Archive for May 4th, 2009

Stock market down, reports dismal..So how about a blast from the past…

Kwik Googie Vid

With all the dismal news everywhere I thought remembering some good times would be fun. There is no question Googie architecture will spark some great memories. With the Mediteranian of the 90s and all the “new” Frank Loyd Wright inspired construction becoming somewhat boring…Googie is a fun escape.   Googie Architecture!

googie-61LA International Airport

Googie architecture (also known as populuxe or doo-wop) is a form of novelty architecture and a subdivision of futurist architecture, influenced by car culture and the Space Age and Atomic Age. The style is related to and sometimes synonymous with the Raygun Gothic style as coined by writer William Gibson. Originating in Southern California in the late 1940s and continuing approximately into the mid-1960s, the types of buildings that were most frequently designed in a Googie style were motels, coffee houses and bowling alleys.

Features of Googie include upswept roofs, curvaceous, geometric shapes, and bold use of glass, steel and neon. Googie was also characterized by space-age space-sphere-googie-pic-for-postdesigns that depict motion, such as boomerangs, flying saucers, atoms and parabolas, and free-form designs such as “soft” parallelograms and the ubiquitous artist’s-palette motif. These stylistic conventions reflected American society’s emphasis on futuristic designs and fascination with Space Age themes. As with the art deco style of the 1930s, Googie became undervalued as time passed, and many buildings built in this style have been destroyed.googie-a1
The new smaller suburban stores were essentially signboards advertising the business to vehicles on the road. This was achieved by using bold style choices, including large pylons with elevated signs, bold neon letters and circular pavilions.  Hess writes that due to the increase in mass production and travel in the 1930s, Streamline Moderne became popular due to the “high energy silhouettes its simplistic designs created.” These buildings featured rounded edges, large pylons and neon lights, all symbolizing, according to Hess, “invisible forces of speed and energy,” that reflect the influx of mobility that cars, locomotives and zeppelins brought.   Streamline Moderne, much like Googie, was styled to look futuristic to signal the beginning of a new era – that of the automobile. Drive-in services such as diners, movie theaters and gas stations built with the same principles developed to serve the new American city. googie-3 Drive-ins led the way in car-oriented architectural design, as they were built in a purely utilitarian style, circular and surrounded by a parking lot, allowing all customers equal access from their cars. These developments in consumer oriented design set the stage for Googie in the 1950s, since during the 1940s World War II and rationing led to a pause in the development due to the imposed frugality on the American public. According to Hess, increasing consumer edge to commercial architecture was influenced by the desires of the mass audience.  The public was captivated by rocket ships and the atomic energy, so, in order to draw their attention, architects used these as motifs in their work. Buildings had been used to catch the attention of motorists since the invention of the car, but the 1950s took it a step further and created a genre of architecture that was used exclusively for the roadside service industry.

Origins

According to author Alan Hess in his book Googie Redux: Ultramodern Roadside Architecture, the origin of the name Googie goes back to 1949, when architect John Lautner designed the coffee shop Googie’s, which had very distinctive architectural characteristics. Googie’s was located at the corner of Sunset Boulevard and Crescent Heights in Los Angeles but was demolished in the 1980s. According to Hess, the name Googie stuck as a rubric for thegoogie-sign architectural style when Professor Douglass Haskell of Yale and architectural photographer Julius Shulman were driving through Los Angeles one day. Haskell insisted on stopping the car upon seeing Googie’s and proclaimed. “This is Googie architecture.” He made the name stick after an article he wrote appeared in a 1952 edition of House and Home magazine.

History

Googie’s roots lie in the Streamline Moderne architecture of the 1930s.[2] Alan Hess, one of the most knowledgeable writers on the subject, writes in Googie: Ultra Modern Road Side Architecture that mobility in Los Angeles in 1930s was characterized by the initial influx of the automobile and the service industry that evolved to cater to it. With car ownership increasing, cities no longer had to be centered on a central downtown but could spread out to the suburbs, where business hubs could be interspersed with residential areas. The suburbs offered less congestion by offering the same businesses, but accessible by car. Instead of one flagship store downtown, businesses now had multiple stores in suburban areas. This new approach required owners and architects to develop a visual brand so customers would recognize it from the road. This modern consumer architecture was based on communication.[3]

