Be Careful Out There!

I don't know if it's the upcoming holiday, or if people are just more rushed and careless nowadays, but I've been hearing more tales of robberies in the past week.
First there was a warning by one of the agents at our Realtors' breakfast yesterday that women's purses are being lifted out of grocery carts. Then someone else mentioned that young mothers in parking lots were the newest victims, because they couldn't leave toddlers or babies in carriages alone to chase after a purse snatcher...they warned them to shop in pairs.
Back at the office, there was an email telling us to be certain to hang lock boxes on door knobs or water pipes, because robbers were taking boxes that are sitting unattached and drilling them open, then using the keys inside to enter vacant, staged houses and make off with the expensive furniture and decorator items.
One of my friends in the office had a worse experience. This week, her car key was stolen from the gym she attends, and her car and purse (left in the car for "safekeeping!) were stolen. Imagine the hassle of having to cancel all of her credit cards...but not before the thief made a $1700 purchase at Best Buy...re-key her house, and put a freeze on her name at the credit bureaus. The car is still missing.

Santa or Scrooge?

The House of Representatives has moved two bills designed to aid the flagging real estate market forward to the Senate for approval. Whether they will approve them this year and put some solutions to the market troubles in our stockings for Christmas remains to be seen.
The first bill, FHA Reform S. 2338 will provide existing homeowners with secure and affordable refinancing alternatives and more mortgage options for first-time homebuyers. Increasing the supply of affordable mortgage money is a critical component for bringing stability to the nation’s turbulent housing markets.
The second allows regional increases to the Freddie Mac/Fannie Mae loan limits. This change will make lower-cost mortgage financing available to more families trying to buy homes in high cost areas like ours and increase the supply of mortgage money.
Had FHA loans been a viable product in the recent past, many families would not have fallen prey to the risky sub-prime mortgages causing record numbers of defaults and foreclosures. The specific reforms proposed include: increased FHA mortgage limits nationwide and in high cost areas and lower FHA downpayment requirements.
Please, Santa, please...

Operation, One Warm Coat

Just after Thanksgiving, the Emergency Housing Consortium opens their cold weather shelters in Sunnyvale and Gilroy. Once again, Coldwell Banker and the Silicon Valley Association of Realtors (SILVAR) will help their efforts through our Operation, One Warm Coat.
We will be collecting and distributing items that are needed...warm coats, sweaters and jackets for all ages...to their proper locations.
We are asking for your support again. Your donations will help EHC to meet their goals successfully, and all items will be greatly appreciated by those in need. Receipts are available upon request.
About EHC: Just past its 25th year of operation, EHC now has a new name, EHC LifeBuilders, which more accurately describes its work of providing emergency housing, shelter, and services to assist the homeless in rebuilding their lives. It is constantly expanding its services to people who are homeless or at risk of becoming homeless in Santa Clara County. Their growth and continuing need is evident in both its longstanding and new programs.
A recent merger with Social Advocates for Youth, an agency which serves about 100 young people in the County, and a new shelter for the homeless that opened in early 2005 in Palo Alto, are two of its newer projects.
I will be happy to pick up any donations in Sunnyvale or Cupertino, or you can drop them at my office, 10105 South DeAnza Blvd. in Cupertino....Bobbie

Foreclosures and Santa Clara County

Sharon Simonson recently wrote about the local foreclosure situation in the San Jose Business Journal. I found this information especially interesting, since I had just written about foreclosure investors in my post, "The Foreclosure Gurus."
The consensus is that getting a good deal is not as easy as it sounds. Of the more than 12,000 foreclosed California homes put up for sale in October, 97% went back to the bank, according to Foreclosure Radar. (In Santa Clara County, only 7 of 237 homes did not go to the bank)
Even though 30 or 40 more people than usual showed up on the courthouse steps the week after Donald Trump was here to give his "Real Estate Wealth Expo", they must have been disappointed. Bidders at local auctions routinely carry as much as a $1 million in cashier's checks in order to compete, and they must be able to give the auctioneer the full winning price on the spot.(There are very few properties for sale in Santa Clara County for less than $300,000).
Not only is this kind of capital needed, it is also a high-risk business. A bidder had better be an expert on buying and selling and market conditions, and he must be able to search for liens and encumbrances on title. The chance that the market will further reduce the value before the house is ready to sell is pretty high. The odds are also high that the house has been neglected by the owner, and the buyer has no chance to inspect the inside of the house before purchase. Add to this the probability that the occupants may have to be evicted, and it's clear that this is not a game for amateurs.

