Lee Ginsburg

The headline reads Prices Up 20%.

What do these numbers mean? I am sorry to tell you, your home did not increase 20%. Buyers don't get scared off and sellers don't put your home on the market for 20% more than you paid last year.

These numbers are totally misleading. Prices are increasing in some areas and in some price points but not by 20%. Possibly 3-5%.

You can make numbers do whatever you want. First you need to know if the numbers are for Single Family homes or Condominiums or both. Then are they comparing it to the same month in a previous year or just the previous month. Are they talking about median price or average price. The Median price is the price that is in the middle; there are an equal number of transactions above and below. These numbers are very general. It is interesting and might give a slight indication as to the market in the country, in your state, in your city but Real Estate is very localized down to the neighborhood in the city. If you want to know the value of your home call your Real Estate consultant.

An example of Median prices:

220,000
350,000
480,000
490,000
510,000

AVER IS 410,000

MEDIAN =480,000

The numbers recently announced are really telling us that higher priced homes are beginning to sell. In San Mateo County 32% of Single Family homes sold in Feb. 2009 were under $500,000 that dropped drastically to 13% in 2010. Homes over $500,000 increased from 50% to 59% from Feb. 09 to Feb. 10, driving the median price up. Homes over $1,000,000 increased 11% from 17% to 28%.

The number that shocks me is that over 27% of all sales in the nine county Bay Area were paid in cash. That is with a median price of $354,000. Many people are taking money from the stock market and or IRA account and equity from their homes. Cash is King.

Please look at the numbers below. Inventory has decreased more than 10%, sales have increased almost 10% and the days on market has decreased a dramatic 25%. This is for single family homes listed on the MLS. All the numbers are indicating good things ahead.

San Mateo Cty. Inventory Sales DOM
Feb. 2009 1576 208 83
Feb. 2010 1346 228 64

http://www.dqnews.com/Articles/2010/News/California/Bay-Area/RRBay100318.aspx

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/03/19/BUG81CHVGJ.DTL

www.leesellsmore.com

A lot of positive bills, thoughts and activities have been happening on the Bay Area Real Estate Front. I have been trying to write this for a while. Each time I sit down to write there is more I have to add to it. That is a good problem. So exciting! Enjoy the Good News.

Home Buyer's Delight
You can still get the federal Home buyer credit of $8000 for the first time buyer or $6500 for the move up buyer. You must be in contract by the end of April and close by the end of June.
For additional information: http://www.irs.gov/newsroom/article/0,,id=204671,00.html

Because California Home Buyers are special Governor Schwarzenegger signed into law a State credit for home buyers. I personally think this program is great. It helps many people purchase their first home and it puts people to work. A Win-Win!!!
Under the provisions, the bill:

• Provides a 5% tax credit, up to a $10,000 limit, to all buyers of new, never-occupied homes.
• Provides a 5% tax credit, up to a $10,000 limit, to first-time buyers of existing homes.
• Sets aside $100 million for each program, for a total of $200 million.
• Requires buyers to close escrow between May 1 and Dec. 31 to qualify. New-home buyers have until Dec. 31 to sign a purchase contract, and then must close escrow by Aug. 16, 2011.
• Requires buyers to live in the home for at least two years.
• Provides for the tax credit to be paid in thirds over a three-year period.
• Sets no income limitations on buyers.
• Requires buyers to repay the tax if they fail to live in the home for two years or fail to close escrow on a new home by Aug. 16, 2011.

For additional information: http://gov.ca.gov/ htp://www.mercurynews.com/news/ci_14758523?nclick_check=1

Bay Area Home prices increase 20%
The number of home sales in the 9 County Bay Area were down for Feb. 2010 as compared to 2009 but the median home price increased more than 20%. I wish I can tell you that your home went up 20%. What I can say is that the higher priced homes are beginning to sell after months of being stagnant.
For more details:
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/03/19/BUG81CHVGJ.DTL

Having trouble making payments? Have no fear help is finally on the way.

Bank of America has announced a program for a select group of Countrywide loans where they will forgive the principal. Yea! Let's hope others will follow.
Please click on the link for the details. http://www.bankrate.com/finance/mortgages/bank-of-america-offers-home-loan-forgiveness-1.aspx

HAFA -Home Affordable Foreclosure Alternatives
The federal government has recently announced a new program to take effect April 1 2010. It will make the loan modification and short sale process easier and more systemized.
For additional information: http://www.realtor.org/government_affairs/short_sales_hafa

Just yesterday Obama announced and even newer program focusing on people owing more than their home is worth, people underemployed or unemployed. Stay tuned. The details of that are not out yet.

