There’s no question that the national economy is in a time of crisis. There’s no question that the real estate industry lies near the very heart of that crisis, and we all want to see its recovery.

A large part of the Federal Government’s economic stimulus package, the FTHTC is set to expire at the end of this month. Any real estate transaction that closes prior to midnight on November 30th, and whose buyers are first-time (meaning that they haven’t owned a home in 3 or more years) buyers, qualifies to receive an $8000 tax credit.

Certainly, many buyers have taken advantage of it (they would have been crazy not to).

Now, the government is set to vote on an expansion of the tax credit. The credit would not just be extended into next year, its terms would extend to homeowners who’ve been in their homes for five or more years (provided that they would be moving “up”), and would apply to buyers with higher incomes.

There are two other superstars playing roles in the real estate market right now: record-low interest rates and low, low, low home prices. Those two characters alone carry a huge amount of influence (as well they should) and should be the things motivating buyers — both new and experienced — to buy homes.

An extension of the Credit will no doubt magnify the impact of these forces.

For the seventh straight month, resale home prices in California increased.

This stretch, which follows a period in which sales had decreased for 22 consecutive months, is a clear indicator that things really are improving. In addition to the increase in resale prices, the unsold inventory index – the index signifies the number of months needed to deplete the supply of homes on the market at the current sales rate — fell to 4.2 months, compared with 6.5 months for the same period in 2008.

Not only are homes now selling at somewhat higher prices, they are also taking less time to sell. In September, the median number of days – the number which is exactly in the middle between the most and the least amount of days it has taken to sell a home – to sell a single-family home was just shy of 34. In September 2008, the median was almost 47 days.

For the sellers of real property in California, this news is nothing but good. While home prices might not be at the levels of 2007 (it will likely be quite a while before we get there again), this steady increase will alleviate much of the pressure and worry being felt at watching home prices fall and dwindle. Sellers, and their Realtors, will be able to price their homes with greater confidence of achieving their listing price.

For buyers, too, the news is good. Because it very clearly points out that for those considering purchasing a home, the time to do so really is now. Prices are still very low, by comparison to the standards of 2006 & 2007, and mortgage rates are still at record lows. As we’ve (and just about every other news outlet) pointed out, too, the Homebuyer Tax Credit, unless Congress decides to extend it, is set to expire in just about a month. Combining the tax credit with low prices and low mortgage rates is an opportunity that first-time homebuyers might not have again.

The bottom line: while this news shouldn’t give us cause to think that the hard times have come to an end, it is very encouraging. Things are getting better. Slowly, but surely, we are getting there.

The new legislation is designed to bolster California’s reverse mortgage laws, giving seniors greater protections when considering such financing options, making it a felony to commit fraud in conjunction with any mortgage application, as well as to promote forthrightness, responsibility and accountability in the real estate market.

“Fraudulent mortgage practices have become more prevalent as a result of the national foreclosure crisis that negatively impacted California’s housing market and economy,” said Governor Schwarzenegger. “This legislation helps crack down on abusive lending practices by giving law enforcement the tools to effectively investigate mortgage fraud crimes and provides Californians with greater consumer protections to promote homeownership in a safe and accountable environment.”

Specifically, the bills signed into law on October 11, 2009 are:

• AB260, by Assemblyman Ted Lieu, D-Torrance, will enact the Higher-Priced Mortgage Loan Law, which would codify a fiduciary duty for mortgage brokers, authorize California’s mortgage regulators to apply specified federal mortgage lending laws and regulations to their licensees and cap prepayment penalties and yield spread premiums on higher-priced loans

• SB36, by Sen. Ron Calderon, D-Montebello, which will establish licensing requirements for all individual loan originators who offer or negotiate residential mortgages.

• SB239, by Sen. Fran Pavley, D-Santa Monica, which makes it a felony to commit fraud in connection with a mortgage application. This bill makes individuals who engage in mortgage fraud guilty of a public offense punishable by imprisonment in the state prison or in a county jail for up to one year. The bill also provides law enforcement with the necessary tools to make it easier to obtain a search warrant to real estate records and documents believed to contain evidence of mortgage fraud.

• AB329, by Assemblyman Mike Feuer, D-Los Angeles, which establishes the Reverse Mortgage Elder Protection Act of 2009 to provide senior homeowners with greater consumer protections to ensure that they are fully informed about the consequences of entering into a reverse mortgage agreement. Specifically, the bill requires lenders to provide prospective borrowers with a clear and informative written disclosure statement and a written checklist pertaining to the risks and suitability of a reverse mortgage, prior to the borrowers attending loan counseling.