Where the Market is Sizzling

I've often written about our local "oasis" and the strong market here. But where else in the country are these areas, and why are they "bucking the trend"? Well, if the economy's OK, the local real estate values are, too. For example, Beaumont, Texas is looking to recruit 18,000 new employees for its expanding petrochemical industry...the average home price there was up over 10% in 2007. Also, those metropolitan areas where housing is still relatively affordable were more likely to see increases. If more than 40% of the homes could be purchased by a family with a medium income for the area, prices increased more than the 3.2% national average in 2007. A few of these "hot pockets" are: Ogden, Utah (15.2%), Albuquerque, New Mexico (9%), Asheville, North Carolina (10.9%), and Richmond, Virginia (6.9%).
Prices are truly sizzling in Wenatchee, Washington, where an influx of retirees have moved prices up 23.5% in the past year, and Salt Lake City, where a newly booming tech industry has brought about a 16% increase. A post-tech-bubble in Seattle and an expanding energy industry work force in Grand Junction, N.C. have increased home values in those communities by over 9%.
How to account for these exceptions? Mostly the law of supply and demand, with some added element of wild speculation.

The Foreclosure Gurus

I read an interesting article in the December issue of Money Magazine about the foreclosure classes that are proliferating all over the country. Are they teaching how to avoid foreclosure? No, these so-called "Foreclosure Gurus" are holding expensive seminars on how to make a fortune in buying pre-foreclosure and foreclosure properties. Foreclosure investing has become what flipping was a couple of years ago...the road to riches. As usual in these cases, the real money is made by those putting on the seminars. The National Foreclosure Institute launched last year, and charges $3955 for a three day course which "responds to an acute marketplace need for qualified foreclosure professionals." On the web, RealtyTrac, a source of foreclosure listings, attracts over 3 million visitors a month. The publishers of Real Estate Investment for Dummies have come out with Foreclosure Investing for Dummies, and last month's best-selling real estate book was Be a Real Estate Millionaire: Secret Strategies for Lifetime Wealth Today by Dean Graziosi. (His last company promised to teach you how to make money selling cars you don't own.)
Even "The Donald" is getting in on the act. The Trump Institute is giving a one-day course in buying houses from homeowners behind in their loans. They say, "The current rise in foreclosures is an incredible opportunity for you to achieve the privileged life you've always dreamed about." Talk about tacky, Donald!

Need Some Home Repairs?

I just received an online newsletter from Kim at Gillespie Home Inspection. As you may know, these property inspectors (unlike Termite Inspectors) do not perform repairs themselves, and they don't recommend workmen or provide estimates.
But the newsletter had some good suggestions for finding good service for your home.
The first recommendation was Angie's List. This is an online collection of homeowners' real-life experiences with local companies...a good place to go when you want to find out what people in your area are saying about service companies they've hired.
Another good resource is Service Magic. The contractors listed are already checked for state licensing and insurance requirements, but be sure to get references before using them. The site is also full of home improvement projects, estimators, design galleries and all kinds of useful information for homeowners.
If you need an electrician, Gillespie lists Electricians Networks. You enter your zip code, and the type of electrician you need, and you are presented with the names of the most qualified licensed and screened electricians in your area. You can even get free multiple quotes online.
Don't forget to check the license of any workman you use with the State of California's Contractor's License Bureau.(or call them at (800) 321-CSLB) In our state, anyone who contracts to do work for more than $500 must be licensed. Our agents at Coldwell Banker strongly recommend the use of licensed workmen.
And that reminds me. We keep a continually updated list of reliable workmen in all categories for our clients. If you need a recommendation, send me an an email or call me...Bobbie

"So What's Happening in the Real Estate Market?"

