First of Summer Update

Rates are moving south again! We’ve officially hit the lows of the 2011 on poor economic and employment reports. If you’ve been putting off a refinance, don’t wait. And, it is better than ever for home buyers with home values at a five-year low.

3% down, no Mortgage Insurance

Fannie Mae has a program for home buyers called Homepath, offering minimum down payments of 3% with no mortgage insurance, and no appraisal! This is for a new primary residence only, but they also allow 15% down for a rental property purchase. The program only applies to homes owned by Fannie Mae. Find out more at www.homepath.com

Reverse Mortgage News

Reverse loans aren’t only for refinancing…they are becoming a more popular way for seniors to buy a “retirement” home or new primary residence. I actually closed a reverse mortgage purchase loan for a client a few years ago, and I was told it was the first in California.

Depending on the buyers’ ages (and they must be 62) these loans will provide anywhere from 60% to 75% of the purchase price in a reverse loan. The buyer must provide the balance of purchase price in cash, typically from the sale of their existing residence. Assuming they own their home outright, or have a low-balance mortgage, this frees up cash for investment/liquidity, and eliminates the need to “qualify” for the payments associated with a new mortgage.
Best of all, the rates are as low as 4% fixed.

Bezerkeley

I visited my son Kenny in early May in Berkeley. He was there to present a paper at a conference in the School of Architecture. We had only a few days together, but we had a great time, and glorious weather. I’d forgotten how beautiful the UC Berkeley campus is, with the creek running through it, rolling lawns, huge old trees, and expansive views down to the Bay and beyond, to the skyline of downtown San Francisco.

Our first stop Sunday was the outdoor deck of the Paragon Café at the Claremont Resort for an afternoon cocktail and a view of San Francisco in the distance. Afterwards, we took a stroll at the Cesar Chavez State Park on the Bay. During our time Monday, Kenny preferred to hang out in coffee houses, studying and talking to students.



We had dinner Monday evening at an old favorite, ẦCộté, a charming tapas restaurant in the Oakland Rockridge district, on College Avenue. It felt a little like old home week for me, since I had visited Berkeley so often while Katie was in school there.

This was my first sighting of Kenny since last September, when he left for Europe for his graduate program. So far, he’s been to Cottbus and Berlin, Germany; Tallinn, Estonia; Lisbon, Portugal; Wroclaw, Poland, and London in-between. He’s been in each location for at least six weeks studying architecture at various universities participating in his program. He won’t be home until this September for his brother Drew’s wedding! Best Man...

Claremont Colleges

I’ve seen my daughter Katie, who lives in Ann Arbor, a number of times this spring around her visits here to Cali, most notably on her 27th birthday in April while she was out here with her team for water polo games in San Diego and Claremont. The Claremont campuses were wonderful to visit on a warm April Sunday. You sort of feel like you’re back East on an Ivy campus. Katie’s also been out to visit for Mothers’ Day and Memorial weekend. What a treat!

Local News


Sunset’s is still our favorite local haunt in Capo Beach. As the name implies, it has great sunset views and offers music and dancing every Thursday through Sunday. Walking distance from our home, we frequent it for happy hour, or after dinner and almost always run into friends there! They are hosting a special event this Saturday with music and dancing all day, a live band starting at 6:00 p.m. and a caribbean themed buffet with mojito and sangria bar. Join us! www.sunsetsbar.com

The California Wine festival at Doheny State Beach, held the end of April, was a great time as usual. They hosted even more wineries than last year’s event, more breweries, and the food selections were fantastic! We found a new local restaurant that was serving a killer salmon ceviche…the Next Door. Steve and I visited the restaurant last week and sampled the ceviche, and bacon wrapped dates stuffed with blue cheese. Yummy!

Steve continues to commute to Dallas regularly for consulting on Museum Tower, a high-rise luxury residential development. I’m planning to visit again soon, but in the meantime we have a camping trip planned to our favorite Beach campsite at El Capitan overlooking the Pacific with panoramic views. We take our kayak and bikes, and fill our days with exercise, reading, relaxing…and Steve paints. We are hoping for warm weather!

Hope your Memorial holiday weekend was wonderful! Happy June!

The Holidays are Over, and so are Record Low Rates!

Happy New Year! I hope everyone had a wonderful holiday season. Mine was filled with lots of fun as well as stress, but more about that later!

Interest rates have moved higher. The uptick in rates was very sudden in mid-November, and appears to be the result of improvement in the economy coupled with anticipated increasing inflation. There is also the spectre of higher yields demanded by investors to fund the burgeoning budget deficit.

Rates are up approximately 1/2% to 3/4% across the board…which is quite a jump. That said, we are still looking at fixed rates that should continue this year in the 4.25% to 5.25% range which are very low relative to the last 25+ years.
Home affordability index should continue to be high this year. Low home values coupled with rates in the low end of the range make this a great time to buy… and I encourage you, your children and friends to act in 2011.

This year may not be as attractive for refinancing...but much depends on your individual circumstances and current loan program/rate. If you are still on a 5/1 arm due to reset soon, now is the time to act.

We are still dealing with a massive number of foreclosures on the market with more to come at an accelerating pace. It is likely we’ll see more foreclosures in 2011 than 2010. In many markets, over one-third of all housing sales are distress sales, either houses that were in foreclosure, or short sales or some similar non-normal situation. This will continue to keep values down.




Can you identify the Waterfall?

My holidays started with a turkey feast in Ann Arbor with my daughter and her friends, followed by an intimate Thanksgiving Day at my mother’s home, and finally a third Turkey Fest Friday evening after Thanksgiving in Oceanside with Steve’s family. I was entirely turkeyed out!

December brought an extended visit from my daughter Katie, an engagement party for my son Drew and his fiancé Mary Grace, brief hospitalization of Steve in Colorado, (he’s fine now) a minor flood at my mother’s home, and finally Christmas!
We rang in the New Year with a group of old friends at the Balboa Yacht Club and had a blast, complete with slumber party afterwards.

Finally, the waterfall in Dana Point Harbor was flowing again with all the rains before and after Christmas, and I won a bet for a bottle of wine with a co-worker who took this picture of the falls and challenged me to identify it…not realizing I ride my bike in the harbor on a regular basis and have seen it myself during rainy periods!

I wish everyone a happy, healthy and prosperous 2011!

Home Values...Up or Down?

MDA DataQuick reported this week that Orange County median home prices jumped 8.1% in November. The median price was $432,250. However, the data indicates that pricier homes are selling more quickly than earlier this year which may be skewing the data. Many believe the tax credit is helping to fuel volume.

The $432,000 figure is still 33% lower than the June 2007 market peak.

Foreclosures and short sales are still huge factors. We had over 1800 new foreclosure notices files last month county-wide.

Nationwide, home prices declined by 9.8% in September 09 vs. September 08. Top-ranked states for depreciation are Nevada, Arizona, Florida, Michigan and Idaho.

Supporting the data reported earlier by the Real Estate Research Council appraisers, First American CoreLogic reports that the Los Angeles-Long Beach statistical area showed a 13.37% decrease in average values over the last twelve months ending September 09. On the brighter side, it is projected to increase by 7.92% in the next twelve months.