Real Estate Reality in Orange County

Property Tax Bill, Financial Planning and More...

teresamihelic@realtyexecutives.com (Teresa Mihelic) — Mon, 15 Mar 2010 23:29:00 GMT

Appeal Your Property Tax Bill

To successfully appeal your property tax bill, you first need to do a bit of sleuthing into your real estate assessment. Read
A Financial Plan for Your Home

Your home is probably the biggest investment you’ll ever make. Create a financial plan that takes into account repairs, upgrades, mortgages, insurance, and taxes. Read
Create a Home Emergency Preparedness Kit

Having a home emergency preparedness kit could be the key to your family’s safety if disaster strikes. Read
Homeowners Insurance: Time for an Annual Check-Up

An annual check-up on your homeowners insurance can result in a healthier policy and a healthier pocketbook. Read
Your CLUE Insurance Report Matters

Your CLUE insurance report keeps your homeowners insurance claims alive for seven years—and that could cost you on your premiums. Read

Visit houselogic.com for more articles like this.

How does the new 2009-2010 Tax Credit for Homebuyers work?

teresamihelic@realtyexecutives.com (Teresa Mihelic) — Fri, 06 Nov 2009 22:58:00 GMT

President Barack Obama signed the homebuyer tax credit into law today, extending the popular $8,000 credit for first-time homebuyers.

The credit, which was to expire at the end of this month, will be available through next June as long as the buyer signs a binding contract by the end of April.

•The program is expanded to include a $6,500 credit for existing homeowners who buy a new place after living in their current residence for at least five years.

Click on the link below for the new guidelines on this credit:

Homebuyers Tax Credit Guidelines 2009-2010

Congress giving homebuyers a big new tax break

teresamihelic@realtyexecutives.com (Teresa Mihelic) — Thu, 05 Nov 2009 21:45:00 GMT

Extracted on 11/05/09 on yahoo.com

WASHINGTON – Missed out on Cash for Clunkers? Congress has another deal for you: Buy a home before May 1 and collect up to $6,500 from the government. If you're a first-time homebuyer, get up to $8,000.

As part of the government's efforts to encourage people to spend money to help revive the economy, the House voted 403-12 Thursday to expand a popular tax credit for homebuyers. The bill, which also extends unemployment benefits and expands a tax break for money-losing businesses, now goes to President Barack Obama, who plans to sign it Friday.

First-time homebuyers have been getting tax credits of up to $8,000 since January as part of the economic stimulus package. But with that housing program scheduled to expire at the end of November, the House voted to extend it into the spring — and to expand it to many people who already own homes.

Buyers who have owned their current homes at least five years would be eligible, subject to income limits, for tax credits of up to $6,500. First-time homebuyers — or people who haven't owned homes in the previous three years — could get up to $8,000. To qualify, buyers have to sign purchase agreements before May 1 and close before July 1.

"It's huge. I think it's going to have a big impact," said Patti Ketcham, who owns a real estate firm in Tallahassee, Fla. "I hope I'm right. Golly, I hope I'm right."

Like housing markets across the country, Tallahassee's has been depressed since even before the nation's economy plunged into recession. There was no huge boom and bust like there was in many coastal areas, Ketcham said, "but ask anybody trying to sell a house and they'll tell you it's been no fun."

The credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible. The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.

Real estate agents say the first-time homebuyers' tax credit that's already in effect has boosted sales, much in the same way the Cash for Clunkers program increased auto sales last summer by paying car buyers as much as $4,500 for exchanging their old gas guzzlers for new, more fuel efficient models.

The agents hope the expanded housing credit will help stabilize housing markets during typically slow sales months in the winter. Today, many would-be buyers are still worried that home values could drop further, said Lawrence Yun, chief economist at the National Association of Realtors.

"Once the consumer fear factor disappears, then housing can move into a sustainable recovery," Yun said. "I think we will be there by the middle of next year."

Yun said the tax credit has helped to increase demand and reduce inventory, enabling sellers to get higher prices than they would have otherwise.

About 1.4 million first-time homebuyers had qualified for the credit through August. The Realtors estimate that 350,000 of those buyers would not have purchased their homes without the credit.

The real estate industry, including Realtors, home builders and mortgage bankers, have lobbied hard for the expanded tax credit. Lawmakers said the program will not be extended again.

Critics say the tax credit is poorly targeted because the vast majority of people receiving it would have bought homes anyway.

"Essentially we're giving money to people for doing nothing different," said Ted Gayer, co-director of economic studies at the Brookings Institution, a Washington think tank.

But Susan Marvin, who owns Marvin Windows and Doors in Warroad, Minn., near the Canadian border, said the economic benefits can be broad. She said, "If people are buying a home, they are far more likely to replace products or upgrade products."

Extending and expanding the tax credit for homebuyers is projected to cost the government about $10.8 billion in lost taxes.

The credit is equal to 10 percent of the purchase price of a primary residence, up to a maximum of $8,000 for first-time homebuyers and $6,500 for others.

Taxpayers can claim the credit on their federal income tax returns. If the credit exceeds their tax bill, the government will issue a payment. Taxpayers who want immediate refunds can amend their tax returns for 2008 to claim the credit.

Also on Thursday, the government-controlled mortgage company Fannie Mae announced a new program that could allow thousands of borrowers on the verge of foreclosure to have the option of renting their homes for a time from the company.

But the effort is likely to affect a relatively small number of people in comparison to the number of homes being repossessed.

The homebuyers tax credit is one of two tax breaks totaling more than $21 billion that were included in a bill extending unemployment benefits for those without jobs for more than a year. The other tax break would allow money-losing companies to use current losses to offset taxable profits earned in the previous five years.

That break would help industries that have suffered big losses in the recession, including retailers, homebuilders and newspapers.