Whenever I am part of a large group, like last night's wonderful Thanksgiving in Burlingame, the question about the market always comes up, because they all know that I'm a Realtor, and might have the "inside scoop". Of course, what they really mean is "Has my house's value gone up or down."
Having just read Sue McAllister's article about the recent increase in value of high-end Bay Area properties, I was especially prepared with the answers, but we've been seeing this trend in our office for some time. It's obvious that home sales in more expensive markets are more brisk than in less expensive ones, where first-time buyers are hampered by tighter mortgage lending standards. These buyers see the high default rates by subprime borrowers, and resist buying in a soft market.
But in the higher price ranges, especially $2 million and up, buyers are less affected by interest rate changes, and are financially able to buy if they choose. The luxury market is active, and these affluent buyers even face a scarcity of attractive inventory in some areas.

A Wonderful Thanksgiving

I want to wish my readers a special day spent with family and friends. I am lucky enough to be part of such a gathering later today, where the only thoughts of food are how perfect everything looks, and the promises we make to ourselves not to "overdo it" this year.
But I am very aware of the many people, even in our own community, who face a daily challenge to have enough food to feed their families. That's why I take the time out from cooking to make my annual contribution to Sunnyvale Community Services. Financial and in-kind help to this agency allows families and seniors facing a temporary crisis to stabilize their lives: to remain in their homes, keep utilities connected, secure needed medical attention and other critical services, and to put food on the table throughout the month.
Each year just before the holidays, the Sunnyvale Chamber of Commerce hosts an auction to benefit SCS’ Community Christmas Center in their building at 725 Kifer Road. This year, it's on Thursday, December 6th, from 5:00-7:00pm. The Community Christmas Center gives low-income families the dignity of selecting a two-week supply of food, toys and gifts for infants through teens, and a gift for every household (towels, blankets, basic kitchen items)
There is no admission fee to the auction though they ask for a donation of canned goods, a new toy, or household gift. Joe Antuzzi, owner of Il Postale, provides dinner for everyone. Network Appliance donates the wine and volunteer auction staff. 30-35 items comprise the oral auction, with about 200 more in the silent auction.
Don't miss this chance to take part in a community event and benefit those who really need our help....and have a wonderful Thanksgiving!

Something Worth Trying

If you're like me, you have an old cell phone or other gadget sitting around and gathering dust, but you don't want to bother selling it on Craig's List or eBay, and you're not sure of its value, anyway. I just had a wonderful experience with a startup company named Second Rotation that I heard about in a small article tucked away in the Merc's business section. The process is designed to be very simple: You sign up on the Web site, find what price you can get for your unused gear, and then print out a DHL shipping slip and send it away(They pay the postage!) You get paid by check or through PayPal.
I replaced my Palm Treo 600 with the 750 model last year, and had no idea what to do with the old one. After a few minutes on the computer, they offered me $59 for it. I wrapped it, attached the packing slip, and arranged for DHL to pick it up at my office...a week later, I'm $59 richer!
Behind the scenes, Second Rotation collects data from eBay to check current prices. It makes money by buying your goods a bit cheaper than what it thinks it can sell them for on eBay, according to company CEO Israel Ganot.
Right now, Second Rotation lists about 2,500 items and intends to expand to about 5,000 items in the coming months. The categories are cell phones, digital cameras, digital music players, camcorders and GPS devices.
"The premise of the business is that in the last two years the pace of innovation and upgrades is getting faster and faster," said Ganot. "We're trying to plug into the faster pace and help move things from one place to another."
People could sell these items themselves but the idea behind Second Rotation is to make it really easy for casual sellers. The company also intends to let people recycle consumer electronics that don't have any resale value. Rather than sell them on eBay, it will salvage parts and potentially work with recyclers, Ganot said. But this sounds like a convenient way to recycle and get money for your stuff at the same time.