All these programs are great but my solution I think is more of a Win-Win. I propose to reduce the principal to market value and then the bank and owner should share in any equity build up when the home is sold. Under the Lee's Act, the homeowner stays in their home, we maintain home pricing by putting a stop the deluge of short sales and foreclosures and the banks and homeowners have a chance to make some money down the road. Everyone wins; Homeowner, bank and neighbors by stabilizing home prices and avoiding blight!

Tax relief for debt forgiveness
State Tax Relief for those who incurred debt forgiveness from a lender through the loss of their homes to foreclosures and or short sales is still up in the air. I believe the IRS is ok with it until 2014 but California is still up in the air. Governor Schwarzenegger is asking for a proposal before April 15.
Click the link for additional information. http://www.sacbee.com/2010/03/16/2609494/california-tax-relief-for-forgiven.html

Homeowner Savings
Are you considering purchasing a new appliance. The California's "Cash for Appliances" begins on Earth day, April 22, 2010 and runs only for a month. Purchase a new energy efficient appliance and recycle your old one and you are eligible to get up to $100 per appliance.
The program highlights are:
Purchases starting Apr 22, 2010 until May 23, 2010

· Claim within 30 days of purchase

· Claim by Jun 22, 2010

• May be combined with other rebates
• Must recycle existing appliance
• State resident

Click on the link for the real details. http://www.energy.ca.gov/recovery/energystar.html or http://www.kcra.com/cash-for-appliances/21363879/detail.html

.More Energy Efficient Savings:
Our federal government still offering a credit if you purchase an energy-efficient product or renewable energy system for your home. You may be eligible for a federal tax credit if you replace water heaters, solar energy, windows, doors, heating and cooling systems and more.
You will find an overview of the federal tax credits for energy efficiency by clicking on the link: http://www.energystar.gov/index.cfm?c=tax_credits.tx_index

Capital Gains Tax
If congress does not act Capital Gains tax will be increasing by 5% in 2011. They could propose to increase it even more. Due to the economy it is doubtful for them to maintain the current capital gains rate OF 15%. If you are considering selling an investment property today might be the right day. Call me toll free at 877-Lee-Sells. http://money.cnn.com/2010/02/01/pf/taxes/obama_budget_tax_changes/index.htm

So there you have it in a nut shell .Hope you found it helpful. Please, I encourage updates comments and questions and send it on to your friends.
If clicking on the links do not work please copy and paste.

Please visit me at www.leesellsmore.com

A lot of positive bills, thoughts and activities have been happening on the Bay Area Real Estate Front. I have been trying to write this for a while. Each time I sit down to write there is more I have to add to it. That is a good problem. So exciting! Enjoy the Good News.

Home Buyer's Delight
You can still get the federal Home Buyer Credit of $8000 for the first time buyer or $6500 for the move up buyer. You must be in contract by the end of April and close by the end of June.
For additional information: http://www.irs.gov/newsroom/article/0,,id=204671,00.html

Because California Home Buyers are special Governor Schwarzenegger signed into law a State credit for home buyers. I personally think this program is great. It helps many people purchase their first home and it puts people to work. A Win-Win!!!
Under the provisions, the bill:

• Provides a 5% tax credit, up to a $10,000 limit, to all buyers of new, never-occupied homes.
• Provides a 5% tax credit, up to a $10,000 limit, to first-time buyers of existing homes.
• Sets aside $100 million for each program, for a total of $200 million.
• Requires buyers to close escrow between May 1 and Dec. 31 to qualify. New-home buyers have until Dec. 31 to sign a purchase contract, and then must close escrow by Aug. 16, 2011.
• Requires buyers to live in the home for at least two years.
• Provides for the tax credit to be paid in thirds over a three-year period.
• Sets no income limitations on buyers.
• Requires buyers to repay the tax if they fail to live in the home for two years or fail to close escrow on a new home by Aug. 16, 2011.

For additional information: http://gov.ca.gov/ http://www.mercurynews.com/news/ci_14758523?nclick_check=1

Bay Area Home prices increase 20%
The number of home sales in the 9 County Bay Area were down for Feb. 2010 as compared to 2009 but the median home price increased more than 20%. I wish I can tell you that your home went up 20%. What I can say is that the higher priced homes are beginning to sell after months of being stagnant.
For more details:
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/03/19/BUG81CHVGJ.DTL

Having trouble making payments? Have no fear help is finally on the way.