Expanding the tax credit for money-losing companies is projected to cost $10.4 billion.

The tax breaks would be paid for largely by delaying a tax break for multinational companies that pay foreign taxes. It was passed in 2004 and originally was to have taken effect this year, but would now be delayed until 2018.

The bill is H.R. 3548.

___

On the Net:

Congress: http://thomas.loc.gov

Homebuyer Tax Credit Plan Agreed to by U.S. Senate Democrats

teresamihelic@realtyexecutives.com (Teresa Mihelic) — Wed, 04 Nov 2009 20:21:00 GMT

Extracted from Bloomberg.com:

Oct. 30 (Bloomberg) -- The U.S. Senate won’t vote until next week at the earliest on proposals to extend both an $8,000 tax credit for first-time homebuyers and unemployment benefits for the nation’s jobless. The administration endorses an extension.

Senate action was delayed by a Republican demand that a vote be allowed on an amendment to end the Treasury Department’s Troubled Asset Relief Program at the end of this year.

Senate Majority Leader Harry Reid, a Nevada Democrat, balked yesterday at the demand by Senate Minority Leader Mitch McConnell, a Kentucky Republican. Reid also took procedural steps to end debate and schedule Senate action on extending the homebuyer tax credit and the unemployment benefits.

“I think the first-time home-buyer credit is a great example of funding that’s helped to stabilize the housing market and should be extended,” Jared Bernstein, chief economist to Vice President Joe Biden, said on Bloomberg television. Treasury Secretary Timothy Geithner gave his support yesterday.

Lawmakers announced plans earlier this week to attach the tax-credit proposal to a pending bill on the unemployment benefits. The $8,000 tax credit, enacted earlier this year as part of the $787 billion economic stimulus package, is set to expire at the end of November.

April 30

The lawmakers want to extend the credit until April 30. Their proposal would also expand it to allow higher-income Americans and some who already own homes to qualify for the break.

Homebuyers who have lived in their prior residences for at least five years may receive a credit of $6,500 under the plan, said Senate Finance Committee Chairman Max Baucus. Also, couples earning as much as $225,000 and individuals as much as $125,000 would qualify for the extended break, Baucus said. That’s up from a $75,000 limit for individuals and $150,000 for couples.

“The success of the American economy is closely tied to the success of the housing market; by helping to stabilize the housing market, the homebuyer tax credit has helped to shore up the economy as it begins to recover,” said Baucus, a Montana Democrat. “This would enable an even greater number of potential homebuyers to take the credit.”

Drop in Prices

Lawmakers said they want to prevent home sales from slipping as the economy struggles to recover from the worst drop in home prices since the Great Depression.

More than 1.2 million borrowers have claimed $8.5 billion of the $13.6 billion set aside for the homebuyer tax credits this year, according to the Treasury Department. The Obama administration, in endorsing the extension yesterday, said the credit has helped stabilize the nation’s housing market.

The tax break “brought new families into the housing market and contributed to three consecutive months of rising home prices,” Geithner said in a statement.

The measure would require those receiving the tax break to remain in their new homes for three years and they would have to repay the credit if they don’t.

Those buying homes worth more than $800,000 wouldn’t be eligible for the credit, said Baucus. Lawmakers also said they won’t extend the break beyond the new April 30 deadline.

‘Last Extension’

“The American people should understand this -- and the affected industries -- this is the last extension,” said Senator Johnny Isakson, a Georgia Republican who cosponsored the plan. “Tax credits like this only work by creating the sense of urgency to take advantage of them.”

Isakson estimated the new plan would cost $10.2 billion. Senate Banking Committee Chairman Christopher Dodd said the plan wouldn’t add to the government’s budget deficit because lawmakers plan to finance it by delaying a tax break for multinational companies scheduled to take effect next year.

The bill that would include the tax-credit plan calls for extending unemployment benefits by 14 weeks in all states and by an additional six weeks in states with the highest jobless rates. That bill has been stalled for weeks because of an ongoing dispute between Reid and McConnell over amendments to the measure.

McConnell yesterday dropped his demands for votes on amendments related to immigration and the community activist group ACORN. He held firm on his push for the TARP-related amendment.

The proposal would remove Geithner’s ability to unilaterally extend the TARP program beyond its Dec. 31 expiration date to October 2010.

“It seems to me there should be a better time to have this debate,” Reid said.

Any legislation the Senate passed would have to be reconciled with a House-passed bill last month that didn’t include the tax-credit provisions and provides more limited unemployment benefits.

Reid said House Majority Leader Steny Hoyer, a Maryland Democrat, assured him that “they will accept what we’ve talked about with first-time homebuyers.”

To contact the reporters on this story: Dawn Kopecki in Washington at dkopecki@bloomberg.com; Brian Faler in Washington at bfaler@bloomberg.net

What is the Mortgage Protection Program

teresamihelic@realtyexecutives.com (Teresa Mihelic) — Tue, 15 Sep 2009 20:19:00 GMT

What Is the Mortgage Protection Program*?

Through the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) Housing Affordability Fund Mortgage Protection Program, first-time home buyers who lose their jobs due to layoffs may be eligible to receive up to $1,500 per month, for up to six months, to help make their mortgage payments.
A qualified co-buyer also can participate in the program and receive a monthly benefit of $750 per month for up to six months.
C.A.R.’s Housing Affordability Fund is dedicating $1 million toward its Mortgage Protection Program, and estimates that as many as 3,000 families will benefit from the program this year.

For more details click here: Mortgage Protection Program California

First-time home buyer tax credit

teresamihelic@realtyexecutives.com (Teresa Mihelic) — Tue, 01 Sep 2009 21:24:00 GMT

New tax credit provides opportunity for first time homebuyers

There's good news for first time home-buyers. In an effort to stimulate the economy and help the housing market, the federal goverment had enacted new legislation providing a tax credit of up to $8000 for first time homebuyers.

