MONDAY, December 14th Recent economic data point to better than expected consumer spending gains in October and November. Revitalized spending is critical to an economic turnaround as it accounts for nearly two-thirds of total economic activity. While the near term outlook for spending is generally positive, long term gains need support from job and income growth. Household wealth, inflation and credit conditions also have an impact. Recovery will not be complete until the economy starts producing jobs.

TUESDAY, December 15th The producer price index jumped 1.8% in November led by a 6.9% surge in energy prices. Food prices were also higher. Over the past year, producer prices have climbed 2.7%; despite this, weak demand will soften near-term producer inflation going forward. Excluding food and energy prices from the index, the core PPI gained 0.5% on the month and was up a mild 1.2% on the year. The monthly surge in core prices was attributable to higher vehicle prices related to the new model year. Industrial production increased 0.8% in November led by a rebound in factory activity. Expansion in manufacturing activity is expected to continue going forward as firms work to rebuild lean inventories. In another encouraging sign, the capacity utilization rate jumped to 71.3% last month, its highest level of the year, from 70.6% previously. Homebuilders were more pessimistic in December. The NAHB housing market index fell to a level of 16 this month from a reading of 17 last month. Builders downgraded current single family sales as well as projections of sales six month from now. Despite the decline in the overall index, builder sentiment did improve in the West and Northeast during the month.

WEDNESDAY, December 16th The MBA mortgage applications index rose 0.3% to 667.3% for the week ending December 11. Although mortgage activity is still 20.7% below its year ago level, there has been little net change in overall mortgage activity in the past 5 months. The consumer price index increased 0.4% in November, matching expectations. The CPI is now up 1.9% on the year. Gains were modest in the headline number even with a surge in energy prices. Excluding food and energy prices, the core CPI was unchanged on the month and up 1.7% on the year. Consumer prices are expected to remain soft in coming months as the economy finds its footing. Housing starts jumped 8.9% in November to an annualized pace of 574k, roughly in line with market expectations. November starts rebounded from a 10% decline in October. Housing starts have been climbing irregularly higher since touching a record low annual rate of 479k in April. As widely expected the FOMC voted to keep rates in an exceptionally low range of 0% to 0.25% in order to support ongoing recovery in the economy. The Committee acknowledged improvement in the economy with very subdued inflation. Policymakers maintained their commitment to buying up to $1.25 trillion of agency mortgage backed securities and up to $175 billion of agency debt. In addition the Fed anticipates that most of their special liquidity programs will expire on February 1, 2010. The Fed and fiscal and market forces have generated the beginnings of an economic recovery and resolved much of the distress in financial markets. With their mission largely being accomplished, details of the exit strategy are emerging.

THURSDAY, December 17th Jobless claims rose 7k to 480k for the week ending December 12. Initial jobless claims have maintained a level below 500k for the fourth week in a row. The labor situation is improving slowly; however unemployment claims at still at elevated levels. The index of leading economic indicators rose 0.9% in November compared to market expectations for a 0.7% gain. The increase was led by a steeper yield curve, decline in jobless claims, an increase in building permits and longer factory hours. The LEI has now increased for 8 consecutive months for the first time since 2004. Moreover, the index is up by an annual rate of 9.6% over the last six months which indicates continued expansion in economic activity over the next six to nine months.

Obama's New Plan

Obama’s standardized short-sale plan could help troubled homeowners
The U.S. Dept. of the Treasury recently announced the Home Affordable Foreclosure Alternatives Program (HAFA), which provides instructions for lenders and servicers participating in the Making Home Affordable Program and Home Affordable Modification Program (HAMP). The purpose of HAFA is to create an alternative to foreclosures for homeowners unable to successfully modify their troubled mortgage under HAMP, and to streamline the short-sale process.

