Santa Cruz Real Estate and Community News

2011-06-10T07:31:00.001-07:00

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Contact me: email: walter@831.com | phone: 831.246.4663


			June 2011

Search Homes / Custom Market Stats

Home sales dropped 11.3%, after having been up year-over-year for the previous four months.

The median price for single-family, re-sale homes in Santa Cruz County was down 21.9% year-over-year, while the average price declined 8.4%.

Coastal Commission Changes

The California Coastal Commission is undergoing a makeover, with the changes potentially giving the Arana Gulch plan a boost and holding future implications for two major issues in Santa Cruz: the proposed desalination plant and the beachfront La Bahia Hotel.

In the past few weeks, Gov. Jerry Brown and state lawmakers have appointed several new commissioners, including a former Ventura mayor and the first member from Del Norte County.

While they haven't yet met as a group, the new members' collective track records are solidly pro-environmental. But it is who they replaced that has backers of Arana Gulch quietly optimistic. Two members who voted against the project are gone, replaced by television producer Dayna Bochco and Marin County Supervisor Steve Kinsey. MORE

What You Should Know about Appraisals

Understanding how appraisals work will help you achieve a quick and profitable refinance or sale. MORE

Real Estate News

After stumbling in February, sales of existing homes rose 3.7 percent in March from the month before, according to a National Association of Realtors report released April 20th.

Completed sales of existing single-family homes, townhomes, condominiums and co-ops fell 6.3 percent compared to March 2010—when a federal homebuyer tax credit program elevated sales—to a seasonally adjusted annual rate of 5.1 million units.

"With rising jobs and excellent affordability conditions, we project moderate improvements into 2012, but not every month will show a gain—primarily because some buyers are finding it too difficult to obtain a mortgage," said Lawrence Yun, NAR's chief economist, in a statement.

He said the generally upward trend in monthly existing-home sales suggests the housing market is "clearly on a recovery path."

The median price for existing homes nationwide fell 5.9 percent year-over-year in March, to $159,600. Distressed properties, typically sold at a discount, made up 40 percent of sales last month, compared with 35 percent in March 2010.

The Economy

New home sales rose 7.3% in April to a seasonally adjusted annual rate of 323,000 units from an upwardly revised rate of 301,000 units in March. Economists had expected a pace of 300,000 units in April.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending May 20 rose 1.1%. Refinancing applications increased 0.9%. Purchase volume rose 1.1%.

Orders for durable goods—items expected to last three or more years—fell 3.6% in April after a revised 4.4% increase in March. Excluding volatile transportation-related goods, orders posted a monthly decrease of 1.5%.

The Commerce Department announced that gross domestic product—the total output of goods and services produced in the U.S.—increased at an annual rate of 1.8% in the first quarter of 2011. This follows a 3.1% pace of growth in the fourth quarter of 2010.

Retail sales fell 1% for the week ending May 21, according to the ICSC-Goldman Sachs index. On a year-over-year basis, retailers saw sales increase 3.1%.

Pending home sales, a forward-looking indicator based on signed contracts, fell 11.6% in April after a 5.1% increase in March. On a year-over-year basis, pending sales are down 26.5%.

Lending News: Mortgage rates ease for first time in a month

Retail sales fell 1% for the week ending May 21, according to the ICSC-Goldman Sachs index. On a year-over-year basis, retailers saw sales increase 3.1%.

Pending home sales, a forward-looking indicator based on signed contracts, fell 11.6% in April after a 5.1% increase in March. On a year-over-year basis, pending sales are down 26.5%.

Local Market Stats

Market Barometer:

Prices (Single-family, Santa Cruz city):

Commercial rents:

The information in this e-mail is provided solely for informational and/or entertainment purposes. If your property is listed with another real estate company or if you have a buyer's agency agreement with an agent, please disregard this offer. It is not my intention to solicit the offerings of other real estate brokers. I disclaim any warranties or representations concerning the information contained in this email. I do not guarantee the accuracy of the information contained in this e-mail and instruct you to independently verify the accuracy of the information provided. All intellectual property rights are retained by their owners.

Contact me: email: walter@831.com | phone: 831.246.4663

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Walter Stauss / Lifestyles Real Estate
500 Seabright Avenue
Santa Cruz, California 95062
US

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What You Must Know About Home Appraisals

2011-06-01T16:24:00.000-07:00

By: G. M. Filisko

Understanding how appraisals work will help you achieve a quick and profitable refinance or sale.

1. An appraisal isn’t an exact science

When appraisers evaluate a home’s value, they’re giving their best opinion based on how the home’s features stack up against those of similar homes recently sold nearby. One appraiser may factor in a recent sale, but another may consider that sale too long ago, or the home too different, or too far away to be a fair comparison. The result can be differences in the values two separate appraisers set for your home.

2. Appraisals have different purposes

If the appraisal is being used by a lender giving a loan on the home, the appraised value will be the lower of market value (what it would sell for on the open market today) and the price you paid for the house if you recently bought it.

An appraisal being used to figure out how much to insure your home for or to determine your property taxes may rely on other factors and arrive at different values. For example, though an appraisal for a home loan evaluates today’s market value, an appraisal for insurance purposes calculates what it would cost to rebuild your home at today’s building material and labor rates, which can result in two different numbers.

Appraisals are also different from CMAs, or competitive market analyses. In a CMA, a real estate agent relies on market expertise to estimate how much your home will sell for in a specific time period. The price your home will sell for in 30 days may be different than the price your home will sell for in 120 days. Because real estate agents don’t follow the rules appraisers do, there can be variations between CMAs and appraisals on the same home.

3. An appraisal is a snapshot

Home prices shift, and appraised values will shift with those market changes. Your home may be appraised at $150,000 today, but in two months when you refinance or list it for sale, the appraised value could be lower or higher depending on how your market has performed.

4. Appraisals don’t factor in your personal issues

You may have a reason you must sell immediately, such as a job loss or transfer, which can affect the amount of money you’ll accept to complete the transaction in your time frame. An appraisal doesn’t consider those personal factors.

5. You can ask for a second opinion

If your home appraisal comes back at a value you believe is too low, you can request that a second appraisal be performed by a different appraiser. You, or potential buyers, if they’ve requested the appraisal, will have to pay for the second appraisal. But it may be worth it to keep the sale from collapsing from a faulty appraisal. On the other hand, the appraisal may be accurate, and it may be a sign that you need to adjust your pricing or the size of the loan you’re refinancing.

For More Information

Please contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate500 Seabright Avenue, Santa Cruz, California 95062Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com DRE #01105052

Coastal Commission Makeover

2011-06-01T16:19:00.000-07:00

Coastal Commission makeover could signal change in outlook on Santa Cruz projects
By Jason Hoppin
jhoppin@santacruzsentinel.com
SANTA CRUZ - The California Coastal Commission is undergoing an extreme makeover, with the changes potentially giving the Arana Gulch plan a boost and holding future implications for two major issues in Santa Cruz: the proposed desalination plant and the beachfront La Bahia Hotel.
In the past few weeks, Gov. Jerry Brown and state lawmakers have appointed several new commissioners, including a former Ventura mayor and the first member from Del Norte County. While they haven't yet met as a group, the new members' collective track records are solidly pro-environmental.
But it is who they replaced that has backers of Arana Gulch quietly optimistic. Two members who voted against the project are gone, replaced by television producer Dayna Bochco and Marin County Supervisor Steve Kinsey.
"This is a big step forward," said Paul Schoellhamer, a local supporter of the project. "We wanted strong enviros who would make decisions based on the facts and the law, not on ideology or interest group politics. It appears we got what we wanted," .
"We're hoping they're more appreciative of a project that we think is consistent with their mandate and their values," Santa Cruz Mayor Ryan Coonerty said.
The plan, which includes bicycle and pedestrian trails through a 68-acre greenbelt behind the Santa Cruz Small Craft Harbor, was rejected in October on a 5-5 vote.
Observers on both sides of the issue agree that a late-arriving commissioner who was not allowed to vote would have tilted the project to approval.
Planners are tweaking the project, but it appears they wouldn't need much more to get it through the Coastal Commission. But jettisoning Commissioner Sara Wan is a major change.
Wan, a strong environmentalist who voted against the proposal, built a reputation over 15 years on the commission as a staunch defender of the coast and strict interpreter of coastal rules.
Another change is the departure of San Francisco Supervisor Ross Mirkarimi, who also voted against Arana Gulch. He was the first Green Party member on the Coastal Commission, but was also replaced.
Wan consistently ranked at or near the top of commissioner vote rankings put together by an environmental coalition of the Sierra Club, Surfrider Foundation, California Coastkeeper Alliance and others. She viewed the proposed Arana Gulch plan as part of a broader transportation project rather than one meant to help interpret the region's natural environment.
Wan has also voted against desalination proposals, which could be a factor if the Santa Cruz Water Department and Soquel Creek Water District eventually seek Coastal Commission approval for their proposed desal plant. Another major local issue is the proposed La Bahia Hotel project, which has been filed and will require commission approval. No votes on Arana Gulch, La Bahia or the desal plant have been scheduled.
The 12-member Coastal Commission has broad authority over development along California's 1,100-mile coastline, including much of the prime real estate in Santa Cruz County. Other new members include Del Norte County Supervisor Martha McClure, former Ventura Mayor Brian Brennan and Jana Zimmer, a Santa Barbara artist.
Some environmentalists working to tweak the Arana Gulch proposal were disappointed Wan is gone. Vince Cheap, a local chapter president of the California Native Plant Society, said that despite his group's concessions, talks with the city of Santa Cruz over Arana Gulch recently broke down due to the city's refusal to commit to ongoing funding or scientific standards for assessing the vitality of the endangered Santa Cruz tarplant.
"(Wan) was more extreme than we were, in a sense," Cheap said.
Dannette Shoemaker, Santa Cruz's director of parks and recreation, said she was surprised to learn tarplant advocates felt talks had broken down, but added that the city cannot commit to annual funding of a plant management plan.
Wan was replaced by Bochco, who currently serves on the boards of Heal the Bay and a Southern California chapter of the Natural Resources Defense Council.
She has not yet met officially as a member of the commission, and it's too soon to say whether she represents a significant break from Wan on issues, or how the new members change the makeup of the group.
"I don't have any experience with the new commissioners, so I have no idea," said Santa Cruz County Supervisor Mark Stone, a Coastal Commission member who voted in favor of Arana Gulch.
Wan may have written her own end in January, when she successfully sought to be elected chair of the Coastal Commission.
The move angered California Democratic Party Chairman John Burton, who preferred a protege in the role, and state Senate President Pro Tem Darrell Steinberg declined to reappoint Wan when her term expired in March.
Reached at her home in Malibu, Wan was curt. She said she did not have a sense of how her departure would affect any future vote on Arana Gulch.
"No," she said. "I have none."
In a statement, Heal the Bay President Mark Gold praised Wan, calling her the best commissioner in the history of the Coastal Commission, and said Bochco has big shoes to fill.
Bochco said she was unfamiliar with Wan's record and has never met her, but said she would interpret every case according to the Coastal Act's intent.
"I don't think anyone should go in to any situation or any application with a prejudgment," Bochco said. "We're not there for that. We're there to analyze the facts, interpret them against the law, and act accordingly."

For More Information

Please contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate500 Seabright Avenue, Santa Cruz, California 95062Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com DRE #01105052

Santa Cruz Real Estate and Community News

2011-04-25T14:57:00.001-07:00

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Contact me: email: walter@831.com | phone: 831.246.4663


			April 2011

Search Homes / Custom Market Stats

Sales of single-family, re-sale homes were up in March, year-over-year, for the third month in a row: 41.5%.

The median price for single-family, re-sale homes in Santa Cruz County was down 9.4% year-over-year, while the average price declined 17.6%.

Supervisors Approve Redevelopment Projects

The Santa Cruz County Board of Supervisors last month approved spending more than $75 million on a final list of redevelopment projects, including:
New sheriff's center: $44 million
Behavioral health center: $6.5 million
East Cliff parkway project: $5.1 million
Live Oak youth center: $5 million
Twin Lakes beachfront improvements: $4.5 million
Project management funds: $1.8 million
Felt Street Park: $1.5 million
Soquel Creek Linear Park: $1.5 million
Arana Gulch path project: $1.4 million
Upper Porter/Soquel/San Jose Road improvements: $1.2 million
Eaton Street improvements: $880,000
Soquel Avenue improvements: $720,000
East Cliff bluff protection: $700,000
Pavement management: $200,000
Simpkins Family Swim Center improvements: $170,000
Live Oak Resource Center: $130,000
Proposition 84 grant funding: $125,000
Chanticleer Park interim funds: $50,000
Graffiti abatement: $10,000
LION neighborhood grants: $10,000
SOURCE: Santa Cruz County Board of Supervisors

Food Trivia

Fruits and vegetables with the least pesticide residue:
Asparagus, Avocado, Brussels Sprouts, Cabbage, Eggplant, Kiwi, Mango, Onion, Pineapple, Sweet Corn, Sweet Peas, & Watermelon.

The worst for pesticide residue:
Apples, Celery, Cherries, Kale/Collard Greens, Nectarines, Peaches, Spinach, Strawberries, & Sweet Bell Peppers

[Food and Wine, 2/2011 and foodnews.org]

Real Estate News

After stumbling in February, sales of existing homes rose 3.7 percent in March from the month before, according to a National Association of Realtors report released April 20th.

Completed sales of existing single-family homes, townhomes, condominiums and co-ops fell 6.3 percent compared to March 2010 -- when a federal homebuyer tax credit program elevated sales -- to a seasonally adjusted annual rate of 5.1 million units.

"With rising jobs and excellent affordability conditions, we project moderate improvements into 2012, but not every month will show a gain -- primarily because some buyers are finding it too difficult to obtain a mortgage," said Lawrence Yun, NAR's chief economist, in a statement.

He said the generally upward trend in monthly existing-home sales suggests the housing market is "clearly on a recovery path."

The Economy

Retail sales rose 2.3% for the week ending April 2, according to the ICSC-Goldman Sachs index. On a year-over-year basis, retailers saw sales increase 2.8%.

The Institute for Supply Management reported that the monthly composite index of non-manufacturing activity fell to 57.3 in March from 59.7 in February. A reading above 50 signals expansion. It was the 15th straight month of expansion in the services sector.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending April 1 fell 2%. Refinancing applications decreased 6.2%. Purchase volume rose 6.7%.

According to the Federal Reserve, consumer credit debt rose in February by $7.62 billion for a total credit level of $2.42 trillion. Figures for January were revised from an initial gain of $5.01 billion to a gain of $4.45 billion. Revolving debt, which includes credit cards, fell by $2.71 billion. Non-revolving debt, including loans for cars, rose by $10.3 billion.

Wholesalers increased their inventories 1% to $437.99 billion in February. This followed a 1.1% rise in January. Sales at the wholesale level fell 0.8% in February. On a year-over-year basis, sales were 13.7% higher since February 2010.

Initial claims for unemployment benefits fell by 10,000 to 382,000 for the week ending April 2. Continuing claims for the week ending March 26 fell by 9,000 to 3.7 million.

Upcoming on the economic calendar are reports on international trade on April 12, retail sales on April 13 and industrial production on April 15.

Lending News

Mortgage rates ease for first time in a month

Mortgage rates eased this week for the first time in a month, as signs of inflation remained subdued, Freddie Mac said in releasing the results of its weekly Primary Mortgage Market Survey.

Rates on 30-year fixed-rate mortgages averaged 4.8 percent with an average 0.7 point for the week ending April 21, down from 4.91 percent last week and 5.07 percent a year ago.

This year, rates on 30-year fixed-rate loans have ranged from 4.71 percent in early January to a high of 5.05 percent in February. The 30-year fixed-rate mortgage hit an all-time low in Freddie Mac records dating to 1971 of 4.17 percent during the week ending Nov. 11.

"Low inflation is keeping mortgage rates at bay," said Freddie Mac Chief Economist Frank Nothaft in a statement. "The core consumer price index rose just 0.1 percent in March, below the market consensus forecast. The 12-month growth rate in core prices was 1.2 percent, which is also rather low by historical standards."

Local Market Stats

Sales, year to date (Single-family, Santa Cruz County):

Prices (Single-family, Santa Cruz city):

Commercial rents:

Contact me: email: walter@831.com | phone: 831.246.4663

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Walter Stauss / Lifestyles Real Estate
500 Seabright Avenue
Santa Cruz, California 95062
US

Read the VerticalResponse marketing policy.

February 2011 Newsletter

2011-02-18T12:29:00.000-08:00

Search Homes / Custom Market Stats

Our winter real estate market is usually slow and this year is no exception (although my open house on Sunday was very busy!).