Click on the link below for more details.

First-time homebuyer tax credit

10 Mistakes First-Time Home Buyers Make

teresamihelic@realtyexecutives.com (Teresa Mihelic) — Mon, 04 May 2009 18:10:00 GMT

This is an interesting article from Smart Money ( www.smartmoney.com) published on April 2nd 2009.
For any questions you may have when buying your home in Orange County, always make sure to visit www.ochomebuyer.com for a Free MLS access to the OC Real Estate database.
Enjoy!

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Deal of the Day by Lisa Scherzer

The declining home values that are plaguing homeowners are just one of the factors creating an opportunity for prospective home buyers.

Standard & Poor's latest Case-Shiller index, which tracks home prices across 20 major U.S. cities, reported that values dropped 19% in January from a year earlier.

Those depressed values, combined with near-record-low mortgage rates and government incentives (an $8,000 first-time home buyers' tax credit included in the stimulus bill), are luring more first-time home buyers into the market. Indeed, a recent Century 21 Real Estate survey found that more than three-quarters (78%) of potential first-time home buyers say now is a good time to buy.

If you agree, be aware that buying a home comes with plenty of potential missteps. Here are 10 all-too-common mistakes first-timers make.

1. Not knowing how much house you can afford.

Many novice home buyers spend a lot of time researching homes – comparing kitchen layouts and backyard square footage – but very little time researching their financing options. One of the first things buyers should do is talk to a qualified lender and get preapproved for a mortgage, says Claire Clark, senior vice president of business development at Prudential California Realty. Without first figuring out how much house you can afford, you risk falling in love with one you can't.

2. Assuming foreclosures are great deals.

Just because the previous owner owed $450,000 on a house before the bank took it over doesn’t mean it’s worth that much now. Values have slipped significantly, says Jay Michael, partner at Estate Property Group, a Chicago real estate brokerage, so you may not be getting the bargain you think with a foreclosure. Also, most homes owned by lenders or banks have been sitting vacant for months and may have been vandalized. That could require extensive renovation or repair. Weigh the costs of fixing up the property against the savings you’ll likely reap by buying a lower-priced foreclosed home.

3. Letting your true feelings show.

No matter how much you've fallen in love with a house, don’t let the seller’s agent in on it. Otherwise, they will gain the upper hand in negotiations.

4. Failing to find a good buyer's agent.

Landing a mortgage is tough these days. So buyers should rely heavily on knowledgeable agents to help them get their finances in order, says Michael. After all, buyer’s agents have a fiduciary responsibility to the buyer exclusively -- and should be looking out for their best interests. Start your search at the National Association of Exclusive Buyer Agents, a nonprofit representing buyers. Or consider using an agent recommended by a relative or friend. Interview each candidate about their experience, if they’ve worked with first-time buyers before and what kind of service you’ll get from them.

5. Underestimating the costs of owning a home.

Whether it’s a rusty pipe or a leaky roof, things go wrong and need to be fixed. Many home buyers don't anticipate the additional costs for repair and maintenance, or for an increase in utility costs, says Erin Baehr, CFP and president of Baehr Family Financial. Consider the age of your new home and how well it’s been treated by the previous owners in your budget. Be prepared to set aside a small percentage (1% at most) of the home’s purchase price annually for repairs and upkeep.

6. Failing to budget for property taxes.

Property taxes– and the likelihood that they’ll climb over the course of your time in the house – should be factored into any home-buying budget, says Baehr. To get an idea of how much you’ll be paying, call the local assessor’s office or talk to people in the neighborhood.

7. Assuming your first offer will get accepted.

As home prices get even more affordable, competition is bound to heat up. “You can’t assume you’ll walk in there, make the offer and get it,” says Clark. Try not to get discouraged if you lose out on the first – or second – house you make an offer on.

8. Skipping the inspection.

Before signing anything, hire a professional inspector, says Justin Lopatin, a mortgage planner with American Street Mortgage Company. The seller isn’t likely to tell you there’s mold in the basement or the walls are poorly insulated. Lopatin advises buyers to find and hire their own inspector – independently of the realtor – to ensure there’s no conflict of interest. (You can find inspection companies in the phone book, or by doing a simple web search with your zip code.)

9. Doing too much too fast.

Some buyers want to make the house their own right away, says Baehr. They overextend themselves on credit to do so, and assume the improvement will pay for itself by increasing the home's value. But that’s not always the case – especially in today's market. Instead, buyers need to exhibit patience and make changes over time.

10. Failing to include a contingency clause in the contract.

A mortgage financing contingency clause protects you if, say, you lose your job and the loan falls through or the appraisal price comes in under the purchase price. Should one of these events occur, the buyer gets back the money he used to secure the property. Without the clause, he can lose that money and still be obligated to buy the house, says Lopatin.

(Corrected April 6, 2009: As originally published, we stated that a contingency clause protects home buyers if the appraisal comes in above the purchase price. In fact, protections kick in when the appraisal value is under the purchase price.)

How Much Mortgage Can You Afford?

teresamihelic@realtyexecutives.com (Teresa Mihelic) — Thu, 26 Mar 2009 03:17:00 GMT

So you're wondering exactly how much of a mortgage you can afford... or what the monthly payments of the homes you are looking at will be depending on the rates. Here's a good table and help for your loan needs:

How Much Mortgage Can You Afford?

As usual, whatever questions you may have, just let us know.
Teresa Mihelic
www.ochomebuyer.com

Cracking a Valuable Homebuyer Credit

teresamihelic@realtyexecutives.com (Teresa Mihelic) — Fri, 20 Mar 2009 17:00:00 GMT

There was a really good article on the Wall Street Journal on March 18th, about how the new tax credits work for 'First Time Home Buyers'.

