Alice Nuzzo Blog

Real Estate Unleashed - By Carole Rodoni

Tue, 06 Dec 2011 00:00:00 -0800

Presented by Bamboo Consulting Inc. Vol. 36 December 2011

Real Estate Unleashed

By Carole Rodoni

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 18 Nov 2011 00:00:00 -0800

Here’s a look at the rates we’ve been seeing for purchase transactions:

417 FHA 3.750%   0 pt.

417 Conforming 4.000%   0 pt.

625 FHA 3.875%   0 pt.

625 Conforming 4.250%   0 pt.

Jumbo 5/1 3.000%   0 pt.

Jumbo 7/1 3.125%   0 pt.

Jumbo 10/1 4.125%   0 pt.

Jumbo 30 4.500% 0 pt.

Jumbo Rates are based on LTV and Credit Scores.
Lower LTV’s have lower rates.

Tracie

Tracie Southerland

Financial Advisor and
Mortgage Advisor
DRE 01190919
NMLS 296909
650.319.1603

Email · Biography

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 28 Oct 2011 00:00:00 -0700

I have had a lot of questions about the Fed’s 'Operation Twist' Stimulus that was launched a little over a month ago. Here is some background information for you.

The primary goal of “Operation Twist’’, announced by the Fed on September 21st, is to lower borrowing costs for consumers, businesses and the housing sector. In their attempt to accomplish this goal the Fed is selling shorter dated treasuries and buying longer dated bonds hoping to decrease long-term interest rates. In addition to shifting the Fed’s efforts toward longer dated bonds the Fed surprised the markets by stating they would also be specifically targeting mortgage backed securities to lower mortgage rates. This has the dual effect of encouraging refinancing (which in theory increases disposable income) and increasing demand for new home purchases.

How is it working?
It is too early to tell at this point. Rates (measured by the benchmark 10 Year Treasury yield) have actually increased by ~25% from a low of 1.72% the day after Operation Twist was announced to 2.15% as of October 24th. However the increase in rates should not be viewed as a sign of failure for the policy. In mid-September there were other factors at play impacting rates, namely the fear of a meltdown in Europe that led to a subsequent flight into the perceived safety of government debt, driving yields to record lows around the time of the Fed’s announcement. The fact that rates have increased is simply a function of a ‘spring back’ as fears of another credit crisis have subsided.

The direction of rates going forward
Barring a significant negative turn of events in Europe or a recession in the US we would not expect rates to return to the levels seen in September. While rates have risen from all time lows they have stabilized in the 2.15-2.25 range in October. However, given the Fed’s very clear intent to maintain low rates we do not expect to see a material increase in interest rates for the foreseeable future. In addition to the Fed’s actions there are a number of factors keeping rates low including low demand by borrowers, decreasing fiscal stimulus and general uncertainty about the pace of economic recovery going into 2012.

Don’t hesitate to let me know if you have additional questions or would like more information on the 'Operation Twist' Stimulus.

Here's a look at the rates we've been seeing:

417 FHA 3.750%   0 pt.

417 Conforming 4.000%   0 pt.

625 FHA 4.000%   0 pt.

625 Conforming 4.375%   0 pt.

Jumbo 5/1 2.875%   0 pt.

Jumbo 7/1 3.125%   0 pt.

Jumbo 10/1 3.875%   0 pt.

Jumbo 30 4.500% 1 pt.

Tracie

Tracie Southerland

Financial Advisor and
Mortgage Advisor
DRE 01190919
NMLS 296909
650.319.1603

Email · Biography

Weekly Update by Tracie Southerland - Opes Advisors

Sat, 08 Oct 2011 00:00:00 -0700

Here's a look at the rates we've been seeing:

417 FHA 3.750%   0 pt.

417 Conforming 4.000%   0 pt.

625 FHA 3.875%   0 pt.

625 Conforming 4.375%   0 pt.

Jumbo 5/1 3.125%   0 pt.

Jumbo 7/1 3.500%   0 pt.

Jumbo 10/1 4.000%   0 pt.

Jumbo 30 4.625% 1 pt.

Tracie

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 23 Sep 2011 00:00:00 -0700

Here's a look at the rates we've been seeing:

417 FHA 3.750%   0 pt.

417 Conforming 3.750%   0 pt.

625 FHA 3.750%   0 pt.

625 Conforming 3.875%   0 pt.

Jumbo 5/1 3.125%   0 pt.

Jumbo 7/1 3.250%   0 pt.

Jumbo 10/1 3.875%   0 pt.

Jumbo 30 4.500% 1 pt.

Tracie

Tracie Southerland

Financial Advisor and
Mortgage Advisor
DRE 01190919
NMLS 296909

Email · Biography

650.319.1603

Weekly Update from Tracie Southerland - Opes Advisors

Fri, 16 Sep 2011 00:00:00 -0700

Here's a look at the rates we've been seeing:

417 FHA 3.750%   0 pt.

417 Conforming 4.000%   0 pt.

625 FHA 3.750%   0 pt.

625 Conforming 4.250%   0 pt.

Jumbo 5/1 3.125%   0 pt.

Jumbo 7/1 3.500%   0 pt.

Jumbo 10/1 3.875%   0 pt.

Jumbo 30 4.500% 1 pt.

Tracie

Santa Clara County Market Update- through August 2011 by Chris Trapani

Tue, 13 Sep 2011 00:00:00 -0700

Santa Clara County Market Update- through August 2011

Attached, please find the most updated Market Dynamics statistics for Santa Clara County through August 2011. These statistics are for Single Family and Condo/Townhomes in Santa Clara County.

Here are some highlights to pay particular attention to as you review the data/graphs through August 2011:

1. Median Price- The Median Price dipped slightly to $516,000 from last month’s mark of $523,000. August 2011’s median price is less than the same month last year ($530,000) and higher than the same month in 2009 ($500,000) . The two year average Median remains at $509,000.
2. Supply & Demand (Units)- As we clarified in our most recent market updates, what we are measuring in each of these categories is the two year average moving trend; The two year trend line for the following categories, For Sale (supply/inventory), Under Contract (pending sales) and Sold (closed escrows), are as follows - For Sale properties/inventory is trending down slightly @ -2.8%. The number of under contract properties (pending sales) continues to trend up significantly +20.4% and the sold/closed escrows are on an easing downward trajectory -1.6 %. We continue to highlight the increase in pending sales which continue in a positive, upward trajectory this month and are at a two year high of 1785 at of the end of August 2011; in August of 2010 there were 1237 under contract/pending sales…this dramatic increase in pending sales points to strong closing months ahead and a positive finish to 2011.
3. Month’s Supply of Inventory (MSI) & Days on Market- The overall Months Supply of Inventory (months of inventory available based on the total existing supply divided by the rate of sales) continues to decline and remained at or near a five year low of 2.0 months supply at month end, down from last month’s figure of 2.6 months (and less than the level of August 10’/5.4 month’s supply and also less than August of two years ago: 3.4 month’s supply). Days on market increased for the third month in a row, up from 62 to 67 days month over month. The Month’s Supply of Inventory is one marker that should be given particular attention as the lowest month’s supply in several years is keeping pressure on the market and is a factor in sustaining valuations and leading to appreciation potential.
4. Sales Absorption- Once again, we are measuring the two year average trend line in this category which shows under contract properties trended up higher (29%) and number of closed/sold escrows clicked up in positive territory (2.6%) over the past two years (both figures showing increasing strength in compared to the prior month). The most compelling statistic in this graph remains Percent Under Contract (at a five year high)….29.6% of the active properties/listings were under contract at the end of August, which is up from 24.8% in July and 22% in June (as a further comparison August 2010/14% and August 2009/20%). This percent under contract figure is another key marker to pay attention to as the two year average stands at 18.7% and we are presently well above this mark. As we have discussed in our sales meetings, this is the highest percentage of active listings we have seen under contract in nearly 5 years. Additionally, it has been suggested that 25% PUC is the mark of equilibrium in the Bay Area real estate where the market is no longer slanted in favor of the buyer or seller.

From the trenches: As a market indicator, our company-wide weekly sales are well north of $50M for the past two weeks (about $5M ahead per week as compared to the previous few weeks). Multiple offers continue in some areas particularly in Palo Alto and along the Peninsula (a few even in the upper-end) and in the entry level markets from Santa Cruz and throughout Silicon Valley. There have also been more than a few very upper end “off market” sales in our market areas over the past several weeks ranging from $5M to approximately $50M….

We continue to focus on the month’s supply of inventory (MSI- which is at four to five year lows) and the percent of active listings under contract (PUC) which is at a four to five-year+ peak. In a supply and demand market such as real estate, the formula is simple; when you combine these statistics with increasing buyer demand and activity, the result will be a robust market and the beginnings of price appreciation. We anticipate as reasonably strong finish for 2011 (particularly considering the large number of pending sales in the pipeline) with continued momentum into 2012/2013 throughout Silicon Valley and the Bay Area. Much of this advancement and improvement is subject to complex global headwinds and their impact on US Equity Markets and future employment growth in and outside the Bay Area.

We continue to forecast a 10-15% increase in overall bay area sales volume for 2011 over 2010. Despite the global/financial and political headwinds there is much to be optimistic and excited about in the Bay Area in the coming months and years ahead.

Sincerely,

Chris

Chris Trapani

CEO

serenogroup.com

(650) 947-2901

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 09 Sep 2011 00:00:00 -0700

Here's a look at the rates we've been seeing:

417 FHA 3.750%   0 pt.

417 Conforming 3.875%   0 pt.

625 FHA 3.750%   0 pt.

625 Conforming 4.000%   0 pt.

Jumbo 5/1 3.000%   0 pt.

Jumbo 7/1 3.375%   0 pt.

Jumbo 10/1 3.750%   0 pt.

Jumbo 30 4.500% 1 pt.

Tracie

Tracie Southerland

Financial Advisor and
Mortgage Advisor
DRE 01190919
NMLS 296909

Email · Biography

650.319.1603

Carole Rondini's Newsletter Real Estate Unleashed by Carole Rodini Presented by Bamboo Consulting

Wed, 07 Sep 2011 00:00:00 -0700

Real Estate Unleashed By Carole Rodoni Real Estate Unleashed By Carole Rodoni

Presented by Bamboo Consulting Inc.

Vol. 33 September 2011

Weekly Update by Tracie Southerland - Opes Advisors

Tue, 06 Sep 2011 00:00:00 -0700

Here's a look at the rates we've been seeing:

417 FHA 3.750%   0 pt.

417 Conforming 3.875%   0 pt.

729 FHA 3.875%   0 pt.

729 Conforming 4.125%   0 pt.

Jumbo 5/1 3.125%   0 pt.

Jumbo 7/1 3.500%   0 pt.

Jumbo 10/1 4.125%   0 pt.

Jumbo 30 4.750% 0 pt.

Tracie

Tracie Southerland

Financial Advisor and
Mortgage Advisor
DRE 01190919
NMLS 296909

Email · Biography

650.319.1603

Opes Advisors is licensed by the CA Dept. of Real Estate license #01458652, Oregon ML-4902 and NMLS identifier 235584. Equal Opportunity Lender. Opes Advisors is a registered investment advisor with the Securities and Exchange Commission (SEC).

Our mailing address is:

Opes Advisors

555 College Avenue

Palo Alto, California 94306

Add us to your address book

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 26 Aug 2011 00:00:00 -0700

Here's a look at the rates we've been seeing:

417 FHA 3.875%   0 pt.

417 Conforming 4.000%   0 pt.

729 FHA 3.875%   0 pt.

729 Conforming 4.250%   0 pt.

Jumbo 5/1 3.125%   0 pt.

Jumbo 7/1 3.500%   0 pt.

Jumbo 10/1 4.000%   0 pt.

Jumbo 30 4.625%   1 pt.

Tracie

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 19 Aug 2011 00:00:00 -0700

Here's a look at the rates we've been seeing:

417 FHA 3.875%   0 pt.

417 Conforming 4.000%   0 pt.

729 FHA 3.875%   0 pt.

729 Conforming 4.250%   0 pt.

Jumbo 5/1 3.125%   0 pt.

Jumbo 7/1 3.500%   0 pt.

Jumbo 10/1 4.000%   0 pt.

Jumbo 30 4.500%   1 pt.

Tracie

Weekly Update by Tracie Southerland - Opes Advisors

Mon, 15 Aug 2011 00:00:00 -0700

Opes Advisors’ Chief Investment Officer, Mark Duvall, heads up our Wealth Management division which includes senior financial advisors and our real estate investment advisor. I want to share with you their market perspectives for what has been a very tough week for the equity markets and the effects we see on local real estate.

The stock market exhibited extreme volatility over the past week with the big news being the equity markets themselves: on Monday, the S&P 500 fell 80 points, losing 6.7% of its value, and the DJIA fell 634 points, losing 5.5%. In the following days, the markets reversed Monday’s loss by gaining over half back on Tuesday, then reversed down on Wednesday only to rise on Thursday and make up for Wednesday’s losses. Today the markets ended slightly up with a 5-day change of the S&P 500 being down 1.7% and the DJIA down 1.5% for the week.

Until the last 2 weeks, U.S. markets were in positive territory for the year. This had a very positive effect on our local real estate with some of the “star performers” and successful IPO’s in our local communities.

The awful posturing and bickering spectacle in Washington over the debt ceiling, coupled with the ratings downgrade of longer-term (over 1-year) U.S. debt, has frightened many investors when coupled with the difficulties around European sovereign debt.

Bond yields at one point during this volatility were at the lowest point they had been since the Lehman bankruptcy. This was due to heightened uncertainty in the solvency of the European banking systems and a global flight to safety coupled with possible signs of a weakening U.S. economy.

Where we stand is that, while not as robust of a recovery as we would have projected at the beginning of the year, we do not believe there will be a double-dip into another recession. Given this assessment, stocks are now attractively priced relative to bond yields, which is almost always a better time to buy than to sell. Corporate profits are still high, Bay Area corporations fared well relative to many in the downturn, and consumer balance sheets are greatly improved over three years ago.

In the local Bay Area real estate market, many people are refinancing at the low mortgage rates that have accompanied the drop in Treasury bond yields. The stock market will soon find a bottom as moderate valuations attract investors back in, and our strong Bay Area companies are still forecasting growth. We find our clients being more prudent today yet our real estate is recovering and being sought out as a more desirable lifestyle choice as well as a unique opportunity.

While this past week of uncertainty with our political systems and financial systems was unnerving, we do not anticipate that Bay Area markets will have any fundamental change in direction or possibility for the future at this time. What could derail this assessment is further deterioration of the events with the banking systems in Europe and its ripple effect for our US banking system. We will be watching, evaluating and sharing any new assessments with you.

Here's a look at the rates we've been seeing:

417 FHA 4.000%   0 pt.

417 Conforming 4.125%   0 pt.

729 FHA 4.000%   0 pt.

729 Conforming 4.250%   0 pt.

Jumbo 5/1 3.000%   0 pt.

Jumbo 7/1 3.500%   0 pt.

Jumbo 10/1 4.000%   0 pt.

Jumbo 30 4.500%   1 pt.

Tracie

Weekly Update by Tracie Southerland - Opes Advisors

Thu, 11 Aug 2011 00:00:00 -0700

Here's a look at the rates we've been seeing:

417 FHA 4.250%   0 pt.

417 Conforming 4.250%   0 pt.

729 FHA 4.250%   0 pt.

729 Conforming 4.375%   0 pt.

Jumbo 5/1 3.000%   0 pt.

Jumbo 7/1 3.500%   0 pt.

Jumbo 10/1 4.000%   0 pt.

Jumbo 30 4.500%   1 pt.

Tracie

Weekly Update by Tracie Southerland - Opes Advisors

Mon, 18 Jul 2011 00:00:00 -0700

Here's a look at the rates we've been seeing:

417 FHA 4.250%   0 pt.

417 Conforming 4.375%   0 pt.

729 FHA 4.250%   0 pt.

729 Conforming 4.625%   0 pt.

Jumbo 5/1 3.250%   0 pt.

Jumbo 7/1 3.625%   0 pt.

Jumbo 10/1 4.250%   0 pt.

Jumbo 30 4.875%   1 pt.

Tracie

Tracie Southerland

Financial Advisor and
Mortgage Advisor
DRE 01190919
NMLS 296909

Email · Biography

650.319.1603

Carole Rondini's Newsletter Real Estate Unleashed by Carole Rodini Presented by Bamboo Consulting

Fri, 15 Jul 2011 00:00:00 -0700

Real Estate Unleashed By Carole Rodoni

Presented by Bamboo Consulting Inc.

Vol. 31 July 2011

Market Dynamics for Santa Clara County by Chris Trapani with recent Bloomberg articles

Fri, 08 Jul 2011 00:00:00 -0700

Attached, please find the most updated Market Dynamics statistics for Santa Clara County through June 2011. These statistics are for Single Family and Condo/Townhomes in Santa Clara County.

Here are some highlights to pay particular attention to as you review the data/graphs through June 2011:

1. Median Price- The Median Price increased substantially to the highest point yet this year to date ($537,230) and the highest mark since July of last year ($560,000). June 2011’s median price is slightly lower than the same month last year ($550,000) and higher than June of 2009 ($490,000) . The two year average Median is $508,000.
2. Supply&Demand (Units)- We continue to see trend variations and more balance in the two year comparisons than we have observed for the past 12-18 months; Here is where we stand in making the month over month/two-year comparisons (June 2009 versus June 2011) in the following categories; For Sale (supply/inventory), Under Contract (pending sales) and Sold (closed escrows). When we compare 2009 with the same month in 2011 we see the following- For Sale properties/inventory is down considerably @ -4.1%. The number of under contract properties (pending sales) is now up @ +10.7% and the sold/closed escrows are down -15.3 %. We continue to highlight that year over year under contract properties (for April) continue in a positive, upward trajectory; in June of 2010 there were 1333 under contract/pending sales, this June there were 1878 pending sales at month end…this is the most dramatic year over year increase in pending sales we have seen in several years and points to a strong third quarter and second half of 2011.

BLOOMBERG: More Americans than forecast signed contracts in May to buy previously owned homes, signaling the residential real estate market may be rebounding from a slump earlier in the year.

http://bloom.bg/k7ZCB6

3. Month’s Supply of Inventory (MSI) & Days on Market- The overall Months Supply of Inventory (months of inventory available based on the total existing supply divided by the rate of sales) remarkably, continues to decline and is now at arguably a 5+ year low at 2.0 months supply at month end, down from last month’s figure of 2.5 months (and less than the level of June 10’/4.7 month’s supply and also less than June of two years ago- 3.6 month’s supply). After a five month decline, days on market increased slightly from 60 to 65 days month over month. The Month’s Supply of Inventory is one marker that should be given particular attention as the lowest month’s supply in several years continues to be met with increasing buyer’s demand which is pressing the inventory and month’s supply down even further.
4. Sales Absorption- The Absorption metrics, comparing June 2009 vs June 2011 show under contract properties up 19.9% and number of closed/sold escrows down -10.3%. The most compelling statistic in this graph remains Percent Under Contract….28.7% of the active properties/listings were under contract at the end of June, which is up from 26.2% in May and 22.8% in April (as a further comparison June 2010/15.9% and June 2009/19.7%). This percent under contract figure is another key marker to pay attention to as the two year average stands at 17% and we are presently well above this mark. As I have suggested in our sales meetings, this is the highest percentage of active listings we have seen under contract in over 3-4 years. Additionally, it has been suggested that 25% PUC is the mark of equilibrium in the Bay Area real estate where the market is no longer slanted in favor of the buyer or seller.

From the trenches: Through observation and open dialogue at our recent sales meetings and during my office visits the following trends have been noted….Santa Cruz coastal area is experiencing increasing activity in the upper end price ranges and not surprisingly due to the increased liquidity from the equity markets, IPO’s and overall increased employment and economic activity in Silicon Valley- this is being met with some tremendous values on beachfront/view properties...we project steady increases in sales activity in Santa Cruz County following the mounting economic activity in Silicon Valley….Lower and mid-range priced properties seem to be active and moving well and multiple offers being reported across the board for single family homes under $750,000 throughout the bay area… …Los Gatos/Monte Sereno & Saratoga remain quite active under $2M with multiple offers in parts of these areas including the under $1.5M market in Los Gatos/Monte Sereno and the Golden Triangle of Saratoga has been very hot with several multiple offer sales in recent weeks…The upper-end of Los Gatos/Saratoga ($2M, $3M+) has finally begun to see the spark in sales activity that had already been taking place in Palo Alto and Los Altos and several listings north of $3M in these areas (LG/MS/Saratoga) have gone pending this week, including two that were priced in the $5M+ range and that have been on the market for many months…Palo Alto is a “multiple offer” market in most price ranges with properties regularly selling substantially over list (in some cases several hundred thousand higher), this continues to be driven by the typical demand for the area and is being fueled further by increased liquidity which is set to explode in the coming months and next several years given the pending IPO’s…Stay tuned for more information “from the trenches”….if you have stories or examples to share (multiple offers, sales activity information specific to your market or a particular property you are working on) please let me know…

Bloomberg: Homes in the U.S. are the most affordable they’ve been in decades and prices may start to climb as soon as the third quarter, Housing and Urban Development Secretary Shaun Donovan said today.

http://bloom.bg/iyMEvx

We are projecting a 15% increase in overall bay area sales volume for 2011 over 2010. Although we still believe that prices will remain mostly flat/stable/slightly rising with a 1-3% plus or minus variation depending on specific market areas, some recent reports have suggested significant appreciation has occurred in areas such as Palo Alto, Los Altos & Cupertino among others. We continue to experience an improving Silicon Valley market in 2011 which is supported by measurable improvements and increased liquidity in our local economy.

Sincerely,

Chris

Chris Trapani

CEO

serenogroup.com

(650) 947-2901

Los Gatos (408) 335-1400 | Los Altos (650) 947-2900 | Palo Alto (650) 323-1900

Saratoga (408) 741-8200 | Santa Cruz (831) 460-1100 | Willow Glen Coming Soon

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 08 Jul 2011 00:00:00 -0700

Tracie Southerland

Financial Advisor, Mortgage Advisor
DRE 01190919 | NMLS 296909
tsoutherland@opesadvisors.com · 650.319.1603

Here's a look at the rates we've been seeing:

417 FHA 4.250%   0 pt.

417 Conforming 4.500%   0 pt.

729 FHA 4.250%   0 pt.

729 Conforming 4.750%   0 pt.

Jumbo 5/1 3.250%   0 pt.

Jumbo 7/1 3.750%   0 pt.

Jumbo 10/1 4.375%   0 pt.

Jumbo 30 5.000%   1 pt.

Tracie

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 24 Jun 2011 00:00:00 -0700

This Week's Rates

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Here's a look at the rates we've been seeing:

417 FHA 4.250%   0 pt.

417 Conforming 4.375%   0 pt.

729 FHA 4.250%   0 pt.

729 Conforming 4.500%   0 pt.

Jumbo 5/1 3.250%   0 pt.

Jumbo 7/1 3.625%   0 pt.

Jumbo 10/1 4.250%   0 pt.

Jumbo 30 4.875%   1 pt.

Have a good weekend!
Tracie

Tracie Southerland

Financial Advisor and
Mortgage Advisor
DRE 01190919
NMLS 296909

Email · Biography

650.319.1603

Prepared for

Our mailing address is:

Opes Advisors

555 College Avenue

Palo Alto, California 94306

Add us to your address book

Weekly Update by Tracie Southerland - Opes Advisors

Tue, 21 Jun 2011 00:00:00 -0700

Here's a look at the rates we've been seeing:

417 FHA             4.250%   0 pt.

417 Conforming 4.375%   0 pt.

729 FHA                    4.250%   0 pt.

729 Conforming       4.625%   0 pt.

Jumbo 5/1                 3.250%   0 pt.

Jumbo 7/1               3.750%   0 pt.

Jumbo 10/1            4.250%   0 pt.

Jumbo 30              4.875%   1 pt.

Tracie

Tracie Southerland

Financial Advisor and
Mortgage Advisor
DRE 01190919
NMLS 296909

Email · Biography

650.319.1603

Our mailing address is:

Opes Advisors

555 College Avenue

Palo Alto, California 94306

Add us to your address book

Weekly Update by Tracie Southerland - Opes Advisors

Mon, 13 Jun 2011 00:00:00 -0700

Here's a look at the rates we've been seeing:

417 FHA              4.250%   0 pt.

417 Conforming 4.375%   0 pt.

729 FHA              4.250%   0 pt.

729 Conforming 4.625%   0 pt.

Jumbo 5/1           3.250%   0 pt.

Jumbo 7/1     3.625%   0 pt.

Jumbo 10/1         4.250%   0 pt.

Jumbo 30          4.750%   1 pt.

Aloha,
Tracie

Here's a look at the rates we've been seeing:

Real Estate Unleashed By Carole Rodoni

Mon, 13 Jun 2011 00:00:00 -0700

Presented by Bamboo Consulting Inc.

Presented by Bamboo Consulting Inc.

Vol. 30 June 2011

Santa Clara County Market Update- through April 2011 By Chris Tapani CEO Sereno Group Real Estate

Tue, 31 May 2011 00:00:00 -0700

Santa Clara County Market Update- through April 2011

I hope you are having a great and relaxing Memorial Day Weekend…

Attached, please find the most updated Market Dynamics statistics for Santa Clara County through April 2011. These statistics are for Single Family and Condo/Townhomes in Santa Clara County.

Here are some highlights to pay particular attention to as you review the data/graphs through April 2011:

1. Median Price- The Median Price increased substantially for the second month in a row from $480,000 in March to $515,000 at the end of April. April 2011’s median price is somewhat lower than the same month last year ($531,000) and higher than April of 2009 ($430,000) . The two year average Median is $501,000 and we are north of this level now.

2. Supply&Demand (Units)- We continue to see trend variations and more balance in the two year comparisons than we have observed for the past 12-18 months; Here is where we stand in making the month over month/two-year comparisons (April 2009 versus April 2011) in the following categories; For Sale (supply/inventory), Under Contract (pending sales) and Sold (closed escrows). When we compare 2009 with the same month in 2011 we see the following- For Sale properties/inventory is down considerably @ -11.4%. The number of under contract properties (pending sales) is also down -9.1% and the sold/closed escrows declined further @ -19.4 %. We continue to highlight that year over year under contract properties (for April) continue in a positive, upward trajectory; in April of 2010 there were 1698 under contract/pending sales, this April there were 1766 pending sales at month end…
3. Month’s Supply of Inventory (MSI) & Days on Market- The overall Months Supply of Inventory (months of inventory available based on the total existing supply divided by the rate of sales) remains @ a three to four year low at 2.4 months supply at month end, even with last month’s figure (and less than the level of April 10’/3.4 month’s supply and also less than April of two years ago- 4.1 month’s supply). Days on market declined for the fourth month in a row and is now within the 60 day range, down from a peak of 77 days in January. The Month’s Supply of Inventory is one marker that should be given particular attention as the lowest month’s supply in several years is being met by increasing buyer demand in nearly all price ranges and areas.

