanwhile, sales at the mid range (and this is the “sweet spot”) – between $500,000 and $1,000,000– have seen and will continue to see improvement do to the consistent flow of available financing. Although underwriting is conservative, the Bay Area benefits by having the conforming loan size set at the maximum of $729,750.

The sales of high end properties begin to fade as the price moves above $1million. The good news is that “jumbo” financing is more available now than it has been and the spread between high balance conforming ($729,750 in the Bay Area) and “jumbos” has narrowed this past year. For buyers in this category a minimum of 20% down is needed and to qualify for the best rate up to six months “reserves” are required.

The prognosis? It won't be the best year to be a home seller in 2011, but be patient as there are buyers on the sidelines waiting to jump in.

Homeowners: As the economy continues its slow improvement, expect to see some homeowners walking away from a mortgage, but hopefully some of the positive economic news will create a much needed sense of security for these folks.

The transition we need: According to Intero Real Estate Services CEO, Gino Blefari, “we have a lot going for us in 2011. Our state's sheer size of nearly 37 million residents, expansion of the exporting and technology sectors, and an expected rise in personal incomes are all factors we have working for us. We are still the eighth largest economy in the world with a gross domestic product of some $1.8 trillion.”

Gino went on to say, “It takes a lot to keep us down, and it will take a lot to pull us back to normal. 2011 won't be remembered as a breakout year of growth, but it will be the year we turned the economy back around – the year we needed to transition from decline to moving up.”

As a real estate and mortgage professional, I take my responsibility to my clients very seriously. I am always available to answer your questions or discuss your concerns.

With the complexity in today’s mortgage and real estate market you will benefit from the advice and guidance of an experienced and knowledgeable mortgage and real estate professional. I’m always available to answer your questions or discuss your concerns. Just text, call (650 325 7877) or email me for a prompt response.

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Eat at Armadillo Willys Give Hope to a Child

2010-10-26T06:02:00.001-07:00

Videos by Russ Boyd can be seen at Vodpod

It's a winning combination when two organizations come together and make something happen that benfits children in need. Such an event is taking place on Wednesday, October 27th, 2010. Dine at Armadillo Willy’s on Wednesday, October 27th, 2010 and Armadillo Willy's will donate 20% of your check amount to The Intero Foundation. That’s right, 20% of your bill will be donated to the Intero Foundation, which in turn funds grants to children’s charities in our communities. All you have to do is invite your family, friends and co-wokers to visit one of the participating Armadillo Willy’s resturants, located in San Mateo, Los Altos, Cuperino and San Jose, between 5PM and 9PM on October 27th. Just make sure the cashier or server knows that you are supporting The Intero Foundation…and enjoy a great Texas Barbeque dinner!

The Mission of Intero Foundation is to positively impact the growth and well being of children in the communities in which we work by supporting organizations focused on assisting in their education and personal development. Thanks to the generous support of Intero’s agents, employees and partners like Armadillo Willy’s, the Intero Foundation has funded grant requests in excess of $1.5 Million. Over $200,000 was provided to qualified non profits in 2009. The list spans over 70 charities dedicated to assisting in crisis and at risk children in the communities we serve. Complete information about the Intero Foundation can be found at www.InteroFoundation.org.

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They have served clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240. National Mortgage License Registry 230411.

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$729,750 Conforming “High Balance” Loan Limit to remain through September 2011

2010-10-15T07:23:00.001-07:00

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$729,750 Conforming “High Balance” Loan Limit to remain through September 2011

You may have not known, however the high balance conforming loan limit of $729,750 was set to expire on 12/31/2010 and revert to $625,500. Most Bay Area Counties qualify for the maximum limit and if there is one thing that the home market needs consistently available and affordable credit. And while on the subject of affordable, I have been very active helping clients lower their rates. For example, last Friday I was able to lock a high balance loan for a client at 4.375% at no costs to the borrower. I quoted another client at 3.75% for a 15 year fixed conforming loan. The rates we are seeing today are surely at what can be consdiered "once in a lifetime" and have provided a welcome boost to the momentum in the housing recovery.

I am always available to discuss the opportunities offered by today's rates. Just call, text

or email me for a prompt response.

Rates as of 10-14-2010

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More Doom and Gloom-Is the “housing slump” as bad as some headlines say?

2010-09-20T05:18:00.001-07:00

In recent weeks, housing news has again turned relentlessly grim. It all started with the end of the Federal Tax Credit. Now it didn’t come as some great surprise to me that consumers pulled back once the tax credit expired. With the need for urgency removed, I fully expected a lull in homebuyer activity and sure enough that is what happened.

Big media have pounded hard on the “slow down” theme, driving it home until most people are scared half to death.

Where are we, really?

Californians might be surprised. It's a little better than you might think, especially if you live in the San Francisco Bay Area.

I take’s a job to make a mortgage payment and the Bay Area has some of the lowest employment rates in the state. Marin County has the lowest unemployment in the state, followed by San Mateo County, San Francisco is 6th lowest and Santa Clara, Alameda and Contra Costa Counties are well below the state unemployment rate of 12.8%.

California housing inventory stood at 5.8 months in July and nationally the supply of homes on the market was 12.5 months.

As of July 2010 San Mateo County housing inventory was 3.2 months, while San Francisco had a 5.8 months supply of homes for sale. The inventory in Santa Clara County stood at months 2.7 months, Alameda County was 2.7 and Contra Costa County stood at 2.55 months. Click the links for the full Bay Area Report. Compared with the National and State Statistics, the bay area is recovering much quicker than the media is suggesting. With the coplexity of today's real estate and mrotgage markets you will benefit from the advice and guidance of an experianced and knowledgeable professional. Just text, call or email me for a prompt response.

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New Mortgage Regulations add More Time and Money to Consumers Costs

2010-08-28T17:10:00.001-07:00

Mortgage Rates are Way Down While Loan costs have Risen Dramatically

As I’ve reported over the past year there have been untold changes to the way mortgage loans are being regulated and underwritten. While all the new regulations are in place to provide more transparency and consumer protections, unfortunately, the result is increased time and costs to the consumer. While I’m sure this is not the result the regulators were seeking, the proof is now available with the release of Bankrate.com’s annual mortgage fee survey.

