But has the attention that’s been shone on the tax credit been keeping us all from focusing on the REAL stars of the real estate show? Is there something else that ought to have everyone’s tongues wagging?

In my opinion, YES.

Mortgage rates, my friends, are what should be driving traffic into the real estate market and are what will give today’s homebuyers (those who qualify for the tax credit and who don’t) a real incentive to buy.

Look at it this way: when given a credit of $8000, how will most people spend it? Will they save it? Likely not. Will it go toward bills? Maybe. The instinct for most Americans, however, is to spend. This is great for bolstering the economy, but from a personal perspective, it doesn’t help all that much.

Have you ever stopped to consider how much just a percentage point in a mortgage rate can save you over the life of a loan?

For the week ending 11/12/2009, Freddie Mac announced that mortgage rates had fallen to a staggering 4.91%. Not long ago, lenders were delighted to be able to offer a rate of 6.0% (still not anything at which to turn up one’s nose). In a side-by-side comparison, assuming a loan amount of $400,000, a mortgage with a 6% rate will feature a monthly payment of about $2398. The same mortgage at a rate of 4.91% has a monthly payment of $2125. That’s a savings of a little over $270 per month. Nothing to sneeze at, to be sure. Here’s where it gets really exciting, though. Over the course of a 30-year loan, that savings adds up to more than $98,000.

 Now THAT is something to get excited about.

Another great benefit of rates falling to record lows is that they give buyers more purchasing power. Less money going toward interest translates into more house for your money. When combined with home prices that, across the nation, are at levels not seen since the early 2000s, a buyer’s purchasing power is very strong, indeed.

If you’re unsure of the amount for which you might qualify, talk to your Intero agent about giving you a referral to an Intero Mortgage loan officer.

The Homebuyer Tax Credit is certainly newsworthy. But it shouldn’t be stealing center stage from the real stars. Mortgage rates and their record low levels are what should be making headlines.

1.  It’s a Great Place for a Walk!

Los Altos is a “walker-friendly” town with miles of quiet residential streets to explore, as well as several great parks. Just remember to bring a flashlight – with the scarcity of street lights in Los Altos, it can be hard to see!

2. A Little Shopping is always Fun
A little exercise can make a dog hungry! Check out the 5 Paw Bakery (315 Main Street)– where they bake such canine culinary confections as birthday cakes, yogurt and carob-dipped cookies and savory biscuits.

3. Coffee and Canines
Catch up with dog and human friends alike at one of the coffee shops in Los Altos. You’ll almost always see at least one dog sharing the love outside Starbucks (296 Main Street & 643 Los Altos Rancho), Peets (367 State Street) and Main Street Café (134 Main Street).

4. Fine Doggie Dining
When it’s time for more than a cup of coffee – enjoy a great meal on a dog-friendly patio.  The staff will even bring a bowl of water for your canine friends!

• Fiesta Vallarta (301 State Street),
• Rick’s Café (205 State Street
• Brian’s Restaurant (680 Los Altos Rancho)

5. Ouchies Fixed 24 x 7
The Adobe Animal Hospital is open 7 days a week, 24 hours per day, providing regular and emergency vet services for dogs and other pets. From regular preventative check-ups to fast attention during an unexpected emergency – it’s reassuring to be able to go to one place.  Ask someone in Los Altos which vet they use – and chances are – they’ll say Adobe.

6. Buff and Fluff
The staff at the Barking Lot (467 First Street) makes sure that Fido and Princess look sharp for their strolls through the Village. From nail clipping to baths, clips and coifs – this is the place for the latest Los Altos canine look!

7. Hanging out at Home
Some days – it’s great to just hang around home. The median lot size in Los Altos is just about a quarter acre – bigger than the average lot size in Palo Alto and Mountain View.  The kids and the dog need lots of room to romp!

8. Room to Run
Los Altos does not yet have its own dog park – but it is considering working with the City of Cupertino and Santa Clara county to build one. In the meantime- check out the nearby dog parks in Mountain View and Palo Alto  (Mountain
View Shoreline Dog Park) and Palo Alto (Mitchell Dog Park).

9. Need a SPaw Day?
When your pooch needs pampering – it’s time for a short drive to the Pooch Hotel in Sunnyvale. Here, your favorite companion can enjoy the swim facilities, personal trainers, aromatherapy baths, facials, massages, and pawdicures.

