If you’re really asking “Have we hit the bottom of the California housing crash?”, I would have to say I don’t think so, not yet. Millions of homes are still being foreclosed on, and despite what everyone says, banks are still not truly working with their customers. While working on loan modifications on one hand, the banks are taking the homes to the courthouse steps with the other.

If you’re asking “Should I sell my home now before it loses any more value?” I would say that this is the slow time of year to sell even in a good market. It’s true, your home may lose more value if you hold on to it going into 2011. As I said, I personally don’t believe we’ve hit market bottom yet. Right now rates are at an all time low, which allows more buyers to buy, giving the seller a larger market. Historically, around the middle to end of February rates start to rise knocking people out of the affordability circle. You also widen your market if you are willing to do a little ‘creative financing’ such as carrying back a note for part of the money you receive and having the buyer pay on an installment contract.

Last but not least, if you’re asking “Is this the time to buy a house?” I would say it’s a great time to buy if you’re planning on being in it for awhile. Unless you’re buying a fixer upper way below market and doing the work yourself, the days of flipping it right back out and making a huge profit are a little slower these days. If you buy a home planning to raise a family, or stay located in that spot for the next 5 to 10 yrs., opportunities abound.

You have the advantage of the lower rates, and this time of year most sellers who have their home on the market are sincere about really wanting to sell. The inventory may not be as large, but neither is the competition for the same house. Sellers tend to be a  little more negotiable when there aren’t any offers coming in.

If you’re just curious about what’s happening in your neighborhood because you’re trying to keep track of where you are financially, equity wise, I would be happy to give you a full report of the activity in your neighborhood for free. No obligation. Just remember, I only deal with the Santa Clara County, California area. I can be reached at 408-313-3270 or at LauriBeamish@gmail.com

First, the lenders put a short moratorium on foreclosures because of obvious fraud in the process. Then the FDIC’s Sheila Bair comes along and says she’s worried that law suits involving fraudulent foreclosure practices will take too long to get straightened out. Instead of fixing the problem by doing things the way they should have been done all along by law, she says to just offer the homeowner a 25% reduction (loan mod) in their mortgage payment and everyone goes on their merry way. It’s okay for these large lenders like B of A or Wells Fargo to be putting people out of their homes fraudulently. I don’t get it. How can that be okay?

The latest news in the Wall Street Journal is that Congress will be considering taking away the tax deduction for our homes to balance their budget by 2015. Why not just take away any incentive to buy a home at all?

Then we have the wonderful new SBA package that Obama signed this month. This great package to give loans to small businesses so they can grow and hire people. Great for everyone but the people that build new homes. Somehow the housing sector was “accidently” left out. This has a whole “ripple down effect” of it’s own.

The questions haven’t changed much in the last couple of years. Have we hit bottom yet? I don’t personally think so. We haven’t even felt the fall out of the commercial market yet. The last 2 months housing prices have slipped some more, and “they” expect another 20% slip through the next year.  I hope that’s all it is. Rates are the lowest in forever right now. This is a super time to buy if you’re planning on staying in your home for the next 5 yrs.

Is the housing crisis continuing in California? I think until we feel the full effect of the commercial market downfall, until people are hiring again, there are bound to be more slips in the housing market.

In the meantime, we need to get the government to quit shooting the recovery in the foot. I don’t think more taxpayer bankrolled bailouts are the answer.

If I may help with any of your real estate needs, please feel free to contact me.

Jan. 31, 2010

I’m holding an Open House today from 1-5 pm today. If you’re in the area you’ll have to stop by and say hello. The address is

526 N. Whisman Rd. Mountain View, Calif.

It’s a great house and Mountain View is an extremely popular area being the home of Google and so many other “techie” companies. This home is close to freeways and shopping, was completely remodeled just 5 short years ago, and is a true delight. To see pictures, etc. go to http://www.WhismanHomeForSale.weebly.com

The numbers are out for December and all of 2009 now. While they are saying the job market looks better, the numbers still aren’t good. Personally, I think they’re a lot worse than they show. The fact that they don’t even count the people still out of work, but whose unemployment benefits have run out and they are no longer on the rolls, to me is very deceiving. The economy shed 85,000 jobs last month and the Unemployment Rate failed to dip below 10%. The one bright spot is that because of these numbers, mortgage rates continue to decline slightly, or at least stay at current levels.

