Dawn Rivera’s Fremont & East Bay Real Estate Blog

RealtyTrac®, a leading online marketplace for foreclosure properties, has released its Midyear 2009 U.S. Foreclosure Market Report, which shows a total of 1,905,723 foreclosure filings – default notices, auction sale notices and bank repossessions – were reported on 1,528,364 U.S. properties in the first six months of 2009, a 9 percent increase in total properties from the previous six months and a nearly 15 percent increase in total properties from the first six months of 2008. The report also shows that 1.19 percent of all U.S. housing units (one in 84) received at least one foreclosure filing in the first half of the year.

Foreclosure filings were reported on 336,173 U.S. properties in June, the fourth straight monthly total exceeding 300,000 and helping to boost the second quarter total to the highest quarterly total since RealtyTrac began issuing its report in the first quarter of 2005. Foreclosure filings were reported on 889,829 U.S. properties in the second quarter, an increase of nearly 11 percent from the previous quarter and a 20 percent increase from the second quarter of 2008.

“In spite of the industry-wide moratorium earlier this year, along with local, state and national legislative action and increased levels of loan modification activity, foreclosure activity continues to increase to record levels,” noted James J. Saccacio, chief executive officer of RealtyTrac.

“Unemployment-related foreclosures account for much of this increased activity, and the high number of
borrowers who find themselves owing more on their mortgages than their homes’ are now worth represent
a potentially significant future risk. Stemming the tide of foreclosures is a critical component to stabilizing the housing market, so it is imperative that the lending industry and the government work in tandem to find new approaches to address this issue.”

Nevada, Arizona, Florida post top state foreclosure rates
More than 6 percent of Nevada housing units (one in 16) received at least one foreclosure filing in the first half of 2009, giving it the nation’s highest foreclosure rate during the six-month period. A total of 68,708 Nevada properties received a foreclosure filing from January to June, an increase of 23 percent from the previous six months and an increase of 61 percent from the first half of 2008.

Arizona registered the nation’s second highest state foreclosure rate in the first half of 2009, with 3.37 percent of its housing units (one in 30) receiving at least one foreclosure filing, and Florida registered the nation’s third highest state foreclosure rate, with 3.08 percent of its housing units (one in 33) receiving at least one foreclosure filing. Other states with foreclosure rates ranking among the nation’s 10 highest were California (2.94 percent), Utah (1.46 percent), Georgia (1.42 percent), Michigan (1.34 percent), Illinois (1.31 percent), Idaho (1.26 percent) and Colorado (1.25 percent).

California, Florida, Arizona post highest foreclosure totals
A total of 391,611 California properties received a foreclosure filing in the first half of 2009, the nation’s highest total and 2.94 percent of the state’s housing units (one in 34) – the nation’s fourth highest state foreclosure rate. California foreclosure activity in the first half of 2009 increased nearly 14 percent from the previous six months and increased nearly 15 percent from the first half of 2008.

With 268,064 properties receiving a foreclosure filing in the first six months of 2009, Florida documented the second highest state total. Florida foreclosure activity in the first half of 2009 increased 7 percent from the previous six months and was up nearly 42 percent from the first half of 2008.

Arizona’s 89,799 properties receiving a foreclosure filing in the first six months of 2009 was the third highest state total. Arizona foreclosure activity in the first half of 2009 increased 13 percent from the previous six months and was up nearly 55 percent from the first half of 2008.Other states with totals among the 10 highest in the country were Illinois (68,932), Nevada (68,708), Michigan (60,786), Ohio (58,937), Georgia (56,391), Texas (49,144) and Virginia (28,368).

Report methodology
The RealtyTrac U.S. Foreclosure Market Report provides a count of the total number of properties with at least one foreclosure filing reported during the first half of the year at the state and national level. Data is also available at the individual county level. Data is collected from more than 2,200 counties nationwide, and those counties account for more than 90 percent of the U.S. population.

RealtyTrac’s report incorporates documents filed in all three phases of foreclosure: Default – Notice of Default (NOD) and Lis Pendens (LIS); Auction – Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS) and Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank). If more than one foreclosure document is filed against a property during six-month period, only the most recent filing is counted in the report.

