Calif. median home price - September 08: $316,480(Source: C.A.R.)
| Mortgage rates - week ending 10/30/08 30-yr. fixed: 6.46% Fees/points: 0.7% 15-yr. fixed: 6.19% Fees/points: 0.7% 1-yr. adjustable: 5.38% Fees/points: 0.6%(Source: Freddie Mac)
From the Southland Regional Association of REALTORS(R): A total of 195 single-family homes changed owners throughout the Santa Clarita Valley during September, in increase in activity of 85.7 percent compared to a year ago, the Southland Regional Association of Realtors® reported. Twelve months have elapsed since the record low of 105 sales was set in September 2007, but today's market is looking very different. "Activity is picking up with much of it centered on sales of bank-owned properties that are being sold as a result of foreclosure proceedings," said Doreen Chastain-Shine, president of the Association's Santa Clarita Valley Division. "It's back to basics with lots of hard work to complete the sale of a foreclosure or a property listed for sale by a traditional owner. However, it's clear that we near or at the bottom of this cycle and one-by-one foreclosures are being sold." Condominium sales also increased 41.3 percent to a total of 89 transactions, the Association reported. Condo sales have been steadily increasing each month since they hit their low point of this cycle in January with 31 transactions. "Sale of foreclosed properties will continue occupy the market for some time," said Jim Link, the Association's chief executive officer, "but I'm confident that the worst is passed." The median price of single-family homes sold last month feel 22.6 percent from a year ago to $433,500, a drop of $126,500 from the $560,000 median of September 2007. The median price has been inching lower since the record high of $643,000 was set in April 2006. Every month this year has seen the median come in under $500,000, but September was the first month to dip below $450,00. Likewise, the condo median price of $250,000 was down 30.9 percent - a drop of $112,000 from the $362,000 median of September 2007. It was the first time since 2003 that the condo median hit $250,000. "There are incredible opportunities on the market today and a growing number of buyers are casting a vote of confidence in the local economy," Chastain-Shine said. "Plus, it's likely that programs coming from Washington, D.C., will create even more options, especially for first-time home buyers." Pending escrows - a measure of future resale activity - were up 148.4 percent at the end of September, suggesting that the market will remain strong for months to come. Realtors reported a total of 1,588 active listings throughout the Santa Clarita Valley at the end of September, down 36.3 percent from a year ago. At the current pace of sales, the active inventory represents a 5.6-month supply. Real estate experts believe a balanced market exists - where neither buyer nor seller have an advantage - when the supply hovers between a 5- and 6-months inventory.
From the Southland Regional Association of REALTORS(R): Driven by foreclosures and homes sold by traditional sellers at favorable prices, sales of existing single-family homes in the San Fernando Valley during September soared a whopping 81.8 percent compared to a year ago, the Southland Regional Association of Realtors® reported. A total of 658 homes changed owners last month - 296 sales higher than in September 2007. Home sales have been steadily increasing since a year ago September - which set a record low of 323 sales -with this September posting the fifth consecutive month with the total at 650 sales or higher. "Recovery of the local housing market is underway," said Mary Funk, president of the Southland Regional Association of Realtors. "Every time a foreclosed home finds a new owner or a buyer expresses confidence by buying a home from a traditional seller, we move a step closer to resolving the housing crisis and returning to some level of normalcy. "Even as some home owners still struggle with the excesses of the past," Funk said, "once-in-a-lifetime opportunities to buy are available now or will soon emerge. Yes, it's more difficult to get a loan today, yet there are many programs available or emerging that are designed to aid current owners and help prospective buyers get into a home. No one knows how long these favorable conditions will be around." It is to early to predict whether rescue efforts from the nation's capital will prolong or speed recovery, Funk said. Funk and Jim Link, the Association's chief executive officers, said they expected foreclosed properties to continue to be dominant factor in the market, yet both expressed confidence that the worst of the fallout from the financial meltdown has passed. "Recent sales activity and the number of properties that are already in escrow suggest that the market has hit bottom and is bouncing back," Link said. "Buyers want to take advantage of the relatively few properties listed for sale and capture prices that have not been seen in years." Buyers generally have been focusing on unique opportunities to purchase single-family homes, simply because homes that were too