The 1950s, on the other hand, celebrated its affluence with decadent designs. The development of atomic energy and the reality of space travel captivated the public’s imagination of the future.  This was the vision that architects looked to for reinventing modern architecture.best-swept-roof-pic-for-googie Googie architecture tapped this vision by incorporating energy into its design with elements such as the boomerang, diagonals, atomic bursts and bright colors.
The identity of the first architect to practice in the style is often disputed, though Wayne McAllister is usually given credit for kick-starting the style with his 1949 Bob’s Big Boy restaurant in Toluca Lake. McAllister got his start designing Streamline Moderne drive-ins during the 1930s and did not have any formal training as an architect.   McAllister developed a brand for coffee shop chains by developing a style for each client – which also allowed customers to easily recognize a store from the road.  Along with McAllister, the most prolific Googie architects were John Lautner, Douglas Honnold and the team of Louis Armet and Eldon Davis. Also instrumental in developing the style was designer Helen Liu Fong, a key member of the firm of Armet and Davis. Joining the firm in 1951, she created such iconic Googie interiors as those of the Johnie’s Coffee Shop on Wilshire Boulevard and Fairfax Avenue, the first Norm’s Restaurant on Figueroa Street, and the Holiday Bowl on Crenshaw Boulevard.

America’s preoccupation with space travel had a significant influence on the unique style of Googie architecture. Speculation about space travel had roots going as far back as 1920s science fiction. In the 1950s, space travel became a reality for the first time in history. In 1957, America’s preoccupation grew into an obsession, when the Soviet Union launched Sputnik I, the first human-made satellite that “slipped the surly bonds of Earth.”[12] The obsession intensified into a near mania when the Soviet Union launched Vostok 1 carrying the first human, Yuri Gagarin, into Earth orbit in 1961. The Eisenhower and Kennedy administrations made competing with the Soviets for dominance in space a national priority of considerable urgency and importance. This marked the beginning of “The Space Race.”

With space travel such an important part of the national zeitgeist, architects decided that they wanted to give people a little taste of the future in the here and now. Googie style signs usually have something with sharp and bold angles, which suggest the aerodynamic features of a rocket ship. Also, at the time, the unique architecture was a form of architectural braggadocio, as spae-needlerockets were technological novelties at the time. Perhaps the most famous example of Googie’s legacy is the Space Needle in Seattle, Washington. A revealing comparison can be made between the Space Needle and the non-Googie Osaka Tower of 1966.[citation needed]

Characteristics

Cantilevered structures, acute angles, illuminated plastic panelling, freeform boomerang and artist’s palette shapes and cutouts, and tailfins on buildings marked Googie architecture, which was beneath contempt to the architects of Modernism, but found defenders in the post-Modern climate at the end of the 20th century. The common elements that generally distinguish Googie from other forms of architecture are:

Roofs sloping at an upward angle – This is the one particular element in which architects were really showing off, and also creating a unique structure. Many roofs of Googie style coffee shops, and other structures, have a roof that appear to be 2/3 of an inverted obtuse triangle. A great example of this is the famous, but now closed, Johnie’s Coffee Shop on Wilshire Boulevard in Los Angeles.

Starbursts – Starbursts are an ornament that goes hand in hand with the Googie style, showing its Space Age and whimsical influences. Perhaps the most notable example of the starburst appears on the “Welcome to Fabulous Las Vegas” sign, which has now become somewhat famous. The ornamental design is in the form of, as Hess writes, “a high-energy explosion.”[13] This shape is born of the 1950s fascination with the future and atomic age. It’s also an example of non-utilitarian design as the star shape has no actual function but merely serves as a design element.

The boomerang was another design element that captured movement. It was used structurally in place of a pillar or esthetically as a stylized arrow. Hess writes that the boomerang was a stylistic rendering of a protruding energy field.[14]

Architecture professor Douglas Haskel (mentioned below) perhaps described the Googie style best, saying that, “If it looks like a bird, it must be a geometric bird.” Also, the buildings must appear in some cases to defy gravity, as Haskel noted that, “Whenever possible, the building must hang from the sky.” Googie is not a style noted for its subtlety, as inclusion, rather than minimalism, is one of the central features.

The most famous Googie building may be the Theme Building at Los Angeles International Airport (LAX) designed by James Langenheim of Pereira & Luckman and built in 1961.

One of the last remaining and largest Googie-styled drive-in restaurants, Johnie’s Broiler in Downey, California, was partially demolished in 2007.

Districts

Classic locations for Googie or Doo-Wop buildings are Miami Beach, Florida, where secondary commercial structures took hints from the resort Baroque of Morris Lapidus and other hotel designers; the first phase of Las Vegas, Nevada; and Southern California, where Richard Neutra built a drive-in church in Garden Grove.

