Cindi Hagley, Windermere Welcome Home’s Blog

2010 Crystal Ball...

Economists feel that the housing market will be even better for home buyers in 2010, even though Uncle Sam has given fair warning that they may not be as supportive of the mortgage market in coming months.

Reports suggest that three million homeowners are 90 days or more past due on their home loans, which leaves few options for lenders. Since most homeowners are not qualifying for loan modifications (and those that do still have an 80% default rate) the options are either a short sale or a foreclosure. Either option brings substantial more inventory to the market.

There are stimulus plans being considered that will incentive lenders and sellers to pursue a short sale instead of a foreclosure. Rumor has it that the government will offer home owners a $1500 payment at close of escrow when they short sale - with an additional $1000 going to the lenders. It's great for the homeowner....but why are we paying the banks any more money? Haven't they already benefited from the original bailout? Why should we continue to reward bad behavior. I'll table those thought for a future blog...

What does all of this mean? I feel that great real estate buys will continue well into 2010.
If you are thinking of buying a new home, a vacation home, or investment property, it is not too late for an incredible deal.

If you're on the other end of the stick and you need to sell -do it sooner rather than later. There is a shortage of inventory in several cities in the San Francisco Bay Area.

Hey! What happened to the real estate slump???

Yes, I'm talking to you....sitting there in your boxer shorts sipping a Martini and wondering if it's time to hire a Realtor and buy that piece of investment property you've been thinking about for the last three years.

I know, I know...you're trying to time the market...but the only thing the clock is ticking off is the number of days you have left on that $100,000+ CD earning 1% interest. Wake up and smell the fresh paint!

For the third month in a row, the median price of single family homes in the California has increased - up a whopping 4.2% from April to May. And the number of homes are up over 35% year to date. Why?

There are fewer foreclosures currently on the market, and lenders seem to be trickling out their inventory. Less inventory + high demand = higher sales prices;

The California Affordability factor is at an all time high, bringing many first time home buyers to the market;

Interest rates are still at a 30 year low, despite the slight increase over the last couple of weeks.

Will this trend continue? That's left to be seen. Economists say that California will lag behind the rest of the nation when it comes to recovery of the real estate market, so this three month trend looks promising.

Is now the time to buy? It's certainly worth serious consideration!

Naked Real Estate news

I bet that headline got your attention!

I ran into an old friend at the gym tonight, and as we're getting dressed from our showers she looks at me with that I hope you're not on public assistance look in her eye and asks me "how are you doing?"

"Great I replied," looking her directly in the eye. Since we were both naked it would have been uncomfortable looking anywhere else. "I keep hearing how awful the market is," she continued. "Are you able to earn a living?"

Earn a living? Is she kidding me?

I knew exactly what she was referring to...it was a poorly portrayed real estate update that aired on the local news last night. My biggest pet peeve is how local media is portraying the local real estate market. They're quick to quote national figures and seldom contact a knowledgeable local broker or agent to find out what's really going on. There are so many great stories in the market right now, and naked or not, it's my mission to keep folks informed.

"Did you know the average rate on a 30-year, fixed-rate mortgage dropped to 5.14 percent to a new 37 year record low? And mortgage applications last week jumped to the highest level in five years?"

"They didn't mention that on the news," my friend replied.

"There was also an 83.2% increase in sales in November...the December stats will be out soon....I bet they didn't mention that, did they?" I continued.

"No..."

"Did they mention that the First Time Home Buyer Affordability Index increased to 53%....more than double the affordability index from just a few years ago?" I really needed to get dressed. Now there was a crowd gathering and the only thing worse than an impassioned Realtor is a naked impassioned Realtor.

"Why don't they report this?" a sweaty lady in cycling clothes asked. "It sounds like the market is in better shape than most of us think."

"Exactly," I replied. "But good news doesn't get ratings...bad news does."

"Where do I get good news?" she asked, stripping off her clothes. We were up to five naked women participating in the conversation. And at least one of us needed to be clothed. (Me.)

"Talk to your local Realtor," I said. "It's a great time to buy investment property. It's a great time to trade up. It's a great time help your children or grandchildren buy their first home."

And it was a great time for me to get dressed.

Is Local Media Hurting the Real Estate Market?

Is Local Media Hurting the Local Housing Market?

I need to start by saying that I am a former television executive. I was on the sales side...and there is nothing more important to a television station than revenue. High ratings means higher revenue. And you don't get high ratings, especially in news, without a bit of sensationalism.

The bottom line is that no matter what the story is there's usually good news and bad news. But good news does not generate ratings. When real estate prices fall, that's good for buyers and that's what makes markets stabilize and go up again.

Investors should be celebrating right now because there are some cities that are showing dramatic growth. Dallas, for instance, is adding jobs and the real estate market is soft. To me, this is a great opportunity to take advantage of a growing economy and extremely favorable real etstate prices.

Just last week, one of the local Bay Area television stations led with a story that "despite the slumping real estate market, some areas are actually trending up." In reality, there are a lot of neighborhoods in the Bay Area that are showing growth. Why can't the new stations celebreate this great news? Why do we have to lead with "despite the slumping real estate market?"

