Welcome to the "Z" Team!

Rising demand and a tightening supply is force both commercial and residential rents upward, and signs point to an increase in prices continuing over the next few years. 

 “The supply side is so constrained because nobody has been building for years” due to the economy and the struggle developers face in getting loans, Mark Stapp, professor of real estate practice at Arizona State University, told MSNBC.com. 

While rents have risen, the cost of home ownership has dropped. In fact, in 74 percent of major U.S. cities, renting may be more expensive than owning a home, a Trulia.com study has found.

In our region of Placerville, El Dorado County, California, residential renting has become more expensive. It’s a matter of few rentals available verses higher than normal tenant demand. Families that that were foreclosed on need to rent for a few years in hope of buying again, or? Let’s keep hoping for change and return to “Home Ownership” .

Source: “Office and Home Rent Will Keep Rising and Rising,” MSNBC.com (Feb. 6, 2012)

Blame it on distressed sales for falling home values, according to CoreLogic’s December Home Price Index. From our analysis here in the Placerville, El Dorado County, California region we concur with this study. What are your thoughts?  

Home prices nationwide dropped nearly 5 percent from 2010 to 2011, but if you exclude distressed sales, prices dropped only by 0.9 percent, according to CoreLogic.

“Until distressed sales in the market recede, we will see continued downward pressure on prices,” Mark Fleming, chief economist of CoreLogic, told AOL Real Estate.

The states that saw home prices decline by the largest amounts since the housing peak are Nevada, Arizona, Florida, Michigan, and California. All five states have a high rate of foreclosures too.

Please read more at source: “Distressed Sales Undercut Home Prices in 2011, Study Says,” AOL Real Estate (Feb. 2, 2012)

As the housing market continues to struggle for stabilization, many homeowners are turning to strategic default.  Almost 11 million homes are now underwater, according to Corelogic.  Around 3.5 million homeowners are behind in their payments and another 1.5 million homes are already in the foreclosure process, according to RealtyTrac.

Aside from the moral quandary of whether strategic default is the right decision, there also are other factors we suggest be considered. Plus, obtain advice from professionals.

The borrowers’ credit scores will take a hit. According to FICO, someone with a 680 credit score would see their score decline anywhere between 85-100 points after a strategic default, and someone with a 780 credit score could lose 140-160 points.

Borrowers who are considering strategically defaulting on a house should look at it as a last resort, not a first option.  Financial troubles could be eliminated by refinancing, especially if the Obama administration’s program is implemented.

Each state has its own rules and regulations regarding foreclosures, which affect both the length of the process and what the borrower could be liable for in the end.

Other news from the “Sierra Foothills” of El Dorado, Placer, Amador and Sacramento Counties of California at: www.sierraproperties.com or email: zteam4u@gmail.com

The Appraisal Foundation’s Appraisal Practices Board is seeking public comment on a proposal about how to adjust comparable sales for seller concessions when making valuations.  

“A common tool used to help facilitate a property transaction is to have the seller provide financial assistance or incentives to the buyer,” the board’s proposal states. “Such assistance may be considered a seller concession or financing concession and this is important because it may have an influence on the contract price. The purpose of this guidance is how to identify, verify, analyze and adjust sale comparables for both seller and financing concessions.” 

You can view the appraisal board’s second draft at the Appraisal Foundation Web site, and submit public comment on the draft proposal through Feb. 29. 

We believe financial assistance or incentives often help families buy a home. Appraisers can reflect and adjust for concessions in their analysis. This has been our experience here in the “Sierra Foothills” region of Placerville, El Dorado County, California.   What comments or recommendations could you offer?

Source: REALTOR® Magazine Daily News

FICO has launched myFICO en Español, the first Spanish-language website where consumers can obtain their personal credit report, credit report analysis, FICO Score and FICO Score analysis in Spanish.

The new site enables users to toggle between Spanish and English, a format that is preferred by many bilingual speakers. More than 600 pages of Spanish-language consumer financial educational materials are available to visitors.

Si tiene ud. interes en comprar una casa o conseguir un prestamo, llamenos ahora y nuestro equipo que habla espanol le puede ayudar. Este es el primer paso para comprar una casa!

To access the site, visit http://espanol.myfico.com

More information at: http://www.fico.com/en/Company/News/Pages/01-24-2012.aspx

Call us at (530) 409-8351 or email: zeller123@gmail.com for personal assistance.

With Marcus & Millichap’s National Apartment Report showing that the U.S. average for asking rents in 2011 came in at $1,061 a month, housing analysts believe more tenants will look to own. 

Some expect the average monthly rent to rise to as much as $1,101 this year, which Paul Bishop of the National Association of REALTORS® says should prompt more potential home buyers to “think twice before renting.”