4. Sales Absorption- The Absorption metrics, comparing April 2009 vs April 2011 show under contract properties up 6.6% and number of closed/sold escrows down -9.2%. The most compelling statistic in this graph remains Percent Under Contract….26.8% of the active properties/listings were under contract at the end of April, which is up from 26.4% in March and 21.4% in February (and higher than April 2010/21.1% and April 2009/17.7%). This percent under contract figure is another key marker to pay attention to as the two year average stands at 17% and we are presently well above this mark. As I have suggested in our sales meetings, this is the highest percentage of active listings we have seen under contract in over 2-3 years. Additionally, it has been suggested that 25% PUC is the mark of equilibrium in the Bay Area real estate where the market is no longer slanted in favor of the buyer or seller.

From the trenches: Through observation and open dialogue at our recent sales meetings the following trends have been noted….Santa Cruz coastal area remains soft in the upper end price ranges, however, some buyers are finding opportunity for great values particularly on beachfront/view properties….Lower and mid-range priced properties seem to be active and moving well…Blossom Valley areas of San Jose seeing uptick in sales activity and slightly increasing prices in some most desirable pockets even in the 700/800k+ price ranges…In Almaden, Listings priced north of $2M and are experiencing few or no showings…Both Willow Glen and Almaden are very active under $1M and some “upper end” in Willow Glen (between $1M and $2M has been moving well)…Los Gatos/Monte Sereno & Saratoga are quite active under $2M with multiple offers in parts of these areas including the under $1.5M market in Los Gatos/Monte Sereno and the Golden Triangle of Saratoga has been very hot with several multiple offer sales in recent weeks…The upper-end of Los Gatos/Saratoga ($2M, $3M+) has not seen the spark in sales activity presently taking place in Palo Alto and Los Altos and several listings north of $3M in these areas (LG/MS/Saratoga) report very few showings…Palo Alto is a “multiple offer” market in most price ranges with properties regularly selling substantially over list (in some cases several hundred thousand higher)…As typical, we do expect to see some increase in the upper end outside of Palo Alto in the coming months (moving south into Saratoga, Los Gatos and beyond) but this may not be at the same pace/timing we might normally see. Palo Alto may be more of an anomaly this year and it may still take some time before we see this sort of sales pace in the upper end in other areas. Stay tuned for more information “from the trenches”….if you have stories or examples to share (multiple offers, sales activity information specific to your market or a particular property you are working on) please let me know…

We continue to focus on the month’s supply of inventory (MSI- which is at three to four+ year lows) and the percent of active listings under contract (PUC) which is at a three-year+ peak. In a supply and demand market such as real estate, the formula is simple; when you combine these statistics with increasing buyer demand and activity, the result will be a robust market and the beginnings of price appreciation.

We are slightly adjusting our forecast downward and expecting a 15% increase (down from 20%) in overall bay area sales volume for 2011 over 2010. We still anticipate that prices will remain mostly flat/stable/slightly rising with a 1-3% plus or minus variation depending on specific market areas, the rate of continued momentum in the economic recovery and several outliers in our valley such as potential liquidity created through IPO’s (or other methods within several non-public companies with significant valuations) and a potential influx of REO listings. We continue to experience an improved market in 2011 which is supported by measurable improvements in our local and national economy.

Sincerely,

Chris Trapani

CEO Sereno Group Real Estate

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 27 May 2011 00:00:00 -0700

Here's a look at the rates we've been seeing:

417 FHA              4.250%   0 pt.

417 Conforming 4.500%   0 pt.

729 FHA              4.375%   0 pt.

729 Conforming   4.625%   0 pt.

Jumbo 5/1           3.500%   0 pt.

Jumbo 7/1           3.875%   0 pt.

Jumbo 10/1         4.500%   0 pt.

Jumbo 30            4.750%   1 pt.

Have a good holiday weekend!
Tracie

Tracie Southerland

Financial Advisor and
Mortgage Advisor
DRE 01190919
NMLS 296909

Email · Biography

650.319.1603

Our mailing address is:

Opes Advisors

555 College Avenue

Palo Alto, California 94306

Add us to your address book

Weekly Update by Tracie Southerland - Opes Advisors

Mon, 23 May 2011 00:00:00 -0700

Here's a look at the rates we've been seeing:

417 FHA              4.375%   0 pt.

417 Conforming 4.625%   0 pt.

729 FHA              4.500%   0 pt.

729 Conforming   4.750%   0 pt.

Jumbo 5/1           3.750%   0 pt.

Jumbo 7/1           3.875%   0 pt.

Jumbo 10/1         4.625%   0 pt.

Jumbo 30            4.750%   1 pt.

Have a good weekend!
Tracie

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 13 May 2011 00:00:00 -0700

Here's a look at the rates we've been seeing:

417 FHA              4.250%   0 pt.

417 Conforming 4.500%   0 pt.

729 FHA              4.375%   0 pt.

729 Conforming   4.750%   0 pt.

Jumbo 5/1           3.750%   0 pt.

Jumbo 7/1     4.000%   0 pt.

Jumbo 10/1         4.625%   0 pt.

Jumbo 30          5.875%   1 pt.

Have a good weekend!
Tracie

Tracie Southerland

Financial Advisor and
Mortgage Advisor
DRE 01190919
NMLS 296909

Email · Biography

650.319.1603

Prepared for

You are receiving this email because you signed up on our website or at a company event. Unsubscribe from this list | Update your subscription preferences

Our mailing address is:

Opes Advisors

555 College Avenue

Palo Alto, California 94306

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Real Estate Unleashed - By Carole Rodoni

Fri, 06 May 2011 00:00:00 -0700

Presented by Bamboo Consulting Inc. Vol. 29 May 2011

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 15 Apr 2011 00:00:00 -0700

Here’s a look at the rates we've been seeing:

417 FHA              4.750%   0 pt.

417 Conforming 4.875%   0 pt.

729 FHA              4.750%   0 pt.

729 Conforming 5.000%   0 pt.

Jumbo 5/1           4.250%   0 pt.

Jumbo 7/1     4.500%   0 pt.

Jumbo 10/1         5.000%   0 pt.

Jumbo 30          5.250%   1 pt.

Have a good weekend!
Tracie

Tracie Southerland

Financial Advisor and
Mortgage Advisor
DRE 01190919
NMLS 296909

Email · Biography

650.319.1603

Prepared for

Family & Children Services Charity Golf Classic at Los Altos Golf & Country Club

Tue, 29 Mar 2011 00:00:00 -0700

Family & Children Services Charity Golf Classic

Please register to golf for a Great cause! Family & Children Services Charity Golf Classic at Los Altos Golf & Country Club May 16, 2011.

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 25 Mar 2011 00:00:00 -0700

One of the reasons FHA loans have been so popular is because the minimum down payment is 3.5%. FHA loans are also available up to a maximum of $729,750, so they work well in places like the San Francisco Bay Area where home prices are high.
Beginning April 18, 2011, the FHA mortgage insurance premium (MIP) will increase from 1% up to 1.15% of the loan amount for low down payment borrowers. This means that for a $729,750 loan amount the MIP payment increases the monthly loan payment by $152 per month. FHA mortgage insurance varies by loan term and by loan-to-value, and borrowers pay for FHA insurance in two parts: an annual premium, which is the premium that will increase on the 18th, and an upfront premium which will not change at this time.
If you have buyers who are considering an FHA loan, you may want to have them talk with me now. Loans that are assigned an FHA case number by the close of business on Friday, April 15th, will qualify for the current FHA MIP pricing and avoid the price increase.

Here’s a look at current rates:

417 FHA              4.625%   0 pt.

417 Conforming 4.875%   0 pt.

729 FHA              4.750%   0 pt.

729 Conforming   4.875%   0 pt.

Jumbo 5/1           4.000%   0 pt.

Jumbo 7/1     4.375%   0 pt.

Jumbo 10/1       4.750%   0 pt.

Jumbo 30          5.125%   1 pt.

Weekly Update by Tracie Southerland - Opes Advisors

Wed, 23 Mar 2011 00:00:00 -0700

Recently we’ve been asked to come in on several transactions where the buyer’s lender was unable to perform and we were asked to take over. In every case so far we have been able to get a loan approval. I think it is important to understand why. It is not magic.

As a mortgage bank, we’re well versed in the guidelines for all lenders – Wells Fargo, Chase, BofA, GMAC, US Bank, etc., since we sell the loans after close to all of these banks. They all have their quirks – even with standard conforming loans and definitely with jumbo products. For instance, on an investment property, Bank of America will not allow a borrower to use rents to offset the debt unless they have current landlord history (meaning they currently own investment property) however, Wells Fargo and Chase will allow this.

If your buyer is using a broker or going to a bank directly and the loan officer doesn’t know these more obscure guidelines then problems can arise and you won’t find out until your transaction is well underway. As a mortgage bank, we underwrite to all investors so we know at the beginning the challenges the loan may present and we can determine where the loan fits best. We underwrite the loan, fund it in-house and then transfer the servicing once the loan is closed. Oh and by the way, were nice people too.

In this market knowing the nuances of every investor is critical to a smooth close of escrow.

Tracie

Here’s a look at current rates:

417 FHA             4.500%    0 pt.

417 Conforming    4.750%    0 pt.

729 FHA                   4.625%    0 pt.

729 Conforming        4.875%    0 pt.

Jumbo 5/1                4.125%    0 pt.

Jumbo 7/1        4.375%    0 pt.

Jumbo 10/1    5.000%    0 pt.

Jumbo 30           5.500%    0 pt.

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 25 Feb 2011 00:00:00 -0800

The purchase market has been insanely busy, and we're starting to see multiple offers being made on homes (as you well know). In this kind of market, being able to close quickly is a huge advantage - and three weeks to close is not a problem for us at all. I just want you to keep this in mind as you enter into the weekend and are considering offers you may be making.

Now for a look at the rates we've seen this past week:

417 FHA                  4.750%        0 pt.

417 Conforming       4.875%        0 pt.

729 FHA                    4.750%        0 pt.

729 Conforming         5.250%         0 pt.

Jumbo 5/1                 4.375%        0 pt.

Jumbo 7/1           4.875%        0 pt.

Jumbo 10/1       5.250%        0 pt.

Jumbo 30          5.50%         1 pt.

Tracie

Carole Rondini's Newsletter Real Estate Unleashed by Carole Rodini Presented by Bamboo Consulting

Fri, 25 Feb 2011 00:00:00 -0800

Carole Rodoni's eNewsletter -- Real Estate Unleashed February 2011 Edition

Presented by Bamboo Consulting Inc.

Vol. 26 Feb. 2011

Santa Clara County Market Update through January 2011 by Chris Trapani President & CEO of Sereno Group Real Estate

Fri, 18 Feb 2011 00:00:00 -0800

Santa Clara County Market Update- through January 2011 by Chris Trapani President & Ceo of Sereno Group Real Estate with articles:

BLOOMBERG: U.S. Stocks Advance Amid Higher-Than-Estimated Economic Data, Earnings

Regional Spotlight: New Year Ushers in Houston’s First Increase in Home Sales in Seven Month’s

I hope you are having a great week and that 2011 has brought some early, positive momentum for you.

Attached, please find the most updated Market Dynamics statistics for Santa Clara County through January 2011. These statistics are for Single Family and Condo/Townhomes in Santa Clara County.

Here are some highlights to pay particular attention to as you review the data/graphs through January 2011:

1. Median Price- The Median Price declined from $499,000 in December 2010 to $468,000 at the end of the first month of 2011. This is a typical early year decline that we have seen from December/January in each of the past 3 years. January 2011’s median price is slightly lower than January of 2010 ($475,000) but higher than January two years ago ($417,000). Based upon increasing sales activity moving into higher price ranges, we anticipate reaching a two year high in the median at some point as we move through 2011.

2. Supply&Demand (Units)- We are now beginning to see trend variations and balance to the two year comparisons we have observed for the past 12-18 months; Here is where we stand in making the month over month/two-year comparisons (January 2009 versus January 2011) in the following categories; For Sale (supply/inventory), Under Contract (pending sales) and Sold (closed escrows). When we compare 2009 with the same month in 2011 we see the following- For Sale properties/supply remain significantly down by 20.1%. The number of under contract properties (pending sales) remains up slightly at 2.3% and the sold/closed escrows also up slightly by 2.4%. I do want to point out that year over year under contract properties (for January) are up significantly; in January of 2010 there were 1007 under contract, this January there were 1585 pending sales at month end!

3. Month’s Supply of Inventory (MSI) & Days on Market- The overall Months Supply of Inventory (months of inventory available based on the total existing supply divided by the rate of sales) is @ a two year low at 2.3 months supply at month/year end, down from last month’s figure of 3.5 (and less than 1/3 the level of Jan 09/7.2 months supply). Days on market is still hovering in the 80+ day range at January month-end. This should continue to be noted with sellers when setting expectations for reasonable marketing periods. The Month’s Supply of Inventory is one marker that should be given particular attention as the lowest month’s supply in several years is being met by increasing buyer demand in a variety of price ranges.

4. Sales Absorption- The Absorption metrics are compelling to note with the comparison of January 2009 vs January 2011 showing under contract properties up dramatically @ 22% and closed/sold escrows also up nearly 21%. 26.7% of the active properties/listings were under contract at the end of January, which is up significantly from 18.2% in December of 2010 (and higher than Jan 10/16.6% and Jan 09/10.4%). This percent under contract figure is another key marker to pay attention to. As I have suggested in our sales meetings, this is the highest percentage of active listings we have seen under contract in over 2 years. Additionally, it has been suggested that 25% PUC is the mark of equilibrium in the Bay Area real estate market. This is the point of balance where we are no longer in a buyer or a seller’s market.

As we have illustrated in the last several reports of 2010, we continue to experience an increase in buyer activity and pending sales activity early in this new year. This momentum and level of new sales activity has not been seen in four years (since 2007) this early in a new year. One of the similar signs we are seeing as compared to last year is the delayed closings/longer escrow periods that are likely attributable to a variety of factors such as financing delays/challenges and short sale activities. The distinction from early 2010, however, is the sizable sales pipeline we see this year which is encouraging and providing further evidence of the Bay Area real estate and economic recovery.

Much of this increase in activity is being driven by an economy that continues to accelerate, record profitability for many companies (specifically the technology sector which has a tremendous impact on Silicon Valley), the climbing stock market (reaching a 32 month high today-see Bloomberg article below) as well as extended tax cuts that run through 2011 and 2012. Furthermore, this increased confidence is now being met with historically low interest rates, realistic prices/valuations in many segments of the market and a very low supply of inventory as illustrated in our statistics above. There are many reasons to be optimistic about Silicon Valley and the Bay Area in 2011. According to RIS Media, even Houston, got off to a great start in 2011.

BLOOMBERG: U.S. Stocks Advance Amid Higher-Than-Estimated Economic Data, Earnings

U.S. stocks rose, sending the Standard & Poor’s 500 Index to a 32-month high, as improving corporate earnings and manufacturing data overshadowed higher- than-forecast growth in consumer prices.

http://www.bloomberg.com/news/2011-02-17/stock-index-futures-in-u-s-retreat-after-consumer-price-claims-reports.html

Regional Spotlight: New Year Ushers in Houston’s First Increase in Home Sales in Seven Month’s

http://rismedia.com/2011-02-16/regional-spotlight-new-year-ushers-in-houstons-first-increase-in-home-sales-in-seven-months/

The two data points that we are paying particular attention to in the Bay Area this year is the month’s supply of inventory (MSI- which is at two+ year lows) and the percent of active listings under contract (PUC) which are at a two-year+ peak. In a supply and demand market such as real estate, the formula is simple; when you combine these statistics with increasing buyer demand and activity, the result will be a robust market and the beginnings of price appreciation.

I am still forecasting a 15%-20% increase in overall sales volume for 2011 over 2010. I anticipate that prices will remain mostly flat/stable/slightly rising with a 1-3% plus or minus variation depending on specific market areas, the rate of continued momentum in the economic recovery and several outliers in our valley such as potential liquidity created through IPO’s (or other methods within several non-public companies with significant valuations) and a potential influx of REO listings. Overall, we are already experiencing a much improved market in 2011 which is now clearly supported by significant and measurable improvements in our local and national economy.

Sincerely,

Chris

Weekly Update from Tracie Southerland - Opes Advisors

Fri, 11 Feb 2011 00:00:00 -0800

The IRS recently ruled in the taxpayer’s favor that it will not follow a tax court ruling that limited the amount of deductible home mortgage interest to $1 million. In short, the IRS ruling allows a taxpayer to deduct mortgage interest on up to $1.1 million of debt that is used to acquire, construct, or substantially improve a primary or second home, provided there is at least $100,000 of home equity securing the loan. The IRS rejected the tax court's holding that a taxpayer must demonstrate that debt treated as home equity indebtedness was not used for acquisition purposes because the definition of "home equity indebtedness" in the tax code §163(h)(3)(C) contains no such restriction.

For many years, the interpretation of the deductibility of mortgage interest varied among tax professionals. Some interpreted the IRC more liberally than others and would deduct interest on up to $1.1 million in mortgage regardless of whether or not it was one loan of $1.1 million or a first mortgage of $1 million and a second mortgage of $100,000 (or more). Others adhered to a stricter interpretation when the debt exceeded $1,000,000. In such cases, practitioners limited the tax deduction to the interest payments associated with the first $1 million of indebtedness, unless a second mortgage against the property was in place.

The IRS Publication #936 Home Mortgage Interest (pg. 9) confirms that home equity indebtedness can include debt used to acquire a home if it exceeds the $1 million acquisition indebtedness limit. Although the precedential value of a revenue ruling generally does not override an opinion of the Tax Court (which has nationwide jurisdiction), when the IRS position is more favorable to the taxpayer than the court's, the issue is unlikely to be raised at the audit level. Consequently, the IRS has signaled to taxpayers that they will not be challenged on audit if they deduct interest on up to $1.1 million of indebtedness that is used to acquire, construct, or improve their primary residence and/or one additional residence if there is at least $100,000 of equity in the home (or homes) that secure the mortgage.

This is welcome news for homeowners, especially those in high cost areas where it’s not uncommon for home mortgage loans to be for more than $1 million.

And now for a look at the rates we've been seeing this week:

417 FHA                4.750%        0 pt.

417 Conforming       4.875%        0 pt.

729 FHA                        4.875%        0 pt.

729 Conforming         5.125%         0 pt.

Jumbo 5/1                    4.500%        0 pt.

Jumbo 7/1              4.875%        0 pt.

Jumbo 10/1          5.250%        0 pt.

Jumbo 30                5.625%         1 pt.

Have a good weekend!
Tracie

Tracie Southerland

Financial Advisors and
Mortgage Advisor
DRE 01190919
NMLS 296909

Email · Biography

650.319.1603

Prepared for

You are receiving this email because you signed up on our website or at a company event. Unsubscribe from this list | Update your subscription preferences

Our mailing address is:

Opes Advisors

555 College Avenue

Palo Alto, California 94306

Add us to your address book

Bloomberg news: Pending Sales of Existing Homes Rose in December - By Shobhana Chandra - Jan 27, 2011 7:37 AM PT

Thu, 27 Jan 2011 00:00:00 -0800

By Shobhana Chandra - Jan 27, 2011 7:37 AM PT

The number of Americans signing contracts to buy previously owned homes rose in December for a third month, showing the industry that triggered the recession was stabilizing heading into 2011.

http://www.bloomberg.com/news/2011-01-27/pending-sales-of-existing-homes-in-the-u-s-rose-in-december.html

Bloomberg news: Sales of New Homes in U.S. Rise More Than Forecast - By Shobhana Chandra - Jan 26, 2011 1:21 PM PT

Thu, 27 Jan 2011 00:00:00 -0800

Bloomberg: Purchases of new houses in the U.S. rose more than forecast in December, propelled by a record surge in the West as buyers in California may have rushed to qualify for a state tax credit before it expired.

Sales climbed 18 percent to a 329,000 annual pace, figures from the Commerce Department showed today in Washington. The percentage gain was the biggest since 1992, and was led by a record 72 percent jump in the West

http://www.bloomberg.com/news/2011-01-26/sales-of-new-homes-in-u-s-rose-more-than-forecast-in-december-up-18-.html

Market Statistics for Santa Clara County Year End through December 2010 by Chris Trapani

Mon, 24 Jan 2011 00:00:00 -0800

Santa Clara County Market Update Year End Through 12/10

I hope you are enjoying the continued improvement in our Silicon Valley real estate market as we are fully immersed in 2011.

Attached, please find the most updated Market Dynamics statistics for Santa Clara County through December 2010. These statistics are for Single Family and Condo/Townhomes in Santa Clara County.

Here are some highlights to pay particular attention to as you review the data/graphs through December of 2010:

1. Median Price- The Median Price increased slightly from $506,000 in November to close out 2010 at $507,000 which is slightly higher than the mark of $500,000 at the end of 2009 . All bay area counties including San Mateo, Santa Clara and Santa Cruz Counties are experiencing increasing sales activity as we closed out 2010 and this momentum of new/pending (open sales) has carried over into 2011. We had projected a year end Median of $520,000.

2. Supply&Demand (Units)- We continue to see a significant distinction in pendings and solds, however, some balance in the inventory category as we make the two year month over month comparisons (December 2008 versus 2010) in the following categories; For Sale (supply/inventory), Under Contract (pending sales) and Sold (closed escrows). To illustrate when we compare 2008 with the same month in 2010 we see the following- For Sale properties/supply remains down 21.2% . The number of under contract properties (pending sales) remains- UP +8.4% and the sold/closed escrows also is up an impressive 15.3%. The overall pattern and direction of this market for the past 12-18 months has declining overall supply/inventory (which has only recently started to increase in this comparison), increasing new sales and closed escrows. I would also point out that year over year under contract properties are up significantly; in December of 2009 there were 938 new sales, this past December of 2010, 1,316.

3. Month’s Supply of Inventory & Days on Market- The overall Months Supply of Inventory (months of inventory available based on the total existing supply divided by the rate of sales) is @ a two year low at 2.7 months supply at month/year end, down from last month’s figure of 3.4 (also lower than Dec 09/4.5months supply). This is down from a 2+ year peak of 14.2 months in January of 08. Days on market has averaged between 45 and 60 days for the past 7-8 months and has increased over the past three months to 70, 75 and now stands around 80+ days on market average (this should be noted in setting realistic marketing expectations).

4. Sales Absorption- The Absorption metrics are quite compelling with the comparison of December 2008 vs December 2010 with under contract properties up 33.4% and closed/sold escrows up 38.2%. 22% of the active properties/listings were under contract at the end of December 2010 (a two year high!), which is up from 20% in November of 2010 (up from 18.1% in October of 2010 and much stronger than a mark of 15.8% in December of 2009.).

As we have indicated in the last several reports, we are experiencing an increase in pending sales activity that has carried us strongly into 2011. This momentum and level of new sales activity has not been seen in four years (since 2007) this early in a new year. December of 2009 was a tremendous closing month (the highest volume closing month of the year in 2009), however, this was driven mainly by expiring government incentives and stimulus programs (not due to any specific or measurable improvements in the economy). The closed volume in December of 2009 also did not carry over into the first quarter of 2010 and therefore the 2010 market did not pick up steam until the end of Q1/early Q2 with the bulk of sales/closing activity peaking out in June, then coming to a stall late last Summer.

The main distinction this year is that pending sales activity/momentum has been steadily picking up steam over the past few months and as we closed out 2010 (although it did not result in the level of closed volume recorded last December) the carryover demand is more than encouraging. This is being driven by an economy that continues to accelerate, record profitability for many companies (specifically the technology sector which has a tremendous impact on Silicon Valley), the climbing stock market as well as extended tax cuts that run through 2011 and 2012. Furthermore, this increased confidence is now being met with historically low interest rates, realistic prices/valuations in many segments of the market and a very low supply of inventory as illustrated in our statistics above.

RIS Media- Recovery on Move: December 2010 Existing Home Sales Jump 12.3%- http://rismedia.com/2011-01-20/recovery-on-move-december-2010-existing-home-sales-jump-12-3-percent/

At Sereno Group, we continue to benefit from being at the pulse and center of global innovation, technology and real estate sales activity. As an indicator of overall improvement in the San Francisco Bay Area real estate market, Sereno Group closed $800 million in sales in 2010 which was up from a mark of $600 million in 2009. We are projecting company-wide sales of $1 billion for 2011. Other market improvements can be observed by glancing at the epicenter of the commercial real estate market in Silicon Valley, Palo Alto, which has less than 3% vacancy as demand for commercial space has increased in such desirable areas.

The two statistics that need to be given most attention in the Bay Area early in 2011 are the month’s supply of inventory (which are at or nearly at two+ year lows) and the percent of active listings under contract which are at a peak or close to the year-end peak as compared to any time over the past several years. In a supply and demand market the formula is simple; when you combine these statistics with increasing demand, the result will be a robust market and the beginnings of price appreciation.

I am forecasting a 15%-20% increase in overall sales volume for 2011 over 2010. I anticipate that prices will remain mostly flat/stable/slightly rising with a 1-3% plus or minus variation depending on specific market areas, the rate of continued momentum in the economic recovery and several outliers in our valley such as potential liquidity created through IPO’s or other methods within several non-public companies with significant valuations. Overall, we are already experiencing a much improved market in 2011 and which appear to be supported by significant and measurable improvements in our local and national economy.

I am certain that 2011 will be our best year yet!

Sincerely,

Chris Trapani, CEO

Sereno Group Real Estate

Market Dynamics for Santa Clara County 11/1/08-11/10 by Chris Trapani with recent Bloomberg articles

Mon, 03 Jan 2011 00:00:00 -0800

Santa Clara Market Dynamics 11/8-1110

Attached, please find the most updated Market Dynamics statistics for Santa Clara County through November 2010. These statistics are for Single Family and Condo/Townhomes in Santa Clara County.

