Meeting the Stager

This afternoon, my clients and I met with the stager to arrange decor of a house we're marketing. I knew that the old "Bone" and "Swiss Coffee" combination that Realtors had been using were not enough to compete in this market, where buyers expect a house to stand out from the rest.
In terms of dollars, painting is a considerably low investment that a home seller can make and receive a higher rate of return at closing.
Home Staging is all about presenting the house for sale at its best. When potential buyers come through a house for sale, they are attracted to a property for many reasons. The mood that a house presents is very important. The interior wall color or colors are extremely significant in helping to set this mood. Wall color can turn a House for Sale into the Home They Love.
Home Stagers, through wall color consultations, assist in making a house as warm and inviting as possible. Whites, although very neutral, tend to present a colder setting, and blues, although recommended for relaxation by some, can present a cooler setting in rooms. More dramatic colors of red, yellow, darker greens, and orange are more personalized colors, which are fine for decorating, but not for staging to sell. Wall color should be a non-factor within a room, just helping to set the mood. Medium hues of browns, golds, taupes, and sometimes greens (we chose "Celery" for the hall bathroom) will warm up a rooms setting….making it feel inviting and cozy to potential buyers. Darker hues of any color within rooms can make the room appear to be smaller, but we used an accent color to make a dining area feel like a separate dining room.
Paint can be a great help, if color is chosen wisely.

Scary News for Local Housing

President Obama’s budget proposal was released today this morning. A small section of the sweeping budget plan has the potential to become a major impediment to a recovery in real estate markets across the nation. I just received an email from the National Association of Realtors. NAR is 100% opposed to a provision that modifies the Mortgage Interest Deduction and is prepared to use its formidable array of resources against its enactment.
As currently drafted, the plan changes this deduction by reducing the amount of mortgage detectability on families earning over $250,000. This proposed change in the Mortgage Interest Deduction will result in further erosion of home prices and home values....especially in expensive areas such as ours. If this proposal is enacted it will lead to a new round of price depreciation, and will cause greater distress on the balance sheets of banks as the collateral value of mortgage backed securities declines. A second credit crisis could emerge before the first one is resolved.
NAR is launching a multiphase plan of action to eliminate this provision from the budget plan. In the next 24 hours, it will be expressing our concerns directly to President Obama, to all members of the House of Representatives and the Senate, and placing advertisements in the publications read by Washington, DC decision makers. Additionally, NAR will be forming a coalition with other groups affected by this proposal.

Who Can We Believe?

In the President's speech to Congress and America last night, he promised to move forward with the economy, partly by loosening the purse strings of lenders who are frozen into inaction.
But a column this week by real estate expert Kenneth Harney described the new rules that Freddie Mac and Fannie Mae will impose, starting on April 1. Loan applicants will find that there are new loan fees added, even if they have high credit scores. Home buyers will be dinged with a "delivery fee" of anywhere from 1/4% to 1 1/2%, depending on their down payment and credit scores. Buyers of a condominium will pay a 3/4% loan penalty unless they come up with a 25 percent down payment, and duplex buyers with perfect credit who come up with a 50% down payment will still have to pay a point.
The agencies say that these fees counter higher risks, but as recently as two years ago, FICO scores in the high 600's were enough to qualify buyers for prime financing. Now bare minimum scores of 729-740 are needed to avoid these high fees, and are still not good enough for condo or duplex buyers.
FHA mortgages are fast becoming the only show ion town.

More About the Seniors

The Mercury News featured an article this morning that describes a recent study out of UCLA. Its findings were that 47% of Californians 65 or older are unable to pay for their basic needs. Choices such as "food or medicine?" are being made every day.
Amazingly, the data that they used was from the 2007 census, and doesn't take into account the latest economic crisis. They also use a fifty year old federal measure to determine who is above the poverty line.
More up to date is a September 2008 study from AARP. Most people think that older homeowners would have substantial equity and low interest loans, immune from the current mortgage crisis. But this study reveals that 684,000 Americans age 50 or over are delinquent on their first mortgage, are in foreclosure, or have already lost their homes...28% of all homeowners in this situation.

Conforming Limits Restored

Benefit #4 — $729,750 FHA and Conforming Loan Limits Restored in High Cost Areas.
The $729,750 maximum loan limit had been in force throughout 2008, but was
reduced to $625,500 in 2009. The economic stimulus plan restores the $729,750 maximum. This makes higher cost homes more affordable — especially in the coastal housing markets that tend to have higher than average home values. Our local areas have average prices that fall in the higher range, also, and the high interest on traditional jumbo loans has been pricing out many buyers who might qualify at the new conforming rates.