The current economic crisis is having a lasting impact on many older Americans, forcing them to make difficult financial decision because they have so little time and resources available to them to recover from losses in the housing and financial markets.

A new survey from Golden Gateway Financial shows that these losses are causing many seniors to consider retiring at a later age than originally planned. The survey asked Americans aged 62-and-older how the economic crisis was affecting their retirement plans. Not surprisingly, the number of respondents planning to retire after age 70 because of the economic crisis increased substantially from those planning to retire at that age before the crisis.

“Even though some economists are beginning to grow optimistic, older Americans continue to feel real pain and must make hard trade offs and decisions,” said Eric Bachman, founder and CEO of Golden Gateway Financial. “This is the worst possible time for the 40 percent of seniors now considering delaying retirement to be searching for jobs. It’s unfortunate that the hopes and dreams of these retirees are being put on hold.”

Overall, the survey found that many seniors understand exactly how the economy is affecting their retirement finances and plans. It also illustrates the concern that many seniors have about the prospects for their continued ability to sustain retirement. Additional observations include:

- Before the economic crisis, 67 percent of respondents planned to retire before age 70
- Now, the number of seniors planning to retire by age 70 dropped to 40 percent
- Before the economic crisis, 30 percent of those surveyed planned to retire after age 70
- Now, almost 50 percent of seniors plan to retire after age 70
- More than 40 percent of seniors polled said the current economy has had some kind of negative affect on their ability to retire
- More than 50 percent of respondents said they are concerned that their overall net worth may no longer be enough to sustain their retirement
- 86 percent of seniors said they had a reasonable understanding of their net worth, and 50 percent said that net worth had declined by between 10 and 30 percent

The independent online survey, conducted with United Sample, Inc.  www.unitedsample.com) in partnership with Golden Gateway Financial, polled a nationwide representative sample of more than 500 senior citizens aged 62 or older. A complete list of questions and percentage answers are available at the Golden Gateway Financial website or by contacting the company.

Positive News: U.S. Housing Starts up Second Straight Month in June

(Market Watch)-New construction of U.S. houses expanded for the second straight month in June after hitting a record low in April, the Commerce Department estimated Friday.

Starts rose 3.6% in June to a seasonally adjusted 582,000 annualized units stronger than the 531,000 pace expected by economists surveyed by Market Watch. This is the highest level of starts since last November.

Starts of new single-family homes rose by 14.4% to 470,000 in June, while starts of large apartment units fell 29.4% to 101,000. Building permits, a leading indicator of housing construction, rose 8.7% to a seasonally adjusted annual rate of 563,000. This is the highest level of permits since December.

Home prices have moderated, interest rates are reasonable, supply is abundant-and then there’s that $8,000 tax credit. Yes, it’s a great time to buy your first house.

If you do, you’ll have to furnish it, and that can be a challenge, especially if you have put much of your disposable income into a down payment. But you’re a grown-up now, and your first real home is no place for that grungy old futon or bookcases constructed with bricks and boards. It deserves better.

So what’s the best way to go about furnishing your new home? We’ve asked a variety of experts for their ideas on what to do after your offer has been accepted. Here are their ideas:

“Before you get carried away, take some time to determine what you have, what you need and what you want,” says Milwaukee-area interior designer Susan Michalek of Desumi Design Inc. “Deal with what you need first. That should be your highest priority.”

Wanda M. Colon, a designer who can be seen as host of TLC’s “Home Made Simple” and HGTV’s “24-Hour Design,” suggests that any assessment should include the amount of money you have to spend.

“It’s easy to overspend or make impulse purchases if you don’t have a budget,” she says. If you watch what you spend and stay within your limits, “as a bonus you might have money left over to purchase some extra goodies.”

Evaluate each room, says interior designer Jane Klein, and figure out how you plan to live in the house, considering: “Where you will spend most of your time, what you will do in each room? Will you want a table in the family room for work space, for example, or a comfortable chair and good lighting in the bedroom for relaxing and reading?

