Welcome to the "Z" Team! Douglas and Bud Zeller

The extension and expansion of the popular home buyers tax credit gives both new and move-up buyers a tax incentive to buy a home until at least April 30, 2010, longer for military personnel.

The new law extends the existing credit for first-time homebuyers, worth up to $8,000, through April 30, 2010.

A new credit of up to $6,500 is available to qualifying existing homeowners who buy a new primary residence (or have one built) by April 30, 2010, if they owned their existing home for five consecutive years over the last eight years.

Home buyers will have to repay the credit if they live in their primary residence less than 36 months and are not members of the military.

The new rule also raises the qualifying income limits to $125,000 for single taxpayers and $225,000 for joint taxpayers, from the current $75,000 and $150,000.

The maximum allowed home purchase price is $800,000.

Both first-time home buyers and others must close escrow by June 30, 2010. Remember, it may take 60+ days to close, so don’t procrastinate!

Military personnel, deployed overseas for a minimum of 90 days in 2008 or 2009, would have until April 30, 2011 to claim the tax credit.

Buyers can claim the credit on their 2009 taxes, even if the purchase is made in 2010 by filing an amended return. Buyers who don’t owe taxes can have the credit refunded to them.

More information is available from the Internal Revenue Service (IRS}, including a question and answer page.

That’s all good news for the housing market. It doesn’t matter if you’re buying in Placerville, El Dorado County, California or any other state.

Three to four years ago when home prices were at their peak, there were people who wished they could have gone back in time to buy a house before prices went though the stratosphere.  At the same time, there were other people that decided to wait for prices to come down before buying a house. For both sets of people, it would appear that the time has come. Today prices have come down to the 2002 levels, so for the people that wanted to go back in time, here is your chance to go back to 2002. Now for the people who said they wanted to wait until prices come down, now is the time, because prices are at historic lows after being at historic highs. 
To keep things real, you’re going to have both sets of groups that will find fault with this line of reasoning. The ones who wanted to go back in time to 2000, (Home values doubled in many areas from 2000 to 2006.), its just not far back enough for them. They want the magic time machine to go back further to maybe, what like 1985? (The problem is, the 1980s experienced interest rates going up to 20% on home loans.)
For the people who were waiting for prices to come down until they bought, they want to see prices come down even lower! Say another 50%?
The old adage applies; “you can please some of the people some of the time, but you can’t please all of the people all of the time.” It would seem that the procrastinators waiting to buy a home will be saying the same thing when prices rise and they miss the boat, “again.”
Now out of those two groups, the ones that have a better chance to have their wish come true might be the ones looking for prices to come down, although it’s very doubtful they will see another 50% drop in value. They might see another 15-20%, but interest rates could increase, and decrease buying power.
With the vast changes to the real estate industry and the government’s involvement along with ever greater influences the Internet is having, it’s hard to see what the future holds.
But, looking back on the real estate industry over the past 60 years, appreciation has occurred. So if you’re in one of the groups of people that really wants to buy a home, now would be a good time to get an idea of what you can afford to buy and find a Real Estate agent to help you find a house that will fit your needs.

On January 20, 2010, FHA announced major changes to ensure its long-term financial soundness.  FHA is trying to balance three fundamental objectives: 1) financial soundness of the FHA insurance fund   ensuring that its capital ratio returns above 2 percent, 2) fulfilling its mission of serving borrowers not adequately served by the private sector and 3) facilitating the recovery of the housing industry and the over-all economy.

FHA announced changes in the following areas:
The upfront mortgage insurance premium (UFMIP) will increase to 2.25 percent up from 1.75 percent.  Contrary to reports, FHA will continue to allow the financing of the UFMIP.
Borrowers with a credit score below 580 will be required to have at least a 10 percent down payment.  The minimum down payment will remain at 3.5 percent for all other borrowers.
FHA will seek legislative authority to increase the annual premium (currently capped at .55 percent).  Over time, increasing the annual premium may allow FHA to reduce the up-front premium.
Seller concessions will be reduced to 3 percent from 6 percent.

FHA will make the following lender enforcement changes:
FHA will implement credit watch terminations at lender underwriting.
Public reporting of lender performance through scorecard system will be implemented.
FHA will implement, through notice and comment, indemnification against lenders.  Indemnification will be expanded beyond fraud and misrepresentation.
FHA will seek legislative authority to enforce indemnifications against direct endorsed (DE) lenders.
FHA will seek legislative authority to sanction lenders nationwide based on performance of local branch.

This is encouraging news for home loans not only for Placerville, (El Dorado County), California, but nationwide. Hopefully, FHA will also reconsider and change or delete some of their recent regulations that have caused negative impacts, plus new loan processing delays.

      Pros and cons of each should be weighed. Whatever your plans may be – long-term or short-term – consider your resources and analyze what is cost-effective. Do your homework.

     How long do you plan to live in your existing home? If for a short time, focus on what changes or upgrades can benefit you and improve value plus buyers’ appeal. If you’re undecided or thinking it may be a few years, plan your changes yearly based on a 2, 4 or 6-year schedule. Be flexible and ask experts for advice.

