Greetings!
On October 1, 2010, the Congress voted to extend the heretofore temporary Fannie Mae and Freddie Mac conforming loan limits. The bill has been passed on to President Obama and he is expected to sign it extending the expiration date until October 1, 2011.
In the U.S. a conforming mortgage loan is one that conforms to Fannie Mae/Freddie Mac guidelines. Conforming loans offer the best possible interest rates and qualification requirements are not as strict as Jumbo loans. Conforming loans are favorable both in terms of available rates & qualification, because Fannie/Freddie guarantee they will buy all conforming loans from lending banks. This is paramount to all banks maintaining proper balance of liquidity vs. loans outstanding.
There used to be only 2 types of loans: conforming & jumbo. Now, since 2008, the mortgage market should be thought of as having 3 types of loans: conforming, high balance conforming (aka "confumbo"), and Jumbo. Most of the qualification criteria guidelines for the high balance conforming loans mirror those of true conforming, but carry a small rate premium of .25%, on most business days.
In order to help the housing market, the high balance, or "confumbo," loan amount limits were put in place in 2008 to bring more homes within loan limits that conform to Fannie/Freddie guidelines. "Confumbo" limits are geographically specific based on median price range within a county, and have a nationwide cap of $729,750. In 2009 these limits were temporarily reduced to reflect updated/lower median price ranges, but were quickly, and temporarily, amended back up to previous limits as part of the stimulus package. These limits were returned higher temporarily and are exactly what Congress voted to extend again on October 1st, 2010. This vote prevents the lowering of "confumbo" loan limits in each county, and rather than the nationwide cap dropping to $625,500, it will remain at $729,750. This will help the housing market.
Moreover, the true conforming loan limit is still set nationwide at $417,000. Loans above the "confumbo" limits are Jumbo.
How this might affect us as consumers can be illustrated here. Let's consider a property owner who currently holds a $700,000, 30 year fixed mortgage at a rate of 7% (payment Principle and Interest = $4657 per month). It is now possible that he would be able to refinance his loan into a $700,000, 30 year fixed mortgage at a rate of 4.5% (payment $3547 per month), thus saving himself $1,110 per month. If these limits had not been extended, this homeowner would be subjected to higher interest rates & stricter qualification guidelines of the Jumbo loan market.
Article was written in part by Ephraim Swartz at O'Dette Mortgage. Please visit his website and contact him for more information. Thanks Ephraim!!
|
| Market Update - September 2010 |
September was a big month for The North Lake
Tahoe-Truckee market with 92 sales of condos or single family residences, up
from 87 last month. Of those 92 sales, 23 were distressed properties or 25% of sales. Again,
the number is considerably lower than it was at the beginning of the year when
the stats showed 45% of home sales were distressed. The interesting thing to
note is the increase in million dollar properties that have sold. Back in January, we showed a total of 8
properties over a million - this month, we have sold 18.
From the Tahoe MLS: the solds from September
1 - 30, 2010:
Tahoe Donner: 26
homes, (1 SS), 2 condos, (1 REO)
Northstar: 1 home, 1 condo
Gray's Crossing: 0 residences
Glenshire, Cambridge, Juniper
Hill, Juniper Creek, The Meadows: 4 homes (2 SS)
Prosser Lake Area: 3 homes (1 SS)
Sierra Meadows, Ponderosa
Palisades, Winter Creek: 4 homes, 1
condos (1 REO)
Lahontan: 0
residences
Timlick: 0 residential properties
Old Greenwood: 3 homes (2 SS, 1 REO)
Martis Camp: 1 home
Truckee Proper: 1 home
Donner Crest: 0 residential properties
Donner Lake: 0
homes, 1 condo (REO)
Donner Summit: 2 homes (1 REO)
West shore Lake
Tahoe: 14 homes (1 REO,
1 SS)
Tahoe City: 4 homes (1 REO), 1 condo
North shore Lake
Tahoe: 2 homes, 2
condos
Kings Beach & Tahoe Vista: 6 homes (2
SS), 2 condos (1 REO)
Alpine & Squaw Valley: 4
homes (1 REO, 1SS), 3 condos (1REO, 1
SS)
Shared Ownerships - entire
region: 8 (1 SS)
Mobile Homes - entire
region: 1
Condos and Homes sold over
$1M in Truckee & North
Lake Tahoe: 18 (2 REO, 1 SS)
Highest priced home or condo
sold: Because this home never got to
the MLS before it was in escrow, we have little information about this Lake
Tahoe Westshore home located at 5500 West Lake Blvd. What we do know, however, is that the home
sold for $6,000,000 cash.
