read Chiese version...

Senior Citizen's Replacement Dwelling Benefit Propositions 60 and 90 1

Inmost cases, these constitutional tax initiatives allow senior citizensto transfer the trended base value from their current home to areplacement property if certain requirements are met. This may resultin substantial tax savings.

Who Qualifies?

Ifyou or your spouse who resides with you is age 55 or older, you may buyor construct a new home of equal or lesser value than your existinghome and transfer the trended base value to your new property.

Thisis a one-time only benefit. You must buy or complete construction ofyour replacement home within two years of the sale of the originalproperty. Both the original home and the new home must be yourprincipal place of residence. A claim must befiled within three years of purchasing or completing new constructionof the replacement property. If a claim is filed after the three-yearperiod, relief will be granted beginning with the calendar year inwhich the claim was filed.

Once you have filed and received this tax relief, neither you nor your spouse who resides with you can ever file again.

Eligibility Requirements:

The replacement property must be your principal residence and must be eligible for the Homeowners? Exemption or Disabled Veterans' Exemption.

Thereplacement property must be of equal or lesser ?current market value?than the original property. The "equal or lesser" test is applied tothe entire replacement residence, even if the owner of the originalproperty acquires only a partial interest in the replacement residence.Owners of two qualifying original residences may not combine the valuesof those properties in order to qualify for a Proposition 60 base-yeartransfer to a replacement residence of greater value than the morevaluable of the two original residences.

The replacement property must be purchased or built within two years (before or after) of the sale of the original property.

Your original property must have been eligible for the Homeowners? or Disabled Veterans? Exemption.

You, or a spouse residing with you, must have been at least 55 years of age when the original property was sold.

Frequently Asked Questions

Q. What is the difference between Proposition 60 and Proposition 90?

A. Proposition 60 relates to transfers within the same county (intra-county). Proposition 90 relates to transfers of base value from one county to another county in California (inter-county).

Q. If I qualify for Proposition 60/90 benefits, do I still need to file for a Homeowners? Exemption on the replacement property?

A. Yes. Homeowners? Exemptions are not granted automatically.

Q. What is the Proposition 60/90 filing deadline?

A. Aclaim must be filed within three years of purchasing or completing newconstruction of the replacement property. If a claim is filed after thethree-year period, relief will be granted beginning with the calendaryear in which the claim was filed.

Q. My original home is located outside Los Angeles County, but my replacement home is in Los Angeles County. Do I qualify for relief?

A. Yes.

Q. I plan to relocate from Los Angeles County to another county. Do I qualify for relief?

A. You may qualify for relief. As of November 5, 2004, the following counties in California have an ordinance enabling Proposition 90:

Alameda   Orange   San Mateo   Ventura   Los Angeles   San Diego   Santa Clara

Sincethe counties indicated above are subject to change, we recommendcontacting the county to which you wish to move to verify Proposition90 eligibility.

Q. Do all replacement homes qualify?

A.If you meet all other eligibility requirements, relief is granted for asingle family residence, condominium, unit in planned development,cooperative housing, community apartment, mobile home subject to localreal property tax, and living unit within a larger structure consistingof both residential and non-residential accommodations.

Q. If I make an improvement to my replacement home within two years of purchase, can I get additional tax relief for the new construction?

A.Yes, as long as the total amount of your purchase and the newconstruction does not exceed the market value of the original propertyat the time of the sale.

Q. What does ?equal or lesser value? of a replacement property mean?

A. The meaning of ?equal or lesser value? depends on when you purchase the replacement property. In general, ?equal or lesser? value means:

100% or less of the market value of the original property if a replacement property was purchased or newly constructed before the sale of the original property, or

105% or less of the market value of the original property if a replacement property was purchased or newly constructed within the first year after the sale of the original property, or

110% or less of the market value of the original property if a replacement property was purchased or newly constructed within the second year after the sale of the original property. Whenmaking the ?equal or lesser value? test, it is important to understandthat the market value of a property is not necessarily the same as thesale or purchase price. TheAssessor will determine the market value of each property. In some newdevelopments, the indicated sale price does not include upgrades paidfor outside of escrow. The Assessor must consider the value of theseupgrades when determining the market value of the property.