As far as seeing the end of the housing crisis, there were a total of 3,957,643 foreclosure filings, which includes default notices, scheduled foreclosure auctions and bank repossessions. A total of 632,573 California properties received a foreclosure filing in 2009, the nation’s largest state foreclosure activity total. This was an increase of nearly 21 percent from 2008 and was the most for any state in 2009. After four straight month-over-month declines, California foreclosure activity in December increased nearly 9 percent from the November total, while the state’s fourth quarter foreclosure activity was still down 17 percent from the previous quarter.

I don’t look for these numbers to drop much in 2010. We’re actually due for another mortgage adjustment that will send the numbers to a new high for this year, and it’s not just “bum” loans and “bum” people getting caught up in the housing crash any more. Prime borrowers with loans thought to be secure are defaulting now, and have been. No matter what the media tries to have us believe, one of the worst housing market crashes in history is not going to be over ‘tomorrow’.

I’m listening to an attorney talking about renegotiating loans. That’s a good thing, but statistics show most loan modifications are not sustainable, meaning it’s a temporary state that is not going to last for the long term. He’s talking about renegotiating the loan and then still taking your house. I have a hard time with that. Most people renegotiate so they can stay in their home.

If you’re in trouble people, there are a number of resources open to you. Make sure you are getting all the information concerning what all of your options truly are.  If I can help you figure out what your options are, please feel free to call me anytime. If you don’t call me, just make sure you take some kind of action now.  Sitting on it is not going to help you. Time is not on your side.

Feel free to comment below. What situation are you in right now? Is your family safe?

Just a quick update: The attorney I’m listening to says his techniques won’t work with states that have anti-investor laws. Big red flag here in California!

If you are planning on staying in the home for a very long time and don’t care if it still drops in value for the next few years, I would say yes. The only reason I say this is because some of the first-time buyer programs that have been available for part of this year are getting ready to run out, specifically the $8000.00 federal tax credit available to first-time homebuyers that ends Nov. 30, 2009. While the National Association of Realtors and many of my colleagues are fighting hard to extend, and maybe even expand it, it may not be here when you finally decide the market has bottomed and you’re ready to jump in. The state of California (the state gov. program)stopped taking applications as of July 3, 2009 for the “new home credit” they were giving. All $100,000,000.00 they had allocated was gone. Also coming into this time of year, many local programs that are working with limited funds are running out of money. There again, many of them don’t know if they will be around next year.

Despite all the hoop-lah in the market, I don’t believe we’re any where near a recovery, as I have stated before. Many besides me say there is a whole new wave of foreclosures on the way, continuing our housing crisis. This, along with the fact the commercial real estate is crashing all around us which of course means even less jobs, more drops in the value of homes are inevitable. One thing I will say is first-time homebuyers are probably getting treated better than ever before as Realtors are hungry for sales. This year the Housing Affordability Index reached it’s highest point in 40 years. Since first-time buyers accounted for over half the sales for the first half of the year, according to the National Association of Realtors, Realtors affections have shifted.

For the not-so-savvy buyer, this can be a double edge sword.  Many agents because they are so hungry, end up pushing buyers to buy from their brokerage’s listings as opposed to the complete local inventory. If a buyer is not represented by their own agent (which you should if you want someone to look out for your interests more than the seller’s), they report sellers’ agents are calling them several times a day. Once a deal gets to the contract stage, many
cash-strapped brokers have been adding vague fees and other surcharges. Usually all these items they’re charging separately for are covered in their commission. If you’re agent or broker is adding in fees, ask them what the commission covers. They are already getting paid if they write up a successful contract.

Many first-timers are unaware of cozy ties between agents and the lenders, home inspectors and title companies they recommend—relationships that can boost a buyer’s costs. If your agent or broker is recommending someone or using “their own people”, ask them if they are getting a kick-back or referral fee. All of this is supposed to be disclosed to the client to start with. Many of us have our own people that treat us well because of an on-going business relationship. I use my people because they’re good, and many times they will give my clients and me a break because of the volume of business. I don’t want a referral fee. I want to close the sale.

Bottom line is no one knows for sure what shoe will drop next, but if you have been wanting to buy a home and you need assistance for the down-payment, the tax credit, etc., and you’re planning on being in your home for several years to wait until the market turns around and you have some equity, then this could be a perfect time for you. A National Association of Realtors survey showed that the average first-timer hopes to stay in the home for 10 years, up from seven at the peak of the boom.

If you have any questions about the market or anything to do with real estate, feel free to leave a comment below or contact me direct. There’s no obligation and no “fees” for talking to me. LOL