Coastal Real Estate News

On May 30th, Thera Buttaro, Broker/Owner of Sonoma Coast Living Real Estate Services achieved a new designation of EcoGreen Cerified™. The course covered 14 weeks of class room instruction, on-sight visit to Non-profit organizations deeply involved in creating products that comply with and support EcoGreen real estate behavior.

The instructors were from PG&E, Solar Living Institute, Occidental Ecology Center Water Institute, Dominican University Green MBA Program, New College Eco Dwelling Department Architect and Instructor. A fabulous wealth of knowledge was shared to all. From professionals who have been committed to EcoGreen issues for many years, typically 15 years each, and some significally longer.

The goal of Sharon Ledbetter, Director, who created the designation for CAR, (California Association of Realtors), is to bring factual knowledge to Real Estate agents and create practical awareness where we can all alter how we live and where we live with an eye at looking at the opportunities we have now to change our actions to reduce our carbon footprint now.

HOW DO WE DO THAT?

• turn of all lights when we leave a room
• unplug the transformers that charge out devices when not in use
• change out all light bulbs to CFLs
• purchase energy star rated efficent appliances
• conserve, reuse, and recycle
• design our landscape with natural plants that are drought resistant (no lawns)

Well, certainly many more simple things can be done. It all starts with looking at our lives differently. I will be including links, pdfs and other resources you can use to begin your awareness. I even had a client who called to ask me if I noticed any raising of the ocean level. She was concerned about the slightest change that might effect her ability to sell. Yes it is an ocean front home I sold her 8 years ago but everyone is aware that our planet’s climate is changing.

Let me know how you see your world.

Happy weekend to all,

Thera Buttaro

Senators Feinstein and Boxer to Permanently Increase the FHA and GSE Loan Limits!

Background

The Economic Stimulus Act retains the GSE current national limit of $417,000, and for higher cost areas in 26 states and the District of Columbia increases the limit to 125 percent of the area median, capped at $729,750.  For FHA, the Economic Stimulus Act raised ALL the loan limits from a base of $200,160 and a cap of $362,790 to a new base of $271,050 and a cap of $729,750.  The new GSE and FHA limits are slated to expire on December 31, 2008.

Why Higher Loan Limits Are Important:

The recently enacted economic stimulus package raised FHA, Freddie Mac and Fannie Mae loan limits to levels more accurately reflecting home prices.
The economic stimulus loan limits for FHA and the GSEs are equal to 125% of the area median home price, as compared to the previous limits of 100% of the national median for GSEs and 95% of the local area median for FHA.
For FHA, limits went up nationwide – with the bottom limit rising from $200,160 to $271,050 and the cap in high cost areas rising from $362,790 to $729,750.
For GSE limits, 26 states and the District of Columbia today have communities with limits over $417,000 (the regular GSE limit) — more than 240 communities in total.
According to NAR estimates, permanent limits would enable more than 500,000 borrowers with loans above $417,000 to refinance to lower interest rates.
NAR estimates that a permanent increase in the loan limits could mean as many as 350,000 additional home sales, lower inventories, and a 2 to 3 percent increase in home prices next year.
NAR also estimates that a boost in home prices could reduce the number of foreclosures by as many as 210,000 by making it easier for consumers to refinance or sell.
The new limits have not been in effect long enough to have a substantial effect on the housing market.
For More Information
Please see NAR’s Action Center at http://naractioncenter.com/

The North Bay Association of Realtors® LGRC traveled to Washington DC May 12th through the 17th. Committee members included Kathy Hayes, Governmental Affairs Director; Cynthia Wood, Committee member and CAR Director; Terriann McGowan, LGRC Committee and FPC to Lynn Woolsey; Laura Hall, LGRC; Terry Wonderlick, NORBAR Director; and myself Thera Buttaro, LGRC. The event is the mid-year NAR conference that focuses on legal issues of real estate ownership.

Talking points were discussed in meetings with Mike Thompson, Congressman of the 1st district and Lynn Woolsey, of the 6th. Both are aware of the issues important to real estate ownership and our industry.

FHA loan program needs modernization. H.R. 1852 and S. 2338 passed in 2007 has made FHA loans a viable way for qualified buyers to purchase a home from the large stock of foreclosed and short sale listings. FHA allows 3% down and a 30 year fixed interest level payment mortgage. With the great prices of these on-market properties many first time home buyers can now purchase their own home and it cleans up the sub-prime market properties. More updating of the documentation requirements are needed.

GSE - “Government Sponsored Enterprise”, this allowed the raising of loan limits for Fannie Mae and Freddie Mac better known as conforming loans. For Sonoma County it is now $725,000 and is due to expire at the end of 2008 unless this is made permanent now. The House did pass this last week as lead by Senator Dodd Chair of the Senate Banking Committee. This issue does effect VA, teachers, and nurses that must have these permanent programs to preserve their equity and home ownership.

Tax credits - H.R. 5720 and H.R. 3221 have passed but the full House needs to vote approval. H.R. 5720 provides a temporary tax credit for those who purchase a principal residence. H.R. 3221-The Foreclosure Prevention Act of 2008-gives tax incentives to clear the current overload of housing inventory. Both bills are now part of the greater economic reforms working their way through congress.

Flood Insurance Reform - NFIP expires on 9/30/08 this addresses the affordability of property insurance in disaster-prone areas. This is the Gulf Coast, New England, and our local Russian River area.

Small Business Health Care - (S. 2795) 46 million have no health insurance. This would allow legislation for self-employed to group policies under federal and state purchasing pools.

You may Google any of the H.R. or S. numbers for greater details and background. If you would like more information on my involvement just let me know.

2007 Coastal Market Summary

At the beginning of each calendar year I gather the data from my MLS of the sold Homes and Land. So with the first blog communication to you I share the historical perspective. Not all things in print are true (Newspaper articles on RE). And not all facts apply to all areas equally. So take a look and let me know what questions you might have.I am continuing to search for ways to provide facts to clients on the ever changing Sonoma Coast market. Trust me it does change week to week and sometimes daily. My blog will allow me to share with you almost instantly what is happening and why.Please share your thoughts with me and experiences as well. Happy reading.