Home Sales Recorded in August 2011

Reporting resale single family residences and condos as well as new  homes
Excludes sales where the site city is unknown
% Change is from the same month last year

C.A.R. releases its 2012 Housing Market
Forecast

The forecast, which was
presented today by C.A.R. Chief Economist Leslie Appleton-Young during her
luncheon at CALIFORNIA REALTOR® EXPO 2011, says that California home sales next
year is for a slight 1 percent increase to 496,200 units, following essentially
flat sales of 491,100 homes this year compared to the 491,500 homes sold in
2010.

The California median home price will increase 1.7 percent in 2012
to $296,000 in 2012, according to the forecast.  Following a double-digit
increase in the median price in 2010, the median home price will decrease a
projected 4 percent in 2011 to $291,000.

“2012 will be another transition
year for the California housing market, as the continued uncertainty about the
U.S. financial system, job growth, and the stability of the overall economy
remain in the forefront for all market participants,” said Appleton-Young.  “An
improvement in job growth, consumer spending, and corresponding gains in housing
are essential to a broader recovery in the economy, but would-be buyers will
remain cautious as they weigh these myriad uncertainties against the clear
opportunities presented by today’s very affordable housing market.”

Trying to time the bottom of any market is difficult. There’s another cost factor that often gets overlooked: interest rate costs, particularly over an extened period of time.

	July 2011
	June 2011
	May 2011
	April 2011
	March 2011
	February 2011

Owning a home is not only the American Dream, it is considered the strategic piece of a personal financial portfolio. According to the Federal Reserve Bank VIP Forum, people who own homes have greater net worth than those who rent.

As they grow older, kids often assume they will own a home without giving it much consideration. Sometimes they imagine they will own a home just like Mom and Dad’s, not realizing it took their parents many years of hard work and financial discipline to become homeowners.

Homeownership requires discipline, effort, commitment, responsibility, and accountability, and yet our educational system does not always provide our children with the knowledge and skills necessary to navigate the process, much less lay the groundwork in advance so they are mortgage-ready when the time comes. This begs the question: What can we, as parents, do to help our kids avoid some of our own mistakes and prepare them for the largest financial transaction in their adult life?

The Latin derivative of the word “education” means “to bring forth from within,” which is predicated on the idea that we all have it within us to learn and grow. But where do we start helping our children learn and grow in the area of homeownership? What exactly do our children need to know now, especially as teenagers and college students, so they’ll be prepared and financially-able when they want to buy a home?

The following suggestions will help you start a dialogue with your children, and provide them with the tools they need to get a jump-start on the path to “mortgage-readiness.”

1. Think about the timing. Tell your children to really be sure about when they want to own a home, and then advise them to work toward it. If they’re not intentional about getting there someday, they won’t. Simple as that.
2. Get a job. Tell your children to consider getting a job during school, even a part-time job. They will need money to buy a house, but they also need a steady employment history, so they should start building up their resume as soon as possible. This will also be helpful when the time comes to secure a permanent position in their field of study. FHA loans, in many circumstances, will accept a college transcript as a component of employment history. However, your children will need the “ability to repay” which comes from steady fulltime employment.
3. Create a budget. And stick to it! Explain that their budget should be detailed enough to account for all the income and outflow each month…even the Friday night date or pizza night with friends. Also, remind them to be careful with the debit card and don’t forget to record the entries into their log. The challenge with using a debit card is that we feel good since we are paying with “cash.” However the convenience of the plastic cash leads to temptation to spend money you might not otherwise spend. Last, tell them to include an emergency cash fund in their budget for unforeseen expenses. Many people fail to do this and it is a great practice to begin early in adult life. The key here is for your children to be conscious of their spending.
4. Build up your credit score. Suggest that your child get a credit card or two, but no more than that, and stick to a Visa or Mastercard. Also suggest that they avoid department store cards as they can be hazardous! They often carry higher interest rates and tempt people to buy things they don’t really need. Your children should routinely charge small transactions on their Visa or Mastercard to keep the account reporting as “active.” However, stress to them the importance of paying off the balance monthly when possible, and being cautious in carrying a balance over an extended period of time. Other advice to pass on: Strive to keep your balances below 18% of the credit limit at all times. Maintain tight control over your spending and your accounts. When you make your payments, be sure they are on time as a late payment can hurt you. Ignoring your financial obligations will always get you into trouble and will lower your credit score. The purpose of the cards is not to build up debt–that’s the opposite of what you want. Your goal is to create a history that will indicate to creditors your degree of responsibility in managing your debt. Responsible use of the cards over time will provide you with a healthy credit score, which is critical if you plan to purchase a home.
5. Minimize student loan borrowing, if possible. If it is necessary for your children to obtain student loans for their education, borrow the smallest amount you can get by with. Paying back student loans can help build their credit as well, but the monthly payments (which are initially deferred) will come due when they graduate. The monthly payments will be calculated as liabilities when qualifying for a mortgage, which will reduce their purchasing power. Also, remind your children not to use their loan money to buy a laptop, new phone, or pizza. They should keep themselves financially lightweight.
6. Learn about home finance and real estate. Obtaining a mortgage and purchasing a home are not simple things and can be emotional and stressful. There’s a lot to learn and many questions will arise, such as: What is involved in qualifying for a mortgage? What kind of down payment is required? What other money is needed for the transaction? How long should I keep the house before I sell it? Are property values increasing or decreasing in my area? Tell your children to learn about the process and the lingo. You could even suggest they talk to your mortgage professional to learn some great things they can do now so they’re in a good position when they are ready to buy a home. You could even work with your children to stay up-to-date on the industry, and consider reading a book or two on the subject together. It will help them immensely down the road.
7. Learn basic maintenance. One of the costs associated with homeownership is maintenance. Keeping a home well maintained is vital to keeping expenses down in the long term and will make it easier to sell later. Help your children learn how to make minor home repairs, which will save them a hefty amount of money as a homeowner.

