Friday, the Marin IJ featured a really nice piece on how Marin home sales are up but still lower than 2 years ago. So good news, bad news depending on your outlook. If you are a first time home buyer it is good news as long as you act quickly, because as the article points out home sale prices are slowly increasing. Bad news is the average home sale price in Marin is $821,000 compared to the 2007 sale price of over $1 million. But wait even that is good news right? Let's think about this for a second. The low prices we saw last year coupled with the slow sales cycle is really turning now, and for this year's outlook Marin realtors are optimistic on increasing home values. But just not as optimistic that we will get to where we were 3 years ago. Take a look at the full article for details and as always if you want to know how your home stacks up against the competition and are considering getting it on the market give me a call at 415-246-0991, or check out http://www.valuemymarinhome.com/

Great news as reported today in the Marin Independent Journal that home sale prices are up. Take a look at the complete article here:

http://www.marinij.com/marinnews/ci_13824760

Modern Eichler architectural marvel located in coveted Upper Lucas Valley on a large corner lot features 4 bedrooms and 2 baths, contemporary kitchen with maple cabinets and granite counter tops, tile floors,  living room/dining room with walls of glass and fireplace overlooks solar heated pool and spa, bonus room with fireplace and 2 car garage with workroom. Located in the award winning Dixie School district with access to community pool, tennis, horse riding, open space and hiking trails.

To schedule a showing or for more information call 415-246-0991 or send an email to marc@bradleyrealestate.com

Here's a snapshot of June home sales for Marin County.

According to the National Association of Realtors® in a press release issued on July 23, existing-home sales rose for the third consecutive month with inventory easing and home prices declining less sharply in June,

Great news for the housing market and the NAR says, "Existing-home sales – including single-family, townhomes, condominiums and co-ops – increased 3.6 percent to a seasonally adjusted annual rate¹ of 4.89 million units in June from a downwardly revised pace of 4.72 million in May, but are 0.2 percent lower than the 4.90 million-unit level in June 2008.

Lawrence Yun, NAR chief economist, is hopeful about the gain. “The increase in existing-home sales occurred in all major regions of the country,” he said. “We expect a gradual uptrend in sales to continue due to tax credit incentives and historically high affordability conditions. Despite the rise in closed transactions, many Realtors® are reporting lost sales as a result of new appraisal standards that went into effect May 1 of this year.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 5.42 percent in June from 4.86 percent in May; the rate was 6.32 percent in June 2008. Mortgage interest rates have trended lower in recent weeks.

Total housing inventory at the end of June fell 0.7 percent to 3.82 million existing homes available for sale, which represents a 9.4-month supply² at the current sales pace, down from a 9.8-month supply in May. Raw inventory totals are 14.9 percent below a year ago.

“This is another hopeful sign – if we can keep the volume of sales above the level of new inventory, prices could stabilize in many areas around the end of the year,” Yun said."

As the historic housing plunge rumbles on, Uncle Sam is offering a fresh incentive to get first-time home buyers off the sidelines. U.S. Housing and Urban Development Secretary Shaun Donovan on Friday unveiled a policy change that would provide home buyers with quicker access to a recently enacted first-time home buyer tax credit. Buyers would be free to put the funds toward closing costs and a portion of their down payment. The federal government hopes that the measure will stimulate housing demand, something desperately needed to help mop up the glut of unsold inventory.

Here are five things you need to know about the policy change:

1. Less waiting: President Barack Obama's $787 billion economic stimulus plan—which was signed into law in mid-February—included a tax credit worth up to $8,000 for qualified first-time home buyers. These buyers, however, couldn't get their hands on the cash until after tax season. The new HUD initiative would enable these borrowers to obtain short-term loans allowing them to tap the tax credit before going to closing. "Families will now be able to apply their anticipated tax credit toward their home purchase right away," Donovan said in a news release. "What we're doing today will not only help these families to purchase their first home but will present an enormous benefit for communities struggling to deal with an oversupply of housing."

2. Initial 3.5 percent: The measure, however, comes with several key limitations. First, it only applies to Federal Housing Administration mortgages. More importantly, the short-term loans can't be used to pay for the minimum 3.5 percent down payment that FHA loans require. Instead, the loan can be used for closing costs and to finance the portion of the down payment that exceeds the 3.5 percent threshold. The administration opted to have borrowers come up with the initial 3.5 percent themselves to ensure that buyers have "some skin in the game," which may reduce the likelihood of default, says Howard Glaser, a mortgage industry consultant and a former HUD official. In so doing, federal officials had to strike a delicate balance. "On the one hand, you want to make sure that homes are affordable to first time home buyers, but you don't want to set the bar so low that people who can't afford homes are buying homes," Glaser says.

3. Closing costs: Despite these limitations, the benefits of the program should not be overlooked, says Guy Cecala, publisher of the trade publication Inside Mortgage Finance. "The down payment is probably the biggest chunk of change you have got to pay [when purchasing a home], but it is not the only thing," Cecala says. "Even with a typical FHA loan, there are probably $3,000 to $4,000 in closing costs, title insurance , and [additional fees]." By chipping in toward such costs, the program "could just grease the wheels for a couple more people to get into FHA," says Keith Gumbinger of HSH.com. At the same time, borrowers who use the short-term loan to increase the size of their down payment could obtain a lower mortgage rate.