For the whole story, here's the link:
http://online.wsj.com/article/SB123732757823462281.html

And here's a recap of what this tax credit is all about:

MAKING SENSE OF THE STORY FOR CONSUMERS

· First-time home buyers – those who have not owned a principal residence for three or more years – received two tax credits over the last two years. One was passed and signed into law in 2008, the other in 2009.

· The 2008 credit is a tax credit for first-time home buyers who purchased a house between April 8 and Dec. 31, 2008. The home buyer may claim 10 percent of the home’s purchase price, as a credit, capped at $7,500. Although called a “tax credit,” this homeowner benefit actually is a 15-year interest-free loan, which must be paid back in equal installments over a 15-year period.

· The 2009 credit is for 10 percent of the home’s purchase price, capped at $8,000. This credit is for first-time home buyers who purchase a house between Jan. 1 and Nov. 30 of this year. The $8,000 tax credit does not have to be repaid.

· In both cases, the home buyer may choose to claim the tax credit on either the 2008 or 2009 federal tax return.

· The tax credits are offered on a sliding scale, based on income. Individuals with annual incomes of $75,000 or less may be eligible for the full amount of the tax credit. Married couples filing jointly must earn less than $150,000 to qualify for the full amount. Individuals earning between $75,000 and $95,000, and married couples filing jointly who earn between $150,000 and $170,000, may be eligible for a smaller portion of the tax credit, but not the full amount. The tax credit is not available to individuals who earn more than $95,000 or married couples filing jointing who earn more than $170,000.

· Nonresident aliens, homes outside of the United States, and homes inherited, gifted, or acquired from a relative are exempt from the tax credits.

We are here to help you find your new home, please contact us if you have any questions.
http://www,ochomebuyer.com

Spring Market update for OC Real Estate Market

teresamihelic@realtyexecutives.com (Teresa Mihelic) — Thu, 19 Mar 2009 18:38:00 GMT

Hello again! Spring is here! So what’s happening to the OC Real Estate Market?

We’ve seen lots of new information from President Obama’s Stimulus Plan. The effect this has had is a brief slow-down of what had been an increasingly active spring market here in Orange County as the markets try to figure out whether any of these programs might be helpful to housing.

Truth is, if you’re thinking of buying, or thinking of refinancing, or worried about the mortgage you’re paying on, there is something for everyone.

When it comes to the active inventory, it has had little variation since the beginning of the year. Compared to last’s year inventory at this time, we are at a 33% less homes for sale. Last year, it took a home an average of 8.14 months to sale, and this year we are averaging 4.41 months. So the ‘market time’ has come down almost 50%. Also, the number of homes that are in escrow now is the highest since 3 years ago and more than 60% of it is composed of distressed properties.

The demand is higher in the lower price ranges – where detached homes under $500k take an average of 2.4 months to be sold.

Also on the news, according to the Mortgage Bankers Association, applications for mortgages jumped 11.3 percent during the week ending March 6 due to the rates being at historic lows. That would make us believe we are headed toward some ‘very active’ months.

I’m here to help you with any questions you may have about homes in Orange County, and for all active inventory, including pictures and details, please visit my website http://www.ochomebuyer.com.

First-Time Home Buyer Tax Credit: How It Works

teresamihelic@realtyexecutives.com (Teresa Mihelic) — Fri, 30 Jan 2009 16:04:00 GMT

The first-time homebuyer tax credit passed last fall, and many of our clients were wondering how it works. Here is an explanation provided by the National Association of Realtors:

The definition of first-time homebuyer is generous. To get the credit, the homebuyer cannot have owned a home in the previous three years. The home must be a principal residence and purchased between April 9, 2008 and July 1, 2009.

The credit is equal to 10 percent of the purchase price, up to $7,500. Single taxpayers with modified adjusted gross income up to $75,000 and couples with MAGI up to $150,000 will qualify for full credit. Singles with MAGI up to $95,000 and couples with MAGI up to $170,000 will get a reduced amount. Those with higher incomes don’t qualify.

If the amount of tax a homebuyer owes is less than the amount of the credit, they get to keep the difference in the form of an IRS refund.

The homebuyer must begin to repay the credit in two years in increments of about $500 a year over a 15-year period for those who received the full credit

Homebuyers who sell their home before the credit is repaid must pay off the loan with any profits. If they sell the home at a loss, the loan is forgiven.

If you are a first-time homebuyer interested in taking advantage of this tax credit, visit our website, www.OCHomebuyer.com or give us a call. We will be happy to guide you through the process of buying your dream home!

2009: Market conditions - Is it now a good time to buy?

teresamihelic@realtyexecutives.com (Teresa Mihelic) — Fri, 16 Jan 2009 19:40:00 GMT

Happy New Year everyone. Here’s my report for the beginning of 2009… I usually just give you the numbers, but I want to give you 3 good reasons why you should consider buying a home these days:

First : The rates

-The 30-year fixed-rate mortgage (FRM) averaged 5.14 percent for the week ending Dec. 24, 2008.

-The 15-year rate averaged 4.91 percent.

-Five year hybrid adjustable rate mortgages (ARMs) were higher at 5.49 percent, but 1-year ARMs were below 5 percent at 4.95 percent nationwide and even lower 4.75 in the Northeast and Southwest.

Good news: Interest rates are as low as they been since Freddie Mac started tracking them !

Second: Obama’s stimulus package

Earlier this week, Fed Chairman Ben Bernanke reported that the newly proposed Obama stimulus package could help boost economic activity.Obviously The Fed as well as the incoming Administration and Congress need to come to the plate and make it happen.