expensive two years ago now may be within reach. Still, condominium sales also increased during September, soaring 36.1 percent to 21 1 transactions - 56 sales higher than a year ago. September marked the third time in four months that condo sales exceeded the 200-transaction benchmark after stumbling along below 200 for 10 consecutive months with the 105 condo sales of this January being the low point of this cycle. "There's no doubt that sales are being driven by favorable prices," Funk said. "Plus, a purchase today indicates that buyers realize that housing remains a relatively rare commodity in Southern California, which is expected to add tens of thousands of new residents over the coming years." The median price of single-family homes sold during September declined 37.1 percent from a year ago to a median of $392,500. It was the first time since 2003 that the median dipped below $400,000. Likewise, the condo median price of $260,000 dropped 33.3 percent - $1 30,000 lower than a year ago. September marked the fifth consecutive month that the condo median has been below $300,000. Today's median condo price was last seen in 2003 and early 2004. Pending sales - a measure of future closed escrow activity - increased an incredible 163.1 percent during September. The Association reported a total of 1,305 open escrows at the end of the month. That compares to 496 year ago - one of the lowest tallies in recent years and close to the record low of 385 pending escrows posted in December 1991. "Generally, people are surprised to learn that there is a relatively limited inventory of properties listed for sale throughout the San Fernando Valley," Link said. "Owners realize that this is not the time to test the market. "That leaves two types of sellers," Link said, "both of whom are highly motivated: banks holding foreclosed properties and traditional sellers who either must sell due to personal circumstances, such as a work transfer, or owners who have sufficient equity in their current property and understand that whatever the perceived loss in a sale will be more than recaptured when they buy a replacement property." There were a total of 6,009 properties listed for sale at the end of September, down 22.2 percent from a year ago. At the current pace of sales, that represents a 6.9-month supply, only slightly on the high end of the 5- to 6-month supply which real estate experts believe indicates a balanced market. The inventory at the current pace of sales was at a 16.2-month supply this January when there were 6,928 properties for sale and a mere 428 total sales. For comparison, during the housing downturn of the 1990s the inventory soared to a record high of 14,976 in July 1992 and the inventory at the then current pace of sales hit a high of 23.0-months.
From Real Estate Daily News: Can the federal government afford to pass yet another stimulus measure, this one aimed directly at getting the housing market moving? NATIONAL ASSOCIATION OF REALTORS® leaders say the government can’t afford not to. The association has crafted a four-point housing recovery plan and is making an all-out push to get it through Congress. At the REALTORS® Conference & Expo in Orlando next week, NAR members will be wearing “I support the four-point plan” buttons to voice their support. The House That NAR Built In addition, REALTORS® will have the opportunity to sign a giant model house on the Expo floor emblazoned with the slogan, “We support the NAR housing stimulus plan.” After the conference, the house will be dismantled, shipped to Washington, D.C., and reconstructed in an as-yet-unnamed spot. It’s a publicity stunt, to be sure, but one that REALTORS® are hoping will get legislators’ attention. Banks begin receiving cash injections this week as part of the massive $700 billion federal rescue bill, and REALTORS® want that money used for lending to qualified home buyers. Outrage from Lawmakers REALTORS® aren’t the only ones concerned about how the banks will use those funds. Senate Banking Committee Chair Christopher Dodd (D-Conn.), who helped fashion the rescue package expressed outrage at a credit-crisis hearing last week, saying: “Those lenders who will be receiving billions of dollars from U.S. taxpayers are considering using those dollars not to make loans, but rather to pursue ’some acquisition opportunities’ and to create a capital ‘cushion’ on which they will comfortably sit while the American consumer and small business person struggles.” The desire to restart bank lending was core to the government’s goal in passing its rescue bill. In addition to the provision calling on banks to use the funds for lending, NAR’s four-point plan calls for: - Expanding the $7,500 first-time home buyer tax credit to all buyers and eliminating that program’s repayment requirement.
- Making permanent the prohibition against banks entering real estate brokerage and management.
- Making permanent the high-cost conforming loan limit of $729,750. That limit has been in effect for less than a year and is scheduled to drop to $625,500 on Jan. 1, 2009. NAR analysts say the higher limit, to be effective, needs more time to work.
