Coldwell Banker announces the Home Buyer Credit beginning May 1st. This program allows participating sellers to credit the buyer 3% of the sales price up to $8,000 towards the buyers closings costs. The participating seller’s homes will be specially marked on ColdwellBanker.com.

Contact Brandon Fairbanks at Coldwell Banker Premier for more information at (559) 658-9717 or send an email to fairbanksgroup@gmail.com.

Will the Housing market return to 2005 prices within the next 15 to 20 years?  A few reasons why the housing market peaks may take longer than anticipated, if ever.

1. Home sales are dependent upon consumer confidence in the economy, which includes both their personal economy as well as that of the nation. 2. Loss of home equity will limit the inventory for buyers wishing to move up. Loss of equity and declining home values means fewer sellers will have the resources to purchase another home.3. Tougher lending restrictions combined with declining credit scores fewer buyers will qualify for home loans. 4. The continued high rate of foreclosures and REOs will depress both the housing market and the hopes of many potential buyers. Millions who have experienced foreclosure will be automatically ousted from the buying pool. 5. Slow increase in mortgage rates will reduce the number of qualified buyers. As we experience the higher mortgage payments associated with rising interest rates, many will fail to qualify for loans on the homes of their choice6. A raise in the housing market cannot occur as long as we have unusually high unemployment. Experts say unemployment could remain at higher than normal levels for several years.

Five more months to get in Contract for the Federal Tax Credit for FIRST TIME HOME BUYERS.

Beyond the basics (the definition of a First Time Home Buyer and the fact that you must stay in the home for three years), here are a few of the lesser known talking points:

• There is an increase in Income Limits (and resulting Phase Out Limits) from $75,000 to $125,000 for single filers and from $150,000 to $225,000 for married filers.  That means many more people qualify!
  • That if you close in 2010 before the June 30^th deadline, you can get the credit in your 2009 Returns.  You can even file an extension and not even file until AFTER you have closed, or amend returns that had been filed.  Any of these actions will get you your tax credit cash in a matter of weeks, not in 2011!
  • That if there are multiple home buyers and/or co-signers that may or may not be First Timers, there are options on how the credit can be allocated.  As always, discuss these items with your accountant.
• There is a new REPEAT HOME BUYER TAX CREDIT of up to $6,500.

  Are you aware that you need NOT purchase a more expensive home to qualify?  Just be in contract by April 30, 2010 and close by June 30.  Many of your questions about either Tax Credit can be answered at http://www.federalhousingtaxcredit.com/

  When you combine these likely changes and deadlines with a probably rising interest rate market, I can’t imagine a better time to ACT NOW before rates go up, the need for cash to close goes up, and the tax credit expiration looms.

 Information provided by Dean Hartman

It appears foreclosures across the country are showing some signs of recovery. One reason is banks are seeing the value in short sales vs. foreclosures. Forbes Real Estate ranked cities with the fewest foreclosures. A few California cities made the top 100 list.66. San Francisco Oakland74. San Jose Santa Clara79. Thousand Oaks84 Sacramento Stockton86. Modesto88. San Diego91. Los Angeles97. Riverside San Bernardino

Montecino & Associates has developed Hope For Owners division out of a very strong need to help homeowners who may be experiencing hardships and may be facing foreclosure.

The Hope For Homeowners division is here to help people in our communities by giving them the information they need to either modify their loan and stay in their home or if that is not an option, to help them understand and proceed with a short sale of their home in order to avoid foreclosure.

The Hope For Homeowners team are CDPE (Certified Distressed Property Expert) trained and have invested time and money to learn and develop the systems to work with the banks and lenders with the goal of achieving a short sale approval.

Homeowners do have options and we strongly feel it is our responsibility as real estate professionals to help people explore their options and avoid foreclosure.

If you know of anyone who is experiencing hardships and are struggling making their payments please have them call the Hope For Homeowners team at (559) 683-3556.

FHA, Fannie Mae and Freddie Mac Loan Limits -The bill reinstates last year’s 2008 loan limits for FHA, Freddie Mac, and Fannie Mae loans.  These limits were equal to the greater of 125% of the 2008 local area median home price or $271,050 for FHA and $417,000 for Fannie and Freddie, with an overall maximum cap of $729,750.  For the few areas where the 2009 limits were higher, the higher limits will apply.  In addition, the bill includes language providing the HUD Secretary with the discretion, if warranted, to increase the loan limit for any “sub-area”, i.e.an area smaller than a county. The Secretary’s discretion is again limited by the $729,750 cap. These 2009 limits will expire December 31, 2009.The inclusion of these loan limit provisions in the final bill is a victory for homeowners, buyers and Realtors.  While these new limits were included in version of the original stimulus bill approved by the House, the bill first approved by the Senate did not.  NAR’s Call for Action to both the House and the Senate prior to the final vote advocated strongly for the provisions which were then included in the final bill approved by both Chambers. 

