Well, as we all know… consumer confidence is quite low and the Fed’s know this also. To stimulate the economy, there is no “Magic Bullet”. The only thing that can help is time and patience. Expect 2008 to end on the downscale and a recovery to occur in some period of 2009. Since the Fed’s know the economy needs a kick-start to stimulate recovery, look for them to cut rates another .50 basis points. They’ll need to use everything they have in their tool kit to get the economy on the positive!

Keeping you updated on the market!

For the week of
October 27, 2008

The Real Estate Report

C.A.R. 2008 Survey of California Home Buyers

Declining home prices coupled with low interest rates prompted more home buyers to purchase in 2008 compared with last year, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) “2008 Survey of California Home Buyers.” Sixty-nine percent of all home buyers reported that price declines encouraged them to buy a home, while 40 percent said that low interest rates enabled them to move to a better location. Seventy-seven percent of first-time home buyers said lower home prices played a role in their decision to purchase a home.

“The housing market has confronted headwinds on several fronts since early 2007,” said C.A.R. President William E. Brown. “Lax underwriting standards that left some subprime borrowers unprepared for rate adjustments, the global liquidity crunch, sluggish economic growth, and higher fuel and food prices are some of the factors that led to the downturn in the housing market.”

“As the housing market dropped sharply from record sales levels set in 2004 and 2005, and prices began to soften, home buyers dramatically changed their attitudes and behaviors towards home buying and adapted to the new housing environment,” he said.

The Internet continued to be an integral part of the home-buying process, with 78 percent of buyers utilizing it to search for a new home and find a real estate agent, compared with 72 percent in 2007. The share of traditional buyers – those who did not use the Internet during the home-buying process – decreased from 28 percent in 2007 to 22 percent in 2008.

Both Internet and traditional buyers spent considerably more time searching for a home with their agent than in previous years, a reflection of the variety of home choices available in today’s market. Internet buyers spent an average of 8.3 weeks looking for a home with their agent, an increase from 5.2 weeks in 2007, and nearly quadruple the number of weeks from two years earlier when Internet buyers spent 2.2 weeks looking for a home. Traditional buyers spent 10.3 weeks looking for a home with their agent, compared with eight weeks in 2007. Traditional buyers also visited nearly twice as many homes with their agent, averaging 23.3 homes, compared with Internet buyers, who visited 12.7 homes.

Due to the high inventory of homes on the market, and uncertainty about the direction of home prices, buyers are more cautious and are moving at a slower pace during the home buying process than in previous years,N Brown said. MThe Internet also continues to play a vital role in this process and has solidified the relationship between REALTORS ® and home buyers.

According to the survey, 72 percent of home buyers either “agreed” or “strongly agreed” that using the Internet helped them better understand the role of real estate agents, and increased their appreciation for real estate professionals and how key they are in the home-buying process. More than half of Internet buyers thought the information their real estate agent provided was more useful than the information they gathered on the Internet. None of the Internet buyers reported that the information they found on the Internet was more useful than the information provided by their real estate agent.

Other key findings from C.A.R.’s 2008 Survey of California Home Buyers include:

  * Internet buyers spent significantly more time considering buying a home before contacting an agent, averaging 8.2 weeks than did traditional buyers, who spent 3.6 weeks.

* Nineteen percent of all buyers were first-time buyers, who spent on average 9.6 weeks with their agent, compared with 5.8 weeks in 2007. Repeat buyers spent 8.5 weeks with their agent in 2008, versus seven weeks in 2007.

ATTN: AGENTS PLEASE GIVE THIS LINK TO YOUR CLIENTS.THE LINK SHOWS THE ENTIRE HOME INSPECTION PROCESS AND EVERY PART OF THE INSPECTION.IT WILL HELP YOUR CLIENTS UNDERSTAND THE HOME INSPECTION PROCESS.

http://www.ashi.org/customers/vhi/vhi.htm

INFORMATION PROVIDED BY IN-DEMAND PROPERTY INSPECTION.

IN-DEMAND PROPERTY INSPECTIONS CONTACT INFO.