— By Robert Freedman
From Daily Real Estate News Freddie Mac reports a jump in the 30-year fixed mortgage rate to 6.46 percent during the week ended Oct. 30 from 6.04 percent the prior week, as long-term mortgages rates moved in line with long-term Treasury bonds. The 15-year fixed mortgage rate rose as well, climbing to 6.19 percent from 5.72 percent. Meanwhile, the five-year hybrid adjustable mortgage rate moved up to 6.36 percent from 6.06 percent; and the one-year ARM increased to 5.38 percent from 5.23 percent.
Freddie Mac chief economist Frank Nothaft expects short-term rates to remain low due to the Federal Reserve’s recent cut in the discount and federal-funds rates, and he notes that falling home prices have jump-started residential sales in some markets by making properties more affordable. Source: The Wall Street Journal (10/31/08)
From Daily Real Estate News:
Governments are stepping in to protect renters who find themselves evicted when the property they rent is foreclosed. A new law passed by the California Legislature gives renters a 120-day grace period before they must vacate a foreclosed property. A city ordinance in Chicago that will take effect Nov. 5 requires that tenants be informed within seven days of the foreclosure filing. The resulting proceeding can take months, so tenants who are informed promptly have plenty of time to find a new home. The Illinois Mortgage Bankers Association expressed concern about any policy that allows tenants to stay after the foreclosure proceedings begin. They said that tenants in residence could make it difficult for buyers to get financing. Dustin Hobbs of the California Mortgage Bankers Association says there have been similar restrictions in California for years and banks still lend. “The sky hasn’t fallen here.” Source: USA Today, Alan Gomez (10/27/08)
From Daily Real Estate News, October 29, 2008:
The government has thrown billions at the foreclosure crisis, but as Sheila Bair, head of the Federal Deposit Insurance Corp., told the Senate last week, “There has been some progress, but it’s not enough.”
Until the sweeping foreclosure problem is resolved, mortgage system woes will persist. Here are five reasons why the foreclosure crisis has proven difficult to fix: 1. Falling home prices: More than 23 percent of home owners with a mortgage owe more on their loans than their homes are worth. Lenders won’t give new loans to people with negative equity and that leads to owners walking away, causing the lender to foreclose. 2. Too many investors: More than 30 percent of properties in the foreclosure process are owned by someone who doesn’t live in the property, according to RealtyTrac Inc. Programs that help home owners in trouble are not designed to aid investors. 3. Complex investments: Nearly all mortgages in the last decade have been packaged into securities and sold. Investors in these securities are hesitant to agree to loan modifications because it will mean a significant loss. U.S. Rep. Barney Frank, D-Mass., has accused hedge fund investors of blocking loan modifications. In a letter summoning hedge fund investors to a hearing, he wrote: “For the hedge fund industry, which has flourished for much of the past decade, to take steps so actively in opposition to what is currently in the national economic interest is deeply troubling.” 4. Job losses: Unemployment is the main reason people can’t pay their mortgages. As the unemployment rate has risen above 6 percent, the percentage of mortgage delinquencies caused by job loss has risen to 45 percent. 5. Small modifications don’t work: One third of all subprime loans modified in the third quarter of 2007 were delinquent again within 10 months, according to a Credit Suisse report. Source: The Associated Press, Alan Zibel (10/27/08)
From CAR Market Matters:
Strategies to help you hold on to your houseAlthough the vast majority of homeowners are not facing foreclosure, many homeowners are making lifestyle adjustments to prevent themselves from falling behind on their financial obligations during the current economic downturn. · Financial experts recommend that homeowners who are concerned about their ability to continue making their mortgage payments do the following: try to refinance an adjustable rate mortgage into one that is fixed for a set amount of time; create a household budget to help determine the debt-to-income ratio; avoid using credit cards, which can add unnecessary stress when the bill arrives; keep an emergency fund of liquid assets with enough to cover three-to-six months worth of household expenses; and only purchase necessities. · Additional recommendations from some financial analysts to help homeowners save money and ensure that they can make their mortgage payments include: consolidating debt into a low-interest rate credit card; setting aside an allotted amount of money each month to pay down existing debt; foregoing luxury items such as eating out, shopping out at specialty