Market Matters Weekly Communication: Courtesy of C.A.R.

Robert W. Elmer — Sat, 21 Mar 2009 18:40:00 GMT

As a service to visitors of my website who wish to keep on top of important developments in California's real estate market, I am going to start posting the weekly Market Matters update, put out by the California Association of Realtors. We're giving it a trial run this week to see how it goes but are hoping to continue this service into the future. Here's this week's post:

March 19, 2009 Page 1 of 7

C.A.R. Mortgage Update

This week’s C.A.R. Mortgage Update contains information about how to avoid foreclosure scams;

assistance for struggling homeowners; a home appraisal’s affect on home sales; mortgage applications;

jumbo loans; and Fannie Mae and Freddie Mac refinance programs.

Bank opens ‘homeownership centers’ to help

JPMorgan Chase is opening “homeownership centers” staffed with counselors who meet one-on-one with

Chase, Washington Mutual, or EMC customers at risk for foreclosure. Counselors collect financial

information and send the data to banks for evaluation. Customers are notified within 30 days if they qualify

for loan modifications.

The company currently has homeownership centers open in Oakland and Santa Clara. It plans to open two

dozen centers nationwide by April, including seven more elsewhere in California.

To read the full story, please click here:

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/03/18/MN7B16I9OV.DTL

To view additional articles about mortgages, please visit the following:

U.S. mortgage applications spike on refinance demand

To read the full story, please click here:

http://www.reuters.com/article/newsOne/idUSTRE52H2O220090318

BofA seeks more jumbo mortgages: report

To read the full story, please click here:

http://www.reuters.com/article/topNews/idUSTRE52C1OE20090313

Second homes, investment properties could get Fannie, Freddie refis

To read the full story, please click here:

http://www.latimes.com/business/la-fi-harney15-2009mar15,0,5437082.story

March 19, 2009 Page 2 of 7

BusinessWeek

Signs of Life from the Real Estate Market

Some housing markets, especially those with the highest rates of foreclosure, are receiving multiple offers

on properties, as declining home prices enable more first-time home buyers to enter the market, and

investors are enticed by the opportunity to purchase properties at favorable prices.

KEEP THIS IN MIND

• Some homeowners who are underwater also are at risk of foreclosing, enabling home buyers to

purchase these homes at favorable prices. Often, lenders are more willing to negotiate a short sale

on a property if it will cost less money than a foreclosure. While this should create an opportunity

for home buyers to negotiate the sales price of the home, in some cases distressed properties are

receiving multiple bids, especially those in highly desirable neighborhoods.

• Home sales in areas near government, defense contractor, healthcare, biotech, and university jobs

are flourishing, as more people relocate to these areas for employment opportunities.

To read the full story, please click here:

http://www.businessweek.com/lifestyle/content/mar2009/bw2009035_187650.htm

March 19, 2009 Page 3 of 7

The Wall Street Journal

Cracking a Valuable Homebuyer Credit

Officials at the Internal Revenue Service (IRS) and tax specialists have reported an increase in call volume

from home buyers who are confused about the qualifications for the $8,000 federal tax credit for first-time

home buyers. Some also need assistance understanding the differences between the $7,500 tax credit

signed into law last year, and the $8,000 tax credit added this year.

KEEP THIS IN MIND

• First-time home buyers – those who have not owned a principal residence for three or more years –

received two tax credits over the last two years. One was passed and signed into law in 2008, the

other in 2009.

• The 2008 credit is a tax credit for first-time home buyers who purchased a house between April 8

and Dec. 31, 2008. The home buyer may claim 10 percent of the home’s purchase price, as a

credit, capped at $7,500. Although called a “tax credit,” this homeowner benefit actually is a 15-

year interest-free loan, which must be paid back in equal installments over a 15-year period.

• The 2009 credit is for 10 percent of the home’s purchase price, capped at $8,000. This credit is for

first-time home buyers who purchase a house between Jan. 1 and Nov. 30 of this year. The

$8,000 tax credit does not have to be repaid.

• In both cases, the home buyer may choose to claim the tax credit on either the 2008 or 2009

federal tax return.