10. Certified Canine Design & Construction
John Hammerschmidt of Hammerschmidt Construction in Los Altos jokingly refers to himself as a “Certified Canine Designer”.  Having completed multiple Los Altos remodels with custom canine features,  John is well-versed in designing fido-friendly features including dog washes, dog runs and landscaping, custom breed-specific tiling, and scratch-resistant flooring.

11. Ms. Manners
Does your dog need a visit from Ms. Manners?  Maybe it’s time for obedience classes. Some the best local classes are taught by the Deep Peninsula Dog Training Club at nearby Rengstorff Park.

12. Strut Your Stuff!
Since 1947, the Los Altos Kiwanis Club sponsors the Annual Los Altos Pet Parade on the Saturday following Mother’s Day each year. It features thousands of kids, their pets, and some very creative costumes!

1. Buyers looking for a home during the winter/holidays are generally more serious in their searches. Often these buyers have a very specific time frame and objective so their motivation is high.
2. The inventory of homes generally declines during the latter part of the year so there could be less competition for your home.
3. By selling now, a seller has the opportunity to be a non-contingent buyer during the spring when the inventory traditionally grows.
4. Some buyers have time constraints and will be highly motivated to purchase before the year’s end.
5. Buyers may have a break from work during the holidays and, consequently, may have more time to shop and preview homes.
6. Holiday decorations can make homes more appealing and attractive.
7. Because of the holidays, you can still be on the market but have the option to restrict showings during the peak holiday times.

No matter what time frame you may choose to list your home, be sure to consult with a qualified Intero Realtor to get sound counseling and advice.

Passed, not to mention greatly expanded.

Whether you’re in favor of or opposed to the credit, it’s now been made available to a host of Americans not included in the initial offering, so how can you take advantage of it? Let’s break it down, shall we?

The original tax credit, which was a part of the economic stimulus package put into effect in February 2009, was made available to first-time homebuyers (people who hadn’t owned a home for three or more years) and applied to home purchases that closed on or before November 30, 2009. With the passage of the expansion bill into law, that credit has been extended to purchases made by May 1, 2010 and that are closed prior to July 1, 2010 (that means escrow is closed, all papers signed and keys are in-hand on or before June 30th).

For first-time homebuyers, the credit amount, as it was in the original plan, remains at 10% of the purchase price, up to a maximum credit of $8,000. Originally, to be eligible for the credit, single (not married) purchasers could have an adjusted gross income (AGI) of no more than $75,000/year; married couples with an AGI of $150,000 or less were eligible. Under the new plan, singles with an AGI of up to $125,000 and married couples with an AGI of up to $225,000 are eligible.

For those of you who had previously been ineligible to claim the credit at all because you already owned a home, there may be good news for you. Under the new plan, homeowners who have lived in their homes for 5 consecutive years of the past 8 years are eligible to receive a credit toward a new home purchase. Meant to give a boost to “move-up” buyers, this credit amount can be 10% of the purchase price, up to $6,500. The income caps referenced above are the same.

If you’re a member of the Armed Services and were/will be deployed outside the United States for at least 90 days between December 31, 2008 – May 1, 2010, you may claim the credit until May 1, 2011 (with settlement all wrapped up before July 1, 2011).

One peculiarity of which it’s important to take note: even if you purchase a new home in 2010, you can claim the credit on your 2009 tax return. If you file for an extension of time to file your income taxes, or if you amend your already-filed 2009 tax return, you may include the tax credit (this would put the cash in your pocket much sooner than if you were to claim the credit on your 2010 tax return). Be sure, however, to take heed of the income limitations, as they apply to the year in which you claim the credit.

Finally, it’s important that you understand that if the purchase price of the home exceeds $800,000, no tax credit may be claimed, regardless of your income levels. The credit only applies to primary residences. Investment properties or vacation homes don’t qualify.

Whether the expansion and extension of this credit is the shot in the arm that the US Economy needs remains to be seen, but it’s here, it’s ready and, if you’re planning on purchasing a new home, you should most certainly take advantage of it. Talk to your Intero agent or consult your financial advisor to discuss how this affects YOU.

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!