Bank of America has announced a program for a select group of Countrywide loans where they will forgive the principal. Yea! Let's hope others will follow.
Please click on the link for the details. http://www.bankrate.com/finance/mortgages/bank-of-america-offers-home-loan-forgiveness-1.aspx

HAFA -Home Affordable Foreclosure Alternatives
The federal government has recently announced a new program to take effect April 1 2010. It will make the loan modification and short sale process easier and more systemized.
For additional information: http://www.realtor.org/government_affairs/short_sales_hafa

Just yesterday Obama announced and even newer program focusing on people owing more than their home is worth, people underemployed or unemployed. Stay tuned. The details of that are not out yet.

All these programs are great but my solution I think is more of a Win-Win. I propose to reduce the principal to market value and then the bank and owner should share in any equity build up when the home is sold. Under the Lee's Act, the homeowner stays in their home, we maintain home pricing by putting a stop the deluge of short sales and foreclosures and the banks and homeowners have a chance to make some money down the road. Everyone wins; Homeowner, bank and neighbors by stabilizing home prices and avoiding blight!

Tax Relief for Debt Forgiveness
State Tax Relief for those who incurred debt forgiveness from a lender through the loss of their homes to foreclosures and or short sales is still up in the air. I believe the IRS is ok with it until 2014 but California is still up in the air. Governor Schwarzenegger is asking for a proposal before April 15.
Click the link for additional information. http://www.sacbee.com/2010/03/16/2609494/california-tax-relief-for-forgiven.html

Homeowner Savings
Are you considering purchasing a new appliance. The California's "Cash for Appliances" begins on Earth day, April 22, 2010 and runs only for a month. Purchase a new energy efficient appliance and recycle your old one and you are eligible to get up to $100 per appliance.
The program highlights are:
Purchases starting Apr 22, 2010 until May 23, 2010

· Claim within 30 days of purchase

· Claim by Jun 22, 2010

• May be combined with other rebates
• Must recycle existing appliance
• State resident

Click on the link for the real details. http://www.energy.ca.gov/recovery/energystar.html or http://www.kcra.com/cash-for-appliances/21363879/detail.html

and More Energy Efficient Savings:
Our federal government still offering a credit if you purchase an energy-efficient product or renewable energy system for your home. You may be eligible for a federal tax credit if you replace water heaters, solar energy, windows, doors, heating and cooling systems and more.
You will find an overview of the federal tax credits for energy efficiency by clicking on the link: http://www.energystar.gov/index.cfm?c=tax_credits.tx_index

Capital Gains Tax
If congress does not act Capital Gains tax will be increasing by 5% in 2011. They could propose to increase it even more. Due to the economy it is doubtful for them to maintain the current capital gains rate OF 15%. If you are considering selling an investment property today might be the right day. Call me toll free at 877-Lee-Sells. http://money.cnn.com/2010/02/01/pf/taxes/obama_budget_tax_changes/index.htm

So there you have it in a nut shell. Hope you found it enjoyable and helpful. Please, I encourage you to share your good news, comments, updates and questions. If clicking on the links do not work please copy and paste.

Please visit me at www.leesellsmore.com

RSVP is Coming

May 3-7

Get The Word Out!

Register now at http://www.samcar.org/userfiles/file/RSVP10_homeownerAPP.pdf

WHAT IS RSVP?
RSVP is an annual week-long community outreach program that takes place in May 3-7 during "Adopt-A-Senior" Week. Realtors of San Mateo County provides free assistance to seniors who cannot otherwise perform certain household tasks due to physical or financial constraints.

FREE HOME SERVICES FOR SENIORS & THE HOMEBOUND
Washing windows, changing furnace filters, turning over mattresses, vacuuming, changing light bulbs, replacing smoke detector batteries and other similar household tasks are just a few chores that Realtors will perform.
The program is one way Realtors and Affiliates can give back to their communities.
Who is eligible? If you are a senior or homebound and live in San Bruno, South San Francisco, Daly City, Millbrae, San Mateo, Burlingame, Belmont, Foster City or anywhere in San Mateo County.
INTERESTED IN FREE HELP
Please call San Mateo County Association of Realtors at 650-696-8200 or
register now at http://www.samcar.org/userfiles/file/RSVP10_homeownerAPP.pdf

Lee@leesellsmore.com

Dear Home Buyer and Fence Sitter,

The window of opportunity is closing. Let me explain my thoughts. Prices in the Bay Area are already inching up, same with interest rates. The time to receive the Federal Tax Credit of $8000 or $6500 is rapidly approaching. (Must be in contract by April 30, 2010) FHA is talking about increasing the minimum required down payment and or increasing the cost of required mortgage insurance.