Ifthe market value of your replacement dwelling exceeds the ?equal orlesser value? test, no relief is available. It is ?all or nothing? withno partial benefits granted.

Q. Can I give my original home to my son or daughter and still get Proposition 60/90 benefits when I purchase a replacement property?

A. No. An original property must be sold and subject to reappraisal at full market value.

Q. If an original property has multiple owners, can Proposition 60/90 tax relief be split?

A. No. The owners must determine between themselves which one will get the benefit. Only one original owner can claim Proposition 60/90 tax relief.

How Do I File for Proposition 60/90 Tax Relief?

Claim forms are available from several sources. Choose the most convenient for you.

Online: Forms are available from the Assessor?s website: assessor.lacounty.gov

Email: Send us an email to helpdesk@assessor.lacounty.gov

Phone: Call 1.213.893.1239

Claim forms may also be requested by mail or in person at any of our offices.

What Form Do I Need?

Claim of Person(s) at Least 55 Years of Age for Transfer of Base Year Value to Replacement Dwelling (BOE-60-AH/OWN-89) .

1 For expanded definitions of Propositions 60 and 90, see Revenue and Taxation (R & T) Code Section 69.5. It is available online at www.boetaxes.ca.gov/property

ROGER LAN'S BLOG Thursday, 21 February 2008

What Does Short Sale Mean?

A short Sale is when the homeowner owes more on their mortgage more than what the property is currently able to sell for in today?s Real Estate market place.

This can occur for many different reasons. Equity lines of Credit where the homeowner takes money out of the equity of their home to pay off bills to an amount greater than what the house can sell for including closing costs.

    Another possible scenario would be the type of loan the homeownertook out originally that may be an Interest Only loan with negativeamortization and penalty fees for pay offs, 100% loans and Option ArmLoans. The homeowner now may owe more than the home is worth and would have to actually come up with the difference in the money in order to sell their house.

Short Sales are many times one of the first steps in the Foreclosure process. A Short Sale is definitely, a better option for the homeowner than Foreclosure. As a Realtor, I have helped facilitate Short Sales and work with Lenders on behalf of homeowners.

The Short Sale process must be agreed to by the Lender, the mortgage holder. There is quite a bit of paperwork involved in this process where the Lender asks the homeowner to provide documentation proving their inability to keep up with the house payments. W-2?s, pay stubs, tax returns are just a few of the items needed by the Lender. Lenders work with Realtors quite often on Short Sales.

Some Lenders would prefer a Short Sale rather than a Foreclosure. One very important item that all homeowners contemplating a Short Sale need to be aware of, is the difference in the amount that the Lender forgives (and some Lender?s don?t forgive), the IRS does not.

The IRS considers this amount as income and you may be taxed on it. If the homeowner decides to walk away from the mortgage loan by returning the property to the Lender, it is important to know that this will affect your credit. Remember, your credit is important when attempting to later rent.

Ifconsidering Bankruptcy in the form of Chapter 7 or Chapter 13, it isvital to see an Attorney who specializes in this field so that you areinformed properly as to the long-term drawbacks.

A very important side-note is that a homeownergoing through this process is many times bombarded with questionablepeople who offer their services at a very hefty price to the homeowner.You need to be cognizant of this and protect yourself by making surethat you are dealing with someone who really has your best interests atheart. I would suggest that you contact an experienced Realtor that can guide you through this process.

Your Realtor is your spokesperson to the Lender and can help you through this difficult time. In the Central Valley, from 2005 -2006 there has been a jump in default notices up 85%.

What is REO PropertyWhena property is sold through a foreclosure auction, its owner usuallyowes more to the lender than the market value of the property itself.This is often a barrier to selling the property, and sometimes suchforeclosure auctions do not draw any bidders. As a result, not manyforeclosure auctions end with the sale of the property, rather thetitle reverts back to the financial institution holding the lien.Properties in this category are referred to as REO (Real Estate Owned)properties.Afterthe bank takes possession of the property, the mortgage loan disappearsand the financial institution deals with any items owed by the priorborrower, such as homeowner association fees. The financial institutionalso tries to get the IRS to remove any tax liens against the property.The current owners are usually evicted and often repairs are made todamage on the property in order to make it more attractive to potentialbuyers.