• SB237, by Sen. Ron Calderon, D-Montebello, which creates a registration program for appraisal management companies and prohibits any person or entity from acting in the capacity of an appraisal management company without first obtaining a certificate for registration from the Office of Real Estate Appraisers.

• AB957, by Assemblywoman Cathleen Galgiani, D-Livingston, which mandates that buyers of foreclosed homes would have the choice of using a local escrow office to handle the transaction. It also prohibits a seller of residential property from requiring the buyer to use an escrow company or purchase title insurance chosen by the seller and would also prohibit a seller or residential property from, without good cause, disapproving the use of a title or escrow company chosen by the buyer.

• AB1160, by Assemblyman Paul Fong, D-Cupertino, which requires mortgage loan documents to be translated into the language in which the verbal negotiations were conducted. Mortgage documents would be translated into Spanish, Chinese, Tagalong, Korean and Vietnamese languages.

What all of this means for buyers — and sellers, for that matter — of real property in California is that while there are now more protections than ever, constant vigilance is always in order. No matter what sort of pressure you might feel, take all the time you need to understand what you’re signing. Cross every t, dot every i. You have lots of rights and protections, but they won’t necessarily help you if you aren’t aware of them.

And, when you think about it, this really is about you too.

I’m talking about the Intero Foundation.

Let me explain.

When we founded Intero just seven years ago, we set out to create a company that was different. That difference would be based on our values. One of those values is commitment – defined as; a pledge to do something, a state of being bound intellectually to a course of action.

As Realtors we earn our living by serving our community. So it was fundamental when creating Intero to figure out a way to give back to the community. We express this commitment now through the Intero Foundation.

To date, the Intero Foundation has donated $1,367,365 to local charities. These organizations range in size and mission, but all work to positively impact the growth and well being of children by enhancing their education and personal development.

Just last week, we announced our most recent list of beneficiaries, we were able to give out over $100,000 in one week divided amongst these organizations which work to make our children – and our communities — stronger: Dream Power Horsemanship, Rape Trauma Services, Family Connections, My New Red Shoes, Jacob’s Heart, Bill Wilson Center (SSJFY), Small Steps Foundation, Community Solutions, and the Learning & Loving Education Center.

To give you an idea of all the non-profits we’ve been able to contribute to since the foundation’s existence – here is our long list:

A Brighter Today Foundation, Alum Rock CounselingCenter, Assistance League of San Jose, Assistance League of Saratoga, Barrett Elementary School, Barrett Home School & Community Club, Bay Area Alliance for Youth Family Svcs, Bay Area Crisis Nursery, Bill Wilson Center (SSJFY), Buena Vista Auxiliary, Buenas Vidas Youth Ranch, Burnett Elementary School, Burton Elementary School, CampHope, CampTaylor, Carlmont Motivational Center, Children’s Hospital Branches, Community School of Arts, Community Solutions, Concord Youth Center, Cross Cultural Community Service Center, Cupertino Community Services, Dan Herbert CampHope, Diablo Valley Assistance League, Discovery Counseling Center, Discovery Counseling Center SCIP Program, Downs Syndrome Connection, Estrella Family Services, Family Connections, Family Giving Tree, Franklin McKinley Education Foundation, Friends Together, Future Families, Future Vision Mentoring, Generations in Jazz, Hellyer Elementary, Housing Industry Foundation, Interfaith Council of Contra Costa County, JW House, Learning for Life, Let Them Hear Foundation, Lincoln High School, Los Paseos Elementary School, Montalvo Arts Center, NAMI Contra Costa, National Alliance of the Mentally Ill, One Step Closer, Open Heart Kitchen, Organization of Special Needs Families, PACE, Partners for New Generations, Project Help, Quilt Museum, Rape Trauma Center, Rebekah Children’s Services, Role Model Program, San Francisco 49ers Academy, San Jose Education Foundation, Schmahl Science Workshop, Shelter Inc. of Contra Costa County, Silicon Valley Education Fund, Silvar-Charitable Foundation Trust, Small Steps, Social Advocates for Youth, Special Olympics, St. Rose Hospital Foundation, St. Joseph Family Center, Starting Point Arts, Super Stars Literacy Program, The Salvation Army, The Wellness Community, The Wish Book, Upward Bound Youth, US Relief for Unicef, Via Services, Westwind Riding Institute.

