Home Prices Expected to Fall Further

Fannie Mae’s Chief Risk Officer Enrico Dallavecchia predicted that housing prices will decline by 2 percent on average this year and 4 percent next year.The declines are the result of continuing mortgage delinquencies, tighter borrowing standards, and the record levels of inventories of unsold homes.Adding to the trouble, Dallavecchia said, is that many borrowers with adjustable-rate mortgages are facing rising monthly payments, which could drive them into foreclosure. "This could have a cascading effect in the market," he said.

Courtesy: http://www.realtor.org

Don't Let an Empty House Jeopardize a Sale

More home sellers are leaving their properties completely unfurnished while they sit on the market. Some argue that an empty house lets prospective buyers more easily picture their belongings in the space, take measurements, and examine recent improvements. However, real estate brokers warn that empty homes must be well maintained, as overgrown lawns could lead buyers to wonder what interior components have been neglected as well. They recommend that sellers keep vacant dwellings clean and in top-notch condition, as flaws cannot be camouflaged by furniture. Some buyers seek out empty homes because they believe the owner is desperate to make a sale. Sellers unable to generate buyer interest are urged to bring in some furnishings to create a lived-in look.

Courtesy: http://www.realtor.org

Dale Warfel offers real estate workshop on September 18

Mark Your Calendar - Real Estate Workshop - September 18, 2007!On Tuesday, September 18, I will be hosting the first of several real estate workshops in Santa Clara County. This workshop features industry leaders in the areas of finance and credit, risk management, title and escrow, tax planning, and financial and estate planning. Whether you are a first time homebuyer, a homeowner, or an investor, this workshop has something for you.The workshop will be held in the South San Jose area, from 7:00 - 9:00pm (registration starts at 6:30pm). For more information, call or e-mail me. To register, call the Real Estate Workshop Registration and Information Hotline at (408) 694-9806. Our sponsors are covering the cost of the workshop, so it is FREE for you!

Market Update – July 2007

There have been significant recent financial shifts that are affecting borrowers' ability to obtain credit. In a recent article on www.Bloomberg.com, banks such as IndyMac and National City have made "very major changes" to the loan qualifying criteria, and in the rates customers are paying. National City Corp. said it will stop accepting home equity line applications. In the past 2 weeks, Jumbo Loan rates have jumped more than 2 points. Much of the recent instability in the interest rates has to to do with the under performance of mortgage backed securities. This has led to a number of lenders being in financial crisis or, worse yet, closing their doors. There are still programs available for buyers, but the days of loose credit restrictions, stated income/stated asset loans, and 100% financing may be more difficult to find in the near to medium term.The inventory of homes active on the market topped, continues to remain above 6,000 listings in July. For single family homes, the hottest markets in July include Campbell (75 active/283 closed), Cupertino (64 active/434 closed), Los Altos (28 active/33 closed), Mountain View (20 active/26 closed), and Palo Alto (39 active/41 closed). On the other hand, San Jose (2,736 active/411 sold), Morgan Hill (285 active/30 closed), and Gilroy (405 active/40 closed) continue to show selling trends favoring buyers. In San Jose, properties in communities such as Almaden Valley, Cambrian, and Willow Glen show stronger sales, whereas homes in Alum Rock and South San Jose are selling much more slowly

Mortgage-Rate Drop Is Good News for Home Buyers

Freddie Mac reports a modest decline in mortgage rates during the week ended Aug. 2, with the 30-year fixed rate falling to a one-month low of 6.68 percent from 6.69 percent. Interest on 15-year fixed loans, meanwhile, dropped to 6.32 percent from 6.37 percent. The five-year adjustable mortgage rate slipped to 6.29 percent from 6.30 percent, and the one-year ARM slid to 5.59 percent from 5.69 percent. Freddie Mac chief economist Frank Nothaft attributes the decrease in borrowing costs to an increase in investors snapping up Treasury securities as they move away from mortgage-backed bonds.

Courtesy: http://www.realtor.org

Home Gyms Are Latest Must-Have Amenity

Home gyms are the latest must-have amenity. One-third of new and potential home buyers say a home exercise room is either essential or desirable, according to the National Association of Home Builders.WCI, a developer of luxury homes, began noticing the shift in luxury home design to more lifestyle-driven floor plans in the 1990s, as baby boomers began demanding health-related amenities such as home gyms, spas and meditation rooms aimed at helping them live longer, says Gabe Pasquale, chief marketing officer of the company’s Northeast region.Ninety percent of the custom homes designed by Abramson Teiger Architects in California include home gyms. Most are about the size of a regular bedroom and have room for a treadmill or an elliptical trainer, plus a multifunctional home-gym machine.

