BellaMarinHomes.com

Tax Credit Extended!

2010-07-01T13:30:00.000-07:00

Just about two hours ago, in the 25th hour, the Senate concurred with the House and passed the stand-alone bill to extend the first time home buyer's tax credit so buyers can still take advantage of the credit up to September 30, 2010. This is ONLY for buyers who were already in contract at the April 30, 2010 deadline--the assumption is that it will only benefit about 180,000 buyers who are currently in short sale transactions and have not received final approval so that they can close escrow. Full Article

First Time Home Buyer Tax Credit Extension?

2010-06-18T16:31:00.000-07:00

The Senate has approved extending the "close dates" on transactions where buyers, who qualify for the FTHB tax credit, will receive another 3 months, until September 30, 2010, to close those transactions that qualify for the tax credit. This does NOT give buyers who got into contract after April 30th any benefit, and, in truth, the estimates are that it will only affect approx. 180,000 first time homebuyers.

It is, however, good news for those who may be waiting on approvals for short sale transactions and who were in contract prior to April 30th but are unlikely to close by June 30th.

Please note, this has been sent to the House of Representatives, so final approval will rest with their vote, expected next week.

MARKET FLASH

2010-05-14T19:20:00.000-07:00

If annual trends hold this year, May should be a strong month for real estate. According to Lawrence Yun, NAR’s chief economist, there is a broad home sales recovery occurring in nearly every part of the country. Two trends to note are that sales have been above year-ago levels for the past 9 months while inventory has trended down from year-ago levels for the past 20 months.

What fed this growth? The home-buyer tax credit that was in effect until the end of April is being credited for preserving up to $1 trillion in housing wealth, according to Yun. Single-family home sales are over 13% higher than a year ago.

Home prices have stabilized and mortgage interest rates are historically low. There is a sense that the market is turning and conditions are optimal in most of the country.

New EPA law for House built prior to 1978

2010-04-09T10:48:00.000-07:00

There is a new federal statute requiring contractors to be certified in order to do remodeling work on properties built prior to 1978. This will affect those of you who hire people to work on properties in preparation for sale. Full details here: http://www.epa.gov/lead/pubs/renovaterightbrochure.pdf

Growth!

2010-03-15T19:17:00.000-07:00

March 15 (Bloomberg) -- The U.S. housing market is poised to withstand the removal of government and Federal Reserve stimulus programs and rebound later in the year, contributing to annual economic growth for the first time since 2006.

An Easy Answer

2010-03-11T11:22:00.000-08:00

Today at our meeting I was asked what I have done to become a successful Realtor. I replied: "I really haven't done anything but be myself."

It reminded me of a quote from my favorite, Dr. Seuss: “Today you are You, that is truer than true. There is no one alive who is Youer than You.”

Cheers,

-Mike

Mike gets global recognition from 2009 Premier Club

2010-02-27T08:58:00.000-08:00

On Wednesday I received an award from The 2009 Premier Club. The Premier Club is a sales associate recognition program that identifies referral achievement in the Leading Real Estate Companies of the World® which we (Alain Pinel) are a member. I'm very appreciative of this recognition and thanful for all your support. I look forward to helping you and your families for years to come. -Mike

Bernanke's Announcement on Rates!

2010-02-12T08:57:00.000-08:00

The days of awesome interest rates are soon ending according to Bernanke's announcment. Click here for the article.

How does your home score? WALK SCORE!

2010-02-06T13:06:00.000-08:00

Walk Score is a fun website that calculates the proximity of your home to services, restaurants, entertainment, public trasportation and more. How does your home score? Check it out: www.walkscore.com

Building Permits. WITH or WITHOUT?

2010-02-02T10:56:00.000-08:00

WITH! Please do your projects WITH PERMITS! Yes, I am shouting here!
A few good reasons to pull permits:

1. If there are any alterations, repairs or additions discovered that are not indicated on a parcel the Seller might be liable to pull the required permit(s) and pay late fee(s).

2. Sellers are required to disclose any work done on a property with and/or without permits to perspective Buyers. Sometimes Buyers are OK with non-permitted work, sometimes they aren’t!