Compared to January 2010: the average price fell 10.9% to $516,371; inventory dropped by 3.2% to 570; and days on market increased from 71 to 81.

Fed sees firmer US recovery

JUST IN: WASHINGTON — The US economic recovery is now on a firmer footing, with consumers and businesses spending more despite still-high unemployment, according to Federal Reserve"s top policy panel.
Minutes of the Fed"s January meeting, published Wednesday, pointed to the bank"s more optimistic view of the US recovery, despite persistent high unemployment.

Real Estate News

Home sales rebounded in 49 states during the fourth quarter of 2010 with 78 markets—just over half of the available metropolitan areas—experiencing price gains from a year ago, while most of the rest saw price weakness, according to the latest survey by the National Association of REALTORS®.

Total state existing-home sales, including single-family and condo, jumped 15.4% to a seasonally adjusted annual rate of 4.80 million in the fourth quarter from 4.16 million in the third quarter, but were 19.5% below a surge to an unsustainable cyclical peak of 5.97 million in the fourth quarter of 2009, which was driven by the initial deadline for the first-time buyer tax credit.

In the fourth quarter, the median existing single-family home price rose in 78 out of 152 metropolitan statistical areas (MSAs) from the fourth quarter of 2009, including 10 with double-digit increases; three were unchanged and 71 areas had price declines. In the fourth quarter of 2009, a total of 67 MSAs experienced annual price gains.

The national median existing single-family price was $170,600 in the fourth quarter, up 0.2% from $170,300 in the fourth quarter of 2009. The median is where half sold for more and half sold for less. Distressed homes, typically sold at discount of 10-15%, accounted for 34% of fourth quarter sales, little changed from 32% a year earlier.

Lawrence Yun, NAR chief economist, is encouraged by the trend. “Home sales clearly recovered in the latter part of 2010 and are helping to absorb the inventory, including many distressed properties. Even with foreclosures continuing to enter the inventory pipeline, they’ve been selling well and housing supplies have trended down,” he said. “A recovery to normalcy requires steady trimming of the inventories.”

Yun added, “An improving housing market and job growth will go hand in hand.

The housing recovery will mean faster job growth.” He projects about 150,000 to 200,000 jobs will be added to the economy this year from an anticipated 300,000 additional home sales in 2011.

Yun further noted, “Better than expected sales and/or strengthening in home values can have an even bigger job impact as consumer spending would naturally rise from a housing wealth recovery affecting a vast number of American families.”

NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., said a very favorable affordability environment is a huge factor in the recovery. “Although job growth has been relatively modest and credit is tight, you can’t underestimate the impact of historically high housing affordability conditions,” he said.

“Mortgage interest rates recently hit record lows, median family income has edged up and prices in most areas have been stable following the correction from the housing boom. For people with good credit and long term plans, it’s hard to imagine a better opportunity than what we see today,” Phipps said. “Unfortunately, the flow of credit is unnecessarily tight and is constraining the pace of the housing and job growth recoveries.”

According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage was a record low 4.41% in the fourth quarter, down from 4.45% in the third quarter; it was 4.92% in the third quarter of 2009.

“The healthier local housing markets are also experiencing favorable local employment conditions,” Yun said. Job growth is a major factor in price appreciation in metro areas such as the Washington, D.C., region, where the median existing single-family home price of $331,100 in the fourth quarter is 8.1% higher than a year ago; the Boston-Cambridge-Quincy area, at $346,300, up 4.2%; and Austin-Round Rock, Texas, at $190,300, up 4.1%.

Smaller metro areas sometimes see larger swings in price measurement depending on the types of properties that are sold in a given period. In such markets, full year price data can provide additional context.

In the condo sector, metro area condominium and cooperative prices—covering changes in 57 metro areas—showed the national median existing-condo price was $164,200 in the fourth quarter, which is 6.4% below the fourth quarter of 2009. Twenty-two metros showed increases in the median condo price from a year ago and 35 areas had declines; only 11 metros saw annual price gains in fourth quarter of 2009.

“Consumers in the hard hit regions of Nevada, Arizona and Florida were able to scoop up condos at absolute bargain basement prices,” Yun said. Median condo/co-op prices in affected metro areas include Las Vegas-Paradise at $60,700, Phoenix-Mesa-Scottsdale with a fourth quarter median of $68,900, and Miami-Fort Lauderdale-Miami Beach at $81,900.

Regionally, the median existing single-family home price in the Northeast increased 2.3% to $240,400 in the fourth quarter from a year earlier.

Existing-home sales in the Northeast rose 15.0% in the fourth quarter to a level of 797,000 but are 22.8% below the surge in the fourth quarter of 2009.

In the Midwest, the median existing single-family home price rose 0.5% to $139,200 in the fourth quarter from the same period in 2009. Existing-home sales in the Midwest jumped 18.3% in the fourth quarter to a pace of 1.02 million but are 25.4% below the cyclical peak one year ago.

In the South, the median existing single-family home price edged up 0.3% to $152,400 in the fourth quarter from the fourth quarter of 2009. Existing-home sales in the region rose 11.4% in the fourth quarter to an annual rate of 1.82 million but remain 17.8% below the surge in the fourth quarter of last year.

The median existing single-family home price in the West declined 2.9% to $214,400 in the fourth quarter from a year ago. Existing-home sales in the West jumped 19.9% in the fourth quarter to a level of 1.17 million but are 14.2% below the cyclical peak in the fourth quarter of 2009.

“A good portion of the sales activity in the West has been driven by investors taking advantage of discounted foreclosures, with high levels of all-cash transactions,” Yun explained.

The Economy

Initial claims for unemployment benefits fell by 36,000 to 383,000 for the week ending February 5, the lowest level since early July 2008. Continuing claims for the week ending January 29 fell by 47,000 to 3.88 million.

Retail sales rose 2.2% for the week ending February 5, according to the ICSC-Goldman Sachs index. On a year-over-year basis, retailers saw sales increase 2.5%.

Wholesalers increased their inventories 1% in December, following a 0.2% drop in November. Sales at the wholesale level rose 0.4% in December after a 1.9% increase in November.

The trade deficit increased 5.9% to $40.58 billion in December from $38.32 billion in November. Economists had expected a trade deficit of $40.5 billion. Exports rose 1.8% to $162.96 billion. Imports increased 2.6% to $203.55 billion.

The Reuters/University of Michigan consumer sentiment index for February's preliminary reading rose to 75.1 from 74.2 in January. It was the highest level since June 2010. The index hit a 30-year low of 55.3 in November 2008.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending February 4 fell 5.5%. Refinancing applications decreased 7.7%. Purchase volume fell 1.4%.

According to the Federal Reserve, consumer credit debt rose in December by $6.1 billion, or 3%, for a total credit level of $2.41 trillion. Revolving debt, which includes credit cards, increased by $2.3 billion, or 3.5%. Non-revolving debt, including loans for cars, rose by $3.8 billion, or 2.8%.

Upcoming on the economic calendar are reports on the housing market index on February 15, housing starts on February 16 and the index of leading economic indicators on February 17.

Understanding Your Home Loan"s Good-faith Estimate

Knowing how to read your good-faith estimate can help you save money on your home loan.

When you"re shopping for a mortgage loan, it"s sometimes hard to understand the jargon lenders use in the good-faith estimate explaining the costs and fees you"ll pay when taking out a mortgage.

When you apply for a mortgage, the lender has three days to give you a good-faith estimate of the fees and interest rate you'll pay, as well as other loan terms. Here are five tips for using the new three-page form to your advantage.

1. Know which fees can increase and by how much
In the past, lenders provided an estimate of the costs involved in getting your home loan, and if those costs rose by the time you closed on your home, tough luck. The good-faith estimate shows some fees the lender can't change, like the loan origination fee that you pay to get a certain interest rate (commonly called points) and transfer costs.

The form also lists the charges that can increase by up to 10%, like some title company fees and local government recording fees. The lender must cover any increase over that amount.

Finally, the good-faith estimate lists the fees that can change without any limit, such as daily interest charges.

2. Look for answers to basic loan questions
In the summary section, lenders explain your loan's terms in simple language. Can your interest rate rise? If so, a lender must spell out how much the rate can jump and what your new payment would be if it does. Can the amount you owe the lender increase, even if you make your payments on time? If it can, a lender must show you the potential increase.

3. Evaluate the "tradeoffs" on a loan
In the new "tradeoff table," you can ask lenders to provide details on the tradeoffs you can make in choosing among home loans. If you'd like the same loan with lower settlement charges, how will the interest rate change? If you'd like a lower interest rate, how much will your settlement charges increase?

4. Compare apples to apples with the shopping chart
Included on the good-faith estimate is space for you to list all the terms and fees for four different loans, so you can make side-by-side comparisons.

5. Know what's missing from the good-faith estimate
The form doesn't include key information, such as how much you'll reimburse the sellers for property taxes they've already paid on the home. It also doesn't tell you the amount of money you'll have to bring to the closing table.

Local Market Stats

Sales, year to date (Single-family, Santa Cruz County):

Prices (Single-family, Santa Cruz city):

Commercial rents:

For More InformationPlease contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate500 Seabright Avenue, Santa Cruz, California 95062Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com DRE #01105052

Understanding Landlord Insurance

2011-02-18T11:51:00.000-08:00

Turning your home into a rental or buying an investment property? Expect to pay up to 20% more for the right insurance policy to protect your property.

If you think a homeowners insurance policy will cover you when you turn your current home into a rental property or buy an investment property, think again.

Rental properties require their own type of coverage--landlord insurance, which is different than the homeowners policy you buy when you live in a house yourself. Landlord insurance protects you against losses from fire, lighting, falling trees, wind and hail, water damage, and injury to your tenants and their guests.

But it doesn't cover the renters' household goods. So encourage tenants to buy a renters policy to cover their stuff. You can even include a clause in your lease saying they have to buy renters insurance, so everyone is clear about what's insured and what's not.

Landlord insurance is expensive

You'll pay 15% to 20% more for a landlord insurance policy than you will for a homeowners policy on the same house--and even more if you offer short-term rentals. Start your policy shopping by calling the company that sold you your homeowners insurance, then check with an independent insurance agent selling commercial and business policies.

Ask how you can get discounts if you have fire prevention devices, burglar alarms, or multiple properties.

What a landlord insurance policy probably will cover:

Lightning, windstorm, hail, explosion, riot and civil commotion, smoke, falling objects, snow, ice, sleet, vandalism, sonic boom, sprinkler leakage, frozen pipes, water damage, burglary, volcanoes, and sinkholes.
Things that belong to you that stay at the property, like appliances, furniture, or lawn care equipment. Keep an inventory (http://www.houselogic.com/articles/compile-home-inventory-right-tools/) of what's on site.
Outbuildings, like sheds or garages, although this coverage will have its own limit (probably 10% of the overall insurance policy amount).
Costs to defend yourself against lawsuits filed by tenants or guests, as well as the costs awarded if you lose the case. Some policies cover medical bills for injuries; some don't.
Lost rental income if the property is damaged and you can't rent it.

What a landlord insurance policy probably won't cover:

The tenants' belongings.
Your rental property if it's vacant for more than 30 days. Seek an exemption in advance from your landlord insurance company as soon as you know the property is going to be vacant.
War and nuclear, biological, chemical, or radiological attacks.

Optional coverage you might want to buy:

Flood
Earthquake
Vandalism (if the policy you buy excludes it)
Pool and tennis court insurance
Liability for personal injury, wrongful eviction, wrongful entry, libel, and slander

Don't forget liability coverage

To cover yourself in case you lose a big court case filed by an injured tenant, buy an umbrella insurance policy (http://www.houselogic.com/articles/cost-umbrella-insurance-homeowners/) that gives you liability protection for $1 million to $5 million or more if you have a lot of assets to protect.

Don't file a claim unless you absolutely have to

There's a limit to how many claims (http://www.houselogic.com/articles/homeowners-insurance-to-claim-or-not-to-claim/) you can file before insurance companies start charging you more or canceling your policies. Claims can quickly add up as you buy more rental properties.

One time you always want to file a claim is when someone says they've been injured on your property. One claim you'll want to avoid filing: water damage for less than $10,000 because worries about mold growing in water-damaged properties will lead some insurers to immediately cancel your insurance policy.

More from HouseLogic

How to Correct Your Clue Insurance Report

Improve Your Insurance Score

Other web resources

Renters Insurance Brochure to Share with Your Tenants

Article From BuyAndSell.HouseLogic.com,
by: Dona DeZube, HouseLogic's News Editor, has been writing about real estate for over two decades. She lives in a suburban Baltimore 1970s rancher on a 3-acre lot shared with possums, raccoons, foxes, a herd of deer, and her blue-tick hound.

For More InformationPlease contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate500 Seabright Avenue, Santa Cruz, California 95062Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com DRE #01105052

Real estate sales rise in 49 states in Q4

2011-02-16T22:37:00.000-08:00

Yun added, “An improving housing market and job growth will go hand in hand.

The housing recovery will mean faster job growth.” He projects about 150,000 to 200,000 jobs will be added to the economy this year from an anticipated 300,000 additional home sales in 2011.

Regionally, the median existing single-family home price in the Northeast increased 2.3% to $240,400 in the fourth quarter from a year earlier.

Existing-home sales in the Northeast rose 15.0% in the fourth quarter to a level of 797,000 but are 22.8% below the surge in the fourth quarter of 2009.

“A good portion of the sales activity in the West has been driven by investors taking advantage of discounted foreclosures, with high levels of all-cash transactions,” Yun explained.

For More InformationPlease contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate500 Seabright Avenue, Santa Cruz, California 95062Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com DRE #01105052

Understanding Your Home Loan’s Good-faith Estimate

2011-02-16T22:34:00.000-08:00

1. Know which fees can increase and by how much

In the past, lenders provided an estimate of the costs involved in getting your home loan, and if those costs rose by the time you closed on your home, tough luck. The good-faith estimate shows some fees the lender can't change, like the loan origination fee that you pay to get a certain interest rate (commonly called points) and transfer costs.

The form also lists the charges that can increase by up to 10%, like some title company fees and local government recording fees. The lender must cover any increase over that amount.

Finally, the good-faith estimate lists the fees that can change without any limit, such as daily interest charges.

2. Look for answers to basic loan questions

In the summary section, lenders explain your loan's terms in simple language. Can your interest rate rise? If so, a lender must spell out how much the rate can jump and what your new payment would be if it does. Can the amount you owe the lender increase, even if you make your payments on time? If it can, a lender must show you the potential increase.

3. Evaluate the "tradeoffs" on a loan

In the new "tradeoff table," you can ask lenders to provide details on the tradeoffs you can make in choosing among home loans. If you'd like the same loan with lower settlement charges, how will the interest rate change? If you'd like a lower interest rate, how much will your settlement charges increase?

4. Compare apples to apples with the shopping chart

Included on the good-faith estimate is space for you to list all the terms and fees for four different loans, so you can make side-by-side comparisons.

5. Know what's missing from the good-faith estimate

The form doesn't include key information, such as how much you'll reimburse the sellers for property taxes they've already paid on the home. It also doesn't tell you the amount of money you'll have to bring to the closing table.

For More InformationPlease contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate500 Seabright Avenue, Santa Cruz, California 95062Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com DRE #01105052

The Economy

2011-02-16T22:31:00.000-08:00

Retail sales rose 2.2% for the week ending February 5, according to the ICSC-Goldman Sachs index. On a year-over-year basis, retailers saw sales increase 2.5%.

Wholesalers increased their inventories 1% in December, following a 0.2% drop in November. Sales at the wholesale level rose 0.4% in December after a 1.9% increase in November.

Upcoming on the economic calendar are reports on the housing market index on February 15, housing starts on February 16 and the index of leading economic indicators on February 17.

For More InformationPlease contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate500 Seabright Avenue, Santa Cruz, California 95062Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com DRE #01105052

Santa Cruz Real Estate and Community News

2010-11-18T16:19:00.001-08:00

Walter Stauss Real Estate and Community News • Cell: 831.246.4663 • Email: walter@831.com
To ensure you continue to receive emails from me, please add walter@831.com to your address book today.

NOVEMBER 2010

QUICK LINKS: Market statistics, charts, graphs | Search Listings | Newsletter | My Blog

Dried Flower & Succulent Wreath Sale at UCSC's Arboretum

Saturday, November 20, 10am - 4pm.
Sunday, November 21, 10am - 2pm.

The popular annual sale of hand-made, one-of-a-kind wreaths and other decorations for the holidays is a lovely way to gently usher in the holidays and participate in a very important fundraiser for the Arboretum. Bring a friend. Rain or Shine!