MAKING SENSE OF THE STORY FOR CONSUMERS

• A short sale is when the lender agrees to accept less than the amount owed on the mortgage instead of foreclosing. Many homeowners and REALTORS® have expressed their frustrations in the short-sale process, criticizing lenders for the amount of time it takes to process and approve a short sale. The CALIFORNIA ASSOCIATION OF REALTORS® listened to members’ concerns, worked with other industry groups, and responded by helping to create provisions to streamline the short-sale process.
  
  
• The HAFA program simplifies and encourages short sales and deeds in lieu of foreclosure. It will permit pre-approved short sale terms before a property is listed; release borrowers from future liability for the debt; provide financial incentives to borrowers, servicers, and investors; and prevent servicers from attempting to reduce real estate commissions established in the listing agreement as a condition for short sale approval.
  
  
• Under terms of the program, the borrower and/or listing broker have three business days to submit an executed purchase offer and related documents to the servicer on a short sale, and the servicer has 10 business days to respond to an executed purchase offer.
  
  
• The servicer also will determine the minimum net proceeds for a short sale. If an offer presented to the servicer by the borrower or listing broker meets the net proceeds requirement, then the servicer must accept it.
  
  
• The program currently is available only for non-Fannie Mae- or Freddie Mac-owned loans up to $729,750 and is scheduled to take effect April 5, 2010. However, C.A.R. expects that many lenders will choose to implement it before the deadline.

CNN Money for November 19, 2009

CNN Money

Make money in 2010: Your home

Following three years of declining home prices, the end of the nationwide housing slump may be in sight. Home sales consistently have been rising, the surplus of houses is shrinking, and most economists believe home values nationwide will hit bottom in the second half of 2010—but not before declining an additional five to 10 percent. That’s good news for homeowners hoping to sell or rebuild lost equity.

MAKING SENSE OF THE STORY FOR CONSUMERS

• Mortgage rates currently are below 5 percent, and should remain low for the next few months, partially due to the Federal Reserve’s ongoing purchase of mortgage-backed securities. However, if the economy quickly turns around and inflation fears resurface, rates could rise to as high as 6.5 percent, slowing demand and pushing down home values.
  
• According to one analyst, the market will remain tilted in favor of buyers over the next year, but that power gradually will be reduced as conditions in the housing market continue to improve.

• Buyers hoping to purchase or invest in a lower-priced, entry-level home should expect some competition from investors and other buyers. To remain competitive, buyers are advised to put down as much cash as possible, as many investors are offering to make all-cash deals. Another factor to keep in mind is that offers below listing price often are outbid by others.

• Some home sellers are postponing listing their homes until the market recovers. However, timing the market is difficult, so homeowners thinking of selling should carefully weigh their options. Congress recently expanded the federal tax credit to include some existing homeowners, but they must close before June 30, 2010 to qualify. Although existing homeowners are not required to sell their current home to qualify for the credit, those who plan to rent out their current residences should be aware that many lenders require borrowers to show they are financially capable of paying two mortgages, or show rental income for at least six months. Discretionary sellers should discuss their options with a REALTOR® before making a decision.

As a side note to this article, I would like to stress the BOLD paragraph. As we hover around the absolute bottom of this market, investors are coming out with all cash offers on homes that would be ideal for first time home buyers. Unfortunately, I have seen this happen with putting in offers of 3 1/2% down and watching them get tossed to the side due to "stronger" offers. My suggestion is get pre-qualified now! Once we have that approval letter in hand we can act fast and put in our offer BEFORE these investors have a chance to make a move.

Please give me a call or email if you have any questions and I look forward to serving you!

Tax credit extended!!!

More good news for consumers, our members, and the housing market recovery. Following the Senate’s favorable vote yesterday, the U.S. House of Representatives just voted 403 to 12 to extend the home buyer tax credit, expanding the parameters to include existing homeowners and not just first-time buyers. As you may know, C.A.R. and our partners at NAR have worked for months urging Congress and the Senate to extend and expand this crucial piece of legislation. We expect President Obama to sign the legislation in short order.