The best parts of buying a REOproperty are that buyers have significant leverage and may be able toturn the property around quickly, making money by speculating on aboveaverage returns. Banks are trying to get the maximum return when theysell an REO property directly. They want to sell them quickly for twomain reasons: first, they don't want to tie up their money in capitalreserves they are required to set aside for a foreclosed property, andsecond, the management of such properties is a headache they wouldrather not have.

However, banks are verysophisticated when it comes to managing REOs and foreclosures, oftenhaving a department dedicated to them. The selling process starts whena potential buyer makes an offer to the financial institution, which isgone over by its management. Often, the institution will make acounteroffer, and the buyer may respond with another offer. After theyhave agreed on the price, terms, and conditions, a contract for thesale can be made.

When preparing to make anoffer, a potential buyer needs to look at what comparable properties inthe area are worth, along with the cost of any needed repairs.Financial institutions usually sell such properties as-is, which makesthe buyer's inspection even more important. If they discover damagethat they did not anticipate, which the institution will not repair,they can then cancel the transaction.

Investorsdedicate much to buying REO properties in terms of funds (often cash),work, time, and effort, thus the price needs to be far enough belowmarket value to justify the risk. Foreclosures are properties thatalready have had problems that often include tax issues, a lack ofmaintenance, substantial repairs, and often needed improvements thatcost a significant amount of money, and any investor looking to buysuch a property needs to keep this in mind at all times.

Posted by rogerlan at 7:12 PM PST Share This Post Post Comment | Permalink Thursday, 24 January 2008

Daily Real Estate News  |  January 24, 2008

Lower Rates Should Stimulate Real Estate

Now?s the time for homeowners facing resets on adjustable-rate mortgages or dealing with burdensome loans to refinance.

Whilemortgage rates aren?t specifically tied to the rates the FederalReserve controls, they are affected by this week?s cuts and they couldfall even farther if more cuts follow.

"Mortgagerates already have fallen and they still are falling," says Dave Loyst,vice president of retail lending at Stearns Financial in San Diego."Every deal is a struggle, but we're still doing loans. I think thisrate cut absolutely is going to help the real estate market."

"Thisdefinitely will help the mortgage situation," Loyst adds. "With ratesfalling, more people are able to qualify for refinancing and morepeople who were left out from buying homes before will be able to do sonow."

"This is theaffordability piece," says Richard Musci, vice president of CharlesSchwab Bank. "Consumers should be able to afford more (of their livingand discretionary expenses) at these lower interest rates."

Loystconcurred with that assessment: "People will come out looking to buyhouses...and it will help slow down the depreciation of real estate(values) in certain areas."

Source: Dow Jones Business News, Jennifer Waters (01/24/2008)

Posted by rogerlan at 12:51 PM PST Share This Post Post Comment | Permalink

Daily Real Estate News  |  January 24, 20082007 Existing-home Sales Fifth Highest

Existing-homesales declined in December following several months of stable activity,with total sales in 2007 at the fifth highest on record, according tothe NATIONAL ASSOCIATION OF REALTORS®.

Existing-homesales ? including single-family, townhomes, condominiums and co-ops ?slipped 2.2 percent to a seasonally adjusted annual rate of4.89 million units in December from a pace of 5.00 million in November,and are 22.0 percent below the 6.27 million-unit level in December 2006.

Forall of 2007 there were 5,652,000 existing-home sales, the fifth highestyear on record; however, the total was 12.8 percent below the 6,478,000transactions recorded in 2006.

Lawrence Yun, NAR chief economist, said the market is experiencing uncharacteristic weakness.

?Homesales remain weak despite improved affordability conditions in manyparts of the country, but we could get a quick boost to the market ifloan limits are raised in combination with the bold cut in the Fedfunds rate,? he said. ?Home prices are lower, mortgage interest ratescontinue to decline and incomes are higher, but many potential buyersare delaying a purchase.?

Accordingto Freddie Mac, the national average commitment rate for a 30-year,conventional, fixed-rate mortgage fell to 6.10 percent in December from6.21 percent in November; the rate was 6.14 percent in December 2006.Last week, Freddie Mac reported the 30-year fixed rate dropped to 5.69percent. ?Although interest rates on jumbo loans have fallen somewhat,they remain well above conventional mortgage rates,? Yun said. ?Itisn?t surprising that the share of single-family homes selling for morethan $500,000 fell to 12.4 percent of transactions in December from14.2 percent a year ago.?