     Sell now considerations may also allow opportunities. Everyone’s scenario is different, so really seek knowledgeable assistance and advice from professionals in your area. Perhaps it is better to rent the current home and go to another rental or buy at today’s low prices. Obviously, financing and equity positions need to be carefully analyzed.

     So, plan your work and work your plan!

With a boost from the first-time homebuyer tax credit, the housing market may be headed for a sustainable recovery beginning in 2010, according to NAR’s latest forecast. NAR projects existing-home sales to be 5.01 million in 2009, up 2.0 percent from a year ago, before rising 13.6 percent to 5.69 million in 2010. New-home sales are also expected to rebound, rising from 397,000 in 2009 to 549,000 next year. First-time buyers are leading the recovery, accounting for 47 percent of all home sales over the past year, up from 41 percent from a year ago.

Home prices will begin to stabilize in 2010. “We’ve seen a steady downtrend in housing inventory for well over a year, and home prices appear to be in the early stages of stabilizing,” says NAR chief economist Lawrence Yun. “With expansion of the tax credit to additional buyers through the middle of next year, and no major unforeseen events impacting the economy, home prices should rise between 3 percent and 5 percent in 2010, but with wide geographic differences,” Yun says.

“The Deed for Lease Program provides an additional option for qualifying homeowners who are facing foreclosure and are not eligible for modifications,” said Jay Ryan, Vice President of Fannie Mae. “This new program helps eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities.”

Leases under the new program may be up to 12 months, with the possibility of term renewal or month-to-month extensions after that period. For additional information about the Deed for Lease Program, including full details on program eligibility, please review the Guide Announcement on www.efanniemae.com.

Sounds like an admirable and helpful concept for many families facing foreclosure. However, if the feds are becoming a “National Landlord”, will their next step be renting all the vacant homes they own from foreclosures? That competition with the private sector of landlords and investors who own rental properties would be an interesting dilemma! 

 Freddie Mac released the results of its Primary Mortgage Market Survey® in which the 30-year fixed-rate mortgage averaged 4.98 percent with an average 0.7 point for the week ending November 5, 2009, down from the previous week when it averaged 5.03 percent. Last year at this time, the 30-year FRM averaged 6.20 percent.

“Mortgage rates fell back this week pulling interest rates on 30-year fixed mortgages under 5 percent,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Lower mortgage rates should help homeowners lower their monthly payments and feed the ongoing recovery in the housing market.” For instance, the Federal Housing Finance Agency reported that Freddie Mac and Fannie Mae have financed more than 3.5 million refinance loans during the first nine months of 2009. Freddie Mac estimates that borrowers who refinanced their conventional loan during the third quarter reduced their interest rate by a median of 1.1 percentage points, which will save these borrowers an aggregate of $3 billion in mortgage payments over the next 12 months.

Historic Placerville’s gold country now offers a multitude of colors. Trees, shrubs and native brush come alive with fall’s vivid palette. Highway 50 from Shingle Springs through Placerville to Camino is an excellent tour base, offering numerous side loops and historic sites.
 
 “Apple Hill” orchards, farms, ranches and their restaurants welcome visitors with bakeries and fall harvest treats. Trips can vary from short jaunts to day-long tours from Placerville to the Camino areas north of Highway 50. Gold Bug Mine and the many shops on the Main Street of Placerville offer other attractions. It’s also worthwhile to just drive through the scenic side roads going one way, then back another.
 
Maps and other tourist information are available on web sites or contact us for any questions or assistance. We’ve served the “Mother Lode Country” for over 45 years with all types of real estate services.

Feds Treasury Department announced today, government will buy securities issued by Fannie Mae and Freddie Mac backed by new loan revenue bonds. These would be issued by state and local housing finance agencies. The initiative includes a second component in which Fannie and Freddie will assist state and local agencies to refinance existing bonds to lower their cost. 

California Housing Finance Agencies acting executive director,  Steve Spears, said the initiative will “help revive CalHFA lending programs and give California first-time home buyers a chance to take advantage of the highest affordability levels that have been seen in almost two decades.” 

So is this an indication the current $8,000. credit for first-time home buyers is not going to be extended? Why is the “Housing and Economic Recovery Act” passed last year seemingly only going to first-time buyers?

SAN FRANSICO, August 31, 2009, Realty World has been selected for the 2009 Best of Business Award in the Real Estate category by the Small Business Commerce Association (SBCA)

The Small Business Commerce Association (SBCA) is pleased to announce that Realty World has been selected for the 2009 Best of Business Award in the Real Estate category.

The SBCA 2009 Award Program recognizes the top 5% of small businesses throughout the country. Using consumer feedback, the SBCA identifies companies that we believe have demonstrated what makes small businesses a vital part of the American economy. The selection committee chooses the award winners from nominees based off information taken from monthly surveys administered by the SBCA, a review of consumer rankings, and other consumer reports. Award winners are a valuable asset to their community and exemplify what makes small businesses great.

Small Business Commerce Association (SBCA) is a San Francisco based organization. The SBCA is a private sector entity that aims to provide tactical guidance with many day to day issues that small business owners face. In addition to our main goal of providing a central repository of small business operational advice; we use consumer feedback to identify companies that exemplify what makes small business a vital part of the American economy.

SOURCE: Small Business Commerce Association