Hi Everyone,
I wanted to share this excerpt from an article I read on housing values - I think those of you who have been fearing that you will never see value in your home again will take great comfort in this expert's opinion:
Rismedia: Feb 20, 2009Commentary: House Prices Will Rise Greatly over the Next Few Years, Buy Now
..."when the money supply is increased by an amount equivalent to 20 or 30% of Gross Domestic Product or more-naturally or unnaturally, inflation must result. That means that prices of all fixed assets rise to keep pace with the devaluation of the currency...Now, what is going to happen to home prices over the next few years?
... a side effect to saving America’s economy will be a robust increase in inflation. I believe that Inflation will regain all the “value” we lost in housing over the past two years, and that it will regain it in five years or less. Simply put, to put the brakes on inflation, government must inhibit the recovery. The people in power aren’t going to do that. Inflation is a necessary evil compared to a full scale depression and an acceptable trade off for most of us. (And oil won’t stay at about $40 a barrel too long, either!)
So tell your clients the truth: Interest rates will never be this low again in their lifetimes. Home prices won’t be this low again in their lifetimes. This is the perfect storm economically, but it also the perfect time to buy a home; provided that you buy it as a home and not a piggy bank. It’s just a nice side benefit that five years from now, the home you bought today will have appreciated so much that you’ll be thinking (just like I did in 1979): “What a smart investor I am!”
About the Author: Mike Parker specializes in online marketing services for Realtors® and real estate professionals.
I hope that makes you feel a bit more positive about the future. Let me now what you think. And incidentally, I rebuilt my website at www.LAhomesite.com - I'd love your feedback. Thanks!
Thursday, February 26, 2009
Thursday, February 19, 2009
Hi Friends,
I just wanted to pass on the most recent information regarding the new legislation being pased regarding taxes and housing tax credits. James Liptak, President of the California Association of Realtors, reports the following in our most recent C.A.R. newsletter:
"Following several months of debate and delays, our state representatives in Sacramento delivered a 2009-2010 budget to Governor Schwarzenegger today. The governor is expected to sign the budget as presented. Although details are sketchy, the budget appears to raise existing sales tax levels by 1 percent, and places a 0.25-percent income tax increase across the board. Under provisions included in the new budget, the vehicle license fee will increase from 0.65 percent to 1.15 percent of a vehicle’s value.
The budget also includes: a tax credit (equal to the lesser of 5 percent of the purchase price, or $10,000) for the purchase of a single-family residence that has never been occupied, as a principal residence, between March 1, 2009, and March 1, 2010; and a 90-day additional delay in foreclosure sales, intended to force lenders to implement a proactive workout program that rewrites loans in default."
As you know, we cannot count on the media to report in a timely manner, as it took them almost a year to acknowledge that we had been in a recession for at least a year. It would not behoove buyers and sellers to wait fot the media to finally report a Recovery, as by then the window of opportunity for sales and purchases would be closed. Recent predictions across the board are for an increase in interest rates, and for Recovery in 2010. The number of foreclosures held steady or fell in number this month (depending on the area) - a positive indicator; and the Stimulus plan is intended to reduce foreclosure activity, which should further stabilize prices. Thus, if you are considering any kind of real estate transaction, economic indicators suggest that you move soon while we are still at a market low. By the time you hear the news that we are out of the hole, you will have to pay more for the same deal. I will pass on more news as it is released. Call or email me if you like to peruse charts and graphs and I will get some to you immediately. Wishing you all health, security and prosperity in these tough, but opportunity rich times.
I just wanted to pass on the most recent information regarding the new legislation being pased regarding taxes and housing tax credits. James Liptak, President of the California Association of Realtors, reports the following in our most recent C.A.R. newsletter:
"Following several months of debate and delays, our state representatives in Sacramento delivered a 2009-2010 budget to Governor Schwarzenegger today. The governor is expected to sign the budget as presented. Although details are sketchy, the budget appears to raise existing sales tax levels by 1 percent, and places a 0.25-percent income tax increase across the board. Under provisions included in the new budget, the vehicle license fee will increase from 0.65 percent to 1.15 percent of a vehicle’s value.