stores and patronizing professional hair salons; and planning and preparing meals based on sale prices at the grocery store. To read the full story, please click here; http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/10/25/HOON13EGDJ.DTLMortgage shock? Adjustable rates tied to LIBOR, COFI, other indexesWith approximately 60 percent of outstanding adjustable-rate mortgage (ARM) loans set to the London Inter Bank Offered Rate (LIBOR), nearly 25 percent linked to average yields on certain Treasury securities, and 15 percent set to measures like the Cost of Funds Index (COFI), more homeowners are reacquainting themselves with the type of ARM they have and considering refinancing options such as 30-year, fixed-rate loans. · It is important that homeowners who have adjustable-rate mortgages (ARMs) are aware of the index to which their mortgage is linked, as this determines the monthly payments. Payments of loans tied to the LIBOR, which is in the interest rate that banks charge each other to borrow money, could increase if the loan resets in November or December because of the recent increase in the index’s rate. Most ARMs are set to the one-month, three-month, or six-month LIBOR. Homeowners who are concerned about possible payment increases should contact their local bank, credit union, or mortgage broker to rewrite their ARM into one with a fixed interest rate, if possible. · Rates on adjustable-rate mortgages are determined by two factors –the loan’s index (LIBOR, COFI, Treasury) and the lender’s margin. A guideline to help determine the new rate when a loan resets is to add the lender’s margin to the new index. For example, if a homeowner’s ARM resets according to the six-month LIBOR index, which was 3.70 percent as of Oct. 22, and the lender’s margin is 2.5 percent, then the new rate would be 6.20 percent. · Some mortgage brokers recommend that homeowners who have ARMs and are unaware of to which index their loan is set, should review their loan documents again to determine if they should consider refinancing into a new loan with a fixed rate or possibly one linked to a different index. To read the full story, please click here: http://www.mercurynews.com/localnewsheadlines/ci_10830812?source=rssHousing market rouses locallyAccording to C.A.R.’s September sales and price report, sales in California soared 96.7 percent and the median price of an existing single-family home decreased 40.9 percent compared with September 2007. · Statewide sales in September surpassed the 500,000 mark for the first time in more than two years, rising 2.3 percent compared with August, and 96.7 percent from a year ago. The dramatic increase in sales can be attributed to weakness in the market from a year ago with the early onset of the credit crunch. Similar increases in sales occurred in the early 1980s when the market was climbing out of a comparatively steep downturn in sales. The market is expected to register significant year-to-year percentage gains in the coming months as current sales are compared against extremely low numbers that prevailed during the fourth quarter of last year. · The median price of an existing, single-family detached home in California during September 2008 was $316,480, a 40.9 percent decrease from the revised $535,760 median for September 2007. It is still too early to determine if the statewide median price has begun to stabilize, and recent events in the economy and financial system contributed to the decline in September. The median home price also will continue to face downward pressure from the large share of distressed sales and a dramatic change in the sales mix. A year ago, the under $500,000 price range accounted for 46 percent of sales but shifted to 76 percent as of September. · C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in September 2008 was 6.5 months, compared with 16 months for the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate. · The median number of days it took to sell a single-family home was 46.1 days in September 2008, compared with 56.7 days for the same period a year ago. To read the full story, please click here: http://www.sgvtribune.com/rds_search/ci_10810317?IADID=Search-www.sgvtribune.com-www.sgvtribune.com
From CAR Market Matters, email October 30, 2008: Properly staging a home for sale is one of the most essential elements of the selling process. Not only does it help to set a home apart from comparable homes in the area, it also enables buyers to visualize the home’s potential. While staging a home can be something as simple as a fresh coat of paint or something pricier like purchasing new furniture for a room, one essential component that all sellers should utilize is removing clutter. Sellers should work with their REALTOR® to determine the best staging opportunities for a home, including which furniture, household items, and the like should remain in the house, and which ones should be donated or temporarily put into storage.