Here are some highlights to pay particular attention to as you review the data/graphs through November of 2010:

1. Median Price- The Median price clicked up in Santa Clara County and ended the month of November at $510,000, down slightly from $525,000 in October. The SCC Median reached its low point in March of 2009 at $415,000. All bay area counties including San Mateo, Santa Clara and Santa Cruz Counties are experiencing surging sales activity as we are closing out 2010 and this momentum of new/pending (open sales) carrying over into 2011 is the strongest we have observed since the end of 2006 entering into 2007. With this recent increased activity we are projecting a positive finish to 2010 with healthy sales activity across the board and projecting a year end Median of $520,000. December 2009 ended with a Median Price of $500,000.

2. Supply&Demand (Units)- We continue to see a significant distinction as we make the two year month over month comparisons (November 2008 versus 2010) in each of the following categories; For Sale (supply/inventory), Under Contract (pending sales) and Sold (closed escrows). To illustrate when we compare 2008 with the same month in 2010 we see the following- For Sale properties/supply continues to remain significantly: down -22.7%. The number of under contract properties (pending sales) continues to remain- up +22.9% and the sold/closed escrows remain up +23.9% . The general pattern and direction of this market for the past 12-18 months continues to be the same story; declining overall supply/inventory, increasing new sales and closed escrows.

3. Month’s Supply of Inventory & Days on Market The overall Months Supply of Inventory (months of inventory available based on the total existing supply divided by the rate of sales) is at the “lowest point” over the past two years at 2.9 months supply at month end (which is down from 3.5 months supply in October 2010 and 4.1 months in November 2009). This is down from a 2 year peak of 14.2 months in January of 08. Days on market has averaged between 45 and 60 days for the past 7-8 months and has increased over the past three months to 70 and now stands around 75 days on market average.

4. Sales Absorption- The Absorption metrics have been consistently compelling with the comparison of November 2008 vs November 2010 with under contract properties up 50.4% and closed/sold escrows up 47.7%. 22.3% of the active properties/listings were under contract as of November 2010, up from a final figure of 19.2 percent in November of 2010 (and higher than the 18% mark in November of last year).

As I previously indicated in this report, we are experiencing an increase in pending sales activity carrying well over into the coming new year. This momentum and level of new sales activity has not been seen in four years. December of 2009 was a tremendous closing month (the highest volume closing month of the year in 2009), however, this was driven mainly by expiring government incentives and stimulus programs (not due to any specific or measurable improvements in the economy). This closed volume in December of 2009 also did not carry over into the first quarter of 2010 and therefore this year’s market did not pick up steam until the end of Q1/early Q2 with the bulk of sales/closing activity peaking out in June, then coming to a stall later in the Summer.

The main distinction this year is that pending sales activity/momentum has been steadily picking up steam over the past few months and as we close out December (although it will not result in the level of closed volume recorded last December) the carryover volume is more than encouraging. This is being driving by an economy that is accelerating much quicker than many estimated in several sectors (see several recent Bloomberg articles below). Furthermore, a recent article on the front page of the SJ Mercury News noted that even a possible national double dip in housing will likely have little impact on the Bay Area market due to the strength of the tech market and other factors in Silicon Valley. I am projecting the strongest first two quarters in terms of overall sales volume since the first half of 2007.

Bloomberg: Jobless Claims in US decrease to lowest level in two years: http://www.bloomberg.com/news/2010-12-30/jobless-claims-in-u-s-decreased-more-than-estimated-to-388-000-last-week.html

Bloomberg: Pending Sales of Existing US Homes Increase more than Estimated: http://www.bloomberg.com/news/2010-12-30/pending-sales-of-existing-homes-rose-3-5-in-november-exceeding-forecasts.html

Bloomberg: US Consumer Spending, Capital Investment increase in sign of Momentum: http://www.bloomberg.com/news/2010-12-23/consumer-spending-climbed-in-november-for-a-fifth-month-as-incomes-grew.html

At Sereno Group, we are fortunate to be at the pulse and center of global innovation, technology and real estate sales activity. As we predicted in our previous reports, we are now seeing the year-end pickup in activity which is being buoyed by the mounting positive economic news in the US and corresponding stock market upswing/stability. As an indicator of overall improvement in the San Francisco Bay Area real estate market in comparison to 2009, Sereno Group remains significantly up in sales volume (40%) this YTD as compared to 2009. The remaining three peer companies are up between 5 and 12% this year to date as compared to last year. The good news is that each of the top four companies which includes Sereno Group are up in year over year sales volume from last year.

I am now forecasting a 15%+ increase in overall sales volume for 2011 over 2010. I anticipate that prices will remain mostly flat/stable with a 1-3% plus or minus variation depending on specific market areas, the rate of continued momentum in the economic recovery and other variables such as the Euro’s handling of its debt crisis. Overall, I expect that we will see a much improved market in 2011 and we are now completing 2010 with momentum backed by significant and measurable improvements in the national and local economy.

Happy New Year!

Sincerely,

Chris Trapani

CEO

Sereno Group Real Estate

Carole Rondini's Newsletter Real Estate Unleashed by Carole Rodini Presented by Bamboo Consulting

Mon, 03 Jan 2011 00:00:00 -0800

Bamboo Vol 25 Jan 2011

January 2011 Edition of Carole Rodoni's eNewsletter -- Real Estate Unleashed

Carole Rondini's Newsletter Real Estate Unleashed by Carole Rodini Presented by Bamboo Consulting

Thu, 16 Dec 2010 00:00:00 -0800

Real Estate Unleashed Presented by Bamboo Consulting Inc. Vol. 24 Dec. 2010

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 10 Dec 2010 00:00:00 -0800

New Fannie Mae lending guidelines that go into effect December 13, 2010 will make securing a mortgage easier for some and more difficult for others. Here are some specifics you should know about these new guidelines:

DTI RATIO

The new maximum debt-to-income ratios will drop to 45% from 55%, which could make it more difficult for some buyers to secure a mortgage loan.
Borrowers who are at the end of their current mortgages with 10 or fewer payments will now have these remaining balances counted in the DTI ratio, which is a departure from previous Fannie Mae rules.

MISSED PAYMENT
Buyers who miss a payment will have 5% of the total balance added to their debt-to-income ratios. (Previously, Fannie Mae ignored a missed payment or required that the lender add a few percentage points to the total balance when calculating the DTI ratio.)

BORROWERS WITH FORECLOSURE EXCLUED FROM FANNIE-BACKED LOANS FOR 7 YEARS
Borrowers who have gone through a foreclosure will be excluded from obtaining a Fannie-backed loan for seven years (up from four). This change was announced separately from the gift and debt rules, but will also take effect in Fannie Mae’s automated underwriting systems next month.

GIFTS/GRANTS TOWARDS DOWN PAYMENT
Buyers can use grants from nonprofit groups or gifts from family members for their minimum 5% down payment (which is the threshold set by Fannie Mae). Previously, borrowers had to contribute a minimum 5% down payment from their own funds, but additional down payment money could be from a gift (though never from a home seller). The exception was for borrowers who put 20% down: all that money could come as a gift. The gift rules apply only to single-family principal residences, including town houses, co-ops and condominiums, and covers mortgage amounts in excess of 80% of the property’s value.

FANNIE LOAN LIMITS THROUGH SEPTEMBER 30, 2011
Fannie Mae has indicated that the general loan limits for mortgage loans originated on or before September 30, 2011, will remain unchanged from 2010 limits, which means $417,000 for a one-unit property in the continental U.S. and $729,750 for designated high-cost areas for a one-unit property in the continental U.S. For mortgage loans originated after September 30, 2011, revised "permanent" high-cost area limits will apply.

Though some of these guideline changes are more significant than others, they are all evidence of Fannie Mae’s attempt to protect itself against recent problems seen in the mortgage industry. Keep these in mind as you work with clients interested in purchasing a new home.

And now here's a look at the rates we've been seeing this week:

30 year conforming 4.375% 0 pt.
30 year high balance 4.625% 0 pt.
30 year FHA 4.250% 0 pt.
30 Yr. FHA high balance 4.375% 0 pt.
5 year jumbo 3.750% 1 pt.
7 year jumbo 4.125% 1 pt.
10 year jumbo 4.500% 1 pt.
30 year jumbo 5.125% 1 pt.

Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

www.opesadvisors.com

Santa Clara County Market Update through October 2010 From Chris Trapani CEO Sereno Group Real Estate

Fri, 03 Dec 2010 00:00:00 -0800

Santa Clara County Market Update Through Oct. 2010

Attached, please find the most updated Market Dynamics statistics for Santa Clara County through October 2010. These statistics are for Single Family and Condo/Townhomes in Santa Clara County.

Here are some highlights to pay particular attention to as you review the data/graphs through October of 2010:

1. Median Price- The Median price clicked up in Santa Clara County and ended the month of October at $535,000, up from $520,000 in September. The SCC Median reached its low point in March of 2009 at $415,000. Over the past two weeks, we have seen a resurgence of sales activity including some higher end offers and sales between $2 and $5M+ in our market areas. This, coupled with the increased pending sales activity in October/November will likely lead to a fairly steady Median price range as we close out 2010. December 2009 ended with a Median Price of $500,000 and I am right in line with my projection for a year end Median of $525,000 in SCC.

2. Supply&Demand (Units)- We continue to see a significant distinction as we compare October 2008 with 2010 in each of the following categories; For Sale (supply/inventory), Under Contract (pending sales) and Sold (closed escrows). To illustrate when we compare 2008 with the same month in 2010 we see the following- For Sale properties/supply continues to remain significantly: down 27.7%. The number of under contract properties (pending sales) continues to remain- up 34.7% and the sold/closed escrows remain up 27.4% . The general pattern and direction of this market for the past 12-18 months continues to be the same story; declining overall supply/inventory, increasing new sales and closed escrows.

3. Month’s Supply of Inventory & Days on Market The overall Months Supply of Inventory (months of inventory available based on the total existing supply divided by the rate of sales) is at the lowest point over the past two years at 2.8 months supply at month end (which is down from 4.0 months supply in September 2010 and 3.4 months in October 2009). This is down from a 2 year peak of 14.2 months in January of 08. Days on market has averaged between 45 and 60 days for the past 7-8 months and has increased over the past three months to nearly 70 days on market average.

4. Sales Absorption- The Absorption metrics have been consistently compelling with the comparison of October 2008 vs September 2010 with under contract properties up 72.24% and closed/sold escrows up 61.58%. 22.5% of the active properties/listings were under contract as of October 2010, up from a final figure of 17.4 percent in September of 2010.

The first half of 2010 was significantly stronger than the same time period 2009. We had a slight slowdown over the summer months of this year which is not all that uncommon from a seasonal perspective. This slowdown, however, did correspond with some global economic concerns mainly surrounding the Euro and resulted in a temporarily declining stock market in the US. The past several weeks have seen renewed confidence, and signs of hope that the economic recovery is picking up momentum. The DOW has responded and has mostly remained above 11,000 most recently and the past two days has climbed above 11,300. This is been powered by positive developments and reports mainly in areas of employment, retail sales and real estate. Two Bloomberg articles* posted today highlight the factors leading the reasons for increased optimism which is also driving up the US and Bay Area pending sales activity as we close out 2010.

*Bloomberg: Stocks Gain, Treasuries Fall, on Retail, Home Sales Data; http://www.bloomberg.com/news/2010-12-02/asian-stocks-rise-set-for-best-gain-in-a-month-dollar-commodities-climb.html

*Bloomberg: Pending sales of US existing houses jumps a record 10% in October, indicating the industry at the center of the last recession is stabilizing as the job market improves; http://www.bloomberg.com/news/2010-12-02/pending-sales-of-existing-homes-in-u-s-increased-a-record-10-in-october.html

At Sereno Group, we are fortunate to be at the pulse and center of global innovation, technology and real estate sales activity. As I predicted in my previous reports, we are now seeing the year-end pickup in activity which is being buoyed by the mounting positive economic news in the US and corresponding stock market upswing. As an indicator of overall improvement in the San Francisco Bay Area real estate market in comparison to 2009, Sereno Group remains significantly up in sales volume (42.35%) this YTD as compared to the same period in 2009. The remaining three peer companies are up between 7.5 - 13.86% this year to date as compared to last year. The good news is that each of the top four companies which includes Sereno Group are up in year over year sales volume from last year. Of course, I am pleased that Sereno Group is far outpacing the competition in terms of sales growth and we are aiming to continue this pattern in 2011.

I am now forecasting a 12% increase in overall sales volume for 2011 over 2010. I anticipate that prices will remain mostly flat/stable with a 3-5% plus or minus variation depending on specific market areas, the rate of continued momentum in the economic recovery and other variables such as the Euro’s handling of its debt crisis. Overall, I expect that we will see an improved market in 2011 and we are now heading into the final stage of 2010 with headwinds that have more substance than the mostly government backed stimulus that drove the increased sales at the end of 2009.

Sincerely,

Chris Trapani CEO Sereno Group Real Estate

Carole Rondini's Newsletter Real Estate Unleashed by Carole Rodini Presented by Bamboo Consulting

Fri, 03 Dec 2010 00:00:00 -0800

Carole Rodoni's December 2010 Newsletter Presented by Bamboo Consulting Inc.Vol. 24 Dec. 2010

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 19 Nov 2010 00:00:00 -0800

Once again it is our privilege to pause and say thank you for all that we have been given. I wish you the best of times with your family and friends and leave you with this thought:

“We can only be said to be alive in those moments when our hearts are conscious of our treasures.”
~Thornton Wilder

And now here's a look at the rates we've been seeing this week:

30 year conforming 4.250% 0 pt.
30 year high balance 4.375% 0 pt.
30 year FHA 4.250% 0 pt.
30 Yr. FHA high balance 4.375% 0 pt.
5 year jumbo 3.625% 1 pt.
7 year jumbo 4.000% 1 pt.
10 year jumbo 4.625% 1 pt.
30 year jumbo 5.000% 1 pt.

Have a wonderful holiday,
Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 05 Nov 2010 00:00:00 -0700

Lately we’ve had inquiries about the differences between a traditional bank, mortgage broker and mortgage bank, especially in light of recent Bank of America news that they are exiting their wholesale lending business. Realtors and other real estate professionals should be clear on the advantages and disadvantages of each lending sales channel.

A home buyer can get a mortgage loan in one of three ways: Through a traditional bank, a mortgage broker or a mortgage bank.

Traditional Bank
A traditional bank, such as B of A, Wells Fargo and Chase, works directly with retail loan officers at their respective companies and the bank underwrites and funds the loan. After the loan closes it is usually packaged with other loans and sold to the investment world. Each month the bank cashes the borrower’s mortgage payment, keeps a little for itself, and then passes the money on to the investor that purchased the loan. One benefit of getting a mortgage loan from a traditional bank is that they promise the money for the transaction; it is the bank’s checkbook that funds the loan. A downside to this type of mortgage loan is that the borrower is limited to that bank’s loan programs and rates, and it is time consuming and costly to switch to another loan provider.

Mortgage Broker
A mortgage broker is a person or company that has relationships with traditional banks through each bank’s wholesale channel. They also have the ability to broker to other lenders who would otherwise be unknown to the customer. The broker sends the borrower’s documentation to one of the lenders for the loan to be underwritten, approved and funded. Essentially, brokers can go to any of the banks they have relationships with, and they have the freedom to switch to any other bank. In practice, this has become more difficult due to disclosure regulations and timing. Additionally, during the past few years many banks have closed their wholesale channels. Bank of America is the most recent to do so. The benefit of working with a mortgage broker is that the customer has multiple choices of possible lenders, programs and rates. The major drawback is that the brokers have little control because they are not underwriting, preparing documents or funding the loan themselves.

Mortgage Bank
A mortgage bank, like Opes Advisors, can offer the best of both worlds. A mortgage bank is similar to a traditional bank in that it processes, underwrites, draws docs and funds loans, thereby maintaining control of the entire process. The mortgage bank will then sell the loans after the close of escrow. They typically sell these loans to one of the major banks through their correspondent channel. A mortgage bank can also broker loans when this option is optimal or necessary for the customer due to qualifying issues or program requirements.

So a mortgage bank maintains the two most important aspects of the transaction: it promises the money and it is also not beholden to any one lender, loan program or rate. If needed, at any time in the course of a transaction, a mortgage bank can switch to a different lender provided the lender’s guidelines are met by the borrower. With a mortgage bank your clients can get the best of both worlds.

Opes Advisors takes the ‘best of both worlds’ one step further when we help our clients make financial decisions that are inclusive of their overall financial goals. We review their financial plan and give them confidence that their decisions are consistent with their financial ambitions.

Here's a look at the rates we've been seeing this week:

30 year conforming 3.750% 1 pt.
30 year high balance 3.875% 1 pt.
30 year FHA 3.750% 1 pt.
30 Yr. FHA high balance 3.875% 1 pt.
5 year jumbo 3.500% 1 pt.
7 year jumbo 3.750% 1 pt.
10 year jumbo 4.250% 1 pt.
30 year jumbo 4.750% 1 pt.

Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

www.opesadvisors.com

Carole Rondini's Newsletter Real Estate Unleashed by Carole Rodini Presented by Bamboo Consulting

Tue, 02 Nov 2010 00:00:00 -0700

Real Estate Unleashed by Carole Rodini Vol. 23 11/10

Presented by Bamboo Consulting Inc. Carole Rodini's Newsletter: Real Estate Unleashed by Carole Rondini

Vol. 23 Nov. 2010

Weekly Update by Tracie Southerland - Opes Advisors

Tue, 26 Oct 2010 00:00:00 -0700

http://www.opesadvisors.com/downloads/retirementplan.pdf

I wanted to share an email (above) with you that we recently sent about the surprising facts behind retirement planning and financial decision making.

This email addresses some primary factors that impact our customers’ ability to make a decision about purchasing a home. When we work with home buyers to assess how their purchase will affect their longer-term goals it gives them confidence that enables them to move forward with their home purchase decision. Our long-term scenario planning helps clients to understand exactly how much home they can afford and what type of mortgage will be best for them, and when home buyers are aware of their goals and needs they’re more confident with their purchase.

Now on to rates for this week...

30 year conforming 3.875% 1 pt.
30 year high balance 3.875% 1 pt.
30 year FHA 3.750% 1 pt.
30 Yr. FHA high balance 3.875% 1 pt.
5 year jumbo 3.500% 1 pt.
7 year jumbo 3.875% 1 pt.
10 year jumbo 4.250% 1 pt.
30 year jumbo 4.750% 1 pt.

Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

www.opesadvisors.com

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 08 Oct 2010 00:00:00 -0700

Rates are still amazing. One note – for the past many months I have been giving you rates with 1 point. This week I have switched the pricing to reflect 0 points. The pricing available right now is better at the 0 point option than with points, and the recovery or breakeven point for paying points is not as attractive as it has been over the past year. (Of course every day and every price point is different so we make that assessment with clients at the point of locking.)

30 year conforming 4.000% 0 pt.
30 year high balance 4.250% 0 pt.
30 year FHA 4.000% 0 pt.
30 Yr. FHA high balance 4.125% 0 pt.
5 year jumbo 3.875% 0 pt.
7 year jumbo 4.125% 0 pt.
10 year jumbo 4.500% 0 pt.
30 year jumbo 4.625% 0 pt.

Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

October 2010 Edition of Carole Rodoni's eNewsletter -- Real Estate Unleashed

Fri, 01 Oct 2010 00:00:00 -0700

Real Estate Unleashed - By Carole Rodoni Vol. 22

Presented by Bamboo Consulting Inc.

Market Dynamics - Los Altos Months of Supply of Inventory

Thu, 23 Sep 2010 00:00:00 -0700

Months Supply of Inventory 08/08-08/10

Months of Supply of Inventory 2 years (Monthly) 08/01/08 - 08/31/10. BrokerMetrics® Graph.

Market Dynamics - Los Altos Hills Median Price (Sold)

Thu, 23 Sep 2010 00:00:00 -0700

Los Altos Hills Median Price 08/01/08 - 08/31/10

Los Altos Hills Median Price (Sold) - 2 Years (Monthly) 08/01/08 - 08/31/10. BrokerMetrics® Graph.

Market Dynamics - Los Altos Median Price (Sold)

Thu, 23 Sep 2010 00:00:00 -0700

Market Dynamics Los Altos Hills - Median Price (Sold) 2 Years (Monthly) 08/01/08 - 08/31/10. BrokerMetrics® Graph.

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 10 Sep 2010 00:00:00 -0700

With the end of the year fast approaching, we all know that the clock is ticking on the $729,750 loan limit that is so valuable for our area. These limits have been extended twice in our government’s effort to stimulate the housing market, and there’s widespread support from elected officials and industry groups to continue with a third extension. Without an extension the maximum loan limit would drop back down to $625,500 at the end of the year, but the pricing of those loans would begin to deteriorate much sooner than that.

While nothing is set in stone yet, recent activity proves promising for an extension of these limits. In late July, House and Senate committees approved language for a HUD appropriations bill to extend the $729,750 conforming loan limit through September 30, 2011. With the Senate’s summer recess the process has slowed, but continued resolution is expected in the upcoming weeks.

Industry groups, including the Mortgage Bankers Association, are rallying for enactment of the extension before October 1, 2010. This would help to avoid market disruptions that might occur within 90 days of high-cost loan limits expiring. In past years the lack of certainty regarding the extension had an impact on borrowers’ ability to obtain affordable financing. Some lenders stopped underwriting loans at the current interest rates due to uncertainty as to the stability of the loans. Considering such time-sensitive complications, we hope to see an extension made shortly.

Now, on to the rates we've been seeing this week:

30 year conforming 4.125% 1 pt.
30 year high balance 4.250% 1 pt.
30 year FHA 4.250% 1 pt.
30 Yr. FHA high balance 4.250% 1 pt.
5 year jumbo 3.875% 1 pt.
7 year jumbo 4.125% 1 pt.
10 year jumbo 4.500% 1 pt.
30 year jumbo 5.000% 1 pt.

Regards,
Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

www.opesadvisors.com

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 03 Sep 2010 00:00:00 -0700

I wish you all some well-deserved time off this Labor Day Weekend.

Hopefully you found the information I sent earlier this week useful.
Now, on to the rates we've been seeing this week:

30 year conforming 4.00% 1 pt.
30 year high balance 4.125% 1 pt.
30 year FHA 4.00% 1 pt.
30 Yr. FHA high balance 4.125% 1 pt.
5 year jumbo 3.50% 1 pt.
7 year jumbo 4.375% 1 pt.
10 year jumbo 4.750% 1 pt.
30 year jumbo 4.875% 1 pt.

Regards,
Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

www.opesadvisors.com

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Information from Tracie Southerland - Opes Advisors

Thu, 02 Sep 2010 00:00:00 -0700

We are in a unique time in history. Home prices are down even in our most desirable areas and interest rates are at the lowest in 50 years.

Clients I speak with often ask the questions, "But, what if housing drops further? And also, where are interest rates headed? How can I time the bottom of the housing market and the interest rates?"

As all of us know, we can never perfectly time "the bottom" or "the top". However, saying that, we think that now is one of the most opportune times.

There are two indicators that we believe illustrate this point. As shown in the graph below, after nearly a decade of deviating substantially from long-term projections, housing prices are now reverting closer to their 40-year trend line.

As illustrated in the graph below, mortgage rates are at their lowest level since formal recording of rates began 50 years ago.

The table below shows the impact of higher interest rates on purchase price. Generally speaking, for every 1% difference in rate there will be about a $86,000 differential in the purchase price for approximately the same monthly payments. Example below:

Note: Tax situations for every client will effect these results slightly.

In summary, a rise in interest rates will quickly offset any benefit of further price drops. We can't time the market, and we can't claim to know the future. However, when you look at the facts above, it is apparent this unique time in history provides our clients with an incredible opportunity.

Regards,
Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

www.opesadvisors.com

Market Statistics for Santa Clara County 7/1/08-7/31/10 by Chris Trapani Sereno Group Real Estate

Thu, 02 Sep 2010 00:00:00 -0700

Market Statistics for Santa Clara County 7/1/08-7/1/2010 by Chris Trapani

Here are some highlights to pay particular attention to as you review the data/graphs through July of 2010:

1. Median Price- Despite some recent negative news about the slide in the number of home sales for July, the Median Price increased in SCC in July to $562,000 (highest point over past two years since August of 2008/$570,000) from $550,000 in the prior month (which is $52,000 than July one year ago). The SCC Median reached its low point in March of 2009 at $415,000- so we have experienced an trough to date Median price increase of approximately 36%. As we predicted over the last few months of 2009 and beginning of 2010, we experienced a higher rate of upper end sales in Santa Clara County (particularly between 2-5+ million) during most of the first six months of 2010. As a significant number of these “upper end” properties close escrow in the first half of 2010, the median price in SCC climbed well into the $550,000 range. We did experience a slight slowdown over the summer, however, activity has started to move back into the $1.5-3m price ranges over the past two weeks and I anticipate a decent second half with good sales activity across the board.

2. Supply&Demand (Units)- We continue to see a significant distinction as we compare July 2008 with 2010 in the following categories; For Sale (supply/inventory), Under Contract (pending sales) and Sold (closed escrows). To illustrate when we compare July 08 with the same month in 2010 we see the following- For Sale properties/supply continues to remain significantly: down 43.6%. The number of under contract properties (pending sales) continues to soar- up 46% and the sold/closed escrows are up an impressive 31.9%. The pattern and direction of this market for the past 12 months continues to be the same story; declining overall supply/inventory, increasing new sales and closed escrows.

3. Month’s Supply of Inventory & Days on Market- The overall Months Supply of Inventory (months of inventory available based on the total existing supply divided by the rate of sales) remains near all-time low levels at 3 months supply at month end (which is down from 3.2 months supply in June 2010). This is down from a 2 year peak of 14.2 months in January of 08. NAR Months Supply of Inventory came in at 3.7 months for July (SCC continues to lead the national figures) Days on market has averaged between 45 and 60 days for the past 7-8 months, and has increased slightly over the past three months from 55 to 60 days .

4. Sales Absorption- The Absorption metrics are quite compelling with the comparison of July 2008 vs July 2010 with under contract properties up an incredible 145.3% and closed/sold escrows up 123%. 22.1% of the active properties/listings were under contract as of July 30, 2010, up from a final figure of 21.1 percent in June of 2010.