3. If work done without permits is not to current building standards or code, the Seller might be liable to correct it. This can be costly depending on the scope of work.

4. Some areas have a required City Resale Inspection Report to be performed on the property before it can be sold.

OK, I’m done shouting now. Phew!

"Move-Up" Tax Credit

2010-01-30T09:41:00.000-08:00

Who is eligible to claim the $6,500 tax credit?
Qualified move-up or repeat home buyers purchasing any kind of home are eligible to claim this credit.
What is the definition of a move-up or repeat home buyer?
The law defines a tax credit qualified move-up home buyer (“long-time resident”) as a person who has owned and resided in the same home for at least five consecutive years of the eight years prior to the purchase date. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. That is, both spouses must qualify as long-time residents, with at least five years of principal residency for each. Repeat home buyers do not have to purchase a home that is more expensive than their previous home to qualify for the tax credit.
How is the amount of the tax credit determined?
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500. Purchases of homes priced above $800,000 are not eligible for the tax credit.
Are there any income limits for claiming the tax credit?
Yes. The income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) above those limits. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $145,000 (single) or $245,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.

New GFE & HUD-1

2010-01-24T13:04:00.000-08:00

The feds now require a multi page GFE & HUD-1. It's intended to provide clarification of fees but expect a very confusing form. Make sure your escrow officer and Realtor are on top of any fee adjustments as it will now take longer to amend the GFE and likely required loan docs to be redrawn, causing a delayed close of escrow!

Just for fun: December 2008 & 2009 SOLD #’s

2010-01-20T19:22:00.000-08:00

Marin County Single Family Residence SOLD
December 2008: 91
December 2009: 176

Marin County Condo’s/Townhouse SOLD
December 2008: 36
December 2009: 44

Sonoma County Single Family Residence SOLD
December 2008: 413
December 2009: 355

Sonoma County Condo’s/Townhouse SOLD
December 2008: 59
December 2009: 80

Big Banks, Short Sales, Kick Backs and Fraud

2010-01-17T17:41:00.000-08:00

Here's an interesting online article from CNBC about naughty short sale practices. When will they learn? Here's the link: http://bit.ly/ssfraud

Is This The Start?

2010-01-13T09:45:00.000-08:00

As we move further away from the holiday's sellers and buyers start to make decisions. Last week mortgage applications in the U.S. rose 14%, with refinancing up 22% and purchases up .8%.

How was 2009?

2010-01-08T13:55:00.000-08:00

As we are in the New Year many friends have asked “how many sales did you do this year?” It was wonderful, 14 successful transactions this year. Pretty good in this market for sure. It’s funny though, I don’t think of what I do as “sales”. I naturally take the approach of helping families achieve their real estate goals by providing credible information, market stats and guidance they need to make informed decisions whether purchasing or selling. So yes, I did 14 transactions but I didn’t “sell” anything.

What does 2010 have in store for us? Well, hard to know but stats are looking up and we all hope for a continuing stabilizing market. I should have my Q4 stats and enewsletter to you by the end of January.

Until then – be good and don’t hesitate to contact me if you need anything.

Cheers,
Mike

LOVE

2009-12-31T16:35:00.000-08:00

Proposed Changes to FHA Lending Guidlines

2009-12-04T12:37:00.000-08:00

Testifying before the Housing Financial Services Committee yesterday, Secretary of Housing and Urban Development (HUD) Shaun Donovan announced possible policy changes for Federal Housing Administration’s (FHA) borrowers.Rising defaults on FHA loans have led to the FHA’s cash reserves falling below federally mandated levels. FHA officials hope that policy changes will ensure borrowers have a stronger equity position and are less likely to default.Proposed changes include:· Raising the minimum credit scores requirements: Currently borrowers with FICO scores as low as 500 may qualify for an FHA-insured loan. The new minimum credit score has yet to be determined.· Increasing down payment requirements: FHA borrowers currently can put down as little as 3.5 percent. A proposed change would raise that amount to a minimum of 5 percent.· Limiting the amount sellers can provide as concessions: The agency is considering lowering the maximum permissible level to 3 percent from its current 6 percent limit.· Raising up-front insurance premiums: Agency staff is reviewing whether to increase the monthly insurance premiums charged to borrowers, which come on top of insurance paid up front. The current up-front premium is set at 1.75 percent of the value of the loan. The FHA may decide to increase that premium. The amount has yet to be determined.According to Donovan, the rules will not be finalized until the FHA determines how to craft them in a way that weeds out the most problematic borrowers while ensuring that qualified borrowers will not be inadvertently shut out, thereby derailing the housing market's recovery.Fore more information about the changes to FHA borrowers, please visit the following:
Wall Street Journal: FHA Considers Ways to Boost Its Reserves
Washington Post: HUD chief defends efforts to aid borrowers
Los Angeles Times: Home buyers will have to lay out more cash for an FHA mortgage

