16th Dec 2008

Federa Reserve Press Release 12/16/08

Release Date: December 16, 2008

For immediate release

The Federal Open Market Committee decided today to establish a target range for the federal funds rate of 0 to 1/4 percent.

Since the Committee’s last meeting, labor market conditions have deteriorated, and the available data indicate that consumer spending, business investment, and industrial production have declined. Financial markets remain quite strained and credit conditions tight. Overall, the outlook for economic activity has weakened further.

Meanwhile, inflationary pressures have diminished appreciably. In light of the declines in the prices of energy and other commodities and the weaker prospects for economic activity, the Committee expects inflation to moderate further in coming quarters.

The Federal Reserve will employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability. In particular, the Committee anticipates that weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time.

The focus of the Committee’s policy going forward will be to support the functioning of financial markets and stimulate the economy through open market operations and other measures that sustain the size of the Federal Reserve’s balance sheet at a high level. As previously announced, over the next few quarters the Federal Reserve will purchase large quantities of agency debt and mortgage-backed securities to provide support to the mortgage and housing markets, and it stands ready to expand its purchases of agency debt and mortgage-backed securities as conditions warrant. The Committee is also evaluating the potential benefits of purchasing longer-term Treasury securities. Early next year, the Federal Reserve will also implement the Term Asset-Backed Securities Loan Facility to facilitate the extension of credit to households and small businesses. The Federal Reserve will continue to consider ways of using its balance sheet to further support credit markets and economic activity.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Christine M. Cumming; Elizabeth A. Duke; Richard W. Fisher; Donald L. Kohn; Randall S. Kroszner; Sandra Pianalto; Charles I. Plosser; Gary H. Stern; and Kevin M. Warsh.

In a related action, the Board of Governors unanimously approved a 75-basis-point decrease in the discount rate to 1/2 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of New York, Cleveland, Richmond, Atlanta, Minneapolis, and San Francisco. The Board also established interest rates on required and excess reserve balances of 1/4 percent.

2008 Monetary Policy Releases

Posted by Thera under Federal Loan reform | 2 Comments »

12th Dec 2008

Bodega Bay one of the Best small towns in America

Worth the price

Scenic Bodega Bay named among nation’s most exclusive small towns

By GUY KOVNER
THE PRESS DEMOCRAT

Published: Friday, December 12, 2008 at 4:22 a.m.

CHRISTOPHER CHUNG / The Press Democrat

Sandra Kim prepares to drive the ball from the fifth tee at The Links at Bodega Harbour golf course overlooking the town of Bodega Bay and Doran Beach on Thursday. The community was recently named one of the 32 most expensive small towns in America.

David Chamberlain, out golfing on a gorgeous December day in Bodega Bay, wasn’t surprised that his coastal village made Business Week magazine’s list of the 32 most expensive small towns in America.

“You get what you pay for. It’s wonderful,” Chamberlain said, gesturing toward the lush green 18th fairway on The Links at Bodega Harbour, the blue Pacific Ocean, sandy Doran Beach and the sheltered bay for a backdrop.

“I really love it,” said Chamberlain, a retiree who’s lived next to the eighth tee since 1999.

About 2½ miles away, veteran Bodega Bay fisherman Tony Anello stood in front of his home and crab company next to Spud Point Marina, his boat, Annabelle, berthed across the road.

“It’s heaven on Earth here,” said Anello, a retired firefighter.

Sonoma County is practically crawling with charming, photogenic little communities rating high on the livability scale. But what put Bodega Bay, population 1,423, onto Business Week’s list was its sky-high property values, inflated by the community’s coastal location, location, location.

Homes typically sell for $834,157, the magazine said. A review of home sales this year, likely deflated by the housing slump, showed a median home price of $809,750 — more than twice the countywide median of $390,250.

Business Week said its list was based on the median home value of towns with no more than 10,000 people. It bent the rules for the sake of geographic diversity, noting that otherwise towns near New York, Los Angeles and San Francisco would have dominated the list.

Two towns in the region joined Bodega Bay on the list of 32: Stinson Beach in Marin County (median home price $1.65 million) and St. Helena in the heart of the Napa Wine Country ($890,361).

Straddling Highway 1 between the ocean and undeveloped coastal hills, Bodega Bay is a picture postcard come to life, with the harbor, a fishing fleet, scenic Bodega Head and two popular waterfront restaurants.

“It’s still somewhat pristine,” said Anello, who’s lived in Bodega Bay for 14 years and fished there since 1970.

There are no traffic lights or tall buildings. A new elementary school sits on a knoll above the bay.