Our area is leading the way for the US in the economic recovery. California is leading the nation per most economists and Northern California, in particular Silicon Valley/Bay Area, is leading Southern California. We are fortunate to be at the pulse of real estate sales activity. As I reported earlier, the market did take a slight pause over the summer as some of the higher end sales activity cooled slightly from its first half pace. However, based on new sales activity over the past week or two, indications are that there are buyers in the upper end and properties in the $2-3m+ range will continue to sell if they are desirable and priced appropriately. Remember, in 2009 we had a very slow start and ended the year with tremendous activity as government stimulus brought many buyers out into the market (December of 2009 was the biggest closing month of the year last year). In 2010, we have had a significant sales volume increase in comparison to (much due to the increased median/higher priced home sales coming back to life) the first half of 2009, while I expect the second half of this year to be respectable, I don’t anticipate the rush/push of year end activity we experienced in 2009. 2010 will end up being a tremendous year for Sereno Group as an organization and the beginning of a turning point in a positive direction for the real estate market overall.

As a company, Sereno Group remains significantly up in sales volume (65%+) this YTD as compared to the same period in 2009. Most of the market and leading peer companies are up between 15-20% this year to date as compared to last year which is a strong indication for overall improving market conditions. We continue to work through the most balanced, healthy and active residential real estate market we have seen in over 2-3 years.

Thank you and have a great week.

Sincerely,

Chris

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 13 Aug 2010 00:00:00 -0700

The very essence of life is that it can change abruptly. And, clearly what happened in the real estate, mortgage, credit and stock markets in the past years falls into the “abrupt” category. In addition to the tremendous stress that it presented, the changed financial circumstances brought new choices to evaluate.

One place where it’s always safe to boldly move ahead is in the arena of planning. And, the three Rs are still relevant today. However, they’ve been changed to represent some of the key components of a personal financial strategy: Retirement, Returns and Real Estate.

Retirement: In the the past, many people have thought that maxing out their 401(k) plan was sufficient to fund their retirement. It’s best to reevaluate that approach and determine if that strategy will produce the expected results.
Returns: The returns we’ve seen this decade have been very different from the high returns of the previous two decades. Now is the time to determine what returns are expected going forward and to position one’s portfolio to achieve that. What returns are needed to generate an appropriate retirement income?
Real Estate: Many people in the Bay Area have 50% of their net worth tied up in their home (real estate – including a primary residence home – is an asset class), which means they also have a 50% exposure connected to that single asset. Is there a strategy in place to manage that asset?

There are many questions to consider regarding a home purchase, a refinance decision or managing investments. A comprehensive financial plan helps to avoid actions that could negatively affect one’s overall financial situation, taxes, future wealth and retirement plans.

Opes Advisors provides integrated personal finance services encompassing stocks, bonds, real estate and real estate financing. We regularly create personalized wealth building strategies for our clients by reviewing all of their assets and liabilities, as well as their commitments and long term goals.

Having a valuable plan in place takes away the insecurity of wondering where you stand. If you, or someone you know, needs to create or update their financial strategy, please contact me.

Now, on to the rates we've been seeing this week:

30 year conforming 4.25% 1 pt.
30 year high balance 4.375% .5 pt.
30 year FHA 4.25% 1 pt.
30 Yr. FHA high balance 4.25% 1 pt.
5 year jumbo 3.875% 1 pt.
7 year jumbo 4.125% 1 pt.
10 year jumbo 4.625% 1 pt.
30 year jumbo 4.875% 1 pt.

Regards,
Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

www.opesadvisors.com

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 30 Jul 2010 00:00:00 -0700

As we all know, guidelines and requirements for loan approvals are tighter than they have ever been and are becoming more rigorous still.

With the stringent lending guidelines that are in place I thought it would be a good time to remind buyers (& ourselves) of the 7 Tips to Save Your Sanity while going through the loan process.

Feel free to share this information with clients, or others, that may find this information useful.

Now, on to the rates we've been seeing this week:

30 year conforming 4.25% .25 pt.
30 year high balance 4.25% .5 pt.
30 year FHA 4.25% 0 pt.
30 Yr. FHA high balance 4.375% 0 pt.
5 year jumbo 3.75% 1 pt.
7 year jumbo 4.125% 1 pt.
10 year jumbo 4.50% 1 pt.
30 year jumbo 4.875% 1.5 pt.

Regards,
Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

www.opesadvisors.com

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 23 Jul 2010 00:00:00 -0700

This week President Obama signed the Wall Street Reform and Consumer Protection Act (HR 4173). This bill is focused on tightening regulations across the financial industry in an effort to avoid a repeat of the recent economic crisis. This legislation establishes government oversight in an attempt avoid future “Too Big to Fail” bailouts. A council of regulators will be charged with constraining and even dismantling troubled companies and will reduce the possibility that taxpayers will be responsible for the burden of bailing out financial firms that threaten the economy.

While there are many components of this law, below are a few of the changes that are relevant to the financial services industry:

Improving Protection

The Securities and Exchange Commission (SEC) has begun tightening requirements on investment advisory firms to protect investment clients from unwittingly becoming victims of fraud or Ponzi schemes. Financial advisors are now required to disclose all fees, any disciplinary actions and potential conflicts of interest (e.g., commissions). Additionally, the SEC has the authority to impose a fiduciary duty on those who give investment advice.

Opes fundamental belief is that it’s important to be an informed consumer of financial advice. Since our firm’s inception our investment advisors have worked on our clients’ behalf, not for transaction-based commissions. We disclose our fees and make sure that our prescribed strategies are clearly understood and support our clients’ goals. We issue clear and concise monthly statements, a quarterly economic outlook, and quarterly performance and asset allocation summaries. Our investment managers are all Chartered Financial Analysts^® (CFA^®) or Certified Financial Planners™ (CFP^®), which means they are well educated in the details of financial planning and analysis and are held to a fiduciary standard of care and diligence that exceeds industry norms.

While we already operate under the newly requested standards, there are other firms that may dramatically change the way they run their businesses. We applaud the SEC’s expanding involvement.

Mortgage Updates

Under the new rules, mortgage lenders must verify a borrower’s credit history, income, and employment status. This is an immaterial change for Opes, as we have always followed this process.

Other changes include eliminating pre-payment penalties for homeowners with Adjustable Rate Mortgages (ARM) and prohibiting loan officers from earning bonuses based on the type of loan they sell. Opes believes that borrowers are best served by securing financing for a home in a way that is most effective in taking care of other long term financial concerns - retirement, children’s education and care for aging parents.

$1 billion has been allocated to Emergency Mortgage Relief to provide bridge loans to qualified unemployed homeowners to help cover mortgage payments until they are reemployed.

The goals of this bill are honorable: to promote the financial stability of the United States by improving accountability and transparency in the financial system, to protect American taxpayers by ending bailouts and to protect consumers from abusive financial services practices.

You can read a summary of the 2,200 page bill as included on the United States Senate Committee on Banking, Housing, & Urban Affairs website.

30 year conforming 4.25% .25 pt.
30 year high balance 4.50% 0 pt.
30 year FHA 4.25% 0 pt.
30 Yr. FHA high balance 4.375% 0 pt.
5 year jumbo 3.75% 1 pt.
7 year jumbo 4.125% 1 pt.
10 year jumbo 4.375% 1 pt.
30 year jumbo 5.125% 1 pt.

Regards,
Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

www.opesadvisors.com

Weekly Update by Tracie Southerland - Opes Advisors

Tue, 13 Jul 2010 00:00:00 -0700

With most things in life, it’s nice to be ahead of schedule. Recently, however, The New York Times noted that in 2010 the social security system will pay out more benefits than it receives. While we all knew this day would come we, unfortunately, didn’t expect it to arrive six years ahead of schedule.

The facts are we’ve seen a dramatic shift in the burden of accumulating for one’s retirement. Individuals are responsible for accumulating enough wealth to support their retirement. And the good news/bad news is that we are experiencing a significant change in life expectancy. We get to enjoy life longer but we will probably work longer and have a considerably longer retirement than our parents. We also face uncertain health care costs that can drain portions of our retirement savings.

Here’s the good news:

Studies show that doing planning for these financial matters changes actions (if we don’t know where we are heading, the likelihood of getting there is slim). Once we understand how much will be needed at retirement and what choices available (and that we do have choices), we can move into action to change the trajectory of accumulation and produce satisfactory results.

At Opes Advisors, we regularly work with our clients to help them understand the interdependence of their Stocks, Bonds, Real Estate, and Real Estate Financing and to make effective financial decisions. Managing our clients investments and liabilities through the conflicting tradeoffs of these four components is our unique expertise. This is especially relevant in the Bay Area where real estate is one of the most important assets in our clients' portfolios.

And, as always, below are the rates we've been seeing:

30 year conforming 4.375% 1 pt.
30 year high balance 4.50% 1 pt.
30 year FHA 4.375% 1 pt.
30 Yr. FHA high balance 4.50% 1 pt.
5 year jumbo 3.875% 1 pt.
7 year jumbo 4.25% 1 pt.
10 year jumbo 4.625% 1 pt.
30 year jumbo 5.25% 1 pt.

Regards,
Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

Weekly Update by Tracie Southerland - Opes Advisors

Tue, 06 Jul 2010 00:00:00 -0700

Here's a look at the rates we've been seeing this week:

30 year conforming 4.25% 1 pt.
30 year high balance 4.50% 1 pt.
30 year FHA 4.25% 1 pt.
30 Yr. FHA high balance 4.375% 1 pt.
5 year jumbo 3.875% 1 pt.
7 year jumbo 4.25% 1 pt.
10 year jumbo 4.75% 1 pt.
30 year jumbo 5.25% 1 pt.

See you Tuesday!
Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

www.opesadvisors.com

Carole Rondini's Newsletter Real Estate Unleashed by Carole Rodini Presented by Bamboo Consulting

Tue, 06 Jul 2010 00:00:00 -0700

Real Estate Unleashed Vol 19 July 2010

Real Estate Unleashed by Carol Rodini Vol. 19 July 2010

Presented by Bamboo Consulting

Santa Clara County Market Update through May 2010 by Chris Trapani President & CEO of Sereno Group Real Estate

Wed, 16 Jun 2010 00:00:00 -0700

Santa Clara County Market Update through May 2010 by Chris Tapani President & CEO of Sereno Group Real Estate

Attached, please find the most updated Market Dynamics statistics for Santa Clara County through May 2010. These statistics are for Single Family and Condo/Townhomes in Santa Clara County.

Here are some highlights to pay particular attention to as you review the data/graphs through May of 2010:

1. Median Price- May's Median Price continued its upward trajectory from April 2010/$535,000 to $555,000 in May (which is $65,,000 than May one year ago). The SCC Median reached its low point in March, one year ago at $415,000. As we predicted over the last few months of 2009 and beginning of 2010, we experienced a higher rate of upper end sales in Santa Clara County (particularly between 2-5+ million) during most of the first six months of 2010. As these sales have been and are now closing escrow, the median price in SCC has climbed well above $500,000 and should approach $600,000 this year (last seen in July 2008 ($630,000). We are presently at the highest Median Price point in 21 months for Santa Clara County.

2. Supply&Demand (Units)- We continue to see a dramatic distinction as we compare May 2008 with 2010 in the following categories; For Sale (supply/inventory), Under Contract (pending sales) and Sold (closed escrows). To illustrate when we compare May 08 with the same month in 2010 we see the following- For Sale properties/supply is down 40%. The number of under contract properties (pending sales) is up 43% and the sold/closed escrows are up 44%. The pattern and direction of this market for the past 7-8 months continues to be the same story; declining overall supply/inventory, increasing new sales and closed escrows. Normal seasonality has fully come into play in 2010 as buyer demand continues to amplify moving well into the 2, 3, 4 and 5+ million price ranges at a significant rate as compared to the same time last year. Some of this activity decreased slightly over Memorial Day and for a few weeks after following more typical, seasonal sales patterns. As we have moved into summer break, we are seeing some increasing activity again and anticipate a strong push of sales mid to late summer and continuing as we head into fall of this year.

3. Months Supply of Inventory & Days on Market- The overall Months Supply of Inventory (months of inventory available based on the total existing supply divided by the rate of sales) dwindled down to a 2 year low range of 2.2 months supply at month end (about par with April 2010). This is down from a 2 year peak of 14.2 months in January of 08. Days on market has averaged between 45 and 60 days for the past 7-8 months, and was in the 50 day range in SCC for May 2010.

4. Basic Absorption- The declining residual inventory levels is one of the most significant factors over the past two years (the remaining inventory each month excluding pending sales, closed sales and new listings). This segment is down -59% when comparing May 2008 and May 2010. More and more of the less desirable or unrealistically priced properties are either now selling (in the case of unrealistically priced- prices are being adjusted) or coming off the market. The other metrics are quite compelling with the comparison of May 2008 vs May 2010 we see Under Contract Properties/pendings increasing and up 43% and New listing inventory coming on the market is now down 21%.

5. Percent Under Contract- This is typically one of the most telling statistics of all because this is @ the line of scrimmage, where the market is today. Essentially when looking @ this stat, we are factoring of all the available inventory what percentage is under contract or a pending sale. Typically in any area we have seen where @ least 1 for every 4 available listings (25%) is under contract, we have a stable or appreciating market. Whenever we have seen this factor less than 1 out of 10 or less than 10%, we have sign prices in more of a correction mode. We can look back historically and display where this occurred in pockets throughout SCC @ different times and how this was impacting values to the down or upside. SCC dipped slightly for the first month in 4 months to 27.7% of all the available listings/supply under contract/in escrow. This overall percentage has continued its progression for the past 15 months even though it is down from last month's fully adjusted figure of over 28.4%. This is a 137% increase when compared to May of 2008 when this figure for SCC was at 11.7%. One year ago May, the percent under contract figure was 19.3%.

In conclusion, the residential real estate market continues to stabilize and improve in Santa Clara County and in the overall bay area market. Listing inventory remains low and in control, even with new inventory coming on, strong buyer demand is consuming these properties in relatively short periods of time. The first six months of 2010 showed sales volume increases across the board when compared to the first six months of 2009. This was driven by increased sales and activity that has moved into the upper price ranges. Increased number of sales plus increasing average sale prices equates to increased overall sales volume. We are fortunate to be right at the pulse of activity and trends and this should be an advantage to our clients and/or those that have an interest in following the most current market trends.

In addition to the positive current rate of sales, one of the most encouraging signs continues to be the high-end sales activity, which was sluggish during much of 2009. This upper-end activity continued to increase through May and particularly in the $2-5+ million ranges. We are experienced a strong second quarter as this YTD (year to date) volume is up when compared to YTD 2009. As a company, Sereno Group is up 100% this YTD as compared to the same period in 2009. Most of the market and leading peer companies are up between 30-40% which is a strong indication for overall improving market conditions. We are in the midst the most balanced, healthy and active residential real estate market we have seen in over 2-3 years.

Thank you and have a great day.

Sincerely,

Chris Trapani

President & CEO

Sereno Group

$10,000 Tax Credit from Tracie Southerland Opes Advisors

Fri, 11 Jun 2010 00:00:00 -0700

Beginning May 1, new California legislation took effect that provides a tax credit up to $10,000 to residents who buy their first home or a newly constructed home.

This legislation has allocated $200 million to fund tax credits for qualified home purchases; $100 million is for buyers of new, unoccupied homes and the other $100 million is for first time buyers of existing homes.

The tax credits are available to home buyers on a first-come, first-served basis. This is an incentive for buyers to act now (as a reminder, the $100 million allocated for last year’s new home buyer program was depleted in just four months).

A notable feature of this year's legislation is that buyers of newly constructed homes may choose to reserve a tax credit prior to the close of escrow. This will become important as California nears the $100 million cap for homes that may not close escrow before the cap is reached. Buyers that are applying for the First-Time Buyer Credit (purchasing existing homes) will not be able to reserve the tax credit before escrow closes. Details about how to reserve the tax credit can be found here.

Below are some highlights of the new tax credit program:

· Buyers of existing homes must close escrow between May 1, 2010 and December 31, 2010.

· Buyers of new homes can reserve their credit by entering into an enforceable contract between May 1, 2010 and December 31, 2010. They must file the proper paperwork with the tax board and close escrow by August 1, 2011.

· First-time home buyers are eligible whether they buy a newly built or an existing home.

· Current homeowners looking to trade up must buy a newly built home in order to receive the tax credit.

· If a taxpayer qualifies for both tax credits, the law specifies that that the New Home Credit be applied (only one tax credit is allowed per taxpayer).

· The tax credit is worth up to 5% of the purchase price of the home, or $10K, whichever is less.

· The credit will be allocated evenly over three years. If a buyer qualifies for the full $10,000 tax credit, they’ll get up to $3,333 per year. They will need to consult with their CPA for details and eligibility as related to their specific situation.

· The buyer cannot be a dependent and the home purchased cannot belong to a relative.

· The buyer is required to live in the home for at least two years or forfeit the credit (i.e., repay it to the state).

Regards,
Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

www.opesadvisors.com

Weekly Update by Tracie Southerland - Opes Advisors

Thu, 10 Jun 2010 16:12:00 -0700

Happy Friday everyone!

And, as always, below are the rates we've been seeing:

· 30 year conforming 4.50% 1 pt.

· 30 year high balance 4.75% 1 pt.

· 30 year FHA 4.50% 1 pt.

· 30 Yr. FHA high balance 4.75% 1 pt.

· 5 year jumbo 4.00% 1 pt.

· 7 year jumbo 4.375% 1 pt.

· 10 year jumbo 5.00% 1 pt.

· 30 year jumbo 5.375% 1 pt.

Regards,
Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

www.opesadvisors.com

SERENO GROUP PRESS RELEASE on Luxury Real Estate

Wed, 02 Jun 2010 14:12:00 -0700

Here is a link to Luxury Real Estate's coverage of Sereno Group's recent recognition as one of the Top 4 most productive residential real estate companies for 2009 as ranked by the Silicon Valley Business Journal.

http://www.luxuryrealestate.com/news/press_releases/2269-sereno-group-real-e

Chris Trapani

CEO

Sereno Group

Real Estate Unleashed by Carole Rodini

Wed, 02 Jun 2010 09:51:00 -0700

Bamboo Publishing June 2010 Presented by Bamboo Publishing Inc. Vol. 18 June 2010

Sereno Group Real Estate Annual Market Report from Chris Trapani

Thu, 20 May 2010 16:08:00 -0700

Sereno Group Market Report

We are pleased to present the attached Sereno Group Real Estate Annual Market Report for 2010. This report compares a variety of 2008/2009 metrics in areas within Santa Clara, San Mateo and Santa Cruz Counties

Sincerely,

Chris Trapani

CEO

Sereno Group

Weekly Update by Tracie Southerland - Opes Advisors

Thu, 20 May 2010 16:02:00 -0700

As you know, Opes Advisors recognizes that most people have two key investment areas: real estate and liquid assets (stocks and bonds). And, for most people, real estate financing is their largest debt.

Traditionally, these investments have been treated as separate entities, without regard to other financial concerns. Opes Advisors' uncommon combination of investment management and mortgage banking expertise makes us uniquely qualified to help our clients understand the interaction of their real estate, real estate financing, stocks and bonds.

This knowledge benefits our clients as we analyze the interdependence of their asset and debt holdings and how different choices impact their long-term financial outcomes. Using this information, we develop meaningful financial plans for our clients, manage their assets and deliver the right mortgages to help them meet their specific goals.

You can read some of our Frequently Asked Questions here. Please feel free to share this with your clients that you refer to me as it will give them more background on my approach to mortgage financing.

And, as always, below are the rates we've been seeing:

· 30 year conforming 4.50% 1 pt.

· 30 year high balance 4.625% 1 pt.

· 30 year FHA 4.50% 1 pt.

· 30 Yr. FHA high balance 4.625% 1 pt.

· 5 year jumbo 4.125% 1 pt.

· 7 year jumbo 4.625% 1 pt.

· 10 year jumbo 4.875% 1 pt.

· 30 year jumbo 5.375% 1 pt.

Regards,
Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

www.opesadvisors.com

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 14 May 2010 13:52:00 -0700

The purchase market certainly has been heating up – which is great news for all of us and you are all keeping me busy. Thank you!

Remember, that regardless of the type of loan you utilize, I continue to make two distinctions when working with our mortgage borrowers. One is the issue of qualifying. Qualifying is simply answering the question of how much and under what circumstances a lender is willing to provide you with a loan. The second issue is affordability. Affordability answers the question whether or not you should have a particular mortgage, debt structure and real estate.

With the immediate and specific results Opes Advantage™ (our proprietary software) provides I can determine which variables can be adjusted to create the most significant impact on your clients’ financial futures. And, it can be instantly modified as often as needed to consider additional scenarios.

Clients that I work with are thrilled with this approach. And, seeing the details of their financial situation eliminates the insecurity of wondering where they stand and gives them the confidence to move forward with a bias for action.

And, as always, below are the rates we've been seeing:

· 30 year conforming 4.75% 1 pt.

· 30 year high balance 4.875% 1 pt.

· 30 year FHA 4.75% 1 pt.

· 30 Yr. FHA high balance 4.875% 1 pt.

· 5 year jumbo 4.375% 1 pt.

· 7 year jumbo 4.75% 1 pt.

· 10 year jumbo 5.00% 1 pt.

· 30 year jumbo 5.375% 1 pt.

Regards,
Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

Market Dynamics Through March 2010

Wed, 14 Apr 2010 17:32:00 -0700

Market Dynamics Through March 2010

Attached, please find the most updated Market Dynamics statistics for Santa Clara County through March 2010. These statistics are for Single Family and Condo/Townhomes in Santa Clara County.

Doom or Gloom? The rhetoric has been similar to an emotional yo-yo for the past 12+ months. Slow recovery, Double-Dip Recession, Shadow Inventory (sounds like a bad dream I had as a child), a big wave of REO's, Inflation/Deflation/Dehydration (ok I added that one) versus a V Shape Recovery, Increasing Corporate Profits, a sharply rising DOW (Broke 11,000 this week since the first time since mid 2008), improving housing market figures (increasing prices in many key areas of the country, increasing Median prices, and more upper end sales). What do we make of all of this? What are we to think or believe?

The Double-Dip Recession talk has quieted down some and now we are seeing some definitive V shape recovery taking place in certain sectors (Retail Sales, Corporate Profits for sure). We are also seeing some explosive residential real estate sales activity as we are moving into the second quarter of 2010. This activity has worked itself well into the upper price ranges with significantly more activity in the $2- $5+ million range during the first quarter of 2010 as compared to Q1 of 2009 (particularly in the SF Bay Area).

Many people are wondering why if corporate profits are strong and the DOW is over 11,000, why they don't feel better? Cramer made a few interesting points on Mad Money yesterday afternoon (yes, one of the benefits of being on Spring Break is that I can watch a little TV). Cramer pointed out that the DOW is more about projecting the health of corporations and specifically corporate profits by looking into the future and pricing equities/stocks based upon these projections. It really does not have anything to do with you or someone on your street or in your town being presently employed or not. It also does not have much to do with seeing the empty retail spaces in any given town filled back up with business owners who are busy being productive and selling to willing and able consumers. The problem, Cramer argued, is that as soon as your neighbor is employed and we sell all of these local signs (new stores opening and real estate spaces being leased up), the opportunity to invest and achieve the maximum gain in equities/stocks will have passed by.

While I am not suggesting that you or anyone go out and buy stocks, and although I may not agree entirely with Cramer I believe he has a point. In investing in stocks or real estate there is risk. Typically and historically less risk when one is purchasing real estate as their primary residence. The risk is a given, there is risk in life. The point I believe that is pertinent is what is carrying over into the current real estate buyers motivation. There are plenty of positive signs and particularly in a robust, economic area such as Silicon Valley for people to be confident that the Bay Area will recover before many parts of the country. In fact, we have seen in the recent CAR Economic updates that even the state of CA as a whole is roughly two years ahead of US in terms of a residential real estate recovery. This means that Silicon Valley is arguably leading the pack of this recovery particularly considering the fact that Southern CA is lagging behind Northern CA. Buyers that are buying now have simply decided that they do not want to wait until the masses decide its "safe" to buy again. If they wait for this, for all the signs to be in place and lastly, the newspapers to say "its time" the best gains will have already been made.

Here are some highlights to pay particular attention to as you review the data/graphs through the first two months of 2010:

1. Median Price- March's Median Price continued its upward trajectory from February 2009/$499,000 to $525,000 in March (which is $110,000 than March one year ago). The SCC Median reached its low point in March, one year ago. As we predicted over the last few months of 2009, we are noting an increasingly higher rate of upper end sales in Santa Clara County (several between 3-5+ million). As these sales are closing escrow, the median price in SCC has already climbed above $500,000 and my approach $600,000 this year (last seen in July 2008 ($801,000).

2. Supply&Demand (Units)- We continue to see a dramatic distinction as we compare early 2008 with 2010 in the following categories; For Sale (supply/inventory), Under Contract (pending sales) and Sold (closed escrows). To illustrate when we compare Mar 08 with the same month in 2010 we see the following- For Sale properties/supply is down -33%. The number of under contract properties (pending sales) is now up an amazing 123% and the sold/closed escrows are up 58%! The pattern and direction of this market for the past 7-8 months continues to be the same story; declining overall supply/inventory, increasing new sales and closed escrows. Normal seasonality is beginning to come into play as buyer demand continues to amplify moving well into the 2, 3, 4 and 5+ million price ranges at a significant rate as compared to the same time last year. Following an increase in sales and slow closing rate due to short sales and financing guidelines and challenges, we are now beginning to see closings coming through at a higher rate. This increasing closing activity in April and in the coming months will have a significant, positive affect on these monthly data points, further pointing to an imminent real estate recovery in Silicon Valley.

3. Months Supply of Inventory & Days on Market- The overall Months Supply of Inventory (months of inventory available based on the total existing supply divided by the rate of sales) dwindled down to a 2 year low range of 1.7 months supply at month end! This is down from a 2 year peak of 14.2 months in January of 08. The Months of Supply of Inventory declined each and every month in 2009 from 7.7 months in January to 2.6 months by year end. Days on market has remained under 60 days for the past 7-8 months, which on average is down about 10 days from the same period one year ago. This reduction in the Days on Market is another indication of the improving residential real estate market.

4. Basic Absorption- The decline in the residual inventory levels continues(the remaining inventory each month excluding pending sales, closed sales and new listings). This segment is down -64% when comparing Mar 2008 and Mar 2010. More and more of the less desirable or unrealistically priced properties are either now selling (in the case of unrealistically priced- prices are being adjusted) or coming off the market. The other metrics are quite compelling with the comparison of Mar 2008 vs Mar 2010 we see Under Contract Properties/pendings increasing and up 123% and New listing inventory coming on the market remaining down 1%.