Each of us at Intero is proud to support these organizations.

So why does this matter to you? Well, there is an obvious connection: We are helping to make the place you call home (or are hoping to call home) better. And that matters.

But we are also expressing something about ourselves that might interest you: That we are a big organization, but not too big to remember that we are part of something still larger; that we take seriously our role as an organization rooted in a place; that we believe we must give in order to receive.

If you share these beliefs, if it matters to you what your real estate company does in the wider world, then we have created something for all of us.

The California Association of Realtors says median home prices are expected to rise modestly next year as the housing market begins to experience its “new normal.”

“This new normal likely will feature a steady stream of sales driven by distressed properties in the low end of the market, coupled with moderate home-price appreciation,” says James Liptak.

Liptak made his comments as part of C.A.R’s 2010 California Housing Market Forecast.

C.A.R. Vice President Leslie Appleton-Young says distressed properties are expected to account for nearly one-third of sales next year. She also says inventory will be “relatively lean, under six months during the off-season months, and a roughly four-month supply during the peak season.”

“The wild cards for 2010 include foreclosures, loan resets, the labor market and the California budget crises as well as the actions of the federal government,” Appleton-Young said.

For the full report, click here.

See Also

• Intero Real Estate Services- Find Real Estate, Property For Sale, Homes For Sale
  Intero Real Estate Services is one of the premier real estate brokerages. Find real estate, properties, homes for sale in Arizona, California, Colorado, Nevada and Texas.
• California Association of Realtors
  The California Association of Realtors is one of the largest state trade organizations in the United States, with more than 165,000 members dedicated to the advancement of professionalism in real estate.

OK, with that being said, how did Morgan Hill’s public schools stack up?

Of the ten public elementary schools none scored below an API of 723 (1) and five of the ten achieved scores of 794 (1) to over a commendable 801 – 881(4). Terrific!!

Along with extensive city youth recreation programs – including Pony Baseball, Pop Warner Football, soccer, swimming, and SVCA basketball – complimenting our many parks and recreation facilities, our Morgan Hill schools rock too!!

Ask yourself one question:

“How valuable is my kid’s growing up environment?”

If your answer is what mine is Morgan Hill can be “THE” answer!  Raise your children in the wholesome family oriented community of Morgan Hill!  We did and have no regrets and many fond memories.

Where do my kids and their kids (my grandchildren) live?

Morgan Hill, silly!

Buyers often contact us – looking for a new home.  With the limited land available in Silicon Valley – most folks start off with a home that could be 30, 40, or even 50 or more years old.  And even though – these older homes might be extensively remodeled and in wonderful condition – the dream of owning a brand new – never lived in – home remains.

In Los Altos – there are approximately 10,000 homes and the median age of Los Altos homes on the market is currently 47 years.  So what’s new in Los Altos?   What is available on the market that is brand new?

Currently – there are 11 new homes on the market.

Here’s the range of new single family homes in Los Altos -

High End: A brand new home with over 6700 sq feet of living space – 6 bedrooms, 4+ bathrooms, a wine cellar, and full basement on a 14,000+ sq ft lot.  List price:  $4,995,000.

Low End: A brand new home with 4000 square feet of living space – 4 bedrooms, 2 ½ bathrooms, and a basement on a 7000 sq foot lot.  This home is located on a smaller corner lot on the edge of a busy street.  On a larger lot on a quieter street – I think this home would sell for significantly more than its current list price of $1,599,000.

Just the Dirt - Note that there is one more brand new “single family” home listed for sale in Los Altos for the bargain price of only $998,888.   On closer inspection – though – it turns out that this home is actually just a nice piece of dirt.  It’s a 6750 square foot lot with approved plans and permits for a 4 bedroom, 2 ½ bath home.   You supply the general contractor, materials, labor and construction budget to build your new dream home.