“Also think about the size of each room and the appropriate scale for the furniture,” Klein says. “You might fall in love with a sectional, but the reality is that it might not fit in a small room.”

Go Shopping.

If you’re shopping with your significant other, have some discussions about what you like and don’t like, and what you think works well together and with the style of your home.

“You don’t have to choose strictly contemporary or strictly traditional,” Steinhafel says. “More likely the choice will be made based on whether you are going for a casual or more formal look.”

But remember that while an “eclectic” look works, that doesn’t mean anything goes. There should be some continuity or unifying elements so that the result isn’t a hodgepodge.

“Don’t buy everything in one place,” she says. “This allows you to compare styles and prices.”

As you peruse what’s available, take pictures of what you like, Klein says. “If you think it might work, take a picture, at stores, consignment shops, wherever you go. Then look at the pictures when you get home to remind you of the choices and to see which pieces work together.”

Get to Work

It’s easier to paint a house when it’s empty and to refinish or replace flooring or knock down walls when you’re not living there. So if there’s work to be done, allow time for that after closing but before you move in.

Make Major Purchases

At minimum you will need: a good mattress and box spring and a bed or headboard to give the room a polished look; a quality sofa and chairs; a console unit for the television; and a table and chairs for dining (either for the kitchen or dining room).

Bette Kahn, spokeswoman for Crate & Barrel and CB2 stores, says microfibers are a good fabric choice for sofas because they’re so durable.

She suggests going with neutrals for big pieces, “but if that’s too basic, they can always be made more interesting with pops of color through pillows, which can be changed.”

“Make sure the frame of your sofa or chairs is high quality,” says Kahn, adding that if the piece wears out or looks outdated, it can be slip-covered or reupholstered if necessary.

If you buy high-quality pieces, you can build a room around them for years to come.

Fill in Creatively

After you’ve found the big pieces that serve as the foundation for a room, it’s time to fill in with smaller pieces. This is where you can have some fun, save money and add a touch of personal style.

Consignment stores, estate sales, resale shops and even Grandma’s attic are great places to find furniture, especially if you’re willing to fix it up.

For example, if you’ve purchased a bed but need a dresser or two, you might be able to find used pieces with similar lines. You can refinish or paint the dressers to match (assuming they aren’t valuable antiques, in which case the original finish should be preserved) and change the hardware for a coordinated look.

Area rugs, artwork and accent pieces are fun to shop for and also add personality to a room.

It probably took awhile to find the right house. It stands to reason it won’t be furnished in a week, a month or perhaps even a year.

“Many purchases can be put off, especially the decorative pieces,” Kahn says. “Besides, you’ll have more fun collecting those as you go through life.”

Colon warns first-time homeowners to take their time. “Don’t impulse-buy and end up feeling stuck because you acted too hastily,” she says.

Klein says: “Give yourself a little time. When you make a decision, use your head and your heart. Look at different options, ask lots of questions.

“When you see it, you’ll know if it’s right.”

SACRAMENTO – The pace of home sales at California new-home communities in May was still below year-ago levels but continued to improve from preceding months, the California Building Industry Association reported today.

The monthly CBIA/Hanley Wood Market Intelligence (HWMI) New Home Sales and Pricing Report showed that sales in new-home communities of 10 units or more were 26 percent below May 2008, but is improved from the 31 percent decline in the prior month and is the fourth consecutive month of that improvement trend.

During May, 3,019 new homes and condominiums were sold in the subdivisions tracked by Costa Mesa-based HWMI, compared to 4,094 in May 2008. Sales of single family homes were down by 30 percent, while sales of townhomes and “plexes” – duplexes, triplexes, etc. – were down 24 percent and sales of condominiums were off by 16 percent.

Compared with the same period last year, the median base price of homes sold dropped by 5 percent.

Non-seasonally adjusted total new-home sales were 9 percent higher than levels seen last month. This is an improvement from a year ago when the April-May interval was a decline of 6 percent. While sales volume is still approximately one quarter off year-ago levels, the steadily shrinking year-over-year sales declines suggest the market is stabilizing.