The beachfront community of Wildwood, New Jersey features an array of motel designs, colorfully described by such sub-styles as Vroom, Pu-Pu Platter, Phony Colonee and more.  kona-googieThe district is collectively known as the Wildwoods Shore Resort Historic District by the State of New Jersey.[17] The term doo-wop was coined by New Jersey’s Mid-Atlantic Center For The Arts in the early 1990s to describe the unique, space-age architectural style. Many of Wildwoods Doo-Wop motels were built by Lou Morey, who specialized in such designs.[18] His Ebb Tide Motel, built in 1957 and demolished in 2003, is credited as the first Doo-Wop motel in Wildwood Crest.[19]

Googie/Doo Wop architecture today

The architectural community never appreciated or accepted Googie, considering it too flashy and vernacular for academic praise. The architecture of the 1970s reflected this change. The rise of postmodernism in architecture replaced Modernism. As Hess discusses, beginning in the 1970s, buildings were meant to blend in to the urban sprawl, not attract attention. Since Googie buildings were part of the service industry, most developers did not think they were worth preserving as cultural artifacts. Despite the humble origins of Googie, Hess writes that, “Googie architecture is an important part of the history of suburbia.” Googie was a symbol of the early days of car culture. It wasn’t until the 1990s that efforts at conservation began. By this time it was too late to save famous landmarks such as Googie’s and Ship’s which were demolished. Despite the loss of these important landmarks, other famous Googie buildings such as the Wich Stand and some of the original Bob’s Big Boy locations have been preserved and even restored to their original splendor.

In Wildwood, a “Doo Wop Preservation League” works with local business and property owners, city planning and zoning officials, and the state’s historic preservation office to help ensure that the remaining historic structures will be preserved. Wildwood’s high-rise hotel district that is the first of its kind in the nation to enforce “Doo Wop” design guidelines for new construction.

Influence

Googie Architecture developed from the futuristic architecture of Streamline Moderne, but at the same time rejected it. While 1930s architecture called for simplicity, Googie embraced excess. Hess argues that the reason for this was that vision of the future of the 1930s was obsolete by 1950 and thus the architecture evolved along with it. During the 1930s, trains and zephyrs had been on the cutting edge of technology, and Streamline Moderne mimicked their smooth simplistic aerodynamic exteriors.[27] This simplicity may have reflected the depression era’s forced frugality. Googie heavily influenced retro-futurism. The somewhat cartoonish style is appropriately exemplified in the Jetsons cartoons, and the original Disneyland in Anaheim, California featured a Googie Tomorrowland (much of Tomorrowland still features Googie architecture, such as the Tomorrowland Terrace, Pizza Port, and Disneyland Railroad station). Googie was also the inspiration for the set design style of The Incredibles.

The eye-catching style flourished in a carnival atmosphere along multi-lane highways, in motel architecture and above all in signage. Private clients were the backbone of Googie, though the Seattle Space Needle qualifies as “establishment Googie” (even though the Space Needle is, and always has been, privately owned). Ultimately, the style fell out of favor and, over time, numerous examples of the Googie style have either fallen into disrepair or been destroyed completely – usually being replaced with buildings that lack the distinctive flashiness of the style.

Tax Time is Homeowner Deduction Time

Which season is the best time to be a homeowner? Tax season! Along with the freedom to paint and remodel, tax breaks are one of the many perks of homeownership.

The bad news? Unless you choose to take the standard deduction, your days of “EZ” tax returns are over. You’ll need to pick up the 1040 long form and itemize your deductions on Schedule A. Get IRS forms here.

Most state and local governments charge property taxes, which are an annual tax on the value of your property. You can deduct all of the real estate taxes that you pay.

There is some good news about those monthly mortgage bills: A part of the soul-crushing sum can be deducted on your tax return. For most homeowners, the bulk of each payment goes towards interest. That interest is tax deductible, up to a total of $1 million ($500,000 if you are married filing separately) on loans taken out to buy, build or substantially improve a principal residence and a second home. Any type of home is eligible: a mobile home, house, condo or even a houseboat.

In order to deduct mortgage interest on your second home, you must stay there at least 14 days a year or more than 10 percent of the days it is rented during a year. If you don’t meet this requirement, it is considered a rental property rather than a second home.

Also, other rules apply if you rent out space in your primary residence.