Lowest priced home or condo
sold: Tiny little studio up at the
Tahoe Donner lodge sold by the bank after 100 days on the market. It looks like the bank got real serious,
coming off their asking price of $94,500, the buyer got a deal at $52,000.
The list to sell ratio on the
median this month 95%. In other words, the homes sold within 95% of
the list price. The median list price
for this period was $485,000 median sale price was $461,000. Using the median price tends to take the extreme highs and lows out of the
picture as it is based on the sale of the house in the middle of the pack.
|
| Screaming Hot Deals |
In this particular spot, we feature the 3 properties in the multiple listing service that we feel are well priced. These are the properties that we wish we had buyers for because we know they are of such value that they will not last long, even in this market. So, for this month, come and get 'em before they are gone. . . .( by the way if when you click on the link you get nothing -- they have already gone under contract) 1) On tour this past week we viewed this Bank Owned property located in the Armstrong Tract in Truckee. about 1614 square feet with 4 bedrooms 2 baths, a 2 car garage and a fenced in yard 12701 Palisade Street seems like a deal waiting for a smart investor. We figured that with a little negotiating a buyer could get it for $250,000 and if they had $50K to put down, the payments could be in the under $1000 per month range. This house should be able to get $1400 a month in Rent. What are you waiting for? 2) 10159 Riverside Drive qualifies as a "best buy" eventhough we think it is priced too high (or it would have been gone by now). It just hasn't had enough exposure and its price per square foot seems high. The location here is the name of the game. Home is older but very tastefully and competently renovated. 4 small bedrooms, 2 baths and a spectacular Truckee riverfront location. You can step out your door and go fishing or swimming. Or if you just want to sit on the expansive deck and enjoy peacefulness of the sound of passing water. There are 2 negatives here -- no garage and really only one parking spot off the road and there are some of Truckee's most delapidated buildings nearby. But all in all, this is one little house I would love to reside in. 3) We sometimes get the inside scoop on a property before it hits the market which is the case here. We know of a very cute bank owned cabin that will be listed on the MLS in another week or two in the low 300,000's we are told. We have seen this cute Old Tahoe Charmer before when it was still occupied. This 2 bedroom, 1 bath with loft is located on Lake Tahoe's West Shore in the Tahoe Pines neighborhood of Homewood only a few blocks from the beach. If you are looking for a sweet cabin getaway, this could be it! Sorry no pictures yet.
Be sure to contact us if you would like to take a look at any of these properties!
|
| Worst Deals on the Market | |
These are the properties for sale that we feel are the worst priced homes on the market in our multiple listing service. Every month we will choose 2 or 3 properties which, for one reason or another (usually price) are something we would not be inclined to show our buyer clients. So for this month, here they are:
1) Well, after 886 days on the market, 6548 North Lake Blvd. whose current asking price of $2,800,000 is apparently still too dear. It has all the pre-requisites of a fabulous house. 5 bedrooms, 5.5 baths lakefront location, prestigous property owners association. Perhaps it is because it is difficult to get into see because it is on a rental market and disturbing tenants is a no no. 2) Oh, someone, please take this listing off the market!! 12022 St. Bernard Drive, a Bank Owned property, has been on the market only 179 days but it seems like forever. The phone calls we get from bargain seekers when during their internet search they find this home in Tahoe Donner at $142 per square foot. You can imagine their surprise when they arrive at the home to see how precarious the driveway is, witness the functionally obsolete floor plan and generally poor construction. I have seen more than one leave the house, scratching their heads to the thought "what were they thinking?" Isn't there someone out there who really wants a project? Please!!! 3) It seems the only way the seller will be able to unload this one will be to pay someone to take it off of their hands. The driveway at 16146 Northwoods Blvd. would make a great sled hill (or roller coaster ride) if it didn't spill out onto Northwoods Blvd. That is the killer here; there is just no getting around the long and VERY steep driveway - it is just plain scary! 3 bedrooms, 2 baths, no garage. It is clean and in pretty decent shape, but nothing special to lure you up that driveway! Be sure to let us know what you think that any of these properties will sell for by contacting us here and when it does, the entry closest to the actual sale price will win a gift certificate.
|
Mike and Jill Jacob & Family
| |
 Sierra Meadows just gained a nice new family. The Jacob Family -- Mike, Jill, Jonas and Sophia took up residence this month in their new home on Indian Pine. Mike and Jill are both Registered Nurses. Jill now works at both Tahoe Forest Hospital and St. Mary's in Reno. Mike is currently multi-tasking as Nurse, Firefighter and Paramedic with North Tahoe Fire. This is the safest and healthiest family around!! Mike has been a longtime client of ours. I think at last count he had been shopping for 5 years for a home -- long before he actually met Jill. We finally found him the perfect ranch with a huge fenced backyard. I am sure he is glad he waited so long as he was able to take advantage of the convergence of the most spectacular mortgage rates and the best home prices in recent history. They are currently in the process of making this house their very own!! Best of everything to you Jacob Family.
