Jim Cramer, of MAD MONEY, blogged on July 23, 2008, “I am now telling you that between now and the next six months you have to buy a house.”  Mr. Cramer is giving great advice. Home prices are low and so is the interest rate.

CNNMoney.com reported in August that nationally, 55% of homes sold from April through June were affordable to families earning the US median income of $61,500.00. This was according to a quarterly report released by the National Association of Homes Builders (NAHB). That’s up from 53.8% in the first quarter of 2008, and the most affordable home prices have been since the second quarter of 2004.

The Housing and Economic Recovery Act of 2008 (H.R.3221), has many programs to help people buy the American dream. Under H.R. 3221, new homebuyer tax credit is available for qualifying home purchases after April 11, 2008, and before July 1, 2009. The Act provides eligible first-time homebuyers a refundable tax credit equal to the lesser of 10% of the purchase price of a principal residence or $7,500 ($3,750 for married individuals filing separately). A taxpayer is considered a first-time homebuyer if he (or spouse, if married) had no ownership interest in a principal residence during the 3 year period before the purchase of the home to which the credit applies.

Under H.R. 3221 the Department of Veterans Affairs is raising the ceiling on its no-down payment home loans from the current $417,000 to as much as $729,000. VA home loans are available for veterans to purchase or construct single-family homes, and to purchase condominiums or cooperative apartments. There are about 2.3 million existing VA home loans, more than 90% made with no down payment.

This is just to name a few great programs available which reinforce Mr. Cramer’s reasoning to buy NOW.

In California we continue going through a challenging market slump that some call a normalizing market. Some areas of the country, like Florida and parts of Nevada are experiencing the same adjustment. But one must remember that these areas experienced a very high appreciation in the past few years unlike any time in history, and history shows this adjustment was expected and will prove to be healthy for the overall market, in fact we may be seeing the beginning signs of progress.

The problem facing us now is the issue of inventory (supply and demand). To regain a stabling market value we must reduce the inventory of houses. Fresno reports record sales of homes. This is a direct cause from falling prices do to foreclosures and bank owned properties. As the inventory of homes drop, prices will start to stabilize.

One of the main reasons for the drop in housing prices is the increasing number of foreclosures and bank owned homes coming on the market. The dark side is that there is no sign of this market going away anytime soon, as the foreclosure crisis continues to affect more homeowners every month.

For the buyer, it’s a great time to buy and invest in the real estate market. For the seller, it may not be as bad as some say, take away the foreclosures and bank owned homes and you’ll find that the decline in the value of your home may not be as drastic as you think.

Do not believe the negative media reports about the real estate market. The media continues to report the dismal affect on the market focusing on foreclosure numbers, price declines, and inventory levels. This continued reporting may lead one in believing real estate is a bad investment. Don’t believe everything you hear, especially from a bias media that thrives on negative reporting and the doom and gloom of America. Check out the facts. I believe the facts show it’s a great time to invest in the real estate market.Even today with the negative media reports, you can find facts to support that real estate continues to be a great investment:  

1.        The National Association for Business Economics reports “a bottoming out in housing this year”.

2.  Mark Zandi, of Moody’s Economy wrote “We are at the beginning of the end of the downturn”.

3.           Adam York indicated in Wachovia “The vast majority of the declines in sales are behind us”.

4.           The market is getting a handle on the foreclosure crisis. You couldn’t say that a year ago.

5.           The Case-Shiller housing price index is showing month over month price growth in about a third of the 20 cities it covers, suggesting that the buying interest is returning and prices are back on an uptrend.

6.           Home builders are back to buying land and shifting from a defense to offense mode.

7.           Monthly mortgage payments have meet the equivalent of monthly rent.

Just a few facts to show that it’s a time to buy and invest in the market. Let those that believe the media sit it out and wait while you take advantage of a great opportunity, it’s your time.You’d better hurry or someone will beat you to it.

More and more home buyers feel their home purchase is as good as investing in stocks, according to a survey by the National Association of Realtors. According to NAR About 79 percent of buyers purchased their home through a real estate broker or agent. Forty-three percent of buyers found their broker-agent through a referral from a friend or family member. About a third of buyers reported that their first step in the home-buying process was looking online for sale properties and a whopping 84 percent of buyers report they used the Internet to search for homes at some point in their home-seeking process.  Overall, the typical home buyer is 39 years old, while the typical repeat buyer is 46. Nine percent of home buyers reported they were born outside the United States. Three-quarters of buyers between 18 and 24 purchased a home because of their desire to own a home and establish a household.  Nearly three quarters of first-time buyers rely on savings for their down payment and Ninety-three percent arranged financing for their purchase.