Plants (excluding cacti and succulents) will be 25% off during the Dried Flower and Succulent Sale Nov. 20 and 21. No special coupon is necessary. Just come to Norrie's Gift Shop 10am to 4pm either Saturday or Sunday, Nov. 20 and 21, and select from a lovely array of plants. Fall is a terrific time to plant, so you can let the winter rains water your plants!

Market Stats

Our local market continues to be confused, at least according to the stats (from Oct 09 to Oct 10):

	Oct 2010	Previous Month	Year-over Year
Median Price	$513,873	$535,000 (-3.9%)	$515,000 (-0.2%)
Average Price	$572,392	$680,397 (-15.9%)	$563,652 (+1.6%)
No. of Sales	112	139 (-19.4%)	180 (-37.8%)
Pending Properties	298	270 (+10.4%)	316 (-5.7%)
Active	748	821 (-8.9%)	795 (-5.9%)
Sale vs. List Price	96.0%	97.3% (-1.4%)	98.8% (-2.9%)
Days on Market	67	84 (-19.6%)	79 (-14.2%)

Call me if you're thinking about buying or selling and we can discuss the market and timing (cell: 831.246.4663). Read the entire newsletter online here.

Prices and Sales, Single-Family Residences, Santa Cruz:

Prices and Sales, Single-Family Residences, Aptos:

5 Foreclosure Myths

Foreclosures reign as one of today's top real estate trends. Homebuyers are looking for your guidance when it comes to dealing with this largely misunderstood process. Whether a buyer is holding out for "shadow inventory" or looking for an exceptional deal, you can help dispel myths and eliminate foreclosure confusion. Read these top 5 foreclosure myths, and make smarter real estate decisions in today's market.
Read more >

California pulls ahead of Florida in the race to recovery

As California begins the slow crawl back to economic stability, Florida remains stuck in the swampland of the economic downturn. The similar circumstances of the two states at the height of the Great Recession leave many questioning what differences led to a swifter recovery pace in the West. The more efficient foreclosure process in the Golden State is the key.
Read more >

HUD to Launch Pilot Program to Help Homeowners

HUD has announced a new pilot program that will offer credit-worthy borrowers low-cost loans to make energy-saving improvements to their homes. .
Read more >

Mortgage Rates Continue Record Slide

Freddie Mac reports that rates on fixed mortgages again fell to their lowest levels in decades this past week, with the average interest on 15-year loans dipping to 3.57 percent from 3.63 percent a week earlier, and the average interest for 30-year loans sliding to 4.17 percent from 4.24 percent. That is the lowest since 1971. The impact of the favorable borrowing costs is being muted somewhat, however, by a high rate of joblessness, foreclosures, and tight credit. Source: Boston Globe (11/12/10)

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Walter Stauss / Lifestyles Real Estate
500 Seabright Avenue
Santa Cruz, California 95062

Read the VerticalResponse marketing policy.

HUD to Launch Pilot Program to Help Homeowners

2010-11-18T15:13:00.000-08:00

RISMEDIA, November 10, 2010--HUD has announced a new pilot program that will offer credit-worthy borrowers low-cost loans to make energy-saving improvements to their homes. Backed by the Federal Housing Administration (FHA), these new FHA PowerSaver loans will offer homeowners up to $25,000 to make energy-efficient improvements of their choice, including the installation of insulation, duct sealing, doors and windows, HVAC systems, water heaters, solar panels, and geothermal systems.

HUD and FHA developed PowerSaver as part of the Recovery Through Retrofit initiative launched in May 2009. More homeowners are interested in making their homes energy efficient, according to industry forecasts. Yet options are still limited for financing home energy improvements, especially for the many homeowners who are unable to take out a home equity loan or access an affordable consumer loan. HUD today published a notice seeking the participation of a limited number of mortgage lenders in the two-year pilot program slated to begin in early 2011.

“PowerSaver provides lenders with a new product option to serve a potentially growing market,” said David H. Stevens, FHA Commissioner. “We believe there are a number of lenders who will be interested in working with us to help save energy and money for homeowners, while creating jobs and cutting greenhouse gas emissions.”

Lenders will be selected to participate in the PowerSaver pilot based on their capacity and commitment to provide affordable home energy improvement financing. Lenders will be required to serve communities that have already taken affirmative steps to expand home energy improvements. HUD will help lenders identify such markets – which exist in many suburban, rural and urban areas across the country.

PowerSaver loans will be backed by the FHA – but with significant “skin in the game” from private lenders. FHA mortgage insurance will cover up to 90 percent of the loan amount in the event of default. Lenders will retain the remaining risk on each loan, incentivizing responsible underwriting and lending standards. FHA will provide streamlined insurance claims payment procedures on PowerSaver loans. In addition, lenders may be eligible for incentive grant payments from FHA to enhance benefits to borrowers, such as lowering interest rates.

PowerSaver has been carefully designed to meet a need in the marketplace for borrowers who have the ability and motivation to take on modest additional debt to realize the savings over time from a home energy improvement. PowerSaver loans are only available to borrowers with good credit, manageable overall debt and at least some equity in their home (maximum 100% combined loan to value).

For More InformationPlease contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate500 Seabright Avenue, Santa Cruz, California 95062Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com DRE #01105052

California pulls ahead of Florida in the race to recovery

2010-11-18T15:08:00.001-08:00

As California begins the slow crawl back to economic stability, Florida remains stuck in the swampland of the economic downturn. The similar circumstances of the two states at the height of the Great Recession leave many questioning what differences led to a swifter recovery pace in the West. The more efficient foreclosure process in the Golden State is the key.

California completes the vast majority of its foreclosures through a nonjudicial foreclosure process, also known as trustee’s sales, and thus does not require foreclosures to be approved by a judge, as is the case in Florida. While court involvement may be helpful to those homeowners who didn’t fully understand the risk involved in the mortgage they acquired, the process is much more tedious and time consuming.

A faster method of clearing out foreclosures along with a more dynamic economy has provided California with the means to an upturn before Florida. Home prices in Los Angeles are up 10% from their bottom, San Diego is up 14% and San Francisco up 21%. Miami prices are up a measly 2% from their all-time low, and Tampa prices are still falling.

first tuesday take: Florida is to California what California is to the recovery which could be taking place, if lenders would either process their backlog of foreclosures, or acquiesce to forgiving principal indebtedness, i.e., cramming down loan balances for underwater homeowners. Just as judicial foreclosures extend Florida’s economic recovery in comparison to California’s economic recovery, lender foot-dragging extends California’s recovery.

For economic recovery to speed up, lenders need to quit refusing cramdowns and delaying foreclosures in hopes of retaining their solvency. California may be more efficient than other states, but that isn’t saying much. The process is certainly not without its blemishes, the biggest being lenders’ lack of participation in the effort to save our California economy and keep homeowners in their homes, something they will have no small interest in going forward when they will want to be everyone’s financial partner.

An efficient system for addressing delinquency is necessary, but not at the expense of fairness. Rather than halting foreclosure altogether, we must re-examine the laws governing lender oversight and fight for stricter legal recourse when lenders refuse to foreclose or borrowers experience unfair foreclosures in the future. After all, it is the owner who defaults and by doing so exercises his put option to require the lender to take the property, and nothing else.

For More InformationPlease contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate500 Seabright Avenue, Santa Cruz, California 95062Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com DRE #01105052

5 Foreclosure Myths

2010-11-18T15:05:00.000-08:00

Four years into the housing crisis, myths about foreclosure still litter the minds of even the smartest of real estate consumers. When it comes to matters as high stakes as your home, confusion can cost you thousands - or even your home. Whether you’re a buyer looking at foreclosures, a homeowner struggling to keep your home or a seller concerned making sure your home can compete with the foreclosed homes on your block, these foreclosure myths are prime for the busting, with no further ado.

Myth #1: Foreclosure happens fast. With unemployment and underemployment still affecting nearly 1 in every 4 Americans, no one is immune from fears that a pink slip might quickly turn into a foreclosure notice. According to NeighborWorks America, nearly 60 percent of families seeking foreclosure counseling cited a lost job or cut wages as the reason they were facing foreclosure.

While the Obama Administration's Home Affordable Programs haven't been nearly as effective as predicted in actually preventing foreclosures, they have had the effect of extending the foreclosure process for many families. Even though the legal process of foreclosure can happen in as few as 6 months in most states, it is currently taking much longer for the average foreclosure to get to completion. Recently, JP Morgan Chase revealed that their average borrower who loses a home to foreclosure has not made any payments in 14 months nationwide; 22 months in FLorida and 26 months in New York.

To be sure, some see this as a good, others view it as unnecessarily dragging out the overall market's recovery. Many insiders will point out that these delays in foreclosure may be calculated to save the banks the costs of owning and maintaining foreclosed homes, not to help homeowners. In any event, the fact that foreclosure does not happen nearly as fast, in many cases, as expected does give families who are temporarily down on their luck some extra time to try to get back on their feet and save their homes.

Myth #2: Buyers can’t get clear title or title insurance on foreclosed homes. When the foreclosure robo-signing scandal first hit, there was widespread concern that buyers would not be able to get clear title on foreclosed homes, because the former foreclosed owners might be able to come get their homes back when the improprieties in the bank's foreclosure documentation processes came fully to light. At the same time, several of the country's largest title insurance companies publicly balked at issuing policies on bank-owned homes until the issue was resolved. At this point, the banks claim they have revamped their processes, and all banks have stated that they have found not a single borrower whose home was repossessed without them having missed the requisite number of mortgage payments. Nevertheless, a number of governmental investigations are still in progress.

The fact is, buyers of bank-owned properties in nearly every jurisdiction are protected from later title attacks by foreclosed homeowners by the bona fide purchaser rule, under which courts would prefer to simply award cash damages to be paid by the culpable bank to a wrongfully foreclosed-on homeowner, rather than reversing the sale or ownership to the new, innocent buyer. Additionally, the title insurers have now changed their tune and restarted issuing insurance policies on bank-owned homes which protect buyers' interests, after working with the banks for them to take responsibility in the event a former homeowner prevails in a wrongful foreclosure suit.

While there are still many intricacies of title to be resolved for foreclosure buyers who purchase homes at trustee sales and auctions, or for cash buyers who often went without title insurance in the past, on the average, Trulia-listed, bank-owned property purchased with an average mortgage and title insurance, the chances a buyer's title will later be successfully challenged by the foreclosed homeowner on the basis of robo-signing? Exceedingly slim.

Myth #3: Buyers should wait for the shadow inventory to be released. Many a buyer, discouraged with the homes they see on the the form in their price range, has decided to sit still and wait for the banks to release for sale what is called their "shadow inventory" - rumored to be anywhere from 4 to nearly 6 million homes that have already been foreclosed, but not listed for sale, or will be foreclosed in the near future. The fact is, to the extent that the banks have acknowledged the existence of a pool of homes they own but are not selling, they have expressed that their reasoning for holding the homes off the market is to avoid flooding the market and driving home values down any further. For that reason, buyers should not expect to see a massive influx of these shadow homes onto the market anytime soon - if ever.

The banks' current modus operandi is that as they sell a home, the replace it with another home in that market - if they sell 50 homes in a town that month, they'll put another 50 on the next. So, don't hold your breath waiting for a fabulous new flood of homes. Instead, set up a Trulia alert to notify you when homes that fit your search criteria come on the market, and be ready to call your agent and go visit any and every one that looks like it might be a good fit.

Myth #4: If you’re looking for a deal, you’re looking for a foreclosure. Despite what they may say, no buyer’s heart's fondest desire is to buy a foreclosure. But almost every buyer dreams of buying a great home - and getting a great deal on it. Many people think that to get a great value on their home on today's market, it means they must buy a foreclosure. As a result, the value and other advantages of buying an individually-owned home on today's market are frequently overlooked. Individual sellers with homes on the market right now are generally quite motivated, and understand that their homes are competing with discounted short sales and foreclosed homes. Many of these sellers are slashing prices in an effort to get them sold - the most recent Trulia Price Reduction Report revealed that 27 percent of homes on the market across the country have had at least one price reduction. Now that's what I call a sale!

Further, individual owners are often much more negotiable on a wide range of contract terms than a bank which owns a foreclosed home. You can work with non-bank owners on things like repairs, closing dates, choice of escrow provider, closing costs and even included personal property much more flexibly than you can when the bank is on the other side of the bargaining table. On top of that, many individually-owned homes are in pristine, move-in condition; that is much rarer with foreclosures. So, don't underestimate the value of the deal you might be able to get on a non-foreclosed home. Just get clear on what you can afford and look at all the homes that are available in that price range, without discriminating against non-foreclosures.

Myth #5: Having a foreclosure on your credit history means it'll take years and years before you can buy again. One of the most Frequently Asked Questions in the Trulia Voices Community by homeowners who are facing or have just lost a home through foreclosure is how long it will take before they'll be able to buy again. Until recently, the standard wisdom was that 5 years, minimum, would have to have elapsed between the foreclosure and the new home purchase. Now, though, borrowers can obtain an FHA loan with the low, 3.5 minimum down payment requirement as soon as 3 years following a foreclosure. To do so, though, all your other ducks must be in a row.

Post-foreclosure buyers need a credit score of 620-640 to qualify for an FHA loan; higher for a non-FHA loan - given that the foreclosure itself usually dings anywhere from 100-150 points off the credit score (not necessarily counting a full year or more of pre-foreclosure missed payments), former homeowners who want to buy again need to ensure they have no other late payments or credit dings after they lose thier home. You must have clean credit with no derogatory marks like late credit card payments following the foreclosure, and you may also be required to document 12 to 24 months straight of on-time rent payments after the foreclosure.

Further, the bank may impose a lower debt-to-income ratio on post-foreclosure borrowers than on borrowers who have not had a foreclosure, in an effort to keep your mortgage payments low, keep you from overextending yourself and boost the chances you'll be a successful homeowner over the long-term this time around. The bank will also need to see 2 years of continuous employment history in the same field, and documentation that you meet other loan qualification requirements.

For More InformationPlease contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate500 Seabright Avenue, Santa Cruz, California 95062Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com DRE #01105052

Santa Cruz Real Estate and Community News

2010-03-25T11:17:00.001-07:00

Walter Stauss Real Estate and Community News • Cell: 831.246.4663 • Email: walter@831.com
To ensure you continue to receive emails from me, please add walter@831.com to your address book today.

MARCH 2010

QUICK LINKS: Market statistics, charts, graphs | Search Listings | Newsletter | My Blog

Right now, our local market is fickle. Many properties are getting multiple offers, but many are staying on the market longer. The median price is up 28% from last year, but down 1.5% from last month. Inventory is down from last year, but up from last month. Call me if you're thinking about buying or selling and we can discuss the market and timing (cell: 831.246.4663). Read the entire newsletter online here.

Prices and Sales, Single-Family Residences, Santa Cruz:

Prices and Sales, Single-Family Residences, Aptos:

Trends At a Glance	Feb 2010	Previous Month	Year-over-Year
Median Price	$492,500	$500,000 (-1.5%)	$382,500 (+28.8%)
Average Price	$528,807	$578,834 (-8.6%)	$483,843 (+9.3%)
No. of Sales	84	90 (-6.7%)	96 (-12.5%)
Pending Properties	313	257 (+21.8%)	223 (+40.4%)
Active	519	470 (+10.4%)	907 (-42.8%)
Sale vs. List Price	97.3%	98.8% (-1.5%)	96.4% (+1.0%)
Days on Market	87	71 (+23.5%)	89 (-1.4%)

Federal Program to Encourage Short Sales

In a new approach to the foreclosure crisis starting April 5, the government's mortgage modification program will encourage home owners to sell at loss and offer $1,500 in "relocation assistance."
Read more >

Home Owners Fight Property Tax Increases

While municipalities try to replace falling revenue by raising property tax rates, home owners throughout the country are protesting their increased assessments.
Read more >

Fewer Sellers Are Cutting Prices

Bidding wars are emerging on lower end properties, according to Trulia.com.
Read more >

Mortgage Fraud Investigations Are Climbing

Loan modification scams drove the record number of lawsuits in the fourth quarter of 2009.
Read more >

Graywater Irrigation Systems

Graywater is defined as all household wastewater except for that which is used in toilets. The amount of graywater that we use is considerable. With only a few modifications to your plumbing and a switch to biodegradable detergents and soaps, graywater can be safely used to water the plants in your garden. Seminar on March 27th.
Read more >

Highway 1/17 Interchange Landscaping to Start

Caltrans next month will begin planting vegetation along the Highway 1/17 Merge Lanes Project
Read more >

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Walter Stauss / Lifestyles Real Estate
500 Seabright Avenue
Santa Cruz, California 95062

Read the VerticalResponse marketing policy.