Well, There's Good News and There's Bad News....

The bad news first. Last week Standard and Poor's released a report that said next year will be the worse for mortgage bank earnings since the 1990's. Yesterday, we watched the Dow Jones average tumble below the 13,000 mark, and it recovered only slightly today. Leading this drop were financial institutions led by Citigroup, which is expected to add as much as $15 billion in mortgage related write-downs, due to a longer and more extreme housing crisis than was expected.
But yes, there's good news, too. In the area I've dubbed the "Oasis", inventory is down again this week, and sales are up. This trend is especially strong in Cupertino, Sunnyvale and Los Altos, where we are still seeing multiple offers. Even more exciting is a continuation of this pattern in the County as a whole, where new listings on the market are fewer each week, and properties continue to sell for an average of 99.7% of their listed prices.

Shopping done? Check your appliances.

Many years ago, I put my stuffed turkey in the oven, set the temperature, and moved on to other activities like straightening the living room and setting the table for a big Thanksgiving dinner for the extended family. When I came back to the kitchen a few hours later, I found an ice-cold bird in an equally cold oven. The cleaning service had pulled the electric coils out when cleaning the stove, and although it was an easy fix, dinner was delayed for several hours that year.
A worse Holiday fiasco happened more recently. I live alone now, and rarely use my dishwasher. After a wonderful evening with my children and grandchildren, we loaded the dishwasher, and as it ran, the water backed up into the shower stall and overflowed into the bedroom. My sons turned off the water, and the plumbers cleared the line (with emergency rates, of course.) Drying the carpet took longer.
Repair Clinic.com has several suggestions for pre-party maintenance, like cleaning or replacing the range hood vents and replacing the drip pans under electric stove burners. Check out their site for other pointers. A holiday celebration shouldn't be spoiled because of an appliance mishap.

Another Adventure in the Land of Real Estate

I left home this morning to show property, feeling fully prepared and organized. I had made appointments at the houses my clients wanted to see, and carried printouts with the pertinent information about each of them. I was dressed professionally, and my car was clean and the gas tank was full. When I arrived at my clients' Sunnyvale home, I was delighted when Linda volunteered to drive, because I had chaired a silent auction last night, and it would be a treat to sit in the back seat and relax. Although she knew the areas well, I wouldn't have my GPS as a backup, so I switched to "Plan B" and brought along a Barclay's Map Book, "just in case."
We were in San Jose before I realized that my lockbox key wasn't in its slot in my purse. Thank heavens for friends/clients with a sense of humor! I commented, "There goes my reputation for being efficient," as we headed back to Sunnyvale to retrieve the key from the front seat of my car. The trip was worthwhile and uneventful after that, but 35 years in real estate have taught me that there can still be surprises.
Some stories from Realtors I've known have involved triggering a security alarm that was supposed to be turned off, and being locked in a garage without a cell phone when the auto-locking door to the house swung shut. My very favorite story happened many years ago to an old timer named Frank. He had taken new clients out to look at properties in his brand new Cadillac (before the Lexus became the "Realtor" car) and found himself completely lost. Adding to his embarrassment, he tried to back up off a narrow road, and managed to get all four tires stuck in deep mud. While they were waiting for the tow truck, a heavy rain started, and they had to abandon his car until the next day. He held an umbrella while the tow truck driver and her husband carried the very pregnant client to safety in the truck. Poor Frank...He lost the buyers, and never felt quite the same about that car again.