“You have to go at least 25 miles to get into traffic,” said Mike Osborne, another Bodega Harbour resident who was golfing Thursday.

A retired surgeon from Marin County, Osborne said he enjoys the easygoing pace and his affable neighbors in the upscale subdivision at the south end of Bodega Bay.

Sleek wood-frame homes, painted in earth tones that match their coastal shrub landscaping, line the wide, curving streets of Bodega Harbour. There are no sidewalks in the immaculate subdivision wrapped around an 18-hole golf course designed by Robert Trent Jones Jr.

“I love it here,” Osborne said.

Full-time residents occupy about one-third of Bodega Harbour’s homes, so the place is pretty quiet during the week, he said. The other two-thirds of homes are about equally divided between rentals and second homes.

Anello said there’s no divide between Bodega Harbour’s well-heeled retirees and the rest of the town. “They’re real community-minded,” he said, noting that subdivision residents are involved in the school and the town’s emergency preparedness efforts.

For all of its unique values, Bodega Bay is a lot like the rest of Sonoma County. Median household income is $56,818, just 7 percent higher than the countywide level of $53,076.

Bodega Bay’s voter registration runs 47 percent Democratic to 29 percent Republican; Sonoma County is 51 percent to 25 percent.

Bodega Bay is in rarified company on the Business Week list with Chilmark, Mass., on Martha’s Vineyard, Water Mill, N.Y., on Long Island and Hidden Hills in Los Angeles County, all three with median home prices of $2.49 million.

Hidden Hills, mostly a gated community, boasts a median household income of $200,000.

Posted by Thera under Bodega Bay is wonderful | 1 Comment »

20th Nov 2008

Jumbo Rates Drop today November 20, 2008

5/1 interest only ARM 5.75% AT 1 PT COST… 6% AT 0 PTS

30 YR FIXED 6.625% AT 1 POINT

Here is a quick look at impacts affecting the interest rate markets today, pay special attention to the first paragraph as it signals the possibility of lower interest rates soon.

“There was some big news yesterday, as the Fed released the minutes from its October meeting. Not only were future targets for employment and growth lowered, but the Fed–after years of being concerned about inflation–is now concerned about deflation. When deflation occurs, investors typically move money into fixed instruments like Bonds because the fixed payment actually buys them more goods and services over time. This could mean that better home loan rates are ahead.

In other news, Initial Jobless Claims reached its highest level in 16 years, while the four-week average of initial claims reached the highest since January 1983.

Currently, Bonds are still hovering near the 200-day Moving Average. I recommend floating for now. But, remember, things can change quickly. I will keep you posted if we need to change course.”

Posted by Thera under Mortgage rates and bonds bounce | 1 Comment »

15th Nov 2008

Help for Homeowners in their mortgages

Good morning Sonoma Coast Market watchers,

We are all looking and waiting to hear what is the plan for those who are caught in the little or no money flow on our Real Estate obligations. The following is an email from California Association of Realtors, President James Liptak regarding the anticiapated solutions of current homeowner workout loans from the remaining banks. The article contains links to each bank by their present name… and the grid of what is scheduled to happen and when.

If you have any questions please email or call me and I will resource with you the best information available. Keep in mind, that like Henry Paulson, things are constantly changing because WE may know have all the facts and data.

Nov. 14, 2008

Dear C.A.R. Member:

C.A.R. has created several new resources for REALTORS® and homeowners seeking information on existing mortgage workout programs. To provide members with one easy-to-use document, we’ve developed a chart outlining programs offered by the larger lenders and government entities, including a snapshot on eligibility requirements and contact information. If a lender or loan servicer is not on the chart, homeowners may wish to contact their lender or loan servicer to determine if a workout program is available.

We have also developed consumer information sheets containing detailed information on specific programs that you can print or e-mail to share with clients. Please click on the appropriate link below for information on a specific program.

HOPE For Homeowners (H4H)
Countrywide Financial (Bank of America)
Citigroup, CitiMortgage
JP Morgan Chase & Co.
IndyMac Federal Bank, FDIC
Federal Government Loan Modification (Participants include: Fannie Mae, Freddie Mac, Federal Home Loan Banks, Hope Now participants, U.S. Dept. of the Treasury, Federal Housing Administration and the Federal Housing Finance Agency, and Wells Fargo.)

In general, the loan modification programs on the chart and consumer information sheets are intended for primary residences only.

