Valorie Stover, SFR Realtor, for Mission Viejo, Lake Forest and Vicinity

We all know the politicians will spend more than they have and will try anything to get us to pay for it. California has come up with a way to have the public pay first and they'll give it back to us at a later date. Right, I'll believe that! This is from the Wall Street Journal.

Desperation grabs for revenue are nothing new in politics, but California is once again leading the way in creative financing.

To help close yet another gaping budget deficit, now estimated to be $7 billion this year and reach as high as $20 billion next, Sacramento lawmakers have authorized a 10% increase in the amount of taxes withheld from worker paychecks starting November 1 and through 2010. The extra withholding tax will reduce Californians' take-home pay by about $1.7 billion for the year. But the lawmakers say this isn't a tax increase. OK, how about calling it a compulsory interest-free loan from taxpayers to the state?

According to the Franchise Tax Board, 10,004,000 Californians overpaid their state taxes last year and received an average refund of $903. The withholding penalty is expected to snatch between $20 and $90 a month from middle-class families. For those feeling the pinch of recession and living paycheck to paycheck, that penalty will hurt.

Of course, the government is obliged to return this money next spring when workers get their tax refunds, so this is the ultimate budget gimmick. It borrows from taxpayers now and deepens the budget hole next year. And we almost hate to ask: What happens come April if the state doesn't have enough money to pay the tax refunds it owes its citizens? Will taxpayers get IOUs the way state contractors did last year when Sacramento ran out of money?

Meanwhile, Governor Arnold Schwarzenegger and the legislature now face their sixth "extraordinary session" to balance the budget. Income tax rates went up last year by 0.25%, bringing the top rate to 10.55%, but receipts are already coming in $1 billion below projections, according to the state controller.

The politicians could use this continuing crisis as an opportunity to reform the state's tax code with lower rates and fewer deductions and loopholes, as recently proposed by the governor's tax reform commission. But that plan has been panned by the ruling classes in Sacramento. They claim to want to steal only from the rich, but their latest withholding ruse is showing that they'll steal from anyone with a paycheck.

Printed in The Wall Street Journal, page A24

Just did a check on how the market in my area is doing. I work out of Lake Forest, CA Population is over 78,000

Total Active on the market

11/2/09- - 145 homes, 89 detached, 56 attached

.Short Sale Active

11/2/09- -59 out of 145

REO Active

11/2/09- -10 out of 145

In Default Active properties

11/2/09- - 5 out of 145

That leaves 71 out of 145 as equity sellers for 11/2/09

October is looking better than September did. The changes that have happened in Lake Forest are showing an improvement. We are showing a decrease in distressed properties on the market with 69 out of 145. Short sales sellers and REOs are taking a larger percentage of the active market. October is one of the slower buying months and inventory has remained the same lower than usual.

As we go into the fall the market Lake Forest will change some! It always does! Equity sellers are at 48% of the market for October. Are we seeing the "shadow inventory" starting to come on the market or is the buying season just slowing down? My pick is the slow market!

We have 71 properties in backup and 38 that are pending.

Let me know how things are going in your market.

CASTA DEL SOL INFORMATION for November 2, 2009

• 29 active homes available today
• 5 in backup
• 3 pending
• Prices Range: $290K - $775K
• Association Dues Range: $308
• Year Built Range: 1972 to 1987
• Gated: Human Gate Guarded
• Home Styles: Single Family detached with 1 and 2 car garages ranging in size from 1,200 to 2,680 square feet. Single family attached with 1and 2 car garages ranging in size from 1,000 to 1,600 square feet.
• Community Amenities: 2 Swimming Pools, Tennis Courts, 2 Club Houses, Recreation Facility, Gym/Exercise Room, Basketball Court and horse shoe pit. It's also adjacent to Casta Del Sol golf course which has reduced rates for seniors.
• Mission Viejo Lake is close by for swimming, fishing, boating and BBQ with picnic tables
• Number of Homes in Community:
  • Carmel - 192 Detached Homes - 5 Models built by Mission Viejo Co.
  • Fiesta - 396 Detached Homes - 4 Models built by Mission Viejo Co.
  • PUD - 748 Attached and Detached Homes - 7 models built by Mission Viejo Co.
• Location: Central Mission Viejo - East of Marguerite Pkwy , south of Alicia Pkwy and north of Jeronimo

Reported in the Orange County Register by Jonathan Lansner, buying a home in Lake Forest instead of renting is just about perfect right now. Buying costs reached a point, using a simple math formula, sides with the house shopper instead of the renter.

Every shopper is different and every house is different so no formula will be able to fit all buyers into one scenario. Orange County Index indicates that the prices of recent home purchases when compare to a benchmark of local rents in and around Lake Forest is looking better than it has in ten years.

The last time this happened in Orange County was just before prices took off in the late 1999. In the late 80s and up till then mortgage payments were close to double the rents. Once they reached about 56% of the cost to own a house, the market for buying took off. I am glad to say we are at that point again. In the latter part of 2009 the difference between renting verses buying is at a low 57%.

We would be selling more homes but it is difficult to get many buyers qualified because the banks are afraid to loan money to any one but the cream of the crop.

Casta del Sol in Mission Viejo, only has two more get togethers before the end of this year. November 5, at 6:30 will be our Election Party at which we will serve Pizza, free for member and $3 for guests. It is a BYOB! Please make sure to sign up at Rec center 1, so that we have enough pizza for all. Kip will be presenting a slide show from our past events and I know you don't want to miss seeing yourself on the big screen. Don't forget, you will need to vote for the board while having fun.

Our annual Holiday Party is going to be on Saturday December 5th. sign-up start on November 5th. Dinner will be catered by Jolanda's with a mixture of surprises thrown in, so make sure to save yourself a spot!.

Our last boogie night for this year is on Nov. 7 at 6:30 in Vista Room and is open to all. Cost is $1 at the door, no sign-up required and light snacks will be served. BYOB at boogie nights. Come find out about Casta del Sol, Mission Viejo and you will love i,t as much as we do!