First, the good news…California is not the most expensive when it comes to mortgage fees and costs. That dubious honor goes to New York. In fact, California is the fifth most expensive state in the survey results. All in all, according to Bankrate.com’s survey, which used a $200,000 loan model, costs increased by an incredible 36% year over year.

And I can understand why. In my business, I can see that appraisal costs have increased by some 25% and the increase is not going to the appraiser that is doing the work, as a matter of fact, appraisers are making less while the increase is going to the “appraisal management companies” or AMC’s that are mandated by the appraisal regulations implemented known as HVCC. Loan processing has increased by about 20%, simply because of the increased underwriting appetite for every piece of documentation available and the more time consuming preparation of disclosures. Add what is known as Fannie Mae’s “Loan Quality Initiative” which dictates that every single loan go through a detailed pre and post funding quality assurance process that begins when a file is received in underwriting.

As a loan originator, I am not only required to be licensed by the State of California, I am now subject to the rules under the National Mortgage Loan Registry. This year, I have had to pass both a state and a national exam, be fingerprinted, have a background check done by the FBI and complete affidavits that required in depth personal and business information. All of this cost me about $1500 out of pocket.

As a real estate and mortgage professional, I take my responsibility to my clients very seriously. I am always available to answer your questions or discuss your concerns.

With the complexity in today’s mortgage and real estate market you will benefit from the advice and guidance of an experienced and knowledgeable mortgage and real estate professional. I’m always available to answer your questions or discuss your concerns. Just text, call (650 325 7877) or email me for a prompt response.

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Kids in Need Benefit as eWaste Recycling Event Huge Success at Intero San Mateo

2010-08-18T13:47:00.001-07:00

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The eWaste recycle event at Intero Real Estate office in San Mateo was a huge success. All week long the people came to the office with old televisions, unused cell phones, computer monitors, keyboards and all types electronic stuff that no longer worked or was being used. The Intero Foundation partnered with EarthCare Recycling by offering an eWaste Collection Center at Intero Real Estate San Mateo the week of August 9, 2010.

After a week of collecting and accepting eWaste, EarthCare Recycling showed up with two trucks to collect the recyclables. EarthCare Recycling will donate 50% of the proceeds from all the recycled EWaste to the Intero Foundation. The Intero Foundation provides grants to local non profits that are dedicated to helping children in need and children in crisis. The Foundation has funded grants totaling more than $50,000 so far this year and over $1.5 million since its inception.

Thanks to the Intero agents, office staff and all those that took the time to bring unused electronic equipment to the office. While we don’t have the final figures this was truly a win - win for all.

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Do Low Rates Matter When Consumers Fewer Consumers Qualify?

2010-08-10T14:15:00.001-07:00

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According to figures provided by FICO Inc., as of April 1010, 25% of consumers (about 43 million people) now have a credit score of 599 or below, making them big risks for lenders. This number is up from the historical level of 15%. Interestingly, the number of consumers who have a top score of 800 or above has increased in recent years. Experts say this is mostly attributed to them cutting spending and paying down debt. Obviously, consumers on the lowest end of the scale are less likely to try to borrow to buy a house or qualify to refinance

You’ve probably never seen anything like the table below. It is Fannie Mae's Risk Based Loan Level Price Adjustments. These “price adjustments” are subtracted from a borrower's loan pricing, which pushes their mortgage rate higher. A borrower with a FICO score of between 680-699 takes a 1.50 point hit on their pricing at an 80% loan to value.

If this fee was paid at closing, on a $200,000 loan, it would cost the borrower an additional $3,000 to close! I don't think we can blame Fannie and Freddie for adjusting their model to risk, but these loan level pricing adjustors will prevent many current homeowners from qualifying for a refinance and make first time buyers hesitate at the additional cost of buying. Of course, some will look to FHA, which has less restrictive underwriting requirements and far fewer pricing adjustments, for financing.

Now you can see that there is a direct cost factor between the cost of a mortgage loan and your credit score. The good news is that time is on your side if you are trying to rebuild your score. Your score rises the longer you go through time maintaining prompt payment on your outstanding credit. You are entitled to one free credit report a year, just visit www.annualcreditreport.com and get your free copy. There are plenty of websites out there that claim to give you a free report but unless it’s www.annualcreditreport.com you may be required to buy a product or subscribe to a service.

With the complexity in today’s real estate market you will benefit from the advice and guidance of an experienced and knowledgeable real estate professional. I’m always available to answer your questions or discuss your concerns. Just text, call (650 325 7877) or email me for a prompt response.

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Free EWaste Recycling at Intero San Mateo Benefits Childrens Foundation

2010-07-31T15:24:00.001-07:00

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To tell the truth, electronic waste isn’t something that I usually think about. Of course, I know such things as old cell phones, used lap top batteries, computer monitors and such don’t get thrown away in the trash or recycle bin. I’v e also seen signs around town that let me know I can recycle electronic waste at some location or another at some time in the future. The problem is that it doesn’t accumulate very quickly and so it just gets put in some obscure drawer or placed out of the way in the garage.

For instance here in my office I have an old phone and charger, a broker video recorder and laptop battery that long ago gave up. Without even thinking about it, I know we have two computer monitors, one printer, a broker dvd player and several what I call “spare” cell phones at home.

We all know recycling is the right thing to do. Now what if you had an opportunity to recycle electronic waste and help children? Now that would be a really good deal. This is your opportunity to recycle and help children. The Intero Foundation has partnered with EarthCare Recycling and is accepting Electronic Waste for recycling here at the Intero Real Estate office in San Mateo during the week of August 9, 2010. That’s right, just bring those old cell phones, computer monitors, keyboards and all the other electronic stuff you’ve been meaning to recycle to the Intero Real Estate office at 1100 Park Place, Suite 100, San Mateo between August 9, 2010 and August 13, 2010 and we’ll take care of the rest.

Now here’s the really good part….EarthCare Recycling will donate 50% of the proceeds from all the recycled EWaste to the Intero Foundation. The Intero Foundation provides grants to local non profits that are dedicated to helping children in need and children in crisis. The Foundation has funded grants totaling more that $50,000 so far this year. So remember, the more electronic waste you can bring by our office between August 9, 2010 and August 13, 2010 the more the Intero Foundation can grant to non profits that assist children in need and in crisis.