It’s important to stress to clients that mortgage loan modifications typically are handled on a case-by-case basis. Prior to calling a lender or loan servicer, homeowners should have the following information available:
^. Loan number
^. Income information and documentation
^. Most recent mortgage statement
^. Bank statements
^. Letter demonstrating financial hardship

REALTORS® who wish to assist their clients in seeking loan modifications should ensure they are in compliance withCalifornia law. For further information, please visit the California DRE Web site athttp://www.dre.ca.gov/mlb_adv_fees.html. REALTORS® also may direct clients to work with a U.S. Dept. of Housing and Urban Development (HUD)-approved counselor. For a list of HUD-approved counselors in California, visit the HUD Web site at http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search&searchstate=CA.

In other news, you may have heard or read about an inaccurate and misleading claim by ForSaleByOwner.com about its ability to place unlisted for-sale-by-owner information on REALTOR.com®. ForSaleByOwner.com may not in any way enable home sellers to advertise their home on REALTOR.com® without broker representation. Be assured that every property on REALTOR.com must be listed by a licensed real estate broker. REALTOR.com® has asked ForSaleByOwner.com to issue a retraction.

We hope you find both the chart and the consumer information sheets useful as we assist our clients through this difficult time. You also can access the info on car.org at http://www.car.org/legal/mortgage-workout-programs/.

Sincerely,

James Liptak
2009 President
CALIFORNIA ASSOCIATION OF REALTORS®

Posted by Thera under Federal Loan reform | 8 Comments »

03rd Nov 2008

Bonds and Mortgage Rates as of 10/31/2008 by Ron Shaw of Well Fargo

Provided to you Exclusively
By	Ron Shaw

Ron Shaw
Wells Fargo Home Mortgage
Office: 866-588-7691
E-Mail: ronald.h.shaw@wellsfargo.com

For the week of Nov 03, 2008 — Vol. 6, Issue 45

Last Week in Review

“TAKE TIME TO DELIBERATE; BUT WHEN THE TIME FOR ACTION ARRIVES…STOP THINKING AND GO IN.” Napoleon Bonaparte. And taking action after deliberating was exactly what the Fed did last week, when they cut the Fed Funds Rate by .50%, lowering it to 1.00%.

Why did the Fed take action last week, after it had already lowered the Fed Funds Rate by .50% on October 8 in a coordinated effort with other central banks? To continue to help ease the credit crisis, and prevent a long and severe global recession. In fact, several foreign central banks followed the Fed’s lead again last week, with Hong Kong cutting their lending rate by .50%, Taiwan cutting by .25%, and Japan cutting by .20%. This is important because cuts by other nations help stabilize the US Dollar, which typically loses ground after our Fed cuts rates, because of the lower yield offered comparatively offered in the US. Another interesting point to note: since oil is Dollar denominated, the price per barrel typically jumps after our Fed cuts rates, because of the decline in the value of the Dollar. The cuts by other central banks should keep oil…and gas prices, in turn…from skyrocketing again.

Another reason the Fed took action: The Fed’s statement discounted threats of inflation, saying that slowing economic growth should lower inflation pressures over time, but added that downside risks to economic growth remain. And last week’s negative Gross Domestic Product reading is confirmation that things have slowed quite a bit. Although experts have speculated that the US may already be in a recession, the first hardcore signs appeared when the Third Quarter Advance GDP report showed that consumer spending declined at the fastest pace in 28 years. The report also reflected the largest quarterly decline since the end of the last recession in 2001.

So what did all of this mean for Bonds and home loan rates last week? After worsening early in the week, Bonds and home loan rates attempted to stabilize by week end. And while it was a treat that Bonds did bounce off an important level of technical support, home loan rates still ended the week nearly .125-.25% worse than where they began.

SPECIAL NOTE: BRAND NEW VIDEO FEATURE IN THIS WEEK’S MORTGAGE MARKET VIEW! CHECK IT OUT TO LEARN SOME HOT TIPS TO CONSIDER WHEN BUYING OR LEASING YOUR NEXT VEHICLE.

Forecast for the Week

The excitement continues, as the heavyweight Jobs Report is scheduled for release this Friday, which will show the number of jobs lost or gained in October. Remember that the Department of Labor averages their numbers, and part of each month’s report includes “revisions” to the several prior months’ numbers. Last month, the Labor Department reported that 159,000 jobs were lost in September, which was worse than the 105,000 lost jobs that economists were expecting. As of last month’s report, the US has lost 760,000 jobs so far in 2008. And the news for October is not expected to be any better.

A negative report could be bad news for Stocks and good news for Bonds and Home loan rates, as bad economic news typically causes money to flow from Stocks and into Bonds. But as has been noted in recent weeks, things are anything but typical at the moment. Bottom line: count on me to be watching closely to see how the markets react to this report and all the other news of the week…and feel free to call me anytime, even if you’d just like to do a quick review of your own current financial and credit situation.