You can purchase a home today and your costs will be fixed for the next 30 years. What else can you buy and maintain the same cost for the next 30 years? Rents will continually go up. You are at the Landlords mercy. It is time to get off the fence. The first step is to get pre-approved. This will tell you what the bank will loan you. There are many loan programs out there. I could refer you to someone if you would like. The pre-approval process is easy, is no cost and with no obligation. If you don't do it now you will never know.

You do not need a large down payment. You can purchase a home with only 3.5%. Yes you need mortgage insurance. I don't like mortgage insurance but if that is the only way to own a home, then go for it. Mortgage insurance will go away once you have 20% equity. Economists think values will increase substantially in the next 3-5 years and that will more than make up for the mortgage insurance. Some people tell me they want to save for a larger down payment. That bothers me because from my experience most people cannot save as much as prices increase.

Some people tell me they do not like the home they qualify for so they want to wait until their income increases to get qualified for a larger home. My response is; your first home is not necessarily your dream home. Most Americans move every 7 years. Get into something now. Hold it for a few years, make some money and then move into your dream home. Read my blog http://www.pruvoices.com/2009/09/is-a-condo-the-right-choice/

Also, mortgage insurance, mortgage interest and property tax are all deductible on your income tax. That will save you approximately 20-30% of the payments. Check with your tax preparer for your individual situation.

I am concerned that some people whom do not take advantage today's market may never be able to purchase a home again. They may not qualify if rates go up or may not qualify for what they want if prices go up. If interest rates increase just 1% you will need an annual income increase of $8000 to qualify for a $500,000 home. If that $500,000 home increases just 5% and interest rates remain the same you will need an income increase of $3600.

I believe home ownership is the first step to financial freedom. It is forced savings. You build up equity. If you look at most of the wealthy people in this country and around the world real estate is the asset that attributed to their wealth. Home ownership may not be for you but if you don't look into it you will never know. Today's market with both record low interest rates and low prices at the same time is quite unusual. They generally work in opposites. This is a blue moon, once in a lifetime opportunity. If you want to take advantage of today's opportunity please call me for a free consultation to discuss your options, the market, and the process. I would love to help you so please contact me lee@leesellsmore.com or your favorite Realtor now. Don't put it off any longer.

Sincerely,

Lee Ginsburg CRS, SRES DRE# 01391378

You might ask, what is working and working well. I am speaking about the $8000 Home Buying Credit. A recent home buyer brought up the $8000 credit and told me that was the motivating factor for him and his wife purchasing a home. The termination date creates urgency and action. Low prices are motivating but not the cause of action. Many think they can time the market. Good Luck to them. People in the business think the lowest interest rates in 40 years should be creating urgency. It certainly makes people think but low rates is all many of these young first time buyers know. I purchased a home in 1982 at 14% interest and that was considered good. Today's 5% and below interest rates are like the "After Christmas Sale". But still does not create the urgency since many believe it will last forever.

The $8000 federal tax credit was extended and now sounds like it will really terminate April 30, 2010. Now that creates urgency! OK; the credit created a home sale and that helps stabilize pricing. Let's not forget all the mouths a home sale feeds: the realtor, mortgage broker, title people, escrow company, termite inspector, home inspector, city tax coffers, and more. Now let me show you all the mouths my client fed by spending his credit on: landscaping, painting, double pane windows, window coverings, furniture and more. Others may remodel a kitchen or bath, carpet, appliances, roof, etc. My client purchased the home from a flipper who must have put $50,000 into the home. Add that up, and the $8000 quickly turns into over $100,000 of added income to local people. That feeds lots of mouths. Being employed in Real Estate and related fields, as Americans and Smart business people we should be ecstatic. I know I am. I am a believer.

One might think that I support the credit going on forever. No, I am a realist and understand the affect will diminish over time and a firm termination date is what makes the credit successful. I think April is a good time to terminate the credit as the Real estate Market historically picks up in late spring and summer. I am hoping that will help smooth the transition and continue the market stabilization and slight appreciation.

A quick mention of the Current Home Owner Credit of $6500. Although in the Bay Area the $800,000 home purchase limit puts a damper on things it is a great opportunity for Condo Owners to step up and for others to scale down. Many people may not realize that they do not have to sell their current home to receive the $6500 credit. They can keep it and rent it out. The new purchase must be a primary residence and it must be below $800,000.

Enjoy Spending your credit!

www.leesellsmore.com