5. Percent Under Contract- This is typically one of the most telling statistics of all because this is @ the line of scrimmage, where the market is today. Essentially when looking @ this stat, we are factoring of all the available inventory what percentage is under contract or a pending sale. Typically in any area we have seen where @ least 1 for every 4 available listings is under contract, we have a stable or appreciating market. Whenever we have seen this factor less than 1 out of 10 or less than 10%, we have sign prices more in a correction mode. We can look back historically and show where this occurred in pockets throughout SCC @ different times and how this was impacting values to the down or upside. At this point in time, SCC is @ a 2 year high with nearly 33.4% of all the available listings/supply under contract/in escrow. This percentage is substantially up from last month's fully adjusted figure of over 25.2%, and is a 234% increase when compared to March of 2008 when this figure for SCC was at a lowly 10%. One year ago March, the percent under contract figure was 14.9%.

In conclusion, the market stability and strength in the overall bay area residential real estate market is confirmed by these data points. From our sales activity over the past 30 days and increasing even in the past several weeks and months, we are certain to see improving data and statistics in the news as these new sales begin to close escrow. We are fortunate to be right at the pulse of activity and trends and this should be an advantage to our clients and/or those that have an interest in following up to date market trends. In addition to the positive current rate of sales, one of the most encouraging signs is the increasing high-end sales activity, which was sluggish during much of 2009. It will be very interesting to see the upward movement in the median price as these sales begin to close escrow over the next 30, 60 and 90 days. Even given these impressive and encouraging statistics, our salespeople are working harder than ever to represent their buyers and sellers in this market and navigate them through the various hurdles that seem to be commonplace and yet unique in almost every single transaction. We are projecting a strong second quarter and summer market in all price ranges and possibly the most balanced and active market we have seen in over 2-3 years.

Thank you and have a great evening.

Sincerely,

Chris Trapani

President & CEO

Sereno Group

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 09 Apr 2010 14:48:00 -0700

Beginning May 1, new California legislation takes effect that will provide a tax credit up to $10,000 to residents who buy their first home or a newly constructed home.

This legislation allocates $200 million to fund tax credits for qualified home purchases; $100 million is for buyers of new, unoccupied homes and the other $100 million is for first time buyers of existing homes.

The tax credits will be available to home buyers on a first-come, first-served basis. This is an incentive for your buyers to act now (as a reminder, the $100 million allocated for last year’s new home buyer program was depleted in just four months).

A notable feature of this year's legislation is that buyers of newly constructed homes may choose to reserve a tax credit prior to the close of escrow. This will become important as California nears the $100 million cap for homes that may not close escrow before the cap is reached. Buyers that are applying for the First-Time Buyer Credit (purchasing existing homes) will not be able to reserve the tax credit before escrow closes. Details about how to reserve the tax credit can be found here.

Below are some highlights of the new tax credit program:

· Buyers of existing homes must close escrow between May 1, 2010 and December 31, 2010.

· First-time home buyers are eligible whether they buy a newly built or an existing home.

· Current homeowners looking to trade up must buy a newly built home in order to receive the tax credit.

· If a taxpayer qualifies for both tax credits, the law specifies that that the New Home Credit be applied (only one tax credit is allowed per taxpayer).

· The tax credit is worth up to 5% of the purchase price of the home, or $10K, whichever is less.

· The buyer cannot be a dependent and the home purchased cannot belong to a relative.

· The buyer is required to live in the home for at least two years or forfeit the credit (i.e., repay it to the state).

And, although it’s a small window, there are some buyers that may be able to combine this new California tax credit with the $8,000 Federal Home Buyer Tax Credit for a total of $18,000 in tax credits. To do so, the purchase contract must be signed by April 30, 2010 (for Federal eligibility) and the purchase must close between May 1, 2010 (when the California program begins) and June 30, 2010 (when the Federal program ends). For the purposes of the California tax credit, the purchase date is defined as the date escrow closes.

And, as always, below are the rates we've been seeing:

· 30 year conforming 4.875% 1 pt.

· 30 year high balance 5.00% 1 pt.

· 30 year FHA 4.75% 1 pt.

· 30 Yr. FHA high balance 5.00% 1 pt.

· 5 year jumbo 4.50% 1 pt.

· 7 year jumbo 4.875% 1 pt.

· 10 year jumbo 5.375% 1 pt.

· 30 year jumbo 5.50% 1 pt.

Regards,
Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

www.opesadvisors.com

CA Tax Credit Bullet Points from Opes Advisors

Fri, 02 Apr 2010 12:29:00 -0700

Here are some bullet points on the tax credit. Attached is the entire bill.

1.) The credit is only against California Tax actually incurred by a taxpayer. (i.e., Actual State Personal Income Tax (PIT) = Actual credit for that year)

The Personal Income Tax Law authorizes various credits against

the taxes imposed by that law, including a credit against those

taxes in an amount equal to the lesser of 5% of the purchase price

of a qualified principal residence, as defined, or $10,000, for

purchases made between March 1, 2009, and before March 1,

2010, subject to specified restrictions.

This bill would authorize a credit against those taxes in an

amount equal to the lesser of 5% of the purchase price of a qualified

principal residence, as defined, or $10,000, for purchases made

between May 1, 2010, and on or before December 31, 2010, or on

or after December 31, 2010, and before August 1, 2011, subject

to specified restrictions, including the submission of a certification

to the Franchise Tax Board by either the taxpayer or seller, made

under the penalty of perjury, that the residence has either never

been occupied or that the taxpayer is a first-time home buyer.

2.) The credit can only be used in equal amount over the three years following the purchase of the home. ($3,333.33 per year max)

(2) The amount of any credit allowed under paragraph (1) shall

be applied in equal amounts over the three successive taxable years

beginning with the taxable year in which the purchase of the

qualified principal residence is made.

3.) The credit is for first-time homebuyers of new or existing homes and any buyer of a new construction (never occupied) whether first-time homebuyer or not.

(A) If the qualified principal residence has never been occupied,

a certification by the seller, made under penalty of perjury, that

the residence has never been previously occupied.

(B) If the qualified principal residence is purchased by a

taxpayer who is a first-time home buyer, a certification from the

taxpayer, made under penalty of perjury, that he or she is a

first-time home buyer.

4.) The credit is canceled and is subject to recapture if the home is not occupied for at least 2 years as a principle residence.

If the taxpayer does not occupy the qualified principal

residence as his or her principal residence for at least two years

immediately following the purchase, any remaining unapplied

credit shall be canceled and any previously applied credit shall be

recaptured, and the taxpayer shall be liable for any increase in tax

attributable to the recapture of any credit previously allowed under

this section.

SJ Mercury News: SV/Peninsula house prices and sales rise in February

Fri, 19 Mar 2010 16:25:00 -0700

___________________________________________________

Silicon Valley, Peninsula house prices, sales rise in February

(Mercury News)

The median price of houses sold in Santa Clara County rose 21 percent last month compared to the same time last year, as more high-end homes changed hands.

Sales in the county increased 4 percent last month compared with February 2009, with 804 houses sold, according to a report Thursday from MDA DataQuick.

The median price of the previously owned, single-family houses that changed hands in the county last month was $510,500, up from $421,000 in February 2009. Resale condominiums posted a median price of $315,000, up 16 percent from $271,500 in February 2009.

"It's feeling like we are off to a healthy spring market — certainly not blockbuster, but healthy,'' said Rick Turley, president of realty brokerage Coldwell Banker's Bay Area office. "We need more listings."

The trend was the same in San Mateo County, where the median price of houses increased 13 percent year over year, and sales climbed 5 percent. The median house price in that county was $600,000, up from $531,000 last year. The median condo price was $330,000, down 13 percent from February 2009.

February's significant increases in median price do not mean that every home has enjoyed double-digit appreciation over the past year. In fact, the values of some homes are still falling. But median prices have increased compared with last year in part because of a change in which types of homes are selling, DataQuick said.

For example, in February 2009, homes costing $500,000 or more made up 24 percent of all Bay Area home sales, including new and resale houses and condos. But last month, sales in that price range made up 32 percent of sales. In Santa Clara County, 44 percent of sales cost $500,000 or more last month, up from 36 percent a year earlier.

Turley said that after the financial market meltdown of fall 2008, high-end home sales dried up during the first two quarters of 2009. Compared to those days, homes sales in higher price ranges are much more robust now, pushing up median prices. And with relatively few homes on the market in Silicon Valley and on the Peninsula, prices in some neighborhoods have stabilized.

Only about 3,300 houses and condos were for sale in Santa Clara County at the end of last week, compared with nearly 6,000 a year ago.

Campbell resident Michael Reed would probably agree that more listings would help prospective homebuyers like him. Reed has been looking for a home priced at about $500,000 on the west side of Silicon Valley for about six months, submitting "easily a dozen" offers, with no deal inked yet.

"The big word is 'frustrating,' " he said. "We've tried to do foreclosures, we've tried to do short sales, we've even tried to purchase on the courthouse steps. We've gone every single direction, but nothing's really working out."

Reed said along with help from his parents, he is prepared to pay cash for his first home and then get a mortgage on it later — but even with cash, he's been outbid every time.

He admits part of the problem is that he's being picky, preferring a home in Campbell or Cambrian that's in decent condition — homes, in other words, that are popular with lots of other buyers.

Kathi Hammill, an agent with Alain Pinel Realtors in Los Gatos, also notes that buyers in the $1 million-and-up price range are more numerous this year than last, but "are still being choosy." Properties that need refurbishing or have less-than-savory locations may still sit on the market. "If there's anything a little wrong with it, buyers are not willing to put offers on those types of houses. They are waiting."

For the nine-county region, home sales of all types — including new and resale houses and condos — were down slightly in February compared with a year earlier, falling 0.9 percent, with sales dropping significantly in Contra Costa, Napa and Solano counties, according to DataQuick's report. But median prices were up in most counties from last year.

"I would take that as an encouraging sign," said economist Matthew Anderson of Foresight Analytics in Oakland.

The median house price for the Bay Area as a whole was $370,000 last month, up 25 percent from $296,500 in February 2009.

The median price marks the halfway spot, meaning half the homes sold for less than the median figure, and half for more. DataQuick gathered its information from public records of sales that closed in February, meaning many of the transactions began in January or earlier. Anderson said he would not be surprised to see median prices and sales volume keep rising compared with 2009, but only if mortgage interest rates do not rise significantly. A big increase in rates would quell homebuying, he said.

Contact Sue McAllister at 408-920-5833.

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 12 Mar 2010 16:56:00 -0800

Below are the rates we've been seeing:

· 30 year conforming 4.75% 1 pt.

· 30 year high balance 5.125% 1 pt.

· 30 year FHA 4.75% 1 pt.

· 30 Yr. FHA high balance 4.75% 1 pt.

· 5 year jumbo 4.25% 1 pt.

· 7 year jumbo 4.875% 1 pt.

· 10 year jumbo 5.25% 1 pt.

· 30 year jumbo 5.50% 1 pt.

Regards,
Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

Current Indices*
Dow Jones: 10,611.84
Nasdaq: 2,368.46
10 Yr. Bond: 3.72%
1 Yr. T-Bill: .35%
1 Yr. LIBOR: .83938%
MTA Index: .441%
Prime Rate 3.25%

*Indices as of close of business Thursday.

Market Dynamics Through February 2010

Thu, 11 Mar 2010 14:23:00 -0800

Market Dynamics through Febuary 2010

On the above PDF file, please find the most updated Market Dynamics statistics for Santa Clara County through February 2010. These statistics are for Single Family and Condo/Townhomes in Santa Clara County.

Here are some highlights to pay particular attention to as you review the data/graphs through the first two months of 2010:

1. Median Price- February's Median Price regained its upward trajectory from 2009, after a slight dip in January ($475,000), to $499,000 which is significantly higher ($78,000) than February one year ago. The Median reached its low point in March of 2009 @ $415,000 and has proceeded to climb and then hovered above and around $500,000 and reached a high of $530,000 in November of 2009. As we predicted over the last few months of 2009, we are already seeing a higher rate of upper end sales in Santa Clara County (several between 3-5 million). As these sales begin to close escrow, the median price in SCC will continue its climb well above $500,0000 during the course of 2010.

2. Supply&Demand (Units)- We continue to see a dramatic distinction as we compare early 2008 with 2010 in the following categories; For Sale (supply/inventory), Under Contract (pending sales) and Sold (closed escrows). To illustrate when we compare Feb 08 with the same month in 2010 we see the following- For Sale properties/supply is down -40%. The number of under contract properties (pending sales) is now up an amazing 92% and the sold/closed escrows are up 41%. The pattern and direction of this market for the past 7-8 months continues to be the same story; declining overall supply/inventory, increasing new sales and closed escrows. Normal seasonality is beginning to come into play as buyer demand continues to amplify moving well into the 2, 3 and 4+ million price ranges at a significant rate as compared to the same time last year. Despite the overall increase in sales activity in all price ranges, the overall rate of closings continues to be somewhat sluggish mainly based on a high percentage of short sales and the ongoing challenges of financing given the new disclosures and stringent guidelines. We are anticipating some strong closing months in late Q2 and during Q3 given the large pipeline of pending sales as they are worked through with lenders approving select short sales and financing coming through for purchases. This closing activity in the coming months will have a significant, positive affect on these monthly data points, further pointing to a balancing market and a imminent real estate recovery in Silicon Valley.

3. Months Supply of Inventory & Days on Market- The overall Months Supply of Inventory (months of inventory available based on the total existing supply divided by the rate of sales) dwindled down to a 2 year low range of under 2 months! This is down from a 2 year peak of 14.2 months in January of 08. The Months of Supply of Inventory declined each and every month in 2009 from 7.7 months in January to 2.6 months by year end. Days on market has remained under 60 days for the past 7-8 months, which on average is down about 10 days from the same period one year ago. This reduction in the Days on Market is another indication of the improving residential real estate market.

4. Basic Absorption- The decline in the residual inventory levels continues(the remaining inventory each month excluding pending sales, closed sales and new listings). This segment is down -62% when comparing Feb 2008 and Feb 2010. More of the less desirable or unrealistically priced properties are either now selling (in the case of unrealistically priced- prices are being adjusted) or coming off the market. The other metrics are quite compelling with the comparison of Feb 2008 vs Feb 2010 we see Under Contract Properties/pendings increasing and up 92% and New listing inventory coming on the market remaining down 17%.

5. Percent Under Contract- This is typically one of the most telling statistics of all because this is @ the line of scrimmage, where the market is today. Essentially when looking @ this stat, we are factoring of all the available inventory what percentage is under contract or a pending sale. Typically in any area we have seen where @ least 1 for every 4 available listings is under contract, we have a stable or appreciating market. Whenever we have seen this factor less than 1 out of 10 or less than 10%, we have sign prices more in a correction mode. We can look back historically and show where this occurred in pockets throughout SCC @ different times and how this was impacting values to the down or upside. At this point in time, SCC is @ a 2 year high with nearly 29.8% of all the available listings/supply under contract/in escrow. This percentage is slightly up from last month's fully adjusted figure of over 24.2%, and is a 222% increase when compared to February 2008 when this figure for SCC was at a lowly 9.2%!.

In conclusion, the market stability and strength in the overall bay area residential real estate market is confirmed by these data points. From our sales activity over the past 30 days and increasing even in the past week, we are certain to see improving data and statistics in the news as these new sales begin to close escrow. We are fortunate to be right at the pulse of activity and trends and this should be an advantage to our clients and/or those that have an interest in following up to date market trends. In addition to the positive current rate of sales, one of the most encouraging signs is the increasing high-end sales activity, which was sluggish during much of 2009. It will be very interesting to see the upward movement in the median price as these sales begin to close escrow over the next 30, 60 and 90 days. The biggest challenges of the day are high percentage of short sales (difficulties in getting lenders to communicate and close these transactions), the increased paperwork introduced into the loan process this year and the ongoing stringent lender guidelines. The market, despite its increasing buyer demand, is one of the toughest we have seen. Salespeople are working harder than ever to represent their buyers and sellers in the market and navigate them through the various hurdles that seem to be commonplace in every transaction. The buyers are in the market and ready to buy there is no question about it and this is a good starting point to build from. We are projecting a strong spring and summer market in most price ranges and possibly the most balanced and active market we have seen in over 2-3 years.

Sincerely,

Chris Trapani

President & CEO

Sereno Group

Carole Rondini's eNewsletter - March 2010

Wed, 10 Mar 2010 17:31:00 -0800

By Carol Rodoni

Presented by Bamboo Consulting Inc. Vol. 15 March 2010

Current Real Estate Update

www.bambooconsultinginc.com

Sherlock Holmes Has Nothing on Today's Home Inspector

The transaction is in the works, but one potential issue still remains – the home inspection. Buyers typically request a home inspection to determine the condition of a property. What is uncovered prior to the closing can often result in needed repairs, which can set off renegotiating the deal with the seller or in extreme cases cause a deal to collapse. The inspectors are not the enemy. They are simply there to report on the condition of the property. So, the ball is really in the seller's court.

If you've taken care of your home, you'll pass with flying colors.

The biggest and most common defects that can be avoided are:

Improper electrical wiring usually done by homeowners or unqualified contractors. Think inadequate overload protection, wires tied together without being housed in a box, etc. All of these issues can cause major problems and are fire hazards. As a seller, get this kind of work done with a proper permit and by a licensed contractor. It will save you time and money in the end. And, most electrical issues are safety issues. So, be smart and get it done right.

Roof deterioration -- A roof that is old and damaged leads to leaks. If left unrepaired, a totally new roof is often the only fix and can cost on average almost $20,000. So, check the shingles and tiles on an ongoing yearly basis, clean gutters yearly, and trim back trees that could cause damage.

Improper surface draining or grading – Water is a powerful force and can flow into a house because of poor drainage or grading. Basements and crawl spaces are the most vulnerable. So, assess how your home sheds water, watch for signs of water damage, and find the source.

Plumbing problems – The biggest money drainer is dripping faucets. Leaking water can cause damage that can often be fixed by a part that costs under a dollar. In addition, shoddy plumbing work is cheap, but expensive in the long run – think mismatched piping materials, improperly installed water heaters, or rocking toilets. So, make sure your toilets are securely bolted, check faucets and valves periodically for leaks, and do the repairs when the problems are small.

General condition

– Often cracks, peeling, or dirty painted surfaces, broken appliances, and decayed caulking are found by inspectors, which can lead to costly repairs. Check these things on a regular basis and fix the issues early.

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 05 Mar 2010 13:40:00 -0800

As you've heard me say many times over the past few months, we expect that the Federal Reserve's exit from the Mortgage Backed Securities (MBS) purchase program may cause some volatility in mortgage rates. They will be finished with this purchase program at the end of March. If your clients are currently in contract, they can protect themselves from this possible volatility by locking in their rate now.

Although there will be a period of uncertainty with rates initially, we believe that the long term outlook is favorable and that mortgage rates will remain low for awhile. There are many large investors who have short positions in MBS and will be eager to buy on any type of under performance resulting from the Federal Reserve's exit (if the MBS fall in price, these investors can buy them for less than he or she sold them; making a profit). We believe these money managers will have an incentive to continue the purchasing of mortgage backed securities which creates demand and therefore should keep rates low.

This is good news for a strong purchase money market in 2010. And, with new jumbo lenders coming back into the market and interest rates behaving I am excited about the opportunities that exist for all of us in the months to come.

Now, on to the rates we've been seeing:

· 30 year conforming 4.75% 1 pt.

· 30 year high balance 5.125% 1 pt.

· 30 year FHA 4.75% 1 pt.

· 30 Yr. FHA high balance 4.75% 1 pt.

· 5 year jumbo 4.25% 1 pt.

· 7 year jumbo 4.875% 1 pt.

· 10 year jumbo 5.25% 1 pt.

· 30 year jumbo 5.50% 1 pt.

Regards,
Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

Current Indices*
Dow Jones: 10,444.14
Nasdaq: 2,292.31
10 Yr. Bond: 3.60%
1 Yr. T-Bill: .35%
1 Yr. LIBOR: .83938%
MTA Index: .441%
Prime Rate 3.25%

*Indices as of close of business Thursday.

www.opesadvisors.com

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 26 Feb 2010 11:07:00 -0800

Below are the rates we've been seeing this week:

· 30 year conforming 4.75% 1 pt.

· 30 year high balance 5.125% 1 pt.

· 30 year FHA 4.75% 1 pt.

· 30 Yr. FHA high balance 4.75% 1 pt.

· 5 year jumbo 4.25% 1 pt.

· 7 year jumbo 4.875% 1 pt.

· 10 year jumbo 5.25% 1 pt.

· 30 year jumbo 5.625% 1 pt.

Regards,
Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

Current Indices*
Dow Jones: 10,321.03
Nasdaq: 2,234.22
10 Yr. Bond: 3.63%
1 Yr. T-Bill: .35%
1 Yr. LIBOR: .84625%
MTA Index: .463%
Prime Rate 3.25%

*Indices as of close of business Thursday.

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 19 Feb 2010 17:21:00 -0800

Yesterday the Fed raised the discount rate by .25% (The discount rate is the interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank's lending facility). Last week the Fed did indicate that the move might be coming, yet the timing of their announcement was surprising to many.

As you might recall, at the start of the mortgage meltdown, mortgage lenders were having difficulty securing warehouse lines to allow them to provide mortgage funding. Lenders did have the option to access the Discount Window at the Fed (Federal Reserve Banks offer three discount window programs to depository institutions: primary credit, secondary credit, and seasonal credit, each with its own interest rate. All discount window loans are fully secured.) However, because costs for these funds were high AND repayment had to be done within 28 days, most lenders were unable to utilize this option.

As a result, the Fed held an emergency meeting, lowered the Discount Rate and extended the repayment period to 90 days. These changes made the Discount Window option a viable solution for lenders and helped curtail the severity of the mortgage meltdown.

Yesterday's announcement reverses those emergency measures. Yet, as long as warehouse lines remain functional, this announcement should not adversely affect mortgage lending.

When making this change yesterday, the Fed noted that the continual improvement in financial market conditions gave them the foundation for this move. The Fed also said that they do not anticipate this raise to lead to tighter financial conditions for households or businesses nor does this move indicate any change in their outlook for the economy or for monetary policy.

However, as the Fed makes changes, the government backs out of Mortgage Backed Securities (MBS) purchases and slows down stimulus programs, we continue to assess economic growth and inflation concerns.

One of the most popular measures of inflation within the U.S. is the Consumer Price Index (CPI). The CPI measures the estimated average price of consumer goods and services purchased by households. This index rose by 0.2% for January, less than the 0.3% expected. With the publishing of the January results, the year-over-year CPI is at 2.6%, below expectations of 2.8%. The more closely watched Core CPI (which strips out food and energy costs), actually fell by 0.1%, below expectations of a 0.1% rise. The last time Core CPI showed a negative monthly reading was 28 years ago. This helped to drop the year-over-year Core CPI rate to 1.6%, a bit below expectations of a 1.8% rise.

These results show that, for the time being, inflation is a non issue. However, it will likely become a factor in the next year or two. And, the best hedge for inflation is to fix as many costs at today's prices as you can. A home purchase today with a historically low mortgage rate allows buyers to fix the price of their home and the associated financing costs. We will continue to keep an eye on this index and other economic indicators.

And, as always, below are the rates we've been seeing this week:

· 30 year conforming 4.75% 1 pt.

· 30 year high balance 5.125% 1 pt.

· 30 year FHA 4.75% 1 pt.

· 30 Yr. FHA high balance 4.75% 1 pt.

· 5 year jumbo 4.50% 1 pt.

· 7 year jumbo 5.00% 1 pt.

· 10 year jumbo 5.375% 1 pt.

· 30 year jumbo 5.75% 1 pt.

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

Current Indices*
Dow Jones: 10,392.90
Nasdaq: 2,241.71
10 Yr. Bond: 3.8%
1 Yr. T-Bill: .35%
1 Yr. LIBOR: .84625%
MTA Index: .463%
Prime Rate 3.25%

*Indices as of close of business Thursday.

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 12 Feb 2010 15:21:00 -0800

Because so many people are going away for the long weekend I've decided to keep this message short and get right to the rates we've been seeing this week:

· 30 year conforming 4.75% 1 pt.

· 30 year high balance 5.00% 1 pt.

· 30 year FHA 4.75% 1 pt.

· 30 Yr. FHA high balance 4.75% 1 pt.

· 5 year jumbo 4.375% 1 pt.

· 7 year jumbo 5.00% 1 pt.

· 10 year jumbo 5.375% 1 pt.

· 30 year jumbo 5.75% 1 pt.

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

Current Indices*
Dow Jones: 10,144.19
Nasdaq: 2,177.41
10 Yr. Bond: 3.72%
1 Yr. T-Bill: .35%
1 Yr. LIBOR: .84625%
MTA Index: .463%
Prime Rate 3.25%

*Indices as of close of business Thursday.

www.opesadvisors.com

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 05 Feb 2010 10:37:00 -0800

As we all painfully remember, when the credit crunch hit in August of 2007 we saw a steep decline in jumbo lending. And, as our economy has been trudging through a tremendous housing slump and a great recession the government issuance of Mortgage Backed Securities (MBS) remained limited. This means, banks have been unable to sell their jumbo loans into the market - and their balance sheets have been filling up. But, there is good news ahead!

A recent meeting of the American Securitization Forum led to their statement indicating that jumbo product (a $1.2 trillion market 4-5 years ago, $25 billion in '08 and $44 billion in '09) may start to be securitized again later this year. This will be great for our market! If you'd like, you can read more details here.

And, as always, below are the rates we've been seeing this week:

· 30 year conforming 4.625% 1 pt

· 30 year high balance 4.875% 1 pt.

· 30 year FHA 4.75% 1 pt.

· 30 Yr. FHA high balance 4.75% 1 pt.

· 5 year jumbo 4.25% 1 pt.

· 7 year jumbo 4.875% 1 pt.

· 10 year jumbo 5.375% 1 pt.

· 30 year jumbo 5.625% 1 pt.

Regards,
Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

Current Indices*
Dow Jones: 10,002.18
Nasdaq: 2,125.43
10 Yr. Bond: 3.60%
1 Yr. T-Bill: .35%
1 Yr. LIBOR: .84625%
MTA Index: .463%
Prime Rate 3.25%

*Indices as of close of business Thursday.

Carole Rodoni's eNewsletter - Real Estate Unleashed February 2010 Edition

Tue, 02 Feb 2010 17:12:00 -0800

What Happens to Articles Left in Vacated Rental Units?

A Primer on Mutual Fund Fees

Like any other business, businesses that run mutual funds involve cost. Most of these costs are incurred at the initial investment or subtracted from the overall return.

First, let's look at one time fees:

Not all mutual funds have these, but if they do they can be front-end sales load fees or back-send sales loan fees.