If you need assistance or have questions, I can be reached at 650 325 7877 or Russ@BrokerRuss.com.

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With Rates at 50 Year Low, how are Homebuyers Reacting?

2010-07-03T08:08:00.001-07:00

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According to Freddie Mac, 30 year fixed mortgage rates hit a 50 year low last week, averaging 4.69%. Already low rates have been made lower since the debt crisis in Europe became the top news.

Take a look at this graph , which shows fixed rates back to 1963, and you can see that rates have generally trended down since the mid 1980’s. So with low rates and prices at about 2003 levels the question is “how are homebuyers reacting”?

As shown here from the Campbell Inside Mortgage Finance Monthl Survey , first time homebuyer traffic dropped in May after peaking in April. Of course, the end of the tax credit on April 30th played into this drop as well. However, thanks to its own tax break, California fared better than the country overall in terms of first-time homebuyer activity, the survey found. The California index for first-time homebuyer traffic managed to stay relatively flat in May at 49.4, California enacted its own $10,000 credit for first-time homebuyers on May 1, the day after expiration of the federal tax credit.

As a percentage, investor buyers seem to be holding steady, while current homeowner buyers have increased their activity at the same time the percentage of first time home buyers is dropping.

The California Association of Realtors (C.A.R.) Affordability Index reveals that the opportunity of homeownership is available to 66% of Californians.

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First there was Shadow Inventory, now there is Sidelined Sellers Inventory

2010-06-17T08:11:00.000-07:00

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By now you've heard the term "shadow inventory," which refers to foreclosed or soon-to-be foreclosed houses that lenders have yet to put on the market for resale. I don’t know who coins these phrases but get ready for yet another form of inventory. This one is labeled "sidelined sellers" inventory by the folks at Zillow. The term is being used to describe homeowners who would like to sell for one reason or another but haven't even bothered to place their houses on the market.
According to Zillow economist Stan Humphries "sidelined sellers" is one reason he believes housing prices will remain relatively flat over the next couple of years. Indeed, he recently told the National Association of Real Estate Editors' that appreciation will be "very anemic" in the near term.
Based on the Seattle firm's surveys, estimates are that some 5.3 million "highly motivated" owners are just itching to sell once they have confidence of a rebound.
This information is all very interesting, but of course there's no way a “survey” can quantify exactly how many homeowners fit the definition of a "sidelined" seller. For me and the clients I serve I want the facts and this is what I can tell you about real estate inventory in the San Francisco Bay Area.
In May 2010 San Mateo County for sale housing inventory was 2.6 months, in Santa Clara County unsold inventory was less than two months, Alameda and Contra Costa counties stood at slightly over two months and in San Francisco there is three months inventory. Experts seem to agree that six months inventory is “normal”. As for the “prices remaining flat” being predicted by Zillow, they should review the facts, as can be seen at www.bayarreamarketmetrics.com, the median price is higher year over year in every bay area county
What does this “low inventory” convert to for today’s buyers in the Bay Area. Nice, well priced homes sell and multiple offers are common. Affordability is at a high point and rates are hovering at historic lows. Buyers need to be serious about the process. First by getting pre qualified and then be willing to move quickly when they find a house they want to call home.
With the complexity in today’s real estate market you will benefit from the advice and guidance of an experienced and knowledgeable real estate professional. I’m always available to answer your questions or discuss your concerns. Just text, call (650 325 7877) or email me for a prompt response.

First-Time Homebuyers Share of Purchases Drops in April

2010-06-10T05:42:00.001-07:00

First-time homebuyers have been very active in the real estate market for the past two years. First-time buyers started to exit the housing market in April, according to the latest Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions.

The closely-watched survey found that 43.4% of April’s home purchase transactions were attributable to first-time homebuyers, a significant drop from March’s figure of a huge 48.2%.

For the past several months of, first-time homebuyer participation had been growing at a rapid clip; this month’s data reversal in the trend. Homebuyers have until June 30 to close transactions and qualify for a tax credit of up to $8,000 for first-time buyers and $6,500 for current homeowners.

Current homeowners made up the slack from first-time homebuyers, expanding their participation from 33.5% in March to 38.7% in April. Since most homeowners must sell their home when they buy another, this shift could mean that current homeowners are becoming more confident in the real estate market. This willingness to become more active will lead to a more balanced inventory as current homeowners begin to list their homes. If this trend continues I expect that the median price will increase as we move into the summer months.

As can be seen in this graph from a recent Case-Shiller report, after a near-disastrous 2009, the luxury market appears to be making a comeback, driven by growing buyer confidence, improved financing conditions and more-realistic seller pricing. According to a report from CoreLogic, attractively priced homes in some of the nation's most coveted neighborhoods are selling, sometimes fast and sometimes with multiple offers. Nationwide, sales of homes selling for $2 million to $5 million in the first quarter were up 32% from a year before.

Whats this? Foreclosure Cancellations on the Rise

2010-05-31T08:08:00.000-07:00

ForeclosureRadar (www.foreclosureradar.com) issued its monthly California Foreclosure Report for April 2010. According to the report, foreclosure filings were down in April for the first time since the beginning of the year. The inventory of properties in pre-foreclosure or scheduled for sale dipped slightly as well. Interestingly, foreclosure cancellations continue to climb, up more than 32 percent from the beginning of the year. Also, the number of properties sold to 3rd parties at trustee sales continues to climb, helped by higher discounts offered by lenders at the trustee sale..

The report concluded that the steady rise in foreclosure cancellations is being fueled by loan modifications and short sales are gaining traction.

This graph depicts Notice of Default filings which are the first step in the foreclosure process. Notice of Trustee Sale filings set the date and time of auction and serve as the homeowner’s final notice before sale. As you can see, foreclosure filings have held steady since October 2009.

Here we see the Pre-foreclosure inventory (green) and the Scheduled for Sale inventory (blue) dropping slightly after months of holding steady. The Bank Owned (REO) inventory has dropped steadily since October 2008.

After the filing of a Notice of Trustee Sale, there are only three possible outcomes.