• The tax credits are offered on a sliding scale, based on income. Individuals with annual incomes of

$75,000 or less may be eligible for the full amount of the tax credit. Married couples filing jointly

must earn less than $150,000 to qualify for the full amount. Individuals earning between $75,000

and $95,000, and married couples filing jointly who earn between $150,000 and $170,000, may be

eligible for a smaller portion of the tax credit, but not the full amount. The tax credit is not available

to individuals who earn more than $95,000 or married couples filing jointing who earn more than

$170,000.

• Nonresident aliens, homes outside of the United States, and homes inherited, gifted, or acquired

from a relative are exempt from the tax credits.

To read the full story, please click here:

http://online.wsj.com/article/SB123732757823462281.html

March 19, 2009 Page 4 of 7

The Washington Post

A Higher Bar for Those Low Mortgage Rates

Mortgage rates are near historic lows, spurring an increase in mortgage applications and applications to

refinance. However, most financial institutions have tightened their loan underwriting standards, making it

more difficult for home buyers to qualify for the best rates. In many cases, borrowers must issue a down

payment of at least 20 percent; borrow $729,750 or less; have a credit score of at least 720; carry low debt

relative to reliable income; buy in an area where home prices are relatively stable; and use a community

bank rather than a national bank, to qualify for the best rates.

KEEP THIS IN MIND

• Most of the risky loan packages, such as “stated income” loans, where borrowers were not required

to document their income, and option adjustable-rate mortgages, where consumers could choose

to pay less than the interest due, are no longer available. Some financial institutions offer interestonly

loans, but they can be quite costly.

• The majority of today’s mortgage loans are through Fannie Mae, Freddie Mac, and the Federal

Housing Administration (FHA). Combined, the government sector accounts for 87 percent of

mortgages. Purely private financing is rare.

• The government entities purchase and/or guarantee loans up to a certain limit. In high-cost areas,

such as most areas of California, the conforming loan limit is $729,750. The best interest rates are

offered on conforming loans. Jumbo loans – those that exceed $729,750 – are more expensive

and can cost a quarter-point to a full percentage point more.

• Fannie Mae and Freddie Mac also have added a quarter-point “adverse market delivery charge”

due to declining home prices. They also have instituted “risk-based pricing,” which raises fees on

borrowers with credit scores of less than 720. Borrowers purchasing a condominium and putting

down less than 15 percent also will pay more for a Fannie Mae or Freddie Mac loan.

• Borrowers with a down payment of less than 20 percent also are required to take out private

mortgage insurance. Premiums have increased in most parts of the country, including California.

• Consumers without a 20 percent down payment may be eligible for a mortgage loan through the

FHA, which accepts down payments as low as 3.5 percent. The FHA charges an upfront mortgage

insurance premium of 1.75 percent, which can be added to the loan, in addition to a monthly

premium.

• Although rare, the U.S. Dept. of Veterans Affairs (VA) and U.S. Dept. of Agriculture offer loans in

rural areas with no down payment or mortgage insurance requirements.

To read the full story, please click here:

http://www.washingtonpost.com/wp-dyn/content/article/2009/03/14/AR2009031400055.html

March 19, 2009 Page 5 of 7

In Other News…

Los Angeles Times

Southland median home price holds to $250,000 in February

To read the full story, please click here:

http://www.latimes.com/business/la-fi-homes18-2009mar18,0,472405.story

Press Enterprise

Inland counties’ plans to use federal funds for housing relief put in place

To read the full story, please click here:

http://www.pe.com/business/local/stories/PE_News_Local_S_supes18.3c5eda6.html

The Wall Street Journal

Frank prepares bill to revamp Fannie, Freddie

To read the full story, please click here:

http://online.wsj.com/article/SB123731839854160139.html#articleTabs%3Darticle

Los Angeles Times

Rate of mortgage fraud falls in California

To read the full story, please click here:

http://www.latimes.com/business/la-fi-mortgage-fraud17-2009mar17,0,1098124.story

March 19, 2009 Page 6 of 7

The Wall Street Journal

Safe havens: Credit unions earn some interest

To read the full story, please click here:

http://online.wsj.com/article/SB123708535764231521.html

The Wall Street Journal

Housing plan creates opening for scammers

To read the full story, please click here:

http://online.wsj.com/article/SB123673412204590481.html

CNNMoney

Housing starts unexpectedly surge

To read the full story, please click here:

http://money.cnn.com/2009/03/17/real_estate/housing_starts/index.htm?postversion=2009031709