 

4. Impact? Cecala doesn't believe the new measure is a game changer for the battered real estate market. "I think it will be helpful to a first-time home buyer," he says. "Is it going to generate a lot more housing activity? No." Cecala argues that would-be buyers remain on the fence largely out of a concern that a home will lose value after the purchase. Such concerns will continue with or without the policy change.

Glaser, however, is more optimistic. "This is the missing piece," he says. "Home prices are coming down significantly in some markets, interest rates at historic lows, and now, by addressing cash on the table at closing, I think that borrowers who wouldn't have otherwise been in the market are going to feel more confident about investing in a home."

5. State efforts: The details of the HUD initiative come after several states have enacted similar programs. Missouri, for example, has had a program in place since January that enables home buyers to put the tax credit towards closing costs or their down payment.

Whether you are a first time home buyer or seasoned real estate expert I wanted to put together some tips for you when you get out there and purchase your next home because let's face it now is a great time to buy, interest rates are lower than in previous years and home prices are lower than they have been in 10 years. So grab some coffee, tea or your preferred beverage of choice and take a look at some things to consider when buying your next home.

 10 Mistakes buyers make when buying a home

1. Making on offer on a home without being pre qualified.                    Take some time and meet with your lender to get pre qualified. This will save you time and money because at the end of the day when you find the perfect home and you want to make an offer you will have a clear idea of just how low or high you can negotitate to the best price.

2. Not having a home inspection.                                                                          A home inspection is a great way to find out before you finalize your home purchase to find out what kind of repairs or maintenance you will have to spend to maintain your home. Failing to get an inspection will cost you more money than the initial home inspection fee.

3. Limiting your search to open house ads or the Internet.                   Many homes that are listed online or in the newspaper have already been sold. Contact a Realtor so you can get info on homes before they hit the market or are advertised. I provide a complete list of homes that are not on the market or are bank owned/REOs and you can call me to get this list anytime by sending me an email or by calling my 24 information line at 800-627-0994 Extension 1400.

 4. Choosing a real estate agent who is not committed to forming a strong business relationship with you.                                                             It is crucial you find a Realtor who is committed to your needs before, during and after the sale. My business is based on working by referral and as such I often am working with my clients friends, family, co-workers or church members and I pride myself on never being too busy for your referrals.

5. Thinking there is only one perfect house out there.                         When house hunting it is especially important in this market with short sales and foreclosures to not lose sight of other houses on the market. Houses come and go on the market every day and you should consider and compare as many houses as possible so that you can find the right house. I provide my clients with a market analysis so they can easily compare square footage, features and prices in the marketplace so that they can make an informed decision when buying a home.

6. Not considering long term needs.                                                    Keep in mind that when buying a home you will need to live in it for a number of years and if you will be expecting a baby, downsizing, or making life changes your home will need to fit your life changes.

7. Not examining insurance issues.                                                       Be sure to consult an insurance advisor to determine your homes insurance needs. Based on your area you may need specific coverage and policies and an insurance adviser can answer these questions and help you determine the best coverage for your needs.

8. Not buying a home protection plan.                                                    If you are looking to save money by not buying a home protection plan reconsider because a home protection plan is really a mini insurance policy that lasts for up to one year form the close of escrow. During your first year of home ownership it is always great to have some security in knowing that you will be covered for minor repairs. I advise my clients to purchase a policy before closing escrow. For more details on home warranty coverages and plans go to www.ahswarranty.com/homeowners/ourproducts/ourproducts.html

9. Not knowing total costs involved.                                                     To help my clients prepare for closing and before submitting an offer I give them an estimated closing costs sheet that goes over in detail the expenses required for the purchase of the home so that at the closing table there are no last minute surprises. This also helps buyers know exactly how much home they will be able to afford and is a significant tool for negotiating price when making an offer to purchase a home.

10. Not following through on due diligence.                                        Take some time before writing an offer or beginning the process of buying a home to make a list of concerns, things that are important to you, familiarize yourself with area schools, environmental issues, crime rates and any other influences that may affect your happiness over time in your home.

If you are ready to make a home purchase please take some time to consider the points above and when you are ready contact me. 

More and more buyers I am working with want to know the benefits and procedures for applying for and qualifying for an FHA loan and since this topic is important I wanted to post some more information they could refer back to for help.

Obtaining an FHA loan is a great opportunity for some borrowers but what are the requirements and how can you go about applying?

The homes that qualify for FHA loans are one to four unit housing, condominiums as long they are your primary residence, new or existing homes, manufactured or mobile homes and homes needing rehabilitation. For homes needing rehabilitation the home has to be located in an urban, older or declining area, and you can use $5,000+ for rehab costs including the mortgage.

The down payment requirement for FHA loans is 3.5 percent of the home purchase.

FHA loans are also available for special targeted buyers including public servants such as police and firemen, homeowners over 62 years old, victims of disasters and people living on tribal reservations or restricted lands.

FHA loans are adjustable rate mortgage loans with a maximum rate increase of 1 percent over the life of the loan. For more information on FHA loans and how to apply check the FHA home page online at www.fha.gov or by calling 1-800-CALLFHA (225-5342).