Jonathan Dienhart, Director of Published Research for HWMI, notes the recent month-to-month increases are a positive sign.

“Typically March is the strongest selling month of the year, not May,” said Dienhart. “The incremental gains since March are counter to this typical seasonal trend, which suggests the market has found the bottom and is truly stabilizing, albeit slowly. But with the state tax credits for home purchases running out and continued troubles in the broader economy, it is not yet clear that an actual recovery is at hand.”

Robert Rivinius, CBIA’s President and CEO, agreed, and added that the continued weakness in the new-home market means that policy-makers need to reduce government fees and restrictions – and to stop trying to impose additional barriers.

“State and local governments must remember that we need to be building more new homes and apartments – not less – to meet the demand caused by our steadily growing population. Many communities have actually reduced impact fees in order to accommodate new housing, we must see more of that, and the continuation of the state tax credit will be critical to sustaining the improvements in the marketplace,” said Rivinius.

Been out looking for an entry-level single family home in Hayward, CA? If your answer is yes, then you’ll have experienced first hand the craziness that’s become reality in the current Hayward, CA market. No matter which property you choose to visit, chances are there are folks there already, and, as you leave, odds are very good that others are pulling up behind you.

The entry-level market for detached single family homes in Hayward, CA has gone plain nuts.

Nuts might be good for squirrels but last time I checked, those cute, furry-tailed rodents don’t qualify as first-time home buyers. What’s all the fuss? I’ll explain the issues and implications at the end of this post, however, let me first set the stage.

Single family homes 1,200 square feet and smaller are flying off the market like pancakes off the grill during a lumberjack festival. Inventory is WAY down and sales are WAY up. In fact, in an unprecedented market maneuver, pending sales numbers are actually out pacing the supply of existing homes for sale. It doesn’t take a rocket scientist to realize that something is up and to agree that things can’t continue this way for long.

So where are we headed? Does this mean we’re at the bottom of this particular market? You tell me. It would appear that prices have stabilized and have been on a plateau for quite a while. There is a mere difference of $4,000.00 between the average sold price from November, 2008 until April, 2009. However, list prices are headed back up – a sure indicator that at least one group believes the market has turned – sellers.

As I’ve stated in other posts, the bottom of the market cannot be officially called until both Average Sales Prices AND Average Square Foot Prices are either flat or climbing.

While not yet perfectly level, the numbers are looking very, very good. We may not be at the absolute bottom, but we’re so close that if I was in a submarine, I’d be sounding the collision alarm and looking for something secure to hang on to.

Lastly we have Months of Inventory. A quick search on Google reveals many pundits stating that approximately 6 months of inventory indicates a level market. More inventory reveals a Buyer’s Market, less precludes a Seller’s Market. Anyone thinking we are still in Buyer’s Market in this category is simply in denial. True, we’ve not seen prices pounding back upward, but, from personal experience, I can tell you that almost every home in this group is ending up with multiple offers and is selling for over asking price. And here is a part of the rub – most of these homes go on the market with artificially low prices for the specific purpose of securing multiple offers and driving the prices back up again.

Here are 3 Critical Facts you need to know about this market:

1. We are running out of inventory at the bottom of the market.

There are a few reasons for this:

There was a hold on foreclosures from late 2008 until April 01, 2009. Although foreclosures are back on track, new properties have not yet hit the market in any kind of significant volume. That may change any moment.
Unprecedented numbers of buyers are hitting the market because of record low mortgage rates, rock bottom prices and good, old fashioned “spring fever.”
The $8,000.00 tax credit and its impending deadline are pushing buyers to cash in before it is too late. Even the confusion about whether or not the credit can be used for the down payment is fueling frenzies in some quarters.