“Talk to a tax professional. You have to report the income because that is business use of the home as well as residential,” explains Alison Flores, a research analyst at the H&R Block Tax Institute.

You can also deduct interest on home equity loans of less than $100,000 ($50,000 if single or married filing separately), as long as the first and second mortgages total less than the value of your home.

EXAMPLE: You take out a $40,000 home equity loan to pay for your son’s college tuition. Your home is worth $100,000, and you owe $70,000. You can deduct the interest on $30,000 dollars of the loan, but you’re on your own for the remaining $10,000.

If you deduct enough mortgage interest to get a tax refund, you’ll need to claim that money as income in the year you receive it.

Always consult your tax advisor. For more information, read IRS Publication 936.

Scroll Down for More Tax Tips….

Congratulations — you’re a homeowner! Now that you’ve moved into your new digs, you’ll need to:

  • Decide what color to paint the living room
  • Sort through those last few boxes (eventually)
  • Learn about tax deductions for new homeowners

Even before you sign on the dotted line, you can get a mortgage credit certificate (MCC), which is intended to help lower-income buyers afford homeownership.

If you qualify, you can claim the credit each year to cover part of your home’s interest. The only catch: You must get an MCC before you get a mortgage and buy a home. Contact your state or local housing finance agency for more information.

You’re eligible for a host of tax deductions the minute you get the keys to your front door. Like all homeowners, you can subtract real estate taxes and mortgage interest from your tax tab. Even if you bought a home in December, it’s worth getting a few dollars off your IRS bill.

The year you buy your home, you can also deduct any money paid towards mortgage points. The term “points” refers to charges paid by a borrower to get a mortgage, and can also be called loan discounts, discount points, origination fees or maximum loan charges.

You must meet these criteria to qualify: You are buying (not refinancing) a primary residence. Your loan must be secured by the home you live in most of the time.

·  Your overall cash paid at closing exceeds the points charged. This can include money from you, or points paid by the seller. You can’t deduct points you paid for with borrowed funds from a lender or mortgage broker.

·  You’re not using the points to avoid traditional closing costs. If you paid points in lieu of closing costs, like title insurance and attorney’s fees, you can’t get a tax credit.

If you meet that criteria, the amount on your settlement statement that’s listed as “points charged for the mortgage” can be deducted from your taxes.

 

If you refinanced your mortgage, the points you paid are not deductible in the year you paid them, unlike the points you paid when you first took out your mortgage. For refinanced mortgages, you have to deduct the points equally over the life of the loan. This also goes for loans you take out to buy a second home or investment property.

HERE’S HOW: Divide the points paid by the number of payments to be made over the life of the loan. EXAMPLE: If you paid $2,000 in points and will make 360 payments on a 30-year mortgage, you can deduct $66.72 [($2,000/360) x 12] each year, assuming you make 12 mortgage payments in a year.

There is an exception: If you use part of the money for home improvements, you can deduct the portion of points related to the improvements in the year you paid them.

EXAMPLE: If you refinanced your $200,000 mortgage with a new 30-year loan of $250,000, paid $2,000 in points and used the extra $50,000 to make home improvements, you can deduct 20 percent or $400 [($50,000/250,000) x 2,000] of points in the year they were paid. The remaining points paid must be deducted equally over 360 monthly payments or $53.28 [($1,600/360) x 12] each year.

 

NOTE: If your mortgage ends early because you paid it off, refinanced it with another lender or sold the home, you can deduct any remaining points for the mortgage in that year. So, in the above example, if you sold the house the following year, you can deduct $1,546.72 ($1,600-$53.28).

B of A and Countrywide Loans are now being modified…Modify your mortgatge now.

This is right from the Bank of America Press Kit!!!! 

Bank of America’s Nationwide Homeownership

Retention Program for Countrywide Customers

Fact Sheet

 

 

§         Countrywide and state Attorneys General has cooperated in the development of a comprehensive home retention program to systematically modify troubled mortgages with aggressive solutions, including interest rate and principal reductions.

§         It is anticipated that the loan modification program in this agreement will result in an estimated $8.4 billion in permanent payment relief to an estimated 400,000 Countrywide borrowers nationwide.

§         In participating states, the agreement provides up to $150 million in payments to borrowers who defaulted early in their loan terms, while committing to a “soft landing” program to help borrowers who are unable to retain their homes with relocation costs.

§         Countrywide will begin its proactive outreach to eligible borrowers on December 1, 2008.