2010-03-24T16:42:00.000-07:00

Caltrans next month will begin planting vegetation along the Highway 1/17 Interchange

Details include:

3,700 new plants
670 trees, two-thirds of which will be native coast redwoods. Other trees include bigleaf maple, Catalina ironwood, Chinese pistache, western hemlock and white alder.
1,700 vines will cover both sides of the soundwalls, including Boston ivy and creeping fig.
Shrubs will include western redbud, Catalina cherry, Ray Hartman ceanothus, Pacific wax myrtle, lemonade berry and red escallonia.
7 acres will be seeded with native grasses and wildflowers.

SOURCE: Santa Cruz County Regional Transportation Commission

For More Information

Please contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com DRE #01105052

Graywater irrigation systems

2010-03-24T16:32:00.000-07:00

Graywater is defined as all household wastewater except for that which is used in toilets. The amount of graywater that we use is considerable. With only a few modifications to your plumbing and a switch to biodegradable detergents and soaps, graywater can be safely used to water the plants in your garden.

Graywater systems of this type do not require a permit and are legal within the city and county of Santa Cruz.

Graywater systems not only decrease the burden on septic tanks $500 per pumping and leach fields, they also serve to slow the contamination of groundwater and aquifers.

Consider these statistics: 30 to 60 percent of household water is used for landscape irrigation. A top loading washing machine uses 30 to 50 gallons per load while front-loading machine use 10 to 20 gallons per load older models use more water than newer models.

Showers use a minimum of 25 gallons for a 10 minute shower that figure assumes you are using a low flow shower head. Taking a bath uses 30 to 40 gallons. Kitchen sinks use 5 to 15 gallons per person per day and bathroom sinks use 1 to 5 gallons per person per day.

When these numbers are multiplied for a family of five, over a period of a week, we are talking about thousands of gallons of water going to waste.

A graywater workshop put on by Mama Earth Matters has been scheduled for March 27. It features Laura Allen of Bay Area Greywater Action.

This workshop is designed to instruct the do-it-yourselfer on how to reroute the water from the household washing machines into the garden.

Even areas that are slightly above the elevation of the washing machine can be irrigated, since washing machines are equipped with a pump that gives the water about a five-foot lift. Laundry-to-landscape systems are a practical and simple first step to using wastewater for irrigation.

For one, diverting laundry water doesn't usually require having to go under the house to redo the plumbing. Most of the time it is only necessary to pull out the washing machine and run one section of ¾-inch PVC outside, to make the necessary adaptations. The other good thing about the laundry-to-landscape system is that it doesn't mandate that everyone in your household must make an immediate switch over to organic soaps and products.

Human nature is such that old habits die slowly and expecting everyone to change overnight is not always workable. If suddenly altering the hygienic habits of your teenage kids or your in-laws seems like a daunting prospect, converting your washing machine discharge might seem a good place to start.

The key components of the laundry-to-landscape system are a diverter valve also called a three-way valve which either sends the water into the existing plumbing, or out into the landscape. Then it is necessary to install an antisiphon valve, which prevents water from being sucked out of your washing machine or running back into it.

Somewhere between the antisiphon valve and the garden, it is suggested that a tee be installed with a female garden hose connection. This enables the occasional flushing of the system to clear it of lint and debris.

The final component is a network of distribution tubes similar to drip systems, which takes the water to the individual plants. Digging water retention basins for larger plants and trees, then mulching are also important steps to this system.

For those rural homes using septic systems, the reasons to install a graywater diversion system are especially compelling. Graywater puts an immense strain on leach fields, and helps to max out your septic tank. Diverting your graywater into your landscape helps alleviate this problem and actually leads to less contamination of groundwater.

In fact, the ecosystem of a mulch basin around a plant makes for a very effective wastewater treatment system. and wastewater is filtered more effectively when released on the surface of the ground rather than under it.

The microbes in the soil convert organic impurities in the wastewater into nutrients, which are then available for uptake by the roots of the plants. The result is water that is purer than what is discharged from a sewage treatment plant.

Backyard Graywater Workshop -- Laundry to Landscape Oasis
WHEN: 11 a.m. to 4 p.m. March 27
Cost: Sliding scale $35-$75
Where: Maha Mandala Homestead, 2591 Mattison Lane, Live Oak
Details: 464-9664

For More Information

Please contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com DRE #01105052

Mortgage Fraud Investigations Are Climbing

2010-03-24T16:18:00.000-07:00

State and federal investigators are cracking down on mortgage scammers, pushing arrests and civil actions to record levels.

MortgageDaily.com tracked 134 mortgage-related lawsuits in the fourth quarter of 2009, an increase of 76 cases compared to the third quarter. There were 46 cases in fourth quarter 2008.

"The upward trend in related fraud litigation is likely to continue," predicted Patrick McManemin, a partner in Patton Boggs, a law firm that specializes in mortgage litigation, because more states are aggressively enforcing related laws.

Source: MortgageDaily.com (03/08/2010)

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Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com DRE #01105052

Home Owners Fight Property Tax Increases

2010-03-24T16:04:00.000-07:00

Taxpayers in high property-tax states all over the country are fighting back, including packing up and moving to states where the property tax burdens are lower.

They find it particularly galling that tax bills continue to rise as home values decline, a common phenomenon. A recent survey by the National League of Cities reported that 25 percent of municipalities raised property taxes in 2009 to replace declining revenues.

In New Jersey and New York, voters threw incumbents they viewed as tax-and-spend officials out of office. In Michigan, there have been so many tax appeals that the tax court has 24,000 pending cases.

Some observers like Ted Lanzaro, a certified public accountant who handles taxes for clients in Connecticut, predict that people are running out of savings and some are simply going to stop paying taxes.

Source: The Wall Street Journal, M.P. McQueen (03/06/2010)

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Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
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Fewer Sellers Are Cutting Prices

2010-03-24T14:58:00.000-07:00

The prices on 19 percent of homes for sale as of March 1st have been reduced at least once, the lowest percentage in the last year, according to Trulia.com.

In October and November, when the market was feeling the effect of the tax credit, 26 percent of sellers cut their asking prices.

“Better pricing is leading to less time on the market, less price reduction, and in a lot of markets we're starting to see bidding wars on lower end properties," said Ken Shuman, spokesperson for Trulia.

Trulia calculates that these U.S. cities experienced the biggest decline in price reductions from Feb. 1, 2010 to March 1, 2010:

• Charlotte, N.C.
• Colorado Springs, Colo.
• Houston
• Raleigh, N.C.
• Jacksonville, Fla.
• Albuquerque, N.M.
• Tucson
• Omaha, Neb.
• San Antonio, Texas

Source: Trulia.com (03/09/2010)

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Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com DRE #01105052

Federal Program to Encourage Short Sales

2010-03-24T10:53:00.001-07:00

Beginning April 5, the Obama administration will encourage delinquent borrowers to avoid foreclosure and instead give up their homes in short sales by streamlining the process.

The program will offer a cash payment to the home owner, as well as to the servicer and second-lien holder; and protect borrowers from future lender lawsuits for the unpaid mortgage balance.

To curtail fraud, lenders will have to consult real estate practitioners to assess home value and minimum acceptable offer; they then must accept any offer that is equal to or higher than that.

Source: The New York Times, David Streitfeld (03/08/10)

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Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
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Happy Valentine's Day

2010-02-14T14:44:00.001-08:00

Happy Valentine's Day

view ecard

Happy Valentine's Day!!!

Walter Stauss, Realtor
831.420.2100
walter@831.com

Santa Cruz Real Estate & Community News, December 2009

2010-02-01T15:13:00.001-08:00

Walter Stauss • Cell 831.246.4663 • walter@831.com • Lifestyles Real Estate • DRE 01105052

QUICK LINKS: Market statistics, charts, graphs | Search Listings | Newsletter | My Blog

NOTE: Some email programs have trouble displaying styled emails, so I've switched to this simpler
format. Click here to see the entire newsletter, including charts and graphs.

Santa Cruz Real Estate News

Median Home Price Ends Year at Highest Level Since August 2008 [more]

Top 10 metro foreclosure rates [more]

2010 California Real Estate Market Forecast [more]

Tax Credit Update [more]

30-Year Mortgage Rates Slide Below 5% [more]

December Sales Statistics [more]

10 Cities Where It's Smarter to Buy [more]

Deal of the Month: Hawaii![more]

Green Corner: Allergic to Off-Gassing?? [more]

Santa Cruz Community News

Davenport’s Cement Plant to Close [more]

Guided Elephant Seal Walks [more]

Referrals

If you know anyone who is thinking about buying or selling real estate in Santa Cruz County,
please let me know via email or call me at 831.246-4663 Thank you!

Feedback

I welcome your comments about this issue and ideas for future ones. Send me email

Walter Stauss • Cell 831.246.4663 • walter@831.com • Lifestyles Real Estate • DRE 01105052

Deal of the Month: Quintessential Boulder Creek income property

2009-12-19T15:03:00.002-08:00

Well-maintained 6 individual detached units with backyards overlooking river.

Fantastic location: walk to everything, coffee shops, stores, etc. Solid income=cap rate of 6.99!Asking $689,000

For more info, call me (831.246.4663) or email me (walter@831.com).

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Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com DRE #01105052

West Marine founder protects 92 acres from development

2009-12-19T15:03:00.001-08:00

Nearly 100 acres of farmland near in Watsonville has been permanently set aside for agriculture with an easement donated by West Marine founder Randy Repass and wife Sally-Christine Rodgers.

The land is the latest property to be protected through the Land Trust of Santa Cruz County, which has acquired acreage or conservation easements on more than 1,000 acres in the Pajaro Valley.

"This one in particular is right on the urban boundary," said Land Trust spokesman Stephen Slade. "It's a very important one, basically reinforcing the Measure U growth boundary." Raspberries and strawberries currently grow on the property.

Measure U, passed by Watsonville voters in 2002, spelled out where the city could grow through 2022.

Land Trust Executive Director Terry Corwin said she hopes other property owners will follow the lead of Repass and Rodgers and donate development rights. That way the land stays in agriculture, in private hands and on the tax rolls. In return, the contributor gets a tax reduction.

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Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com DRE #01105052

GREEN CORNER: Easy Financing for Energy-Efficient Home Projects Coming Soon?

2009-12-19T15:02:00.002-08:00

Tuesday, the county Board of Supervisors committed to making home efficiency upgrades more affordable for local residents. The board signed on to a statewide program that would allow county homeowners to finance such work through their property taxes.

Under the program, state funds would finance the purchase of permanent energy improvements ranging from solar panels to new heating and cooling systems to more efficient windows and insulation. Homeowners would pay the state back over a 20- to 30-year period as part of their property taxes, which stay with the house even if it sells.

The interest rate charged by the state is expected to be between 7.5 and 9.5 percent, depending on what the market yields when the financing commences, likely in June. The rates are expected to be competitive with local credit unions.

The state program, known as CaliforniaFIRST, would provide the financing for county homeowners as well as pay for local administrative costs, said county planner Erik Schapiro.

CaliforniaFIRST hinges on a final decision by the California Energy Commission to put federal stimulus funds to work for the financing. The program is intended to have no direct cost or risk to participating cities and counties. Program costs will be included in the financing package. For more information: http://www.renewfund.com/node/63

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Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com DRE #01105052

Upcoming Events

2009-12-19T15:02:00.001-08:00

Santa Cruz Holiday Lights Train

December 18-23 (5 pm, 6:30 pm, 8 pm)

Trains at 5:00, 6:30 & 8:00pm Departs from Beach Boardwalk, 400 Beach St. Santa Cruz 831.335.4484 Ride a holiday train through Victorian Santa Cruz as you sip hot spiced cider, listen to carolers, meet Santa & Mrs. Claus.

Santa Cruz Fungus Fair

January 9-10, 10am-5pm

Louden Nelson Center, 301 Center St., Santa Cruz 831.420.6115 Enjoy fabulous mushroom displays, delicacies and mouth-watering cooking demonstrations. Bring mushrooms for identification. www.santacruzmuseums.org

Guided Elephant Seal Walks

December 15 through March 31

By reservation only. Año Nuevo State Reserve, Hwy 1, Pescadero 800.444.4445 Winter is the prime season to view thousands of elephant seals, including newborn pups, their mothers, and bulls. www.parks.ca.gov/?page_id=52

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Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com DRE #01105052

Median Price Jumps 25.9% Year-Over-Year

2009-12-19T15:01:00.000-08:00

The median price for single-family, re-sale homes gained 6.2% in November from October. For the third month in a row, the median price was up year-over-year: 25.9%.

Sales of single-family, re-sale homes were down 18% from October, but were up 43.9% year-over-year. Year-to-date, home sales are up 17.6%.

Inventory of single-family, re-sale homes fell for the sixteenth month in a row in November: down 49.1% year-over-year.

Pending sales dipped from October, down 15.1%, but were up 66.3% year-over-year.

Days of Inventory rose twelve days to 114 days. In a balanced market, the supply of homes is usually around five to six months. For condos, the indicator dropped 32 days to 171 days.

The sales price to list price ratio dropped 1.4 points to 97.4%.

Condo sales rose 8.3% month-over-month, and were even compared to last November. Year-to-date, condo sales are up 2.7%.

The median price for condos rose 4.3% from the month before, and was up 20.6% compared to last November. Don’t read too much into this as the small number of condo sales each month exaggerates the swings.

Condo inventory was down 34.5% year-over-year.

Pending sales for condos was down 1.3% from October, but up 68.9% year-over-year.

The real estate market is very hard to generalize. It is a market made up of many micro markets. For complete information on a particular neighborhood or property, call me.

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Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com DRE #01105052

Nine Consecutive Gains for Pending Home Sales

2009-12-19T15:00:00.000-08:00

Pending home sales have risen for nine months in a row, a first for the series of the index since its inception in 2001, according to the National Association of Realtors®.

The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in October, increased 3.7 percent to 114.1 from 110.0 in September, and is 31.8 percent above October 2008 when it was 86.6. The rise from a year ago is the biggest annual increase ever recorded for the index, which is at the highest level since March 2006 when it was 115.2.

Lawrence Yun, NAR chief economist, said home sales are experiencing a pendulum swing. “Keep in mind that housing had been underperforming over most of the past year. Based on the demographics of our growing population, existing-home sales should be in the range of 5.5 million to 6.0 million annually, but we were well below the 5-million mark before the home buyer tax credit stimulus,” he said. “This means the tax credit is helping unleash a pent-up demand from a large pool of financially qualified renters, much more than borrowing sales from the future.

The PHSI in the Northeast surged 19.9 percent to 100.2 in October and is 44.2 percent above a year ago. In the Midwest the index rose 11.6 percent to 109.6 and is 36.6 percent higher than October 2008. Pending home sales in the South increased 5.4 percent to an index of 115.4, which is 31.6 percent above a year ago. In the West the index fell 11.2 percent to 127.7 but is 21.9 percent above October 2008.

“As inventories continue to decline and balance is gradually restored between buyers and sellers, we should reach self-sustaining housing conditions and firming home prices in most areas around the middle of 2010. That would mean broad wealth stabilization for the vast number of middle-class families,” Yun said.

# # #

*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity from 2001 through 2004 parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales.

Existing-home sales for November will be reported December 22 and the next Pending Home Sales Index will be on January 5; release times are 10 a.m. EST.

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Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com DRE #01105052

FHA Mortgage Insurance Program Important to Housing Market & Recovery

2009-12-19T14:59:00.000-08:00

NAR President Vicki Cox Golder told a congressional panel that the FHA program is fiscally sound with responsible underwriting, and needs enhancements, not radical reform. She urged Congress and the administration to tread lightly before making changes to a program that has a profound impact on economic recovery and serves the nation’s families.

“With the collapse of the private mortgage market, the importance of the FHA mortgage insurance program has never been more apparent. Thus far in 2009, nearly 80 percent of all FHA insured purchasers are first-time homebuyers. And if you take a closer look at the numbers, you’ll see that program is doing exactly what it was designed to do—make more affordable mortgage financing available to homeowners . . . without FHA mortgage insurance, our housing market could never start to recover,” Golder said.

FHA’s decline in reserves is in part a reflection of a projected change in home price values, and is not tied to excessive increases in defaults or unsound underwriting practices, she said. In citing the recent FHA audit, Golder said, “If FHA makes no changes to the way it does business today, the reserves will actually exceed 2 percent in the next several years. FHA has sufficient reserves.”

FHA cash reserves and capital reserves give the agency combined assets of $30.4 billion—enough to pay all claims over a 30-year period. Most banks are required to hold reserves sufficient to pay only one year of claims.