March 19, 2009 Page 7 of 7

What you should know about the market…

• Homeowners who currently do not qualify for aid under the federal housing-rescue plan still may

qualify for tax credits on energy-efficient upgrades. As part of the stimulus plan signed into law by

President Obama, homeowners may qualify for up to $1,500 in tax credits for adding qualifying

windows, doors, insulation, roofs, heating and cooling equipment, water heaters, and wood and

pellet stoves. The installations must take place in 2009 or 2010 to qualify for the tax credit.

• Accurately pricing a home continues to be a top factor in determining which homes sell quickly.

Working with a REALTOR® to determine the right price is key, as real estate markets are local and

REALTORS® are most qualified to recommend an accurate price, based on experience and recent

sales in the area.

Woodhaven Home For Sale in Southeast Redding

Robert W. Elmer — Sat, 04 Aug 2007 20:47:00 GMT

Welcoming 3/2 with Numerous Upgrades

• 1,490 sq. ft., 2 bath, 3 bdrm ranch - MLS® #07-5962 $279,900 - In the Heart of Woodhaven

Southeast Redding, Redding - Very well maintained and inviting home in the heart of Woodhaven. Numerous recent upgrades include AC/heater (new ducting compliant!); garage door and opener; side garage door; appliances including dishwasher, range-oven, built-in mirowave with exhaust hood, and refrigerator. (Washer/dryer also stay.) Meandering sidwalk installed throughout backyard. Screened porch, laundry room, gas stub for BBQ.

Property information

Website Progress

Robert W. Elmer — Fri, 08 Jun 2007 17:52:00 GMT

Greetings All,

In the future these blogs will be used to update you on market conditions as well as progress and new features added to the website. I anticipate the first market update to occur after the June quarter is over, with continuing updates on a monthly basis thereafter. Today's blog updates the progress on this website.

While few visible changes have occurred in the last couple of weeks, progress behind the scenes continues. The two main items of focus have been the text for the home page, Redding & Shasta County Real Estate, and work in the MLS Homes For Sale page. The work on the home page is nearing completion and should be finished by Monday, May 11. The text is written and all that remains is proof-reading and link additions to the text.

On the MLS Homes For Sale page the changes being worked concern the addition of subdivision names incorporated into the price range descriptions. These descriptions are meant to help the user identify which subdivisions are represented in the various price ranges. It also helps rank the appropriate pages higher in search engines when consumers search for properties by subdivision. As with all things Internet related, the proper categorizing of information helps both the website offering the information and the consumer trying to find the information. Our goal here is to make the discovery of pertinent information as seamless as possible.

Currently the work being completed on the MLS Homes For Sale page involves Redding MLS Homes For Sale. In the future work will begin on Shasta County Homes For Sale. While many of the links are already "live" at the bottom of the page, it is anticipated that the Shasta County MLS searches results will be moved to their own page where the consumer will be able to find the information more readily.

Future changes with MLS search pages will involve getting the Commercial, Investment, and Business Opportunity pages completed. The Area Information link page and the Real Estate Statistics page that users of the old site became accustomed to will also find their way back in the not-too-distant future.

Please fell free to post any comments, suggestions or critiques you may have. This is a consumer oriented site that values the input of our current and future clients.

Sincerely,

Robert Elmer

Single Story For Sale in None

Robert W. Elmer — Fri, 05 Jan 2007 06:00:00 GMT

Perfect For First Time Buyer

• 1,080 sq. ft., 1 bath, 3 bdrm single story - MLS® #07-166 $174,900 - Cosmetic Fixer

None, Shasta Lake - Now Vacant! - This is not a drive-by! Home has had over $14,000 of improvements and upgrades in the last three years including: roof; evap. cooler; wall furnace; outside paint; carpeting; tile in entry and bath; new doors; bathroom tub and surround, toilet, and plumbing; water heater; stove; GFIs; ceiling fans; and carport. Excellent value at under $175,000.

Property information