 

Formalization of Existing Commitments

 

§         Countrywide no longer offers “subprime,” “high cost” or “negative amortization” mortgages and has significantly curtailed no- and low-documentations loans.

§         Broker compensation will be limited to 4% of the amount borrowed.

§         Countrywide will retain, for at least one year following the acquisition of BAC, a minimum of 3,900 personnel to assist with loan modifications and other foreclosure avoidance measures.

§         We will continue to proactively seek delinquent borrowers and offer streamlined loan modifications and report the progress of this agreement on a regular basis.

 

Home Retention Programs

 

§         Beginning December 1, 2008, Countrywide will proactively contact subprime and Pay Option ARM borrowers whose loans are scheduled for an interest rate change. We will invite them to contact us if they believe they will not be able to afford the new payments.

§         Countrywide will not advance foreclosures for eligible borrowers for the time necessary to determine the borrowers’ interest in staying in the home and their ability to afford the new terms as well as the investor’s willingness to accept a loan modification.

§         Countrywide will waive late/delinquency fees for missed payments when modifying loans and will not charge modification fees to borrowers in the participating states.

§         When possible, Countrywide will waive prepayment penalties in connection with any workout or refinance, whether or not the new loan is originated with Countrywide.


 

Eligibility

Borrowers eligible for loan modifications under this program must have received a qualifying subprime mortgage or a Pay Option adjustable rate mortgage prior to December 31, 2007, and the property must be a 1-4 unit owner-occupied residential property. In addition, certain other requirements are set out in the program:

  • The borrower is 60 days or more delinquent and the current loan-to-value ratio is 75% or higher;
  • The borrower is current today but becomes 60 days or more delinquent at any time prior to June 30, 2012, and the loan-to-value ratio at the time of the modification is 75% or higher;
  • The borrower has a subprime hybrid ARM and the borrower is current but reasonably likely to become 60 days or more delinquent as a consequence of a rate reset, and the loan-to-value ratio at the time of the modification is 75% or higher;
  • The borrower has a Pay Option ARM and the borrower is current but reasonably likely to become 60 days or more delinquent as a consequence of a rate reset or payment recast based on negative amortization, and the loan-to-value ratio at the time of the modification is 75% or higher.

 

In addition, customers may be eligible for the early payment default benefit of this program if: (1) the customer has a Countrywide-originated first lien loan; (2) the loan was on or prior to December 31, 2007; (3) the customer’s primary residence is the property that secures the loan; (4) the customer has made three or fewer payments over the life of the loan (the borrower’s state may expand eligibility); and (5) the customer has either lost his home to foreclosure or is at least 120 days in arrears on mortgage payments.

 

Loan Modification Program Details

Countrywide will first offer eligible borrowers an FHA refinance under the HOPE for Homeowners Program. If not eligible for that program, Countrywide will offer these specific programs based on product type. 

 

Subprime 2-, 3- 5-, 7- and 10-Year Hybrid ARM borrowers will receive an unsolicited extension/restoration of the introductory rate for five years and an invitation to contact Countrywide for additional relief if affordability concerns persist. Borrowers who cannot afford the introductory rate will be considered on a streamlined basis for a five-year interest rate reduction to as low as 3.5% (based on the affordability equation) and a conversion to a fixed-rate mortgage at the end of five years.

 

Pay Option ARM borrowers accepting a streamlined loan modification option will have the negative amortization feature eliminated from their loan. The mortgage interest rate will be reduced to as low as 2.5%, and the loan will be converted into either a fixed-rate mortgage or a ten-year interest-only loan. For single property owners who currently have no equity in their homes, Countrywide will write-down the principal balance to as low as 95% of the current value of the property to restore an equity position.

Should I remodel now? Foreclosures are everywhere keeping my value down.

“I want to remodel now however, the market is so soft will I waste my money?”   That depends on the property value and what your LTV (loan to value) actually is.   Consider this news from NAHB.  The residential remodeling market declined further during the final quarter of 2008, according to the latest National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI). The current market conditions indicator slid to 27.7, from 33.5 in the previous quarter. Future expectations of remodeling work plummeted to 19.6, from 27.7 in the third quarter. Both these indices descended to historic lows since the start of the RMI in 2001.

Wow!  If you have a low LTV and plan to be in your home fro a few more years maybe a small re-do would be of value now.  I bet some contractors are ready to get any job to keep some cash flow and stay relevant.