The Good, The Bad, and The Ugly

Unbelievable! There were three articles about the current real estate market in the Mercury News business section this morning, and all three gave different pictures of the market, and these were news articles, not Op Ed pieces.
One, out of Las Vegas, described mixed reviews from the National Association of Realtors' Annual Convention, which is ending there today. Over 30,000 Realtors from all over the country had a chance to share their experiences, and these varied from tales of foreclosures and banks "nearly giving away" homes in Ohio, and descriptions of a slow but steady market in West Virginia, to talk of appreciating values in San Antonio, Texas, where employment has been strong.
The second article, headed "Housing Slump Likened to the Great Depression," quoted a Wells Fargo Bank executive who described the home price decline in California's Central Valley and the Midwest's "auto belt" as like the financial situation in the 1930's.
The third article was much like the "Oasis" theory I invented in earlier posts....only the writer describes these areas as "hot spots. She talks about an increase in housing prices in Santa Clara and San Mateo Counties of over 7 percent in October, despite decreased sales. One of the main reasons for this is a new willingness of the part of lenders to offer Jumbo loans, so that more buyers are out making offers on our Sunnyvale and Cupertino properties. The other is a strong local job market, which continues to bring new people to the Bay Area.

How Long Will My Appliances Last?

There was a brief article about appliance life expectancies in the November AARP Bulletin...and yes, I am that old! I was pleased to see that my appliances had exceeded the averages in almost every instance. Gas ranges typically last about 15 years, dishwashers and microwaves, 9 years, and trash compactors, a skimpy 6. I found it interesting that they gave 100 years as the potential life span for well maintained marble, slate and granite flooring, and only 8 to 10 years for carpets. The National Association of Home Builders maintains a great site, and if you want to check out how long an older component in your house is expected to last, go to "Publications" and "NAHB Reports." Maybe you can justify a new freezer from Santa!

The End of Sunnyvale Town and Country Village

Most of the stores are boarded up, and tenants are vacating. The developer, Sand Hill Properties, is hoping for a demolition permit for four of the six buildings before Thanksgiving. This will see the end of another era for Sunnyvale. First the Olson cherry orchard gave way to a shopping center and housing, now Town and Country will be developed into as many as 450 high density residential units and 52,500 square feet of retail space, if the city's 2003 plan for the six acre site is carried out. For a long time, historic Murphy Avenue and Town and Country Village were the only outdoor places for residents to shop and eat downtown.
Let's hope that Sand Hill Properties, which is also the developer of the new town center that replaces the mall, will make this an attractive and functional addition to the downtown.

Why on Earth Do I Keep This?

The Sunnyvale Chamber of Commerce just moved to a new and larger headquarters on 260 South Sunnyvale Avenue. They had been at the old location on West Olive since 1946, and Suzi Blackman, their CEO, wrote an interesting article on decluttering prior to a move. Many of my clients find that moving to a new home (especially a smaller one) is the ideal time to clear out years of accumulated "stuff."
We don't really need to move in order to clear all those excess papers and collections from our homes and offices. The end of the year is the perfect time.
Some of Suzi's hints:
Be brutal. When it comes to paperwork, if you haven't used it in the past year, toss it. Most of the material is obsolete anyway. This includes magazines and articles that you "always meant to read."
I checked Bankrate.com, and this is their timeline for keeping paperwork:
Taxes:7 years.( The IRS has 3 years to audit, but 6 years to challenge possible under reported income).
IRA contributions: Permanently. Brokerage Certificates: Until you sell.
Retirement Plan Statements: Annual Summaries, permanently.
Records of Home Improvements, Records regarding Real Estate: Permanently
Many items no longer useful to you are someone else's treasure. Recycle or donate.
If you need help, I've found that Tom Anderson, AKA Clutterboy is a wonderful resource.