As it now stands, the federal tax credit will be extended through April 30, 2010, with a 60-day extension if a binding contract is in place prior to the deadline. First-time home buyers will continue to be eligible for a tax credit of up to $8,000, while existing homeowners will be eligible for a reduced credit of up to $6,500. To qualify for the $6,500 credit, existing homeowners must have lived in their current residences for at least five years. The bill also increases the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers to $125,000 and $225,000, respectively. The purchase price of the home is capped at $800,000 in both instances.

Under additional provisions included in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. The legislation maintains the provision that home buyers do not have to repay the credit provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.

Nationwide, more than 1.4 million first-time home buyers were given the opportunity to become homeowners as a result of the Federal Tax Credit for First-time Home Buyers. We expect that number to increase dramatically in the months ahead with this new legislation in place. Thank you to our members who called, wrote, and e-mailed their congressional representatives and voiced their support for the home buyer tax credit. Your voices were heard – today’s vote is a direct result of your actions and involvement.

Shrinking Real Estate 57% fewer homes in OC

The number of homes listed for sale continues to drop, decreasing by 174 listings over the past two weeks (down 2%). That brings the new total to 7,749 listings as of Thursday, according to Aliso Viejo broker Steve Thomas.

• The last time the Orange County housing market was this small: January 2006, when the slump was just getting started.
• Last week’s listings are down 39% from a year ago, when there were 12,790 homes for sale; and it’s down 57% from the peak (17,898 listings in September 2007).
• In addition, 3,166 new deals were signed in October, Thomas reported. That reflects a seasonal dip from this year’s selling peak of more than 3,600 new deals a month last spring.

Said Thomas:

“There is very little fresh, new inventory. The lower the range, the “spookier” it gets. Properties that are priced right and in great condition are flying off of the market with multiple offers and tremendous activity. Buyers new to the market are dumbfounded by all of the competition. Their expectations are of doom and gloom and the ability to “cherry pick” whatever home they are interested in AND at a discount. Yet, just about every agent has pockets filled with buyers who want to buy but have been unable to purchase after losing out on property after property.”

Thomas also calculates a “market time” benchmark tracking how many months it theoretically takes to sell all the inventory in the local MLS at the current pace of deal making. By Thomas’ logic:

• It would take 2.45 months for buyers to gobble up all homes for sale at the current pace, little changed from 2.43 months two weeks ago. But that’s a lot less than 5.19 months a year ago and 14.06 months two years ago.
• Homes listed for under a million bucks have a market time of 1.89 months (57 days) vs. 9.27 months for homes listed for more than $1 million.

Here’s the data, as of last Thursday, for listings; deals pending; market time in months; (note: k=thousand; m=million) last Thursday vs. 2 weeks ago, a year ago and 2 years ago …

Categories	Listed	Deals	Time (mo.)	2 wks. Ago	1 yr. ago	2 yr. ago
• $0-$250k	1,072	669	1.60	1.72	3.72	12.78
• $250-500k	1,994	1,357	1.47	1.42	3.72	12.78
• $500-750k	1,589	679	2.34	2.32	5.39	15.11
• $750-$1m	909	246	3.70	3.76	9.74	12.74
• $1-1.5m	784	132	5.94	6.46	12.40	15.02
• $1.5-2m	440	64	6.88	8.67	24.96	18.20
• $2m-4m	662	38	17.42	19.39	27.85	17.76
• $4m+	377	10	37.70	31.67	49.86	17.50
All O.C.	7,749	3,166	2.45	2.48	5.19	14.06

Ponder inventory trends:

• South County houses sell the quickest
• Shrinking real estate: 57% fewer O.C. homes to buy
• 15% price cuts move million-dollar O.C. homes
• Hardest O.C. city to find a home? Aliso Viejo!
• O.C. homes for sale drop 33% this year
• Portola Hills homes hot, Corona del Mar not
• Homeselling: Portola Hills hot; Corona del Mar cold
• Where do homes sell in less than a month?
• Fewest O.C. homes for sale since early 2006

