Eric Murrietta

Hello,

It is finally here...2009! And with the excitement of a new year, we can focus our eyes on what lies ahead and forget what came before in the past. If you watched any of the television coverage on New Year's Eve and even the bowl games New Years Day, then you no doubt heard countless statements of relief that 2008 was behind us. I am a realist, so I do know the economy was the worst we have seen in over a half a century and we do not hope to see a repeat of this for centuries to come, however some amazing things transpired this year.

• Michael Phelps and the Olympics - In a stunning show, the opening ceremonies in Beijing, lit the night sky in what may never be duplicated in our lifetimes. Michael Phelps turned in a performance that won't be matched in our lifetimes by earning 8 Olympic gold medals.

• Barack Obama was Elected President ­- For all the changes in the US, nobody thought 50 years ago that we as a nation would elect a minority to the highest ranking office. However, (whether you voted for or against) you can't forget to realize the enormity of the election. It will resonate in history books for decades to come. I just wait for the day when electing a minority isn't something that resonates but something that just happens.

• The Dark Knight - It quickly became the 2^nd highest grossing movie of all time, trailing only Titanic. To its credit, the movie plays and toys with the idea of utter chaos in a world where we try to control the outcomes. A fantastic mirror image of what transpires at times in our daily lives.

• Giants upset the Patriots - A bid for perfection, destroyed by the underdog. Two stories, one path, different outcomes. They both fought to get there and they both wanted to win, but in true form, perfection is hard to reach and those who are doubted rise to the occasion. We may never be perfect, like the Patriots, but our failure may be another's greatest success and vice versa. It is what we do with failure and success that defines us.

• Mortgage Rates dropped to Unprecedented Lows - That's right, if you stuck your head in the sand because of the economy and the "woe is me" mentality, then perhaps you missed the opportunity to provide your customer's with fixed rates in the sub 5's to the low 5's. Things always turn around, it just depends on if you are willing to fight through the muck to see the turn.

• Nine Years in and counting - Remember Y2K and the hysteria that abounded in 1999. Well, here we are a decade later and experiencing the highs and lows of life. We have seen electric cars take center stage, LCD TV's with crystal clear pictures, touch-screen phones, enormous real estate profits, and enormous real estate losses. We have been attacked by terrorists, battled for freedom and democracy, seen the stock market tumble, experienced its tremendous gains. We have paid $4.10 for gas and $.99 for gas. We have gained loved ones and lost loved ones. Most importantly, we have lived.

I hope that 2009 is a year in which you will live! Our time is short so we should do our best to live it to the fullest each day and remember all the great things that have happened.

As always - I would love to help anyone interested in learning about the financing opportunities available for their first new home or their 10^th home. Either way, it has been my pleasure to meet each of you this year and I look forward to continuing in this business with you throughout 2009.

According to an article on bloomberg.com, Phoenix led the nation in home price decline.

Quick points to consider from the article.

• 40% increase in price from 4th quarter of 2004 to 4th quarter of 2005.
• From 4th quarter of 2005 until the most recent quarter home prices have dropped by 40%.
• Median Price of a home in Phoenix is $185,100, 28% lower than last year.
• Home Sales rose 49% from last year in Phoenix.
• Overall US Sales down 7.7% from last year.

What's the most important statistic from the article listed above? It all depends on how you look at it. I see that number 4 is an exciting number. There is 50% more business this past quarter than at the same time last year. That is good news and if buyers were smart, they would see that if they want to take advantage of the foreclosures/lender owned properties and if they wanted to take advantage of great rates, they would act sooner rather than later. Once the lender owned properties are gone and we reach a stable market, we will be back to even supply and demand and therefore not as many deals will be available.

Always take the positive out of it. Find those buyers and set them up for the best of home buying experiences.