November Real Estate Market Flash

As 2007 winds down, I am frequently asked if this is the time to buy or if the New Year will present “added” opportunity. Unfortunately, my crystal ball is broken, so I can only look at what is in front of us now – and that is opportunity. With strong inventory in many areas and interest rates that remain at near historic lows, there is a unique opportunity for first-time and move-up home buyers. We may not know what tomorrow holds, but we can look into the past and see that California homes have historically been a strong investment; there may be no better way to start off the New Year than in a new home.
Santa Clara County’s median is very different from most of the the others in the State. After staying securely in the 600s for years and breaking through $700,000 only in April, it settled in September to $700,000 again. Sales dropped by about a third between June and July, but were relatively flat for the rest of the summer.
As for interest rates, The Fed has cut both the discount rate and the Fed funds rate; prime is 50 points lower than it was a year ago. Some analysts are betting against another round of rate cuts in December. Rates are averaging about 6.6% for 30-year fixed, 6.3% for 15-year fixed and 5/1 ARM, and securely over 7% -- perhaps as much as 7.25% -- for a jumbo.
Overall Assessment: Today’s buyers, especially those who can secure jumbo loans, are highly qualified. Well-qualified prospects and abundant selection are a good match. Buying a home in California has been a historically strong investment and in a new home, buyers will be that much better able to prepare for and ride out whatever the economy has in store.
One of life’s biggest comforts is having the right roof over your head.

Sagging Structures

This morning, I toured a couple of older, Craftsman-type houses in San Jose with good clients of mine. It was an adventure to look at these nearly 100 year old homes. Most of the real estate that I see is tract housing and townhomes in Sunnyvale and Cupertino, all of them less than 50 years old, and many that are newer.
It is always interesting to see if the owners have kept the style of the original design, and if the changes suit the house. All too often, the "improvements" are just the opposite...like beautiful wood cabinetry that has been painted over, and set-in lighting in the ceilings that would be better suited to a new condo.
Linda and I were looking at the hardwood floors in the second house we saw, and she mentioned that a marble rolled across the floor would head downward, because the floor slanted so much. We agreed that most of these older houses were sagging somewhat, and I noted that it was also true of people. The more we got into the comparison, the funnier it was. We finally agreed that the most important things are that the house still be structurally sound, (fairly fit, in people) not have too many cosmetic changes, (plastic surgery) and have a flexible floor plan (open to many interests and hobbies). Both older houses and people can be full of potential.

Zirana is Tops!

Last night, I had more time to explore Zirana, and I was delighted to find that the site is not limited to Cupertino. It has full information and news for almost all Bay area communities: Campbell, Cupertino, Fremont, Hayward, Los Altos, Los Gatos, Menlo Park, Milpitas, Mountain View, Newark, Palo Alto, Redwood City, Santa Clara, San Mateo, Santa Rosa, Saratoga, Sunnyvale and Union City.
The coverage is extensive and everything from local happenings to merchant reviews are included in an easy to use format.
Of course, I had to check out Sunnyvale first. There was coverage on the recent elections, upcoming activities like the Seniors' Dance on Wednesday, and even an article on the top five pizza places (with coupons!) There are very few paid ads, and there is an opportunity for people to advertise items for sale, like cars and electronics. I particularly liked the community calendar that they include for each city, where you can check out upcoming activities at a glance.

A Cupertino Resource

Thanks to Sarah, one of my wonderful readers, I have discovered a terrific site, full of useful information about schools, community, and activities in the city.
She had written a comment on one of my posts, and took the time to tell me about a Thanksgiving contest on Zirana, an online community for suburban towns. The contest, "Thank You, Mom," in the spirit of Thanksgiving, is a chance for any child to thank his or her mother by submitting a drawing, poem, or other artwork and possibly win a $100 award to buy something special for that extra-special mother.
This site is really worth visiting. I've added it to my "favorites" file, and plan on using it often for information on local news and current events, school activities and places to go.