As you can see in the chart below, Bonds did bounce off a key technical support level late in the week. I will let you know if Bonds can remain above this important support during the week ahead.

Chart: Fannie Mae 6.0% Mortgage Bond (Friday Oct 31, 2008)

Posted by Thera under Mortgage rates and bonds bounce | 1 Comment »

02nd Nov 2008

Buying a Vacation Rental Home in this economic market.

My name is Thera Buttaro, my husband and I began Bodega Bay & Beyond Vacation Home Rentals over 16 years ago. We built our commercial office building which houses both Vacation Home Rental and Sonoma Coast Living Real Estate Services. It will be be 10 years old in June 2009 and is located between Hwy 1 and the Bay.

I have been in real estate for more than 30 years, almost 20 here in Bodega Bay. So experience is important in purchasing real estate in the current climate. Coastal real estate values have dropped some but hold their values compared to many inland areas.

You should determine what size and location house you want for your needs and them search for that type of home as the one to purchase. However if money is no issue then the ocean front homes will always rent the most, hold their values best, and increase the greatest in future value.

So if you are ready to shop then this is a great time. A good floor plan, 3 bedroom 3 bath home might cost about $800K to &1200K. Again depending on location, size, and condition. If you have the cash to pay then that does make the purchasing easier. If you are planning to obtain a loan you must have at least 40% cash to put down. Rates are 6.5 APR plus points. The maximum loan is $417,000. So these numbers might define what you have to do.
Our homes can and do rent for 170 to 200 nights a year. That is all year round but of course June, July, August, September are usually booked full. Again depending on the condition and furnishings you might net $20,000 to $40,000 during a year in our program. If you let me know which homes you have stayed at before I will then provide the rental nights and income of those to give you an idea.

If you purchased a 4 or 5 bedroom top-of-the-line property, owners have seen over $100,000 a year in gross income. Our fees and the miscellaneous might run about 37% of the gross income. Let me know your criteria and I will work with you to met your needs. Now is a fabulous time to purchase a coastal home. There are a lot of choices and good values. Let me know your wishes and how I can assist you in planning for or purchasing now a coastal home for you now or planning for the future.

Best,

Thera

Thera Buttaro, CRB. CRS, CLHMS, RSPS &
Eco Green Certified Broker

Posted by Thera under Vacation Rental Home purchase information | 2 Comments »

18th Oct 2008

Economic Report Q1-3 2008 Sonoma County

October 2008

The Sonoma County Economic Development Board in partnership with Sonoma County Workforce Investment Board brings the following 2008 Fall Local Economic Report.

Hightlights include:

total employment is faring better than the nation with growth of .8 % in August 2008 with payroll employment rising.
Housing market to stabilize around the middle of 2009 when supply and demand quill equalize. Median prices continue to fall with prices continuing to decrease to be in balance with household incomes.

Local technology industries will bolster Sonoma County’s economy but are subject to the volatility of equity markets. Tourism and leisure has grown the past year but could be effected by the Nationwide economic changes.

The report can be found at the EDB’s web site and downloaded. It will provide good data and graphical display of the information. You may visit the EDB web site for much more quality reports on Sonoma County’s Economic health at www.sonoma-county.org/edb/

Glad to share the reality of the beautiful place we live and love,

Thera Buttaro, Broker

Sonoma Coast Living Real Estate Services

Posted by Thera under Uncategorized | 3 Comments »

14th Oct 2008

Hitmen Termite Company is using EcoGreen Orangeoil

Guaranteed Professional Pest Control Services for
San Francisco Bay Area Homeowners and Businesses
Since 1978

The Hitmen Termite and Pest Control are committed to providing you with complete, effective Pest Control Services, so that you don’t have to worry about your pest problem today, or further down the road. We understand the importance of the health of your home and family, and that is why we have developed effective pest control solutions with reduced pesticide usage, such as our Smart Choice program with EcoSmart products, and the use of XT-2000 Orange Oil.

Smart Choice Program

The Hitmen Termite and Pest Control is proud to offer its Smart Choice Program, designed for property owners who prefer integrated pest management using experience and knowledge over the traditional “kill everything” concept. This program allows for the effective control of most pest problems while minimizing the use of traditional synthetic pesticides.

We start with a thorough inspection of the property then use our experience and knowledge to develop a treatment plan for your pest problems. With many tools proven to be effective against most household pests, we can find the right pest control solution for your home or business.

EcoSMART and Orange Oil are just a few of our treatment options.