Totalhousing inventory fell 7.4 percent at the end of December to 3.91million existing homes available for sale, which represents a 9.6-monthsupply3at the current sales pace, down from a 10.1-month supply in November.?The fall in inventory in December is encouraging, but inventoriesremain elevated and buyers have a clear edge over sellers in manymarkets,? Yun said.

The national median existing-home price2for all housing types was $208,400 in December, down 6.0 percent from ayear earlier when the median was $221,600. Because home sales haveslowed the most in higher cost markets, there is a downward distortionto the national median as the mix of closed sales has changed over thepast year. For all of 2007, the median price was $218,900, down 1.4percent from a median of $221,900 in 2006.

NARPresident Richard Gaylord, a broker with RE/MAX Real Estate Specialistsin Long Beach, Calif., said that raising the loan limit on conventionalfinancing is urgently needed. ?The most effective way to stimulatehousing and minimize the potential for a recession is for lawmakers toraise the limit on conforming mortgages to $625,000, which would opensafe and affordable financing to buyers in high-cost areas,? he said.?It is grossly unfair that some Americans do not have access tolow-interest rate loans. This would help people as they move away fromrisky subprime mortgages and high-interest rate jumbo loans.?

NARprojects the higher loan limit would increase annual home sales bynearly 350,000, reduce foreclosures by 140,000 to 210,000, and increaseeconomic activity by $44 billion. ?What?s more, this would come at nocost to taxpayers ? it?s a policy change that could really boost theeconomy,? Gaylord said.

Otherprojections of NAR?s analysis show raising the loan limit would reducethe supply of homes on the market by 1.0 to 1.5 months, and strengthenhome prices by 2.0 to 3.0 percentage points. In addition, as many as500,000 jumbo loans would be refinanced to lower interest rates.

Gaylordsaid current housing conditions vary widely. ?Many local areas continueto have healthy or improving local housing markets,? he said. ?Forexample, we saw higher home sales last month in diverse areas such asSan Antonio; Syracuse; Springfield, Ill.; and Sarasota, Fla. If you?rethinking about getting into the market as a buyer or a seller, consulta Realtor® to learn about conditions in your area ? they may be considerably different from the composite national picture.?

Single-familyhome sales declined 2.0 percent to a seasonally adjusted annual rate of4.31 million in December from 4.40 million in November, and are 21.6percent below 5.50 million-unit level in December 2006. In all of 2007,single-family sales fell 13.0 percent to 4.94 million.

Themedian existing single-family home price was $206,500 in December, down6.5 percent from a year earlier. For all of 2007, the single-familymedian was $217,800, down 1.8 percent from 2006.

Existingcondominium and co-op sales fell 3.3 percent to a seasonally adjustedannual rate of 580,000 units in December from 600,000 in November, andare 24.5 percent below the 768,000-unit pace a year ago. Condo salesfor all of 2007 fell 11.0 percent to 713,000 units.

The median existing condo price4was $222,200 last month, which is 2.5 percent below December 2006. Inall of 2007, the median condo price was $226,400, up 2.0 percent from2006.

Posted by rogerlan at 12:45 PM PST Updated: Thursday, 24 January 2008 12:53 PM PST Share This Post Post Comment | Permalink Tuesday, 22 January 2008

Daily Real Estate News  |  January 22, 2008

Fed Issues Emergency Rate-Cut

TheFederal Reserve, in an emergency meeting on Tuesday, slashed the keyrate to 3.5 percent, citing a weakening economic outlook. The movemarks the Fed's biggest rate cut ? three quarters of a point ? in morethan 20 years.

As fears of a recession looms, the Fed said the rate-cut was to help restore confidence in the U.S. economy.

?Whilestrains in short-term funding markets have eased somewhat, broaderfinancial market conditions have continued to deteriorate and credithas tightened further for some businesses and households,? the Fed saidin a public statement. ?Moreover, incoming information indicates adeepening of the housing contraction as well as some softening in labormarkets.?

NATIONALASSOCIATION OF REALTORS® Chief Economist Lawrence Yun says the75-basis-point cut in the Fed funds was a good step in giving theeconomy the boost and sending a clear message to both the market and toconsumers.