The median new home on the market in Los Altos is listed for $3.2 million and features 5 bedrooms and 4+ bathrooms.  It has 3557 sq feet of living space on a lot that is approximately a quarter acre.    The spec builders in Los Altos are making these new houses “big” with lots of amenities like

• wine cellars, outdoor kitchens and dedicated theater rooms
• basement “suites” for the extended family (a place for your teenagers)
• decadent master suites with huge master baths and walk-in closets bigger than my first apartment
• great rooms combining a gourmet kitchen, walk-in pantry and family room
• dedicated offices with built in bookcases and enough high tech wiring to make your favorite geek grin

In Los Altos, I expect to see a trend in the coming years towards slightly smaller single-level homes with an ongoing emphasis on special amenities and high end finishes.   We need our toys.

If you’re not quite ready to buy or build your brand new dream home in Los Altos, here’s a market snapshot of the overall Los Altos real estate market for single family homes:

More and more real estate business is originating from the Internet, according to a survey released this week by the California Association of REALTORS®.

The survey shows that 55 percent of California realtors’ business on average originated from the Internet. That’s up from 48 percent last year and 24 percent five years ago.

The survey also shows that 46 percent of realtors use a social networking Web site to “stay on top of trends in their business,” with LinkedIn ranking the most popular among the sites.

"With the top technology challenges in recent years for REALTORS® stemming from either keeping up with or reducing the amount of e-mail, many have managed to tackle those challenges head-on by integrating the tools necessary to be able to respond quicker and while out in the field," says C.A.R. President James Liptak.

C.A.R. released the survey results this week at the opening session for Tech Tuesday.

Here are a few other key findings from the C.A.R. survey:

• 45 percent of realtors say they use a laptop or tablet computer in the field. Last year, 33 percent said they did.
• 70 percent of realtors promote their listings on search engines and classified Web sites. Yahoo Real Estate is the top site used. 

For more information, click here.

See Also

• Intero Real Estate Services- Find Real Estate, Property For Sale, Homes For Sale
  Intero Real Estate Services is one of the premier real estate brokerages. Find real estate, properties, homes for sale in Arizona, California, Colorado, Nevada and Texas.
• California Association of Realtors
  The CALIFORNIA ASSOCIATION OF REALTORS® is one of the largest state trade organizations in the United States, with more than 165,000 members dedicated to the advancement of professionalism in real estate.

It would seem, however, that the time for reevaluation in priorities might be upon us. It might be time to stop looking at a home purchase not so much as vehicle for quick financial gain, but as an investment in the happiness and security of you and your family. It’s time to start, once again, thinking of it as your home.

For the past decade or so, it’s been the pattern of many Americans to buy a home, wait for its value to increase and, about 7 years later, move onward and upward, or simply to cash in on the equity that one’s home had amassed. While home sales have recovered somewhat from their low points last year, prices are down significantly (in California, for example, the median home price for a single family home is down 16.9% from this time last year), and may take a some time to return to the levels that we saw in the early part of the 2000s.

Your home will still increase in value, most assuredly, but this increase will happen at a far more gradual pace than it has in recent years. Given this reality, making sure that you buy a home in which you will be happy and comfortable is more important than ever.

Remember, unless you are an investor, it’s likely you’ll live in the home for at least ten years. As such, you’ll want to ensure that it’s one to which you’ll be happy coming home. One in which you’ll be comfortable. One in which you’ll want to raise your family. Perhaps the most valuable things aren’t the square footage and lavishness of a house, but the things that speak to our core values. Providing stability. A greater sense of self-esteem. Pride of ownership. These things are the cornerstones of our very society, and the ones to which we should consider returning.

Talk to your Intero agent. Talk to your financial advisor. Talk to them about making the greatest investment you’ll ever make: an investment in your health, security and overall happiness.

Intero Foundation donates more than $100,000

The Intero Foundation recently donated more than $100,000 to non-profits that benefit children in the Bay Area.

Among the recipients were Rape Trauma Services in Burlingame, Family Connections in San Carlos and Morgan Hill’s Learning and Loving Center, which provides educational opportunities and outreach to immigrant women and their children in south Santa Clara County.

As part of the donations last week, Gino Blefari presented a check to the Lincoln High School Foundation to support a school program, Future Vision Mentoring Program, which helps students in crisis.

The Intero Foundation’s mission is to create awareness in the community by demonstrating good corporate citizenship and to impact the growth and well being of children.

See Also

• Intero Real Estate Services- Find Real Estate, Property For Sale, Homes For Sale
  Intero Real Estate Services is one of the premier real estate brokerages. Find real estate, properties, homes for sale in Arizona, California, Colorado, Nevada and Texas.
• Intero Foundation
  The Intero Foundation is dedicated to helping children in need.