|
|
Kappy and Jennifer have a combined 40 years in the Real Estate Profession. We are committed to giving our clients the most up to date Real Estate information and Stellar Service because, We Love Our Work and So Will You! Call us or e-mail us for information about the Tahoe Truckee Real Estate Market. By the way, if you think any of this information might be of interest to anyone you know, feel free to forward this newsletter. We would really appreciate it!
Sincerely,
Kappy Mann & Jennifer Boehm
Keller Williams Real Estate |
|
|
 |
|
Flawed Foreclosure Documents may Stall Sales |  | |
As news about sloppy paperwork within many of the bank foreclosure departments spreads, Fannie Mae, the giant mortgage holding company that buys loans from commercial lenders, is pulling back sales of homes that might have been foreclosed in bad faith. Oops, it seems that perhaps some of the processors may have submitted the foreclosure proceedings without reviewing the paperwork before hand in a term referred to as "Robo Signing". Three major lenders; Bank of America, GMAC Mortgage & JP Morgan Chase have suspended foreclosures in the 23 judicial states where a judge approval is required. But this, it seems is just the beginning as California Attorney General has ordered all California banks to suspend their foreclosure proceedings/sales as well.
Distressed properties, of which many are in foreclosure, make up about a third of all home sales in the Country, potentially crippling foreclosure sales. Some homebuyers are finding themselves in a precarious position as their foreclosure purchases have been halted just as they have vacated their homes and now have no home to move into. Many agents specializing in foreclosure sales are wondering where this will leave their business. Title companies also are concerned as they provide insurance of ownership, lenders require title insurance before approving a mortgage. Can you see where this is going?
|
 |
| Airport Shuttle Service |  | |
Airport Shuttle Service is a blessing whether you live here or are just visiting. North Lake Tahoe Express has been providing transportation to the Reno airport since 2006 and offers daily, year round scheduled service at a very reasonable rate. Visit the NLTE website where you will find route maps, rates & schedules along with other helpful information. Their funding partners help to keep it affordable and easy, so why pay for airport parking? Frequent user passes and group rates are available. Please call 1-866-216-5222 to make a reservation.
Other local transportation worth mentioning is. TART (Tahoe Area Regional Transit) which runs from Lake Tahoe's North to West Shore communities and Truckee providing both year round and seasonal routes. Call (800) 736-6365 for more information. The Night Rider is FREE night service available through the ski season. This serves area ski resorts around Lake Tahoe. It does not come to Truckee or up to Donner Summit - call (866) 216-5222 |
Truckee's Wine Walk and Shop
|  | JK Real Estate and Keller Williams participated October 2, 2010 in Truckee's 7th annual Wine Walk and Shop. Holly's Hill winery out of Placerville, CA was featured at our office in Downtown Truckee. Besides this winery, there were approximately 36 others represented at various locations in the downtown area. Wine aficionados were abundant and could be seen strolling the streets of Truckee, their blue armbands and commemorative wine glasses in hand. In addition to the wineries, there were 13 local eateries that provided tastings of their wares. According the Switchback Marketing, the weather cooperated and helped the event raise lots of money for their beneficiary this year "Sierra Seniors."
|
Dia De Los Muertos,
November 2, 2010
|  | I'll bet you expected to see a little column on Halloween this month, Huh? Well, surprise -- something different here. I take this one personally because not only does this special celebration culminate on the 2nd of November, it is the same day as my birthday!!
Dia De Los Muertos or the "day of the dead" is actually a series of 3 days beginning on October 31 and ending on November 2nd. This holiday which is celebrated hugely in Mexico involves honoring a family's dead. I was actually able to participate in the celebration first hand 3 years ago when I flew with the Adventure Travel Institute to Patzcuaro, MI, MX. On the evening of November 1st, we visited several cemeteries and we witnessed a party-like atmosphere amongst the headstones decorated with orange marigolds -- the official flower of the Day of the Dead Celebration. Families shared food and drink and decorated the graves of their loved ones. The origins of the festival are sketchy but according to some, it stems from the Aztec celebration of one of their goddesses named Mictecacihuatl who is the queen of the underworld. Her responsibility is to watch over the dead. Hence her name Lady of the Dead!!
|
|
|