NAR strongly opposes H.R. 3706, the “FHA Taxpayer Protection Act of 2009,” which would increase FHA’s downpayment requirement. The bill would not add anything to FHA reserves but would put homeownership out of reach for many creditworthy borrowers.

Golder also thanked Chairman Barney Frank (D-Mass.) and the committee for passing legislation to extend the higher loan limits through 2010, but urged the committee to make the higher limits permanent. “The higher limits are not just for a few states with high median prices. There are currently 245 counties in 28 states that have high cost limits—this is a national issue,” she said.

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Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com DRE #01105052

Mortgage Rate Outlook

2009-12-19T14:55:00.000-08:00

Dec. 4, 2009 -- Mortgage rates have been easing a bit lately due to both softer demand for credit and, most recently, some flight-to-quality purchases of US Treasuries related to financing troubles at Dubai World, a state-backed corporation which asked to forego payments on its outstanding debts for at least six months. That is simply more fallout from the global financial crisis.

These troubles first came to light last Thursday. After initial concern, it seems Dubai World's effect on global finance markets is contained for the most part, so some of that move of cash into a safer haven has begun to unwind.

Some surprising economic news came late in the week, and if the again-influential yield on the 10-year Treasury is any indication, mortgage rates seem certain to rise in the days ahead. The 10-year Treasury rose from a Tuesday low of 3.21% to an estimated 3.48% by Friday's market close; mortgage rates haven't yet fully reflected all of that move, but from Tuesday's low of 4.83%, the all-important 30-year Conforming interest rate had risen to 5.06% by Friday.

For the week, HSH.com's FRMI, our overall average for mortgage rates (including conforming, jumbo and agency jumbo), fell by five basis points, closing the at 5.24%. Both conforming and jumbo rates declined this week, with conforming 30-year FRMs slipping to a 4.91% average. At the same time, the overall average for 5/1 Hybrid ARMs fell five-basis points, landing at 4.56% for the week. Some aggressively-priced 5/1 ARMs can now be found in the market with rates starting as low as the mid-3% range.

As you know, fluctuations in mortgage rates are a regular recurrence, and that rates rise much more quickly than they fall. This being the case, we always advise borrowers that when they've got a mortgage in place that makes their purchase or refinance deal work, they should lock in the interest rate, rather than trying to guess at any kind of bottom in the market.

30-year FRMS holding tightly to either side of a 5% threshold is a great deal, whether it's upper 4% or low 5% on the bottom line. Interest rates will kick a little higher next week, probably all the way back to (yawn) early November levels, when they were only outstanding.

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Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com DRE #01105052

Santa Cruz Real Estate & Community News, November 2009

2009-11-23T09:32:00.001-08:00

Walter Stauss • Cell 831.246.4663 • walter@831.com • Lifestyles Real Estate • DRE 01105052

QUICK LINKS: Market statistics, charts, graphs | Search Listings | Newsletter | My Blog

NOTE: Some email programs have trouble displaying styled emails, so I've switched to this simpler
format. Click here to see the entire newsletter, including charts and graphs.

Santa Cruz Real Estate News

Median Price Up Year-over-Year for second month in a row. [more]

Sales of single-family, re-sale homes were up, year-over-year, by 22.9%.
Year-to-date, home sales are up 15.5%. [more]

Pending sales were up 103% year-over-year. [more]

Federal Tax Credit Passes. [more]

Mortgage Rate Outlook. [more]

October Sales Statistics. [more]

Record Streak Continues for Pending Home Sales. [more]

Green Corner: Green Building to Support Nearly 8 Million U.S. Jobs through 2013. [more]

Santa Cruz Community News

Tandy Beal's MIXED NUTZ! The Nutcracker Remixed. [more]

Recycle Your Electronic Junk! [more]

Santa Cruz Holiday Lights Train. [more]

California's Health Ranking. [more]

Surfin' Santa at Capitola's Main Beach. [more]

Referrals

If you know anyone who is thinking about buying or selling real estate in Santa Cruz County,
please let me know via email or call me at 831.246-4663 Thank you!

Feedback

I welcome your comments about this issue and ideas for future ones. Send me email

Walter Stauss • Cell 831.246.4663 • walter@831.com • Lifestyles Real Estate • DRE 01105052

Santa Cruz Real Estate & Community News, October 2009

2009-10-23T10:02:00.001-07:00

Walter Stauss • Cell 831.246.4663 • walter@831.com • Lifestyles Real Estate • DRE 01105052

QUICK LINKS: Market statistics, charts, graphs | Search Listings | Newsletter | My Blog

NOTE: Some email programs have trouble displaying styled emails, so I've switched to this simpler
format. Click here to see the entire newsletter, including charts and graphs.

Santa Cruz Real Estate News

Median Price at Highest Level Since August 2008. [more]

Sales of single-family, re-sale homes were up, year-over-year, by 2%;
Year-to-date, home sales are up 14.5%. [more]

Pending sales were up 93.2% year-over-year. [more]

C.A.R. Survey on Impact of Federal Tax Credit. [more]

Mortgage Rate Outlook. [more]

September Sales Statistics. [more]

Record Streak Continues for Pending Home Sales. [more]

Green Corner: How Dimmer Switches Save Energy. [more]

Santa Cruz Community News

Update on Highway 1 Widening. [more]

Pigeon Point Light Station Anniversary Celebration. [more]

Santa Cruz Holiday Lights Train. [more]

Surfin' Santa at Capitola's Main Beach. [more]

Referrals

If you know anyone who is thinking about buying or selling real estate in Santa Cruz County,
please let me know via email or call me at 831.246-4663 Thank you!

Feedback

I welcome your comments about this issue and ideas for future ones. Send me email

Walter Stauss • Cell 831.246.4663 • walter@831.com • Lifestyles Real Estate • DRE 01105052

Santa Cruz Real Estate & Community News, September 2009

2009-09-21T18:38:00.001-07:00

Walter Stauss • Cell 831.246.4663 • walter@831.com • Lifestyles Real Estate • DRE 01105052

SEPTEMBER 2009

Santa Cruz Real Estate and Community News

Highlights:

Inventory declined in August, while pending sales continued to rise.

Home sales up 3.2% year-over-year. Year-to-date, home sales up 16.6%.

The median price for homes fell 7.5% from July, and was down 13.4% year-over-year.

Statistics, charts, graphs

Search Listings

Newsletter

My Blog

Annual Monte Foundation Fireworks

Open Studio Art Tour Dates

Arboretum Fall Plant Sale

More info.

I welcome your comments about this issue and ideas for future ones. Send me email

If you know anyone who is thinking about buying or selling real estate in Santa Cruz County, please let me know via email or call me at 831.246-4663 Thank you!

In this issue: Inventory Declines, While Pending Sales Continue to Rise | Mortgage Rate Outlook | 10 Most-Affordable, 10 Least-Affordable Areas in the Country

To read the on-line version of this newsletter with chart and graphs, and the complete articles, go to my website (click on NEWSLETTER).

Market News

Inventory Declines, While Pending Sales Continue to Rise

Inventory of single-family, re-sale homes fell for the thirteenth month in a row in August, and it is now down 43.1% year-over-year. [More]

Mortgage Rate Outlook

Mortgage rates ended summer on a softer note, drifting back to late-spring levels. A pause (at least) in stock markets after a strong summer run saw some investors shift cash from equities into less-risky investments to lock in gains, driving influential Treasury yields lower. [More]

Pending Home Sales on a Record Roll

Contract activity for pending home sales has risen for six straight months, a pattern not seen in the history of the index since it began in 2001, according to the National Association of Realtors®. [More]

Real Estate News

Credit Market Makes Economists Nervous

Interest rates are low and home prices are down, but banks continue to be stingy with loans.

At the height of the housing boom, seven out of 10 mortgages were approved. At the end of 2008, only five out of 10 got the green light. During the boom years, homebuyers could qualify for the cheapest rates with a credit score of 660. Today, they need 740 or better. [More]

10 Most-Affordable Areas in the Country:

1. Kokomo, Ind.
2. Lansing-East Lansing, Mich.
3. Mansfield, Ohio
4. Elkhart-Goshen, Ind.
5. Lima, Ohio
6. Bay City, Mich.
7. Indianapolis-Carmel, Ind.
8. Saginaw-Saginaw Township North, Mich.
9. Youngstown-Warren-Boardman, Ohio-Pa.
10. Canton-Massillon, Ohio

Not really a surprise there, but the least-affordable list is interesting. Find it [More]. Is Santa Cruz on the list?

Green Corner

Say No to That
Extra Phone Book
19 million trees are felled to produce over 500 million phone books printed in the United States each year. Not only is this a tremendous waste of resources, pitched phone books take up a huge amount of landfill space, 268,000 cubic yards, or the equivalent load of 6,700 large dumpsters. [More]

Credit Market Makes Economists Nervous

2009-09-21T17:41:00.000-07:00

Credit Market Makes Economists Nervous
Interest rates are low and home prices are down, but banks continue to be stingy with loans.

At the height of the housing boom, seven out of 10 mortgages were approved. At the end of 2008, only five out of 10 got the green light. During the boom years, homebuyers could qualify for the cheapest rates with a credit score of 660. Today, they need 740 or better.

"Banks are going to be in a defensive posture for several years. Most borrowers can't meet their criteria," says Christopher Whalen, managing director at research firm Institutional Risk Analytics.

Consumers cut back borrowing by $21.6 billion from June to July, the biggest drop since the Federal Reserve began keeping records in 1943. That made some analysts nervous.

The reduction in borrowing could slow the economic recovery, says David Olson, president of Access Mortgage Research & Consulting.

"If they cut back, it would be catastrophic," Olson says. "We could have a second downturn."

Source: The Associated Press, Stevenson Jacobs (09/17/2009)

For More Information

Please contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com DRE #01105052

Most Affordable, Least Affordable

2009-09-21T17:24:00.000-07:00

In its annual survey of most- and least-affordable housing markets, BusinessWeek quoted a number of experts who believe that for many people, the current low interest rates and low housing prices have combined to offer a once-in-a-lifetime opportunity to buy a home.

10 Most-Affordable Areas in the Country:

1. Kokomo, Ind.

2. Lansing-East Lansing, Mich.

3. Mansfield, Ohio

4. Elkhart-Goshen, Ind.

5. Lima, Ohio

6. Bay City, Mich.

7. Indianapolis-Carmel, Ind.

8. Saginaw-Saginaw Township North, Mich.

9. Youngstown-Warren-Boardman, Ohio-Pa.

10. Canton-Massillon, Ohio

10 Least-Affordable Areas in the Country:

1. New York-White Plains, N.Y.-Wayne, N.J.

2. San Francisco-San Mateo-Redwood City, Calif.

3. San Luis Obispo-Paso Robles, Calif.

4. Ocean City, N.J.

5. Honolulu

6. Los Angeles-Long Beach-Glendale, Calif.

7. Santa Ana-Anaheim-Irvine, Calif.

8. Santa Cruz-Watsonville, Calif.

9. Nassau-Suffolk (Long Island), N.Y.

10. Flagstaff, Ariz.

To calculate the most- and least-affordable areas, BusinessWeek considered the share of homes sold in the second quarter of this year that would have been affordable to a family earning the local median income. Housing costs were calculated using new and existing sales records supplied by First American Real Estate Solutions and include principal, interest, estimated property taxes, and insurance.

For More Information

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Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com DRE #01105052

Santa Cruz Real Estate & Community News, August 2009

2009-08-21T15:50:00.001-07:00

Walter Stauss • Cell 831.246.4663 • walter@831.com • Lifestyles Real Estate • DRE 01105052

AUGUST 2009

Santa Cruz Real Estate and Community News

The U.S. housing market is rebounding quicker than expected, with home resales in July posting the largest monthly increase in at least 10 years as first-time buyers rushed to take advantage of a tax credit that expires this fall.

The National Association of Realtors said Friday that home sales rose 7.2 percent to a seasonally adjusted annual rate of 5.24 million in July, from a pace of 4.89 million in June. It was the fourth-straight monthly increase and the highest level of sales since August 2007.

Highlights:

Santa Cruz County median home price at highest level since last August.

Home sales up 14.8% year-over-year. Year-to-date, home sales are up 19.3%.

Inventory declined for the fifteenth month in a row: down 42.3% from last July.

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The festival starts Friday night with a movie on the beach. Saturday features a sand sculpture contest. The 56th Annual Nautical Parade starts at 1pm on Sunday. And on Monday, there’s a rowboat race on the creek.

There are still good seats available for this season's performances, but the season is almost over. More info.

I welcome your comments about this issue and ideas for future ones. Send me email

If you know anyone who is thinking about buying or selling real estate in Santa Cruz County, please let me know via email or call me at 831.246-4663 Thank you!

In this issue: Home Prices Rise Again | Pending Home Sales Up Fifth Month in a Row | Tax Credit Helps Boost Housing Starts | 10 Best Places for Condo Deals

To read the on-line version of this newsletter with chart and graphs, and the complete articles, go to my website (click on NEWSLETTER).

Market News

Santa Cruz County Median Home Price Up, Again

The median price for single-family, re-sale homes gained 3.5% in July and is now at its highest since last August. Year-over-year, the median price was off 11.7% [More]

Mortgage Rate Outlook

Mortgage rates have been flat for about a month, with a modest upward bent. Banks are still having troubles processing the flood of refis. And the new lending and appraisal rules are making the purchase loan process take longer.

Pending Home Sales Up Fifth Month in a Row

Pending home sales are up for the fifth consecutive month, the first time in six years for such a streak, according to the National Association of Realtors®.. [More]

Real Estate News

Tax Credit Helps Boost Housing Starts in June

Total housing starts saw a significant increase in June when compared to May, which the California Building Industry Association said was additional evidence that the state new-homebuyer tax credit enacted earlier this year is helping to generate new-home sales, and in turn, jobs in home construction. [More]

10 Best Places for Condo Deals

Thanks to a huge inventory, many condominiums are bargains these days. Forbes magazine took a look at the nationwide condo market to determine where the best deals could be found. Because financing can be hard to get, prices on luxury models have fallen the most. [More]

Green Corner

Can the Color of your Roof Impact Climate Change?
White roofs might not be in vogue but apparently they can positively impact climate change. [More]

Pending home sales are up for the fifth consecutive month, the first time in six years for such a streak, according to the National Association of Rea

2009-08-19T16:43:00.001-07:00

Pending home sales are up for the fifth consecutive month, the first time in six years for such a streak, according to the National Association of Realtors®.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in June, rose 3.6 percent to 94.6 from an upwardly revised reading of 91.3 in May, and is 6.7 percent above June 2008 when it was 88.7. last time there were five consecutive monthly gains was in July 2003.

Lawrence Yun, NAR chief economist, said a combination of positive market factors is fueling the gains. “Historically low mortgage interest rates, affordable home prices and large selection are encouraging buyers who’ve been on the sidelines. has been consistently much stronger for lower priced homes,” he said. “Because it may take as long as two months to close on a home after signing a contract, first-time buyers must act fairly soon to take advantage of the $8,000 tax credit because they must close on the sale by November 30.”

The Pending Home Sales Index in the Northeast rose 0.4 percent to 81.2 in June and is 5.8 percent above a year ago. the Midwest the index increased 0.8 percent to 89.9 and is 11.6 percent above June 2008. index in the South jumped 7.1 percent to 100.7 in June and is 8.9 percent higher than a year ago. the West the index rose 2.9 percent to 100.4 but is 0.2 percent below June 2008.

NAR President Charles McMillan, is hopeful that a recently elevated level of contract cancellations will ease. “Last month, Freddie Mac and Fannie Mae clarified that appraisals should be done by professionals with clear local expertise,” he said. “This should mitigate the situation of many valuations done by out-of-area appraisers coming in below the price negotiated between buyers and sellers. , in the months ahead, we’ll see an even closer relationship between contract activity and closed transactions.”

McMillan said NAR is continuing to press the appraisal issue. “We have asked Congress and the Federal Housing Finance Agency to immediately implement an 18-month moratorium on the new appraisal rules to further address unintended consequences of the new guidelines,” he said.

NAR’s Housing Affordability Index remains very favorable. affordability index stood at 159.2 in June, down from record peaks in recent months but it remains 36.6 percentage points above a year ago. these conditions the typical family would devote 15.7 percent of gross income to mortgage principal and interest, well below the standard allowance of 25 percent.

The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income.

“A monthly rise in home prices and somewhat higher mortgage interest rates led to a modest decline in affordability in June, but it was still the sixth highest index on record dating back to 1970,” Yun said. “Because housing is so affordable in today’s market, job security and the first-time buyer tax credit are bigger factors in influencing home sales.”