Sierra Ambulance provides paramedic ambulance service to the communities in eastern Madera County, California. They are located in the Sierra Nevada Mountains 18 miles south of Yosemite National Park, and 50 miles north of Fresno on State Route 41. They serve the communities of Oakhurst, Ahwahnee, Bass Lake, North Fork, Coarsegold, Yosemite Lakes, Raymond, Fish Camp, O Neals, and portions of Yosemite National Park and the Sierra National Forest; over 1,000 square miles in all. Sierra Ambulance is a non-profit corporation founded in 1964.  Sierra Ambulance offers community Cardio-Pulmonary Resuscitation, (CPR), classes monthly. You may register at: outreach@SierraAmbulance.org or during daytime hours phone 559-658-1052 and after hours phone 559-642-0650, ext. 23, for information. Be sure to leave your name and a daytime phone. Certain classes are free, others have a charge commensurate with expenses. Classes are usually held at our offices at 40755 Winding Way, Oakhurst, CA 93644. Special classes may be schedule for groups. Call for details.  As a non-profit corporation, all of the revenue raised is used 100% to support the operation of the Service.

Key to the financial success of Sierra is the Family Membership Program. For $55 dollars a year per household, a family can purchase an Ambulance Membership. It covers the cost of ambulance transport from within Sierra’s service area to any area hospital in Madera, Fresno or Mariposa County. It is immediately renewable. Why should you join if you have insurance? Simply, many insurance plans have a deductible, a co-pay, or a maximum benefit well below the actual cost of service. Likewise, many insurers look backward after the fact and determine whether or not the ambulance was justified. Your claim could be denied. Your membership would cover you in this case. The membership program provides a benefit to those who may need its coverage; it also helps Sierra raise money to purchase new ambulances and equipment. Those interested in purchasing a family membership may phone the office at 559-642-0650 or log onto their web site at www.sierraambulance.org.

I read in the USA today a story by Stefanie Frith, Frith reports for The Desert Sun in Palm Springs, Calif. relating that in the past few months, a Moorpark California cattle rancher has been forced to sell two-thirds of his herd and spends twice as much on feed do to the drought conditions in California. According to the rancher if the drought problem continues into next year, he’ll have to close down his cattle operationsMs Frith related a California’s Department of Water Resources report that California’s Sierra snow pack, an annual source of water for ranchers and farmers, is at its lowest level in two decades and it’s the same story with rainfall.A friend of mine told me the same type of story. He leases 1000 acres in Coarsegold California near the town of Oakhurst, where he runs 50 to 70 head of cattle in a cow calf operation. He told me that do the rising cost of feed, (doubling in the past year) and the rising cost of fuel he will be closing down his operation at the end of this year.

Could it be possible??  Gas prices are dropping??  Each day as I drive out of beautiful Oakhurst, through Coarsegold, pass the Madera Ranchos I can’t help but notice the gas prices dropping (not as much as I like though).  As I head into the horrific smog trapped in our San Joaquin Valley, my eyes happen to catch the prices of gas listed at each gas station.  I note the cheapest price and that is where I stop on my way back up hill.  So far the cheapest gas prices off of route Highway 41 between Coarsegold and Fresno is the Valero or AM/PM located on the Highway 41 Business Route.  If you are like me and don’t want to get off the freeway but still are looking for a deal the Valero at the 22 mile house is only 4 cents more.  I am excited to see gas prices plunging little by little as I endure the year making the commute to Fresno. 

This crazy real estate market so many of us are caught in is frustrating and confusing.  We have seen the prices of homes drop throughout the Eastern Madera County area.  Ahwahnee, Coarsegold, Oakhurst, Raymond, Bass Lake, Fish Camp, Yosemite Lakes, O’Neil’s, and North Fork are no strangers to the dropping market.  What can we do?? It seems as there is nothing we can do.  Not only is finding a buyer a problem but once we have a buyer and start the escrow process we run into so many more problems.  A huge problem that is emerging is the appraisal process.  Appraisers are being quite conservative, as if that is not bad enough.  Then the lending institutions want to send out their own appraisers at the buyer’s expense.  This is getting to be ridiculous.  Sales agents are getting frustrated, buyers do not want to pay for an additional appraisal (of course), and sellers are finding it hard to get through the escrow process.  Is this vicious cycle ever going to stop???  I find an interesting article on appraising that you might enjoy reading just go to the following link http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/08/17/RELP12AF53.DTL

A first time homebuyer will now receive a tax credit of 10% of the purchase price up to $7500 maximum for the tax year in which they purchase their home.  A first time homebuyer qualifies as long as the buyer and spouse if any, has not owned a principal residence in the U.S. for the last three years.  The tax credit is available for homes purchased from April 9, 2008 through June 30, 2009.  For more specifics about this credit please consult with your tax professional.

Are you looking to do something new for a change?  The Golden Chain Theatre is a great way to spend an evening full of fun and entertainment.  Now through September 14^th, they are currently presenting Love, Sick, and Montezuma’s Gold.  Opening night, August 2, is already SOLD OUT!!  The Golden Chain Theatre has a long history in Madera County’s Oakhurst area.  It is a 19^th century historic and melodramatic theatre.  This theatre located on Highway 41 just north of town in Oakhurst has been around 1965 when community members thought that Oakhurst needed something to offer its tourists on their way to Yosemite National Park.  For more information and tickets log onto http://www.goldenchaintheatre.org/