Existing Home Sales.

Increase in short sales give market a little breathing room.

1. Consumer confidence and jobs:  More jobs need to be created to stimulate home buying, and prevent mortgage delinquencies from rising past their already bloated rate. Home prices are down, in some areas 35-45% down; interest rates are lower than they have been in decades, amongst the lowest rates ever! Still, would-be buyers are worried that home prices could go lower; whether or not they will they still have their job tomorrow; or have their hours reduced due to a stalled recovery.
2. Foreclosures and Delinquencies:  That “shadow inventory” of foreclosed homes still exists. Banks and other mortgage investors own about 440,000 foreclosed homes that still need to be taken back and resold. However, there is another 3.4 million loans in foreclosure or serious delinquency, according to estimates by industry analysts. Because banks are quicker to accept lower prices than conventional sellers, this could further erode the median home price as these distressed homes start to hit the market. There is a movement being supported by the Federal Reserve and others to convert some of these foreclosures into rental properties. On the surface it’s a great idea, but banks typically make very poor property managers and home owners. They are in the business of loaning money and increasing their profits, not property ownership. We’ll see how this plays out as they start some pilot programs later this year.
3. Rents:  Vacancy level are dropping to levels not seen since 2006, and rental prices are on the rise. Coupled with affordable housing prices and record low interest rates, another rent increase could be just the impetus a potential home buyer has been waiting for to take the plunge.
4. Mortgage credit and rates:  As mentioned, the Fed has taken extraordinary steps to insure that mortgage interest rates remain the lowest in decades, and federal-backed entities are responsible for backing nearly nine out of ten new mortgages! But, it is still very difficult for buyers to obtain a loan because banks are demanding lots and lots of documentation of buyer’s income, and appraisals are sometimes souring the deal; sometimes at the last minute when the lender requires a second appraisal.  When the appraisal comes in below the agreed to price, either sellers have to make another last minute price adjustment, or buyers have to come up with more cash; cash they typically have no access to. Banks went from one extreme to the other; first giving away loans to anyone who breathed, to now demanding such stringent requirements that even borrowers with perfect credit and full documentation are made to jump through a lot of unnecessary hoops. The banks are going to have to get back to a more level playing field before this will change.
5. Regulation:  Although there has been lots of talk, many analysts do not expect there to be major changes to Fannie Mae and Freddie Mac in an election year. However, there are several major regulatory changes that could significantly reshape the way banks do business in 2012. Chief amongst these is the Dodd-Frank Act whose lending rules still have not been defined by regulators. These regulations will spell out how banks price loans that are bundled and sold into mortgage backed securities. Another set of regulations will determine just how the banks determine that a borrower has the ability to repay their mortgage. Meanwhile, the regulator that oversees Fannie and Freddie is revamping the way that mortgage companies are paid for collecting loan payments. This could lead to a broader shakeup in the mortgage industry that ultimately influences how much borrowers are charged for mortgages and how banks handle loans that fall into delinquency. Again, we have gone from one extreme to the other, and there has to be a middle road where lending can return to some sort of normalcy. Of course, given the political climate and this being an election year, who really knows?
   

As I stated when I began, real estate is local; feel free to contact me if you have any questions about your home’s value, or if you are in the market to move up or down in this very exciting market. As usual, your referrals of family, friends and associates are always welcome and appreciated!

All my very best to you and your family in this New Year; I wish you health, happiness, serenity, and prosperity.

Kind regards,

Mike Bryant, Realtor®

CRS, CDPE, CIAS, SFR, Certified HAFA Specialist

Keller Williams Realty

120 Stony Point Rd., Suite 140

Santa Rosa, Ca 95401

Direct: 707-484-8825

Fax:    707-595-5950

DRE License# 01450191

mikebryant@kw.com

Americans Are Ready and Willing to Buy, But Seller Sentiment Remains Extremely Negative.

With interest rates at historic lows, and incredible bargains available in our local market, more and more of my clients are investing their money in real estate. Watch this short video and find out how almost anyone can get started today with very little down!

Then contact me at 707-484-8825 or email me at mikebryant@kw.com for a FREE consultation and to get a list of investment properties currently available in your area.

Have you fallen behind on your mortgage payments and don’t know what to do? Watch this brief video, and find out what a short sale is, and why it may be the solution you have been searching for.

Then contact me at 707-484-8825, or email me at mikebryant@kw.com for a FREE consultation to find out if a short sale is right for you.

The Sky’s the (Loan) Limit.

It’s that time of year again; Food for Thought is holding its Dining Out For Life one day program Thursday, December 1st.
As most of you know, Food For Thought is a non-profit grassroots agency that is dedicated to meeting the nutritional and basic needs of all persons living with JIV/AIDS in Sonoma County. They’ve been around since 1988, and their biggest fundraising project each year is Dining Out For Life. There are over 60 great Sonoma County restaurants participating this year, and they will donate 25-50% of every food bill to help this great organization.
This year I will be the ambassador for lunch at Checkers Bistro in Downtown Santa Rosa. Please join me between 11 and 2 and have a great lunch; knowing that part of what you spend will go to help those in need. If you can’t make it for lunch, take a look at the attached list for the restaurants that are participating for breakfast, lunch or dinner and please patronize one of them.
Thank you again for your generosity.

Dining Out
For Life
Good Food
Food Friends
Great Cause!

Thursday, December 1, 2011

Food For Thought
Sonoma County
AIDS Food Bank

http://www.fftfoodbank.org

Please join me on Thursday, December 1st
World AIDS Day
in a community-wide celebration benefiting Food For Thought

Simply dine out at a participating restaurant and the restaurant will donate 25 or 50% of your bill to Food For Thought Sonoma County AIDS Food Bank
It’s that easy!
You can choose breakfast, lunch or dinner or forget about cooking and dine out all day! I will be an ambassador at one of these restaurants and am hoping you can join me.
You can also help by spreading the word to family, friends, co-workers and neighbors and invite them to dine out.

You can see the list of participating restaurants here;

http://ow.ly/7zCFi

Bon Appetit!

Mike Bryant, Realtor®
CRS, CDPE, CIAS, SFR, Certified HAFA Specialist
Keller Williams Realty
120 Stony Point Rd., Suite 140
Santa Rosa, Ca 95401
Direct: 707-484-8825
Fax: 707-595-5950
DRE License# 01450191
mikebryant@kw.com

http://www.mikebryantproperties.com

It’s that time of the year to go through your closets and donate those old coats. Please ask your family and friends to donate too!
Donated Coats Will Go to:
• Redwood Covenant Church Charities
• Catholic Charities Homeless Service Center
• Redwood Empire Gospel Mission

These charities reach a large portion of downtown homeless Individuals living on the streets of Santa Rosa, and local families and individuals, both homeless and low income in Santa Rosa.
Please help us to help them.

We will be collecting coats for men women and children. We are especially in need of XXL sized coats!

You can drop your donated coats off at the Keller Williams Office at 120 Stony Point Rd., Suite 140 in Santa Rosa, or just give me a call and I will be happy to stop by and pick them up for you!
Thank you so much for being so generous again this year

Mike Bryant
707-484-8825

Home prices heading for triple-dip – Oct. 31, 2011.