For The Seniors

Here's one of the stimulus package benefits that should help our senior homeowners particularly. One of the problems with reverse mortgages has been the low amounts that are available in our area, where equity can be quite high.
Benefit #3 — Higher Reverse Mortgage Loan Limits

The loan limits for FHA-insured reverse mortgages have been increased to
$625,500 across the entire country - not just the higher cost areas. The previous limit was $417,000 across the country. This is especially important because the FHA program is virtually the only game in town as private and jumbo reverse mortgage programs have nearly all evaporated.
This coincides with another little-known change in the reverse mortgage
arena: the availability of reverse mortgages on home purchase transactions. This is a fantastic opportunity for senior citizens to buy a new home and live mortgage
payment-free without having to wait for their old home to sell. Seniors could also use this strategy to buy a new home and turn the old property into a rental or otherwise wait for market conditions to improve before trying to sell the old home.

Another Benefit...The Tax Credit for Buyers

Benefit #2 — Expansion of First-time Home Buyer Tax Credit

The tax credit available to first time home buyers was increased from $7,500
to $8,000 for homes purchased between January 1, 2009, and December 1, 2009. Also, the credit no longer needs to be paid back as long as you live in the home without selling it for at least 3 years. The previous version of the credit expired on
July 1, 2009, and required home buyers to pay the funds back over a 15 year time frame.
The income limitations remain the same ($75,000 for single tax payers claiming the full credit and $150,000 for married tax payers), as do most other qualification requirements. Also, the credit remains refundable. This means that first-time home buyers who owe less than $8,000 in taxes for the year are still eligible for the full $8,000 credit when they file their tax returns. In that case, the IRS will write you a check for the difference between $8,000 and your actual tax bill. In fact, the credit can be claimed on your 2008 tax returns that you file by April 15, 2009, even if you buy the home in 2009.
There is one catch, however: if you bought the home in 2008, the credit remains $7,500, and it still needs to be paid back over a 15 year time frame beginning in 201 when you file your 2010 returns.

More Details on the "Package"

Thanks to Carma Van Houten, a local lender, for the info.

Benefit #1 — Expansion of Home Improvement Tax Credit
The tax credit for making energy efficient home improvements is now 30% of
the cost of the improvements up to a maximum of $1,500. This means that if the improvements cost you $4,500, you would receive a tax refund of $1,500 when you file your tax returns. Eligible improvements include energy efficient exterior doors and windows, insulation, heat pumps, furnaces, central air conditioners and water heaters. Generally, your home improvement contractor and/or the manufacturer selling the improvements issues a certification that clarifies whether the improvements meet the necessary standards for energy efficiency. Most modern windows, furnaces, and air conditioners meet these requirements. If you've been holding off on making some of these improvements, now is a great time to get a move on it - especially with all the great deals that are being offered!

The Homeowner Affordability and Stability Plan

Earlier today, President Obama unveiled the Homeowner Affordability and Stability Plan, which will offer assistance to as many as 9 million homeowners, while attempting to prevent the impact of foreclosures on families and communities.
The plan contains three main components, and only applies to primary residences, and the loans can't exceed Freddie Mac/Fannie Mae conforming loan limits.

The first component is directed toward homeowners who still have equity in their homes, but not the 20 percent equity needed to refinance. Under the plan,they will be allowed to refinance, even without 20 percent equity. About 5 million homeowners will be helped by this portion of the program.

The second component, known as the Homeowner Stability Initiative, is designed to assist homeowners who are “underwater” on their mortgages. The $75 billion initiative will bring together lenders, servicers, and the government so that all stakeholders share in the cost of the modification. Primary mortgages would be reduced to monthly payments that do not exceed a 38 percent debt-to-income ratio, with the costs of doing so borne by the lender. The government and lender then would split the costs of further reducing the monthly payments until they were at a 31 percent debt-to income ratio. Homeowners do not have to be delinquent to participate.
Mortgage holders will receive an incentive payment of $1,500, and servicers $500, for modifications made on loans that are current but at risk of imminent default....more details are coming in early March, but clear and consistent guidelines will be in place for any financial institutions that receive government assistance. It is estimated that between 3 and 4 million homeowners will benefit from this component of the plan.