DIRECT(415)760-6040 SEVAN TELLEZ

DIRECT(916)870-4588 ALFREDO TELLEZ III

DIRECT(916)662-1924 ALFREDO TELLEZ JR. HABLA ESPANOL

INDEMANDPROPERTY@GMAIL.COM

(Property Inspectors)

The above inspector has been professionally trained to perform home inspections in a licensed home inspection training programs, provided by Inspection Training Associates, the National leader in home inspection training. ASHI and CREIA endorsed.

 Hello Elite,

As promised, I will continue to provide my fellow Real Estate Professipnals with news that affects our industry.

Yvonne Nelson

Fidelity National Home Warranty and Disclosure Source

800-308-1424 ext 3518

**************************************************************************************************************

A BETTER GREEN HOME INSPECTION COMPANY

Our company has partnered with a State Licensed Termite Inspection Company for you convenience.

(Buyers, Sellers and Agents)

Also every inspection shows you how to make your home a Greener Home. We provide over 35 pages of information on how to cut costs from Heating and Cooling to Duct Sealing and Programming of Thermostat to save money. Our reports are computer generated with summary of all issues and photos The report will be completed within 24 hours and sent to you via e-mail, mail, or fax.

In-Demand Property Inspections is a Green Premier Residential & Green Commercial Inspection Company. We offer our services for the concerned & well informed smart home buyer or sellers. We provide comprehensive, professional, and thorough inspections. We have 2 offices for your convenience; one in the Sacramento Valley and one in the SF Bay Area.

The purchase of a new home is the single most important investment you will ever make in your lifetime. The misfortune of discovering a defect after becoming the owner could be very frustrating and costly. We have the practical and professional experience that assures an accurate and honest evaluation of your prospective home or the home you will be selling. Through the scrutiny of a professional home inspection, we will evaluate the various systems and components of the house, while objectively sharing our information and experience with you during the process. The inspection will report on all accessible structural, mechanical an electrical systems that comprise the building and grounds including:

WASTE DISCHARGE SYSTEM

 IN-DEMAND PROPERTY INSPECTIONS CONTACT INFO.

DIRECT(415)760-6040 SEVAN TELLEZ

DIRECT(916)870-4588 ALFREDO TELLEZ III

DIRECT(916)662-1924 ALFREDO TELLEZ JR. HABLA ESPANOL

INDEMANDPROPERTY@GMAIL.COM

The above inspector has been professionally trained to perform home inspections in a licensed home inspection training programs, provided by Inspection Training Associates, the National leader in home inspection training. ASHI and CREIA endorsed.

(Property Inspectors) 

1.How In-Demand Property Inspections helps Lending Agencies and Realtors.

By releasing liability for the Lending Agencies and Realtors.

2.Pre-Sales Inspection why they help.

Homes with Pre-Sales Inspections sell faster than homes with out. First offers are taken.

3.Call and interview the inspector.

We are easy to communicate with, in a professional and business like manner. Mature and conscientious inspectors give you the feeling of genuine empathy and are sincerely interested in providing as much information on the property in question. You are paying for quality inspecting and communication.

4.Search for the most qualified inspector you feel most comfortable with, and pay the requested price.

This is probably the most important and largest purchase of your life. Do not pass up the opportunity of using less than the best because of price. Good inspectors know what they are worth and so should you.

5.It’s a brand new home. There won’t be any problems.
Maybe in a perfect world. New construction isn’t always problem-free. We have found many problems in new homes.

Keeping you updated on the market!

For the week of
October 20, 2008

Housing markets never stay down, they come back. Is now the time to buy?

Yes, right now the housing market is battered and bruised. Loans are harder to get, some areas are still in decline, sellers are stressed and buyers are hesitant.

So how did we get to this point?

Post 9/11 the housing market enjoyed robust appreciation, almost 46% - perhaps too much, too soon, too fast. Thousands of first time buyers found access to easy financing and many should or would have never qualified in a saner world. Meanwhile, the global thirst for yield and the creativity of Wall Street pushed the demand to buy riskier loans.

So investors demanded, Wall Street created, bankers loosened, brokers complied, buyers signed and we all roared with praise and approval.