Third: Inventory is moving!

So if you are in the market to buy a home, now is a very good time.The good deals are out there and we are here to help you find them.Feel free to check out our website www.ochomebuyer.com or call our helpdesk ar (949) 888-6788. We are happy to help!

Teresa Mihelic
teresamihelic@realtyexecutives.com
(949) 888-6788

Are you still wondering when is the best time to buy a home?

teresamihelic@realtyexecutives.com (Teresa Mihelic) — Fri, 05 Dec 2008 22:43:00 GMT

Typically, we see a decline in buyers purchasing over the holidays as they concentrate on family and year-end vacations. That appears to be holding true this year as well.

The number of new pending sales for the month of November dropped to 2446 compared to 2557 a month ago. We are still in really good shape though, as last year’s numbers at this time were 1243 pending sales. That’s an increase of almost 50%. And, the homes that are on the market are selling more quickly now as the expected marketing time is currently at 5.29 months, compared to last year’s marketing time of 13.49 months and 7.09 months two years ago.

We are officially in a recession and the government has said it will do just about whatever it takes to get the economy back on track. Fixing the lending crisis will be paramount. It has been a rough year since the recession began. It started as a subprime meltdown in March 2007 with swelling foreclosures and a financial crunch and led us to a completely frozen financial system in October 2008.

Now, the Federal Reserve has stepped in and has said it will buy up to $500 billion in mortgage-backed securities. Almost immediately after that announcement, rates dropped by about a half of a percent. Lenders have also worked more diligently with loan modifications for troubled borrowers in order to shore up the overflow of foreclosures. While it will still be too little to late for many homeowners, it spells opportunity for buyers to get great deals on homes as it will keep the prices at more affordable levels. Add that to the lower interest rates and it could end up being a fantastic time to buy. Just plan on being in the property for a few years as the instability is predicted to continue for at least the next couple of years.

With low prices and low interest rates, it's a great time to buy in Orange County. And we are here to help. Our website is www.ochomebuyer.com. You can check out all the listings on the market. Or contact us anytime at helpdesk@ochomebuyer.com.

Fall is here! And the market still surprises us by not following the "expected" cycle.

teresamihelic@realtyexecutives.com (Teresa Mihelic) — Mon, 29 Sep 2008 23:24:00 GMT

Fall is here!

This has been a very interesting year for our real estate market in Orange County. And this time of the year, we would have expected that the demand (the number of new pending sales) would have started to decline as we head into the holiday season. Well, not this year. It didn’t follow the "expected" cycle for the first half of the year (it constantly kept growing with a few step backs), and it has increased by 130 homes in the past 2 weeks and now totals 2974 pending sales. To give some perspective, at this time of the year over the last few years, these were the numbers:

2008: 2,974 pending sales
2007: 1,180 pending sales
2006: 2,208 pending sales
2005: 3,058 pending sales

Interesting fact: demand is surpassing the prior 2 years, and looking like 2005 numbers. We will continue to see an influx of bank owned and short sale properties which will translate into more opportunity for the first time buyers and investors. These are the hot properties and they are selling within days of coming on the market with multiple offers. These properties will continue to be a drag on prices, which isn't great news for sellers, but the buyers are jumping on the well priced properties. This buyer activity is a very positive sign for our market. With low interest rates and more affordable prices, there are some great opportunities for people who have patiently waited out the market.

With more homes in escrow, and less inventory, it is taking an average of 4.43 months for a home to sell. This is much better than compared to the beginning of the year (almost 15 months). This market is so different from what we’ve seen the past 2 years…definitely more affordable, and attracting first time home buyers. And with rent prices going up due to demand, the investors are entering the market once again.

It's a great time to buy in Orange County. And we are here to help. Our website is www.ochomebuyer.com. You can check out all the listings on the market. Or contact us anytime at helpdesk@ochombuyer.com.

Demand for O.C. homes highest since Sept. ‘05

teresamihelic@realtyexecutives.com (Teresa Mihelic) — Mon, 16 Jun 2008 16:37:00 GMT

Demand for OC Homes highest since Sept. '05
June 15th, 2008, 3:00 am · posted by Jon Lansner/O.C. Register columnist

Market watcher Steve Thomas at Re/Max Real Estate Services in Aliso Viejo reports that shoppers’ demand for O.C. housing (as measured by homes placed into pending escrows in local brokers’ listing service within the past month) hit 3,060 last Thursday — highest since September 2005. Meanwhile, the active inventory of O.C. homes listed for sale dropped below 15,000 for the first time since the beginning of January.

Says Thomas: “Many homeowners do not want to compete with the volume of short sales, sellers who owe more than their homes are worth, and foreclosures. The general public is acutely aware that it is a buyer’s market and that it takes a lot of time and patience to sell. I was expecting the inventory to grow to 20,000 homes, but I simply did not factor that the public would perceptively refrain from marketing their homes without proper motivation.”

Thomas also calculates “market time,” a benchmark of how many months it theoretically takes to sell all the inventory in the local MLS for-sale listings at the current pace of pending deals being made. By this Thomas logic, it would take 4.86 months for O.C. buyers to gobble up all homes listed for sale at the current pace of deals vs. 5.61 months two weeks earlier and vs. 8.50 months a year ago.
Here’s data by the price slice as of last Thursday for O.C. homes listed on market; pending deals, Thomas’ market time, in months; and market time two weeks ago and a year ago (Note: k=thousand; m=million) …

Slice	Listed	Deals	Months	2 wk. ago	Yr. ago
All O.C.	14,880	3,060	4.86	5.61	8.50
•$0-$500k	7,126	1759	4.05	4.60	8.58
•$500-750k	3,163	764	4.14	5.00	8.63
•$750k-1m	1,696	283	5.99	6.98	6.98
•$1-1.5m	1,266	152	8.33	9.80	8.00
•$1.5-2m	696	59	11.80	14.71	9.92
•$2-4m	816	46	17.74	14.89	13.11
•$4m+	338	10	33.80	66.80	12.23

HUD boosts O.C. loan limit 75%

teresamihelic@realtyexecutives.com (Teresa Mihelic) — Mon, 10 Mar 2008 18:55:00 GMT

Thursday, March 6, 2008

HUD boosts O.C. loan limit 75%

New conforming limits could give housing market a boost.