First, the sale can be cancelled for reasons that include a successful loan modification or short sale. Second, if the property is taken to sale, the Bank will place the opening bid. If a 3rd party, typically an investor, bids more than the bank’s opening bid, the property will be Sold to 3rd Party; or third, it will go back to bank and become part of that bank’s REO inventory. Foreclosures sold to 3rd parties and foreclosure cancellations have increased while those reverting to bank ownership are dropping.

Despite the Lowest Rates of the Decade New Purchase Loans at 13 Year Low

2010-05-25T06:44:00.001-07:00

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The Weekly Mortgage Applications Survey isn’t usually a report seen in the media. The report covers loan applications for refinance and purchase loans updated weekly by the Mortgage Bankers Association. The Purchase Loan Index observed in last weeks survey is the lowest since May of 1997 coincides with what has been called the “tax credit hangover”.

With the recent expiration of the Federal Tax Credit there has been a noticeable drop off in real estate sales activity. The conventional wisdom is that buyers that could get in contract by April 30^th did, so as to qualify for the tax credit. However that ramp up in April came at the expense of May housing sales.

This graph shows exactly what I mean. According to the Mortgage Bankers Association weekly report, purchase applications plummeted to the lowest Purchase Index observed in the survey since May of 1997. The data continue to suggest that the tax credit pulled sales into April at the expense of the remainder of the spring buying season. In fact, this drop occurred even as rates on 30-year fixed-rate mortgages continued to fall to near their lowest level this decade. Refinance borrowers, however, did react to these lower rates, with refi applications up almost 15 percent, hitting their highest level in nine weeks.

Is this a case of the industry's worst fears might be coming true, or a case of the “tax credit hangover”? I’ve said all along that the housing market recovery is fragile. Let’s give this a few more weeks to see if buyers come back, as I believe they will. After all, affordability is at a high point with low prices and interest rates hovering near the low seen this decade. Even with low inventory there is real opportunity for those that want to be homeowners.

If there ever was a time that you will benefit from the advice and guidance of a qualified real estate and mortgage agent, this is it. I am always available to discuss your concerns and answer your questions. Just text, call (650 325 7877)or email me for a prompt response.

FHA Raises Fees and Tighten Guidelines Mortgage Insurers Return to Market

2010-05-17T17:29:00.001-07:00

It’s been quite a while since I’ve seen any news updates about private mortgage companies. Turns out that something very interesting is taking place behind the scenes. You may have heard that the premiums that FHA charges borrowers has increased. Until recently, FHA has been the only viable lender for buyers putting less than 20% down. As you can imagine, private mortgage insurers were burned pretty badly burned when home prices declined and mortgage defaults went up in 2007. Since loans over 80% of value require mortgage insurance, most buyers had to turn to FHA if they were putting less than 20% down.
Seems that “times, they are a changing”, and that’s the good news! At the same time that FHA is tightening its underwriting guidelines and increasing its fees, private mortgage companies are re-entering the market. Without any fanfare, mortgage companies like Genworth and Radian are now willing to insure loans with only 5% down in all markets, including hard hit states like California and Florida. MGIC, the nation’s largest mortgage insurer has even dropped its credit score requirement to 660 for loans with only 5% down. And mortgage insurer PMI just released its Second Quarter 2010 Risk Index, which according to the report, shows fresh evidence of the nation’s recovering housing markets.
We are seeing more evidence that we may have turned the corner in the housing market. If there ever was a time that you will benefit from the advice and guidance of a qualified real estate and mortgage agent, this is it. I am always available to discuss your concerns and answer your questions. Just text, call (650 325 7877)or email me for a prompt response.

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A Winning Combination Brings Hope to Children-The Intero Foundation and Armadillo Willy's

2010-05-08T07:01:00.001-07:00

It's a winning combination when two organizations come together and make something happen that benfits children in need. Such an event is taking place on Tuesday, May 11, 2010. Dine at Armadillo Willy’s on Tuesday May 11, 2010 and Armadillo Willy's will donate 20% of your check amount to The Intero Foundation. That’s right, 20% of your bill will be donated to the Intero Foundation, which in turn funds grants to children’s charities in our communities. All you have to do is invite your family, friends and co-wokers to visit one of the participating Armadillo Willy’s resturants, located in San Mateo, Los Altos, Cuperino, San Jose, So. San Jose and Dublin, between 5PM and 9PM on May 11th. Just make sure the cashier or server knows that you are supporting The Intero Foundation…and enjoy a great Texas Barbeque dinner!
The Mission of Intero Foundation is to positively impact the growth and well being of children in the communities in which we work by supporting organizations focused on assisting in their education and personal development. Thanks to the generous support of Intero’s agents, employees and partners like Armadillo Willy’s, the Intero Foundation has funded grant requests in excess of $1.5 Million. Over $200,000 was provided to qualified non profits in 2009. The list spans over 70 charities dedicated to assisting in crisis and at risk children in the communities we serve. Complete information about the Intero Foundation can be found at www.InteroFoundation.org.
Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They have served clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240.

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Home Prices and Median Continue to Rise in Bay Area

2010-04-27T06:17:00.001-07:00

It’s interesting to see the dramatic change in the housing market year over year. The volume of home sales and median prices continue to rise in the San Francisco Bay Area as the pendulum continues to move toward normal when it comes to what kinds of homes are selling and where. Sales are no longer as concentrated in the lower-cost inland areas, and the percentage of sales that are foreclosed homes continues to drop. In March 2009, half of all existing homes sold were foreclosures. Last month, foreclosure re-sales accounted for 31.7 percent of existing homes sold. While that's a significant decrease, it's still a historically high number.

As reported by DataQuick, a total of 5,053 existing single-family homes changed hands in the Bay Area in March, up 5.1 percent from March 2009. Their median price was $400,000, a 35.6 percent increase from the prior year's $295,000. While the median doesn’t represent the value of the typical house in the Bay Area, it does represent the value of what was selling. March's higher median was also influenced by the fact that sales volume rose the most in affluent counties. For example, The number of existing-home sales was up 55 percent in Marin, 39.5 percent in San Francisco and 31.6% in San Mateo County while the number of sales actually fell in the less expensive counties of Contra Costa, Solano and Sonoma.

As I reported in a previous blog post, "Jumbos Loans-Missing Piece of the Puzzle”,higher-cost sales are still being impacted by the dysfunctional mortgage market in jumbo loans. Historically, sales above $500,000 accounted for about half the sales in the Bay Area home market. Last month they represented 34.6% of homes sold.