The third component of The Homeowner Affordability and Stability Plan is supporting low mortgage rates by strengthening Fannie Mae and Freddie Mac. The Treasury Dept. plans to increase their Preferred Stock Purchase Agreements with both Fannie Mae and Freddie Mac from its current $100 billion in both of them to $200 billion each. The Treasury Dept. also will continue to purchase Fannie Mae and Freddie Mac mortgage-backed securities in order to help promote stability and liquidity in the marketplace. Additionally, the Treasury Dept. will increase Fannie Mae and Freddie Mac’s portfolios and work with them to support state housing, such as CalHFA. Funding for this will not come from TARP money but from the Housing and Economic Recovery Act.
While some of the details still are being developed, such as the modification guidelines, programs and funding are already allocated for The Homeowner Affordability and Stability Plan and will need little legislative approval for programs under the plan.

I’ll keep you updated as more details and information become available.

First-Time Home Buyer Credit and Other Tax Changes

If you're a first-time home buyer who bought a home after April 8, 2008, and before July 1, 2009, you may qualify for a credit of 10% of the purchase price up to $7,500 on your 2008 tax return. Even if you bought the home in 2009, you can take the credit on your 2008 return.
But here's the rub: The credit is more like a loan and must be repaid over 15 years. The stimulus bill being signed now may eliminate the repayment rule for homes bought in 2009, but what's not clear yet is -- if the new stimulus plan eliminates the repayment rule -- will people who bought a home in 2009 but claimed the credit on their 2008 return be exempt from repaying the credit? (Those who take the credit on homes bought in 2008 will have to repay the credit, under current law.)
If you bought a home in 2009 (before the July 1 deadline), your best bet is to wait until the final bill becomes law to see whether to claim the credit on your 2008 return or to wait and claim it next year.

I just read that homeowners who take the standard deduction, but pay property taxes, can now deduct these in addition to the standard deduction...great for seniors who don't itemize. There are no home energy tax credits in 2008, but watch for them in 2009, as well as increased ones for solar energy on your federal return.

Moving and Taxation

What else to do on a rainy holiday in February than to start on my taxes?
Many of us are getting our records in order in preparation for tax day, April 15, 2009. If you made a move this year, deducting moving expenses may be on your mind. But are all expenses allowable tax deductions? The following info came to me from The Move Advocate.
The IRS allows tax deductions for some of the costs associated with a move to accommodate a job in a new location. There are, however, two tests which must be met in order to qualify for deductions.
Test 1 - Distance Test
To qualify for a deduction, your new principal workplace must meet a 50 mile test. The distance between the old home and old work minus the distance between the old home and the new work must be greater than 50 miles. In other words, if the commute to the old workplace was 3 miles, a commute from the previous home to the new workplace must be at least 53 miles. If the person did not have a job before moving, then the new job must be at least 50 miles from the previous home.
Test 2 - Time Test
A person must work full time in the general area of the new workplace for at least 39weeks during the 12 months right after the move. There are exceptions to the time test and other rules apply for those that are self-employed.
If you are not sure if you meet the requirements to deduct your moving expenses it is best to check with a tax advisor or visit the IRS website, Publication 521, and Form 3903 for more details.
If both tests are passed then some expenses may be deductible:
Costs for packing, crating and movement of your household goods
Up to 30 days of storage and insurance for household goods
Transportation and lodging expenses (not meals) while traveling to new location
According to Forbes, one of the top reasons for IRS tax audits is claiming too much for itemized deductions, including the deduction of moving expenses, so when in doubt, check with your tax advisor!

Happy Valentine's Day

Sometimes we participate in celebrations without understanding their origins.
This information came from Mr Handyman in my mailbox.
In and around 270 AD, young men were desiring to avoid joining the Roman army. At that time, going to war could be a time commitment of 10 to 20 years. Young men were desiring to stay home, marry, and raise families. In the name of securing the Roman empire, the emperor Claudius II outlawed marriage for young men. Valentine was a priest who continued to conduct marriages for young men, an act which was now illegal. For breaking the law in this way, he was arrested, tried, convicted, and executed. The execution is purported to have taken place on February 14th.

It is also purported that while Valentine was awaiting execution, he fell in love with a young women (perhaps the jailers daughter) and left her a love letter signed "From your Valentine", which started the tradition of Valentine gifts.

The date of February 14th also coincides with a pre-Christian celebration known as Lupercalia, which was a fertility celebration that started on the ides of February (the 15th), and often resulted in marriages.