By MATHEW PADILLA
The Orange County Register

Larger loans may soon become cheaper and easier to get in Orange County, giving its struggling housing market a boost.

Government sponsored loan buyers such as Fannie Maeand Freddie Mac can now buy loans up to the new conforming limit of $729,750, a 75 percent increase from the old limit of $417,000, said the Department of Housing and Urban Development on Thursday. HUD announced the new limit Wednesday, one day after saying the Federal Housing Administration can now insure loans up to $729,750 in the county.

For consumers, the limit increases are good from now until the end of the year, when they revert to $417,000 or $362,790 for FHA. The stimulus package signed by President Bush last month actually is retroactive to July 2007, but that does not mean anyone who got a loan since then will suddenly get a rebate. It means banks holding loans can now sell them to Fannie or Freddie.

Here are some questions and answers about what the large spikes in the conforming and FHA loan limits mean for the county's homeowners and home shoppers.

Q. When will Fannie and Freddie, the largest U.S. funders of home loans, start buying mortgages up to $729,750?

A.Fannie said it will start buying larger fixed-rate mortgages on April 1 and larger adjustable-rate loans on May 1. Brad German, a spokesman for Freddie, said the company has not yet set a date but hopes to start buying loans by the second quarter of this year.

Q.Will mortgage rates fall on loans above the old limit of $417,000 and up to the new limit of $729,750?

A.Maybe. Rates on jumbo loans, which are above the conforming limit, have generally been a percentage point higher than conforming rates since the credit crunch hit in August 2007.

Traders in mortgage-backed securities say larger loans are more likely to be refinanced when interest rates fall, so they don't want to see larger loans mixed in with loans up to $417,000. German said loans above $417,000 will be separately turned into securities and sold to investors. Some experts say such separate treatment could mitigate the benefit of having Freddie or Fannie back the loans and so interest rates to consumers might not fall by very much.

And brokers say rates are up on conforming loans these days, despite a recent drop in yields on long-term government bonds. That's because investors are worried about all mortgage-backed securities – even those with the seal of approval from Fannie or Freddie.

"Mortgage-backed securities are just not a safe investment right now," said Jeff Altman, a broker and partner of WestCal Mortgage Corp.in Orange.

Q.But this change should make larger loans easier to get, right?

A.Yes and no. Fannie and Freddie will not only buy new loans but will buy loans currently on the books of many lenders. That should free lenders up to make more loans.

However, Fannie has already issued requirements to qualify for the larger loans, and some are tougher than before. For example, borrowers must document their income and assets, and anyone seeking a large adjustable-rate purchase loan must put down 20 percent of the value of a property. Freddie Mac should issue guidelines soon.

Q.So will all this boost Orange County's sluggish housing market?

A. Raphael Bostic, a real estate professor at USC, said it is definitely good for the county, but, "I'm not sure it's a savior for the housing market." He said that the increase in the FHA limit will help people with poor credit – previously served by subprime lenders – get loans. "I actually think the cheaper rate is not the issue, it's any rate," Bostic said.

O.C.'s FHA loan limit raised to $729,750

teresamihelic@realtyexecutives.com (Teresa Mihelic) — Thu, 06 Mar 2008 21:21:00 GMT

New conforming loan limit expected to be announced today.

By MATHEW PADILLA

The Orange County Register

Beginning today, Orange County's limit on loans insured by the Federal Housing Administration will be temporarily raised to $729,750, more than double the current limit of $362,790, the U.S. Department of Housing and Urban Development announced Wednesday.

The limit, which is good until the end of the year when it reverts back to $362,790, will apply only to loans insured under a program administered by FHA, which targets low- to moderate-income home shoppers. Under a previously announced plan by President Bush, dubbed FHASecure, FHA has expanded to refinance some homeowners with adjustable rate mortgages even if they are behind on payments.

HUD is expected to announce today the new conforming loan limit for Orange County and other markets, a spokesman said. Conforming loans are sold to government-sponsored buyers such as Fannie Mae and Freddie Mac and have a current limit of $417,000 in California and most states.

The FHA and conforming limit increases could give Orange County's housing market a boost.

In housing markets such as Orange County, many consumers can't get the best mortgage rate because the price of a home is greater than the $417,000 conforming loan limit. Many here depend on jumbo loans, anything above the current $417,000 limit. Rates on jumbo loans are more expensive, having risen about a percentage point above conforming rates.

The average rate Wednesday on a 30-year fixed conforming loan in Orange County was 5.875 percent with a one-point fee, while the average jumbo rate on a 30-year fixed was 6.959 percent with a one-point fee.

HUD Secretary Alphonso Jackson announced the limit increase at the Anaheim Convention Center where HOPE NOW, a national anti-foreclosure campaign, arranged for nine lenders to meet with hundreds of borrowers facing foreclosure.

"The dawn will break for you," Jackson said. He pledged to fight for a permanent increase in the FHA limit.

A couple of borrowers at the convention center said lenders were friendly and receptive, but promised nothing.

Hugo Casian said he and his mother drove more than an hour from Fontana to speak with their loan servicer, EMC Mortgage. They were told to submit paperwork and wait, he said. His mother has two mortgages and her payments this month jumped to $3,200 from $2,400 after initial low fixed rates ended.

