Folsom Homes

The Future of Folsom Real Estate

Govt may give you $6,500 to move!

As most know, the First Time Home Buyer Tax Credit has been extended until April 30, 2010.  What some don’t know is that the new Act includes language granting a tax credit to Move-Up Buyers. The IRS describes this feature as follows (IRS Website 12/17/09):

“The Worker, Homeownership, and Business Assistance Act of 2009 extends the deadline for qualifying home purchases from Nov. 30, 2009, to April 30, 2010. Additionally, if a buyer enters into a binding contract by April 30, 2010, the buyer has until June 30, 2010, to settle on the purchase.

The maximum credit amount remains at $8,000 for a first-time homebuyer –– that is, a buyer who has not owned a primary residence during the three years up to the date of purchase.

But the new law also provides a “long-time resident” credit of up to $6,500 to others who do not qualify as “first-time homebuyers.” To qualify this way, a buyer must have owned and used the same home as a principal or primary residence for at least five consecutive years of the eight-year period ending on the date of purchase of a new home as a primary residence.

For all qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 tax returns”

Win The Day~

Jeff Werolin

Werolin Real Estate Group

Manager, Lyon Folsom

916.741.9505 Cell

JWerolin@GoLyon.com

HotNorCalHomes.com


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REO sales are a bust. Traditional sales rule in Sacramento Region

A shift in the market has occurred in the Sacramento region, putting traditional sales (non-distressed properties) in the lead for units sold over REO and short-sale properties.

Out of the 1,995 total sales in the 4 county region in November, traditional sales accounted for 42% of all sales. REO units represented 37%, and short-sale units made up 21% of sales.

This change has occurred due to marked appreciation in both REO and short-sales under $300,000 in the last 8 months; and a continued drop in value for traditional properties.

REO home sale prices have experienced a 10% appreciation for homes under 300,000 since the bottom of the market in April; based on average values of $97/ft in April to November’s price of $107/ft.

These are amazing statistics by any measure. Despite the slowing pace of REO sales, the new bargains are the homes not

in trouble but discounted to sell and compete directly with REO and shortsales.

One example: short-sale prices have risen 4% since May, while traditional sales have dropped 4% since April of this year.

Win The Day~

Jeff Werolin

Werolin Real Estate Group

Manager, Lyon Folsom

916.741.9505 Cell

JWerolin@GoLyon.com

HotNorCalHomes.com

 

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CA DRE# 01336771

CIT Bankruptcy cost you $16.67

Well, CIT just failed. That’s after the $2.3 billion government loan that the Treasury Department said would be repaid and needed to be made since CIT is “too big to fail”.   Now the treasury says we will probably not see any of that money repaid.  What a surprise!  The failure is the largest since Washington Mutual went under.

That’s $16.67 for every taxpayer in the United States. Where did some of your money go?

Jeffrey Peek CITs CEO was supposed to get a $20 million severance package for his outstanding recommendations to invest in subprime loans.  Because CIT took government money, he will only get a measly $5 million severance check.

Next up – GMAC.  It’s funny how the government says it ONLY has a 35.4% stake in the company.  GMACs largest shareholder is the US Treasury – bottom line the government owns a major interest in this company; an interest that will be growing as it continues to buy more and more of this great investment.  GMAC is saying they need more bailout money from us to keep operating.  We’ve already given them $13.4 billion – now they need up to $5.6 billion more.  That’s about $138 from every one of us taxpayers.  What has our money earned so far?  GMAC made $1 billion in revenue last quarter and had $4.9 billion in expenses. Based on those figures the $5.6 billion will last about 4 months. Sounds like a good investment to me!

I can’t wait to see how financially successful national healthcare is going to be.  Based on the government track record so far we have a lot to look forward to.

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Win The Day~

Jeff Werolin

Werolin Real Estate Group

Manager, Lyon Folsom

916.741.9505 Cell

JWerolin@GoLyon.com

HotNorCalHomes.com

 

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CA DRE# 01336771

Sacramento foreclosures increase 20% - Sacramento Business Journal:

Sacramento’s foreclosure rate was 13th highest in the nation among the largest 200 U.S. metropolitan areas in the quarter ending Sept. 30, according to foreclosure tracker RealtyTrac, with 2.25 percent of all the households receiving a foreclosure filing, whether a notice of default, notice of a foreclosure sale or a bank repo.

That rate of 1 filing for every 44 houses is a 20 percent increase from the same quarter last year, the online real estate company reported.

Topping the list was Las Vegas, where notices were filed on more than 5 percent of households. Many California areas filled out the top 10, including Merced, Stockton, Modesto, Riverside-San Bernardino-Ontario, Bakersfield, and Vallejo-Fairfield.