Fast Facts Calif. median home price - September 08: $316,480(Source: C.A.R.) Calif. highest median home price by C.A.R. region September 08: Santa Barbara So. Coast $935,000 (Source: C.A.R.) Calif. lowest median home price by C.A.R. region September 08: High Desert $159,720 (Source: C.A.R.) Calif. First-time Buyer Affordability Index - Second Quarter 08: 48 percent (Source: C.A.R.) Mortgage rates - week ending 10/23/08 30-yr. fixed: 6.04% Fees/points: 0.6% 15-yr. fixed: 5.72% Fees/points: 0.6% 1-yr. adjustable: 5.23% Fees/points: 0.5%(Source: Freddie Mac)
From CAR Newsline, email dated October 29, 2008:Sales of newly built single-family homes posted a slight increase in September, rising 2.7 percent to a seasonally adjusted annual rate of 464,000 units, according to a U.S. Dept. of Commerce report released Monday. The report also indicated that builders are making substantial progress depleting the supply of unsold units on the market. The number of new homes for sale fell to 394,000 units in September, compared with 425,000 units in August. At the current sales pace, there was a 10.4 months' supply of unsold new units on the market, compared with an 11.4 months' supply in August. Conversely, the median number of months that completed new homes have been on the market hit a new record of 9.1 months. Regionally, sales activity gained 22.7 percent in the West and 0.7 percent in the South in September, but at the same time declined 21.4 percent in the Northeast and 5.8 percent in the Midwest.
From CAR Newsline, email dated October 29, 2008:A lender's agreement to forbear or refrain from foreclosing on a home must be in writing and signed by the lender, even if the borrower has performed on the agreement by making a payment. This was the ruling of the recent appellate court case of Secrest v. Security National Mortgage Loan Trust (2008 WL 4516413). This case serves as a good reminder for REALTORS® and their clients to get loan forbearances, loan modifications, and other agreements with mortgage lenders in writing and signed. In this case, the borrowers of a home loan defaulted in 2002. In a phone conversation, the bank's loan resolution consultant agreed to enter into a forbearance agreement to refrain from foreclosing if the borrowers paid the arrearage by making an initial payment of $13,422 followed by monthly installments. The loan officer then faxed an unsigned written forbearance agreement to the borrowers. The borrowers noticed errors on the proposed agreement, and at the loan consultant's instructions, they corrected those errors on the document itself, signed it, and returned it to the loan officer along with the $13,422 initial payment. The lender, however, never signed the forbearance agreement. Instead, the lender sold the note and deed of trust, and two years later, the new lender filed a notice of default. The borrowers in this case filed a lawsuit to stop the foreclosure claiming that, because of the forbearance agreement, the notice of default overstated the amount of the default. The court disagreed. The court noted that, under the statute of frauds, a mortgage loan must be in writing and signed by the party against whom enforcement is sought. Similarly, if an agreement is subject to the statute of frauds, an amendment to that agreement also is subject to the statute of frauds. The court held that, in this case, the forbearance agreement at issue was not enforceable because it was not signed by the lender. The borrower nevertheless argued that a signed agreement was not required because they partly performed by making the $13,422 initial payment. Again, the court disagreed. The court ruled that the payment of money is not "sufficient part performance to take an oral agreement out of the statute of frauds," because the borrowers paying money under an invalid contract "have legal means to recover that money if they are entitled to its return or have not received credit for it."
From CAR Newsline, email dated October 29, 2008: Real estate industry experts expect financial and real estate markets in the United States to bottom in 2009 and then flounder for much of 2010, with ongoing drops in property values, more foreclosures and delinquencies, and a limping economy that will continue to crimp property cash flows, according to a recent report by the Urban Land Institute (ULI) and PricewaterhouseCoopers LLP. Commercial real estate faces its worst year since 1991-1992, with projected losses of 15 percent to 20 percent in real estate values from the mid-2007 peak, according to “Emerging Trends in Real Estate® 2009.” Financial institutions will continue to be pressured into moving bad loans off balance sheets, using auctions to speed up the process, while investors will be discouraged until the “bloodletting” is over, the report said. When that occurs, cash and low-leverage buyers will be king; surviving banks will impose strict lending guidelines; commercial mortgage-backed securities will revive, but in a more regulated form; and opportunity funds will need new investment models, the report said. “The industry is facing multiple disconnects,” said ULI Senior Resident Fellow for Real Estate Finance Stephen Blank. “Many property owners are drowning in debt, lenders are not lending, and for many, property income flows are declining. There is an unprecedented avoidance of risk. Only when financing gets restructured will pricing reconcile, giving the industry a point from which to start digging out of this hole.” Distress in the housing market is benefiting the apartment market, which the report lists as the number-one buy. Moderate-income apartments in core urban markets near mass transit offer the best buy, a trend that carried over from the previous year. The main beneficiaries of the real estate downturn in the U.S. are cash-rich offshore buyers, whom the report predicted will continue to take advantage of the weak dollar, and will buy trophy properties in major 24-hour cities, according to the report.
