Hello Neighbors,I attended this month's Finance Forum (meeting) at the Sacramento Association of Realtors branch office.Interesting stuff.A term we've been hearing more and more of recently was discussed..... "Shadow Inventory".What is Shadow Inventory?Homes that are in some sort of Notice of Default (NOD) or foreclosure proceedings... but haven't yet been taken back by the banks. Meaning? Homes that are vacant - or will be soon - that aren't yet being reported on the bank's financial books.How much?I heard an estimate this morning that shocked me: 35,000 - 40,000 homes in the "Greater Sacramento area". Now that area probably includes parts of Sacramento County, Placer County, and even El Dorado County. If those numbers are correct, it is a HUGE amount of homes that will some day come t... 10/01/2009

Hi Neighbors, Making Sense of the Market Today Current Home Inventory (MLS Single Family Detatched homes only) Placer County currently has 2068 homes on the market at the end of September. This is 8 more than last month, and has been a fairly consistent running number throughout 2009.    Of the 2068 homes: 134 or 6% are Bank Owned (REO) homes.  This number has been steadily declining over the past 9 months. 965 or 47% are Short Sales 971 or 47% are Organic, non-distressed owner sales REO homes comprise a smaller percentage of Placer County Inventory Foreclosed homes are decreasing in number as well as percentage during 2009, however the number of Short Sales have increased keeping distressed homes for sale at 50% or more of the homes on the market. September 2009 Home Sales 342 homes we... 09/30/2009

Hi Neighbors, When you are purchasing or remodeling a home one of the things to consider is appreciation.  What will the value of my home be in 5 or 10 years?  In the past couple of decades, we've seen some incredible swings.  Overall during the past 7 or more decades home prices have kept pace with inflation and most people buying a home did so because of life style reasons rather than as an investment.  The Los Angeles Times recently publlished an artlce that sums up what some economists are predicting over the next few decades. Housing Economists Predict Slow Growth The fundamentals that drove the increase in housing values for the last century - increasing population, incomes, and household wealth - may not follow in the United States in the future. Some housing experts speculate th... 09/29/2009

Hi Neighbors, Great news today.  Many of our communities have assistance programs for low income household to provide them with various assistance to get a home, however many of these are not funded.  A good example is the city of Roseville's assistance program where there is a minimum of a 1 year wait and priority is given to city employees (great program if you are a city employee).  The city of Rocklin and Lincoln have similar programs, but lack funding.  The Obama administration may help fund more of these programs as reported below: The U.S. Treasury is contemplating a new program that would provide as much as $15 billion to purchase tax-exempt mortgage bonds issued by states over the next three years.The program would be beneficial for low-income home buyers who have long depended... 09/28/2009

Hi Neighbors, I found a link to frontdoor.com that has some wonderful pointers on choosing a new home, starting with doing an inventory of what you want out of a home, then finding a neighborhood that matches those requirements. The article starts off by asking about your own family make-up and plans such as number and age of children (or plans on starting or expanding your family), the type of home you are looking for, commute distance, historic home or new development, what you like or dislike about your current community, access to stores and schools by foot, what community features turn you off such as noisy neighborhoods. Also, once you have identified those neighborhoods you would like to explore take some time to check out the area durring different times of the day and night, an... 09/28/2009

Hi Neighbors, While the new homebuyer tax credit may be expiring soon, the Energy Tax Credit IS NOT!  You have until December 31, 2010 to get a 30% tax credit, up to $1,500 on installing new energy efficient windows, insulation, air conditioning systems, and more!  AND funds are still available supporting the tax credit. In addition there is the Residential Energy-Efficient Property Credit, or Section 1122, of the Recovery Act.  This provides tax credits to install alternative energy equipment, such as solar hot water heaters, geothermal heat pumps, and wind turbines. Check for a National Fenestration Rating Council (NFRC) certification to verify products qualify for the tax credit. JeffNeighborly Realtyhttp://www.EnglePropertiesOnline.com   09/28/2009

Hi Neighbors, I came across a summary of an article published in the Chicago Tribune talking about short sales.  With about 40% of the inventory in Placer County (with similar stats in surrounding counties) short sales are an important part of our housing market today.  With around 7% of the inventory from REO/Bank Owned properties and 40% from Short Sales that means nearly half of the inventory is in the cateogry of 'distressed sales'.  Here's the link to the full article, and here's the summary from the NAR: As more homeowners find themselves underwater -- owing more on their mortgage than their home is currently worth -- and unable to make the monthly mortgage payments, many are turning to short sales, which allow a homeowner to sell their home for less than owed on the mortgage.  Sh... 09/25/2009