?This strongrate cut will help lower mortgage interest rates and lessen the burdenof adjustable-rate loans that are resetting in the currentenvironment,? Yun says. ?It also could help stimulate businessinvestment in the wake of market uncertainties. We commend the FederalReserve Board on its bold action, but at the same time we urge it tokeep a close watch to see if additional action is needed.?

TheFed also approved a decrease in the discount rate ? which, among otherthings, impacts how consumers pay home equity lines of credit ? to 4percent.

The Fed?s next scheduled meeting is on Jan. 30, where analysts say another rate-cut may be likely.

Source: REALTOR® magazine online and Dow Jones Newswire (1/22/08)

Posted by rogerlan at 9:42 AM PST Updated: Tuesday, 22 January 2008 9:43 AM PST Share This Post Post Comment | Permalink Sunday, 13 January 2008 ROGER LAN REALTY

Arcadia Real Estate News

Dec. 2007

sold condos:7 units  ,single house :23 units

.Older condos average price $304/sqft,newer condos $324/sqft,newer pud $344/sqft 

.Older Single House( less 1 million): $394/sqft,Newer single house (more than 1 million):$400/sqft 

                        Sales Statistics for Los Angeles County, CA Realist's most recent recording date is 11/26/2007

Single Family Residence

Time Period               Number of Sales         Median Sales Price

October 2007                            2,638                           $515,000

September                         2,508                           $550,000

August                               3,959                           $585,000*

July                                          4,033                           $575,000

June                                       4,570                           $570,000

May                                         4,404                           $575,000

April                                  4,279                           $565,000

March                                5,055                           $560,000

       October 2006                      5,599                           $535,000

September 2006                 5,852                           $535,000

August                               6,829                           $539,000

July                                          6,127                           $536,000

June                                       7,285                           $535,000

May                                          6,868                           $535,000

April                                          7,137                           $532,000

March                                5,644                           $535,000

Year to Date

2007                                         41,640                         $559,000

2006                                         70,886                         $534,500

Condominiums

Time Period               Number of Sales         Median Sales Price

October 2007                            1,092                           $430,000

September                         1,154                           $455,500

August                               1,686                           $470,000

July                                          1,816                           $475,000*

June                                       1,908                           $469,500

May                                         2,016                           $466,000

April                                  1,935                           $459,000

March                                2,408                           $469,000

October 2006                            1,944                           $439,000

September 2006                 1,964                           $425,000

August                               2,139                           $425,000

July                                          2,019                           $430,000

June                                      2,584                           $435,000

May                                          2,739                           $435,000

April                                          2,389                           $411,000

March                                2,075                           $432,000

Year to Date

2007                                         17,859                         $460,000

2006                                         24,405                         $430,000

CREDIT CRUNCH DRIES UP JUMBO LOANS AND HIGH END OF MARKET

Tuesday, December 04, 2007

Brought to you by CALIFORNIA ASSOCIATION OF REALTORS®

TheCalifornia housing market slipped further in September as the negativeeffects of the Credit Crunch deepened. Several factors have affectedthe market adversely since the start of the year, among them lowaffordability, tighter underwriting standards, and a standoff betweenbuyer and seller expectations.  Despite the decline in sales, themedian price edged up two percent in August.

The market took asharp turn in September, however, with sales falling below 300,000 forthe first time since 1991, and with the median price registering thefirst year-to-year decline since 1997. Sales fell 14.9 percentmonth-to-month from 319,200 sales in August to 271,590 homes inSeptember. Sales also continued to experience large year-to-yeardecreases, with a 38.9 percent drop from last year's September figureof 442,150 homes.

All segments of the market experienced lowersales, but homes over $500,000 were hit the hardest. Up through August,the under-$500,000 segment experienced year-to-year declines in therange of 20 to 30 percent, but September brought a more severe 36.4percent decline. Home sales between $500,000 and $1,000,000 saw 20 to30 year-to-year declines through August as well, but that segment wasrocked in September by a 52.4 percent year-to-year decline. Mostsignificantly, the market above $1,000,000, which had seen small singledigit year-to-year sales declines through August, suffered the mostwith a 26.4 percent year-to-year decrease in September.