The RMI measures remodeler perceptions of market demand for current and future residential remodeling projects. Any number over 50 indicates that the majority of remodelers view market conditions as improving. The RMI has been running below 50 since the final quarter of 2005, following decreasing remodeling expenditures since that time.

“During the last quarter many remodelers were asking if their phones were still working because they received virtually no calls for work,” said NAHB Remodelers Chairman Greg Miedema, CGR, CGB, CAPS, a remodeler from Tucson, Ariz. “The jobs we are getting are for smaller projects and necessary home maintenance.”

 Yep, it is time to make the call.

Nationally, market conditions for major additions and alterations shrank to 20.2 (from 29.4 in the third quarter), while minor additions and alterations conditions slowed to 33.5 (from 38.51). Maintenance and repair dropped to 27.6 from 30.9 in the previous quarter. Overall, major additions and other large remodeling jobs have experienced a greater decline than smaller remodels and maintenance.

“Remodelers suggest that the huge decline in consumer confidence, volatility of the stock market, and uncertainty about the future of the economy have made homeowners delay remodeling decisions,” said NAHB Chief Economist David Crowe. “These anxieties are causing consumers to wait and see if conditions improve before they are willing to commit to home improvement spending.”

All measures for future expectations in the remodeling market (calls for bids, amount of work committed for next three months, backlog of remodeling jobs, and appointments for proposals) dropped. Current market expectations slipped in all regions during the fourth quarter, with the Northeast declining to 24.9 (from 32.9 in the third quarter), the South 30.7 (from 31.5), the Midwest to 28.0 (from 36.2), and the West to 25.0 (from 36.1).

 Ok!  So, If you bought a REO (foreclosure) you know you bought at a super price probably very near the bottom, and you can see yourself living in your home for a few years then it is definetly time to take advantage of the soft remodel market and get your bids.  Good Luck ….and remember I am always a great source for tips.

 

This Green Co. is flourishing…More jobs maybe?

This Green Co. is flourishing…More jobs maybe?

 

Sol is for Sun…This company (linked below) appears to be adding some sunlight to our recent rainy days.

SolFocus Inc. raised an additional $19.28 million in its third round of funding on a day when we are all focused on the economic stimulus.

The Mountain View-based company in January reported raising $47.5 million and said it expected to close the third round between $60 million and $70 million.

The developer of concentrator photovoltaic systems said it will use the new funding to accelerate expansion of its manufacturing operations and extend its early base of commercial CPV deployments. The company aims to grow deployments from .5 MW in 2008 to approximately 100MW by the end of 2010. 

This should help add jobs and relieve some pressure in our local real estate market.   Especially where most of the work force lives, San Jose right? 

Does the Green Economy have staying power though?  I think about the wind farm subsidies and how they went away in the 80′s.   I wonder if these new Solar co’s will last. 

 SolFocus Inc.

San Jose is rated top investment location?

best-san-jose-skyline

Just thought I would share a link where San Jose, CA.  and Austin, TX. appear to be tied as great investment locations.   San Jose made it because the prices have fallen by a median of $250K last year.

BUY NOW…never was so true.

READ THIS LINK!

http://www.bizjournals.com/austin/stories/2009/01/26/daily16.html?ana=from_rss

Sales increased 100.8% statewide in January 2009 compared to the previous year. Good News for both Sellers and Buyers.

Good News for both Sellers and Buyers.

Sellers will sell and buyers will buy at a 40% discount statewide according to the California Association of Realtors.

quote:

“Statewide sales in January edged past the 600,000 threshold for the first time since October 2005,” said C.A.R. President James Liptak. “The strength in California home sales in recent months signifies that the market is gradually working its way through the large numbers of distressed sales that have followed in the wake of the troubled mortgage problem. With favorable home prices and historically low mortgage rates, affordability in the California housing market is now at its highest since the start of the decade.” unquote

Closed escrow sales of existing, single-family detached homes in California totaled 624,940 in January at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity increased 100.8% from the revised 311,160 sales pace recorded in January 2008. Sales in January 2009 increased 14% compared with the previous month.

The statewide sales figure represents what the total number of homes sold during 2009 would be if sales maintained the January pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

The median price of an existing, single-family detached home in California during January 2009 was $254,350, a 40.5% decrease from the revised $427,200 median for January 2008, C.A.R. reported. The January 2009 median price fell 9.5% compared with December’s revised $281,180 median price.