If EMC doesn't come through with a deal, "She's going to let it go," Casian said.

Fannie Mae and Freddie Mac have yet to say when they will begin buying larger loans or if they will impose any restrictions, such as requiring larger down payments. Some housing watchers say rates on loans up to $729,750 might not drop as much as government officials hope.

President Bush signed a stimulus package into law last month that included granting HUD the power to raise the conforming limit based on 125 percent of the median home price in high-cost areas. HUD said Wednesday that Orange County's median home price is $710,000. That's much higher than DataQuick, which pegged the median home price in January at $520,000 for all houses and condos, and $583,250 for just resale houses.

HUD said it calculated median prices based on government and commercial data.

Buying Bank Owned Properties

teresamihelic@realtyexecutives.com (Teresa Mihelic) — Wed, 05 Mar 2008 18:21:00 GMT

Banks own real estate because the banks have acquired the homes through foreclosure. Homes on a bank's books are called “REO’s”, which is an acronym for "real estate owned." Realize that when banks receive property deeds to homes through foreclosure, it's because no one showed up on the courthouse steps to bid the minimum amount of the existing mortgage(s) during the bank’s auction.

On the surface, it might not sound as though foreclosures are profitable, especially if the bank wants to sell its inventory on the open market for the amount that was once owed to the bank by the previous mortgagor. However, here are at least two reasons why an REO can be profitable to you:

If two loans were secured to the property (which is common these days), the second lender sometimes does not foreclose.
If the second lender does not make up the back payments to the first lender and commence its own foreclosure proceedings, the second lender usually gets wiped out in the foreclosure. Many second mortgages comprise 20% or more of original market value.

The bank does not want to sit on its inventory. Since it did not receive its minimum bid from an investor or home buyer during the foreclosure sale at the courthouse, the bank is likely to price that REO home competitively. They will do an appraisal and typically will want to get somewhere near the appraised value but will generally take less to move the property off of their books. Sometimes these can be great deals, sometimes not. It really depends on how much the bank is carrying in loan balances and how much they are willing to discount.

It is very important to do the homework on the property. Since the property typically will be sold “as is” with no repairs, the buyer should factor in any repairs costs to make sure that the property will still be a good deal when all is said and done.

Our computer systems scan the largest and most comprehensive Real Estate database in Orange County CA, looking for Foreclosures, Bank Owned REO's, Short Sales and other types of homes for sale according to the criteria you specify. These Orange County Homes will then be emailed to you and will include the details of: Asking Price, Address, Multiple Photos, Bedrooms and Baths, Size, Maps, complete Property description, Schools and many other property details.

If you are looking to buy a home or condo for a great price here in Orange County, CA, we can help. We are dedicated and licensed Realtors who have many years of experience in negotiating the purchase of properties... And our services are Free to you. We will assist you in every step of the transaction to ensure that you get the best deal and have a great experience in the process.

Orange County Market Update - February 2008

teresamihelic@realtyexecutives.com (Teresa Mihelic) — Fri, 15 Feb 2008 00:07:00 GMT

Orange County Market – Early Spring 2008

The Spring Market is already here! Now that the Super Bowl is behind us, we can expect buyers to start shopping for homes. Demand may continue to increase through April or May. We should expect the active inventory to continue to grow throughout the Spring as more homeowners enter the market. We will also continue to see a growing number of bank foreclosures and bank short sales which should increase the inventory further and continue to drive down prices.

Here’s the stats:

Demand has increased by 570 homes or 57% in the past month
The average market time, based on current inventory, has decreased to 9.73 months
The active inventory, homes for sale (supply), is nearly unchanged at 15,259 homes
The number of new escrows has significantly increased to 1,568 homes
Short sales and foreclosures currently represent about 29% of the current active inventory


	Current Actives (Homes for sale)	Pending (last 30 days)	Market time ( in months)	1 year ago (02/07)
ALL OC (as of 1/10/08)	15259	1568	9.73	4.87
OC $0- $500K	6583	786	8.38	4.54
OC $500K- $750K	446	443	10.04	4.2
OC $750K- $1M	1768	181	9.77	4.79
OC $1M - $1.5M	116	92	12.67	6.04
OC $1.5 M - $2M	613	45	13.62	7.42
OC $2M - $4M	723	38	19.03	9.52
OC $4M +	240	7	34.29	24.89

What does this mean?

Just 4 weeks ago, the market time was at 14.97 months, and today we are at 9.73. Also, the number of escrows increased from 1219 to 1568 homes. That’s an increase of 57% - also, the current inventory hasn’t changed much in the past month, increasing in only 14 homes. It appears that home owners are reluctant to place their homes on the market for now.

In purchasing a home, a buyer should consider the following factors in addition to pricing trends: current interest rates, the number of choices in searching for a home, the tax break involved and historical long term investment data for housing in Orange County. We also have the new loan limits beginning in March which should help more buyers enter the marketplace. It will be unknown for a while what the underwriting guidelines will be for these new, higher loan limits. Buyers should get pre-qualified before getting too far along in their home search.

So, buyers should do their homework and not just rely on the constant reporting on the pressures in pricing. There’s a lot more to making this decision, not to mention, as a buyer, it is much easier to shop when only a few are shopping.

Where to Get Help with Finding a Home

Home shopping is often complicated and involves weighing out many variables. Please feel free to give us a call to sort through some of the challenges. Normally we can help you focus after just about 10 minutes on the phone with no obligation or commitment at (949) 888-6788 or TeresaMihelic@RealtyExecutives.com

Best and Worst Places to Buy a House

teresamihelic@realtyexecutives.com (Teresa Mihelic) — Tue, 29 Jan 2008 23:53:00 GMT

It’s been said that over the long term, housing is always a good investment – but when it comes to Orange County real estate, where is the best place to buy? The following is an article extracted from Yahoo - Finance section on Jan 29th. Click on the link to follow the article or take a look below:

http://finance.yahoo.com/real-estate/article/104278/Best-and-Worst-Places-to-Buy-a-House

----------------------------------------------------

Tuesday, January 29, 2008, 5:58PM ET - U.S. Markets Closed.