From California Association of REALTORS, email October 28, 2008:
The Federal Reserve continued to shave points off the federal funds rate, reducing it by 50 basis points to 1 percent today, the lowest rate in half a century. Analysts characterized the move as another effort to stave off a prolonged downturn in the nation's economy. "The pace of economic activity appears to have slowed markedly, owing importantly to a decline in consumer expenditures," the Fed said in a prepared statement. "Business equipment spending and industrial production have weakened in recent months, and slowing economic activity in many foreign economies is damping the prospects for U.S. exports. Moreover, the intensification of financial market turmoil is likely to exert additional restraint on spending, partly by further reducing the ability of households and businesses to obtain credit. "In light of the declines in the prices of energy and other commodities and the weaker prospects for economic activity, the Committee expects inflation to moderate in coming quarters to levels consistent with price stability. "Recent policy actions, including today's rate reduction, coordinated interest rate cuts by central banks, extraordinary liquidity measures, and official steps to strengthen financial systems, should help over time to improve credit conditions and promote a return to moderate economic growth," the Fed said. "Nevertheless, downside risks to growth remain. The Committee will monitor economic and financial developments carefully and will act as needed to promote sustainable economic growth and price stability."
From the City of Santa Clarita Arts and Events office, via email on October 29, 2008:
Santa Clarita Marathon (November 1-2)
 The Santa Clarita Marathon features a full marathon, half marathon, 5K Run/Walk, and Kid K. Strap on those sneakers, and get ready to become one of the 2,500 runners and walkers that enjoy the Santa Clarita paseos and trails on Sunday, November 2. A free pre-race Health and Fitness Expo will kick off marathon activities on Saturday, November 1, located at the Valencia Hyatt. For more information, visit www.scmarathon.org. Fine Craft Show (November 15-16)
 Join us at Old Orchard Park for a relaxed and enjoyable weekend of shopping featuring fine handcrafted items, specialty foods, coffees and jazz music. You will find many one-of-a-kind gifts including intricate and colorful handcrafted jewelry, pottery, woodwork, ceramics, floral arrangements, and much more. For more information, please visit www.santa-clarita.com/crafts.
Veterans Day (November 11)
 The Veterans Day Ceremony is held annually on November 11th at the Veterans Memorial in Old Town Newhall. The event is a partnership between the City of Santa Clarita and the Veterans’ Historical Committee, the SCV Chapter 91 Blue Star Moms, Blue Star Moms of the Canyons Chapter 82, Prayer Angels for the Military, and the Knights of Columbus. The Ceremony honors Veterans and individuals serving in the military and their families. For more information, please call (661) 286-4018.
Upcoming Events Paint the Town (December 5)
In celebration of the holiday season, and to create a joyful holiday setting in Old Town Newhall, the City of Santa Clarita presents a ‘Holiday Window Painting Contest.’ For more information, please visit www.santa-clarita.com/arts. Literacy and Arts Festival (December 6)
On Saturday, December 6, celebrate the holidays with the second annual Literacy and Arts Festival, presented by the Santa Clarita Valley Education Foundation and the City of Santa Clarita. For more information, please visit www.scveducationfoundation.org. Old Town Newhall Holiday Parade (December 6, 2008)
All Santa Clarita Valley children are encouraged to participate by walking in the parade and dressing up according to their family’s holiday traditions. For more information, please visit www.santa-clarita.com/arts. Disney’s High School Musical: The Ice Tour (December 27)
Celebrate the holidays with the gang from the High School Musical located at the Honda Center in Anaheim. This trip includes transportation by bus and reserved seats in the lower level at the Honda Center. For more information, email trips&tours@santa-clarita.com. Tournament of Roses Parade 2009 (January 1)
Pasadena’s 120th annual Tournament of Roses Parade, “Hat’s Off to Entertainment” will be making its way down Colorado Boulevard and we have reserved a seat just for you! For more information, email trips&tours@santa-clarita.com. Glacier Slide Polar Bear Swim (January 1)
Join the official Santa Clarita Polar Bear Club by taking a chilly plunge in the Aquatic Center’s waterslide pool on New Year’s Day. For more information, please contact (661) 250-3766. Santa Clarita Valley Film Festival (January 8-11)
The 4th Annual SCV Film Festival provides local filmmakers with opportunities to show their work and to come together with an audience to enjoy quality independent films. For more information, please visit www.scvfilmfestival.com.