The new stimulus package has a gift for first time home owners. So if you have not owned a home in the past 3 years and you are a renter now is you time.  Homebuyer Tax Credit – The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.  The credit does not require repayment.  Most of the mechanics of the credit will be the same as under the 2008 rules:  the credit will be claimed on a tax return to reduce the purchaser’s income tax liability.  If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.

This is information from the National Association of Realtors (NAR) website that I found to be interesting and would like to share with those of you who are interested. 

2009 Economic OutlookBy Lawrence Yun, Chief Economist“The U.S. economy has entered a recession and will contract for the next three quarters, and the recovery, from the second half of 2009, will be tepid. The unemployment rate will peak at 6.7 percent by midyear next year before steadily heading down. However, existing home sales will be rising despite challenging economic times.The most important factor driving home sales is affordability. With home prices falling in many parts of the country and mortgage rates still near historic lows, affordability conditions have markedly improved. Even with rising unemployment, nearly 93 percent of households will have jobs. This 93 percent of working households (rather than 95 percent during good economic times) respond to incentives. Added measures, from the first-time homebuyer tax credit to a larger number of mortgage loans qualifying to be purchased by Fannie and Freddie and through the FHA program, will further bring homebuyers to the marketplace.Back in the previous recession, the economy shed nearly 2 million net jobs from 2001 to 2003. All the while, existing home sales rose from 5.2 million to 6.2 million just as jobs were being cut. New home sales likewise rose from 900,000 to 1.1 million. Mortgage rates were falling and housing affordability was rising during these years. The 2 million job cuts were painful, but the economy still had 130 million job holders.An early indication that buyers are responding to incentives was the solid jump in the pending home sales in August to the highest level in over a year. The biggest increases were in areas with rising affordability from sharp reductions in home prices in California, Nevada, and Florida. The expansion will broaden to other markets where home prices have markedly fallen, including Rhode Island, Virginia, and Minnesota. Existing home sales, therefore, will likely breakout from the narrow trading range of 4.8 to 5 million of the past 12 months to 5.2 million by the year end and to 5.4 million in 2009. Even with the improvement, the next year’s sales level will still be well below the 7.1 million peak sales achieved with rampant speculative buying in 2005.New home sales will be a different story. There is an overhang of inventory and homebuilders are being forced to cut back sharply. New housing starts have fallen by about 60 percent from peak activity three years back. Because of the cutback in new home construction, the inventory of vacant new homes on the market has fallen to 408,000 as of August from nearly 600,000 just two years ago. The total inventory - new and existing combined - still remains elevated, so further reduction in building by builders will be welcomed. Because of low housing starts, new home sales will continue to tread at soft levels -under 500,000 in 2009 (far below the 1.2 million peak sales in 2005).On the economic front, recession in itself is not a positive for the housing market because there are fewer job holders. But if a recession is accompanied by rising housing affordability, then home sales can trend higher - as is now. A prolonged deep recession, however - certainly a possibility in light of the most severely tested financial market stress since the Great Depression - can dampen consumer confidence and put up barriers to home buying. Fortunately, the economic downturn appears manageable. Let’s explore why by reviewing each of the key economic data points and their projections.Consumer SpendingConsumer spending accounts for nearly 70 percent of economic activity. Normal, healthy growth is about 3 percent (in real terms above the inflation rate). It grew at only one percent in the first half of this year and is expected to record a mild contraction in the upcoming quarters. Aggregate personal income is likely to have fallen because of fewer jobs. In addition, there has been a sizable decline in net wealth from falling stock prices and falling home values. The combined income and wealth effects will be such that consumer spending, at best, will add nothing to economic growth in 2009. Another government stimulus plan may temporarily raise consumer spending but will do nothing for a long term sustained rise unless the overall economy recovers and begin adding jobs.Business SpendingBusiness spending for equipment turned negative in the recent quarter, not surprising given that corporate profits have fallen for four straight quarters and weak sentiment regarding consumer spending prospects. Construction activity for commercial real estate, which had been growing solidly, will be weakening in light of the credit crunch and rising vacancy rates. One positive picture is on the current lean business inventory conditions. Unlike many past economic downturns when companies had to hold back production because of bloated inventory, the very thin inventory conditions permit companies to ramp up production at the first sign of economic recovery.Government SpendingGovernment spending can create jobs. Upgrading and expanding nation’s infrastructure, hiring more teachers, or building jets and tanks can stimulate the economy over the short-term. But spending without additional tax revenue over the long run can result in higher interest rates. For the short-term at least through 2009, government spending is expected to rise 1 to 2 percent.Net ExportsNet exports have been steadily improving in the past year. The U.S. continues to import more items, but the exports have been booming over the past five years, growing at near double-digit pace. The export growth in the second quarter was very impressive, clocking in at a 12.3 growth rate. The weak U.S. dollar has made U.S. products more competitive. However, the dollar has strengthened of late since the start of the global financial crisis. Foreign countries blame the U.S. for the subprime loans and the credit market turmoil, yet people turn to and trust the dollar in times of the crisis. Foreign countries, initially delighted in seeing the U.S. fall, are now in a panic as their stock markets have started crashing even more sharply than the U.S market. Fair or not, the U.S. economic problem has caused a global economic mess. The strengthening of the U.S. dollar this time around should be viewed positively because there is about a two-year lag time in impacting international trade flows from changes in currency. So the net exports continue to be a positive factor for the economy going into 2009. Also oil prices, which are denominated in dollars, fall when the dollar strengthens. Given that REALTORS® are heavy drivers, lower oil prices are welcome.The Bottom LinePut it all together and what do we have? A recovering economy will help consumer and business spending to turn the corner and the economy to move to a self-sustaining pace. But it requires a catalyst to get things started. The tumbling housing market and subprime mortgage defaults have caused financial markets to freeze and have pushed the economy into a recession. However, recent rising home sales and some sustained momentum will bring the economy back into the fold. Rising home sales will also thin out the housing inventory and begin stabilizing home prices. The credit market will start to unfreeze once home prices have passed bottom. Simply, the economy will not recover without a housing market recovery.Fortunately, policymakers and both Presidential candidates clearly recognize the need to get the housing market moving. The two housing stimulus bills (homebuyer tax credit and higher loan limits), $700 billion Treasury plan and the Federal Reserve’s actions are designed to assure steady mortgage flow and help revive the housing sector. With it, the economy will expand and create jobs. America and its exceptional ingenuity always find a way to move past crises and back to economic prosperity.” 