Best and Worst Places to Buy a House
by Danielle Babb

Thursday, January 24, 2008 provided by Entrepeneur.com

Whether you're looking for an investment property or a place to live, here's a look at the cities you should seek out and avoid in 2008.

The housing crunch and the excessive inventory -- exceeding 10 months on resale homes -- continues to take its toll on housing prices. But over the long term, housing is still a good investment. In fact, it's more than an investment; it's a home. Plus, you're not really saving anything by renting, as the costs of renting and owning are about equal (well, owning may be a little more). The tax benefits of home ownership far outweigh renting, too. With good housing prices in many great areas, this may indeed be the time to buy.

So now that I've convinced you this is a good time to buy a home, the next question is, Where do you buy one? No matter where you look, you should check out some basic economic fundamentals before buying. Is job growth stable in the area? Is income keeping up with inflation? Is crime above the national average? Is there a higher-than-average rate of foreclosures? These issues and others play a factor when deciding where to buy a house.
As a real estate investor and analyst, it's my job to provide buyers with qualified information on where to buy -- and where to stay away from. Here are my thoughts for 2008 based on the indicators noted above.

The Top Places to Buy

Whether you're an investor like me or you're looking to purchase that next move up, here are my picks for the best areas to buy a home:

• Killeen, Round Rock, Austin, Texas: Killeen has the lowest average home price in any market in the nation while still maintaining quality. Round Rock and Austin have seen incredible job growth and very stable home prices despite the downturn nationwide. Jobs continue to grow here -- a factor for keeping inventory low and prices stable.

• Mission Viejo, California: Mission Viejo has the lowest crime statistics in the nation. With no murders in 2007 and a low rate of violent crime, this is a good place to raise a family. Prices are relatively stable, and the job market in the nearby cities of Irvine and San Diego means there is consistent demand from job seekers.

• Palm Beach, Florida: I'm taking a risk here because this area has been pummeled by foreclosures in 2007. But there are also a lot of boomers retiring, and Palm Beach is looking mighty attractive. If you don't like this high of a risk (which translates to great prices), check out Tampa or Clearwater in the same state.

• Las Vegas, Nevada: Yes, Las Vegas has been hit hard by incoming investors, who watched their home values disappear and then left those homes empty. Las Vegas comes in quite high on the national foreclosure list, almost always within the top three metro areas. But there's an upside -- a very strong job market. In 2007, Las Vegas experienced a 12 percent increase in population, partly driven by retirees looking for Sunbelt states to move to. Coupled with low prices, we could see inventories reduced here, which would also stabilize prices. Be careful what you buy, but I like it.

Places to Avoid

And now for the places you definitely want to avoid:

• Detroit, Michigan: The job market is in chaos. People are getting laid off left and right. National statistics seem to point to a significant problem with job loss and job income not keeping up with inflation. As a result, many nice neighborhoods are now abandoned due to people leaving their homes. Inventories exceed one year (under six months is what we want to see), and the foreclosure problem hit Detroit hard. With fewer jobs to support home purchases, I don't see Detroit turning around anytime soon.

• Miami, Florida: Palm Beach is different than Miami, which sits in its gorgeous aqua water with half-built and abandoned condos, a shrinking job market, a tough time getting insurance against hurricanes and a job problem. Yes, you can get a good deal, but do this only if you don't need the appreciation from the home in the next decade.

• Riverside/San Bernardino, California: Even those lucky homeowners that bought before the boom are feeling it now. Riverside and San Bernardino counties in Southern California consistently lead California in foreclosures and rank in the top three metro areas nationally. The prices have plummeted, and jobs in the area are scarce. People moved there due to lack of affordability in Orange and Los Angeles counties (where their jobs were), so it's a commuter's area. Now that prices in the two counties have dropped, people can live close to their jobs. Although I grew up in Riverside County, I could never recommend it to anyone looking to buy a home.

Danielle Babb is an experienced real estate investor and specialist on the use of technology and real estate. She is also the co-author, with mortgage broker and realtor Bill Nazur, of Finding Foreclosures: An Insider's Guide to Cashing In on This Hidden Market, available from Entrepreneur Press.
Copyrighted, Entrepreneur.com, Inc. All rights reserved.

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How does the new 2009-2010 Tax Credit for Homebuyers work?

Congress giving homebuyers a big new tax break

Homebuyer Tax Credit Plan Agreed to by U.S. Senate Democrats

What is the Mortgage Protection Program

First-time home buyer tax credit

10 Mistakes First-Time Home Buyers Make

Deal of the Day by Lisa Scherzer

How Much Mortgage Can You Afford?

Cracking a Valuable Homebuyer Credit

Spring Market update for OC Real Estate Market

First-Time Home Buyer Tax Credit: How It Works

2009: Market conditions - Is it now a good time to buy?

Are you still wondering when is the best time to buy a home?

Fall is here! And the market still surprises us by not following the "expected" cycle.

Demand for O.C. homes highest since Sept. ‘05

HUD boosts O.C. loan limit 75%

HUD boosts O.C. loan limit 75%

New conforming limits could give housing market a boost.

O.C.'s FHA loan limit raised to $729,750

New conforming loan limit expected to be announced today.

Buying Bank Owned Properties

Orange County Market Update - February 2008

What does this mean?

Where to Get Help with Finding a Home

Best and Worst Places to Buy a House