The Stimulus Package from a Realtor's Viewpoint

Here's our take on the Stimulus Bill and Treasury announcements made this week.NAR wanted to do 4 things (with an unspoken but clearly understood mandate to PRESERVE what we already have). Here they are: 1) get loan limits raised for high cost areas, 2) make the $7,500 tax credit NOT a loan, 3) try to find ways to push interest rates down (which are higher than they should be due to systemic risk right now) by 200 basis points, and 4) help provide solutions to the foreclosure/short sale problem.
So here's what we have achieved: 1) the loan limits will be raised to $727,000 in high cost areas, 2) the tax credit will be raised to $8,000 with NO payback [a true credit], 3) interest rates have come down 125-150 basis points, and 4) the bill has over $50 billion in it for foreclosure mitigation, with Geitners Treasury plan signaling that the second half of TARP and TALF will be used to mitigate foreclosures through a government guarantee, drive down interest rates by buying another $200-300 billion of mortgage paper, thereby freeing money for new mortgages, and Fannie has just agreed to lift the cap of 4 investment properties eligible for loans and raise it to 10.
In addition, we preserved what we have - which some tend to forget is always on the table when these negotiations start up again - mortgage interest deductability, real estate tax deductability, and the $250,000/$500,000 cap gains exclusion (an overall package worth more than $100 billion and for some a very attractive funding source for their pet projects).
We tried for a $15,000 credit -- and we would have loved to have gotten that or the Homebuilders $22,000 credit idea as well as their 5 year loss carryback deal, but they were considered too rich for this program. What it did do though is totally take the debate off of whether a tax credit should be reinstated at all (it expired last year) and whether it was a true credit or a repayable loan, and kept the conversation on how much it should be. It's pretty hard to complain when they give you what you ask for and you lose something you never had.
While we study the Treasury specifics on their major role in providing the rest of the housing solution -- there is much more to come and we are working diligently with the Administration to help 'unclog the pipeline' and get capital flowing into housing again.

When a Realtor Turns 80

Today a few of us shared a birthday lunch with an old friend and fellow Realtor. She and I sat side by side for over 25 years, until our Sunnyvale office was closed and transformed into a fabric shop. Although I hope not to be working when I turn 80, nonetheless, she is my role model. She still dances regularly with my club, and serves with me on their board of directors.
They say that keeping active is the key to aging well, and Norma, with her natural beauty, is a perfect example of this. Although she fought the rise of the Internet in our business, she managed to adapt, and now sends emails and new listing printouts to her clients with the best of us. Sometime soon, she plans to move into a nearby retirement community...but retire? Never.

How Did it Happen?

One interesting sideline in yesterday's short sale seminar was an overview of how the real estate market reached this point too start with. No really new information, but a good reminder for us, so that this doesn't happen again.

1. Homes used as piggy banks, with the assumption that values would continue to rise indefinitely.
2. Adjustable rate mortgages.
3. 100% financing.
4. Over construction.
5. The "option" ARM. Who paid $5000 or $6000 a month, when there was a chance to get away with $1500?
6. Stated Income Loans, often called "Liar Loans."
7. Inflated Appraisals.
8. Predatory lending practices, especially to minority buyers.
9. Sellers forced to sell because of personal circumstances...death, illness, divorce, transfer, as well as job loss.

Making Short Sales Work

Who would have guessed three years go that we would have hundreds of local Realtors sitting in an auditorium at the Convention Center, learning how to successfully negotiate short sales?
This morning, Coldwell Banker sponsored a three hour seminar for its agents. It was given by Kathy Mehringer, our Director of Risk Management Training.
In a short sale, the bank or mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the part of the mortgagor. This negotiation is all done through communication with a bank's loss mitigation or workout department. In such instances, the lender has the right to approve or disapprove of a proposed sale.
Extenuating circumstances influence whether or not banks will discount a loan balance. These circumstances are usually related to the current real estate market and the borrower's financial situation.
Often banks will allow a short sale if they believe that it will result in a smaller financial loss than foreclosing. For the home owner, advantages include avoidance of a foreclosure on their credit history and partial control of the monetary deficiency. Lenders have a department (typically called "loss mitigation") that processes potential short sale transactions. Given the unprecedented and overwhelming number of losses that mortgage lenders have suffered from the current foreclosure crisis, they are now more willing to accept short sales than ever before. This is great news for borrowers who are "under-water" or in other words those who owe more on their mortgage than their property is worth and are having trouble selling to avoid foreclosure because of this. They are type of distressed borrower who needs a short sale the most.
What we learned this morning, is that a complete "package", polite persistence, and strong negotiating skills will help our transaction to be one of the few that the lender accepts, and not the many that end up in the shredder.

