March 24th, 2008 . by Mike Kelly
New Hot line: 1-888-995-HOPE (4673).
Under the new plan, lenders can help homeowners by:
• Refinancing an existing loan into a new private mortgage
• Moving them into an FHASecure loan (problem is that FHASecure is not necessarily an alternative for the high-cost Bay Area. The limit for an FHA loan is $362,790).
• Freezing their current interest rates for five years
Eligible homeowners:
• Must live in their home
• Loan originated Jan. 1, 2005 to July 31, 2007
• Missed no more than one payment
• 3 percent or less equity
• Credit score of 660 or less
Through October, there were about 1.8 million foreclosure filings nationwide, compared with about 1.3 million in all of 2006, according to Irvine, Calif-based RealtyTrac. With home loan defaults still rising, the trend is expected to worsen next year
Posted in Housing Updates | Please post a response »
March 6th, 2008 . by Mike Kelly
FHA Mortgage Limits FHA and HUD
The new Loan limits got issued today and we are in the “second tier” of the high priced spread! The maximum level is now $729,750. If you live in Sonoma County it is $662,500. So let me get this right. You live in Petaluma and just 20 minutes away in marvelous Marin the new loan limit is about $70,000 more! But hey, it’s a start! Here in Sonoma County at the old conforming loan limit of $417,000 we had 924 residential properties which qualified. Today with the new limit of $662,500 we double that number and have 75% coverage for all “Active” residential properties now on the market. NOT BAD!! However, the big shoe to drop next will be at WHAT RATE?? Some think a blended of the old “conforming rate” and the “JUMBO” products. We’ll know most likely tomorrow and we will be discussing this on the “Real Estate Hour”, Sunday, 9 to 10AM PST, 1350AM radio!! KSRO. Read the rest of this entry »
Posted in Sonoma County Real Estate Interest Rates, Interest Rate Update, Housing Updates | Please post a response »
February 14th, 2008 . by Mike Kelly
Call-for-Action Update
Congress Passes Stimulus Package — Final Bill Includes Increased Loan Limits
Thanks in part to the lobbying by C.A.R. and NAR members; the Senate passed their version of an economic stimulus package on Thursday, February 07, 2008. The Senate version expands rebate checks for seniors and disabled veterans and includes the same increases to the conforming loan limits for both GSE and FHA found in the House stimulus package. The House just passed the Senate version of the bill and it will now be sent to the White House. The President is expected to sign the legislation by the end of this week, ahead of the Congressional self-appointed deadline of February 15th. The increase in the conforming loan limits will last through 2008, but C.A.R. and NAR continue to lobby for FHA and GSE reform, making these increases permanent. Read the rest of this entry »
Posted in Statewide Issues, Housing Updates | Please post a response »
January 29th, 2008 . by Mike Kelly
GSE (Government Sponsored Entities or Fannie Mae and Freddie Mac) and the new (Conforming) Loan Limit Increase
Time Frame. Mortgages originated during the period beginning on July 1, 2007, and ending at the end of December 31, 2008. The limits will “sun-set” end of THIS year!!
Calculation of New Conforming Loan Limit. The limitation on the maximum original principal obligation of a mortgage that may be purchased by the GSEs shall be the higher of:
(1) the conforming loan limitation for 2008
(2) 125 percent of the area median home price, but in no case to exceed 175 percent of the conforming loan limitation for 2008. Read the rest of this entry »
Posted in Interest Rate Update, Housing Updates | 1 Comment »
December 14th, 2007 . by Mike Kelly
Housing Markets That Are Still Thriving
The best-performing housing market in the country during the third quarter was picturesque Wenatchee, a city of more than 35,000 that is the seat of Chelan County, Wash. Prices in the Wenatchee metro area increased by 15.7 percent year over year, according to RealtyTrac. Read the rest of this entry »
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October 2nd, 2007 . by Mike Kelly
Currently in our market we have over 3200 listings in our County and almost 1600 vacant or tenant occupied! The vacant ones are NOT all new builder close-outs but investor’s, Bank owned properties, foreclosure properties or folks who have purchase and now have a vacant house to sell. 