In both instances, these payments compensate outside brokers that have advised you to buy these funds. The Financial Industry Regulatory Authority (FINRA) has capped these fees at 8.5%, but most are generally around 6%.

Redemption fees are usually paid directly to the fund when a shareholder in the fund redeems their position before a preset period of time.

In some funds, there may also be a periodic management fee if an investment is below a certain dollar amount.

Did You Know?

www.bambooconsultinginc.com

Real Estate Unleashed Vol. 14 February 2010

Next, let's take a look at ongoing expenses:

These include management and administrative fees, marketing and distribution expenses, and staff to answer

shareholder inquiries.

Also included in ongoing fees are the costs to buy and sell securities.

In the end, watch out for the fees as they can add up quickly. For example, $10,000 put into a fund at 10% annual return with total yearly expenses of 1.5%, would give you a return of $50,000 after 20 years. But, if you put the same amount in the same fund with yearly expenses of only 0.5%, the return would be $60,0000.

Review of the Last Decade

Best Technologies

According to PC Magazine, the top 10 technologies that transformed our everyday lives during the last decade were:

1. Google

2. Apple iPhone

3. Apple iPod

4. Facebook

5. Wi-Fi

6. Broadband Internet Access

7. TiVo

8. GPS

9. Windows XP

10. Apple iMac

Most Important Dates

According to Newsweek's top 10 lists, the 10 most important dates during the last decade were:

1. September 11, 2001: World Trade Center Terrorist Attack

2. December 12, 2000: Bush vs. Gore Decision

3. November 4, 2008: Obama Elected

4. August 29, 2005: Katrina Makes Landfall

5. September 15, 2008: Lehman Brothers Goes Bankrupt

6. March 1, 2002: U.S. Launches Operation Anaconda (first large-scale, coordinated campaign by U.S. forces against the Taliban in Afghanistan)

7. February 5, 2008: Colin Powell Speaks at U.N. (U.S. presents evidence that Iraq had retained weapons of mass destruction)

8. April 16, 2007: Virginia Tech Massacre

9. December 26, 2004: Indian Ocean Tsunami

10. February 12, 2004: First Licensed Gay Marriage in America (San Francisco)

The Last Word

Janitor (n)

Janus was once the mightiest Roman deity of all until his followers fell all over for the flashier Greek Gods. That left Janus as the God of Doors, partly because he had a face on both the front and back of his head. Those who attended him were the doorkeepers that over time came to be known as janitors (attendees to Janus).

Real Estate Unleashed

Statistics

Vol. 14 February 2010

www.bambooconsultinginc.com

Bay Area Statistics December 2009

Sales in the San Francisco Bay Area were at 7,828. This is up 13.8% from 1 year ago. This is the 16 increase and the highest since December 2006.

December prices were at $380,000. This was down 1.8% from November, but up 15.2% from December 2008.

Foreclosures accounted for 32.3% of sales. This is down from the peak number of foreclosures (52% in February

2009).

25.6% of loans are FHA loans of choice.

Existing Single-Family Home Sales (December 2009)

County Number Sold Percent Change (YOY) Median Price Percent Change (YOY)

Alameda 1,552 4.0% $360,000 6.5%

Contra Costa 1,634 -8.6% $287,500 13.9%

Fresno 918 - $175,000 -2.91%

Marin 265 60.6% $635,000 12.9%

Merced 330 - $120,000 -4.0%

Monterey 327 - $235,000 -11.32%

Napa 128 15.3% $356,000 -11.6%

San Francisco 499 36.3% $650,000 5.4%

San Benito 77 - $270,000 -1.19%

San Joaquin 858 - $165,000 -5.07%

San Luis Obispo 231 - $400,000 -4.53%

San Mateo 642 47.6% $586,500 9.2%

Santa Barbara 268 - $302,000 24.04%

Santa Clara 1,915 51.4% $475,000 8.9%

Santa Cruz 171 - $437,000 13.07%

Sacramento 1,875 - $175,000 -5.41%

Solano 698 -4.8% $217,500 1.9%

Sonoma 495 -7.3% $330,000 10.0%

Real Estate Unleashed Vol. 14 February 2010

www.bambooconsultinginc.com

“Hot” Marketing Tip

Marketing Advice for 2010

Now that we have started a new year, it makes sense to evaluate your business and find ways to make your marketing more effective. Here are some tips from a strategist on OPEN Forum:

1. Know your company and your products and how they meet customer needs. Share that message.

2. Update your online presence by giving your website a refresh and adding to or starting your blog.

3. Determine how you will interact with Social Media (like Facebook and Twitter). Social media is here for the long haul and successful businesses have a strategy on how to market in those spaces. For example, create a company profile on Facebook and update it with the most current information. Then, allow people to become fans.

4. Review your customer and prospect lists and see how you can market to them directly.

5. Look at doing videos to highlight your company and products. Remember that these can easily be shared through your online presence (website, blog, social media, etc.).

6. Become familiar with mobile marketing. These days, more people use text messaging than email.

7. Start a referral program and let the world know.

8. Focus on your ideal customer and figure out ways to attract more of them to your business.

Dear Carole

Question: Has the economic crisis changed Americans?

Answer:

42% delayed or canceled their vacations.

27% pursued extra work to make money.

34% delayed buying major appliances.

29% forgot about doing home renovations.

28% delayed buying a new car.

Only 52% now believe if you work hard and play by the rules, the American dream is yours.

87% are worried about state of the nation.

65% were really surprised at the economic meltdown.

74% say they watch the news more.

71% describe themselves as more politically aware.

Home ownership went from 68% to 64%.

25% of the homeowners are underwater in their home values.

1 in 9 homes were either in default or foreclosure.
Not all the news is bad though. Americans see some benefits too:

52% are forming stronger bonds with spouses.

63% have become more do-it-yourselfers.

30% are volunteering more for charities.

Question: Why are banks willing to write off $150K on a short sale or foreclosure, but not willing to write down the principal so a homeowner can stay in their home?

Answer:
When the banks do a short sale or foreclosure, the government allows them to take a loss on their balance sheet and they can then offset that with profits from prior years. In the end, the banks get a tax refund from the government. With reduction of principal, they cannot do that and the loss they would incur can only be written off against profits in the same year or carried forward at a very low rate. With principal write offs, they would have huge losses that they could not write off in the year that they incurred them. Hence, there is no benefit to the bank to write down the principal where there is a benefit to write off money in a short sale or foreclosure situation.According to the Parade Crisis Impact Poll, which surveyed a national moderate panel of adults ages 18 and over, 79% have personally felt its impact.

There are specific laws for landlords to deal with abandoned personal property left in residential units. Simply seizing and then disposing of these personal possessions without following the law is just not an option. First, you must give written notice to the former tenant or any person you reasonably believe to be the owner of the property.

The notice must describe the items, indicate that reasonable costs for storage may be charged before the property is returned, specify where the property may be claimed, and a date when the property can be claimed. The date must be a date not less than 15 days after the notice is delivered or if mailed 18 days after mailing. As to where to send the notice by mail, use the last known address, which is probably the vacant unit.

Most boards of realtors have forms available called “Notice of Right to Reclaim Abandoned Property”. These forms deal with value of property – one if the property is thought to be worth less than $300 (resale value) and one for property thought to be worth more than $300 (resale value).

If the former tenant contacts you within the waiting period, you can require that they pay reasonable storage costs before releasing the property. If you are not contacted within the waiting period and the property is worth less than $300, you can dispose of the property or keep it yourself. If the property is worth more than $300, you are required to hold a “public sale” of the property by competitive bidding. This process requires that public notice of the sale be published at least once a week for 2 consecutive weeks in a newspaper in the county where the sale is to be held. The last publication must be at least 5 days before the actual date of sale. The public notice must also list the date, time, and location of the sale as well as list the items that are to be sold. Anyone can bid on the items including the landlord or former tenant. After the sale, you are allowed to deduct from the proceeds the cost of storage, advertising, and the sale itself. Then, any balance must be sent to the county treasurer. Note that any unpaid rent cannot be deducted from the proceeds.

Storage, advertising, and the auction cost you both time and money, so try and get the tenant to come back and reclaim their property (even if you have to give them more time and negotiate the storage fees). In the end, it will probably be the best solution.

www.bambooconsultinginc.com

Weekly Update by Tracie Southerland- Opes Advisors

Fri, 22 Jan 2010 12:19:00 -0800

January 1 marked the implementation of the new Good Faith Estimate (GFE) that resulted from the Department of Housing & Urban Development's (HUD) reform of the Real Estate Settlement Procedure Act (RESPA).

Here's a snapshot of the updated GFE:

· The new GFE provides clarity about locked terms. If the buyer is locked, the expiration date is specified. If they aren't locked, they know it and know when they must lock by in order to obtain the rate disclosed on the GFE. The new GFE also provides an expiration date for the estimate and is only good if the loan funds by that date.

· The new GFE lumps all fees together regardless of who pays them so the buyer can quickly see the total costs of the transaction but will need further documentation in order to determine his/her true out-of-pocket costs.

· The loan originator is responsible for all fees that are not disclosed; even if they underestimate the fees, your buyers don't take the brunt of that mistake. As a result, mortgage advisors will naturally include on the estimate any possible fees that could be incurred so as to avoid underestimating and paying those costs themselves.

Under these new guidelines, the numbers from the GFE that the buyer was provided are compared with the final numbers on the HUD-1. If these numbers do not match up, or stay within the variance allotted by law, the lender is held personally accountable for the difference in cost.

While the new form was created to offer more clarity to buyers, there are still some instances where there can be some confusion.

For example, let's assume a lender includes a $450 fee for the appraisal on the GFE form. Once the appraisal is reviewed by an underwriter, the underwriter may call for an appraisal desk review which carries an additional cost of $200. If this unanticipated $200 charge was not disclosed on the GFE form, the lender is required to pay this cost. As you can imagine, this can become quite costly for a Mortgage Advisor.

One way around this personal expense for the Mortgage Advisor is to include a $200.00 line item on the GFE for an appraisal review. And, if it turns out that an appraisal review is not required the borrower will not pay that cost (the new regulations allow the HUD-1 to be less than the GFE, but not more). However, a different lender that the buyer is considering may not include an appraisal review line item in their initial GFE. As a result, the Mortgage Advisor may appear to be $200.00 more expensive than the other lender.

When in doubt, encourage your buyers to talk to their lenders to ensure they understand the listed fees and any variances among lenders.

Here are a few more considerations associated with this regulation change:

· Your more experienced buyers may be expecting to receive a GFE when they get pre-approved for a loan. Due to the many variances in costs associated with a loan, we will not issue a GFE until buyers are in contract. We will be able to provide them estimates of the costs and fees of their expected loan amount, but it will not be in the form of a GFE.

· In the few instances where there are changes to rates or fees (e.g., if not locked when original GFE was provided or the borrower requests changes - in writing) the lender is authorized to change the settlement variables from the original GFE if the client signs the "Change of Circumstance Affidavit" at least 3 days before the loan closes. In these cases, the updated GFE must be provided to the buyer within three days after receiving the information or request. The basis for the revision must be documented and retained for at least three years after settlement. NOTE: The GFE cannot be updated to adjust fees that are not relevant to the changed circumstance.

· Due to these regulatory changes, we require a firm estimate of final title and escrow costs (doc prep, wire fee, endorsements, copying, etc. . . ) within 24 hours of opening escrow. The final HUD-1 title and escrow fees must not exceed the estimate that the lender provided to the buyer in the GFE. If they do, the lender must personally pay for that difference.

Opes Advisors has put training and procedures in place to ensure that GFEs are correctly issued to buyers. We continue to work closely with our buyers, title companies and escrow companies to close loans on time and to ensure there are no surprises along the way.

If you have any questions about this new process and how it may impact your buyers, please do not hesitate to contact me.

Now, on to the rates we've been seeing this week:

· 30 year conforming 4.750% 1 pt

· 30 year high balance 5.00% 1 pt.

· 30 year FHA 4.75% 1 pt.

· 30 Yr. FHA high balance 5.00% 1 pt.

· 5 year jumbo 4.25% 1 pt.

· 7 year jumbo 4.875% 1 pt.

· 10 year jumbo 5.50% 1 pt.

· 30 year jumbo 5.625% 1 pt.

Regards,
Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

Current Indices*
Dow Jones: 10,389.88
Nasdaq: 2,265.70
10 Yr. Bond: 3.59%
1 Yr. T-Bill: .37%
1 Yr. LIBOR: .98438%
MTA Index: .471%
Prime Rate 3.25%

*Indices as of close of business Thursday.

www.opesadvisors.com

Weekly Update by Tracie Southerland - Opes Advisors

Mon, 04 Jan 2010 12:01:00 -0800

This year brought with it both encouraging and challenging developments.

The fall of 2009 marked the end of the U.S. recession and the beginning of a mild recovery. Markets improved more than anyone expected at the beginning of this year; this helped to bring our clients unexpected, positive investment returns and historically low mortgage rates.

At the same time, this recovery continues to be challenged by moderated consumer spending, high unemployment and the uncertainty that upcoming policy and economic changes will bring.

Looking forward into 2010, our assessment is that economic growth will continue, but at a slower pace than has been the case when coming out of past recessions. Headwinds to growth include an unemployment rate that may stay stubbornly high, a housing market that is still stabilizing, overall wealth that has declined sharply and a tough environment for small business financing. Additionally, the Federal Reserve is faced with the difficult but necessary transition from active investor, supporting low mortgage rates, to pulling back its involvement and allowing higher short-term rates when the economy can stand on its own.

Against this economic backdrop, we believe that inflation will not be a problem in 2010 and that more investors, seeking higher returns, will enter the market. We anticipate that we will see both moderate gains and rates throughout the year.

We remain encouraged that good opportunities will be presented to us in the months and years ahead.

With warm wishes for the New Year,
Tracie

REPORT-Radarlogic- Don't Believe the Hype: Housing Won't Collapse in 2010

Mon, 21 Dec 2009 09:40:00 -0800

http://www.radarlogic.com/research/RPXMonthlyHousingMarketReportforOctober2009.pdf

Weekly Update by Tracie Southerland - Opes Advisors

Mon, 21 Dec 2009 09:31:00 -0800

Below are the rates we've been seeing this week:

· 30 year conforming 4.625% 1 pt

· 30 year high balance 5.00% 1 pt.

· 30 year FHA 4.75% 1 pt.

· 30 Yr. FHA high balance 4.875% 1 pt.

· 5 year jumbo 4.25% 1 pt.

· 7 year jumbo 4.875% 1 pt.

· 10 year jumbo 5.375% 1 pt.

· 30 year jumbo 5.625% 1 pt.

Have a great weekend!
Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

Current Indices*
Dow Jones: 10,308.26
Nasdaq: 2,180.05
10 Yr. Bond: 3.48%
1 Yr. T-Bill: .31%
1 Yr. LIBOR: 1.01750%
MTA Index: .481%
Prime Rate 3.25%

*Indices as of close of business Thursday.

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 11 Dec 2009 14:19:00 -0800

Many clients I work with are trying to decide if they should stay put, downsize or move up. The commonality among them is that they struggle with evaluating the financial impact of those various options. They aren't sure of the long term impact their decision will have on their ability to maintain a comfortable lifestyle and fund their retirement.

If your clients are having difficulty deciding what course of action to take, I can help. As a wealth management firm with mortgage banking capabilities, I have the education and experience to recommended loan strategies that support your clients' life goals, income stream, personal risk profile, and tax bracket. And, when needed, I can consult with our Certified Financial Planners™ and Chartered Financial Analysts®.

Part of the work I do with clients includes the use of our proprietary software, Opes Advantage™, which forecasts our clients' financial futures by reviewing their specific financial situations. It actively and objectively evaluates the tradeoffs within life and shows the financial impact those decisions can have on specific goals for the future.

I'd be happy to meet with you so you can see first hand how I would work with your clients. Please let me know if you would like to schedule some time to do this or if you would like to discuss a client's specific situation.

Now, on to the rates we've been seeing this week:

· 30 year conforming 4.625% 1 pt

· 30 year high balance 4.875% 1 pt.

· 30 year FHA 4.75% 1 pt.

· 30 Yr. FHA high balance 5.00% 1 pt.

· 5 year jumbo 4.25% 1 pt.

· 7 year jumbo 4.75% 1 pt.

· 10 year jumbo 5.375% 1 pt.

· 30 year jumbo 5.625% 1 pt.

Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

Current Indices*
Dow Jones: 10,405.83
Nasdaq: 2,190.86
10 Yr. Bond: 3.50%
1 Yr. T-Bill: .31%
1 Yr. LIBOR: 1.01750%
MTA Index: .481%
Prime Rate 3.25%

*Indices as of close of business Thursday.

www.opesadvisors.com

Percent Under Contract through Nov. 09

Fri, 04 Dec 2009 10:44:00 -0800

P U Contract

Percent Under Contract- This is typically one of the most telling statistics of all because this is @ the line of scrimmage, where the market is today. Essentially when looking @ this stat, we are factoring of all the available inventory what percentage is under contract or a pending sale. Typically in any area we have seen where @ least 1 for every 4 available listings is under contract, we have a stable or appreciating market. Whenever we have seen this factor less than 1 out of 10 or less than 10%, we have sign prices more in a correction mode. We can look back historically and show where this occurred in pockets throughout SCC @ different times and how this was impacting values to the down or upside. At this point in time, SCC is @ a 2 year high with nearly 30% of all the available listings/supply under contract/in escrow. This percentage. This percentage is slightly up from last month's figure of over 27%. If you are interested in a more specific price range or market area, you can segment out the statistics to determine the balance of available supply and pending sales in that particular price range or area. Presently, the entry level and mid-price ranges have the highest percentage of available supply in escrow whereas the higher-end (relative to the specific market area) have a somewhat lower percentage of available listings to pending sales ratio. However, this percentage is increasing even in the higher-end markets as we have seen the price point of sales moving up in recent months.

In conclusion, we are continuing to see stability and strength in the overall bay area real estate market recovery. This morning's unemployment news was positive and this will provide continued optimism that this recovery is for real. This overall positive news will add increased confidence that will move this real estate market forward in a healthy direction as we head into 2010.

Sincerely,

Chris Trapani

President & CEO

Sereno Group

Supply & Demand Units through Nov. 2009

Fri, 04 Dec 2009 10:31:00 -0800

Supply & Demand

Supply&Demand (Units)- We continue to see a dramatic distinction as we compare 07/08 with 09 in the following categories; For Sale (supply/inventory), Under Contract (pending sales) and Sold (closed escrows). To illustrate when we compare Nov 07 with the same month in 2009 we see the following- For Sale properties/supply is down 44%. The number of under contract properties (pending sales) is now up an amazing 121% and the sold/closed escrows are up 53%. Again, the pattern and direction of this market for the past 7-8 months has been the same story; declining overall supply/inventory, increasing new sales and closed escrows. These are dramatic figures displaying really two points. First, the market in the fourth quarter of last year was depressed so the increased activity in the fourth quarter of this year is even more notable as a comparison. Second, the real estate recovery is picking up momentum at an ever increasing rate.

Market Dynamics Median Price Through Nov. 2009

Fri, 04 Dec 2009 10:27:00 -0800

Media Through Nov. 09 1.

These statistics are for Single Family, Condo/Townhomes and Residential Lots & Land in Santa Clara County.

Median Price- November's Median Price increased to $530,000, nearly $70,000 higher than one year ago! The Median reached its low point in March of 2009 @ $415,000 and has proceeded to climb and then hover between $430,000 and $530,000 for the past 7-8 months. The Median Price is now @ it's highest point since September of 2008. The increases are most likely due to the fact that much of the entry level price range (where many of the foreclosure/reo's were concentrated) is or has firmed up. As we expected this Median is continuing to climb as we close out 2009. Based upon increased activity in the higher price points in Santa Clara County, we expect to see more higher end sales taking place in Santa Clara and Santa Cruz County in 2010.

Bloomberg: Payrolls in U.S. Decline

Fri, 04 Dec 2009 09:24:00 -0800

Payrolls in U.S. Decline 11,000; Unemployment at 10% (Update3)

Share Business Exchange Twitter Facebook| Email | Print | A A A

By Timothy R. Homan

Dec. 4 (Bloomberg) -- Employers in the U.S. cut the fewest jobs in November since the recession began and the unemployment rate unexpectedly fell, signaling the recovery is lifting the labor market out of the worst slump since World War II.

Payrolls fell by 11,000 workers, less than the most optimistic forecast among economists surveyed by Bloomberg News, figures from the Labor Department showed today in Washington. The jobless rate declined to 10 percent.

Stocks soared, the dollar strengthened and Treasuries declined as the report indicated companies may start hiring again after the labor market shrank by 7.2 million jobs since December 2007. Hours worked, wages and staffing at temporary employment agencies all rose, today’s report showed.

“With firms seeing profits improving we’re starting to see a much brighter labor market,” said Stefane Marion, chief economist at National Bank Financial in Montreal, whose forecast for a 30,000 decline was the most accurate. “Confidence has been restored and firms now have started to redeploy their cash.”

The Standard & Poor’s 500 Index was up 1.2 percent to 1,112.5 at 9:32 a.m. in New York. The dollar gained to 89.58 yen from 88.26 yesterday. The yield on the government’s 10-year note increased to 3.48 percent from 3.39 percent.

Traders increased bets that the Federal Reserve would tighten monetary policy in the third quarter of next year. Yields on the September federal funds futures contract rose by 9.5 basis points. A basis point is 0.01 percentage point.

Record Low Rates

Federal Reserve Chairman Ben S. Bernanke has pledged to maintain record-low interest rates until joblessness subsides, even as a recovery takes hold.

Revisions added 159,000 to payroll figures previously reported for October and September. The October reading was revised to show a 111,000 drop in jobs compared with an initially reported 190,000 decline.

Payrolls were forecast to decline 125,000, according to the median estimate of 82 economists surveyed by Bloomberg News. Estimates ranged from decreases of 30,000 to 180,000.

The jobless rate was projected to hold at 10.2 percent. Forecasts ranged from 9.9 percent to 10.4 percent.

The number of temporary workers increased 52,000 in November, the biggest since October 2004 and the fourth straight rise. Payrolls at temporary-help agencies often turn up before total employment because companies prefer to see a steady increase in demand before taking on permanent staff.

The average work week grew to 33.2 hours in November from 33 hours, the biggest rise since March 2003. Average weekly earnings rose to $622.17.

Software Exporter

Some companies are adding workers. Infosys Technologies Ltd., India’s second-largest software exporter by revenue, plans to add 1,000 employees in the U.S. in the next four to five quarters, said Chief Financial Officer V. Balakrishnan.

Government adjustments subtracted 91,000 jobs from the unadjusted November payroll number, about in line with the historical figure. This indicates the seasonal adjustment issue may not have played much of a role in last month’s data.

Today’s report showed factory payrolls fell 41,000 after decreasing 51,000 in the prior month. The median forecast by economists called for a drop of 45,000. The decline included a drop of 6,300 jobs in auto manufacturing and parts industries.

Sales of cars and light trucks increased for a second consecutive month in November after plunging in the wake of the government’s so-called cash-for-clunkers incentive plan. Vehicles sold at a 10.9 million annual pace last month, up from a 10.5 million rate in October.

Builder Payrolls

Payrolls at builders declined 27,000 after falling 56,000. Financial firms decreased payrolls by 10,000 for a second month.

Service industries, which include banks, insurance companies, restaurants and retailers, added 58,000 workers after adding 2,000. Retail payrolls decreased by 14,500 after a 44,200 drop.

Angela Renee Elliott, a 40-year-old accountant and bookkeeper from Wyoming, Ohio, said she’s sent between 100 and 150 resumes after losing her job in April. This is the first time she’s been unemployed in her 17-year career.

“I’m feeling pretty good and have seven interviews” already completed or planned, Elliott said in an interview, after posting her resume online on Nov. 21. “I believe I’m going to have a full-time. I’m keeping my fingers crossed.”

Even so, “it’s going to get worse before it gets better,” she said of the national job market and economy.

Government payrolls increased by 7,000 after a 46,000 rise in the prior month.

Underemployment Rate

The so-called underemployment rate -- which includes part- time workers who’d prefer a full-time position and people who want work but have given up looking -- fell to 17.2 percent from 17.5 percent.

Economists surveyed by Bloomberg last month projected the jobless rate will exceed 10 percent through the middle of next year even as the economy expands 2.6 percent in 2010.

The U.S. economy expanded last quarter for the first time in a year, growing at a 2.8 percent pace as government incentives spurred consumers to spend more on homes and automobiles.

Some companies such as Harley-Davidson Inc. are among those continuing to trim staff to wring out additional cost savings and stem losses. The biggest U.S. motorcycle maker yesterday approved a restructuring plan at its largest plant, in York, Pennsylvania, which will result in the loss of about 950 union jobs.

“A restructured York operation will enable the plant to be competitive and sustainable for the future, and the new labor agreement is critical,” Chief Executive Officer Keith Wandell said in a statement. The Milwaukee-based manufacturer is cutting costs after nine straight quarterly losses.

To contact the reporter on this story: Timothy R. Homan in Washington at thoman1@bloomberg.net

Last Updated: December 4, 2009 09:38 EST

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 04 Dec 2009 09:19:00 -0800

Lately there has been a lot of discussion about the $729,750 loan limits being extended through 2010. And, many are excited that the tax credit for home buyers has been extended and expanded to include buyers who have owned their current homes for at least five years.

Even with those two incentives in place, there are some would-be-home-buyers that are still sitting on the fence. Here are two additional data points that may help move your clients into action:

· Today the 10 year Treasury yield is at 3.37%. This indicator corresponds to mortgage rates – typically when it's down, mortgage rates are down. Throughout this year rates have remained at historical lows; the average 10 Year Treasury yield for the last 12 months was 3.17%. However, the average yield over the last 10 years was 4.50%. In fact, from April 1953 to December 2008 the average annual yield for the 10 year Treasury was 6.36%. The highest rate during that 55 year period was 15.32%; the lowest rate was 2.29%. The high was attained in September of 1981. The low was achieved in April of 1954. Translation: Evidence shows the 10 year Treasury yield and conforming mortgage rates are at historic lows; it's unlikely they'll continue in this range throughout 2010. How often does a 55 year interest rate low occur? About every 55 years!

· And, as we discussed at Monday's meeting, last month showed another big gain in existing-home sales and inventories continue to decline. Translation: The competition is getting tougher.

If you have buyers that are waiting to buy, now may be a good time for them to take action. Doing so will let them take advantage of historically low rates and the extended first time and/or move up tax credits.

Now, on to the rates we've been seeing this week:

· 30 year conforming 4.50% 1 pt

· 30 year high balance 4.75% 1 pt.