This hada dramatic effect on the statewide median price of a home inCalifornia, which fell from $577,150 a year ago to $530,830. The 4.7percent decrease was the first such decline in over 10 years. Moreover,the median fell 9.9 percent month-to-month to $588,970, the largestmonth-to-month percentage decline on record going back to 1979.

Thissituation is mainly found in California and other states with highmedian home prices. With the national median at approximately $220,000,most buyers in the US could count on getting a conforming loan, even ifthey had to contend with tighter underwriting standards now compared to2 or 3 years ago. But high-priced states like California have faced atriple-whammy in recent months, with a heavy reliance on higher-costjumbo loans, tighter underwriting standards, and now, a lack of fundsbecause of the Credit Crunch. Based on the behavior of the financialmarkets in recent weeks, the Credit Crunch remains a problem and willlinger through the rest of the year.

LOAN DEPARTMENT Announcements: 

        *     Confirming Interest Rate:  30 years fixed ~ 6.125%. 15 yrs fixed ~ 5.75%

*   You will receive 0.375 % incentive for Confirming Loan LTV is equal or less than 75%

*   Now we have land/lot loan, LTV is up to 80%, the interest rate is around 7.75%, at 0 point.

*     Non-Confirming Loan Interest Rate has improved a lot:  30 years fixed ~ 7.125%.

*   Current Conforming Loan Limit:  1 Unit - $417,000

Arcadia City Lastest News

 Arcadiais a great city, in large part because it has so many people who careabout keeping it a wonderful place to live, work and visit. The Cityappreciates your efforts to maintain Arcadia's heritage as a beautiful,safe and neighborly community. Together, we will create a second 100years as fantastic as the first!

Wonder what it takes to be a good neighbor?  Below are a few thoughts on this subject: 

Getto know your neighbors. They don't have to become your best friends,but there are many reasons why knowing those who live closest to you isa good idea.Learn from neighbors with cultural backgrounds different from your own.Maintain your property and landscaping in an appropriate manner. Keep the neighborhood attractive for everyone.Ifyou have pets, understand that not all of your neighbors are animallovers. Don't let your dog or cat roam free and be aware of any noiseyour pets may make while you are not home.If you live in anarea where there are peafowl, don't feed the birds as this causes themto congregate in the area. While the birds may be amusing to some, keepin mind that they are a nuisance to others.Offer to watch your neighbor's house, water plants or pick-up newspapers while they are out of town.Payattention to what is taking place on your street. If you noticesomething suspicious, call the Police Department. The non-emergencytelephone number is 574-5150. In an emergency call 911. Considerforming a Neighborhood Watch group if one is not already active in yourarea. Call 574-5174 for information.If you are hosting agathering at your home let your neighbors know in advance so that theycan be prepared for the additional cars/traffic and a little more noisethan usual. Depending on the nature of the event, consider invitingyour neighbors. End the party at a reasonable hour.Returnanything you borrow as soon as possible. Replace anything that belongsto your neighbor that you, your children or your pets damage.Say hello when you see each other!City reaches agreement with the Arcadia Police Officers' Association Posted Date: 1/11/2008

Atthe end of a closed session meeting on January 11, 2008, the CityCouncil announced that they have reached agreement with the ArcadiaPolice Officers' Association on the terms of a four-year contract.  Theagreement, which still requires formal ratification at a future CityCouncil meeting, will be effective back to October 1, 2007 and includesa 24.44% increase in salary and benefits over four years with incentivepay for special assignments that require particular expertise and/ortime commitment on the part of Officers. 

"We are pleased toconclude contract negotiations with the Arcadia Police Officers'Association and appreciate their commitment to resolving the matter. We all look forward to a continued emphasis on public safety and toworking diligently to ensure the safety of our community," said MayorMickey Segal.

Commenting on the situation City Manager Don Penmanstated that he too is delighted to see the matter come to a positiveconclusion and that "...I believe this package - and in particular thefour-year term which provides stability for the Officers and knowledgeof where the Department is going in the future - will help address inthe long-term the retention and recruitment issues the PoliceDepartment has faced."