EcoSMART Products

ecoSmart

EcoSmart products are an important part of The Hitmen’s Smart Choice program. EcoSmart Technologies offers a complete line of professional botanical based products for interior and exterior use.

EcoSmart products are extremely effective against a broad spectrum of insects with both a quick knockdown and control. Unlike botanicals in the past, several of EcoSmart products also provide residual protection comparable to conventional pesticides. EcoSmart patented technology is based on the natural defenses that plants and trees use for self-protection against insects and pathogens- essential oils. Some of EcoSmart professional line of products are considered minimum risk by the EPA and are exempt from registration. Call today and ask about The Hitmen’s Smart Choice program featuring EcoSmart products can help you and your family.

Call me or blog one how this can change the way to keep our homes healthy.

Thera Buttaro, EcoGreen Certified Broker

888-875-3240

Posted by Thera under EcoGreen products | 1 Comment »

13th Oct 2008

Certified Residential Specialist earned by Thera Buttaro

Contact: Thera Buttaro
707-875-2500 X 14
thera@sonomacoastliving.com

FOR IMMEDIATE RELEASE IN CALIFORNIA
THERA BUTTARO HAS BEEN AWARDED THE CERTIFIED RESIDENTIAL SPECIALIST DESIGNATION BY THE COUNCIL OF RESIDENTIAL SPECIALISTS OF THE NATIONAL ASSOCIATION OF REALTORS®.

Bodega Bay, September 25, 2008- Thera Buttaro, a Broker who specializes in Sonoma Coast Real Estate, has been awarded the prestigious Certified Residential Specialist (CRS) Designation by the Council of Residential Specialists, the largest not-for-profit affiliate of the National Association of REALTORS®.
Realtors who receive the CRS Designation have completed advanced courses and have demonstrated professional expertise in the field of residential real estate. Fewer than 38,000 Realtors nationwide have earned the credential.
Home buyers and sellers can be assured that CRS Designees subscribe to the strict realtors code of ethics, have access to the latest technology and are specialists in helping clients maximize profits and minimize costs when buying or selling a home.
Thera Buttaro is a Broker of Sonoma Coast Living Real Estate Services in Bodega Bay. She originally obtained her license in 1977 in San Jose and has lived in Sonoma County since 1979. She also holds the CRB, ILHM, RSPS designations. Thera continues to serve on the Legal Governmental Affairs Committee and Grievance Committee of North Bay Association of Realtors and is an appointed Board of Realtors PAC Trustee.

###

Posted by Thera under Press release | 1 Comment »

24th Sep 2008

Senant Banking, Housing, and Urban Affairs Committee hearing

Sept. 23, 2008

Dear C.A.R. Member:

Today, the Senate Banking, Housing, and Urban Affairs Committee held a hearing to discuss the U.S. Dept. of the Treasury’s proposal to stabilize the U.S. financial system. The panel consisted of Treasury Secretary Henry Paulson; Federal Reserve Chairman Ben Bernanke; Christopher Cox, chairman of the Securities and Exchange Commission; and James Lockhart, director of the Federal Housing Finance Agency.

Now that Congress has had a chance to dissect the Treasury proposal, we’re seeing pushback to the plan in its current form from both sides of the aisle, and this was evident during today’s hearing. Members of Congress are asking for several additions or refinements to the proposal, including:

Legislation to help homeowners avoid foreclosure;
limiting compensation to executives of troubled firms receiving assistance;
greater oversight than the limited bi-annual reporting mechanism in the current proposal;
allowing the government to take an ownership stake in companies;
decreasing the timeframe for the Treasury workout from two years to one; and
limiting the initial outlay followed by a reassessment early next year prior to deploying additional resources.

With the general election in November a little more than a month away, there also is a certain amount of to-be-expected political posturing going on this week. Members of Congress will soon return to their home districts for recess and will be expected to explain their positions to constituents. However, some of the pushback is philosophically driven from both liberals and conservatives in both parties.

To view today’s hearing, go to:

http://banking.senate.gov/public/index.cfm?Fuseaction=Hearings.Detail&HearingID=7a41ae9e-30b2-4d7f-8f1b-4ef2e8ae28f7.

Tomorrow, the House Financial Services Committee will convene for a 9 a.m. PDT hearing with Paulson and Bernanke again scheduled to testify, as well as member of Congress. We’ll report tomorrow’s developments to you in C.A.R. Newsline.

Sincerely,

William E. Brown
2008 President
CALIFORNIA ASSOCIATION OF REALTORS®

Posted by Thera under Banking Bailout | No Comments »

Previous Entries

Just another WordPress weblog

Coastal Real Estate News