· 30 year FHA 4.75% .50 pt.

· 30 Yr. FHA high balance 4.875% 1 pt.

· 5 year jumbo 4.25% 1 pt.

· 7 year jumbo 4.75% 1 pt.

· 10 year jumbo 5.25% 1 pt.

· 30 year jumbo 5.50% 1 pt.

Have a great weekend!Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

Current Indices*
Dow Jones: 10,365.55
Nasdaq: 2,173.14
10 Yr. Bond: 3.37%
1 Yr. T-Bill: .31%
1 Yr. LIBOR: 1.01750%
MTA Index: .481%
Prime Rate 3.25%

*Indices as of close of business Thursday.

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 20 Nov 2009 15:11:00 -0800

Next month the Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, will be making some critical changes to their automated Desktop Underwriting system (DU). These changes may impact buyers who could be approved today but will have challenges being approved for financing once these changes take effect.

Here are some of the changes that will take place as of December 12, 2009:

· Fannie Mae will no longer approve ratios exceeding 45%, unless the borrower has very strong assets and exceptional credit scores. They will not approve a debt to income ratio over 50%.

· A minimum credit score of 620 will be required.

· A minimum of 2 months reserves will be required on owner occupied purchases.

· A minimum of 6 months reserves will be required on investment purchases.

· Borrowers using stocks, bonds, or mutual funds as assets for reserves will be able to include up to 70% of their current value.

· Retirement funds will only be counted at 60% of value.

· Credit reports will have to be less than 90 days old on an existing home purchase. This will be important for anyone with an extended escrow, such as a lengthy short-sale purchase.

If you have buyers that are waiting to buy, now may be a good time for them to take action. Doing so will let them take advantage of historically low rates, the extended first time and/or move up tax credits and the more flexible guidelines that currently exist.

Now, on to the rates we've been seeing this week:

· 30 year conforming 4.50% 1 pt

· 30 year high balance 4.875% 1 pt.

· 30 year FHA 4.75% .50 pt.

· 30 Yr. FHA high balance 4.875% 1 pt.

· 5 year jumbo 4.125% 1 pt.

· 7 year jumbo 4.75% 1 pt.

· 10 year jumbo 5.125% 1 pt.

· 30 year jumbo 5.50% 1 pt.

Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

Current Indices*
Dow Jones: 10,332.44
Nasdaq: 2,156.82
10 Yr. Bond: 3.34%
1 Yr. T-Bill: .37%
1 Yr. LIBOR: 1.19938%
MTA Index: .544%
Prime Rate 3.25%

*Indices as of close of business Thursday.

www.opesadvisors.com

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 06 Nov 2009 12:25:00 -0800

The big news that everyone is talking about this week is the extension of the existing temporary conforming loan limits. This is great news for our area! It will give home buyers more opportunities to purchase and will help with the continuing stabilization of the housing market. And, just yesterday, legislation has been passed that extends and expands the eligibility of the first time home buyers' tax credit:

· $729,750 Loan Limit Extended: The temporary increase (from $417,000 to a maximum of $729,750 – depending upon area) was scheduled to expire at the end of this year. However, this extension allows the higher loan limits for Fannie Mae, Freddie Mac and the Federal Housing Administration to remain in place through the end of 2010.

Extending the current loan limits through 2010 will help keep mortgage credit more accessible and affordable for qualified borrowers.

· Tax Credit Extension: The House voted yesterday to extend and expand a tax credit for home buyers past its November 30 expiration date. Buyers who have owned their current homes for at least five years may qualify for tax credits of up to $6,500 and first-time buyers (or people who have not owned in the previous three years) could receive up to $8,000. Buyers must sign purchase contracts prior to May 1 and close before July 1. The incentive is being made available for the purchase of principal residences priced at $800,000 or less, and the break would be phased out for individuals earning more than $125,000 a year and for joint filers with annual incomes above $225,000. .

Now, on to the rates we've been seeing this week:

· 30 year conforming 4.75% 1 pt

· 30 year high balance 4.875% 1 pt.

· 30 year FHA 4.75% 1 pt.

· 30 Yr. FHA high balance 5.00% 1 pt.

· 5 year jumbo 4.375% 1 pt.

· 7 year jumbo 5.00% 1 pt.

· 10 year jumbo 5.375% 1 pt.

· 30 year jumbo 5 .750% 1 pt.

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

Current Indices*
Dow Jones: 10,005.96
Nasdaq: 2,105.32
10 Yr. Bond: 3.50%
1 Yr. T-Bill: .37%
1 Yr. LIBOR: 1.19938%
MTA Index: .544%
Prime Rate 3.25%

*Indices as of close of business Thursday.

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 23 Oct 2009 05:05:00 -0700

The IRS has determined that a taxpayer can deduct interest on the first $1.1 million of a home mortgage, which is $100k more than an earlier limit. On top of that, taxpayers can file amended returns for the past three years and claim thousands in refunds.You can read the Forbes article for more information.

Congress hasn't yet made a decision on extending and expanding the $8,000 tax credit for all first-time homebuyers. However, one group of residents did get the tax credit extended. Earlier this month the House of Representatives voted 416 to 0 and passed the Service Members Home Ownership Tax Act of 2009. This extends the first time home buyer's $8,000 tax credit for an additional year for members of the military, Foreign Service, and intelligence corps who served at least three months of qualified overseas duty in 2009. You can read the specifics by clicking here.

And, at the Federal Open Market Committee's (FOMC) September meeting there was discussion that the Federal Reserve is considering increasing their purchases of Mortgage Backed Securities (MBS). If they do make that decision it will be great for rates and the housing market. If they decide against making additional purchases we expect rates to be on a gradual rise as they slowly decrease the volume of their purchasing through Q1 2010.

Ultimately, we don't know what decisions will be made on incentive extensions and /or additional MBS purchases. What we do know is that rates are at historical lows and it's a good time for buyers to be in action.

Also, as I mentioned in the Monday meeting, I am available to attend offer presentations any time you think that would strengthen your buyer's position.

And always, here's a look at the rates we've been seeing this week:

· 30 year conforming 4.75% 1 pt

· 30 year high balance 5.125% 1 pt.

· 30 year FHA 5.00% 1 pt.

· 30 Yr. FHA high balance 5.250% 1 pt.

· 5 year jumbo 4.50% 1 pt.

· 7 year jumbo 5.250% 1 pt.

· 10 year jumbo 5.50% 1 pt.

· 30 year jumbo 5 .750% 1 pt.

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

Current Indices*
Dow Jones: 10,081.31
Nasdaq: 2,165.29
10 Yr. Bond: 3.42%
1 Yr. T-Bill: .40%
1 Yr. LIBOR: 1.26375%
MTA Index: .632%
Prime Rate 3.25%

*Indices as of close of business Thursday.

www.opesadvisors.com

Oct. 20th Weekly Update by Tracie Southerland - Opes Advisors

Tue, 20 Oct 2009 02:43:00 -0700

This week we heard that Congress is considering proposals to extend and expand the $8,000 tax credit for first-time homebuyers.

There is nothing definitive as of yet, but they are considering making the credit available to all homebuyers regardless of income (except those at the highest end of the income scale) and increasing the amount of the credit from $8,000 to $15,000. I'll be sure to let you know the outcome when it is decided.

Here's a look at the rates we've been seeing this week:

· 30 year conforming 4.75% 1 pt

· 30 year high balance 5.125% 1 pt.

· 30 year FHA 4.75% 1 pt.

· 30 Yr. FHA high balance 5.125% 1 pt.

· 5 year jumbo 4.375% 1 pt.

· 7 year jumbo 5.00% 1 pt.

· 10 year jumbo 5.50% 1 pt.

· 30 year jumbo 5 .625% 1 pt.

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

Current Indices*
Dow Jones: 10,062.94
Nasdaq: 2,173.29
10 Yr. Bond: 3.46%
1 Yr. T-Bill: .40%
1 Yr. LIBOR: 1.26375%
MTA Index: .632%
Prime Rate 3.25%

*Indices as of close of business Thursday.

www.opesadvisors.com

Bloomberg; Housing Market Improving

Tue, 20 Oct 2009 02:41:00 -0700

By Courtney Schlisserman

Oct. 18 (Bloomberg) -- Homebuilders and real-estate agents were probably busier in September, and the index of leading indicators increased, adding to evidence the next U.S. expansion has begun, economists said before reports this week.

Construction started last month on 610,000 houses at an annual rate, the most since November, according to the median forecast of 53 economists surveyed by Bloomberg News before an Oct. 20 Commerce Department report. Sales of existing homes rose to a two-year high and the gauge of the economy’s future course advanced for a sixth month, other reports may show.

Housing is stabilizing as Americans take advantage of government programs, including credits for first-time buyers and efforts to lower borrowing costs, aimed at stemming the recession. Some Federal Reserve policy makers remain concerned the economy will relapse should the stimulus be removed too soon, signaling interest rates will remain low for months.

“The housing market is recovering from very depressed levels,” said Zach Pandl, an economist at Nomura Securities International Inc. in New York. “We’re definitely emerging from recession, finding a bottom in some sectors, but the recovery is still uneven and it’s not particularly vigorous.”

Building permits, a sign of future activity, may have risen to a 590,000 pace, also the highest since November, the Commerce Department’s report on housing starts may show, according to the survey median.

In April, builders broke ground on new homes at a record- low 479,000 pace.

Leading Index

The index of leading economic indicators, due from the New York-based Conference Board on Oct. 22, may have risen 0.9 percent, according to the survey of economists. The gain was probably driven by the increase in building permits, a drop in claims for jobless benefits and an improvement in consumers’ outlooks, economists said.

A sixth consecutive gain in the leading index would mark the best performance since early 2004.

U.S. stocks have risen in recent weeks amid better-than- forecast earnings and signs the economy is improving. The Standard & Poor’s 500 Index closed at the highest level in a year on Oct. 15.

Google Inc., the world’s most popular Internet search engine, plans to resume hiring and acquisitions after the recovering economy helped third-quarter sales beat analysts’ estimates. Large customers stepped up spending on Google ads last quarter, a rebound from the first half of the year, Chief Financial Officer Patrick Pichette said.

‘Incredible Recession’

“We weathered what is an incredible recession,” Pichette said in an interview last week. “If you have all this behind you, the only outcome you should have as management is: ‘OK, let’s build now.’”

Fed policy makers at their September meeting decided to slow purchases of mortgage securities to avoid disrupting the housing market while extending the duration of the program by three months. In the minutes of the Sept. 22-23 meeting, which were released last week, they noted the housing market and retail sales got a boost from government incentives.

The Fed’s Beige Book report on regional economies, scheduled to be released on Oct. 21, will be used by policy makers to gauge the state of the housing market and the economy overall when they meet again in the first week of November.

An Oct. 23 report from the National Association of Realtors may show that sales of existing homes rose to a 5.35 million rate last month, according to the Bloomberg survey. That would be the highest level since August 2007.

Less Pessimistic

Tomorrow, a report may show builder confidence continued to climb this month. The National Association of Home Builders/Wells Fargo index probably rose to 20 from 19, economists surveyed said. It would be the seventh straight increase. While higher, readings less than 50 still signal that most respondents view conditions as poor.

Finally, a Labor Department report on Oct. 20 may show wholesale prices were unchanged in September, compared with a 1.7 percent increase a month earlier. Excluding food and energy, prices increased 0.1 percent, compared with a 0.2 percent gain in August, according to the survey, indicating inflation isn’t a risk as the economy recovers.

                      Bloomberg Survey

===============================================================

                        Release    Period    Prior     Median

Indicator                 Date               Value    Forecast

===============================================================

NAHB Housing Index       10/19      Oct.       19        20

PPI  MOM%                10/20     Sept.      1.7%      0.0%

Core PPI MOM%            10/20     Sept.      0.2%      0.1%

PPI  YOY%                10/20     Sept.     -4.3%     -4.3%

Core PPI YOY%            10/20     Sept.      2.3%      2.0%

Housing Starts ,000’s    10/20      Aug.      598       610

Building Permits ,000’s  10/20      Aug.      580       590

Initial Claims ,000’s    10/22     10-Oct     514       517

Cont. Claims ,000’s      10/22     3-Oct      5992      5990

LEI  MOM%                10/22     Sept.      0.6%      0.9%

Exist Homes Mlns         10/23     Sept.      5.10      5.35

Exist Homes MOM%         10/23     Sept.     -2.7%      5.0%

===============================================================

To contact the reporter on this story: Courtney Schlisserman in Washington cschlisserma@bloomberg.net 
Last Updated: October 18, 2009 00:00 EDT

Supply & Demand through Sept. 2009

Tue, 13 Oct 2009 06:26:00 -0700

Supply & Demand

Supply & Demand Units-

1. 2 year (Sept 2007 vs Sept 2008 comparisons)

a. For Sale/Inventory (Supply) -34.8%

b. Under Contract (Pending Sales) +164.3%

c. Sold (closed sales) +90.6%

2. New Listings coming on the month comparison:

a. Sept 07- 2416

b. Sept 08- 2570

c. Sept 09- 2015

Therefore nearly 20% fewer "new listings" coming on the market in Sept 2009 vs previous 2 years

Market Dynamics Percent Under Contract Through Sept. 2009

Tue, 13 Oct 2009 06:23:00 -0700

Percent Under Contract

Percent Under Contract-

1. We are @ Peak of last 24 months with 28.8% of all active inventory "in escrow/pending"

2. This figure has climbed each month since the low of 8% in Nov of 2008. Sept of 2007 was 7.1%, Sept of 2008 was 9.8%.

Market Dynamics Median Price Through Sept. 2009

Tue, 13 Oct 2009 06:21:00 -0700

Market Dynamics - Median Price

Median Price-

1. The median price dipped slightly for the first time since May of 2009 to $500,000

2. Had moved up from a yearly low of $440,000 up to $510,000 at month end in August.

3. This present Median Price is closest to the median around Sept/Oct of 2008.

3. 1 year ago Median was $529,000, 2 years ago median was $739,000

4. Therefore, biggest median decline was from 2007 to 2008 (-32%)

5. Median Price has only down 2% from 2008 to 2009

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 09 Oct 2009 04:44:00 -0700

I've been hearing reports that the new disclosure guidelines and appraisal regulations have been tripping up escrows. It's unfortunate for that to occur in the final hours of a closing. Rest assured, if managed correctly short closes can still be accomplished. As an example, we are closing two 14 day escrows next week.

Here's a look at the rates we've been seeing this week:

· 30 year conforming 4.50% 1 pt

· 30 year high balance 4.75% 1 pt.

· 30 year FHA 4.75% 1 pt.

· 30 Yr. FHA high balance 5.00% 1 pt.

· 5 year jumbo 4.375% 1 pt.

· 7 year jumbo 4.875% 1 pt.

· 10 year jumbo 5.375% 1 pt.

· 30 year jumbo 5 .50% 1 pt.

Tracie

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 02 Oct 2009 03:26:00 -0700

This week we began hearing speculation that the $8,000 first time home buyer tax credit may be extended for six months (which would take us into May 2010). I will be sure to let you know if/when any definitive details are released regarding this sneaking suspicion.

Most of the economic news released this week favored the bond market and mortgage prices - as you'll see in the rates below:

· 30 year conforming 4.50% 1 pt

· 30 year high balance 4.75% 1 pt.

· 30 year FHA 4.75% 1 pt.

· 30 Yr. FHA high balance 4.875% 1 pt.

· 5 year jumbo 4.25% 1 pt.

· 7 year jumbo 4.875% 1 pt.

· 10 year jumbo 5.50% 1 pt.

· 30 year jumbo 5.625% 1 pt.

Have a great weekend!
Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

Current Indices*
Dow Jones: 9,509.28
Nasdaq: 2,057.48
10 Yr. Bond: 3.18%
1 Yr. T-Bill: .46%
1 Yr. LIBOR: 1.33%
MTA Index: .758%
Prime Rate 3.25%

*Indices as of close of business Thursday.

Pumpkin Contest 2009

Tue, 29 Sep 2009 04:11:00 -0700

Pumpkin Contest

A Holiday Pumpking Decorating Contest! Click on the PDF file to learn more!

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 25 Sep 2009 08:31:00 -0700

Right now buyers and sellers are enjoying the benefits from the stimulus packages implemented by the Federal Reserve and the Government. And, if they act now they may be able to take advantage of these opportunities while they are still in effect.

· First Time Buyer Tax Credit of up to $8,000: This credit is for single people making $75,000 or less, and married couples filing a joint return making $150,000 or less. Buyers may not know that a credit is better than a deduction because a credit is a dollar for dollar reduction of their income tax bill. Amended returns can be filed this year to speed up getting credit money.

Escrows must be closed by November 30, 2009 in order to qualify. As a mortgage bank, Opes Advisors funds loans at our local branch and regularly closes loans within 30 days (and can do so faster, if need be).

· Increased conforming loan limit of $729,750: This loan limit is scheduled to end on December 31, 2009. That means escrows must be closed by that date. Note: because lenders know that the program is ending, they will want to clear their books of these loans. To help them do that, they will start increasing rates on these programs in advance of the end date. We're already getting word from some of our lending sources of planned rate increases.

· New Mortgage Information Disclosure Act (MDIA): The MDIA changes that recently took effect are now in full swing. If your buyers got into contract over the past month, now is the time that they may experience issues on property disclosure and re-disclosure that can unexpectedly delay closings at the last minute. Check with the lenders on your transactions to ensure that they have the processes in place to meet these new requirements and to ensure meeting your planned closing dates.

· Federal Reserve Buying Mortgage Backed Securities (MBS): As we know, the Federal Reserve has committed to buying $1.25 Trillion of MBS from Fannie and Freddie. As of last week they had purchased $849 Billion, or 67% of their commitment.

At their meeting this week, and as expected, the Fed did not touch interest rates. However, they did announce that they will not be making additional MBS purchases; they will draw out the remaining commitment of the purchases through the first quarter of 2010.

Before the meeting there was some speculation that the Fed might increase the amount of buying - above the $1.25T to which they are already committed. Instead, what they will do is attempt to provide a smoother transition to normal market conditions. Once the Fed ceases its purchases, interest rates are expected to climb higher.

Your clients may be wondering, “What does this mean for rates in the short term?” and, “Why did the Bond market rally on this news?” The rally was more than likely due to the headlines from the media which reported that the program was “extended.” The markets reacted positively to this by thinking that the program would stay in place, as is, for three more months.

The Fed has been buying about $25B per week, but the new plan to extend these purchases over a longer period of time means that they will be reducing both the frequency and amounts of their purchases. This will cause higher levels of volatility, as the Fed will be purchasing less often and less consistently. While we have avoided seeing a sudden jerk higher in rates when the Fed buying program comes to an end, it is clear that rates are now going to be on a gradual rise. Waiting to purchase or refinance will mean a higher interest rate.

It is an optimal time for buyers to take advantage of these offers and for sellers to utilize these structures to help them get their homes sold. Please let me know if you'd like to meet to discuss mortgage or financial strategies for your buyers or sellers.

Now, on to the rates we've been seeing this week:

· 30 year conforming 4.75% 1 pt

· 30 year high balance 4.875% 1 pt.

· 30 year FHA 4.75% 1 pt.

· 30 Yr. FHA high balance 5.125% 1 pt.

· 5 year jumbo 4.375% 1 pt.

· 7 year jumbo 4.875% 1 pt.

· 10 year jumbo 5.50% 1 pt.

· 30 year jumbo 5.750% 1 pt.

Have a great weekend!
Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

Current Indices*
Dow Jones: 9,707.44
Nasdaq: 2,107.61
10 Yr. Bond: 3.38%
1 Yr. T-Bill: .46%
1 Yr. LIBOR: 1.33%
MTA Index: .758%
Prime Rate 3.25%

*Indices as of close of business Thursday.

www.opesadvisors.com

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 18 Sep 2009 00:00:00 -0700

This week we received some mixed (but overall positive) economic news. Here's a quick review of some of the details:

· Housing Starts for August rose to 598,000, which is better than the 583,000 expected and is the highest level since last November. Building Permits came in at 579,000 - a bit shy of the 583,000 expected. All in all, this is a decent report and suggests that while we are not completely out of the woods, the worst in the housing market may have passed.

· The Consumer Price Index (known as “CPI” or “headline CPI”) rose 0.4% in August, a bit higher than the expected 0.3%. At the same time the core CPI index, which excludes goods with high price volatility (such as food and energy), was unchanged from the previous month and in line with expectations of 0.1%. In the past year the headline CPI has fallen 1.5% due to energy prices dropping by 23% over the same period. The more closely watched Core CPI is up only 1.4% on a year over year basis, the smallest gain since February 2004.

· Stocks are at 2009 highs and got an additional boost this week when billionaire investor Warren Buffet remarked that the US economy has bottomed out. He went on to say that we are also through the worst of the residential housing decline. This echoed comments made by Fed Chair, Ben Bernanke, who said that the recession is likely over.

The good news in all of these reports is that while the stock market is growing steadily, inflation remains tame. These factors (increased down payments and low interest rates) coupled with the improving jumbo market bodes well for our area and is great incentive for clients who are ready to buy.

And, as always, here are some of the rates we've been seeing this week:

· 30 year conforming 4.75% 1 pt

· 30 year high balance 4.875% 1 pt.

· 30 year FHA 4.75% 1 pt.

· 30 Yr. FHA high balance 5.125% 1 pt.

· 5 year jumbo 4.375% 1 pt.

· 7 year jumbo 4.875% 1 pt.

· 10 year jumbo 5.50% 1 pt.

· 30 year jumbo 5.750% 1 pt.

Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

Current Indices*
Dow Jones: 9,783.92
Nasdaq: 2,126.75
10 Yr. Bond: 3.39%
1 Yr. T-Bill: .46%
1 Yr. LIBOR: 1.33%
MTA Index: .758%
Prime Rate 3.25%

*Indices as of close of business Thursday.

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 11 Sep 2009 00:00:00 -0700

As we all know, purchasing real estate in the Bay Area is a significant investment and there are many emotional and financial factors associated with buying a home. Recently I've been working with some clients that aren't certain what actions to be in to meet both their lifestyle and financial goals.

Some of them are interested in moving into bigger homes and improving their lifestyles, while taking advantage of low interest rates and home prices. At the same time, they are concerned that if they won't get the purchase price that they want for their existing home, they may want to stay put.

One of the key advantages for my clients is that, as part of the mortgage process, I utilize Opes' proprietary software program to take into account their various “what ifs” in life. As you've seen, the power of the program is in its ability to analyze the tradeoffs within life and show the impact those decisions can have on clients' specific goals for the future. And, it can be immediately modified as often as needed to consider additional scenarios.

Below are some “what ifs” that I recently reviewed with one of my clients:

· What if you stay in your current home for the foreseeable future?

· What if you sell now for $1,000,000, buy a new house for $1,300,000 and reduce your lifestyle expenses?

· What if you decide to hold out for 5 years when you think you can sell your home for $1,200,000 (vs. $1,000,000 today) and buy a new house then for $1,550,000?

The detailed analysis of the above scenarios revealed varying outcomes. You can click here to view the impact these “what ifs” had on my client's situation. Reviewing the specific results gave my client the information needed to move forward with confidence. This is the power of integrating both the asset side and the debt side of your balance sheet.

And, as always, below are some of the rates we've been seeing this week:

· 30 year conforming 4.625% 1 pt

· 30 year high balance 4.875% 1 pt.

· 30 year FHA 4.875% 1 pt.

· 30 Yr. FHA high balance 5.125% 1 pt.

· 5 year jumbo 4.375% 1 pt.

· 7 year jumbo 4.875% 1 pt.

· 10 year jumbo 5.50% 1 pt.

· 30 year jumbo 5.750% 1 pt.

Have a great weekend!
Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

Current Indices*
Dow Jones: 9,627.48
Nasdaq: 2,084.02
10 Yr. Bond: 3.35%
1 Yr. T-Bill: .46%
1 Yr. LIBOR: 1.33%
MTA Index: .758%
Prime Rate 3.25%

*Indices as of close of business Thursday.

Weekly Update by Tracie Southerland - Opes Advisors

Wed, 02 Sep 2009 04:26:00 -0700

There are only 95 days remaining to take advantage of the $8,000 tax credit for first- time homebuyers. Prime candidates for the homebuyer credit are those who haven't owned a home before and whose income falls below the threshold of $75,000 for individuals or $150,000 for married couples.

First-time buyers who purchase a home and close escrow before December 1, 2009 may be eligible for this credit. As a reminder, unlike a tax deduction that only reduces the amount of your taxable income, a tax credit reduces the amount of tax you owe. If you know first-time buyers who are considering a home purchase, it’s a great time to remind them of this added benefit to buying a home now.

Here are some highlights of the 2009 first-time homebuyer credit:

· The credit is 10% of the purchase price, to a maximum of $8,000 ($4,000 for married individuals filing separate returns).

· Generally speaking the credit does not have to be paid back. However, if the home ceases to be a principal residence within 36 months after the purchase (closing) date, the full credit must be repaid.

· The credit is refundable. This means, if the client's tax bill is less than $8,000, the government will issue a check.

· As noted above, escrow must close before December 1, 2009.

· To qualify, the taxpayer must not have owned and occupied a principal residence at any time during the three years prior to the date of purchase.

· If one spouse does not qualify for the credit, neither spouse may take it.

· The home cannot be purchased from a close relative (spouse, parent, grandparent, child or grandchild).

· After the home is purchased, homebuyers may amend their 2008 returns to get the credit faster or simply wait until they file their 2009 tax returns to claim it.

You can find out more about filing for the tax credit, download the new First-Time Homebuyer IRS Form 5405 or get more information on the program by clicking here.

And, as always, below are the rates we've been seeing this week:

· 30 year conforming 4.875% 1 pt

· 30 year high balance 5.125% 1 pt.

· 30 year FHA 4.875% 1 pt.

· 30 Yr. FHA high balance 5.25% 1 pt.

· 5 year jumbo 4.75% 1 pt.

· 7 year jumbo 5.125% 1 pt.

· 10 year jumbo 5.625% 1 pt.

· 30 year jumbo 5.875% 1 pt.

Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

Current Indices*
Dow Jones: 9,580.63
Nasdaq: 2,027.73
10 Yr. Bond: 3.45%
1 Yr. T-Bill: .48%
1 Yr. LIBOR: 1.49750%
MTA Index: .901%
Prime Rate 3.25%

*Indices as of close of business Thursday.