Home sales contracts rise in October

2009-12-01T11:35:00.000-08:00

Hello!

I thought this fresh article by Les Christie, CNNMoney.com staff writer is well worth sharing:

National Association of Realtors index spikes 32% as buyers take advantage of first-time homebuyer tax credit.

NEW YORK (CNNMoney.com) -- Americans are inking a lot of deals to buy homes.
In October the National Association of Realtors recorded an unprecedented ninth consecutive month of increases in the number of signed contracts.
Although these are not closed sales, and some deals can fall through, signed contracts are a good indicator of where the housing market is headed.
Between September and October NAR's Pending Home Sales Index rose 3.7% to 114.1 from 110 in October. But the index is 31.8% higher than a year ago, when it was 86.6. That's the biggest year-over-year gain in the history of the index.
The PHSI is also at its highest level since March 2006, and the rise confounded expert expectations. A panel of industry analysts put together by Briefing.com had forecast a 1% drop in new contracts.
NAR's chief economist, Lawrence Yun, gives much of the credit for increased sales to the homebuyer's tax credit, which first-time homebuyers could claim to reduce their taxes by up to $8,000.
"The tax credit is helping unleash a pent-up demand from a large pool of financially qualified renters, much more than borrowing sales from the future," Yun said in a prepared statement.
The credit had been due to lapse on Dec. 1, so many October buyers may have acted to get in under the wire.
However, the credit has been extended through the middle of 2010 and expanded to include many move-up buyers. The housing industry hopes that will keep sales perking until the economy picks up and markets return to a more normal condition.
In a related story, the Census Bureau reported that private residential construction spending surged 3.9% during October.
Yun cautioned, however, that housing market indicators, such as pending sales, may weaken over the next few months.
"The expanded tax credit has only been available for the past three weeks, but the time between when buyers start looking at homes until they close on a sale can take anywhere from three to five months," he said.
"Given the lag time, we could see a temporary decline in closed existing home sales from December until early spring when we get another surge," he added. "But the weak job market remains a major concern and could slow the recovery process."
The good news is that number of homes on the market has declined, removing some of the bloat that has depressed prices. There is now a seven month supply of homes on the market at the current rate of sale. which is down from 10.2 months a year ago. Yun predicted that housing conditions could return to near normal and home prices firm up by mid-2010.
"That would mean broad wealth stabilization for the vast number of middle-class families," he said.

Extension of Conforming Loan Limits Through 2010

2009-11-03T11:54:00.000-08:00

LOS ANGELES--(BUSINESS WIRE)--The U.S. Congress late yesterday passed a congressional resolution extending through 2010 the current conforming loan limits of $417,000 for most areas in the U.S. and $729,750 for high-cost areas, including many in California. President Obama is expected to sign the resolution today or tomorrow as part of a broader piece of budgetary legislation that will prevent a government shutdown.
The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) and the NATIONAL ASSOCIATION OF REALTORS® (NAR) have long advocated making permanent higher conforming loan limits. As a result of C.A.R.’s and NAR’s efforts, a provision of the Housing and Economic Recovery Act of 2008 included temporarily raising the conforming loan limits from $625,500 in high-cost areas to $729,750 and extending the limits through 2009. Yesterday’s actions effectively extend the higher conforming loan limits for Fannie, Freddie, and FHA loans through 2010.
“There is no doubt that higher loan limits and the federal tax credit for first-time home buyers have helped stabilize California’s housing market over the last year,” said C.A.R. President James Liptak. “C.A.R. applauds our congressional representatives for their actions to extend the higher loan limits through 2010. They now should focus on making higher loan limits permanent.”
The conforming loan limit determines the maximum size of a mortgage that Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac can buy or “guarantee.” Non-conforming or “jumbo loans” typically carry higher mortgage interest rates than conforming loans, increasing monthly payments and hampering the ability of families in California to purchase homes by making them less affordable.

