Kia Kapci, Realtor
What's Going on in the Market?
Placer County
June 2007 - Vol 2, Issue 6
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Greetings!
Farmers Market

School is almost out, the lake is already packed on the weekends and summer is just around the corner.

A great way to stay healthy and refreshed this summer is to stock up at our local farmer's markets. What's better than a picnic with fresh fruit and crisp veggies!? Check out the following markets:
Sunday: Rocklin - Park & Stanford Ranch 8am-noon
Tuesday: Roseville - Harding & Douglas 8:30am-12:30
Tuesday: Roseville - Vernon & Lincoln 5pm-9pm
Thursday: Granite Bay - Auburn Folsom & Douglas 9-1
Thursday: Lincoln - F St & 5th 5pm-8pm
Friday: Roseville - Kaiser 1600 Eureka Rd 9:30-1:30
Saturday: Auburn - Lower Court House 8am-noon

To enjoy a completely refreshing summer call me to sell your home or look for a new home. I will make the process relaxing and enjoyable for you!

Thank you to Tim Onderko for his referral last month. My new clients are moving into their dream home in their ideal neighborhood in three weeks!

Don't forget Father's Day June 17!!!

Sincerely,
Kia Kapci, Realtor

A big drop in the price of the typical new home sold in April spurred much better-than-expected sales, according to the latest government reading on the battered real estate and home building market released Thursday.

New homes sold at an annual pace of 981,000 in April, up 16.2 percent from the revised 844,000 pace in March. Economists surveyed by Briefing.com had forecast an 860,000 rate in April.

The gain in sales compared to March is the biggest jump in 14 years. But even with the April spike factored in, April sales came in 10.6 percent below year-earlier levels.

The median price of a new home sold in April plunged 10.9 percent from a year earlier to $229,100. The new price reading was also down 11.1 percent from the March reading.

It was the sharpest year-over-year drop in median new home prices since December 1970 and the biggest month-to-month drop on record.

Paul Kasriel, chief economist with Northern Trust in Chicago, equated the strong sales to the strategy of the Detroit automakers, who cut prices and offer other sales incentives to counteract weak demand for their cars and trucks, sometimes taking a loss on the sales.

"The builders are clearing out the merchandise," he said. "They're doing a Detroit here. When you have excess supply, the quickest way to move supply back into balance with demand is to cut the price, and finally they're doing that. I would not say this is the bottom of the housing recession."
Info from CNN Money
I suggest you start shopping among at least a half- dozen mortgage lenders for a so-called "no cost, no fee" home loan. In today's mortgage market with rising interest rates, I recommend obtaining a fixed-rate mortgage.

However, if you are certain you won't keep your home more than five years, then an adjustable-rate mortgage (ARM) fixed for five years can save you a few interest dollars. But be certain it does not contain a prepayment penalty or negative amortization (where the interest rate adjusts monthly or semi-annually and unpaid interest is added to your loan balance).

If you are dealing with a direct lender, such as Wells Fargo, Bank of America or Countrywide, the lender's good faith estimate must reveal all loan charges. But you might be asked to pay legitimate fees to third parties, such as for the appraisal, credit report and lender's title insurance fee. That's fine. Those are not junk or garbage fees.

However, if you are dealing with a middleperson, such as a mortgage broker, his or her written good faith estimate might be less reliable. The reason is the broker often says, "I got you the best mortgage, but the lender imposed these unexpected junk fees at the last minute. Take it or leave it."

Watch out for unnecessary, 100 percent pure lender profit, previously undisclosed junk or garbage fees with creative names such as underwriting fee, document preparation fee, loan review fee, warehousing fee, and loan origination fee.

If the lender asks you to pay a loan fee of 1 percent or 2 percent of the amount borrowed, usually called points, ask how much reduction you will receive in the loan's interest rate. For each one point loan fee paid, you should receive at least a one-eighth-percent reduction in your loan's interest rate for the life of the mortgage. Pay a loan fee only if you expect to stay in the house at least 10 years. Otherwise, take the no- cost, no-fee mortgage with all lender charges included in the interest rate.
Info from Inman News
Mortgage rates increased this week due to strong consumer and business spending, according to Freddie Mac.

The Virginia mortgage giant said 30-year fixed-rate mortgages averaged 6.42 percent this week, up from 6.37 last week. This week in 2006, the average was 6.67 percent.

One-year adjustable-rate mortgages averaged 5.57 percent this week, down from last week's 5.64 percent.

"Interest rates on fixed-rate mortgages increased further this week following stronger growth in orders for durable goods," said Frank Nothaft, Freddie Mac vice president and chief economist. "Recent reports have indicated that economic growth outside of the housing market remains robust, with a healthy consumer sector and improving business spending."
Info from Sac Business Journal

FOR A FREE MARKET ANALYSIS OF YOUR HOME AND ESTIMATE OF VALUE CALL OR EMAIL ME! I WILL GET YOU THE INFO WITHIN 24 HOURS OF YOUR REQUEST. Please contact me with all of your real estate needs and questions. I am always available to you, your family and friends!

Happy Father's Day,
Kia Kapci
Lyon Real Estate

phone: 916-782-0558
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