On one hand, there is the federal tax credit expiring in a few days and the withdrawal of the Federal Reserve from the mortgage securities market and on the other hand housing inventory remains low, interest rates are well below 6% and the California $10,000 tax credit becomes effective on May 1st.

My advice, now more than ever, you need an experienced and trustworthy loan officer and real estate agent on your side. If you or someone you know is thinking about buying or selling a home, this is valuable information. I am always available to answer your questions or discuss your concerns. Simply text, call (650 325 7877) or email me (russ@brokerruss.com) for a prompt response.

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Are the New Mortgage Disclosures Adding Transparency?

2010-04-19T07:42:00.001-07:00

As someone that has been in the real estate and mortgage business for some 30 years you can well imagine that I’ve seen a few changes. One thing I’ve noticed about business cycles is that there always seems to be plenty of blame to go around when things go wrong. New regulations designed to make sure “that” whatever “that” was) doesn’t ever happen again come out of Washington faster than they can be integrated into business and society.
When the real estate bubble burst in 2007 there was plenty of blame heaped upon lenders and Wall Street. One of the rallying cries from Washington is that the mortgage lending process needed major overhauling so that consumers would no longer be fooled by lenders and mortgage brokers. And disclosures have been around a long time. Did lenders and Wall Street really need a “financial crisis” to figure out that approving loans without income verification or having no equity or making loans that allow the balance to go up rather than down would dramatically increase lenders risk? Now I want to be clear, I fully support disclosure and anything that helps borrowers compare rates, costs and fully understand the advantages and disadvantages of various types of loans.
Late last year I recall reading stories with headlines like this from the LA Times “Home loans will hold fewer surprises” Consumers win with federal rules that require mortgage lenders to spell out all fees and penalize those who lie. The rules go into effect in January. The first two sentences of the article described what was to come, “Anyone who has purchased or refinanced a few homes has probably learned to dread the closing statement, which all too often included a pile of new or inflated fees that your lender had never before mentioned. Those days are nearly gone forever, thanks to new government rules on real estate settlement that go into effect in January.”

Although I’m sure it has happened, I’ve been in the business a long time and quite frankly never “surprised” any client of mine with “new or inflated” fees, nor have I ever known anyone that did.
Now let’s fast forward to the present. A myriad of new rules and regulations to make the process more transparent and understandable for you, the consumer, are now in effect. So I hear a collective “sigh of relief”?
Recently I printed a set of disclosures for two clients that are buying a home together. There were 80 pages of documents Yes, that’s right these are the new, consumer friendly loan disclosures. The package for each borrower is some 40 pages. They must be reviewed and signed by the borrowers before we can move forward and in many cases, any change requires a 3 day review process.
It took a conference call lasting 45 minutes to review the documents with my clients. Do you think these clients feel more informed today then they might have say six months ago with the “old” disclosures? I seriously doubt it. After about 10 minutes they just wanted to know where to sign so we could move on with the process.
I should mention that if consumers have any questions about the new disclosures they can go to the Department of Housing and Urban Developme nt website and review the 52 pages of frequently asked questions on HUD’s website.
By the way, have you
noticed that “online lenders” seemed to have vanished? Could it be that it now takes more than someone with minimal training working in a call center to explain and answer questions from consumers? Or could it be that, by the end of this year loan officers and mortgage originators must be licensed at the national level? And yes, I am registered with the National Mortgage Lending System (NMLS).
My advice, now more than ever, you need an experienced and trustworthy loan officer and real estate agent on your side.
If you or someone you know is thinking about buying or selling a home, this is valuable information. I am always available to answer your questions or discuss your concerns. Simply text, call (650 325 7877) or email me (russ@brokerruss.com) for a prompt response.

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Still Skeptical About the Real Estate Market Recovery?

2010-04-10T13:32:00.001-07:00

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It seems of late, that most of the news regarding home sales has been more positive than negative. If you’ve been following my reports you that it’s my opinion that the market bottomed about 15 months ago in the San Francisco Bay Area. Yet, with the Federal Tax Credit expiring later this month, the Fed no longer buying mortgage backed securities and the continuing concern about foreclosures it doesn’t pay for me to be complacent.
As I was reviewing reports, as I do almost daily, I came across the “RPX Monthly Housing Composite” published by Radar Logic, which covers 25 MSA’s nationwide. This report follows the cost per square foot and tracks seasonal drops, which occur even when prices are increasing. This “seasonal” pattern is clearly evident in this chart. Also note that the bottom was evident in January 2009 This chart reflects the seasonal drop in price per square foot between December 1, 2009 and January 31, 2010. The report concluded that this 7% drop is historically consistent with an improving market and was much less than the two previous years. Also noted was that the increase seen at the end of January is what is expected in a stable market.
So, is all well in the housing markets? It’s what I call a “fragile” recovery. The market is showing definite signs of health, but, a watchful eye is needed.
If you or someone you know is thinking about buying or selling a home, this is valuable information. Now, more than ever buyers and sellers will benefit from the advice and guidance that an experienced REALTOR® can provide. I am always available to answer your questions or discuss your concerns. Simply text, call (650 325 7877) or email me (russ@brokerruss.com) for a prompt response.

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How to Combine the Federal and California Tax Credits up to $18,000

2010-04-03T16:28:00.001-07:00

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Since I posted a recent blog and video, “Would You Believe a State Homebuyer Tax Credit of up to $10,000?”, last week I have been asked if it possible to combine the Federal and State Tax Credit to a combined credit of $18,000. I'm happy to say YES,that here is a small window of opportunity.
To take advantage of both tax credits, a first-time homebuyer must enter into a purchase contract for a principal residence before May 1, 2010, and close escrow between May 1, 2010 and June 30, 2010, inclusive. Buyers who are not first-time homebuyers may use the same timeframes to receive up to $16,500 in combined tax credits if they meet the time minimum in their existing homes as permitted with the Federal Tax Credit, and they purchase homes that have never been previously occupied as provided under California law.
Additionally, under a newly enacted California law, a homebuyer may receive up to $10,000 in tax credits as a first-time homebuyer or buyer of a property that has never been occupied. The new California law applies to qualified purchases that close escrow on or after May 1, 2010. The California law requires buyers to register with the state Franchise Tax Board to reserve their credit. Complete details are available under QUICK LINKS on our website.
If you or someone you know is thinking about buying a home, this is valuable information. For details I recommend you contact your REALTOR® or a qualified tax advisor. I am always available to answer your questions or discuss your concerns. Simply text, call (650 325 7877) or email me (russ@brokerruss.com) for a prompt response.