From an email dated Tuesday, October 28, 2008, from California Association of REALTORS(R) President William E. Brown: Much has happened since passage of the Emergency Economic Stabilization Act earlier this month. NAR has urged U.S. Treasury Secretary Paulson to take advantage of the extensive experience of local commercial and residential real estate professionals in the management and disposition of real property as the U.S. Treasury Dept. implements the Troubled Asset Relief Program (TARP) as part of the Emergency Economic Stabilization Act. Congress has held a number of hearings over the past few weeks looking into multiple factors that contributed to the current financial situation. Last week, Congress heard testimony from Securities and Exchange Commission Chairman Christopher Cox, Federal Reserve Board Chairman Ben Bernanke, former Federal Reserve Board Chairman Alan Greenspan, former U.S. Treasury Secretary John Snow, and other leading players. The hearings are laying the groundwork to inform legislation expected to address regulatory reform of the finance and lending industries as well as safeguards to prevent a recurrence of the current financial crisis. It is our expectation that the legislation will be introduced early next year. Additional hearings are covering the implementation of a second stimulus package. As the U.S. economy continues to struggle, politicians on both sides of the aisle are feeling pressure from their constituents, creating a strong incentive for Congress to pass meaningful legislation as the national elections near and the country heads into the holiday season. The Senate, House of Representatives and the White House have stated their willingness to work through a lame-duck session to pass a second economic stimulus package prior to the end of the year. While many ideas have been circulated, few, if any, appear certain to be included in a second stimulus package, according to C.A.R. policy analysts. Some of the ideas under discussion include: An additional round of stimulus checks; extending the temporary loan limit of $729,750 for the Government Sponsored Enterprises (GSE) and Federal Housing Administration (FHA); infrastructure spending; financial aid for states; a temporary increase in block grants; and an extension of unemployment and welfare benefits. One important factor determining what, if anything, will be done during a lame-duck session is the outcome of the upcoming presidential election. Should the Democrats take the White House and secure a filibuster-proof majority in the Senate, they may choose to wait till after Jan. 20 before proposing or enacting legislation. Should the Republican nominee take the White House, Democrats may feel the Bush administration will be more willing to compromise in order to pass last-minute initiatives prior to leaving office. C.A.R. and NAR will continue to strongly advocate for making permanent the $729,750 loan limit as part of any legislation that is forthcoming. The Hope For Homeowners (H4H) initiative that was part of the July stimulus package began to be implemented Oct. 1.The H4H program allows troubled homeowners to keep their home, while enabling lenders to receive a Federal Housing Administration (FHA) guarantee on the loans. Under terms of the voluntary program, lenders agree to refinance the existing mortgage at 90 percent of the current appraised value and assume the loss on the remaining balance; the new loan is an FHA guaranteed 30 year, fixed-rate, fully amortized, fully documented loan; and the homeowner must forego a portion of the home’s future appreciation to the FHA when it is sold. The FHA has posted a list of lenders participating in the HOPE for Homeowners program. When contacting the lenders, the FHA is strongly encouraging consumers to also contact their servicing lender and any subordinate lien holders as their participation is vital in order to refinance into a H4H mortgage. The program is voluntary and servicing lenders may offer different solutions for avoiding foreclosure. The FHA plans to update the list weekly on Fridays. The list is available at http://portal.hud.gov/portal/page?_pageid=73,7605762&_dad=portal&_schema=PORTAL.
Beginning November 1, I have slightly changed the format for my weekly blogs. The weekly blog has become longer and longer, so I have moved the full story and articles to a sister site, http://changhomes.blogspot.com/. This blog, which continues to be emailed to all subscribers, will summarize newsworthy housing, economic, and real estate events of the week, and will have links to the full story at the sister site. During the month of November, I will continue to make improvements to interconnect the blog with distribution methods and the website. As always, I look forward to your comments and feedback. Just send me an email at changhomes@gmail.com. Thank you for your continued interest and support!
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