Hi Neighbors, An updated tax credit chart has been published by the California Association of Realtors (CAR).  It can be read in full here. First, the California new home tax credit for First Time Home Buyers (FTHB) is no longer available as the funds have run out. Secondly, the US tax credit is still available until November 30th of this year, for a 10% credit up to $8,000. More details are available at the IRS web site here.  Quoting from the IRS information: "The IRS reminds taxpayers the amount of the credit begins to phase out for taxpayers whose modified adjusted gross income is more than $75,000, or $150,000 for joint filers. Taxpayers can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately." Hope this has been helpful, JeffNei... 09/24/2009

Hi Neighbors, Here is a great article about investing using your Self Directed IRA.  The full article can be read here from the San Francisco Chronicle. Key Points: You need to follow IRS rules - for example you can't live in the property The rental income can go directly back to your IRA You need to put down 30% This could be a great way to save money on taxes today and build your retirement.  Read the article for details, and consult your tax accountant before making this move.  For some, it could be a perfect way to invest. JeffNeighborly Realtyhttp://www.EnglePropertiesOnline.com   09/23/2009

Hi Neighbors. I received a great article in a newsletter from a mortgage broker I work with - Chris Headrick.  In it he states: First-time homebuyers (FTHB) are taking advantage of one of the best real estate environments we have ever seen. Home affordability this year has been at an all time high with low interest rates and declining home prices. However, buyers on the fence should not be complacent. The full article continues with great points about first time home buyer (FTHB) information.  Included topics are: Why buy a home Financial reasons to buy Move in and watch it grow (appreciation and equity) The impact on your wallet - today Income tax credit Paying down points Mortgage interest tax deduction Private Mortgage Insurance (PMI) Real Estate Taxes Possibly more dough (not the br... 09/23/2009

Hi Neighbors, My daughter recently purchased a home, and included an Energy Efficient Mortgage (EEM) with her FHA loan.  This is a great tool for homes needing a retrofit for HVAC or insulation.  But, how much are you willing to pay so save some $$$$ on your energy bill?  For the EEM it's pretty neat because you are given several options to choose from, and the energy savings must be more than the montly  increase of your mortgage. Here's an interesting article about energy savings - of special note: Even though prospective home buyers want the benefits of new, more efficient homes, they are unwilling to pay much more for a "green" home, according to a recent member survey from the National Association of Home Builders (NAHB). Read more: http://rismedia.com/2009-09-19/home-buyers-want-t... 09/22/2009

I recently had a fire in the kitchen when my Kenmore gas range igniter caught fire.  It was a scary time, and I was able to extinguish the blaze fairly quickly. Here is a good article about fire safety in the home. In the United States, approximately 2.4 million burn injuries are reported per year. The Journal of Burn Care and Rehabilitation reports that, of those injuries, between 8,000 and 12,000 of the burn patients die and approximately one million will sustain substantial or permanent disabilities resulting from their burn injury. According to the Home Safety Council's State of Home Safety in America Report, fires and burns are the third leading cause of unintentional home injury and related deaths.Read more: http://rismedia.com/2009-09-20/top-10-tips-for-burn-and-fire-prevention/#... 09/22/2009

The fall is the time to fertize your lawn.  Usually you need temperatures in the 90's or below for a few days so if you have not already done so, fertilize during the next cool spell. More information can be found here. Remember to stay within the guidelines recommended so you don't have a bunch of fertilizer wash out to our creeks and streams.  A green lawn and well kept landscaping goes a long way when you are planning to sell your home.  Curb appeal is key to getting top-dollar for your home. Also check out fall flowers to add color.  Here in California there is always something you can plant to improve your curb appeal. JeffNeighborly Realtyhttp://www.EnglePropertiesOnline.com 09/22/2009

Hi Neighbors, According to the John Burns Real Estate Consulting September survey of home builders, the housing market is stabilizing, with more builders raising prices than dropping prices in California. Read more: http://rismedia.com/2009-09-21/regional-spotlight-new-home-price-stability-emerges-in-california/#ixzz0RqpX5HTA One of the key notes from the article is: -Prices appreciating in California and flat elsewhere. Reports of emerging price stability in a growing number of metros are balanced by numerous reports of continued downward pressure on pricing from foreclosures and short sales. In almost all markets, the lower price points are faring better than the higher price points due to FHA financing and the Federal tax credit. This is a another good sign of price stabilization in ... 09/22/2009