Home Buyers’ Top Preferences

Here is a news report from www.realtor.org:

More home buyers want extra garage space with two or more spaces in their homes, according to the “2007 Profile of Buyers’ Home Feature Preferences,” which was released Tuesday by the NATIONAL ASSOCIATION OF REALTORS®. NAR's latest home buyer preference survey, which reports responses from buyers who purchased homes in 2006, asks buyers about the importance of 75 home features and room types. Other priorities for today’s home buyers include:
Air conditioning: three out of every four respondents surveyed ranked this as “very important.”
Master bedroom walk-in closet: 53 percent of buyers rated this as an important feature in a home.
Hardwood floors and granite countertops: each gained 7 percentage points in popularity since the 2004 survey; 28 percent and 23 percent, respectively, of buyers labeled these home features as very important.
Cable/satellite TV-ready: 46 percent, a growth of 6 percentage points from the 2004 survey, said this was important.
Energy efficiency: especially among new-home buyers — 65 percent of new-home buyers said energy efficiency home features are very important compared to 39 percent for buyers of existing homes.
Home buyers also said they're willing to pay more for these extras. For example, 65 percent of buyers said they would be willing to pay a median $1,880 extra for a home with central air conditioning. One out of four buyers also was willing to pay a median of $4,760 more for waterfront property.

Dale offers perfect property for first-time home buyers

Here is an offering from San Jose Dale warfel, which he claims is perfect for “first-time” home buyers. Here are the details”

3594 Payne Avenue, #9, San Jose (Condo)
3 Bedrooms / 2 Bathrooms / Approx. 1080 Sq. Ft.
Remodeled Kitchen with Maple/Granite Slab Countertops/New Stainless Steel Appliances (Refrigerator, Dishwasher, Smooth Top Range, Built-in Microwave)/Cherrywood Laminate Flooring/Recessed Lighting/Crown Molding
Remodeled Baths with Maple/Granite/Toilets/New Flooring
New Paint, New Carpet Throughout
Price Reduced to $449,000

Note:
1. Seller will credit buyers 12 months Homeowners Dues for a full price offer.
2. Seller will consider a Lease Option Purchase.

For more info, go to www.3594PayneAve.info or http://www.circlepix.com/RCYGJF (virtual tour).

Harry Potter comes to Willow Glen

Not even the early leak of the final Harry Potter book could put a damper on the excitement at Hicklebee’s bookstore on Saturday morning. Children started lining up before the store was set to open at 6:59 a.m., arriving in costume while their parents came with coffee to brave the early morning hours and be first in line for the last Harry Potter book.
With a line stretching from the back of the bookstore up Minnesota all the way to Lincoln Avenue, children and adults alike anxiously waited for the 7 a.m. hour to roll around so they could enter Hicklebee’s, which was transformed into a Harry Potter wonderland. Balloons and banners made the back entrance of Hicklebee’s almost unrecognizable. With tents for wizard dueling and Phoenix tail feather wand, the magic of Hogworts could be felt in the air. The wizard dueling was a big hit throughout the morning. There was always a line of children waiting for their chance to show off their dueling skills. With their backs to one another, the children had to flash their choice of colored paddles in an effort to defeat the opposing wizard in a rock-paper-scissor fashion. The Hicklebee’s staff was there in full costume to supervise and make sure all the wizard’s spells were cast in good nature and none actually hurt anyone. Hagrid also showed up to make the morning special. He apparently came all the way from Hogwarts because he looked exactly like the animal keeper for the school. However, probably because he was humongous, he stayed inside the bookstore with a microphone asking Harry Potter trivia questions to various groups of children, and a few adults. Winners received sorcerers’ stones for their correct answers. The Hicklebee’s staff sat next to books stacked sky high in an effort to get everyone through the line quickly. The children were free to participate in games, trivia and Harry Potter scavenger hunts, while the parents waited in line for their copy of the eagerly anticipated book.The consensus seemed clear. The release of “Harry Potter and the Deathly Hallows” was bittersweet.
Courtesy: http://www.willowglentimes.com/

Dale Warfel to hold Real estate Workshop series in September

Here is some information from San Jose realtor Dale Warfel about his forthcoming Real estate Workshop series. Dale is a realtor specializing in properties in Willow Glen and Almaden valley, with several years of successful experience behind him.

“Starting in September, we will be holding a series of Real Estate Workshops, where we will be presenting information on all aspects of real estate ownership. Though the information will emphasize the benefits of acquiring real estate for personal use and investments, issues such as estate planning, financing, tax benefits, ways to hold title, and other topics will be presented. The first seminar is scheduled for September 18 in the South San Jose area, with other workshops following in other localities in Santa Clara County.”

Watch this blog for more details on the workshop series………..