The company noted that the Chico area experienced the highest jump in foreclosure filings from a year ago, with nearly double the rate of filing.

via sacramento.bizjournals.com

Sacramento used to be in 8th position - now 13th. I guess that is gaining ground!

Home Buyer Tax Credit is Extended

Good news for the real estate market:

The Home Buyer tax credit has apparently been extended, and eligibility expanded to include some move-up buyers. Details:

·        Income eligibility for first-time home buyers stays at $75,000 for individuals, and $150,000 for couples.

·        For move-up buyers, income eligibility is $125,000 for individuals and $250,000 for couples.

·        There is a minimum 5 year residency requirement - in their current home - for move-up home buyers.

·        The tax credit is the lesser of $7,290 or 10% of the purchase price.

·        The credit runs from Dec. 1, 2009 to April 30, 2010, with an additional 60 day period to close escrow. (So end of April to sign contract, end of June to close escrow)

Nothing is official yet… we expect bill to be signed by Friday, packaged with the unemployment benefit extension.

Win The Day~

Jeff Werolin

Werolin Real Estate Group

Manager, Lyon Folsom

916.741.9505 Cell

JWerolin@GoLyon.com

HotNorCalHomes.com

 

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CA DRE# 01336771

Sacramento Bee circulation falls 14.1 percent - Sacramento Business Journal:

Circulation numbers continue to fall in the newspaper industry.

Locally, the Sacramento Bee’s average weekday circulation fell 14.1 percent in the six months ended Sept. 30, a faster pace than the industry average of 10.6 percent, according to a semiannual report released Monday by the Audit Bureau of Circulations.

The Bee’s daily circulation dipped to 217,545, from 253,248 for the same April-to-September period last year. That’s off from 307,480 in the March 2008 period. ABC publishes circulation reports in the spring and fall.

The Bee’s Sunday circulation dropped 10.4 percent to 267,974, from 299.206, worse than the 7.5 percent fall industry wide.

The McClatchy Co. (NYSE: MNI) publishes The Bee and 29 other daily newspapers. Shares of McClatchy stock dipped 3.8 percent in trading Monday to close at $3.29.

The economy and online sites continues to cut into newspaper readership at a faster pace than previous quarters. The average daily circulation plummet of 10.62 percent was greater than the 7.09 percent in the October-March period, and more than double the 4.6 percent decline in the April-September period of 2008.

Of the top 25 daily U.S. newspapers, only the Wall Street Journal saw an increase in circulation, of 0.61 percent. USA Today endured a 17.15 percent decline, the largest in its history, losing its place as the nation’s leading newspaper. The Wall Street Journal is now the largest daily circulation paper with 2,024,269 readers. USA Today is in second with 1,900,116.

Papers that saw big drops include the San Francisco Chronicle, which saw its circulation fall 25.82 percent to 251,782, from 339,430 for the same period last year.

Others losing readers in especially large batches included the Newark Star-Ledger, with a drop of 22.22 percent; the Dallas Morning News, off 22.16 percent; the Chicago Sun-Times (-11.98 percent); Arizona Republic (-12.3 percent); Houston Chronicle (-14.24 percent); New York Post (-18.77 percent); New York Daily News (-13.98 percent); and Los Angeles Times (-11.05 percent), according to ABC.

via sacramento.bizjournals.com

Good news for trees, bad news for print media - print newpapers subscribers are declining at faster and faster rates. How long do you think it will be before print newspapers go the way of the buggy whips?

California Governor signs SB94 Prohibiting Collection of Advance Fees for Loan Modifications

The Governor signed SB94 today, which among other things, prohibits the collection of advance fees by anyone who negotiates, attempts to negotiate, arranges, attempts to arrange, or otherwise offers to perform residential mortgage loan modifications or other forms of mortgage loan forbearance.  This is a good step forward in curbing foreclosure scams in the State of California.  The law goes into effect immediately.

Win The Day~

Jeff Werolin

Werolin Real Estate Group

Manager, Lyon Folsom

916.741.9505 Cell

JWerolin@GoLyon.com

HotNorCalHomes.com

 

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CA DRE# 01336771

Sacramento ranks No. 94 out of 100 job markets

The Sacramento job market has worsened over the past year, with the region now ranked 94th in a study of the nation’s top 100 job markets, according to a report released Monday. Sacramento ranked 87th in 2008.  The recovery may be starting in some parts of the country but out here in the Sacramento region we still have a ways to go to get back on our feet.

To continue reading, go to: http://sacramento.bizjournals.com/sacramento/stories/2009/10/05/daily4.html?surround=etf&ana=e_article

Win The Day~

Jeff Werolin

Werolin Real Estate Group

Manager, Lyon Folsom

916.741.9505 Cell

JWerolin@GoLyon.com

HotNorCalHomes.com

 

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CA DRE# 01336771