A median-income family, earning $60,700, could afford a home costing $289,100 in June with a 20 percent downpayment, assuming 25 percent of gross income is devoted to mortgage principal and interest. conditions for first-time buyers with the same income and small downpayments are roughly 80 percent of what a median-income family can afford. affordable price was much higher than the median existing single-family home price in June, which was $181,600.

Yun expects existing-home sales to gradually rise over the balance of the year, with conditions varying around the country. “It appears home sales are on a sounder footing and inventory is gradually being absorbed.”

For More Information

Please contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com DRE #01105052

$8,000 Home Buyer Tax Credit at a Glance

2009-08-19T16:42:00.000-07:00

The information on this page pertains to the American Recovery and Reinvestment Act of 2009.

• The tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.

• The tax credit does not have to be repaid.

• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.

• The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.

• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

This tax credit is goes away soon. The purchase must be completed (escrow must close) before December 1st.

Please contact me for more information about this opportunity.

For More Information

Please contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com DRE #01105052

10 Best Places for Condo Deals

2009-08-19T16:41:00.000-07:00

The magazine suggested that the best deals come from paying cash or at least putting down enough cash so the property can be purchased with a federally-backed loan. It also suggested that buyers bid low. Since these properties are moving so slowly, even a lowball offer might be accepted.

Here are the top 10 best places for condominium deals and their ZIP codes, as determined by Forbes:

Olympic Village, Calif.
Tahoe City, Calif.
Terra Linda, Calif.
Fisher Island, Fla.
Dallas, Tex.
Malibu, Calif.
Bal Harbour Fla.
Key Biscayne, Fla.
Lake Forest, Ill.
New York (Upper West Side)

Source: Forbes, Matthew Woolsey (07/29/2009)

For More Information

Please contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com DRE #01105052

Capitola Begonia Festival, Sept 4-7

2009-08-19T16:38:00.002-07:00

Date: Sunday, Sept 4-7, 2009

Location: Capitola Village

More info: www.begoniafestival.com

For More Information

Please contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com

Tax Credit Helps Boost Housing Starts in June

2009-08-19T16:38:00.001-07:00

“Robert Rivinius, CBIA’s President and CEO said builders are starting new projects and putting people back to work.

“Builders are reporting that the demand spurred by the tax credit has helped clear out new-home inventories and we are now seeing an increase in housing production as builders ramp up projects to meet the demand,” Rivinius said. “This is great news for the tens of thousands of people who have lost construction jobs and those dependent on residential construction.”

Rivinius said that studies show homebuilding produces profound economic and fiscal benefits in California.

“Building a new home in California generates on average about $16,000 in desperately needed tax revenues to the state treasury and creates two to three jobs,” Rivinius said. “Getting an extension on the credit would be a win for the State and the entire economy.”

According to statistics compiled by the Construction Industry Research Board, builders pulled permits for 3,446 total housing units in June, up 17 percent from May. Permits for single-family units totaled 2,772 units, up 20 percent from May and was the largest single-family total since July of last year. Permits for multifamily units totaled 674, up 5 percent from the previous month.

“The Franchise Tax Board has stopped taking applications for the state tax credit for new home purchases as the allocated funds for the program have already run out in only four months,” Rivinius said. “The increase in single-family construction over the past couple of months has shown that the popular program is a success and we’d like to keep it going in hopes of continuing this positive momentum which will help invigorate the overall economy and help put people back to work.”

CIRB is forecasting permits will be pulled for just 40,000 total units in 2009, which would be by far the lowest total on record.

For More Information

Please contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com

Santa Cruz County Median Home Price Up Again

2009-08-19T16:36:00.000-07:00

Santa Cruz County Median Home Price Up Again

The median price for single-family, re-sale homes gained 3.5% in July and is now at its highest since last August. Year-over-year, the median price was off 11.7%

Sales of single-family, re-sale homes were up, year-over-year, by 14.8% in July. Year-to-date, home sales are up 19.3%.

Inventory was down 42.3% from last July. This is the fifteenth month in a row inventory has declined year-over-year.

Days of Inventory rose five days to 122 days. In a balanced market, the supply of homes is usually around five to six months. For condos, the indicator surged 46 days to 186 days.

The sales price to list price ratio fell 0.5 of a point to 97.3%.

Pending sales, a leading indicator, were up 43.3% year-over-year.

Condo sales fell 20% month-over-month, and were off 17.6% compared to last July. Year-to-date, condo sales are up 13.1%.

The median price for condos rose 41% from the month before, and was up 5.4% compared to last July. Don’t read too much into this as the small number of condo sales each month exaggerates the swings.

Condo inventory was down 38.9% compared to July 2008.

Pending sales for condos was up 5.8% year-over-year.

The real estate market is very hard to generalize. It is a market made up of many micro markets. For complete information on a particular neighborhood or property, call me, at 831.246.4663 (or email me at walter@831.com).

For More Information

Please contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com

2009-08-19T16:34:00.000-07:00

Can the Color of your Roof Impact Climate Change?

The cooling effect of white roofs is based on a simple principle of physics. The color “white” reflects sunlight, rather than absorbing it. As such, it also reflects the sun’s heat rather than trapping it. It’s the reason why wearing white clothes keep you cooler in warm climates or in the summer months. If the rooftops of houses and buildings in tropical cities were painted white, then they could potentially reflect enough sunlight back to space to offset huge amounts of carbon dioxide, perhaps more than one year’s worth of global carbon emissions. Hashem Akbari of the Lawrence Berkeley National Laboratory, published a paper last year, in the journal Climatic Change, estimating the “remarkable global cooling potentials” of white roofs in hot cities. According to Akbari, white roofing just “one per cent of the land area of the globe” would reflect enough sunlight to offset the “equivalent to all the world’s cars.” It would also improve smog and air quality (and the associated health care costs), and save $30 billion in energy every year.

From Green Living.com

For More Information

Please contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com

Top 10 Cities With Most Price Reductions

2009-07-13T17:16:00.000-07:00

Real estate research site Trulia.com says 24.6 percent of current homes on the market in the United States as of July 1, have had at least one price cut, totaling $27.1 billion in reductions.

The average price-reduced home has had a 10.4 percent reduction, down slightly from 10.6 percent as of June 1.

Some areas appear to be stabilizing quickly with the overall number and percentage of price reductions declining, including Las Vegas, Los Angeles, Dallas, Washington, D.C., and Baltimore.

“All real estate is local and we’re seeing glimmers of hope as price stabilization occurs in major cities across the nation, including some of the earliest hit cities that have experienced huge declines in the past few years,” says Trulia CEO Pete Flint.

The top-10 cities with the most price reductions as of July 1 are:

Jacksonville, Fla., 39 percent
Boston, 35 percent
Minneapolis, 33 percent
Milwaukee, 33 percent
Honolulu, 33 percent
Tucson, Ariz., 31 percent
Chicago, 31 percent
New York, 31 percent
Austin, Texas, 31 percent
Raleigh, N.C., 31 percent

For More Information

Please contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com

Pending Home Sales Up Fourth Month in a Row

2009-07-13T17:14:00.000-07:00

Pending home sales show a sustained uptrend, rising for four consecutive months with very favorable housing affordability and a first-time buyer tax credit boosting activity, according to the National Association of Realtors®.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in May, increased 0.1 percent to 90.7 from an upwardly revised reading of 90.6 in April, and is 6.7 percent higher than May 2008 when it was 85.0. The last time there were four consecutive monthly gains was in October 2004.

Lawrence Yun, NAR chief economist, cautions that there could be delays in the number of contracts that go to closing. “Closed existing-home sales have improved but are coming in lower than expected because some contracts are delayed or falling through from the application of new appraisal rules for many transactions,” he said. “Rises in contract activity show buyers are becoming more active even as they face much more stringent loan underwriting standards. Speedy clarification of the appraisal rules could smooth a housing market recovery and support the overall economy.”

The Pending Home Sales Index in the Northeast rose 3.1 percent to 80.9 in May and is 6.8 percent above a year ago. In the Midwest the index slipped 1.3 percent to 89.2 but is 11.4 percent above May 2008. The index in the South declined 1.7 percent to 92.6 in May but is 7.9 percent higher than a year ago. In the West the index rose 2.2 percent to 96.9 and is 0.7 percent above May 2008.

NAR President Charles McMillan said the appraisal issue is complicated. “We see that distressed homes often are selling for 20 percent less than normal homes in the same area, but some appraisals don’t distinguish between traditional homes and distressed property,” he said. “In many cases appraisers from outside the area are being used, but as everyone knows real estate is local and appraisals should be done by an expert with local expertise.”

McMillan said sellers shouldn’t hesitate to speak with an appraiser about their home. “Sellers should feel free to tell an appraiser about improvements and renovations to their home, and how it compares with other homes in the neighborhood,” he said.

“Also, if recent sales in the neighborhood were discounted, but not similar to your home in terms of quality or condition, that should be pointed out. It wouldn’t hurt to put all this in writing, especially if an appraiser is not familiar with your area. A Realtor® could offer guidance and information to help you with this process.”

NAR’s Housing Affordability Index remains at historic highs. The affordability index fell to 171.6 in May from an upwardly revised 178.8 in April, which was the highest on record dating back to 1970. “Under these conditions the typical family would devote only 14.6 percent of gross income to mortgage principal and interest, which is one of the lowest percentages on record,” Yun said.

The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income.

A median-income family, earning $60,800, could afford a home costing $296,700 in May with a 20 percent down payment, assuming 25 percent of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small down payments are roughly 80 percent of what a median-income family can afford. The affordable price was significantly higher than the median existing single-family home price in May, which was $172,900.

The first-time buyer tax credit also is benefiting the market. “Strong activity by entry level buyers is helping to absorb inventory and allow some existing owners to make a trade,” Yun said.

Existing-home sales should trend up through the end of the year, with normal local market differences. “The big question is how much the appraisal issue will impact the ability of contracts to go to closing,” Yun said. “We are currently conducting a study to assess the degree to which new appraisal rules are impacting home sales.”

For More Information

Please contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com

Mortgage Rate Outlook

2009-07-13T16:04:00.002-07:00

A few weeks ago, mortgage rates flared higher, climbing from still-economic-emergency levels. The rise came amid what was interpreted to be signals of an improving economic outlook, the potential for inflation, pondering over what the Federal Reserve and Treasury would do and rampant government spending, among other factors.

Over the past couple of weeks, those fears and concerns have run straight into a fairly stark reality: The economy remains weak, if less so than earlier this year; the Federal Reserve and Treasury have provided no indication that the announced programs to support the economy will change in one way or the other and inflation remains largely a down-the-road concern.

As a result, mortgage interest rates have settled back in their typical slow, wary fashion from highs reached in mid-June.

The overall average for 30-year fixed-rate mortgages of all stripes -- measured by HSH's Fixed-Rate Mortgage Indicator -- declined by nine basis points (.09%) this week, closing at 5.81%. The holiday-shorted week saw the average rate for the FRMI's 5/1 Hybrid ARM counterpart also ease back by nine basis points, closing at 5.22%. Conforming 30-year FRMs declined by eleven basis points, stopping at their lowest average since the week ending June 5.

Although there is little doubt that we have bounced off the bottom economically, those looking for some sort of quickly accelerating improvement will need to keep looking.

Rates have eased back because the economy has done so. The fact is, if you want substantially lower mortgage rates you'll need to wish for an even slower growth pattern, and that's probably not among the best thing to want at this point.

It's very possible that, after that late spring low-to-high flare that we've got to our focal point for the Summer, and rates may hang around these levels more or less until after Labor day. It's too soon to call "summer doldrums" just yet, but not that early. Rates probably take a little vacation of their own next week, with little movement expected.

For More Information

Please contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com

Santa Cruz County Median Home Price Back Over $500,000

2009-07-13T16:04:00.001-07:00

The median price for single-family, re-sale homes went over $500,000 in June for the first time since last October. The median price gained 11.1% from May, but was off 13.7% year-over-year. The average price rose 12.5% month-over-month, but was down 16.3% compared to last June.

Sales of single-family, re-sale homes were up, year-over-year, by 18.8% in June. Year-to-date, home sales are up 20.5%.

Inventory was down 41.7% from last June. This is the fourteenth month in a row inventory has declined year-over-year.

The drop in inventory and the rise in sales combined to push our Days of Inventory indicator down 39 days

to 117 days. In a balanced market, the supply of homes is usually around five to six months. For condos, the indicator declined 32 days to 140 days.

The sales price to list price ratio fell 0.2 of a point to 97.8%.

Pending sales, a leading indicator, were up 33.2% year-over-year.

Condo sales were up 16.7% month-over-month. Year-to-date, condo sales are up 20.9%.

The median price for condos fell 20.2% from the month before, and was down 17.3% compared to last June.

Condo inventory was down 40.9% compared to June 2008.

Pending sales for condos is up 12.7% year-over-year.

The real estate market is very hard to generalize. It is a market made up of many micro markets. For complete information on a particular neighborhood or property, call me.

For More Information

Please contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com

CBIA says state new-home tax credit is generating demand for new homes

2009-07-13T16:03:00.000-07:00

May single-family home starts held their own compared to April, offering additional evidence that the state new-home tax credit is generating demand for new homes and leading to a resumption of job-generating construction, the California Building Industry Association reported today.

“This is very good news,” said Robert Rivinius, CBIA’s President and CEO. Rivinius said builders are responding to the increased traffic and corresponding demand that the tax credit has been producing statewide since it was enacted in March of this year.

“When they enacted the $10,000 tax credit back in February, the Governor and the Legislature weren’t sure it would work,” Rivinius noted. “But as this continued strength in new-home construction shows, the credit is indeed working, and working very well.”

In fact, the Franchise Tax Board – the state agency charged with administering the program – just reported that nearly all of the $100 million that was allocated to the program is gone. Rivinius said the homebuilding industry, in an effort to keep the positive economic momentum going, is working with the Governor and the Legislature to extend the tax credit so that it is able to work the full year for which it was authorized.

“After only four months, the program is nearly out of money, but the tax credit was designed to remain an active economic stimulus until March of next year. We still have eight critical months to go,” he said.

Rivinius said the tax credit is popular among legislators on both sides of the aisle not only because it generates jobs and other economic activity but because it produces critically needed state tax revenues.

“Studies show that building a new home in California generates an average of $16,000 in desperately needed tax revenues to the state treasury,” Rivinius said. “Lawmakers know that and now it’s a matter of determining how to finance the remainder of the program.”

Statistics compiled by the Construction Industry Research Board found that builders pulled permits for 2,203 single-family homes in May, down just 7 percent from April but 40 percent lower than in May 2008. On a seasonally adjusted basis, CIRB reported that May’s figures were down just 1.6 percent compared to April.

Based on the strength in the single-family market, CIRB for the first time this year has adjusted its annual forecast upward this month. The Board now expects single-family housing starts to total 24,900 and total housing starts to be 40,200 for the year.

For More Information

Please contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com

Santa Cruz Real Estate & Community News

2009-06-24T21:58:00.001-07:00

JUNE 2009

Santa Cruz Real Estate and Community News

We seem to have turned the corner, as prices are going up. And in Watsonville the market is getting hot. So if you've thought about buying investment property, now is a good time. The competition is tough on the well-priced properties.

Highlights: Santa Cruz County home prices up 4.7% in May from April. Home sales up eleventh month in a row. Year-to-date, home sales are up 21%. Inventory declined for the thirteenth month in a row: down 39.8% from last May.

My Blog

Statistics

Newsletter

Search Listings

See a play. Visit the Farm. Learn about marine mammals. Check out this summary of summer activities at UCSC.

Astronomer Greg Laughlin was interviewed on NPR's Science Friday and ABC Radio (Australia) about the possibility of collisions between Earth and the inner planets. There's also a picture of Ira Flatow, in case you enjoy listening to his program and are curious about what he looks like.

I welcome your comments about this issue and ideas for future ones. Send me email

If you know anyone who is thinking about buying or selling real estate in Santa Cruz County, please let me email or call me at 831.246-4663 Thank you!

In this issue: Home prices rise | Pending Home Sales Up Third Month in a Row | 2009 First-time Home Buyer Tax Credit | Mortgage Rate Outlook
To read a PDF of this newsletter, go to my website.

Market News

Santa Cruz County Home Prices Continued to Rise in May

The median price for single-family, re-sale homes rose 4.7% from April. The median price was off 23.9% year-over-year. The average price fell 9% month-over-month, and was down 30.2% compared to last May.

Sales of single-family, re-sale homes were up, year-over-year, by 10.3% in May. Year-to-date, home sales are up 21%.