Now, more than ever buyers and sellers will benefit from the advice and guidance that an experienced REALTOR® can provide. If you are in the San Francisco Bay Area, I invite you to take a look at our Resource Center, www.AboutBayAreaHomes.com. There you will find links for active home listings, including bank owned and short sales, home loan information, market activity reports, home seller strategies, staging and decorating, a suite of 19 calculators, plus my book, “Let’s Make a Deal, The Insiders Guide to Buying and Selling Real Estate” and more. Of course I am always available to discuss your real estate or mortgage related questions or concerns, just call, text or email me for a prompt response.

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Would you Believe a New Tax Credit up to $10,000 for California Homebuyers?

2010-03-29T14:40:00.001-07:00

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Who would have thought, a new Homebuyer Tax Credit for California homebuyers has been signed by the governor.
Last Monday the California State Legislature passed Assembly Bill 183 which will provide $200 million in homebuyer tax credits for California homebuyers.
The bill is part of a package of four bills, passed at the request of the Governor, designed to help stimulate the economy and create jobs. The bill allocates $100 million for qualified first time home buyers of existing homes and $100 million for purchasers of new, or previously unoccupied, homes. To be eligible, homebuyers must close escrow on a qualified principal residence between May 1, 2010 and December, 31, 2010, or have executed an enforceable contract on or before December 31, 2010 and close escrow on before August 1, 2011. This credit is equal to the lesser of 5% of the purchase price or $10,000, taken in equal installments over three consecutive years.
Keep in mind that the bill imposes a statewide limit of $200 million on the total tax credit allowed. Once the total has been allocated tax credits will no longer be allowed. It is necessary to file a “certification” with the Franchise Tax Board to reserve a credit. Under AB 183 purchasers will be required to live in the home as their principal residence for at least two years or forfeit the credit, or in other words, repay it to the state. The details are available on our website, www.aboutbayareahomes.com, under Quick Links.
If you or someone you know is thinking about buying a home, this is valuable information. For details I recommend you contact your REALTOR® or a qualified tax advisor. I am always available to answer your questions or discuss your concerns. Simply text, call (650 325 7877) or email me (russ@brokerruss.com) for a prompt response.

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Deutsche Bank: 'Home Equity' Rises by $1.1 Trillion

2010-03-23T13:15:00.001-07:00

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Remember back in 2006? Those were the days of multiple offers and rising home prices. Well, we are now into the third year of the “burst bubble” recovery. I confess, we bought our current home in 2006. And of course, it’s no news that its value today is much less than what we paid for it. Over the years, I’ve learned to accept the fact that things that go up someday come down and things that are down someday go up.

Actually, we don’t pay much attention to the current value of our home. We’re happy where we live and life goes on. At least that’s how I felt until I was this headline “Deutsche Bank: 'Home Equity' Rises by $1.1 Trillion”

Now that caught my attention. According to the report, over the past 12 months (that means all of 2009) homeowners have seen the paper value of their homes rise by $1.1 trillion. What! values have risen by $1.1 trillion…the report continued, this is the first year-over-year increase in four years…. maybe I should check recent sales in my neighborhood, I thought.

Deutsche Bank analysts write that the "upshot" is that household buying power in the first quarter "will show a meaningful improvement relative to recent history." Basing its estimate on figures compiled by the Federal Reserve, Deutsche Bank says home equity grew by $540 billion and $420 billion in the second and third quarters of last year, respectively, and less slowly in the fourth quarter and that adds up to over $1 trillion. Even though the Deutsche Bank report seems somewhat bullish on home values, some in the housing and mortgage markets fear that when the government halts its Mortgage Backed Securities buying program on March 31 that rates could rise on 30-year fixed-rate loans. Add the expiration of the $8000 Federal Tax Credit and we could see a slow down in the current momentum in the housing market. And concerns remain on delinquencies and possibly more foreclosures if both employment and values do not improve over the next two quarters.

No doubt we are likely to continue to see bumps in this road to recovery. The tax credit expires next month and interest rates will slowly begin to rise. If ever there was a need for guidance from an expert real estate agent, it is now.

I am always available to answer your questions or discuss your concerns. Simply text, call (650 325 7877) or email me (russ@brokerruss.com) for a prompt response.

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HAFA (Home Affordable Foreclosre Alternative) is coming to town!

2010-03-15T13:25:00.001-07:00

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As I reported in a recent post, up until now, short sales have had a high rate of failure, leading to frustration by buyers, distressed sellers, real estate agents and escrow officers. HAFA (Home Affordable Foreclosure Alternative) is a new federal program which becomes effective April 10, 2010. The intent of the new guideline is to streamline the process and create incentives for short sale transactions for lenders and borrowers through 12/31/12. Whether you are a homeowner, home buyer or home seller, this program may impact on you!

Yes, even if you are a current homeowner that is not experiencing financial distress you may be affected. Here’s how; as can be seen here, homes that have been foreclosed on and are now bank owned receive a sale price, on average, some 20% below that of a successful short sale. What homes sell for in your neighborhood directly impacts the value of your home. The fact that short sale sellers typically stay in their home until escrow closes limits the negative affect of foreclosed homes that become vacant.

As a homebuyer you are impacted because of the high failure rate and length of time short sales have been experiencing. In the first time buyer price range short sale listings represent the highest percentage of homes for sale, however, most buyers learn quickly to limit their search to bank owned or traditional market listings, thus ignoring half or more of the available homes for sale. The expected outcome of the new guidelines, which become effective April 5, 2010, is to align the short sale process with more traditional sales.

And of course, all this will benefit the seller experiencing financial hardship. Hopefully, the failure rate will go down and the process will become more predictable.

So, lenders have until April 5th to implement the HAFA guidelines and if it provides the intended benefit, it’s a win-win for all.

For those that are interested, I’ve posted an outline of the new guidelines under Quick Links on our website, www.aboutbayareahomes.com.