Here's a challenge to local media - find the story behind these potential headlines:

-California Housing Affordability Index at 44% - an all time high!

-Bay Area real estate a great deal for first time home buyers!

-Where can you buy a 3000+ square foot Bay Area Home, less than 5 years old, for under $400,000?-

-Bay Area 1BR Condos for under $100,000!

-Veterans - Take Advantage of No Money Down Financing

Editors: If you can't find the story, call me and I will provide hard stats for you!

There are great stories and great opportunities in todays market. If you've been sitting back and waiting for the market to "bottom out" before making a move....it's time to make your move now.

How does the new federal housing bill affect you?

The Senate passed a housing bill that will offer up to $300 billion in loans for troubled homeowners and establish a government rescue plan for mortgage finance giants Fannie Mae and Freddie Mac.

The President has rolled over once again - but this time to the benefit of the economy. At first, Bush said he would veto the bill, but after consulting with his "advisers" over Pabst Blue Ribbon and Cheez Whizzy Doodles (ok...this may not be fact, but can't you imagine Bush and his cronies sitting around in their "I Love Librarians" boxer shorts discussing this???) he signed the bill into law.

The bill will take effect October 1st, 2008.

What does all of this mean to you, the consumer?

For Distressed Home Owners

Some folks may be able to cancel their old mortgages with high interest rates and replace them with new fixed-rate loans lasting at least 30 years...with some caveats:

1) New loans would be no more than 90 percent of what the borrower's property is worth currently;

2) Loan must have originated on or before January 1, 2008;

3) The loan must be on the borrower's primary residence;

4) Income verification is required, which might be an issue for subprime borrowers who did not have to disclose their income to receive their current loan;

5) Your housing payment has to no more than 31 percent of your monthly household income;

6) You cannot take out a home equity loan for at least five years;

7) Appreciation made on the home within five years goes back to the government;

8) Fifty percent of any appreciation after five years must go to the government.

For Home Buyers

1) Conforming loan limits increased permanently to $625,000 (great for California!)

2) The bill includes a tax refund for first-time home buyers worth up to 10% of a home's purchase price but no more than $7,500 (The refund, however, serves more as an interest-free loan, since it would have to be paid back over 15 years in equal installments. )

3) The bill eliminates a program that has allowed sellers to provide down payment assistance.

For Veterans

1) Lenders will have to wait nine months, not 90 days, before beginning foreclosure proceeding on homes owned by someone returning from the military.

2) Lenders will have to wait a year before raising interest rates on a mortgage held by someone returning from military service.

How soon will lenders jump on board in support of this legislation and help homeowners avoid foreclosure? Hopefully soon....it's good for the homeowner, good for the lenders, and good for the economy.

Are we there yet???

Are we there yet??? How many times did those words come out of your mouth when you were a kid? Just thinking of that phrase conjures up images of my father driving down the road in a '56 Plymouth station wagon chain smoking Swisher Sweet Specials as all six of us kids tormented him by incessantly asking that very question.

I had the opportunity to be interviewed about real estate by my co-hosts on my radio show the other night. I'd like to say that they find the subject compelling, but in reality, we had a guest cancel and it was either talking about real estate or continuing the conversation of spleen scrapings that started our show. (Believe it or not, it's supposed to be upbeat entertainment....go figure!)

Are we at the bottom yet? Can we really buy a house for pennies on the dollar? Where are the deals now?

I get asked the first question a dozen times a day. And as I continually say, we're not going to know that we are at the bottom of the market until 9 months after the fact. What I do know is that prices are starting to trend up in many Bay Area communities...and that interest rates are also inching up. I believe that the time to buy is NOW.

Buying a home for pennies on the dollar.....it's the insomniacs that watch all of the late night infommercials that ask this question. NO! Lenders are getting much smarter about pricing foreclosed homes. They are starting to price just under the market to generate multiple...and often higher...offers. So don't fire your agent just yet if they haven't been able to get an offer accepted. And for the love of God, go to bed!

Where are the deals now? Any place you want them to be! Hire a Realtor, start looking, and move quickly once you find a home you like. Why are you still sitting here reading my blog??? GO!!!

My favorite buyer story is "my Aunt Selma bought a foreclosed home in XXXXXXX not even a month ago for $90,000." Yes, but the poor woman blew both of her knees out scrubbing the blood spatters and the chalk outline of the body off the walls and floors. Remember that little ditty you keep hearing about location, location, location? Pay attention to it!

You can listen to my show on Radio Outloud every Sunday 7-9PM on 960AM, San Francisco, or listen live online and http://www.radiooutloud.com/.

Cindi Hagley, Windermere Welcome Home’s Blog

2010 Crystal Ball...

Hey! What happened to the real estate slump???

Naked Real Estate news

Is Local Media Hurting the Real Estate Market?

Is Local Media Hurting the Local Housing Market?

How does the new federal housing bill affect you?

Are we there yet???

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