The budget also includes: a tax credit (equal to the lesser of 5 percent of the purchase price, or $10,000) for the purchase of a single-family residence that has never been occupied, as a principal residence, between March 1, 2009, and March 1, 2010; and a 90-day additional delay in foreclosure sales, intended to force lenders to implement a proactive workout program that rewrites loans in default."
As you know, we cannot count on the media to report in a timely manner, as it took them almost a year to acknowledge that we had been in a recession for at least a year. It would not behoove buyers and sellers to wait fot the media to finally report a Recovery, as by then the window of opportunity for sales and purchases would be closed. Recent predictions across the board are for an increase in interest rates, and for Recovery in 2010. The number of foreclosures held steady or fell in number this month (depending on the area) - a positive indicator; and the Stimulus plan is intended to reduce foreclosure activity, which should further stabilize prices. Thus, if you are considering any kind of real estate transaction, economic indicators suggest that you move soon while we are still at a market low. By the time you hear the news that we are out of the hole, you will have to pay more for the same deal. I will pass on more news as it is released. Call or email me if you like to peruse charts and graphs and I will get some to you immediately. Wishing you all health, security and prosperity in these tough, but opportunity rich times.
Friday, January 9, 2009
GWEN BANTA - NOW AT SOTHEBY'S!
Hi Everyone,
I am proud to announce that I am now at Sotheby's International Realty on the world famous Sunset Strip, where I will be developing my own expert team. . You can count on the same great service, and at an internationally renowned company known for its class and excellence. My direct contact number is the same: 323-656-0714, and my new office number is: 310-205-0305. I look forwarding to serving you in 2009. Wishing you all a great year full of excitement, change, health and prosperity! Warm regards, Gwen Banta - L.A.'s "Sherlock of Homes"
I am proud to announce that I am now at Sotheby's International Realty on the world famous Sunset Strip, where I will be developing my own expert team. . You can count on the same great service, and at an internationally renowned company known for its class and excellence. My direct contact number is the same: 323-656-0714, and my new office number is: 310-205-0305. I look forwarding to serving you in 2009. Wishing you all a great year full of excitement, change, health and prosperity! Warm regards, Gwen Banta - L.A.'s "Sherlock of Homes"
Saturday, December 13, 2008
Happy Holidays - Great Rate Changes This Week!
Happy Holidays, Everyone! It was a Christmas gift indeed when rates fell again this week, encouraging buyers and sellers alike and giving hope to those folks feeling strapped by high mortgage payments who want to refinance their loans. This is the latest information on mortgage rates reported by Tom Petruno in the L.A. Times on 12/12:
"Mortgage rates are down for a sixth straight week, a sign that the government's latest efforts to break up the credit market logjam are working. The average 30-year fixed home loan rate fell to 5.47% this week -- a four-year low -- from 5.53% last week, mortgage giant Freddie Mac said. The rate has tumbled from 6.46% at the end of October. U.S. regulator James Lockhart, whose agency oversees Freddie Mac and Fannie Mae, said Wednesday that the government's programs to ease the credit crunch could push mortgage rates "well below 4%," the Associated Press reported. But Lockhart didn't give a timetable for that kind of drop. Home loan rates fell quickly beginning the week of Nov. 24. That was when the Federal Reserve said it would commit $600 billion to buy mortgage-backed securities of Freddie, Fannie and other U.S. agencies..."
What does that mean to the consumer in a market that has frightened buyers and depressed sellers?
As stated in the California Association of Realtors article entitled "Why Buy a Home in Today's Market? (certainly a question we have all been asking): "Interest rates on long-term, fixed, and adjustable mortgages are at historically low levels. The rate on a 30-year, fixed mortgage is hovering below 6 percent [note: even lower rates today], while, by comparison, interest rates were hitting 8 percent and higher during the last market downturn in the late 1990s, and were between 10 and 12 percent at the height of the last housing boom in the 1980s. Lower interest rates make it easier to qualify for a loan, and your monthly payments are more affordable.
Buyers, now is the time to pick up bargains on homes you never could afford before. For those of you with good credit and a solid down payment, lenders are still offering great loans at great rates; and don't forget that those who qualify for FHA loans can still get in with a greatly reduced down payment of as low as 3% depending on the price of the home to be purchased. And sellers, take heart, buyers are knocking on doors again, so if you are ready to make a reasonable deal, they are still happening everywhere. And that news is my gift to all of you. Have a blessed Holiday season!