West Nile Virus and the Home Sale Slowdown

The lead article in today's Mercury News talked about an unexpected result of the subprime mortgage crisis: a worse West Nile Virus season. There were four identified human cases in Santa Clara County this season.
I had my first encounter with the County Vector Control last month. My listing in the Old Orchard area of Sunnyvale had a fountain in the front patio that was turned off and had standing water. Because my sign was out front, the vector control officer called me to ask that the water be drained or the fountain be plugged in.
I was impressed by their efficiency, and notified the owners, who complied by making sure that the fountain stayed dry for the rest of the sale period. I also mentioned this precaution to the new owners when I met them for the final walk through.
In Santa Clara County, more than 200 pools, green or black with algae, were identified by aerial surveillance...at least three times as many as in 2006. Many of these are foreclosed properties, where the owners just walk away. The county notified as many real estate agents and owners as possible, and also quickly treated the pools to kill any breeding mosquitoes.

Throwing Out the Baby with the Bathwater

There have certainly been many abuses in the mortgage industry, and those are the part of the reason we are in this subprime mess today, but Washington may be using too heavy a hand in their "solution".
The U.S. House of Representatives is considering a bill that will fundamentally change the way mortgage brokers are paid. The bill, H.R. 3915, is known as the Mortgage Reform and Anti-Predatory Lending Act of 2007.
It has some flaws, but many of its provisions are worthwhile.
A mortgage broker is often confused with a mortgage banker. A broker does not actually lend money. A broker acts as a liaison between a consumer who needs financing for a mortgage loan and a lender who has money available to finance the purchase. The broker brings the lender and borrower together.
Mortgage brokers receive a loan fee from either the borrower or the lender, or both. Borrowers may pay brokers an origination fee based on a percentage of the loan amount. In some cases, the broker receives a fee from the lender. Fees paid by the lender to the broker are known as yield spread premiums (YSPs). It is this fee that brokers are concerned about losing. While some analysts agree that YSPs provide a useful avenue to cash-strapped borrowers, others say that many borrowers frequently do not understand that they are paying the YSP in the form of a higher interest rate, and that the exact amount of the fee is not known until the borrower is already committed to the transaction.
The bill will prohibit the "steering" of borrowers to loans that are not in the consumers' best interest and call for licensing and registration of mortgage originators, including brokers and bank loan officers. In addition, the new legislation will set a minimum standard for all mortgages, which states that borrowers must have a reasonable ability to repay.
While brokers and bankers have been accused of causing the current mortgage meltdown by granting loans to unqualified borrowers, the intense pressure to provide these mortgages to Wall Street in the form of mortgage-backed securities also has contributed to the problem.
The bill also expands and enhances consumer protections for "high-cost loans" under the Home Ownership and Equity Protection Act and includes important protections for renters of foreclosed homes. It would require criminal background checks, testing to demonstrate basic knowledge of loan products, and continuing education and professional ethics training for all who originate mortgage loans.
George Hanzimanolis, the president of the Mortgage Brokers Association says, "The mortgage industry has changed dramatically in recent years, but the laws and regulations designed to protect consumers have lagged behind. These reforms will help modernize the regulatory system and drive bad actors from our industry."

What Do the Recent Rate Cuts Mean to Me?

Good question. Generally, experts think The Federal Reserve's first rate cuts in four years are good news for mortgages and the economy, and that makes them good news for you and me, too. The Federal Reserve's decision to cut a key interest rate will bring lower mortgage interest rates in the coming months.
Economists say the rate cuts will help more people qualify for mortgages, and it will help homeowners who want to refinance their mortgages.
Home buyers and mortgage holders were the targeted beneficiaries of the interest rate reduction.
Rate cuts take time to work their way through the economy, but consumers may immediately see some benefits in reduced interest on credit cards and home equity loans. Upon hearing the news, big lenders such as Wachovia, Wells Fargo, and
KeyCorp immediately cut their prime rate for their best customers.
About half of all adjustable rate mortgages are tied to the short-term Treasuries on which interest rates were reduced. That means that adjustable rate mortgage payments will not rise as much when the next adjustment is made.
Maybe we won't see quite as many foreclosures as were expected, when May of '08 rolls around.