I am always available to answer your questions or discuss your concerns. Simply text, call (650 325 7877) or email me (russ@brokerruss.com) for a prompt response.

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Is 2010 the Year of the Short Sale?

2010-03-06T16:09:00.001-08:00

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Last week I attended an invitation only audio conference that included panelists from Bank of America, Wells Fargo Bank and Freddie Mac. Based on my experience with representing clients in short sales last year, the idea 2010 will be “the year of the short sale” did not sound like the “good news”.

I’m sure that most buyers, sellers, escrow officers and agents involved in short sales transactions last year would concur…the track record is dismal, with an unofficial fall out rate at 80 to 90 percent of short sales transactions.

Short sale properties are most often purchased by first-time homebuyers. Currently, mortgage servicer approval on offers for short sale properties can take several months, making these transactions difficult for current homeowners who often need to conduct not one, but two, transactions in quick succession. In contrast, first-time homebuyers more often have flexibility around the timing of short sale closings. According to the panelists, effective April 5, 2010, the new Treasury Department guidelines contained in the Home Affordable Foreclosure Alternatives Program (HAFA) will go a long way to alleviate the challenges that have made short sales difficult and frustrating.

As can be seen here, short sales have become the largest category of distressed property transactions, accounting for well over a third of these transactions, according to the latest Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions.

Short sales have become a preferred means of resolving mortgages in default, both for large lenders and for the government agencies supporting lenders’ efforts. Short sales typically result in lower lender losses and houses left in more saleable condition. Moreover, sellers that agree to a short sale can often buy another house with mortgage financing after only two years. For borrowers going though the foreclosure process, mortgage financing can be unavailable for a period of five to seven years.

While this varies somewhat county by county, my experience is that short sales or bank owned homes represent a high percentage of homes for sale in the $500,000 price range and below.

Bank owned and short sales require a high level of expertise. I am always available to answer your questions or discuss your concerns. Simply text, call (650 325 7877) or email me (russ@brokerruss.com) for a prompt response.

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It May be Time to Consider an ARM Loan

2010-03-01T11:20:00.001-08:00

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Remember back in mid 2007, just before the housing bubble burst? At that time most buyers and borrowers opted of ARM loans with a fixed rate period, typically 3, 5 or 7 years. Conforming fixed rates were in the high 6’s at that time and 1 year fixed ARM loans were in the mid 5’s without a “teaser” rate. The rate and payment difference made a lot of sense for many buyers and homeowners in the high priced bay area. Gone are teaser rates, option ARM loans with negative amortization and the entire sub prime mortgage industry.

Over the past two years the fed has done everything possible to bring mortgage rates down and now conforming fixed rate loans hover in the 5% range. Bringing fixed rates down also brought about what is called an “inverted yield curve”. That’s when long term rates are lower than short term rates. As you can see here, the yield curve inverted in late 2008 and mid 2009. At other times during the past two years ARM loans didn’t make sense relative low cost fixed loans.

But all that’s soon to change. The period between 2005 and 2007 reflects a more traditional spread between fixed rates and various ARM loans. You can see here the spread between fixed rates and ARM’s has been increasing since 12/08 and we may be entering a time where it may be worth your while to consider an ARM loan. When the rates were comparable a fixed rate loan makes the most sense, but with rates beginning to creep up ARM rates can have a healthy edge.

The first thing to ask yourself is what your future plans are. Do you plan to expand your family any time soon? Or, do you only plan to live in the area a few years or maybe you work for a company that relocates you often. If you answer yes to any of these questions an ARM with a fixed period may make smart financial sense. For example, today, a 5 year fixed ARM is a full percentage point below a fixed rate. At today’s rates, the difference in interest paid over five years on a $400,000 loan would nearly $15,000.

Rates are still low and a fixed rate loan is very appealing, however, as the low rate market shifts, other loan products may be worth considering.

I am always available to discuss your concerns or answer your questions about real estate or mortgage loans, just text, call (650 325 7877) or email me for a prompt response.

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Jumbo Loans-The Missing Piece of the Puzzle

2010-02-22T13:45:00.001-08:00

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While it’s quite clear that there has been steady market improvement during the past year, there is still a missing piece of the puzzle for homes priced above $1,000,000.

Now let me be clear, there are some large lenders that have been coming back into the Jumbo Loan market (above $729750 in the Bay Area), however pricing and strict guidelines including a minimum of 20% down, make it difficult for buyers. And if buyers are having a tough time buying, then sellers will have a tough time selling.

Immediately after the mortgage melt down of 2007 the market for Jumbo loans virtually vanished….. the markets became risk adverse, essentially eliminating the secondary market for the resale of jumbo loans. In other words, if a lender were to make jumbo loans they would have to hold it in their own portfolio and at the time, banks didn’t have much interest in holding loans with a stigma of high risk.

This graph depicts the “rate spread” between conforming and jumbo loans. During the past two years the spread between conforming loans and jumbo loans grew from an “historical” .375%, to well over 1.50%. That spread began to narrow in late 2009 as some large banks like Bank of America, Wells Fargo and Citi cautiously re-entered the jumbo market.

The lack of a secondary market for jumbo loans has a lot to do with the drop in the median price of homes….if the average buyer finds jumbo loans difficult and expensive with high down payment requirements they tend to stay out of the million dollar plus home market.

Take a look here at how the number of Jumbo Loans has decreased since mid 2007.

On the supply side, only those buyers that must sell put their home on the market and on the demand side there are fewer buyers, so the number of high end sales has dimished.

The fed is the secondary market for conforming loans. Whether the fed continues to fuel the secondary market for conforming loans after March 2010 remains to be seen. In my opinion, real stability won’t return to the housing market until the capital markets regain confidence in the housing sector without support from the fed. As market confidence grows, we should see investment capital return and a secondary market for conforming and jumbo loans reestablished.

A viable secondary market for both loan segments is vital to the overall health and vitality of the housing market.

As can be seen in the latest Bay Area Market Activities Reports, Bay Area housing inventory is at a low point. There is strong competition for well presented homes priced to the market in the bay area. Since there is a limited supply of above million dollar priced homes on the market, sellers are well advised to price strategically and do all recommended pre listing improvements including staging. Homes that are presented to sell at an attractive price bring in buyers and multiple offers are being seen even in the higher price ranges.

