Jeff Engle EnglePropertiesOnline

Hi Neighbors,

Relocation.com is reporting that more people are moving for positive reasons:

People have gone back to moving in hopes it will improve their lives rather than moving to escape foreclosure or other aspects of the economic crisis, according to a survey of recent movers released this month by Relocation.com.

In the June survey, nearly 42 percent said they were in the process of buying a home or planning to buy one. Poll participants said their reason for moving was:

• To live in a bigger or better home (26 percent).
• To live in a better neighborhood or area (24 percent).
• To be closer to family or friends (12 percent).
• To live in an area with a lower cost of living (9 percent).
• To accommodate a change in marital status (6 percent).

Moving because of school, job loss, retirement, or foreclosure each generated 3 percent or less.

Responses to this survey are substantially different from the responses to a similar survey in March, when 41 percent said the recession was, at least partially, driving their move.

Source: Relocation.com (08/06/2009)

This is positive news on the overall environment.

Jeff
Neighborly Realty

Hi Neighbors,

The USA Today reports FHA loans have made a dramatic comeback over the past year or so.

About 25 percent of all new mortgages are backed by the Federal Housing Administration in what will probably be the busiest year yet for the federal agency.

Applications for FHA mortgages rose 50 percent from last October through mid-August 2009 and approvals for purchases, refinancings, and reverse mortgages rose 70 percent to 1.67 million.

FHA loans "are one of the most important sources in this market," says Mark Zandi of Moody's Economy.com. "Without FHA, the housing slide would be much more severe. We wouldn't be talking about a recovery now. We'd still be talking about a crash."

Some analysts are concerned about the risk the FHA has taken on, but others point out that borrowers with FHA-insured loans now have an average credit score of 690, compared to 630 two years ago. Borrowers with a credit score below 500 must come up with a 10 percent down payment.

Source: USA Today, Stephanie Armour (09/02/2009)

FHA has a full suite of loan products that include the EEM Energy Efficient Mortgage. Call me and we can talk about getting into your home with as little as 3.5% down!

Jeff
Neighborly Realty

With the recent fires close by in Auburn California that destroyed 63 homes a thought a word about wildfire would be in order. What is eye-opening is that this is not a real rural area, but made up of suburban homes and businesses. Many of the homes did back up to a preserve or natural area.

Here in Lincoln, a friendly shepherd has had his goats and sheep graze off a lot of public and private land. One herd of over 800 goats and sheep are currently grazing and eating 1.5 tons of grass and brush a day. That's a LOT of potential fuel for fires removed. His herds graze each area for a few days, and actually give us the opportunity to get native plants a chance to grow.

Plus we are getting our open spaces fertilized so next spring should be great for wild flowers, bushes and grasses. Already many of the bushes that have been trimmed a couple of weeks ago have sprouted lots of new growth.

In a related article, the National Association of Realtors provides this information about wildfires:

As hot, dry weather heats up the wildfire season, the non-profit Institute for Business & Home Safety is making available a nine-region-specific wildfire property protection guide.

The free guide is downloadable in PDF format, includes advice for retrofitting a home to make to make it more fire resistant.

"We have seen the benefits of effective preparation time and again. On the news, you'll see homes left standing, when others right near them burned. This isn't luck; this is because the surviving home's owner did the right things to make their home more fire resistant," says IBHS CEO Julie Rochman.

Source: Institute for Business & Home Safety (09/02/2009)

Also see this article in the Lincoln News Messenger about the goats and sheep. and this article in the Auburn Journal about the fire.

Remember, the fire season is just starting! Be careful and keep an eye out.

Jeff
Neighborly Realty

September 2009 Market Update for Placer County

Hi Neighbors,

Another discussion of the current market in Placer County.

There are currently 2060 homes on the market in Placer County as listed on MLS (Single Family Detached Homes). This number has stayed pretty constant throughout the summer. 713 or 35% have been on the market over 90 days.

7% of the total inventory (148 homes of the 2060) are REO (Bank Owned) homes , 32 or 16% of the REO have been on the market for over 90 days. 46% of the homes (944) are short sales and 1039 are organic non-distressed sales.

342 homes have been sold in the past 30 days (August). 112 of these were REO homes or 33% of the total homes sold for the month.. Looking at the under $200,000 market 18 of 36 homes were REO (50%). 52 of the 342 were Short Sales (15%). 178 of the 342 homes were Organic sales that were non-distressed sales (52%).

Bottom Line

So, while REO homes only make up 7% of the market, they account for 33% of the sales overall and 50% of the sales for the $200,000 and under homes. This is why you see many REO properties sell in a few weeks or a month after the initial listing. Short Sales account for 46% of the market but only made up 15% of the sales. Organic non-distressed sales make up 50% of the market and 52% of the sales.

Distressed sales are currently making up 48% of the sales and are still setting the prices overall. Virtually any home being sold now is being impacted by REO and Short Sales.

Jeff
Neighborly Realty

Hi Neighbors,

Here's a report from the Pittsburgh Post-Gazette. "Long-term mortgage rates remain near record lows, despite rising slightly this week. Freddie Mac reported that average interest on a 30-year fixed loan was 5.14 percent, up from 5.12 percent a week ago.

Rates for 15-year home loans, meanwhile, rose to 4.58 percent from 4.56 percent last week."

Source: Pittsburgh Post-Gazette (08/28/09)

Good news for home owners getting a new mortgage or planning to re-fi.

Jeff
Neighborly Realty