An Update on Valley Real Estate

Locally, we’re seeing some interesting trends. As we continue to work through our bank owned properties, it is a welcome sight to finally see banks responding to short sale offers. Couple that with the fact that with interest rates so low, buyers—especially first time home buyers and some investors—are finally beginning to feel the need to come off the fence and take action. The hardest hit markets are new construction and the upper end. Both are nearly at a stand still, though, as prices begin to stabilize and we finally weed through the bank owned properties (later this year), we should begin to see a domino effect that ultimately benefits all price ranges and housing types.
Now let’s take a look at this week in real estate:
Our Cupertino De Anza office is reporting lots of activity and very busy open houses—though neither is leading to many closed transactions. We’re hoping now that we are passed the Super Bowl we will see a pick-up in activity. Pricing is key. Homes that are priced aggressively are selling—often with multiple offers. This is a good lesson for sellers to consider as they price their homes competitively for the market.
Overall assessment of the market this week is that buyer interest is up though buyers do remain cautious. It seems that buyers are finally realizing that with today’s low interest rates and generous amount of inventory—including a large number of bank owned properties—they may be in a very strong position and in all likelihood, can afford a lot more home than they could have a year ago, or even six months ago for that matter. But they are being cautious and making smart decisions when they perceive a true value. This is an important lesson for sellers to consider as they prepare their homes for sale. For a home to stand out in today’s competitive environment, you need to price it well and show it well from the beginning in order to gain the most interest.

Two Takes on the Stimulus Package

I can't believe that the client of an associate is waiting to present an offer on a property he wants, because he believes that the new package will depress prices further. Huh?
From a real estate perspective one of the biggest potential benefits of this Economic Stimulus Plan is special Amendment #353 to the Plan, a provision for the Federal Government to buy-down mortgage rates to 4.5% or less for a 30-year fixed rate loan for the purchase of a primary residence. Without question, a 4.5% or lower, 30-year fixed rate mortgage would help stimulate housing sales and would also open the door to hundreds of thousands of new potential buyers by greatly improving housing affordability.
While the Economic Stimulus Package makes its way through Washington, real estate sales continue to show new signs of life. Just this week, NAR released its pending home sales report noting that pending home sales rose 6.3 percent nationally to 87.7 from an upwardly revised reading of 82.5 in November and is 2.1 percent higher than December 2007 when it was 85.9.
An article on Reuters.com points out that housing markets across the country may be nearing bottom and we should begin to see signs of new life by the 4th quarter of this year. Among the highlights of the article:
• "More than three years since the market began correcting, inventories are flattening, prices are coming back down to earth, and sales are approaching stability,"
• “The outlook, however, assumes stronger action by U.S. policymakers and says that even with further government intervention, the recession will keep the housing market from fully recovering until the end of this year.”
• “With this help, sales are probably at bottom, stabilized by foreclosure sales, while construction will hit bottom in the first half of this year, although the pace of housing starts will remain very depressed until 2011.”
The coming week will likely be an interesting one in Washington, D.C. as lawmakers make the final decisions on the Economic Stimulus Package. It will be exciting to see the details unfold and the plan take shape as lawmakers work to quickly restore our ailing economy....we hope.

Death and Taxes

Neither can be avoided, but it may be possible that your property taxes can be reduced this year. As the Mercury mentioned this morning, the County Assessor's office will be reviewing nearly half the properties in Santa Clara County. Most of these are homes purchased after 2000, because these had their assessed value readjusted upon transfer. When prices fell, the assessed valuation may have ended up lower than the current value. Homes purchased prior to 2000, are probably still benefiting from their low Prop. 13 assessments.

A Warning:
I received an official-looking letter, generated from Southern California, implying that my taxes should be reassessed, and promising to handle this for me. I realized that this had to be a scam, because my valuation was currently much lower than local sales prices, thanks to Prop 13, and the fact that I have owned the place for twenty years. I also noticed that there was a high fee for this service, and I was aware that county residents are able to request a reevaluation for free, once the cards arrive from the county in late June. I showed the letter to Larry Stone yesterday, and he agreed that these "Bucket Shops" are scams.