Our prices have come down to level not seen in 4 years. The interest rates, credit union product, 5.85%, and the big players 6.25%, breath-taking rates! This is a perfect storm for a home buyer! If you want a real good price and terms go and look at homes 60+ days on the market, VACANT, and offer 10% below the asking price! Get some closing costs to boot! But in order to get the BEST price,terms,concession you need to be ROCK SOLID as a buyer! Total Credit approval subject to appraisal on the subject property. If you’ve got time try a “Short-Sale” but write the contract with ALL timelines beginning upon “Lender Approval” with close of escrow to be 14 days after that benchmark!! That being said, if you get a super deal on a “short-sale” try and get ALL your ducks lined up so you can slam the escrow shut upon “Lender Approval”.
Remember, if you think the market is dropping 5-15% in the next year–then subtract that number from your asking price. Then sit back, enjoy your home, build memories, have kids, and don’t worry about staining the carpet (don’t tell your wife that!!).
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September 2nd, 2007 . by Mike Kelly
As we discussed on the show this morning here is a recap of our latest Area Market Data for Sonoma County. This includes all single family dwellings PLUS Condos. Last year at this time, August 2006, Sales were at 486 sold for the Sonoma County area. Medum price was $559,000. Today? 341 Sales for August 2007, down 145 from 2006. Medium price is $530,000 down $29,000 or roughly 6%. Read the rest of this entry »
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September 2nd, 2007 . by Mike Kelly
The proposed FHASecure plan (http://www.hud.gov/news/release.cfm?CONTENT=pr07-123.cfm) I think is a band-aid on a patient facing multi-amputees. The loan limits are $363,000 so that eliminates our area of the SF Bay Area. We went through this during the S&L crisis back in the late 80’s. We took the drastic but needed steps of creating the RTC(Resolution Trust Corporation) which gathered all the property secured by the then paltry savings of the S&L’s and revealed them all and then sold the whole lot. I believe I still have one of the first RTC catalogs (imagine the yellow pages of New York City!!). Read the rest of this entry »
Posted in Interest Rate Update, Housing Updates | Please post a response »
August 3rd, 2007 . by Mike Kelly
Home Values for the Top 20 Markets
The annual growth rate in prices of existing single family homes across the United States continued to decline for the 18th consecutive month in May, according to the Standard & Poor’s/Case-Shiller Home Price Index.
Overall, the top 20 cities in the index declined 2.8 percent year-over-year, although five of the cities showed increases.
Cities measured by the index where values have increased in the 12 months are Atlanta, Charlotte, Dallas, Portland, and Seattle. Detroit continues to lead the metro areas in growth rate declines, down 11.1 percent from a year ago.
Here are the top 20 metropolitan areas and the percent of change in their real estate values over the last year:
- Atlanta: 1.7 percent
- Boston: -4.3 percent
- Charlotte: 7 percent
- Chicago: -0.6 percent
- Cleveland: -2.8 percent
- Dallas: 1.8 percent
- Denver: -1.4 percent
- Detroit: -11.1 percent
- Las Vegas: -4.1 percent
- Los Angeles: -3.3 percent
- Miami: -3.3 percent
- Minneapolis: -3.5 percent
- New York: -2.3 percent
- Phoenix: -5.5 percent
- Portland: 5.7 percent
- San Diego: -7 percent
- San Francisco: -3.4 percent
- Seattle: 9.1 percent
- Tampa: -6.7 percent
- Washington, D.C.: -6.3 percent
— REALTOR® Magazine Online
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July 13th, 2007 . by Mike Kelly
Sales of High-End Homes Are Booming
Sales of high-end homes are doing better than the rest of the market in many areas, according to DataQuick Information Systems, which tracks home prices. Read the rest of this entry »
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