Hi Neighbors.  Afraid of a fixer?  Do you live in one or are thinking of buying one, and are interested in doing a project yourself?  Read on...  For some people, getting a fixer is just not in the cards. However for most folks a lot of the work that needs to be done on many homes is cosmetic like replacing carpet, painting, and minor repair work. Even when it gets a little more complicated like removing and installing new kitchen cabinets it may not be as difficult as it looks, and there is a lot of help available.  Often the first thing to do in any project is figuring out where to start. The key here is to break any project down into smaller ones. For example a kitchen remodel may include putting in a new floor, replacing kitchen cabinets and upgrading appliances. Figure out what nee... 09/22/2009

In an attempt to answer a comment on my blog, I found this Time Magazine article of Augusst 18, 2009.  Please repost it, as it contains very excellent and concise comparisons between American and British healthcare systems. http://www.time.com/time/health/article/0,8599,1916570,00.html?xid=rss-top-aol   Arguments and shouting are all about over healthcare.  This normal and healthy with a contraversial issue.  I have a firm belief that once A HEALTHCARE BILL is passed, it will take a similar path as all new laws... changes will be made in the future... amendments passed... as it morphs into a form of healthcare that is the pride of our country.  This is how Social Security has developed over the years.  See http://www.ssa.gov/history/history.htm Social Security was not easy to birth.  FD... 09/21/2009

Congess is working on extending the new Home Buyer Credit.  Remember, these are proposals and nothing is concrete other than the current Home Buyer Credit.  If you are planning on purchasing a home now, the best course of action to to work hard at getting the current credit working for you and not hold out for an extension.  The AP reports: Washington is being forced to take a hard look at the expiring $8,000 first-time homebuyer tax credit.Nearly a dozen bills have been proposed to extend the credit past the Nov. 30 deadline, but the top decision makers are just beginning to weigh in.On Thursday, Senate Majority Leader Harry Reid endorsed a six-month extension. Treasury Secretary Timothy Geithner said Thursday that he hasn't made a decision yet. And the White House economic team says i... 09/21/2009

This is a direct quote from an article in my local newspaper. "Even before moving to England four years ago, I often went without health insurance. Self-employed people like me with pre-existing conditions – in my case, a non-functioning thyroid – do not qualify for medical insurance in America. The statistics say nearly 50 million Americans live without health coverage, but I suspect the number is much higher. In my own circle of family and friends, more than half do not have access to basic health care. They either can't afford the premiums or have been denied insurance by all viable providers. While recent reports calculate that Americans spend 16 percent of their income on health care, my exceptionally hale and hearty parents spend closer to 30 percent of their income maintaining th... 09/19/2009

Hello Neighbors,Many thanks for those of you who have helped us support the Auburn "Highway 49 Fire" relief efforts. We plan to drop off another huge batch of clothing this weekend. This is a great community, and we very much appreciate the support from everyone.For us... This is more than propaganda. Helping the communities where we live is part of our operating philosophy we call "The Neighborly Way". Take a look at point #9:The Neighborly Way1) Service - NOT Sales2) Be the Industry and Market Expert3) Advisors, Coaches, and Teachers4) Respect for the Client, Team Member, Partners, and Peers5) Communicate Frequently - with Fact, Tact, and Truth6) Integrity First, Honesty Always7) Earn and Encourage Trust8) Personal Earnings are Second to Client Service and Their Satisfaction9) Repay o... 09/17/2009

Hi Neighbors, I want to share Neighborly Realty's vision, direct from the Broker Jim Harris and fully endorsed by myself.  The reason I joined Neighborly is because of our commitment to YOU and an attitude of helping and educating our clients.  YOU are the reason we are successful. From time to time, it's important to look at why we are here. Keeping us focused on a few fundamental beliefs means better service levels for you. So now and then, we ask ourselves - what is Neighborly's Vision?Where do we fit against the competition?How do we behave, and represent the Neighborly Way every day?Simply stated......THE ChoiceBy Delivering Unequaled Customer Service, Neighborly is the Recognized Leader in Real Estate and Lending Services in Northern California - By Clients, Partners, and Industry... 09/17/2009