Catching Up on My Reading

I often put aside articles from old issues of Realtor Magazine that I want to read when I have the time. Today, I caught one that was of special interest, since I have been covering for a friend in the office after her recent surgery.
The article described a situation where a listing agent caught the flu, and asked an associate to handle the open house that was scheduled for that weekend. Unfortunately, she didn't tell the other agent that there had been a price reduction and that the buyers would have access to a communal swimming pool. On top of that, the agent found black and white flyers on the listing agent's desk, not realizing that there were color flyers nearby.
An African-American couple came through the open house, were not told about the price reduction or the pool access, and were handed a black and white flyer.
What happens when the listing agent recovers, holds open house the next weekend, and tells a white tester about the pool availability and the price reduction as she hands him a colored flyer?
Neither agent meant to discriminate, but we must ensure that everybody gets the same representation, regardless of the circumstances.

Times are Changing

Our clocks were turned back last night, but that's not the only way that times are changing.
According to the California Association of Realtors, in 1989 the median price of a single-family home in Santa Clara County was $246,847. Today, just 18 years later, that same single family home is selling for $860,000 - a 248% increase.
Certainly in recent months we have seen a shift from a seller's market to a buyer's market but that switch was necessary to continue a healthy flow of exchange amongst
buyers and sellers. The bottom line is that our economy couldn't maintain the
double digit increases we saw in home prices in 2003 and 2004 without seeing a shift. If we continued to see an increase of that size, we would nearly eliminate the
first-time home buyers, drastically impacting our economy. Shifts in our market are what keep our economy running smoothly.
Is Now the Time to Buy? Around San Jose it could be. Mortgage rates remain low (by historical standards), prices have stabilized and there is a large selection of homes to choose from.
Certainly it makes a more exciting news story for journalists to dwell on the negative, but for smart consumers it is definitely more economically advantageous to seize opportunities as they present themselves. And this market may offer some tremendous opportunities.

Old Realtors...They Just Fade Away

The median age for both brokers and salespeople in our industry is 51. This doesn't really surprise me, as I look around at the weekly meetings and conventions I attend. Often age means experience, and this is a benefit to our clients, but it is especially important for agents to keep up to date with the changes in the industry, and especially with its increased reliance on computers.
I know a few agents in my age group who fought against the computer, and still miss the days when we had a daily hand delivery of printed sheets with the new listings, and a weekly book published with black and white photos of properties for sale. To get a true update, we had to drive to the local Board of Realtors office, and check the handwritten list of that day's new listings.
How different (and exciting!) it is to be able to go online and see a virtual tour and/or multiple color pictures of every property for sale.
Recently, a Nebraska court found that it couldn't’t reject a discrimination claim
filed by a real estate agent against her former employer, a real estate and mortgage company. Although the company claimed that the agent was fired for being too “traditional” for its unique business model and failing to close loans on her listings, the agent alleged that her age was the determinative factor, citing evidence which swayed the court.
The agent who represented us in the sale of my mother-in-law's Florida condo was 83, legally blind, and wheelchair bound. Her son handled the paperwork and the driving, and she still sold every unit in that development!

More News about Sunnyvale Downtown

It has been a while since we've heard anything about the cleanup of the toxic chemicals, the results of decades-old dry cleaning chemicals under part of the New Town Center site.
The San Francisco Bay Regional Quality Control Board (Water Board) has just announced a proposed interim cleanup plan, consisting of soil vapor extraction and treatment for tetrachloroethene (PCE) contamination there.
This includes the installation and operation of a series of soil vapor extraction wells, vapor conveyance piping and two granular activated carbon treatment units that will extract and treat PCE- effected soil vapor from and around each of the two impacted areas at the site.
There will be a public outreach meeting about the interim cleanup plan held on November 1st at 7pm in the Sunnyvale Public Library Program Room, and the Valley Water Board also invites written comments until November 19th.