Real Estate news

Using data from a variety of sources, Forbes has compiled a list of the nation’s “riskiest” real estate
markets – which includes San Diego and Sacramento. But, the magazine concludes, there are
signs that improvement may be on the horizon for these two major California markets.
Keep this in mind . . .
• The riskiest markets are those with high foreclosure rates, slow or no job growth, and a glut of
homes on the market. Markets like Detroit, Cleveland, and Miami display all three characteristics.
• By contrast, transactions are rising in San Diego, and that’s a good sign assuming the increase is
sustained. Rising transaction numbers may mean credit is becoming easier to come by and
buyers are looking somewhat more favorably on the market. In fact, Forbes suggests prices also
may begin to rise over the next six months. That’s because there usually is a lag between
increases in transaction numbers and price increases.
• The Forbes report also projects better times ahead for San Diego and Sacramento thanks to a
125 percent increase in Fannie Mae/Freddie Mac conforming loan limits. In San Diego, the report
notes, 18 percent of the market will see improved lending conditions.

HOUSING CRISIS TO EASE IN 2008
UCLA Anderson Forecast Director Edward Leamer had said "The housing market woes are expected to begin easing up by late 2008 and, despite mounting job losses and fuel and food cost increases, the country will avoid a full recession."
"Our no-recession forecast remains nervously intact," said "We see a lot of problems in the first half of 2008 as housing remains a drag on GDP growth and weakness in personal consumption contributes as well. We expect one quarter of negative GDP growth. The Fed continues to dish out good news for Wall Street with ever lower interest rates. The labor market is sluggish and unemployment elevates to 5.5 percent by the end of 2008. But the housing drag on GDP dissipates in the second half of the year and a normal economy returns in 2009."

With his signature, President Bush makes the $168 billion economic stimulus bill official. The package may not prevent a recession, but analysts generally believe it could help suppress an economic crisis.

Bush, who called the measure "a booster shot for our economy," praised the bipartisan cooperation.  he said. Who gets a rebate? Most people who pay taxes or earn at least $3,000, including through Social Security or veterans’ disability benefits. Singles making more than $75,000 and couples with income topping $150,000, however, will get smaller checks, up to the top limits for any rebate: incomes of $87,000 for individuals and $174,000 for couples.

To get any rebate, you must file a 2007 tax return and have a valid Social Security number. If you already filed your 2007 return, the IRS says you don’t need to do anything extra.

Most taxpayers will receive a check of up to $600 for individuals and $1,200 for couples, with an additional $300 for each child. People earning too little to pay taxes but at least $3,000 — including elderly people whose only income is from Social Security and veterans who live on disability payments — will get $300 if single, or $600 if a couple.

To help the severely depressed housing market, the stimulus package would raise temporarily to $729,750 the limit on Federal Housing Administration loans and also raise the cap on loans that mortgage giants Fannie Mae  and Freddie Mac  can buy.

Raising those limits, should provide relief in the market for "jumbo" mortgages — those exceeding $417,000. The credit crunch hit that market hard, making it very difficult, if not impossible, for people to get those loans.

The Mortgage Bankers Association projects economic growth will continue to slow through the first half of 2008, but expects to see signs of a recovery by the second half of the year and resume "trend-like" growth as we head into 2009.

The National Association of Realtors Thursday said that any stimulus package must include an increase in the conforming loan limit, and urged the president and Congress to pass an FHA modernization bill.

The Feds just cut rates 3/4% which is the biggest change in a long time, this will indirectly affect the credit and mortgage rates.

Today a $150 billion economic stimulus package was unveiled by President Bush. The president’s plan to stimulate economic growth would reportedly rely on tax cuts and incentives for individuals and businesses, with about $100 billion in relief such as tax rebates targeted to families and individuals.

Fannie Mae just changed guide lines for conforming mortgage loans as of January 18, 2008. This will affect all conforming loans requiring an additional 5% down payment for purchase loans that are conventional financing. There are many special programs good for low down payment buyers and 1st time buyers, government and state programs, etc. Please go to Financing & Mortgage info for more information.

The real estate climate is changing to tougher qualifying guidelines to prevent future foreclosures, interest rates will drop by February, the prices will level out in the 2nd half. The affordability for a buyer is the best it could be over the next few months. Don’t miss this opportunity before the rates go up again along with the home prices,to lead the U.S. out of the potential recession. If you would like to view all homes, condos or bank owned foreclosures (REO) listed for sale, please visit our website at: County Properties Real Estate. 

