Real Estate

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The market is at an all time high, but is now at a decrease in sales. It's not suprising for a slow downwhen the average home cost $560,000, and your property taxes are $5,600 a year and your payments maybe more or less then$5,000 thousand a month depending onhow much your down payment was on the property purchase. Here's an article from the California Association of Realtors report.

C.A.R. REPORTS HOME SALES DECREASED 15.1 PERCENT IN MARCH
The median price of an existing single-family home in California increased 13 percent in March and sales decreased 15.1 percent compared with the same period a year ago, C.A.R. recently reported. "March is the month in which we typically see the market gear up for peak season activity, and this year is no exception," said C.A.R. President Vince Malta. "Seasonally adjusted statewide sales increased 4.9 percent compared with February and the statewide median rose 4.8 percent compared with the prior month. This is very similar to March 2005, when sales rose 4.4 percent month-to-month and the median price registered a 5.5 percent increase."

According to the report, the median price of an existing, single-family detached home in California during March 2006 was $561,350, a 13 percent increase over the revised $496,890 median for March 2005. The March 2006 median price increased 4.8 percent compared with February's revised $535,480 median price. Also in March, closed escrow sales of existing, single-family detached homes in California totaled 539,170, down 15.1 percent compared with the sales pace recorded one year earlier but up 4.9 percent from home resale activity in February.

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FED HOLDS FUNDS RATE AT 5.25 PERCENT


The Federal Reserve's Federal Open Market Committee today reported that moderate economic growth is likely in the coming months, despite ongoing concerns about core inflation. The Committee also announced its decision to keep the target for the federal funds rate at 5.25 percent, where is has stood since June 2006. The federal funds target rate is the interest rate charged by banks when they borrow funds "overnight" from each other. While the federal funds rate has no direct impact on other rates, such as those for mortgages, it can alter them indirectly.

In a prepared statement, the Fed acknowledged slower economic growth in recent months, including ongoing adjustments in the housing market. Should inflation fail to moderate as expected, the Committee may raise the Fed Funds rate as necessary.

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Here some info for anyone that could use on how to avoid and protect from a Foreclosure on a home. which provides outstanding information for existing homeowners who may not be able to afford their current mortgage, including phone numbers, counseling services and just plain good advice.

Just clickon the attachment for the brochure.

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This is info on how to avoid predatory lending to help prospective homeowners avoid unfair lending practices.

Click on the attachment for the brochure.

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C.A.R.'S 2008 CALIFORNIA HOUSING MARKET FORECAST
Home prices throughout most of California will post modest declines next year while sales of existing homes will stabilize from the precipitous decrease experienced in 2007, according to C.A.R.'s "2008 California Housing Market Forecast" released today.

The forecast was presented this afternoon during the CALIFORNIA REALTOR® EXPO 2007, running from Oct. 9-11 at the Anaheim Convention Center in Anaheim, Calif. The trade show attracts nearly 12,000 attendees and is the largest state real estate trade show in the nation.

The median home price in California will decline 4 percent to $553,000 in 2008 compared with a projected median of $576,000 this year, while sales for 2008 are projected to decrease 9 percent to 334,500 units, compared with 367,500 units (projected) in 2007.

"Tighter credit standards, affordability concerns, and a continued standoff between buyers and sellers will contribute to continued weakness in the market going into next year," said C.A.R. President Colleen Badagliacco. "Now is not the time for homeowners to test the waters, only serious sellers should put their homes on the market in what will continue to be a challenging sales environment."

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LATINO POPULATION GROWTH WILL REQUIRE 4 MILLION NEW HOMES


Latino homeownership in California trails the nation, and, in order to adequately meet the needs of the state's fastest growing ethnic community, roughly 4 million homes must be built in the coming decades, according to a new study by the California Building Industry Association (CBIA), and the California Homebuilding Foundation (CHF).

"Latino Californians understand the importance of homeownership to their families and their long-term economic prosperity," said Robert Rivinius, CBIA president and CEO. "California will grow by over 14 million people by 2030, and nearly 80 percent will be Latino. To meet the demand, California must produce 4 million homes and apartments. Right now, we're not even close."

The study shows an overwhelming majority of non-home owning Latinos would like to own their own homes. Latino Californians support environmental protection laws, but want to see increased production of well-planned housing; they overwhelmingly believe home builder and home buyer government fees need to be lowered to increase affordability; and Latino Californians strongly support government sponsored programs for homeownership for low-income families, but oppose inclusionary zoning policy, according to the study.

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http://news.yahoo.com/s/nm/20071017/us_n..._living_dc

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[color=navy][b]C.A.R. REPORTS SALES DECREASE OF 40.2 PERCENT
Home sales decreased 40.2 percent in October in California compared with the same period a year ago, while the median price of an existing home fell 9.9 percent, C.A.R. reported today.

"Financing issues have dogged entry-level buyers since early 2007, but they spilled over into the middle- and upper-tier markets in the last few months," said C.A.R. President William E. Brown. "The decline in sales at the upper end of the market contributed to a significant decline in the statewide median price as even well-qualified borrowers had difficulty securing financing."

Closed escrow sales of existing, single-family detached homes in California totaled 265,030 in October at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity decreased 40.2 percent from the 443,320 sales pace recorded in October 2006.


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NO CHANGE FOR CONFORMING LOAN LIMITS IN '08
The Office of Federal Housing Enterprise Oversight (OFHEO) announced Tuesday it will keep conforming loan limits at current levels of $417,000 for single-family mortgages in 2008, and also hinted it could lower the limits in 2009 if home prices continue to decline.

The conforming loan limit determines the maximum size of a mortgage that Fannie Mae and Freddie Mac can buy or guarantee. Non-conforming or jumbo loans typically carry a higher mortgage interest rate than a conforming loan, increasing the monthly payment and negatively impacting affordability for households in California.

"At more than $568,000, the median price of a home in California is more than 2.5 times the U.S. median of $221,000, yet California is not recognized by OFHEO as a high-cost state," said C.A.R. President William E. Brown. "California still has the third highest home price in the nation, compared with Hawaii at seventh, and Alaska, which ranks 39th in terms of median home price. Yet Alaska, Hawaii, Guam, and the U.S. Virgin Islands are recognized by OFHEO as high-cost areas."

"Now is the time for the U.S. Senate to pass legislation allowing regional adjustments to Fannie Mae and Freddie Mac loan limits and to modernize FHA loan programs," Brown said. "This critical legislation is a key step to allowing families in California an opportunity to climb the first rung of the homeownership ladder."

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CALIFORNIA LEADS NATION IN LEAST AFFORDABLE HOUSING
Despite falling home prices in many regions of the state, California remains the nation's least affordable market for homeowners according to the latest California Building Industry Association NAHB/Wells Fargo Housing Opportunity Index.

"Despite market corrections that have made some areas more affordable, the fact remains that the cost of housing in California is out of reach for many hard-working families who want to be able to buy their first home," said CBIA president and CEO Robert Rivinius.

During the third quarter, nine of the nation's 10 least-affordable communities were located in California, according to the index.