And last but not least…tell your children to save, save, save! Whether they buy used books, drive an older car, or skip spring break, they should save a percentage of what they earn (for instance, save one out of every three dollars). Also, be sure to model that savings behavior for your children, as kids often mimic what they see rather than just do what they’re told.

A great guideline for saving can be found in one of the greatest financial books of all time, The Richest Man in Babylon. Author George S. Clason says, “Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family.” This timeless classic reminds us to pay ourselves first and sock away ten percent of our earnings for the future.

The bottom line is that the American Dream is still alive and well. There is no secret recipe. It’s a matter of spending and saving wisely and learning the necessary steps to mortgage readiness. If you have any questions about your personal situation, contact the professional who supplied you with this month’s issue of YOU Magazine. Take the first step now to set your children on the path to home ownership.

Elizabeth Rose is a Certified Mortgage Planning Specialist and self-proclaimed economic enthusiast. As a national speaker, she provides training and mentoring to mortgage professionals across the U.S.

]]> http://www.brentwoodrealestateca.com/brentwood-home-ownership-for-your-children/feed/ 0 http://www.brentwoodrealestateca.com/brentwood-short-sales-applaud-new-law/ http://www.brentwoodrealestateca.com/brentwood-short-sales-applaud-new-law/#comments Thu, 28 Jul 2011 14:56:50 +0000 jproctor http://www.brentwoodrealestateca.com/?p=303 RISMEDIA, July 26, 2011—(MCT)—Under a new state law, any lender who agrees to a short sale—which by definition will yield insufficient funds to cover the outstanding loans on a property—must accept it as payment in full for all loan balances. That is a good thing for upside-down homeowners who need to sell, says the California Association of REALTORS®.

In a prepared statement applauding Gov. Jerry Brown for signing SB 458 into law, the association observed that previously a first mortgage holder could accept an agreed-upon short sale payment as full payment for the first mortgage but a junior lien holder could still hound the seller for the full amount owned on the junior lien.

“The signing of this bill is a victory for California homeowners who have been forced to short sell their home only to find that the lender will pursue them after the short sale closes, and demand an additional payment to subsidize the difference,” says association President Beth L. Peerce.

“SB 458 brings closure and certainty to the short sale process and ensures that once a lender has agreed to accept a short sale payment on a property, all lien holders—those in first position and in junior positions—will consider the outstanding balance as paid in full and the homeowner will not be held responsible for any additional payments on the property,” she adds.

Those shopping for a home in the $500,000 to $1 million price range should not tarry. That is because they will probably face higher interest rates and more strict underwriting standards and will need to make a larger down payment later this year when conforming loan limits increase, cautions California Association of REALTORS® President Beth L. Peerce.

“Would-be buyers on the fence need to act well before Sept. 30, when the conforming loan limit is set to be lowered, to avoid a higher cost of homeownership,” Peerce said in a prepared statement.

Lowering the limits on mortgages eligible for purchase by Fannie Mae and Freddie Mac could have a broader impact than on individual homebuyers, says Peerce. “As the housing market tries to gain a more solid footing, the decrease in conforming loan limits that is scheduled for later this year could adversely affect the market,” she says.

Take the Stress Out of Moving

Moving can be very exciting…but it can also be a bit of a pain as well. Besides packing and unpacking, there is a long list of details to be handled. Things like choosing a mover, connecting utilities, getting Internet and cable service, or subscribing to newspapers or magazines in a new area can be quite a chore. And if you forget to connect one of the utilities you could be stuck in your new home for several days without that much-needed service.

To ease the stress of moving and to schedule new connections for all of the utilities in one convenient location, simply go to www.whitefence.com.

Here you can quickly compare prices for movers, phone, electricity, television, or high-speed Internet. Just select the services you wish to compare. For example, phone, cable, and electric. Or, enter your address on the home page, hit search, and within seconds, a list of services and prices available in that area will appear.

Next, click on the service of your choice to view details and pricing or comparison shop by choosing three providers. Once you determine the provider, select the service plan, complete the requested information, enter the connection date, and within minutes a confirmation will be sent to you.

If you want to change your current provider, simply hit the icon for phone, cable, or Internet, select “switch provider,” complete the requested information and a list of providers in the local area will appear. Choose the new provider and the service will be changed.

Additionally, on the site you can complete a change of address form, subscribe to local newspapers, and order magazine subscriptions.

Moving to a new home should be enjoyable and exciting. Using this tool can help remove a bit of the stress of moving and will also help save valuable time.

This is just one great resource to help new homeowners on the Internet. If you or anyone you know would like to make the dream of homeownership a reality, just give us a call. We will review your financial situation and get you pre-approved for the perfect home. ]]> http://www.brentwoodrealestateca.com/short-sale-or-foreclosure-moving-is-stressful/feed/ 0 http://www.brentwoodrealestateca.com/brentwoodantioch-short-sale-on-the-water/ http://www.brentwoodrealestateca.com/brentwoodantioch-short-sale-on-the-water/#comments Wed, 13 Jul 2011 23:48:47 +0000 jproctor http://www.brentwoodrealestateca.com/?p=297 This home has a great view of the Lake. .2241 Sq. Ft. 4 bedrooms with a jr master suite.  Tile floors and great dock to BBq on. THIS IS A MUST SEE. Give me a call to view 925-726-9110