This year is starting off with Countrywide and Bank of America joining forces and the first time in history it snowed in Iraq. "Is the glass half empty or is it half full. " When I woke up this morning the news kept raking in havoc about these events, some opinions is typical news of how bad can it get, just to have big bad news event. The truth about these events seem pretty positive. The buyout will make B of A a better bank by joining with Countrywide’s largest home loan platform that originates more loans then other banks, Countrywide will have the backing of B of A financial support.

I heard also comments from an interview about recessionary fears in 2008 saying "we shouldn’t talk about it because the talk would create fear and consumers will hold off on participating in their lives including not spending." Thats true but then on the same interview they started talking doom and gloom on the future housing market. The bottom line is fear sells news and stories, not products and homes. The sub prime mess has started its corrections, the feds will respond by lowering the rates significantly, long overdue. The world economy is still strong. The question is are we going to be paralyzed in fear like a deer in the road when they see headlights coming towards them or start moving forward, buying all these great deals that are out there.

Our company County Properties sells bank owned properties for Countrywide, Wells Fargo and various other banks. We are looking forward to an exciting 2008 of good opportunities for our clients (especially buyers). For more info feel free to move forward and go to our website click here County Properties.

By the way when they first noticed it started snowing in Iraq for that short of time the shooting stopped. This could be the begging of a new kind of miracle the whole world could use.

TAX BREAK FOR MORTGAGE DEBT FORGIVENESS
President Bush signed into law today a new measure giving tax breaks to homeowners who have mortgage debt forgiven. Under preexisting law, the debt forgiven by a lender, such as for short sales and refinances, was generally taxable to the borrower as debt discharge income. With the passage of the Mortgage Forgiveness Debt Relief Act of 2007, a taxpayer does not have to pay federal income tax on debt forgiven for a loan secured by a qualified principal residence.

This tax break applies to debts discharged from January 1, 2007 to December 31, 2009. Qualified principal residence indebtedness is debt incurred in acquiring, constructing, or substantially improving the residence (up to $2 million for refinances).

For purposes of calculating capital gains, any debts discharged excluded from income under the new law must be subtracted from the basis of the taxpayer’s principal residence (but not below zero). However, taxpayers may generally exclude from capital gains income up to $250,000 (or $500,000 for married couples filing jointly) for properties owned and used as their principal residence for at least two of the last five years.

The Fed meets December 11 and will cut short-term rates again.  The legislation being proposed in Washington is spooky, to say the least. Watch the international effect on our Dollar when the rate cut takes effect- especially if Fed chairman Bernanke goes for a full half-point cut.

Banks and lenders are working with homeowners on a case-by-case basis to modify loan parameters in an effort to lower foreclosures. The Federal government is working with major banks to do the same. The target market consists of qualified Borrowers whose adjustable rate mortgages will reset in 2008.

The Consumer confidence Index for November reflects a lowering of expectations in business conditions and the job market.

If you would like to view all homes, condos or bank owned foreclosures listed for sale, please visit our website at: County Properties Real Estate.

Regarding the CA fires, we at County Properties wish everyone well, including their family, friends and neighbors! Active listings on the market last week were at: 21,120 condos/homes, today the count is 20,545 for all of San Diego County and South Riverside County. On 9/12/2006 the count was 25,000. The decrease in inventory based on supply and demand, indicates the market is headed towards a slow change to becoming a balanced market (under 10,000 is a potential sellers market, over 12,000 is a potential buyers market) A balanced market is considered to be six months of housing inventory on hand, which means it would take six months to sell that inventory to zero homes left for sale.

Real estate news is always good for someone, and that someone is any buyer. Fed’s will probably lower short-term interest rates by about a point as its Halloween treat. Mortgage interest rates are tied to mortgage-backed securities, long-term rates may fall significantly by the end of the year.

Before filing an Insurance Claim, your clue report which is a claims history, affects your Insurance Premium. Companies will charge more if you have filed claims in the past. Before filing a claim, its a good idea to ask your agent or the company’s underwriting department how it will affect your premium at renewal time. Some companies will ding your Clue Report for simply inquiring about a possible claim. For less expensive losses, it may be cheaper in the long run to pay for repairs yourself rather than file a claim. This is especially true for repairs that wouldn’t cost much more than the amount of your deductible. At least for now, most consumers should not fear getting dropped by their insurance company. Under California law, insurance companies are required to renew their homeowner policies at least once if they live in a declared federal disaster area. After that term expires, insurers may then drop their clients. Please refer to your insurance agent for details.