But alas, most commodities including houses are prone to cycles. Yet a boom is not a bubble, land is permanent, limited and in demand – we can live without stock (the tech bubble) but we all need a place to live. So rapid rates of appreciation are great but they’re not perpetually sustainable. The history of real estate proves this. At the same time, declines of great magnitude are limited and largely constrained to where foreclosures and short sales are the majority of the current market. And remember, not all areas are in decline.

So what direction is up?

There is nothing wrong with getting on the train at the station; just make sure it takes you where you want to go. Remember, the statistics you see are all one year versus the prior year and they take on big generalities (whole states, whole counties). Instead, you must look at specifics to get a real feel for the market: the area you are in or looking to buy in, the inventory, the sales, how prices are holding, is lending available, etc.

By the numbers – they tell the Real Story

No one can truthfully say housing has appreciated at an average annual number of “X” then say this month is off by 8% compared to last year. Why? Housing numbers are not only cyclical, they are seasonal to boot. And statistics need to compare “like periods” to be realistic. As for foreclosures; yes, there may be close to 2 million homes going into foreclosure but there are 110 million homes in this country and 46% of those homes areowned free and clear.

Also, in the San Francisco Bay Area, annual appreciation has been 8.4% adjusted for inflation taking into account good markets and bad. Lastly, real estate has the “power of zero.” Every 30 years history has added a zero. Example:

Year Home Cost

1906 $200

1936 $2,000

1966 $20,000

1996 $200,000

2020 $2,000,000 projected

Example: Rentals in San Francisco Bay Area

Year Rent

1906 $10

1936 $100

1996 $1,000

2026 $10,000 projected

Let’s just look at the facts. Prices have fallen in many areas, home sellers are abundant, interest rates are still low, the vast majority of foreclosures are concentrated in 5 states, fear and panic can drive the market but at this point, is it driving us in the right direction?

Remember, there are two sides to every transaction – one selling, one buying. And right now the market favors the buying side. So while many will avoid the market, some will realize the time is right. Why? Get in; get all the tax benefits, give it time to appreciate (at 3-5 years) and you’ll do fine. Others will look back and say “if only we had bought back then.”

Bank of America Settles Suit, Will Modify Loans

An estimated 125,000 Californians who are struggling with risky mortgages

from Countrywide Financial Corp. may get their loans modified and payments reduced under a program to be announced today. The program could reduce Countrywide borrowers mortgage payments. Loans could be reworked and made more affordable. That could include switching customers to fixed-rate loans or reducing the interest or principal.

Bank of America said Countrywide mortgage-servicing employees would be trained to carry out the program by Dec. 1 and would then begin reaching out to eligible customers. The plan includes a foreclosure freeze for borrowers who are likely to qualify until Countrywide has determined their eligibility, the bank said.

The settlement includes a program for California borrowers who are behind on their Countrywide mortgage payments or are having their homes foreclosed by the lender. The program, to be announced today by California Atty. Gen. Jerry Brown, applies to mortgages made before this year.

The program will first identify customers who have fallen behind on their mortgages by more than 60 days or are likely to do so because of loan features such as rate or payment increases. These customers will be contacted by Countrywide starting Dec. 1.

Various options will be considered for eligible customers, with employees handling the workouts instructed to first consider refinancing into a fixed-rateFederal Housing Administration loan.

The options on subprime mortgages also include keeping the initial rate for five or 10 years, having the borrowers pay interest only and reducing the interest rate to as low as 3.5%.

For pay-option loans, many of which now amount to more than the borrower’s house is worth, the options include writing the principal down to 95% of the home’s current appraised value and lowering the interest rate to 3.5%.

Part of my job and due diligence as Assistant Vice President and Senior Account Manager for 10 years with Fidelity National Home Warranty and Disclosure Source NHD Reports is to bring my clients and real estate professionals newsworthy industry related facts, news, information, market trends and value.

Sharing of information gives us all the ability to help our past, present and future clients make intelligent and knowledgable real estate decisions.

Check my post often. As I get "Hot off the Press" news of value I will pass it along to my fellow real estate professionals.  Lets all stay on top of our game and well informed.  I would love to read your information also.

