NEW HOUSING BILL SIGNED BY BUSH TODAY

Highlights of the Housing Bill:

• Moratorium on Risk-Based Pricing for mortgage insurance premiums based on credit score

This change does mandate that the Risk-Based pricing HUD implemented on FHA loans effective July 14,2008 must be stopped by October 1, 2008 at the latest. This change does not prevent HUD from implementing risk-based pricing on criteria other than credit score (such as program type or LTV) and allows for upfront premiums to be as high as 3%.

• Elimination of Seller-Funded Down Payment Assistance (DPA) Programs

This change does include all interested-party DPA programs, including AmeriDream and Nehemiah. However, Housing Finance Agency, approved Nonprofit Community Seconds, and any DPA provided by a government entity are not affected by this change and may still be used. There is a chance that seller-funded DPA programs will be reinstated in the future, but if so it would likely be in a more restricted form. This is likely to be effective with loans approved after

• Simplification of Condominium Project Approvals

FHA now has the authority to dramatically streamline condominium project approval requirements. The timing and details of implementation are yet to be confirmed.

• Increase of the required borrower cash investment on FHA loans to 3.5%

The timing and implementation details are still undecided - HUD will issue a mortgagee letter with additional detail and we will update the site as more is learned.

• Implementation of new permanent Mortgage Loan Limits

The new limits will be effective Jan. 1, 2009 when the temporary limits of the Stimulus Bill Expire. The limits will maintain the current floor limit of $271,050. The ceiling loan limit will be reduced to $625,500 (which is 150% o fthe $417,000 GSE Limit). The calculation factor for high cost areas (i.e. area median X’s factor = Maximum mortgage amount) is lowered to 115% from 125%.

• Implementation of a $7,500 tax credit for first-time homebuyers

This tax credit is actually more of an interest-free loan that is paid back with a recapture provision that requires payments of 6.67% of the amount to be made over a 15 year period, beginning in year 2 of the loan. This tax credit will be available through July 2009.

See the full bill HERE:

http://www.rules.house.gov/110/text/110_atostohto3221.pdf

Pools with homes attached....

There are about 50 homes in Tracy listed with pools. Here are a few.. Most of the pool shots are from previous pictures when the home in its former glory (when it was not a forclosure). The homes in this market are usually vacant and the pools are drained or look like a swamp.CLick here to view a current list




A FEW THAT CAUGHT MY EYE:
1)Megan Ct


Wonderful 3bd 2.5 ba home. Vaulted ceilings in LR/DR combo with tile fireplace & built in media niche. Spacious kitchen w/ breakfast nook & center island. Upstairs laundry & nice sized bedrooms. Gunite pool w/waterfall & sep heated spa.

PRICE: $251,667 (REO)
Sold for $539,000 two days shy of 3 years ago (07/27/05)



2) Redbridge Rd, Tracy, CA

Formal Model Estate in Popular Redbridge,
6-french doors lead to built-in POOL
gourmet kitchen
4 fireplaces
4-car tandem

Beds: 5 Baths: 4 Sq Ft: 4508 Lot Sz: 0.400ac
Yr: 2000

PRICE: $724,900
FORCLOSURE ON THE MARKET FOR A LONG TIME!

A good artcle came out yesterday in the Stockton Record detailing the current market trends for buyers....

Current local market trends.... Click on the below link to see full article from the Stockton Record. Looks like the market is even picking up over there. This has been a fact for a few months now in Tracy...... B

Buyers frustrated with market Foreclosure glut leads to intense competition

By Bruce Spence
Record Staff Writer
July 21, 2008 6:00 AM


The housing downturn, now permanently embossed with a "foreclosure" icon, is offering many the chance to buy when only a few years ago soaring prices had put owning a home well out of reach.

For many, buying a home still seems out of reach these days, although for different reasons. J.P. Wheeler, a 31-year-old elementary school teacher, and his wife, Amanda, a Social Security claims representative, have been actively looking to buy their first home, going out to house hunt once or twice a week for the past four months.

Most houses on the market are foreclosures, and that's where the best possible prices appear to be, he said. But there are also lots of people who see this as a good time to buy, he now knows. The two have made offers - all over asking price - on three houses and have yet to get any of their offers accepted.

Their most recent attempt involved competing with five other potential buyers making their final, best offers on a 2,000-square-foot house listed at $280,000 in the Brookside area of north Stockton. The Wheelers came in second with an offer of $335,000 - 20 percent above the asking price.

"I don't like to count my chickens before they hatch, by any stretch, but I thought that was a very aggressive offer," J.P. Wheeler said. "I was surprised it didn't come to fruition. ... It makes you scratch your head, wondering what more you can do."

Frustration perhaps best defines the feeling, he said. "Definitely not anger," he said. "I understand banks are trying to make money, and I'm trying to get a deal."

Stockton-area real estate brokers and agents say that has become a common experience in recent weeks because of increasing competition among would-be buyers since banks began cutting prices on foreclosure holdings late last year, and sales have jumped five months in a row.

The dominance of foreclosures in the home-sales market had driven down prices brutally.

The median selling price countywide has declined from a peak of $425,000 in July 2006 to $220,000 last month - a 48 percent drop over two years and the lowest monthly selling price level since April 2002, according to figures from the latest Coldwell Banker Grupe-TrendGraphix monthly sales report, based on Multiple Listing Service data.

The competition often feels intense and initially surprises would-be buyers, leaving them feeling as if they're in a bidding war, agents and brokers said.

"This is a really strange time," said Lela Nelson of Lela Nelson Realty in Stockton. "We've never experienced this kind of market before." Cynthia Ruiz and her partner, Jesse Alonzo, recently bought a three-bed, two-bath foreclosure home in Stockton that they were able to get for $220,000, and they're happy, because they got a good deal.