2. Many homes are going pending that ARE NOT actually closing.

Because of the shrinking inventory, many buyers are starting to write on short sales – buyers that would’ve historically avoided them a brief 3-4 months ago. Once in contract, short sales show up as pendings, but take so long to close they actually mess up the pending numbers (that is the only way more homes can go pending than are actually on the market!). The success rate of short sales is somewhere between 10-20%, and they can take up to 9 months to close. To add to the confusion, many buyers submit an offer on a short sale, it gets marked pending, then those very same buyers go get offers accepted on OTHER short sales as well. While those escrows are slowly stewing in their short-sale crock pots, those same buyers actually go out and manage to get an REO into escrow! One buyer – three escrows? You betcha! You gotta know two of those escrows are NOT going to close, thus adding to the overall confusion in the current market.

3. Current list prices are artificially low.

Banks and their listing agents have figured out the “list low – sell high” strategy and are whipping it into an art form. Low ball offers on REOs are WAY gone unless it’s a dog of a property and has been sitting on the market an awfully long time. If you see something out there priced way too low to be real, guess what …

Lastly, remember that short sale listing agents are also pricing way below market value just to get you through the front door. Problem is, there is absolutely NO guarantee that the bank will actually sign off on the “list price” or your subsequent lower offer.

I believe this situation will be temporary.

We cannot continue to have more homes go pending than are actually coming on the market – this is supply and demand economics 101. Something has to give. I believe it will be supply: in my opinion, we are going to see a resurgence of foreclosed homes into the market in the near future that will level the playing field. Many of these will be existing short sales that have been sitting out there a long time. And in some cases, short sale homes, once foreclosed, will go back on the market at a higher price than their list prices as short sales. This is simply because they were priced far too low to begin so as to attract visitors and offers.

Bottom line: I personally do not believe homes at the bottom will go down much more in value, if at all. I believe homes in the upper end will be the ones taking the hit. And I also am going to predict that by mid-summer, we should be back to at least 3 months of inventory.

So how to respond to all of this?

Be a wise buyer. Cooler heads always prevail and make the money in markets like this while those who respond with panic end up losers every time. Set a limit and stick to it – it may be a while before you land a house, but with careful work and due diligence, you will find one that you can finally call “home.”

Hi all I hope you had a wonderful 4th of July. Here is something to help keep you and your family safe the rest of the summer.

Summer is a time for recreation, but it is also a time that brings new hazards. PECO encourages you to take your time to make sure children and family members stay safe and have fun at the same time during outdoor play, particularly around water or when summer storms occur.

Electricity is essential energy – it keeps us cool in the summer, lights our house, keeps the refrigerator cold, and runs the TV, stereo and computers. But you can create dangers with electricity. It doesn’t take much power for someone to hurt themselves – an adult can be killed with less than one-fifth of the electricity it takes to light a bulb.

Children often do not understand the dangerous situation that they can create with electricity. Take some time to get down and view the surroundings from a child’s vantage point to identify possible dangerous situations. For safety outdoors, PECO recommends children and adults follow these rules:

- Always assume that electrical equipment is energized. Stay away from electrical equipment on the ground and overhead. Never climb a utility pole or tower. Don’t play on or around pad-mounted electrical equipment. Electrical power poles and utility equipment should never be used as a playground.
Never climb trees near power lines. Even if the power lines aren’t touching the tree, they could touch when more weight is added to the branch.

- Fly kites and model airplanes safely away from trees and overhead power lines. If a kite gets tangled in a tree that’s near power lines, don’t climb up to get it.

- Never go into an electric substation. Electric substations contain highly dangerous high-voltage power equipment. Don’t retrieve a toy or rescue a pet that goes inside.

- Look up and around you. Always be aware of the location of power lines, particularly when using long metal tools like ladders and pool skimmers.

Doug Mokoid, PECO safety manager, suggests adults teach what they know about electrical safety. In most instances, Mokoid said, if potential safety concerns are taken into consideration and handled proactively, accidents could be avoided. “Electricity and water can be a dangerous combination for people,” he said. “Caution children and family members about the danger of using electrical appliances in wet areas – even wet grass can create a dangerous condition.”

- Supervise the use of extension cords outside, check them carefully for exposed wires, and make sure they are in good shape, and not frayed or cracked. Use only extension cords that are rated and marked for outdoor use, and are large enough to handle the current needed for the device you are using.