Inventory was down 39.8% from last May. This is the thirteenth month in a row inventory has declined year-over-year. [More]

Pending Home Sales Up Third Month in a Row

Record low mortgage interest rates boosted pending home sales for the third consecutive month, with some benefit now from the first-time buyer tax credit, according to the National Association of Realtors®. [More]

Mortgage Rate Outlook

Bond and mortgage markets spasmed at the end of May, and the corresponding sharp rise in rates over a two-day period served as a reminder that even a battered private market markets can be a dangerous animal. It wasn't completely clear what sparked the rout, but there was speculation that a combination of unclear goals in Federal Reserve quantitative easing programs, floods of new sovereign debt and shoddy treatment of GM bondholders all led to the selloff. [More]

Real Estate News

2009 First-Time Home Buyer Tax Credit

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers.

WHO QUALIFIES? First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009. [More]

Zero Profit Doesn’t Mean Zero Capital Gains Taxes

In this difficult market, many taxpayers are selling property in short sales or other transactions with no profit. Unfortunately, what many taxpayers do not understand is that property may be sold with no profit, but still be subject to significant taxable capital gain. [More]

Green Corner

I did a test in my garden this year. One raised bed is filled with topsoil from a local dirt store; the other is filled with compost, from the dump. You won't believe the difference! Check out the pictures.

Topsoil vs. Compost... And the winner is:

2009-06-24T17:43:00.000-07:00

I filled one of my new raised beds with topsoil from Aptos Landscape Supply. I filled the other bed with "ecocompost" from the dump on Buena Vista. In each of the two beds I planted three tomato plants and three zucchini plants. These plants were from the same six packs, so they were nearly identical. The tomatoes in the top soil even get more sun!

Check out the difference... compost bed on the left, top soil bed on the right. The same brick is in each photo, for scale.

For More Information

Please contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com

Taxpayers Beware: Zero Profit Doesn’t Mean Zero Capital Gains Taxes

2009-06-24T17:33:00.000-07:00

How is this possible? It is possible simply because gain results not just from appreciation in value, but also results from depreciation deductions taken during ownership of the property, gain deferred from previous transactions, and from borrowing against appreciated equity in a declining market. These adverse tax consequences can be avoided by engaging in a Section 1031 tax deferred exchange.

How to Determine Gain
The formula to determine taxable gain is: Sales price less adjusted basis1= taxable gain

Three Situations Resulting In No Profit, But Taxable Gain

Depreciation Recapture If a taxpayer takes depreciation deductions, those deductions reduce the taxpayer’s basis, thereby resulting in gain.

Example: Taxpayer acquires investment property A for $200,000. Taxpayer’s basis is therefore $200,000. During taxpayer’s ownership, taxpayer takes $138,500 of depreciation deductions, thereby reducing taxpayer’s basis to $61,500. Taxpayer sells Property A for $180,000.00. Even though taxpayer sells the property for $20,000 less than what he originally purchased it for, he still has a taxable gain of $118,500 ($180,000-$61,500=$118,500) which will result in approximately $41,500 in federal and state taxes. This adverse tax result can be avoided by exchanging the property in a tax deferred exchange rather than selling the property.

Carryover Gain If a taxpayer sells property previously acquired in an exchange – at no profit or even at a loss – the taxpayer may still be faced with significant taxable gain.

Example: Taxpayer originally acquired Property A for $20,000. Taxpayer disposed of Property A in a tax deferred exchange for $100,000 and acquired Property B for $150,000, thereby deferring taxes on $80,000 of gain. Taxpayer’s adjusted basis in Property B is $70,000 ($150,000 purchase price-$80,000 carryover gain=$70,000). Taxpayer now proposes to sell Property B for the same price as he purchased it for – i.e. $150,000. Although Taxpayer is not making a profit on this transaction, he will still have significant federal and state taxes of approximately $28,000 on his gain of $80,000.

Excess Borrowing If a taxpayer borrows against appreciated equity in their property, tax consequences can also result if the property thereafter declines in value and the taxpayer is forced to sell the property for little or no profit.

Example: Taxpayer acquired property A for $1,000,000, paying $200,000 cash and borrowing $800,000. Taxpayer’s basis is $1,000,000. During Taxpayer’s ownership, the property appreciates in value to $1,400,000, enabling Taxpayer to refinance the existing loan of $800,000 with a new loan of $1,120,000. Taxpayer now sells, but since property values have declined, his selling price is $1,120,000. Although Taxpayer will receive no cash from the sale, he will still have taxable gain of $120,000 ($1,120,000-$1,000,000=$120,000), with combined federal and state taxes of $42,000.

As illustrated by the foregoing examples, sales of property that yield little or no cash can still result in taxable gain. Before selling in a down market, taxpayers and their advisors should first determine the taxpayer’s basis in the property to be disposed of and thoroughly discuss upfront the potential tax consequences. Taxpayers can avoid any of the tax consequences noted in these examples by engaging in a IRC §1031 tax deferred exchange.

For More Information

Please contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com

Pending Home Sales Up Third Month in a Row

2009-06-24T17:26:00.001-07:00

The Pending Home Sales Index,1 a forward-looking indicator based on contracts signed in April, rose 6.7 percent to 90.3 from a reading of 84.6 in March, and is 3.2 percent above April 2008 when it was 87.5.

Lawrence Yun, NAR chief economist, said buyers are responding to very favorable market conditions. “Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market,” he said. “Since first-time buyers must finalize their purchase by November 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers.”

The Pending Home Sales Index in the Northeast shot up 32.6 percent to 78.9 in April and is 0.8 percent above a year ago. In the Midwest the index rose 9.8 percent to 90.4 and is 11.1 percent above April 2008. The index in the South slipped 0.2 percent to 93.0 in April but is 3.5 percent higher than a year ago. In the West the index rose 1.8 percent to 94.8 but is 2.9 percent below April 2008.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said there are numerous buyer assistance programs around the country. “Some states are offering bridge loans that allow first-time buyers to use the tax credit for downpayment and closing costs, but there are many other local government and nonprofit programs available to buyers, depending on location,” he said.

“Just last week, HUD announced that qualifying buyers can use the tax credit for closing costs on FHA loans, to buy down the interest rate or make a larger downpayment. Buyers who are wondering about their options should contact a Realtor®, who can advise consumers on the housing assistance programs and resources available in a given area.”

NAR’s Housing Affordability Index2 is in record territory. The affordability index rose to 174.8 in April from an upwardly revised 171.9 in March, and was the second highest monthly reading on record after peaking at 176.9 in January of this year. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income; tracking began in 1970.

A median-income family, earning $60,900, could afford a home costing $296,800 in April with a 20 percent downpayment, assuming 25 percent of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small downpayments are roughly 80 percent of that amount. The affordable price was well above the median existing single-family home price in April, which was $169,800.

Yun cautions that the reporting sample for pending home sales is smaller than that of existing-home sales, so it is subject to greater variability. “In addition, the relationship between contracts on pending home sales and closings on existing-home sales is taking longer than in the past for several reasons,” he said. “Mortgage processing time has increased, it is taking many months to close on those homes requiring short sales with lender approval, and some sales are falling through at the last moment.”

The total number of existing-home sales is expected to improve but with dramatic local market variation in the timing of recovery. “The market has already bottomed in some areas, but this is an unusual housing cycle with some areas improving rapidly while others languish or decline,” Yun said.

For More Information

Please contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com

Mortgage Rate Outlook

2009-06-24T17:23:00.000-07:00

Yields on the 10-year Treasury bond had lifted by just over half a percentage point in a few days' time, taking conforming fixed mortgage rates along for the ride. After standing at a familiar 5.03% on Tuesday, Conforming 30-year FRMs leapt to 5.29% on Wednesday and then 5.44% on Thursday before settling on Friday to 5.30%.

Overall, HSH's Fixed-Rate Mortgage Indicator (FRMI), which includes rates for conforming, jumbo and "high-limit" conforming data, rose by only 18 basis points to 5.64%, as the increase in the conforming portion was tempered somewhat by a softer response in Jumbos. An all-inclusive average for 5/1 hybrids increased by 10 basis points, closing the survey week at 5.15%.

Existing Home Sales rang in at a 4.68 million (annualized) rate of sale in April, a slight increase from March's figure but in line with recent figures, which have been showing a kind of "backing and filling" pattern for the past five months. Prices continue to ease -- they are 15.4% below year-ago levels, and the supply of inventory increased back to 10.2 months at the present rate of sale.

New Homes sold at a 352,000 annualized clip in April, almost exactly the same pace seen in March. Like their 'used' counterparts, prices here are about 15% below last year, but inventory levels continue to improve and now stand at 10.1 months available. According to the Commerce Department, the actual number of units on the market is now 297,000 and is starting to approach half of the peak levels seen a couple of years ago. The sooner inventory disappears, the sooner new construction can begin, and we are approaching that day steadily, if slowly.

For More Information

Please contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com

Santa Cruz County Home Prices Continued to Rise in May

2009-06-24T17:22:00.000-07:00

Sales of single-family, re-sale homes were up, year-over-year, by 10.3% in May. Year-to-date, home sales are up 21%.

Inventory was down 39.8% from last May. This is the thirteenth month in a row inventory has declined year-over-year.

The drop in inventory and the rise in sales combined to push our Days of Inventory indicator down 21 days to 156 days. In a balanced market, the supply of homes is usually around five to six months. For condos, the indicator rose thirteen days to 172 days.

The sales price to list price ratio rose 0.8 of a point to 98%.

Pending sales, a leading indicator, were up 35.1% year-over-year.

Condo sales were up 3.4% year-over-year. Year-to-date, condo sales are up 28.3%.

The median price for condos rose 17.5% from the month before, but was down 9.2% compared to last May.

Condo inventory was down 34.4% compared to March 2008.

Pending sales for condos is up 25% year-over-year.

The real estate market is very hard to generalize. It is a market made up of many micro markets. For complete information on a particular neighborhood or property, call me.

For More Information

Please contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com

Santa Cruz Real Estate & Community News

2009-05-20T15:00:00.001-07:00

Untitled document

The May edition of my newsletter is now available. While most of the content of the newsletter is included below, there are charts and graphs and pictures that aren't included in this email, but are included online.

Also try my new interactive market statistics site. I encourage you to check it out... I think you'll love it!

HIGHLIGHTS

Santa Cruz County home sales up ninth month in a row. Year-to-date, home
sales are up 28.4%.
Inventory declined for the eleventh month in a row: 19.7% from last March.
The median price for homes fell 4.4% from February, but was down 36.5% year-over-year.

For the four-page printable version of the report, click here: Santa Cruz Real Estate and Community News

To view the on-line market statistics with a city-by-city breakdown, go here: Interactive Market Statistics

Or to check out a house you noticed: search listings or use the map-based search.

P.S. If you find my newsletter useful and know someone else who might, please feel free to forward this e-mail to them.

Walter Stauss
Lifestyles Real Estate
(831) 246-4663
http://www.831.com
mailto:walter@831.com
DRE #01105052

Santa Cruz County Home Sales Rise Ninth Month in a Row

The median price for single-family, re-sale homes rose 10.9% from March. This is the largest month-over-month gain since February 2008. The median price was off 33.5% year-over-year. The average price gained 21.1% month-over-month, but was down 24.5% compared to last April.

Sales of single-family, re-sale homes were up, year-over-year, by 16.2% in April. Year-to-date, home sales are up 25.2%.

Inventory was down 24.5% from last April. This is the twelfth month in a row inventory has declined year-over-year.

The drop in inventory and the rise in sales combined to push our Days of Inventory indicator down 53 days to 177 days. In a balanced market, the supply of homes is usually around five to six months. For condos, the indicator was down a whopping 115 days to 158 days.

The sales price to list price ratio rose dipped 0.2 of a point to 97.2%.

Days on market dropped 37 days to 64 days.

Condo sales were up 43.5% from March, and were up 43.5% year-over-year. Year-to-date, condo sales are up 38.6%.

The median price for condos rose 22% from the month before, but was down 12.7% compared to last April.

Condo inventory was down 32.6% compared to March 2008.

The real estate market is very hard to generalize. It is a market made up of many micro markets.

For complete information on a particular neighborhood or property, call me at 831.246.4663.

Bernanke Says Recovery Is around The Corner

Federal Reserve Chairman Ben S. Bernanke added to the recent upbeat mood on the economy today, telling Congress that the recession was easing and that growth should begin by the end of the year.

But Bernanke warned that the recovery would be slow and unemployment rates would continue to remain high even after the recession had ended.

Bernanke's testimony to the Joint Economic Committee amplified on his comments on CBS' "60 Minutes" in March that the recession would end later this year if government rescue actions succeeded. He was more upbeat and detailed today, offering fewer qualifications. His forecast built on assessments by top economic officials in the Obama administration that the recession was showing signs of ending.

"We continue to expect economic activity to bottom out, then to turn up later this year," Bernanke said, noting that the Fed believes the housing market is beginning to stabilize. "We expect that the recovery will only gradually gain momentum and that economic slack will diminish slowly. In particular, businesses are likely to be cautious about hiring, implying that the unemployment rate could remain high for a time, even after economic growth resumes."

He said unemployment would probably peak early next year and then come down slower after that. The unemployment rate was 8.5% in March, the most recent data available.

The nation's economic activity has decreased by more than 6% in the last two quarters. But Bernanke said there was "a bit of good news" in the data from the first three months of this year, noting that about half of the 6.1% decline in gross domestic product came from businesses accelerating the liquidation of their inventories.

"As inventories are worked down, then firms will be able to increase their production to meet what looks to be some stabilization in final demand," he said.

While businesses will be slow in hiring new workers to rebuild their inventories, that slower growth should continue to keep inflation low, Bernanke said.

"It's very hard for serious inflation to take off when you have this kind of slack in the economy," he said.

How to Buy a House at a Foreclosure Auction

A property owner who misses several mortgage payments has a pre-foreclosure grace period of a few weeks to a few months — depending on the state — to bring the payments up to date and stop any foreclosure proceedings. If the owner does not bring the delinquent payments up to date, the property will be sold at a public auction, which is announced via a Notice of Trustee's Sale (NTS) or Notice of Foreclosure Sale (NFS).

NOTE: Buying foreclosure properties at the courthouse steps can be challenging and the most risky option because:

You are competing with seasoned investors who track the auctions daily.
You will likely have to pay cash for the property, because financing an auctioned property isn't possible in many states.
You may not have much time to research the title and condition of the property beforehand.
If there is a money encumbrance attached to the property — a tax lien, a mechanics lien or a second or third mortgage — you, as the new owner, will have to pay it off in full.

Here's how to buy a house at auction:

1) Find properties and look at them. Look for foreclosure auction notices in the local newspapers or subscribe to an online listing service like RealtyTrac. You can also call the city or county recorder for the latest foreclosure auction schedule.

After you find a property, drive by it to get a better idea of its condition and neighborhood. This could facilitate a casual meeting with the owner (you may be able to still work out a last-minute deal before the auction) or yield a wealth of unexpected information from a talkative neighbor. Take pictures and notes, but the owner may still be living in the home so be discreet.  

2) Confirm auction status, date, time, location and requirements. After a property is scheduled for auction, the owner has a chance (typically less than a month) to stop the auction by paying the amount owed to the foreclosing lender. Auctions may also be postponed without a new date being published. Cancellations and postponements are announced at the time and location of the originally scheduled auction. You can find out beforehand by calling the trustee — the person or party (often an attorney) who is filing the paperwork to initiate and carry out the foreclosure.

Location: Most auctions are at a public place in the same county where the property is located. In many states, all the auctions in each county are at the same location. You can typically get that information from the trustee or county clerk. If you call the county clerk, make sure you clarify that you are looking for the location of mortgage foreclosure auctions, not tax foreclosure auctions.

Depending on the state, bidders are required to bring:

the full amount they want to bid in the form of cash or cashier's check, or
a certain percentage, usually 10 percent, of the bid amount in the form of cash or cashier's check (like a deposit), and pay the remainder of the amount within a certain time frame if

This story continues on my web site. Go to www.831.com and click on Newsletter.

5 Maintenance Issues You Shouldn't Ignore

Consumer Reports magazine advises home owners not to put off important maintenance projects, noting that waiting until the economy rebounds could end up making the repairs more costly while putting a family's health at risk.

The magazine identifies five crucial maintenance issues:

Check the gutters: Clogged gutters, broken fasteners and separations where the gutters meet the fascia board will lead to roof leaks if they haven’t already.

Inspect the roof: Cracked, curled and mussing shingles mean a roof is nearing the end of its useful life. Cracks around chimneys, skylights, and roof valleys can also suggest the roof might be leaking.