Silicon Valley median house price rises. Sue McAllister The Mercury News

Tue, 01 Sep 2009 09:21:00 -0700

Silicon Valley median house price rises in July to $540,000

By Sue McAllister

smcallister@mercurynews.com

Posted: 08/21/2009 10:18:19 AM PDT

Updated: 08/27/2009 09:35:29 AM PDT

Real Estate

The median price of houses sold in Santa Clara County shot up by a record amount in July — rising 11 percent to $540,000 — in a sign that buyers are venturing beyond bargain-priced foreclosed properties and into more expensive neighborhoods.

The county's median price has jumped 29 percent so far in 2009, according to MDA DataQuick, which released the numbers Friday. But it is still 17 percent lower than it was in July last year.

The data arrived on the same day as two other positive economic indicators: The National Association of Realtors reported a 7.2 percent increase in the volume of home sales across the nation, and Fed Chairman Ben Bernanke waxed optimistic about an economic recovery. In response, major stock indexes rose to 2009 highs.

The unprecedented $55,000 June-to-July local price increase — the largest in DataQuick's records for the county, which date to 1988 — was fueled by several factors, the company reported: more motivated sellers in high-end neighborhoods where foreclosures are starting to spring up, and the availability of larger home loans at low interest rates.

But the steep rise in median price doesn't mean buyers are suddenly willing to pay that much more for houses, said Wayne Yamano, senior manager at John Burns Real Estate Consulting, based in Orange County.

"The low end has been driving the market for a while now, but now that that distress is subsiding a little, you're

starting to see more transactions in the higher end, and that's just naturally going to shift the median price upwards," he said.

By one measure, the sales volume of higher-priced Silicon Valley homes has more than doubled from earlier this year. According to DataQuick, homes priced at $800,000 or more made up 23 percent of Santa Clara County houses sold in July, compared with a low of 11 percent in January.

Yamano and his colleagues say they believe many recent sales have been spurred by the federal government's $8,000 tax credit for first-time buyers, which expires at the end of November.

When it does, Yamano said, home sales and median prices statewide are likely to fall again before rising slowly beginning in 2010, forming a "W-shaped" recovery. The Bay Area may behave slightly differently, he said.

"Sales volumes in the Bay Area may have bottomed already," he said, but home price recovery will be gradual. "We think there's still going to be pressure on the Bay Area job market next year and possibly into 2011. ... Even if prices have bottomed out, we don't see a case for them to shoot back up very quickly."

A total of 1,531 previously owned single-family homes sold in the county last month, 35 percent

more than in July 2008, and the highest total for any July since 2005, when the housing boom was still in full swing. Across the nine-county Bay Area, single-family home sales volume was up 18 percent from a year earlier.

The median price of houses sold last month across the Bay Area moved to $408,250, a 16 percent decrease from a year earlier, but up from $360,000 in June. The median price marks the halfway point, meaning half the homes sold for more and half for less. DataQuick gathers its data from public records of sales that closed in July.

The median price of Bay Area condos sold last month was $290,000, up from $255,000 in June but down 26 percent from July 2008. In Santa Clara County, the condo median price last month was $300,000, basically flat from June and down 30 percent from July 2008.

Jeff Hansen, an agent with Keller Williams, said recent sales in one downtown condo complex provide a snapshot of price trends among lower-cost homes. At the Ryland Mews complex on North First Street, he said, a top-floor two-bedroom sold about four months ago for $330,000. Two weeks ago, a comparable unit also sold for $330,000, and another one that was priced at $330,000 just went into escrow after a fairly short time on the market.

"Up until recently, we've seen that every sale is less than the one before. You wouldn't have gotten a buyer who would say, 'OK, I'll pay the same as the last buyer.' This is starting to look like price stabilization."

Tina Thanh, one of Hansen's buyer clients, has been looking for a San Jose or Santa Clara condo in the $300,000 range for about a year, and in the past several months she has made offers on six properties.

"Sad to say, I haven't had any accepted offers," said Thanh, a manager for an aviation-support company at the San Jose airport. Many of the condos she's liked have gotten multiple offers in their first day on the market. With the downturn in the economy and employment, she said, "I'm very shocked and surprised there are still a lot of people who can afford homes. It's very competitive out there."

But competition is mostly contained to the more affordable neighborhoods. In San Jose's Santa Teresa area, for example, where entry-level houses abound, it would take less than three weeks to sell all the houses on the market based on the recent sales pace, said Richard Calhoun of Creekside Realty. In Willow Glen, which has more million-dollar-plus homes, there is a 14-week supply. In even higher-priced Los Gatos, the inventory would last for 24 weeks.

Contact Sue McAllister at 408-920-5833.

Bloomberg; Existing Home Sales in US Jump to Two Year High

Tue, 01 Sep 2009 08:57:00 -0700

Existing Home Sales in U.S. Jump to Two-Year High (Update2)

Share | Email | Print | A A A

By Shobhana Chandra

Aug. 21 (Bloomberg) -- Sales of existing U.S. homes jumped more than forecast in July to the highest level in almost two years, signaling the housing crisis that crippled the world’s largest economy is easing.

Purchases climbed 7.2 percent to a 5.24 million annual rate, the most since August 2007, the National Association of Realtors said today in Washington. The gain was the biggest since records began in 1999. The median price fell 15 percent.

Foreclosure-driven declines in prices, government credits for first-time buyers and near-record-low borrowing costs may keep stoking demand, helping the economy recover from the worst recession since the 1930s. Ongoing job losses are a reminder that more Americans will probably lose their homes, indicating a rebound will be slow to take hold.

“More and more buyers are becoming convinced that there is not a lot of downside left in the housing market,” said Ellen Zentner, a senior economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York. “We can count on housing no longer being a drag. The economic recovery is on track.”

Stocks jumped and Treasury securities dropped after the report added to evidence the housing market was turning. The Standard & Poor’s 500 index rose 1.6 percent to 1,023.67 at 10:24 a.m. in New York. The yield on the 10-year note jumped to 3.51 percent from 3.43 percent late yesterday.

Exceeds Forecast

Existing home sales were forecast to rise to a 5 million annual rate, according to the median forecast of 64 economists in a Bloomberg News survey. Estimates ranged from 4.8 million to 5.25 million. June’s pace was unrevised at 4.89 million.

Sales had reached a 4.49 million pace in January, their lowest level since comparable records began in 1999.

Purchases of existing homes increased 5 percent compared with a year earlier. The median price dropped to $178,400 from the $210,100 in July 2008.

The number of previously-owned unsold homes on the market jumped 7.3 percent to 4.09 million in July, a “notable” increase, according to Lawrence Yun, the Realtors’ chief economist. At the current sales pace, it would take 9.4 months to sell those houses, the same as in June.

A seven months’ supply is usually consistent with stabilization in prices, Yun said last month.

Distressed Sales

The share of homes sold as foreclosures or otherwise distressed properties held to 31 percent in July, he said.

Today’s report showed sales of existing single-family homes increased 6.5 percent to an annual rate of 4.61 million. Sales of condominiums and co-operatives climbed 13 percent to a 630,000 rate.

Purchases increased in three of four regions, led by a 13 percent jump in the Northeast.

The figures are compiled from contract closings and may reflect purchases agreed upon weeks or months earlier. Many economists consider new-home sales, recorded when a contract is signed, a more timely barometer of the market.

The Commerce Department may report next week that purchases of new houses rose in July to the highest level since November, according to the Bloomberg survey.

Home Depot Inc., the largest home-improvement retailer, is among businesses cutting costs to ride out the housing recession. The Atlanta-based company reported second-quarter profit that fell less than analysts estimated and raised its annual earnings forecast after trimming expenses, even as it projected a sales decline for the year.

‘Better’ Performance

“Performance across most of our regions is better,” Chief Executive Officer Frank Blake said on a conference call with analysts on Aug. 18. “But caution is still appropriate,” and “we remain concerned by the high level of foreclosure activity,” he said.

About $3.4 trillion worth of houses are at risk of default because the owners owe more than the property is worth, Santa Ana, California-based First American CoreLogic said last week. By putting more homes on the market, foreclosures are keeping inventory higher than levels consistent with stable prices.

Obama administration efforts to revive housing include an $8,000 federal tax credit for first-time buyers who complete the transaction before Dec. 1. The government also is offering lenders incentives to modify the terms of delinquent mortgages, and the Federal Reserve is buying mortgage-backed securities to help reduce borrowing costs.

The first-time buyers accounted for about 30 percent of sales last month and the government’s credit is having a “significant impact” on sales, the NAR’s Yun said.

To contact the reporter on this story: Shobhana Chandra in Washington at schandra1@bloomberg.net

Last Updated: August 21, 2009 10:28 EDT

Home Prices Surge Nearly 3 Percent

Tue, 01 Sep 2009 00:00:00 -0700

Home Prices Surge Nearly 3 Percent

By J.W. ELPHINSTONE,AP

posted: 43 MINUTES AGO

filed under: Financial Crisis

NEW YORK (Aug. 25) - U.S. home prices posted their first quarterly increase in three years, signaling the housing market has turned a corner.

The Standard & Poor's/Case-Shiller's U.S. National Home Price Index released Tuesday rose nearly 3 percent from the first quarter to 133, though that reading is still down almost 15 percent from the second quarter last year.

Home prices are at levels not seen since early 2003. Prices have fallen 30 percent from the peak in the second quarter of 2006.

The monthly index of 20 major cities increased 1.4 percent from May to June to 142, the second straight month the index registered a gain. All but two cities, Las Vegas and Detroit, saw home prices rise, and Dallas and Denver clocked their fourth-straight monthly increase.

Prices, however, have a long way to go to recover completely. Every metro showed annual declines, with fifteen reporting double-digit drops.

The Case-Shiller index is a composite of home price indexes for the nine U.S. census divisions. The 20-city index measures home price increases and decreases relative to prices in January 2000. The base reading is 100; so a reading of 150 would mean that home prices increased 50 percent since the beginning of the index.

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 21 Aug 2009 10:41:00 -0700

Below are the rates we've been seeing this week (take a look at the 5 year jumbo!):

· 30 year conforming 5.00% 1 pt

· 30 year high balance 5.25% 1 pt.

· 30 year FHA 5.00% 1 pt.

· 5 year jumbo 4.75% 1 pt.

· 7 year jumbo 5.25% 1 pt.

· 10 year jumbo 5.75% 1 pt.

· 30 year jumbo 6.00% 1 pt.

Have a great weekend!
Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

Current Indices*
Dow Jones: 9,350.05
Nasdaq: 1,989.22
10 Yr. Bond: 3.435%
1 Yr. T-Bill: .47%
6 mo. LIBOR: .92500%
MTA Index: .901%
Prime Rate 3.25%

*Indices as of close of business Thursday.

This Weeks Rates from Tracie Southerland Opes Advisors

Fri, 14 Aug 2009 09:02:00 -0700

This week we enjoyed a nice rally in the bond market and, as you'll see, rates have improved from last week. However, before I get into the rate specifics, I thought you might enjoy a little chuckle to kick off your Friday.

Now, on to the rates we've been we've been seeing:

· 30 year conforming 5.00% 1 pt

· 30 year high balance 5.25% 1 pt.

· 30 year FHA 5.00% 1 pt.

· 5 year jumbo 5.125% 1 pt.

· 7 year jumbo 5.375% 1 pt.

· 10 year jumbo 5.75% 1 pt.

· 30 year jumbo 6.00% 1 pt.

Have a great weekend!
Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

Current Indices*
Dow Jones: 9,380.00
Nasdaq: 1,631.75
10 Yr. Bond: 3.591%
1 Yr. T-Bill: .48%
6 mo. LIBOR: .92500%
MTA Index: .901%
Prime Rate 3.25%

*Indices as of close of business Thursday.

Weekly Update by Tracie Southerland - Opes Advisors

Tue, 11 Aug 2009 04:35:00 -0700

Here are some of the current LTV/financing options:

· 80% to $1,000,000

· 75% to $1,500,000

· 70% to $2,500,000

· 65% to $3,500,000

· 60% to $5,000,000

The above LTVs are county specific. Please let me know have any questions about financing options for your clients.

And, as always, below are some of the rates we've been seeing:

· 30 year conforming 5.125% 1 pt

· 30 year high balance 5.375% 1 pt.

· 30 year FHA 5.250% 1 pt.

· 5 year jumbo 5.250% 1 pt.

· 7 year jumbo 5.625% 1 pt.

· 10 year jumbo 6.00% 1 pt.

· 30 year jumbo 6.250% 1 pt.

Have a great weekend!
Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

Current Indices*
Dow Jones: 9,256.26
Nasdaq: 1,973.16
10 Yr. Bond: 3.74%
1 Yr. T-Bill: .48%
6 mo. LIBOR: .92500%
MTA Index: .48%
Prime Rate 3.25%

*Indices as of close of business Thursday.

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 31 Jul 2009 07:32:00 -0700

A few weeks ago I covered a few highlights of the amendments to the Home Ownership and Equity Protection Act (HOEPA) and Housing and Economic Recovery Act (HERA) guidelines that took effect yesterday. Now that they are in full swing, I want to take the opportunity to review some of the key regulations in more detail:

Regulation: There must be a seven business day waiting period between the date the initial Truth in Lending (TIL) disclosure is provided to the consumer and the date the loan documents are signed. A business day is defined as any day except Sunday and Federal Holidays.

Reality: For a pre-approval, the initial disclosure TIL (and the start of the seven business day waiting period) can be provided to the consumer before the property is identified.

Regulation: A change of more than (+/-).125% in the Annual Percentage Rate (APR) from the initial TIL requires the TIL disclosure to be revised and reissued to the homebuyer. The homebuyer must receive a revised TIL disclosure at least 3 business days before signing, providing the homebuyer with the time required to determine if they are comfortable with their loan choice.

Reality: This guideline has seemed to cause the biggest concern. Once a client gets into contract they will receive a re-disclosure from their lender IF the specifics of the purchase (loan amount, interest rate, term, etc. . .) cause a change of
(+/-).125% in the APR. Other instances where there could be a potential impact on the APR is if there is a delay in closing and the borrower has to pay more points in order to get an extension on their rate. However, on high balance loans, a change of .125% has more tolerance than you might think. For example, if the borrower pays .375% in points to extend their lock, it most likely will not raise the APR more than .125%.

Regulation: No fees, other than a bona fide credit report fee can be charged prior to the initial TIL disclosure being received by borrower.

Reality: Prior to the implementation of these regulation changes, we collected the appraisal fee and ordered the appraisal at the onset of the loan process. However, under these new guidelines, no additional fees can be collected until the borrower receives the TIL disclosure. One way to accelerate the process is to email the initial TIL to the borrower. Once they acknowledge receipt of the disclosure (via reply email) an appraisal can be immediately ordered.

Regulation: The home buyer must be provided with a copy of their appraisal a minimum of three days prior to signing.

Reality: We have been following this practice for some time now. The appraisal is given to the client as soon as we receive it, which is long before we have even drawn loan documents.

There are a lot of conversations in the industry right now about these new regulations. And, there is always the potential that people will get tangled in these new guidelines. In anticipation of these changes, Opes has already implemented specific procedures to enable us to avoid unnecessary pitfalls. And, as a mortgage bank, we continue to accommodate short escrows and our typical close is within 30 days.

As always, below are some of the rates we've been seeing:

· 30 year conforming 4.875% 1 pt

· 30 year high balance 5.25% 1 pt.

· 30 year FHA 5.25% 1 pt.

· 5 year jumbo 5.125% 1 pt.

· 7 year jumbo 5.50% 1 pt.

· 10 year jumbo 5.875% 1 pt.

· 30 year jumbo 6.125% 1 pt.

Have a great weekend!
Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

Exclusively for

Current Indices*
Dow Jones: 9,154.46
Nasdaq: 1,989.30
10 Yr. Bond: 3.6%
1 Yr. T-Bill: .51%
6 mo. LIBOR: 1.11125%
MTA Index: 1.051%
Prime Rate 3.25%

*Indices as of close of business Thursday.

Weekly Update by Tracie Southerland - Opes Advisors

Fri, 17 Jul 2009 05:45:00 -0700

As always below are some of the rates we've been seeing:

· 30 year conforming 4.875% 1 pt

· 30 year high balance 5.25% 1 pt.

· 30 year FHA 5.25% 1 pt.

· 5 year jumbo 4.875% 1 pt.

· 7 year jumbo 5.250% 1 pt.

· 10 year jumbo 5.625% 1 pt.

· 30 year jumbo 6.00% 1 pt.

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603
License 01190919

The Goldman Report 7/08/09 by Avram Goldman

Wed, 08 Jul 2009 06:11:00 -0700

Can You See the Bottom Yet?

I am consistently being asked, “have we reached bottom yet?” Whether it is buyers, sellers, the press or agents, everyone wants to know is the worst behind us.

The current Bay Area data reflects that the watermark in the under $500K market has been set. Median price has either been flat or rising in all counties in that price range over the last 90 days and depending on the county, we are beginning to see price stabilization in properties up to $700K. Last week you might have thought it was 2005, our SF Sunset 2 bedr. 1ba. listings priced at $545K received 53 offers. A new record for this market. Now some may say the property was a bit under priced, maybe, however it went well above the asking price. This listing demonstrates that there is certainly strong demand for that neighborhood and that buyer’s confidence is rising.

These price ranges are steadying because of diminishing inventories and sellers, which includes both banks and individuals, now coming to a more realistic view of pricing. Buyers have done their homework and know values. There is no “greater fool theory” operating. More and more buyers are evaluating based on dollar per sq. foot.

There are still challenges in the million dollar plus price range as I stressed in my last posting. Inventories are building and days on market are increasing. The million dollar plus market is hampered by lenders’ apprehensions over value. The lending industry feels prices will continue to drop and are requiring larger down payments, solid gold borrowers and, in some cases more than one appraisal. They are also concerned about the potential inventory that will be created when lenders begin to foreclose on homes whose mortgages are currently delinquent. However, not every million dollar property reflects the current trend, as we witnessed in the closing of a SF Marina $1.8 mil. listing that received 16 offers and sold 20% over the asking price or the 5 offers that were garnered on the San Anselmo 4 bedr. 2 ba. home on an acre that was listed at $1.2 million and went into escrow over list price. These are the exceptions, not the rule. Buyers will not overpay even in multiple offers. A $1.15 mil. listing received 4 offers, but still went under the asking price. What it does reflect is that every area is unique and so is each home. We can’t broad brush an entire geographic area. This sector of the market will remain challenged.

The three million dollar and up range is still seeing some activity. The very special properties in exclusive neighborhoods with exceptional amenities are finding buyers. Our $3.2 mil listing in the Shiloh gated community of Santa Rosa went into escrow a week ago. Most of the transactions in this price category and up are primarily all cash transactions. Even the buyers in this range are looking for value as they realize that prices have come down substantially from the peak.

Activity at open houses still remains active, especially in the single family home category. The majority of these open homes are in double digit numbers with a number of homes attracting 30-50 groups. This is particularly the case in the East Bay and San Francisco. The North Bay is slower, but in the most desired areas we are still seeing well attended open houses.

Interest rates have held steady and have decreased slightly from the current high watermark. Jumbo loans are still more difficult to come by, although a couple of lenders have re-entered the market. The issue with jumbos is that in most cases you need a minimum of 25% down and 700 plus FICO score. The positive news is that we are beginning to see a few 20% down loans. However, lenders are concerned that values in this price range are still declining.

Whether jumbo or conforming, appraisals have become more difficult, as the new Fannie and Freddie appraisal requirements have now been instated. Appraisers coming to markets that are unfamiliar to them have had a negative impact on transactions. More and more appraisals are coming in lower than purchase prices, which lead to additional negotiations or transactions falling out of escrow.

Overall the market appears to be marching in place, not rising nor falling. As long as consumer confidence holds relatively steady, we will see the same pattern in the housing market as we have witnessed in the stock market—a little up and little down. On the bright side, sellers continue to become more realistic and buyers are willing to make offers if they perceive value. I see more of the same through the end of the year.

The question mark for the second half of the year is how the next round of REOs and short sales will impact the market. I think in the lower end there is enough demand and enough money to lend that those inventories will be absorbed fairly quickly which should increase the number of units sold over last year. In the upper price ranges I think buyers will have some great opportunities and it will help establish the bottom of values in the upper end priced homes. All this is necessary to get back to a healthy, balanced market. I am looking at the end of next year or the beginning of 2011. In the meantime it will continue to be a buyer’s market. Those that take the leap now will be rewarded in the future. Only a Monday morning quarterback would understand that.

Tracie Southerland Opes Advisors Update 07/03/09

Fri, 03 Jul 2009 00:00:00 -0700

Here's a look at the rates we've been seeing:

· 30 year conforming 4.875% 1 pt

· 30 year high balance 5.125% 1 pt.

· 30 year FHA 5.00% 1 pt.

· 5 year jumbo 4.875% 1 pt.

· 7 year jumbo 5.250% 1 pt.

· 10 year jumbo 5.50% 1 pt.

· 30 year jumbo 5.875% 1 pt.

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603

This Weeks Rates from Tracie Southerland Opes Advisors

Fri, 26 Jun 2009 04:13:00 -0700

· 30 year conforming 5.125% 1 pt

· 30 year high balance 5.375% 1 pt.

· 30 year FHA 5.125% 1 pt.

· 5 year jumbo 5.125% 1 pt.

· 7 year jumbo 5.50% 1 pt.

· 10 year jumbo 5.875% 1 pt.

· 30 year jumbo 6.00% 1 pt.

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603

Exclusively for

Current Indices*
Dow Jones: 8,472.40
Nasdaq: 1,829.54
10 Yr. Bond: 3.54%
1 Yr. T-Bill: .50%
6 mo. LIBOR: 1.24%
MTA Index: 1.210%
Prime Rate 3.25%

*Indices as of close of business Thursday.

· 30 year high balance 5.375% 1 pt.

· 30 year FHA 5.125% 1 pt.

· 5 year jumbo 5.125% 1 pt.

· 7 year jumbo 5.50% 1 pt.

· 10 year jumbo 5.875% 1 pt.

· 30 year jumbo 6.00% 1 pt.

Tracie

Tracie Southerland

Financial Advisor & Mortgage Advisor
Email · Biography
650.319.1603

The Goldman Report 6/16/09

Tue, 16 Jun 2009 08:56:00 -0700

The Godman Report by Avram Goldman

The Market Has Found Its Groove

The year is flying by or a least it seems that way. We are close to the mid-year point. The trends are clear and the market has found its groove. The good news is that months supply of inventory (MSI) has dropped dramatically from last May. This May, six out of nine counties are under 5 months MSI with 5 months being average for a normal real estate market. Last May, only one county was under 5 months (SF at 3.3 months). In fact, five of the nine are currently under 4 months MSI.

The change has come from banks unloading the bulk of their REOs and short sale properties. The under $500K properties have flown off the shelf. Inventories are now anemic with few exceptions. Seven out of nine Bay Area counties have less than a 3 months supply of inventory (MSI) in the $500K and under price segment. Only Napa at 3.3 MSI, Marin 5.6 MSI and SF 5.7 MSI are above the 3 month mark. We have begun to see improvement in the $500K to $1 mil. price range. Five counties are under 5 months, only Marin 5.4, Sonoma 7.2, Solano 9.0, and Napa 12.6 are over. However, eight of the nine counties have fallen month over month for the last 3 months. Some of the reduction is due to seasonality, however as prices have dropped, buyers have taken advantage of the values and interest rates. The most challenged price segment has been the million dollar plus. The MSI has been most impacted in this sector. It varies from a low of 7.3 months in SF (last May it was at 2.4 months) to a high of 50 months in Napa (Napa varies significantly from month to month depending on the no. of closes in this price segment–last month was 35 months). There is a bit of a silver lining in that six of the nine counties months supply of inventory has dropped month over month for the last three months. Only Solano, Napa and Alameda have varied up and down in the million dollar plus price range.

Median and average sales price continues to fall in all counties, but at a slower pace than over last year. In fact, 6 out of the 9 counties (Alameda, Contra Costa, Napa, San Francisco, San Mateo and Santa Clara counties) have actually had median price increases month over month for the last three months. Eight out of nine counties increased median price over April. Only time will tell if this can be sustained, but it is a positive sign.

Those counties with the highest declines in median sales price have had the greatest increase in sales over last May and conversely, those with the smallest declines in median sales price have had either the lowest increase or actually declined in units sold over last May. The three counties that had the largest declines in median price had some of the highest increases in sold units—Contra Costa (-41% MP/+21% Solds), Solano (-36%MP/+56% Solds) and Santa Clara (-33%MP/+14% Solds). The counties with the lowest median price declines had decreases in solds—San Francisco (-14%MP/-35% Solds) and San Mateo (-17%MP/-7% Solds). Only Marin county did not follow this pattern. Marin median price declined -33% and also solds declined -10%. A bit of the double whammy.

New pending sales this May compared to last May have shown marked improvement. Every county except for San Francisco is up over last year. Anywhere from a high of 130% in Solano County to 21% in San Mateo. San Francisco, the only county not up over last year, was off a mere 4%.

These trends seem to be continuing in the month of June, in spite of interest rates rising nearly a percent over the last three weeks. Although interest rates have increased, they still are at historic lows. Multiple offers are still occurring primarily in the under $900K range. A Berkeley 3 bedr. 2 bath home listed at $895K received 7 offers selling above list price. We did have a $1.5 mil. Piedmont 3 bedr. 3.5 bath home that garnered 4 offers and also sold over list price.

Open house activity appears to be strongest in San Francisco and the East Bay. Most open houses are attracting double digit activity. The North Bay is mixed depending on location. Wine country open home activity lags in comparison to other Bay Area locations.

Have we hit bottom? I think in the lower third of the market we have. REOs and short sales have set the bar. We are beginning to see the upper two-thirds readjusting as prices drop. All buyers are looking for value-pricing, location and exceptional condition when deciding to make an offer. There is no shortage of demand or ability. Jim Cramer, the outspoken CNBC host thinks we are there. He is buying. Listen to the interview by the Huffington Post.

If you really want to know when the economy has turned around, just track men’s underwear sales. Michael Brush in his column on CNN Money writes that when men start buying underwear again, we know there is a turnaround. Read more on what other indicators can track the bottom of the current recession.

I think we can look for brighter days ahead in 2010 and a more balanced market in 2011, as the fear that griped consumers in the last quarter of 2008 and the first quarter of this year has turned into a cautious, deliberate, reasoned pragmatism that is allowing the real estate market to heal itself. It will take time and it could still have some falls along the way, but when all is said and done, owning a piece of the rock is still one of America’s most cherished values.

E Recycle Day June 6th

Fri, 29 May 2009 00:00:00 -0700