"Mortgage rates are down for a sixth straight week, a sign that the government's latest efforts to break up the credit market logjam are working. The average 30-year fixed home loan rate fell to 5.47% this week -- a four-year low -- from 5.53% last week, mortgage giant Freddie Mac said. The rate has tumbled from 6.46% at the end of October. U.S. regulator James Lockhart, whose agency oversees Freddie Mac and Fannie Mae, said Wednesday that the government's programs to ease the credit crunch could push mortgage rates "well below 4%," the Associated Press reported. But Lockhart didn't give a timetable for that kind of drop. Home loan rates fell quickly beginning the week of Nov. 24. That was when the Federal Reserve said it would commit $600 billion to buy mortgage-backed securities of Freddie, Fannie and other U.S. agencies..."
What does that mean to the consumer in a market that has frightened buyers and depressed sellers?
As stated in the California Association of Realtors article entitled "Why Buy a Home in Today's Market? (certainly a question we have all been asking): "Interest rates on long-term, fixed, and adjustable mortgages are at historically low levels. The rate on a 30-year, fixed mortgage is hovering below 6 percent [note: even lower rates today], while, by comparison, interest rates were hitting 8 percent and higher during the last market downturn in the late 1990s, and were between 10 and 12 percent at the height of the last housing boom in the 1980s. Lower interest rates make it easier to qualify for a loan, and your monthly payments are more affordable.
Buyers, now is the time to pick up bargains on homes you never could afford before. For those of you with good credit and a solid down payment, lenders are still offering great loans at great rates; and don't forget that those who qualify for FHA loans can still get in with a greatly reduced down payment of as low as 3% depending on the price of the home to be purchased. And sellers, take heart, buyers are knocking on doors again, so if you are ready to make a reasonable deal, they are still happening everywhere. And that news is my gift to all of you. Have a blessed Holiday season!
Tuesday, November 25, 2008
December Newsletter
Happy Holidays, everyone! Think "bounty" this season, for although many people are struggling right now, there seems to be some hope on the horizon. (Even those cynics on Wall Street have been responding favorably in the last few days - a welcome turnaround from the last few months of doom and gloom.)
My next newsletter contains articles that range from Repair Suggestions to Divorce Snafus and from Shopping Multiple Lenders to GFI outlets, so please check it out or contact my office at 323-656-0714 to be added to the mailing list.
Congratulations to Gerard and Lindsey, who are having a baby and who deserve everything wonderful. Also, Congrats to Deb and Jeff and Vince and Hilary for landing their new homes for the holidays. And thanks to all of you for your comments and questions.
Remember, FHA loans are still available for those qualified with only a 3-5% down payment, so buy now while rates and prices are low - 'tis the Season. Enough business - Go enjoy your dinner! - gb
My next newsletter contains articles that range from Repair Suggestions to Divorce Snafus and from Shopping Multiple Lenders to GFI outlets, so please check it out or contact my office at 323-656-0714 to be added to the mailing list.
Congratulations to Gerard and Lindsey, who are having a baby and who deserve everything wonderful. Also, Congrats to Deb and Jeff and Vince and Hilary for landing their new homes for the holidays. And thanks to all of you for your comments and questions.
Remember, FHA loans are still available for those qualified with only a 3-5% down payment, so buy now while rates and prices are low - 'tis the Season. Enough business - Go enjoy your dinner! - gb
Friday, October 31, 2008
My Newsletter
Hey Folks, Be sure to check out my November newsletter at http://www.clientdirect.net/news/?Pub=28812 for a lot of valuable information from Real Estate to Organic foods and Green Cars - it's all for you, and it's all part of California living! - GB
Monday, October 27, 2008
Hi Everyone - I just wanted to mention a weekly market update newsletter that is SO informative, interesting and entertaining. It's one of my favorites, and it's called The Mortgage Market Guide from Barcode Financial. Check it out for weekly reports that are quick, easy overviews of different aspects of the market (financial and housing) if you need some clarification on what the heck is happening out there. I know it feels as if any second now Dorothy and Toto are about to fly past your window, so you may want an idea of which way the storm is heading and where Auntie Em can go for cash if she needs a new home when the storm blows over. Have a great week - Gwen
Subscribe to:
Posts (Atom)
Posts