Buying or selling a home is serious business. In these complex times, I am always available to answer your questions or discuss you concerns. Simply call, text or email me for a prompt response.

Posted via web from brokerruss's posterous

Are you a Ready, Willing and Able Home Buyer?

2010-02-16T10:07:00.001-08:00

Videos by Russ Boyd are uploaded to Youtube, MetaCafe, Veoh, Vimeo and Yahoo Video by

We often hear the question, “is this a good time to buy”. It occurs to me that what is really being asked is, “are prices going to go down further?” We know that buyers have been blessed with low mortgage interest rates and the first time homebuyer tax credit, which was recently expanded to include “move up” buyers. We have heard so many times in the last 12 months that now is a great time to buy. But is this true? So when is the right time to buy?

In my opinion, the right answer is that the best time to buy a home is when you are ready, willing and able to buy.

Let’s examine those three points:

1. To determine if you are “ready”, ask yourself why are you considering buying a home? Is it reasonable to think you will be able to live in your home at least five years? Have you explored the pros and cons? Homeownership is a huge responsibility that fortunately has many rewards, not the least is that you will be building equity for your future.

2. Are you “willing” to take on the responsibility of homeownership? Like all things worth having, homes require maintence and attention. A side benefit is that you can bring your own “sense of style” to your home. You can own the experience.

3. A prime consideration is your ability to buy. Are you planning to move on or are you willing to stay put? How is your job and income stability? What about down payment, credit and ability to make the payments? All this and more makes up your ability to buy.

If you decided that you are ready, willing and able, what about market conditions?

Let’s start with interest rates; during the past two years, buyers have been very fortunate with low interest rates in the high 4's to mid 5's and the first time home buyers tax credit, which expires at the end of April.

The Federal Reserve implemented a plan to help keep mortgage interest rates low. It was a way to keep fears out of the market and stimulate the economy. That was the original plan. What is the plan now? If we are to believe what we hear from Washington, this plan will come to a halt by the end of March.

Another market condition is housing inventory. Available inventory has been shrinking over the past year as investors and first time buyers purchased low priced bank owned and short sale homes. So what does it all mean? It means you have to be ready, willing and able. In other words, committed to the process.

So is time running out? Of course not, whther the market is contracting or expending, whether rates are up or down, people buy homes. Whether to buy or not should come with careful consideration and planning. And part of this planning should include real estate and mortgage professionals. You should not just buy because you could get a tax credit or because mortgage rates are low, you should buy a home because it makes sense as an investment, it provides the kind of shelter you want for you and your family and it brings enjoyment to your life.

If you are waiting for rates or prices to drop further or are hoping for another extension of the tax credit, let’s face it, you may be “able” but are you really “ready and “willing”?

Buying or selling a home is serious business. In these complex times, I am always available to answer your questions or discuss you concerns. Simply call, text or email me for a prompt response.

Posted via web from brokerruss's posterous

Let's Make a Deal-Washington Style

2010-02-09T17:51:00.001-08:00

Videos by Russ Boyd are uploaded to Youtube, MetaCafe, Veoh, Vimeo and Yahoo Video by

We’ve all seen examples of what looks like a “sweetheart” government deal that benefits Wall Street at the expense of Main Street, right?

Well have I got a story for you….a deal made by the FDIC when it sold the assets of failed Indy Mac Bank to One West Bank in March 2009.

You’ve got to see this five minute video that explains not only how One West Bank is “banking” money that is coming from the US Treasury and has a deal with absolutely no risk.

After watching the video, I’m sure you will agree that this is a government gone wild with our money. I’ve sent a copy of this to my Congressional Representative and if you feel like I do that Washington has total disregard for the tax payer, please do the same.

In these complex times, I am always available to answer your questions or discuss you concerns. Simply call, text or email me for a prompt response.

Posted via web from brokerruss's posterous

It's Onward and Upward for Bay Area Real Estate

2010-02-04T19:46:00.001-08:00

Videos by Russ Boyd are uploaded to Youtube, MetaCafe, Veoh, Vimeo and Yahoo Video by

The number of sales of new and existing single-family houses and condominiums increased13.6 percent increase in December from a year ago said a report released MDA DataQuick. Last month's median sales price for the nine-county Bay Area represented a 15.2 percent gain from $330,000 in December 2008 to $380,000 in December 2009.

Continuing the encouraging news over the past few months, December was the third month in row where there was a year-to-year price gain in the region following 22 months of year-to-year price drops.

The rising prices can be traced to competition among buyers for a diminishing pool of bank owned homes, plus low rates and the Federal Tax Credit.

For now foreclosures are becoming a smaller part of the resale market, accounting for 32.3 percent of existing homes sales last month in the Bay Area. That's down from 48.3 percent in December 2008 and a peak of 52 percent hit last February.

Still, some observers have expressed concerns that loan modifications programs are only delaying the foreclosure process and that more bargain-priced foreclosures that are in the pipeline could push prices down.

There were bigger year-to-year gains in the number of homes sold in more expensive parts of the Bay Area such as San Mateo County, Santa Clara County and San Francisco. But in Alameda County there was small gain in sales while Contra Costa County saw a drop in sales.

As our Bay Area Activity Reports confirm, Alameda County, had a 4 percent increase in home sales from a year ago while the median sales price of $360,000 represented a 6.5 percent gain. In Contra Costa County, the median sales price of $287,500 was a 13.9 percent gain. In San Mateo County, home sales increased 47% and the median sales price of $586,500 is a 9.2 percent gain.

Competition for lower-priced homes is helping to push upthe median price in all bay area counties.

At the lower end, investors and first time home buyers seeking to take advantage of the federal income tax break are the primary buyers

There are increases in notices of defaults and foreclosures in the high-end million-dollar plus market. That's called the tail of the dragon. In a recovering market, the high end is the last to drop and the last to recover.

John Walsh, MDA DataQuick president said "the market appears to be improving but normal is not here yet. Sales distribution is still lopsided towards lower-cost homes, driven by tax incentives and distress activity."

In these complex times, I am always available to answer your questions or discuss you concerns. Simply call, text or email me for a prompt response.

Posted via web from brokerruss's posterous

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