Yvonne Nelson

Assistant Vice President

Fidelity National Home Warranty and Disclosure Source

800-308-1424 ext 3518

www.homewarranty.com

www.disclosuresource.com

*************************************************************************

On October 3, 2008, President Bush signed into law the "Emergency Economic Stabilization Act of 2008." This bill extended tax credits for energy efficient home improvements (windows, doors, roofs, insulation, HVAC, and water heaters). Tax credits for these residential products, which had expired at the end of 2007, will now be available for improvements made during 2009. However, improvements made during 2008 are not eligible for a tax credit.

The products that are covered by the tax credit in 2009 include:

• insulation
• windows (including storm windows)
• skylights
• doors (including patio & sliding glass)
• metal roofs
• asphalt roofs
• Central air conditioners
• Air source heat pumps
• Geo-thermal heat pumps
• Gas, Oil, or Propane Furnace or Hot Water Boiler
• Advanced Main Air Circulating Fans
• Gas, Oil or Propane Water Heaters
• Electric Heat Pump Water Heaters
• Solar Water Heaters
• Photovoltaic Systems (solar panels)
• Fuel Cells

Products not covered by the tax credit included:

• refrigerators
• dishwashers
• clothes washers
• Room air conditioners
• Ceiling fans
• Programmable thermostats

For more information on products covered by the tax credit, visit www.energystar.gov/taxcredits

Yvonne Nelson                                                                                    

Assistant Vice President

Fidelity National Home Warranty and Disclosure Source

800-308-1424 ext 3518

www.homewarranty.com

www.disclosuresource.com

WE PROVIDE PRE-LISTING , BUYER HOME INSPECTIONS AND TERMITE INSPECTIONS

Our company has partnered with a State Licensed Termite Inspection Company for you convenience. (Buyers, Sellers and Agents)

Also every inspection shows you how to make your home a Greener Home. We provide over 40 pages of information on how to cut costs from Heating and Cooling to Duct Sealing and Programming of Thermostat and Tank Less Water Heaters to save money. Our reports are computer generated with summary of all issues and photos The report will be completed within 24 hours and sent to you via e-mail, mail, or fax.

In-Demand Property Inspections is a Premier Green Residential & Commercial Inspection Company. We offer our services for the concerned & well informed smart home buyer or sellers. We provide comprehensive, professional, and thorough inspections. We have 2 offices for your convenience; one in the Sacramento Valley and one in the SF Bay Area.

IN-DEMAND PROPERTY INSPECTION CONTACT INFO

SEVAN TELLEZ 415-760-6040

ALFREDO TELLEZ III 916-870-4588

INDEMANDPROPERTY@GMAIL.COM

Mortgage Rate Outlook

Measures of consumer moods recently moved off lows, following the decline in gas prices. During September, the Conference Board’s review of Consumer Confidence ticked up to a reading of 59.8, up from August’s 56.9 level and exhibiting mild but steady improvement off June’s lows.

If job markets continue to decline, such optimism may grow harder to find. Weekly unemployment claims rang in at a hurricane-goosed 497,000 for the week ending September 27, but regardless of the reason, new claims remain high. As well, while the loss of jobs during this downturn has been mild compared to historical patterns, it does seem to be deepening.

In September, the economy shed 159,000 jobs, the ninth consecutive month of job losses, now nearly at an accumulated 750,000 since the turn of the year. The nation’s unemployment rate remained at 6.1% for the month, but given the gyrations in financial circles over the past fourweeks, and other markets so dependent upon them, more layoffs seem destined to come.

Now that we’ve got a "rescue" or "support" plan in place – please don’t call it a "bailout" — where do we go from here? Financial conditions should be improving, at least slightly, in the weeks ahead; inflation seems to be waning, at least for the moment, and markets have been flooded with liquidity, not that it’s making it out to main street just yet.

 We’re hopeful that it will; in these times of unprecedented government moves to kick-start markets, it’s no longer too far-fetched to think that more aggressive and direct government moves into other areas of lending can’t occur, if the banks remain unwilling or unable to do it. More likely, pressure will be exerted to get things moving, even if rates don’t fall right away. We’ll see where that goes.