Quarterly Newsletter on its way!

2009-11-01T09:02:00.000-08:00

Hello friends!

My Quarterly Newsletter is on it's way this week. Be on the lookout!

Senators likely to extend tax credit to end of April 2010

2009-10-29T16:53:00.000-07:00

Many of the top Democrats and Republicans expressed support this week to extend or expand the soon-to-expire buyer tax credit.

Most agreed to extend the $8,000 first time home buyer tax credit. Additionally, they plan to expand a $6,500 tax credit to home owners who have been in their home for at least 5 years if they purchase a new primary residence. This is very big news for buyers who thought that ship sailed!

They will also consider making the tax credit available for individuals making up to $125,000/yr and couples making $250,000/yr. This is up from $75,000 and $150,000 respectively. Sweet!

The extension and improvement of the tax credit has a ton of support but still needs to be signed. It's not a done deal yet!!

Baton down the hatches!

2009-10-10T18:50:00.000-07:00

The National Weather Service has issued this special statement for Marin county. Be sure to clean out those gutters, cover your patio furniture and do other winter preparations around the house - early!
... HEAVY RAIN AND POTENTIALLY HIGH WINDS EXPECTED TO ACCOMPANY A SIGNIFICANT STORM EXPECTED TO HIT LATE MONDAY INTO EARLY WEDNESDAY OF NEXT WEEK...
A POTENT STORM SYSTEM... ESPECIALLY FOR OCTOBER... WILL MOVE INTO CENTRAL AND NORTHERN CALIFORNIA BEGINNING LATE MONDAY AND CONTINUING THROUGH WEDNESDAY MORNING. THIS WILL BE A VERY DRAMATIC CHANGE FROM THE TYPICAL LATE SUMMER PATTERN THE AREA HAS BEEN EXPERIENCING. THE ORIGINS OF THIS STORM STEM FROM A WESTERN PACIFIC TYPHOON NAMED MELOR THAT HIT JAPAN A FEW DAYS AGO.

Congress might extend frist-time buyer rebate

2009-10-01T08:06:00.000-07:00

The real estate industry in California and across the nation is lobbying Congress to extend the credit through next summer. Members of the House and Senate have proposed more than 20 bills to extend and/or expand the credit.

U.S. home prices rise 0.3 percent in July

2009-09-24T21:12:00.000-07:00

U.S. home prices rose slightly in July from a month earlier, according to a government index, further evidence the housing market is stabilizing. Lets hope it continues. Crystal ball anyone?

Real Estate Finance Update

2009-09-23T11:32:00.000-07:00

The proportion of first-time buyers was high compared to levels seen in the past few years, but whether the concentration of first-time buyers in the current cycle can be maintained depends in part on underwriting standards. The ability of first timers to capitalize on lower home prices has been hampered by tighter lending standards, which heighten the difficulty for a typical first-time buying household to qualify for a loan.

Level of Difficulty in Obtaining Financing

Tighter underwriting standards led to more scrutiny in the process of mortgage application approval. Home buyers experienced a high level of difficulty in obtaining financing for the homes they bought. On a scale of “1” to “10”, with “1” being “very easy” to obtain financing and “10” being “very difficult”, home buyers on average had a level of difficulty in obtaining finance of 8.1. Twenty-seven percent of all buyers responded with a “10”, and 31 percent responded with a “9”. Only 13 percent responded with a “5” or below.

• Home buyers who bought an REO or a bank-owned property experienced the highest level of difficulty in obtaining financing. They rated the level of difficulty an 8.9, compared to a 7.7 for home buyers with a regular market sales, and a 7.6 for short sale home buyers.
• Repeat buyers reported the average rate of difficulty at 8.3, as compared to 7.9 for first-time buyers.

Home Buyer Tax Credit

2009-09-21T14:55:00.000-07:00