Attention teen drivers Posted Date: 10/5/2007

InJanuary 2006 California increased driving restrictions for personsunder the age of 18 who hold a provisional drivers license.  Teendrivers with a provisional license are prohibited from transportingpassengers under the age of 20 for the first 12 months and they arealso prohibited from driving between 11:00pm and 5:00am during thefirst 12 months.  There are other restrictions and some exceptions thatare described further on the State of California Department of MotorVehicles website - www.dmv.ca.gov/dl/dl_infor.htm#FIRSTYEAR

Housing Markets That are Still Thriving

Daily Real Estate News  |  December 11, 2007

Thebest-performing housing market in the country during the third quarterwas picturesque Wenatchee, a city of more than 35,000 that is the seatof Chelan County, Wash. Prices in the Wenatchee metro area increased by15.7 percent year over year, according to RealtyTrac.

Home prices also jumped more than 10 percent in second home markets in Utah, Idaho, and Colorado.

"They'redoing so well because they're getting the run-off from California,Nevada, and Arizona," says Jeannine Cataldi, senior economist forGlobal Insight. "When prices got so high [in those states], peoplesaid, 'there must be places that are more affordable.'"

Here are the top 10 best performing markets in the country:

1. Wenatchee, Wash.: 15.7 percent 2. Provo-Orem, Utah: 14.35 percent 3. Grand Junction, Colo.: 14.05 percent 4. Ogden-Clearfield, Utah: 13.95 percent 5. Salt Lake City: 13.37 percent 6. Idaho Fall, Idaho: 11.69 percent 7. Austin-Round Rock, Texas: 9.67 percent 8. Beaumont-Port Arthur, Texas: 9.44 percent 9. Asheville, N.C.: 9.44 percent 10. Billings, Mont.: 9.07 percent   Credit Score Primer: What Buyers Need to Know to Get a Loan

Source: The Dallas Morning News, Pamela Yip (12/03/07)

Inthe wake of the credit crisis, lenders have become much pickier aboutwhom they lend to. Here are some basic facts that will help potentialborrowers understand what they face.

The measurement that mostlenders use to assess applicants' credit risk is the FICO scoredeveloped by Fair Isaac Corp. The score ranges from 300 to 850.

There's not one FICO score. Buyers have three: one for each of the three credit bureaus, Experian, TransUnion, and Equifax.

Eachcredit score is based on information the credit bureau keeps on file.Since credit bureaus don't share their data with one another, the threeFICO scores may differ, sometimes by as much as 100 points.

The components of a FICO score are:

Payment history: 35 percent Amounts owed: 30 percent Length of credit history: 15 percent New credit: 10 percent Types of credit used: 10 percentAconsumer with a 580 credit score might qualify under FHA requirements,but, generally, in order to qualify for a prime loan, a borrower musthave a credit score above 620 for a conventional loan at all and above720 for a loan at terms and rates most borrowers would considerdesirable.

Daily Real Estate News  |  January 11, 2008

                    How to Get a Quick Sale in a Slower Market

An analysis of the real estate market in the Baltimore area shows that even in a slow market some houses sell quickly ? for the same reasons they do in a booming market.

InNovember, when the average time on the market was 105 days, 13 percentof the 1,892 homes that sold in Baltimore and five surrounding countieshad contracts in two weeks or less, according to data from MetropolitanRegional Information Systems Inc.

Those251 homes went from listing to selling in an average of seven days.They were typically older, three-bedroom, two-bath houses that sold atan average of $304,355 ? about $4,000 under the overall average sale price.

An analysis shows that fast sellers in a slow market have three common denominators:

They're priced better than comparable listings. They show like model homes. They have a full force of marketing, including enticing Internet photos, behind themDaily Real Estate News  |  January 11, 2008

                      Mortgage Rates Continue to Drop This Week

FreddieMac reports a drop in the 30-year fixed mortgage rate from 6.07 percentto 5.87 percent during the week ended Jan. 10, in response to a recentgovernment report revealing a boost in the unemployment rate to 5percent in December from 4.7 percent in November.

The 15-year fixed mortgage rate fell to 5.43 percent from 5.68 percent over the same period.

Meanwhile,the five-year adjustable mortgage rate sank to 5.63 percent from 5.78percent; and the one-year ARM dropped to 5.37 percent from 5.47percent.

Freddie Mac chiefeconomist Frank Nothaft notes that the more than quarter-point declinein mortgage rates in recent weeks has bolstered refinancing requests.