Is there a positive swing in the real estate market?  November 3rd, 2008, Judy Kunisaki Posted in Malibu, National Association of Realtors the following:| Malibu is always known for its fabulous real estate sales and recently these have been no exception with many celebrities buying and selling swathes of properties in the city. However despite negative national press about the housing market things are looking great in California! According to the California Association of Realtors, Sales of units increased 96.7% in September 2008 over last year! This is great news and shows that buyers are really snapping up those great deals out there. In fact sales Statewide edged past 500,000 for the month for the first time in more than 2 years. Also the level of inventory is down to a fantastic 6.5 months compared to 16 months a year ago. Also the median number of days it took to sell a single family home has shorted to an average of 46.1 days down from 56.7 a year ago. Nationally home sales have risen - with California leading the way. Definite signs of a market which is poised to grow in 2009.I believe Ms. Kunisaki is right. We have seen a spark in the central valley and in Eastern Madera County as well. I believe during this past year we have had so much negative events and reports, especially by our presidential hopefuls, that after the election, whoever wins, we should start hearing positive things that will bring back the confidence in America.

Go Platinum Lending is celebrating its  1 year anniversary. Go Platinum Lending is a local mortgage company that services Coarsegold, Oakhurst, Bass Lake  and other mountain communities as well as the entire state of California. In these turbulent time we at Go Platinum Lending feel very strongly about providing a high level of personal service along with solid financial solutions. By being a mortgage broker we can find the deal that best fits each individuals needs.Go Platinum Lending is closely connected to a local real estate office – Montecino & Assoc. This allow us to give buyers a “one-stop-shop”  and eliminates a lot of the stress a home buyer sometime experiences.Since Halloween is coming up we at Go Platinum Lending have decided to hand out free pumpkins to anyone that stops by our office beginning Oct 18 – as long as supplies last.We like to support our local community as much as possible and for this event we are able to help a local pumpkin patch increase their sales.So stop by and come and see us and help us celebrateJ