“A lot of attention has rightfully been directed toward the high number of distressed properties,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “California’s housing market also is feeling the effects of a drought in the availability of jumbo mortgage loans.

“Since the start of the credit crisis in 2007, jumbo lending has been severely constrained to the point where markets that rely on jumbo loans experienced a 24% year-to-year decline in sales in the month of January. This stands in contrast to the 100% sales gain the overall market experienced,” she said.

Highlights of C.A.R.’s resale housing figures for January 2009:

- C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in January 2009 was 6.7 months, compared with 16.6 months (revised) 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.
- Thirty-year fixed-mortgage interest rates averaged 5.05% during January 2009, compared with 5.76% in January 2008, according to Freddie Mac. Adjustable-mortgage interest rates averaged 4.92% in January 2009, compared with 5.23% in January 2008.
- The median number of days it took to sell a single-family home was 49.9 days in January 2009, compared with 70.8 days (revised) for the same period a year ago.

In a separate report covering more localized statistics generated by C.A.R. and DataQuick Information Systems, none of the 331 cities and communities reporting showed an increase in their respective median home prices from a year ago. DataQuick statistics are based on county records data rather than MLS information. DataQuick Information Systems is a subsidiary of Vancouver-based MacDonald Dettwiler and Associates. (The top 10 list is generated for incorporated cities with a minimum of 30 recorded sales in the month.)

Note: Large changes in local median home prices typically indicate both local home price appreciation, and often, large shifts in the composition of housing market activity. Some of the variations in median home prices for January may be exaggerated due to compositional changes in housing demand.

Statewide, the 10 cities with the highest median home prices in California during January 2009 were: Santa Barbara, $939,250; Redondo Beach, $672,500; Pleasanton, $655,000; San Clemente, $602,500; San Ramon, $582,000; Yorba Linda, $566,750; San Francisco, $561,000; Huntington Beach, $555,000; Encinitas, $550,000; and Sunnyvale, $530,000.

Moving Up in today’s Market…Consider Foreclosure Strategies

Are you a homeowner planning on moving up to a bigger or more expensive home? Here’s a guide for planning the transition in today’s foreclosure heavy market.

Figure out how much your current home is likely to sell for.
Have your real estate professional conduct a comparative market analysis. “Be realistic about pricing the home so it moves quickly,” adds Sandy Guralnik, a broker with Coldwell Banker United in Charlotte, N.C. This will help you avoid a long gap between when you buy your new home and sell your old one.

Consider the market.
If you have only been in the home two or three years and made little or no down payment, you might not have enough equity to sell at a profit in today’s soft market. You might even owe more on the mortgage than the home is worth.  This is far to common in the current foreclosure heavy market.  On the other hand, if your home has appreciated well, it might be easier to move up to a bigger and better home than ever before!  Especially in Cambrian Park, Santa Clara and most of San Jose.  Cupertino has consistantly bucked the market recently.

Consider your finances.
Your overall debt picture is important if you plan to move into a larger, more expensive home. In addition to a higher mortgage, you’ll likely have higher utility, insurance and property taxes as well. If you owe money on a home equity loan, you’ll have to pay that back when you sell the home, which will eat into your profit.

Get preapproved by a reputable lender.
The lender will tell you how much money they’re willing to lend you, which will tell you how much house you can afford. Then, figure out how much you’re comfortable spending. The two numbers are not necessarily the same, says Jan Miyasato, director of corporate and client services for Prudential California Realty in Pleasanton, Calif.

Determine your long-term housing needs.
Will you be starting or expanding your family in a few years? Will the larger home be as teen-friendly as it is toddler-friendly? Is there a place for a home office if one of you eventually works from home?  With the many economy issues this should play a large part in your decision process.

Be realistic.
Most people will not be able to move up from a starter home into their dream home. It’s a long-term process that occurs over several moves, says Debbie Wong, a certified residential specialist with Prudential California Realty in San Mateo, Calif. Plus, it’s harder to qualify for a loan if the jump in monthly payments is too big, she says. Not to speak of all the hoops many lenders are expecting you to jump through now.

Preview properties in your target price range and location.
Most importantly does that “Super Foreclosure Deal” really translate into a home. Look to see whether the homes match your trade-up goals.

Get your home on the market.
Moving up will go more smoothly if you are able to sell your home before trying to buy another. For one thing, many Sellers are leery of contracts in which the sale is contingent on the Buyer selling their current home. Foreclosures are held by Banks that are not willing to diminish there pool of potential buyers.  If they accept your offer they will be required to place the home on a pending status and other buyers will be considering it. Finances also are an issue.   Bridge loans to carry you from your current home to the next are almost impossible to get today.

