There was a 27% decline in re-sales from June to July and a 12% drop in new home sales. The media has been talking about a Double-Dip recession. Well It should not be too much of surprise that there was a sharp decline in sales because of the expiration of the tax credit.
There have been some positive points in Real Estate. Every major index put out recently by government agencies and private researchers has found home prices stable or appreciating in most areas of the country. Interest rates have hit the mid-four percent range which has expanded the amount of people who can afford to buy homes. The problem is that even though these families can afford to buy homes they are not buying homes. This is most likely due to the outlook on unemployment– potentially their own. Some modest good news on jobs- in last weeks new filings for unemployment benefits dropped by 6%.
While the media has been highlighting the negatives of the the Real Estate Market try to remember that there are some positive things happening and the basic peices are in place for improvement once the economy generates more jobs.
J.D. Power and Associates announced that the Prudential Real Estate Network ranked “Highest Overall Satisfaction for Home Sellers among National Full Service Real Estate Firms” in the J.D. Power and Associates 2010 Home Buyer/Seller Study. This marks the second time in three years that Prudential ranked highest in seller satisfaction! Prudential Real Estate also ranked second in the nation for home buyers.
Over the last five years, one of the newest developments in real estate is the ability for home buyers and sellers to search online for a home’s value. Popular Web sites such a Zillow.com, Cyberhomes.com, and Eppraisal.com offer free home estimates, but some consumers and real estate industry professionals say the values calculated often are inaccurate and misleading.
KEEP THIS IN MIND
• Online home appraisal Web sites assign home values without knowing the features or upgrades of a home or the neighborhood in which it is located. Some Web sites offer a price range of $20,000 – $40,000 more or less than the actual value of the home.
• Since housing markets are local and not every home of a certain size is the same value, consumers can be misled into believing a home is worth more or less than the actual value. Working with a Realtor that specializes in a geographical area, like The Mia&Beverly Team, can help minimize inaccuracies in home values The Mia&Beverly Team can provide local housing market data and show homeowners and buyers recent sales of comparable homes in the area, to help determine an accurate list or offer price.
• While some people report that Web estimates can educate home buyers and sellers and provide a reasonable assessment of market conditions and the home-buying process, working with your area specialist is the best option.
Market Update July 2010
Town homes and Condominiums built after 1998
Only 3 homes sold and closed escrow in July and all 3 were bank owned properties. There are 33 active listings, 58% are distressed properties- 19 are short sales. Currently there are 54 pending sales, 94% are distressed properties- 50 short sales and 1 bank owned.
Single Family Homes in Dublin built since 1998
16 sold in an average of 26 days on the market.
31% were distressed properties-2 short sales and 3 bank owned.
Currently there are 33 active listings 24% are distressed properties- 6 short sales and 2 bank owned.
There are 36 pending sales 67% are distressed properties- 20 short sales and 4 bank owned.
Keep in mind that short sales take months to close so the percentage of distressed home will be higher.
WASHINGTON – In an effort to help responsible homeowners who owe more on their mortgage than the value of their property, the U.S. Department of Housing and Urban Development today provided details on the adjustment to its refinance program which was announced earlier this year that will enable lenders to provide additional refinancing options to homeowners who owe more than their home is worth. Starting September 7, 2010, the Federal Housing Administration (FHA) will offer certain ‘underwater’ non-FHA borrowers who are current on their existing mortgage and whose lenders agree to write off at least ten percent of the unpaid principal balance of the first mortgage, the opportunity to qualify for a new FHA-insured mortgage.
The FHA Short Refinance option is targeted to help people who owe more on their mortgage than their home is worth – or ‘underwater’ – because their local markets saw large declines in home values. Originally announced in March, these changes and other programs that have been put in place will help the Administration meet its goal of stabilizing housing markets by offering a second chance to up to 3 to 4 million struggling homeowners through the end of 2012.
“We’re throwing a life line out to those families who are current on their mortgage and are experiencing financial hardships because property values in their community have declined,” said FHA Commissioner David H. Stevens. “This is another tool to help overcome the negative equity problem facing many responsible homeowners who are looking to refinance into a safer, more secure mortgage product.”
Today, FHA published a mortgage letter to provide guidance to lenders on how to implement this new enhancement. Participation in FHA’s refinance program is voluntary and requires the consent of all lien holders. To be eligible for a new loan, the homeowner must owe more on their mortgage than their home is worth and be current on their existing mortgage. The homeowner must qualify for the new loan under standard FHA underwriting requirements and have a credit score equal to or greater than 500. The property must be the homeowner’s primary residence. And the borrower’s existing first lien holder must agree to write off at least 10% of their unpaid principal balance, bringing that borrower’s combined loan-to-value ratio to no greater than 115%.
In addition, the existing loan to be refinanced must not be an FHA-insured loan, and the refinanced FHA-insured first mortgage must have a loan-to-value ratio of no more than 97.75 percent. Interested homeowners should contact their lenders to determine if they are eligible and whether the lender agrees the write down a portion of the unpaid principal.
To facilitate the refinancing of new FHA-insured loans under this program, the U.S. Department of Treasury will provide incentives to existing second lien holders who agree to full or partial extinguishment of the liens. To be eligible, servicers must execute a Servicer Participation Agreement (SPA) with Fannie Mae, in its capacity as financial agent for the United States, on or before October 3, 2010.
As many of you may have noticed the Fallon Sports Park is open! The official city dedication ceremony will take place Saturday August 28th. There will be games and other activities for the public from 11am to 2pm.
Fallon Gateway shopping center located between Dublin Blvd, Fallon Rd., and Interstate 580, will have Target to be its anchor business. There are also talks of Circuit City, Good Guys, and Mervyn’s to be possible tenants for the Fallon Gateway Shopping Center.
We are hopeful that the arrival of Target to East Dublin will also make the available space in Grafton Station and The Promenade more desirable to prospective tenants because of the increased traffic.
Cellar 9 Wine Bar and Steakhouse is coming to Grafton Station this Fall. The owner is a former partner in McNamara’s Steak House and has years of experience with Hungry Hunter. The restaurant will be 4,600 sqft. and have an extensive wine bar and a small plate menu in addition to the sit down steak dinner. We believe this will be a great compliment to both Buffalo Wild Wings, and Karma Fusion Night Club.
Under the Treasury’s Home Affordable Unemployment Program certain unemployed home owners can have their payments reduced or suspended for a minimum of 3 months. This is a forbearance program, which means the unpaid amount can be added to the balance or repaid in other ways depending on the servicer. You can’t already be more than 3 months delinquent on your mortgage and you must meet other requirements. For more info Click Here
The City of Dublin will be showing Cloudy With a Chance of Meatballs this Friday August 6th, 2010 at 7:30 pm at Emerald Park located at Tassajara rd. and Gleason Dr. This is a free event. You are encouraged to bring lawn chairs and blankets. Arrive early to participate in fun free activities. Refreshments will be available. No pets please.
I have been storing mine in my garage for some time now.
Livermore Household Hazardous Waste Facility
5584 La Ribera St.
Directions: Interstate 580 to Vasco Road exit. From the freeway, go south on Vasco Road to Brisa Street, turn right on Brisa Street and right again on La Ribera Street. The facility is found in the Thomas Guide on page 696, section D.
NO APPOINTMENT NEEDED
ON THE FOLLOWING DATES:
Thursday, Friday and Saturday:
9 AM to 1 PM
Here is a link to their website in case you need to get rid of other hazardous waste
You can dispose of used batteries in your recycle garbage can as long as you put them in a clear plastic bag zip lock bag.