I hate to be the bearer of GOOD NEWS...but rates are really exciting. Think about it...a 30 yr fixed rate for less than 5%, those have to be some of the best rates in over a quarter century. Case in point - Read this USA Today article: http://www.usatoday.com/money/economy/housing/2008-12-18-mortgage-rates_N.htm .

This week some cool things happened:

1. President Bush had a shoe thrown at him: If you saw the footage, then you would see that he stayed relatively calm considering. I think you send a pretty strong message when you take your shoe off and throw it at someone, then again, you may just be crazy. I am sure there is some sort of significance that I am missing but either way it was a cool story. You can even play a game where you throw a shoe at Bush. Google it and you will find it.
2. It Rained: I loved it! Sure it was tough to wake up in the morning (though how you could sleep with rates like these) but the weather was beautiful. I can only hope that the rain comes again and that AZ wakes up to blue skies on Christmas morning.
3. Bailout for Automaker to Happen: I jumped the gun, or rather the Feds thought better against not throwing money at the automakers. I mean, will it ever end. I guess only time will tell. Time heals all wounds.

I just hope that everyone has a very Merry Christmas and Happy Holiday Season. Spend the time with family, be with the ones you love and enjoy each moment. And if you want to find out if taking advantage of these rates makes sense, call me. I would be happy to help. I will work when no one else wants to just for you.

Fed decided to cut rates to between 0 and .25% for the overnight fed funds rate.

What makes this so unique is that it hasn't really happened before. You can read the full story from the AP regarding the rate cut. I would be remiss to say that when the first rate cut happened in late 2006, I was like a kid in a candy store, overcome with excitement. Now as I see what transpired since that time, I kind of wish that they didn't have to cut rates. It meant things were going the wrong way and the wrong way all too fast.

Fast forward to today and all I am left with is a sour taste in my mouth. I hope that this cut helps in the long run. We all need a bit of relief as we move through the remainder of 2008. I will keep everyone posted as to how this will affect long term mortgage rates. Not much as happened initially but we will see what happens over the next couple of days.

Want to spread Holiday cheer? - Make sure you ..."sing loud for all to hear!!!" Or you could pass on the news regarding rates!!!

Not only are homes on sale - in some cases 40-50% off, but rates are making homes even more affordable. It is like Christy Walker with Remax told me this week. "If you went shopping and things were on sale for 40% you wouldn't hesitate." So what are we waiting for???

Spread the good news that rates are low and for those that are really savvy, get it done in the next week and you could skip your first payment in February maybe even January. Talk about early Christmas present.

Top three topics for the week:

•1) Automakers bid for Bailout denied (http://www.bloomberg.com/apps/news?pid=20601170&refer=home&sid=ai5KpbywxqiQ) - I guess the government realized they couldn't keep throwing money at stuff to fix the problem. I am by no means an economic expert but they threw a ton of money in some other directions and that hasn't seemed to have quite the positive impact they hoped for. I do not hope these three auto makers go bankrupt because that could just mean more unemployment and loss of jobs and that is a scary thought.

•2) Suns make Blockbuster Trade - Whenever they throw the word blockbuster around, it seems to carry more weight but the trades are usually a bust. Even still the move to release Raja Bell and Boris Diaw for Jason Richardson and Jarred Dudley, seems to initially be a good move. Who knows how it will turn out, but Jason Richardson is a good basketball player and we Phoenix people, desperately want our Suns to be relevant. Let's just hope that Amare grows up quickly because he may be the next casualty if he doesn't figure out how to be #1 and make everybody else better.

•3) AZ Union 92 Team wins Silverstick - That's right. The boys got it done last weekend in Vegas and I couldn't be prouder. It was nothing I did, they did all the work but they got it done. You can check out the link and story at www.arizonahockeyunion.com . The team picture is first on our website. In just over a month it will be off to Canada for a tournament against some really great competition.

Keep it going and start those plans for next year. As I have heard: "He who fails to plan, plans to fail." Make sure that '09 is even better than '08.