Look for bugs: Termites and carpenter ants can bore through a home in a few short years. Probe the sill plate on top of the foundation with a screwdriver to check for rotten wood. Also look for carpenter ants and termites along windowsills and walls.

Avoid mold: Mold and mildew can cause musty odors, dank air, and make residents sick. Check under carpets and around windows for visible mold or mildew.

Don’t ignore cracks: Foundation cracks wider than 3/16 of an inch can be a problem. These require examination by a structural engineer.

Green Corner

What are VOCs?

VOCs (volatile organic compounds) You can't see VOCs, but they're all around us, and they aren't listed as ingredients on the objects we bring in our home (but they're often there). VOCs are a wide range of carbon-based molecules used in a many products that find their way into our homes. Under normal conditions, they vaporize, effectively leaving their host and entering the air (that's the "volatile" part) where they combine with other airborne compounds to form ozone, which isn't good to breathe.

Though they exist everywhere in the environment they are most well-known for the harm they can cause indoors, where they can be introduced via paint, carpets, furnishings, and cleaning agents.

Concentrations of VOCs can be up to 1,000 times greater indoors than out! Common VOCs include formaldehyde, used in many glues and adhesives, including those found in wood veneers, plywood and particle board, and polyurethane, which is used in many foams, paints, varnishes, and construction sealants.

At high concentrations, some VOCs can cause chronic and acute health effects; others are known carcinogens. But even low to moderate levels of multiple VOCs can produce acute reactions. Bottom line: Avoid volatile organic compounds as much as possible.

Water-based glues, adhesives, finishes, and soy-based foams will help keep VOC levels to a minimum in furnishings and decor. Buying green cleaners helps ensure that you aren't adding toxins to the air when you clean them.

If you no longer wish to receive these emails, please reply to this message with "Unsubscribe" in the subject line or simply click on the following link: Unsubscribe

Walter Stauss / Lifestyles Real Estate
500 Seabright Avenue
Santa Cruz, California 95062
US

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Santa Cruz County Home Sales Rise Ninth Month in a Row

2009-05-20T14:42:00.000-07:00

The median price for single-family, re-sale homes rose 10.9% from March. This is the largest month-over-month gain since February 2008. The median price was off 33.5% year-over-year. The average price gained 21.1% month-over-month, but was down 24.5% compared to last April.

Sales of single-family, re-sale homes were up, year-over-year, by 16.2% in April. Year-to-date, home sales are up 25.2%.

Inventory was down 24.5% from last April. This is the twelfth month in a row inventory has declined year-over-year.

The drop in inventory and the rise in sales combined to push our Days of Inventory indicator down 53 days to 177 days. In a balanced market, the supply of homes is usually around five to six months. For condos, the indicator was down a whopping 115 days to 158 days.

The sales price to list price ratio rose dipped 0.2 of a point to 97.2%.

Days on market dropped 37 days to 64 days.

Santa Cruz Condo sales were up 43.5% from March, and were up 43.5% year-over-year. Year-to-date, condo sales are up 38.6%.

The median price for condos rose 22% from the month before, but was down 12.7% compared to last April.

Condo inventory was down 32.6% compared to March 2008.

The Santa Cruz real estate market is very hard to generalize. It is a market made up of many micro markets. For complete information on a particular neighborhood or property, call me at 831.246.4663.

For More Information

Please contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com

How to Buy a House at a Foreclosure Auction

2009-05-20T14:37:00.000-07:00

You are competing with seasoned investors who track the auctions daily.
You will likely have to pay cash for the property, because financing an auctioned property isn't possible in many states.
You may not have much time to research the title and condition of the property beforehand.
If there is a money encumbrance attached to the property — a tax lien, a mechanics lien or a second or third mortgage — you, as the new owner, will have to pay it off in full.

the full amount they want to bid in the form of cash or cashier's check, or
a certain percentage, usually 10 percent, of the bid amount in the form of cash or cashier's check (like a deposit), and pay the remainder of the amount within a certain time frame if they are the highest bidder

The opening bid at the auction is based on the total amount owed to the foreclosing lender and may include fees incurred because of the foreclosure proceedings. If no one bids above that amount, the foreclosing lender will take possession of the property.

This story continues on my web site. Go to www.831.com and click on Newsletter.

For More Information

Please contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com

5 Maintenance Issues You Shouldn't Ignore

2009-05-20T14:36:00.002-07:00

Consumer Reports magazine advises home owners not to put off important maintenance projects, noting that waiting until the economy rebounds could end up making the repairs more costly while putting a family's health at risk.

The magazine identifies five crucial maintenance issues:

Check the gutters: Clogged gutters, broken fasteners and separations where the gutters meet the fascia board will lead to roof leaks if they haven’t already.

Inspect the roof: Cracked, curled and mussing shingles mean a roof is nearing the end of its useful life. Cracks around chimneys, skylights, and roof valleys can also suggest the roof might be leaking.

Look for bugs: Termites and carpenter ants can bore through a home in a few short years. Probe the sill plate on top of the foundation with a screwdriver to check for rotten wood. Also look for carpenter ants and termites along windowsills and walls.

Avoid mold: Mold and mildew can cause musty odors, dank air, and make residents sick. Check under carpets and around windows for visible mold or mildew.

Don’t ignore cracks: Foundation cracks wider than 3/16 of an inch can be a problem. These require examination by a structural engineer.

For More Information

Please contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com

Green Corner: VOCs

2009-05-20T14:36:00.001-07:00

For More Information

Please contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com

Cabrillo's Piño Alto Restaurant

2009-04-22T08:10:00.000-07:00

This restaurant is insdie the Sesnon House on the campus of Cabrillo College (across Soquel Drive from the main parking structure). It seats 40 inside plus 15 outside (weather permitting). Piño Alto's schedule coincides with Cabrillo's spring and fall semesters: dinner will be served through May 21, though lunch continues through May 28. The restaurant reopens Sept. 15 for fall, operating through Dec. 10.

Lunch is served Monday-Thursday with weekly menu changes. The more extensive dinner menu, offered Tuesday-Thursday, changes bimonthly. Menus are themed around a country or culture's cuisine; a vegetarian entree is always included.

The upcoming lunch schedule includes Italian cuisine April 20-23, followed by Southern cooking April 27-30. For dinner service, the April 21-23 menu is 'An Interpretation of Contemporary American Chefs,' with Mexican cuisine offered April 28-30 and May 5-7. Operating in conjunction with dinner, the Wine Bar offers small dishes such as oysters and charcuterie and artisanal cheese plates.

HOURS: Lunch noon-1:30 p.m. Monday-Thursday; dinner 5:30-8:30 p.m. Tuesday-Thursday; Wine bar opens at 5 p.m. Tuesday-Thursday.

NOTE: No lunch reservations except for groups of six or more, with 24-hour notice; dinner reservations advised.

AMBIANCE: Casual but refined, set in historic building

COST: Very reasonable (three-course lunch $9)

DETAILS: Call 479-5750 about lunch and 479-6524 for dinner

For More Information

Please contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com

Green Corner: What about biodegradable plastic bags?

2009-04-15T21:54:00.002-07:00

Biodegradable plastic is a mixed bag (pun intended); while biopolymers like polyhydroxyalkanoate (PHA) and Polylactide (PLA) are completely biodegradable in compost (and very, very, very slowly—if at all—in a landfill) and are not made from petroleum products, they are often derived from our food sources.

The primary feedstock for bioplastics today is corn, which is rife with agro-political conflict and often grown and harvested unsustainably; because of these reasons, and because it competes with food supply, it is not likely to be a long-term solution in the plastics world.

Plus, some bags marked "biodegradable" are not actually so—they're recycled plastic mixed with cornstarch. The cornstarch biodegrades and the plastic breaks down into tiny little pieces but does not actually "biodegrade," leaving a yucky polymer mess (if in small pieces). The only way to avoid this? Look for 100% plant-based polymers, like the two mentioned above.

So, while it's good to have the alternative (and to recognize the innovation it represents), bioplastics aren't quite ready to save us from the paper or plastic debate.

For More Information

Please contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com

Selling a Property?

2009-04-15T21:54:00.001-07:00

Ask me how a Stuctured Sale might help you defer taxes. It’s a cross between an 1031 exchange and an annuity. Call me at 831.246.4663 or send me an email: walter@831.com.

For More Information

Please contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com

What to Do if Your Mortgage Application is Rejected (it happens a lot these days)

2009-04-15T21:52:00.002-07:00

The Mortgage Bankers Association estimates that about half of all mortgage applicants are now being turned down. Though refinancing approvals remained static, the acceptance rate on mortgage applications dropped from 63 percent in the first half of 2007 to 53 percent in the first half of last year, according to mortgage data tracked semi-annually by the association. Since then, we’ve seen further tightening of credit standards.

If your application is rejected, you should adopt a pragmatic stance, since clear-eyed determination may eventually land you a loan.

Here's how:

1. Find out why
If you've submitted a formal application, you're entitled to a formal rejection.

Expect an "adverse action" notice, spelling out the reasons for turning you down, which these days is likely to state that the loan amount you're seeking is too large compared to the current appraised value of your home.

If it's not your home's value that's the issue, it may be your personal credentials, such as your creditworthiness, work history or debt load.

When credit is the issue, the bank has to name the credit reporting agency that provided the data on which the lender based its decision. You're also entitled to a free credit report; see the FTC Web site for more information.

Before you pay an application or appraisal fee, ask your lender to pull your credit score, and tell you what you're likely eligible for.

2. Find a fix
You might qualify for a different loan product. If you don't qualify at 5.5 percent, for instance, you may be able to get the nod for a loan at 6 percent or 6.5 percent.

Or, to get a good rate, consider lowering the amount of the loan you seek.

If you’re close to a 740 credit score (which is usually required for the best rate) you might pay down a balance on a credit card.

3. Seek out other opinions
Not every lender adheres strictly to the same guidelines; one lender may approve what another rejects. Try a different lender.

A local "community bank," meaning a smaller, hometown institution, may be more flexible. And, while they still use independent appraisals, a local bank might look at comparable home values differently because they know the neighborhoods and local market better.

Some credit unions may judge loan eligibility based upon the unique relationship they have with their members. For instance, many credit unions offer membership to employees of specific companies and would know more about a member's job stability. If you belong to a credit union, give them a call, as they might be more forgiving.

4. Give it another try
The Mortgage Bankers Association is predicting that 30-year fixed rates will hover near the 5% range through 2009. So if interest rates stay low, you should have time to try again if the factors behind your rejection improve.

Fortunately, a rejection shouldn't bring down your credit score, says Craig Watts, public relations director for Fair Isaac Corp.

Making a formal application and then reapplying more than a month later could lower your score, but only by about 5 points. Most scoring systems allow consumers to make multiple mortgage applications within a 30-day period without any negative impact on their credit score. But mortgage inquiries older than 30 days will count as a single inquiry if they're made within a 14-day or 45-day window, depending on the scoring model used.

For More Information

Please contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com

Attend a Composting Workshop and Get a Free Composting Bin!

2009-04-15T21:52:00.001-07:00

If you’re a Green Waste Recovery customer, you can get a free composting bin if you attend a composting workshop. Here are the dates of upcoming workshops:

Santa Cruz: Saturday April 18
Aptos: Saturday May 9
Watsonville: Sunday, May 17
Scotts Valley: Saturday, June 27

To register for a composting workshop, call the Rotline at 423-HEAP.

Or, attend a Wormshop and receive a free Can-O-Worms composting bin. Learn how worms can eat your food scraps and make beautiful vermicompost for your garden

The next few worming workshops:

Felton: April 26
Aptos: May 30
Santa Cruz: June 20

To register for a Wormshop, call the Worm Doctor at 427-3452.

If you can’t attend a workshop, you can purchase a Biostack or Can-O-Worms for $25. Call Green Waste Revory at 800-665-2209 to order.

There is a limit of one free or reduced-cost Biostack or Can-O-Worms per customer per five-year period.

Additional bins can be purchased at wholesale prices of $69 for Biostack and $65 for Can-O-Worms. Call Green Waste Recovery at (800) 665-2209 to order.

Workshops and Wormshops are FREE for residents of the unincorporated area of Santa Cruz County and Scotts Valley. Residents of the cities of Santa Cruz, Capitola, and Watsonville will be charged a $50.00 admission fee per household.

For More Information

Please contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com

Which States Have The Highest Taxes?

2009-04-15T21:51:00.002-07:00

According to Forbes magazine, here are the 10 states with the highest taxes, including property, individual income, sales, alcoholic beverages, tobacco, motor vehicles, hunting and fishing, motor fuels, death and gift taxes, as well as insurance premiums. The per capita tax was derived by adding up all the taxes and dividing the total by the number of citizens.

Vermont, $3,861
Hawaii, $3,856
Connecticut, $3,596
Minnesota, $3,203
New Jersey, $3,024
New York, $3,019
Massachusetts, $2,953
Washington, $2,553
Wyoming, $2,357
Pennsylvania, $2,223

For More Information

Please contact me if you'd like more information about our community or real estate market:

Walter Stauss, Lifestyles Real Estate
500 Seabright Avenue, Santa Cruz, California 95062
Cell: 831.246.4663, Email: walter@831.com, Web: http://www.831.com

California Coastal Real Estate

Santa Cruz Real Estate and Community News

What You Must Know About Home Appraisals

By: G. M. Filisko

1. An appraisal isn’t an exact science

2. Appraisals have different purposes

3. An appraisal is a snapshot

4. Appraisals don’t factor in your personal issues

5. You can ask for a second opinion

Coastal Commission Makeover

Coastal Commission makeover could signal change in outlook on Santa Cruz projects

Santa Cruz Real Estate and Community News

February 2011 Newsletter

Understanding Landlord Insurance

Real estate sales rise in 49 states in Q4

Understanding Your Home Loan’s Good-faith Estimate

The Economy

Santa Cruz Real Estate and Community News

HUD to Launch Pilot Program to Help Homeowners

California pulls ahead of Florida in the race to recovery

5 Foreclosure Myths

Santa Cruz Real Estate and Community News

Graywater irrigation systems

Mortgage Fraud Investigations Are Climbing

Home Owners Fight Property Tax Increases

Fewer Sellers Are Cutting Prices

Federal Program to Encourage Short Sales

Happy Valentine's Day

Santa Cruz Real Estate & Community News, December 2009

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Santa Cruz Real Estate News

Deal of the Month: Quintessential Boulder Creek income property

West Marine founder protects 92 acres from development

GREEN CORNER: Easy Financing for Energy-Efficient Home Projects Coming Soon?

Upcoming Events

Median Price Jumps 25.9% Year-Over-Year

Nine Consecutive Gains for Pending Home Sales

FHA Mortgage Insurance Program Important to Housing Market & Recovery

Mortgage Rate Outlook

Santa Cruz Real Estate & Community News, November 2009

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Santa Cruz Real Estate News

Santa Cruz Real Estate & Community News, October 2009

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Santa Cruz Real Estate News

Santa Cruz Real Estate & Community News, September 2009

Santa Cruz Real Estate and Community News

Quick links ...

October Events

Feedback

Referrals

Market News

Inventory Declines, While Pending Sales Continue to Rise

Mortgage Rate Outlook

Pending Home Sales on a Record Roll

Real Estate News

Credit Market Makes Economists Nervous

10 Most-Affordable Areas in the Country:

Green Corner

Credit Market Makes Economists Nervous

Most Affordable, Least Affordable

Santa Cruz Real Estate & Community News, August 2009

Santa Cruz Real Estate and Community News

Quick links ...

Capitola Begonia Festival, September 4-7

Shakespeare Santa Cruz

Feedback

Referrals

Market News

Santa Cruz County Median Home Price Up, Again

Mortgage Rate Outlook

Pending Home Sales Up Fifth Month in a Row

Real Estate News

Tax Credit Helps Boost Housing Starts in June

10 Best Places for Condo Deals

Green Corner

Pending home sales are up for the fifth consecutive month, the first time in six years for such a streak, according to the National Association of Rea

$8,000 Home Buyer Tax Credit at a Glance

10 Best Places for Condo Deals

Capitola Begonia Festival, Sept 4-7

NOTE: Some email programs have trouble displaying styled emails, so I've switched to this simpler
format. Click here to see the entire newsletter, including charts and graphs.

NOTE: Some email programs have trouble displaying styled emails, so I've switched to this simpler
format. Click here to see the entire newsletter, including charts and graphs.

NOTE: Some email programs have trouble displaying styled emails, so I've switched to this simpler
format. Click here to see the entire newsletter, including charts and graphs.