Updates From Assessor, Larry Stone

The Santa Clara County Assessor spoke to our Realtors' group this morning. As expected, his outlook was less than positive. Loss in tax revenue will most likely bring loss in services, and the county is running in a "net negative" for the 5th time. (The first three times were during the Great Depression, and the fourth was right after the passage of Prop 13.) This year, the Assessor's office has automatically reduced the assessed value of 42,000 properties, with an average reduction of $75,000. This accounts for $5.5 billion off the assessment roll. Most reductions were of single family homes,but the 35 commercial properties that were reassessed lost an average of $2.2 million each in assessed valuation.
He said that they base these home reassessments on school district, since it is impossible to formally appraise each house. They also look at the history of transactions in an area for the last several years. High-end neighborhoods will not show losses compared to the "blood bath" areas such as Gilroy, Morgan Hill or East San Jose.
Cards from the Assessor's office should arrive in June this year, and then we will have several months to apply for a reassessment. Keep in mind, though, that the assessed value is what your taxes are based on, so even if a home has lost $200,000 in value...from $800,000 to $600,000, for instance...if your assessed value is $350,000, a reassessment won't help you.

I Do Love Being Right

Yesterday's post brought another question:
"Do you know much the Sunnyvale 94087 area values have declined? especially in Ortega Park, Cherry Chase, Birdland neighborhoods?"
My answer was:
"Fortunately, these neighborhoods have not been impacted as much the 94086 areas....fewer subprime loans and better schools. Three to five percent loss in value, in most cases."
Today's business section of The Mercury News brought the headline: "All Dried Up?", telling us that million dollar plus home sales in the state fell by 43% in 2008....the lowest level since 2003, and that Santa Clara County's drop was the second highest. Was I wrong? Turns out that the drop in valuein the million plus price range was down only 3.3% from 2007, right in the 3-5% range I had estimated

Two Opinions from One Posting

My recent post: "If Housing is the Key to End Recession...Why Aren't They Doing More?" brought a couple of interesting and diverse comments.

"Housing is the key because it hold our banks balance sheets out to dry. Bad government policy for banks, along with irresponsible bankers have put us here. We need to shore up property values to stop the bleeding. This will regain confidence and start the economy up again."

and...

"The issue isn’t getting buyers qualified or interest rates, the issue is price. Housing has been in a bubble since at least the first part of this decade. Until prices return to that level we won’t be out of this. All of the government activities surrounding stopping foreclosures delay the price declines and prolong the crisis."

We mustn't forget that home prices are not artificially created, but are a result of supply and demand. Value involves a willing buyer and a willing seller, and the auction mentality of earlier homebuyers disappeared with much of the value in buyers' portfolios and their job stability.
Prices are moving down. The Mercury News reported this morning that one in five homes in the San Jose Metropolitan area (including all of Santa Clara County) are "underwater," with loans higher than the current value, falling 17.2% in the last three months of 2008 alone. I'll be watching the final version of the stimulis package, but it looks as though it will include a credit for first time homebuyers and other incentives.

Help Shape Sunnyvale Housing Policy

How should Sunnyvale plan for its housing needs? Sunnyvale residents will have an opportunity to provide their input at two community meetings on the issue.
The meetings will be held on Thursday, February 5 at the Sunnyvale Community Center's Neighborhood Room, 550 N. Remington Drive. The first will be held from 10 a.m. to noon, while the second meeting will take place from 6 to 8 p.m.
The Housing and Community Revitalization Sub-Element of Sunnyvale's General Plan sets forth the city's housing goals and policies for 2009-2014. The meetings will address, among other vital questions: What are Sunnyvale's most important housing needs? What are the greatest strengths of Sunnyvale's housing and neighborhoods? What options should the city pursue to address its housing needs for the next eight years? For further information, contact Rachel DeBord, 730-7456.

One Down, One to Go

On Wednesday, the House of Representatives passed H.R. 1, the American Recovery and Reinvestment Act of 2009, by a 244 to 188 party line vote. In this version, Congress included two points from the REALTOR® Four Point Plan.
The bill contains a number of issues critical to the industry, including the extension until the end of 2009, of last year's Fannie Mae, Freddie Mac and FHA
higher loan limits. The proposed legislation also will eliminate an existing payback requirement on the first-time homebuyer tax credit (of up to $7,500) for qualified buyers who purchase a home between December 31, 2008 and July 1 of this year.
Congress elected not to include numerous housing provisions beyond those previously mentioned. Instead, Congress will address housing issues in other legislation next week when the Financial Services Committee meets.
The bill now must go to the U.S. Senate for approval and is expected to be voted on in early February. You can expect many changes before we see a final bill sent to the President.