- Check that the prongs on the extension cord plugs are clean, not broken or bent. Make sure the ground prong is intact in a three-prong plug, and avoid use of adapters.

- Summertime is water recreation time for millions. While enjoying water activities, don’t create a dangerous situation that will dampen your summer fun. According to the federal Consumer Product Safety Commission (CPSC), deaths and serious shocks occur in and around swimming pools each year.

- Never touch an electrical appliance if you are wet; always dry off completely. And, never swim during a thunderstorm. If children wish to play with sprinklers or hoses, reinforce that they should be set up well away from any electrical outlets or appliances.

- Be careful using electrical appliances outdoors. Whether it is a bug zapper, an electric charcoal lighter, or a radio or CD player, caution must be exercised. Use battery operated, rather than electrical, appliances near swimming pools. Keep electronics and electrical appliances and tools at least 10 feet away from pools, ponds and wet surfaces.

- Be sure you use outlets that have weatherproof covers and ground fault circuit interrupters (GFCI) to prevent serious shock injuries. Any electrical outlets within 20 feet of a pool or spa should be equipped with a GCFI, or ground fault circuit interrupter. Use portable GFCIs for outdoor outlets that don’t have them.

- Never install pools underneath or near power lines. Watch for and stay away from overhead power lines when cleaning pools, sailing or fishing. Pools and decks should be built at least 5 feet away from all underground electrical lines, and at least 25 feet away from overhead electrical lines.

- Summer is often a peak season for one of the nation’s deadliest weather phenomena-lightning. That is why the National Weather Service has adopted the saying: When Thunder Roars, Go Indoors! Lightning can strike up to 10 miles from the area in which it is raining, even if you don’t see clouds. This means that if you can hear thunder, you’re within striking distance.

“If thunderstorms and lightning are approaching, the safest location is indoors away from doors and windows with the shades drawn. Stay away from water, electric appliances and other objects that could conduct electricity, and use only cordless or cell phones to make emergency calls,” said Mokoid. Phone use is the leading cause of indoor lightning injuries in the U.S.

A direct strike is not necessary for lightning voltage to enter your home through phone lines, electrical wires, cables and plumbing. Turn off and unplug appliances well before a storm nears – never during. Don’t expect a surge protector to save appliances from a lightning strike, unplug it as well. More information on lightning safety can be found at the National Oceanic and Atmospheric Administration website at www.lightningsafety.noaa.gov.

Due to the turmoil in the real estate market, a Florida couple is raffling off their luxury home in Fort Lauderdale for only $10 a ticket. After the drawing is held, the deed and title to the home will be transferred to the lucky winner (with no mortgage), and a portion of the proceeds raised will go to benefit a local charity.

Moving from their dream home is something the Brannans never thought would happen, but the economic crisis has caused them to make many tough decisions. They came to the conclusion that raffling off their 6,000 sq. ft.
home was the only reasonable solution.

In addition to offering people an opportunity to win this home for just $10, the couple states that a portion of the proceeds from the drawing will benefit The Mission of St. Francis, a charitable organization in Ft. Lauderdale. According to Miles Brannan, “The Mission of St. Francis is a wonderful organization that helps individuals suffering from addictions by providing them housing and helping them find jobs to get back on their feet.

We’ve all been hit hard by the poor economy lately, and I feel The Mission is really making a difference in people’s lives. So a portion of the proceeds will go to the Mission to aid in their efforts.”

The Florida home’s spacious open floor plan includes 6 bedrooms and 6.5 baths. The master suite is 1,000 square feet and has a second story balcony overlooking the waterway. The estate also has a theater room with a 120?
screen, 4 car garage, and beautiful winding staircase. I

Only 300,000 tickets will be sold for this raffle, and the drawing will take place once all tickets have been sold. Once the drawing has taken place the winner will be notified within 24 hours by phone, e-mail or certified mail.
Winners do not need to be present to win. All monies collected will be held by Chicago Title Insurance Agency, Inc.

For more information, visit www.floridaluxuryauctions.com.