Determine the best time for your move.
If you want to move in the summertime, start your other preparations early enough to meet that goal.

Foreclosure Relief Plan Help for Buyers?

The Obama housing plan attacks two problems that are creating a vicious cycle in the nation’s housing market.

I am just not sure what it really does for Buyers.   We need Buyers to Buy the homes already on the Market.

Anyway…

First, Obama’s plan offers $200 billion to provide refinancing for some homeowners who owe more than their homes are now worth-shorthanded as being “underwater” on their mortgages. To qualify, these homeowners-5 million of them by administration estimates-must have their mortgages in the hands of Fannie Mae or Freddie Mac, the mortgage finance giants that the government seized last September.

“We have been advocating for one unified approach to help modify or refinance delinquent and underwater loans and thus we think this program will undoubtedly help servicers keep more at-risk borrowers in their homes, which is a crucial step to helping stabilize the mortgage and housing markets,” stated John A. Courson, president and CEO of the Mortgage Bankers Association (MBA).

Many of these homeowners would like to take advantage of today’s historically low interest rates and refinance but can’t, since the law prohibits refinancing if the current mortgages reflects less than 80% of the homes’ values. These homeowners now can seek to refinance if their mortgages are up to 5% higher than the present-day values of their homes. That helps some, but it won’t reach lots of homeowners in California, Florida and elsewhere whose homes are now worth substantially less than their mortgages.

Because most mortgages are bundled into securities and sold into a secondary market, it’s often difficult for homeowners to find out whether Fannie or Freddie owns their loans or whether they’ve been pooled with other loans and sold by an investment bank to other investors.

Second, Obama’s plan attacks the problem of affordability. The administration provides another $75 billion in incentives to help prevent foreclosures in cases in which the homeowners, up to 4 million of them, are about to lose their homes. The money comes from the $700 billion bailout fund approved last October.

Under this complex portion of the plan, the president offers a stream of financial incentives to mortgage servicers, who are essentially bill collectors for private investors who own pools of U.S. mortgages. Some incentives stay with the servicers while others flow through to investors.

In exchange for the incentives, a servicer would modify a mortgage so that no more than 38% of a homeowner’s monthly after-tax income was taken by the monthly mortgage payment. The government then would step in and share the cost of reworking that mortgage so that no more than 31% of the borrower’s monthly income was tied up in the payment.

This could result in some mortgages carrying interest rates as low as 2% for five years. Critics think that this mortgage subsidy interferes with the natural process of letting the marketplace find the floor on home prices.

Let’s just h.o.p.e THIS plan works~

Freddie Mac’s REO Rental Initiative for Foreclosure Occupants

March 17, 2009-Freddie Mac (NYSE: FRE) launched its new REO Rental Initiative giving qualified tenants and former owners the option to lease their recently foreclosed properties on a month-to-month basis. The REO Rental Initiative will be managed by HomeSteps®, Freddie Mac’s national real estate unit, and implemented through several national property management firms.

Freddie Mac also announced it will continue to suspend all eviction actions until April 1, 2009 to ensure there is ample time for current occupants to learn about the options available to them under the new initiative.

“Freddie Mac’s REO Rental Initiative can help ease a foreclosure’s impact by giving renters and former owners more time to determine what options are best for them and their families. At the same time, the REO Rental Initiative helps stabilize property values and local communities by keeping homes occupied and less vulnerable to vandalism,” said Ingrid Beckles, Senior Vice President, Default Asset Management at Freddie Mac.

Property management firms will begin the process of contacting occupants of foreclosed properties to determine their interest in staying in the home and their eligibility for a month-to-month lease. Occupants will be contacted only after the foreclosure gives Freddie Mac the legal authority to offer a lease.

To qualify for a lease, the tenant or former owner must occupy the property and show they have adequate income to pay the monthly rental amount established by the property management company based on market rents for the area in which the home is located. Occupants must agree to allow HomeSteps to show the home to potential buyers as it will be marketed for sale during the lease period.

Additionally, the home must be in safe, habitable condition and meet all local codes for rental properties to qualify for the REO Rental Initiative.

If an occupant does not wish to lease the property, Freddie Mac will continue its current practice of offering relocation assistance. In addition, Freddie Mac will also explore available workout options with owner-occupants after Freddie Mac gains title to the property through foreclosure.