Plus, another reason some consider buying is that a limited supply of rentals exist fitting their needs. This has been the case in our Placerville, El Dorado County region of California for the past few years.

 Source: “High Apartment Rents Seen Pushing People to Buy Homes,” Investor’s Business Daily (Jan. 27, 2012

 More news at: www.sierraproperties.com or email: zeller@realtor.com

Many in the real estate industry were concerned that a change announced last year to the maximum seller contributions allowed for Federal Housing Administration-insured loans have made more sales to fall apart. The FHA announced last year that it would cut seller contributions from 6 percent to 3 percent for purchases using FHA-insured loans. Seller concessions, such as seller assistance to buyers in closing costs, can play a big part in FHA-financed home sales and in closing transactions.

We believe the previous higher seller contributions helped a lot of families buy a home. Our suggestion is to reinstate 6 percent for the “Sierra Foothills” region of Placerville, El Dorado County, California. What would you recommend for your area? 

Inman News reports that the FHA may be rethinking its seller contribution cap and will likely announce changes to its policy in April. 

“Rather than an across-the-board 3 percent ceiling on all FHA mortgages, the new policy would permit higher seller contributions, probably between 4 and 5 percent, on smaller loan balances,” Inman News reports. “Meanwhile, the 3 percent cap would be mandatory on all loan amounts above some yet-to-be-specified limit.”

Inman News also speculates that a dollar ceiling on seller concessions might be announced, like a maximum cap of $6,000 instead of a percentage.

Source: “FHA Concessions on Seller Concessions?” Inman News (Jan. 25, 2012)

Fallen home prices and record-low mortgage rates have pushed housing affordability to a 40-year high. Meanwhile, rental prices are continuing to rise at a fast pace, according to a new report released by Hotpads.com, a rental listing service. 

Rental prices in many areas like ours in the Placerville, CA. increased about 3.5 percent in 2011, and prices are expected to continue to rise in 2012. Meanwhile, home prices fell by about 1.5 percent in 2011 but are expected to level out in 2012. 

“In a lot of cases it’s getting to a point where it makes more sense for people to buy because rent has been going up significantly faster, while home prices have been falling,” Paul Gleger, author of the report, told AOL Real Estate. 

Source: “U.S. Rental Market Stays Hot in 2011,” Hotpads.com (January 2012) and “Rental Prices Climb, Buying Remains More Affordable,” AOL Real Estate News (Jan. 18, 2012)

More news from the “Sierra Foothills” of El Dorado, Placer, Amador and Sacramento Counties of California at: www.sierraproperties.com or email: zeller@realtor.com

Great to report that loan rates hit another all-time low this week, marking the seventh straight week it has averaged below 4 percent, Freddie Mac reports in its weekly mortgage market survey.

Here’s a closer look at rates for the week ending Jan. 19: 

• 30-year fixed-rate mortgages: averaged 3.88 percent, with an average 0.8 point, a new all-time low and dropping from last week’s previous record of 3.89 percent. A year ago at this time, 30-year rates averaged 4.74 percent. 
• 15-year fixed-rate mortgages: averaged 3.17 percent, with an average 0.8 point, up slightly from last week’s record low of 3.16 percent. Last year at this time, 15-year rates averaged 4.05 percent. 
• 5-year adjustable-rate mortgages: averaged 2.82 percent, with an average 0.7 point, the same as last week’s average. Last year at this time, 5-year ARMs averaged 3.69 percent. 
• 1-year ARMs: averaged 2.74 percent, with an average 0.6 point, dropping from last week’s 2.76 percent average. Last year at this point, the 1-year ARM averaged 3.25 percent. 

Source: Freddie Mac

More news from the “Sierra Foothills” of El Dorado, Placer, Amador and Sacramento Counties of California at: www.sierraproperties.com or email: zeller123@gmail.com

A new Spanish-language property search website that offers Spanish-speaking home buyers MLS listings based on the California Living Network’s database.   Powered by NAR’s REALTOR.com® (www.realtor.com/california), home buyers can search for California homes using common sorting characteristics such as city, price range, and number of bedrooms and bathrooms. Results appear in a list or on a map, and driving directions are available in Spanish. The website also is a useful tool for REALTORS®, allowing agents to forward their clients a link to a specific property in Spanish.

Si usted esta interesada en comprarar o vender una casa, podemos ayudarle. Hablamos espanol. Llamenos hoy con sus necesidades!

To view the site, please visit www.sucasa.net.

For more Spanish-speaking assistance in the Placerville, El Dorado County or Sacremento regions, call (530) 409-8351 or email: zeller123@gmail.com.