But Ruiz said foreclosure property prices seemed to be set artificially low to boost
competition and drive up offers. For example, the couple made an offer of $215,000 on a house initially listed at $185,000 but got outbid - a frustrating experience, she said.

"The starting prices are real attractive, but what they're selling for is more than they listed it for," Ruiz said. "It's very misleading."

Mian Quddus, a Santa Clara man who took a foreclosure bus tour in Stockton this past spring, had been eyeing houses in hopes of finding a good deal as an investment and, later, a retirement home. He found a couple of properties he liked but decided not even to make offers, because he heard there were already a lot of people lined up wanting to buy.

"So it didn't feel right going for it," he said. "I really didn't want to get into a bidding war." Even the professionals looking for a deal are getting frustrated competing for foreclosures. Jerry Abbott, president and co-owner of Coldwell Banker Grupe, Stockton, has been scouring the area for a good foreclosure house on behalf of his son and daughter-in-law.

He's looking in the $300,000 to $320,000 price range and offering $350,000 minus $9,000 closing costs, but the competition is so fierce that he's netted nothing with 10 offers, and three more are pending.

"I'm just writing offer after offer for them, and we can't get anything," he said. "There are a lot of people looking to buy in that price range, because those homes sold for up to $700,000 only a few years ago."

Sylvia Wong of Sylvia Wong Realty in Stockton represents several banks selling foreclosure properties in the area. They usually set the price pretty low to encourage multiple offers, and it works all the time, she said. Wheeler said he and his wife intend to keep looking for that very nice house at a very nice, reasonable price - an affordable home where they can raise a family. "We're just going to keep plugging along, try not to get too frustrated and know something's going to shake loose for us," he said.

COUNTY HOME SALE UPDATE:
A total of 921 single-family homes were sold last month countywide, up from 859 in May, That is the highest monthly tally of closed escrow sales in the county back through January 2002, the oldest data on record with TrendGraphix. Year to year, that is more than a threefold increase from 303 closed sales in June 2007. Eight out of 10 sales are foreclosure properties, which have been dominating the housing market since the first of the year.

Brian Barringer

Congradulations to Rachel and Daniel !!!

Tracy Real Estate Market Report For July 9th 2008

Local Market Stats

The following information is from the local MLS database, as of July 9,2008 and is compared to (May 29,2008). If you are interested in a little more market information feel free to give us a call, we are always happy to talk about the market.

Summary:

The sales are up and prices are down. This is a good sign. We are close to hitting bottom on the housing market. Seven out of ten buyers are using F.H.A* financing, asking for 6% credit back from the bank selling the REO* home. Most homes will have more than one offer on it within days of hitting the market if it does not need a ton of work. The sellers, the banks, are looking for a “down payment” from the buyer. They are frowning on F.H.A loans that are asking for 3% back towards a down payment. If there is no other offer with a down payment they will then consider a buyer with a F.H.A loan. The lenders feel we are heading for the same problem if there is not some type of commitment from the buyer (I.e., down payment from the buyers in the range of 3%; the lowest to the best in lenders eyes is 20%.) Buyers have to be patient, this is not a regular market. It is a market controlled by the banks because they set the prices, which as of the last sixty days have been very aggressive price adjustments. Some buyers still don’t realize this and try low ball offers and find out the lenders do not go back and forth on counter offers. They usually will counter the highest and best to all offers. Which means the buyer has one chance to increase their offer. After that, the lender will not counter back. They will not do business with you anymore on that home. There are simply so many other buyers out there. The prices and the interest rates are at all time lows and many buyers are taking advantage of these prices. It’s that simple this market is driven and controlled by the banks!

But there is a lot of inventory to compare, 75% of homes need exterior and interior paint, carpet, and new front and back landscaping. The other 25% are short sales and they are simply a waste of time. The lenders are overwhelmed with the amount of homes they have that are actually owned by the bank. Their eight hour shifts are spent selling their already bank owned homes and will spend little or no time on short sales. This means that a buyer may wait sixty days for an answer to their offer, and most buyers are not willing to that when there are so many other homes to buy that get a quicker response. Also, the banks know that the short sale homes are still occupied and maintained and usually “show” a lot better than the REO’s, so they will also want a premium price for short sales. Another reason buyers do not want to get involved with the short sales!

Get the “Pros” in your corner and contact the Barringer Team.

E-mail us at tiger@bpbarringer.com or call us at 1-800-894-7282.

* F.H.A– federal housing authority
* REO– “real estate owned” means a bank owned home

Tracy, CA

ACTIVE Status

Total # of residential properties for sale in the city of Tracy: 712 (762)
#of REO (foreclosures): 283 (294)
# of Short Sales: 329 (342)
Average # of days on market: 84 (88)

The median price of all homes for sale in Tracy: $279,000 ($299,000)
The average price of all homes for sale in Tracy: $295,631 ($319,241)

Lowest priced home: 1bd/1ba/502 sq. ft./$89,000
Highest priced home: 6bd/8ba/4,508 sq. ft./$1,299,900

PENDING Status

Number of properties currently under agreement: 426 (376)
# of REO: 334 (300)
# of Short Sales: 47 (29)
Average pending price: $290,236 ($297,597)

Average pending home is 4bedrooms, 3 baths, 2,089 square feet at a price of $297,597 that stays 51 days on the market.

SOLD Status

Residential property sold over previous 30 days: 153 homes or $44,961,773 in sales
(113 homes or $33,257,113 in sales)

REO’s sold in the last month: 138 (96)
Average sale price: $289,825 ($294,311)
Median sale price: $270,000 ($300,000)

High: 900K (6bd/5ba, 5,064 sq. ft. home)
Low: 149.9K (2bd/1ba 840 sq. ft. home)