$699,000 at the beach!! Click "Media" to see the pictures

San Clemente Southwest (SW)		Zip 92672-4336		TGNO 993A6
Orange County (OR)		XSTS Between El Presidente and S Ola Vista
S578119	Media: 8	Builder Tract Other (OTHR)
Bed 4		Model (Z)
Baths 3	Style Traditional	Stories One Level		Floor
View No View				HOA Dues $ 0 + $0	Land Lse/Yr $
ASqFt 1,448 Assessor		YrBlt 1975 Assessor		Land Fee
ALotSize 3,900		Assessor	Dim 40x97	Acres 0.09
Prkng Driveway - Concrete, Garage Attached, On Street Parking
Garage, # cars 2 A	Rem	# Uncovered Spaces	Cprt	# Garages	RV Acc	Range $: No
Range Price Listing: No

Seaside San Clemente Home offering the Coastal Residential Buyer or the Savvy Income Property Investor (In-law Apartment) an uncharacteristic opportunity to own property in the prized Southwest Area of San Clemente. A Private Courtyard accented with Stacked Stone leads you to the front entrance. The living area of the home flows well in a circular pattern from the Living Room, through the Dining Room, Family Room and Kitchen. Amenities include, light-tone laminated flooring, Picture Windows, Large Dining Room, open-on-two-sides floor-to-ceiling Natural Stone Fireplace between Living Room and Family Room, Granite Counter Tops in Kitchen. Master Bedroom with Master Bath are at the rear of the home, Secondary Bedrooms are of Ample Size, Secondary Bath sparkles with Tasteful Tile accents. Plentiful Parking with Two-car Attached Garage and Large Driveway. Emerald Green Grass Backyard is a colorful finish to this desirable property.

Special Conditions: Standard Sale/None

Rooms

Bedrooms Main Floor Master Bedroom			Living Rm
Kitchen Granite Counters			Dining Formal Dining Rm
Total Baths 3 Full Baths 2 3/4 Baths 1 1/2 Baths 0 1/4 Baths 0
Baths Desc
Other In-Law Apartment

Amenities

Pool No Pool		Spa No Spa	TV	Firepl Dining Room, Family Room, Living Room / See Through, Stone / Uses Gas Only
Appliances Cooktop - Gas, Dishwasher, Garbage Disposal, Gas Oven			Water Heater	Other
High or Mid-Rise Amenities			Security

Interior

Heating Forced Air	Cooling Whole House Fan	Floors Laminate, Wall-to-Wall Carpet
Interior Misc
Disability Access None

Exterior/Structural

	Entry Location Ground Level - no steps	Common Walls
Roof Composition/Shingle	Plumbing	Patio Enclosed Patio
Cond	Sprinklers	Doors/Windows
Structures, Other
Exterior Construction Stone, Stucco/Wood

Lot Description

APNO 692-185-02		Zoning	Lot/Block/Tract 73/8/852
Lot		Legal
Sewer In, Connected & Paid	Water District/Public	Water District	Yard Back
Distance to Beach (miles)

Community/Association

HS Dist Capistrano Unified School District		Elemen Concordia	Junior Shore Cliffs		High Sch San Clemente High School
Amenities
Units		HOA Dues $0 + $0				Mello Roos No
Land Fee		Land Lse/Yr $
City Inspection Required No	Builder's Name

Listing Activity

LP/SqFt $482.73

Orig Price $814,000

Prev Price $749,000

Current Price $699,000

Contact Information

	Display Name: Chelsea Schilling DRE License: 01853696 Preferred Phone: 949-310-6404 Preferred Phone Ext: Agent Direct Phone Number: 949-310-6404 Agent Toll Free Phone Number: Preferred Fax: 949-492-3291 Mobile Phone: 949-310-6404 Pager: Voicemail: Blog: Office Phone: 949-492-7653 Primary e-mail address: Schilling7@gmail.com Website address:

3 Homes in San Clemente that you might like

Please click on the link(s) below to view property information.

Client Full Report + Photos