Beautiful stream that runs through your back yard is a sight to be savored. Nice view of the stream from all the rear windows. Remodeled kitchen and newer windows make this home a joy to be in. The rock fireplace rounds out the cabin feel of this home. Grab your fishing pole & walk along the stream to catch dinner. RV parking w/septic hook-up. Out building or shop for your hobbies. Turn key ready!

Great Stucco 3 bedroom 1 bath home in Anderson with an inground pool. Hardwood floors, new paint inside. Single car garage and a laundry room off the garage. This home will go FHA no problem. A lot of work has been done and a clear pest report will be delivered to the buyer. This is a move in ready home priced to move now.

"Shasta County home values have hit the bottom, economist David Gallo told a gathering of community leaders Wednesday in Redding - an opinion borne out by median sales prices, which were up for the third straight month.

"Don't you already see some signs of that in Redding?" Gallo said of a housing recovery during a two-hour presentation at the McConnell Foundation. "I think if mortgage rates and points remain at current levels, we can expect to see rising home values within a year."

Gallo's forecast is based in part on the trend line of inflation-adjusted home values in Shasta County that he's tracked since 1999. The actual median value of homes in Shasta County has never dipped below the trend line - until recently.

"I've concluded housing prices have bottomed out," Gallo said.

Gallo's prediction came as statistics released this week by DataQuick Information Systems show the median sales price of a home in Shasta County in August rose for the third month in a row. The median is the price where half the homes sold for more and the other half for less.

DataQuick reported that the median sales price in August was $201,250, up from $190,000 in July. The median sales price in August 2008 was $225,000.

Home values in Shasta County bottomed out for the year in March when the median sales price plunged to $177,000.

The median sales price in Shasta County peaked in March 2006, when it reached $300,000.

But while values are up, home sales in Shasta County in August dipped to 148, down from 180 in July, and were at their lowest level since April, when there were 131 closed escrows.

It's a sign that the area's housing market is still somewhat volatile.

Told of Gallo's forecast, two north state real estate agents said values have stabilized in some price ranges, namely for homes priced below $250,000, where multiple offers aren't uncommon."

Nice country building site with road cut onto the property. There are views of Mt Shasta, Lassen and the city of Redding. A natural spring is just 300+-ft away from the building pad. The property was perked a couple of years ago. The land is mostly flat with only a few rocky areas. This will make for a nice horse or cattle ranch.

This is bare land South of Pattymocus Look Out. Great recreational property. There is an road to the property via Ball Rd. This is a great area for deer and other wildlife. Pictures to follow. Google earth location is approximate!

Freddie Mac reported the following for other rates for the week:

• 15-year mortgage rates: averaged 4.68 percent, down from last week's 4.81 percent. Last year at this time: 5.64 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 5.04 percent this week, a drop from last week's 5.23 percent. Last year at this time: 5.37 percent
• 1-year ARMs: averaged 4.8 percent, down from last week's 4.94 percent. Last year at this time: 4.98 percent

"Mortgage rates followed bond yields lower this week as recent economic reports suggest the economy is still slowing, which reduces the future threat of inflation," says Frank Nothaft, Freddie Mac's chief economist.

Source: Freddie Mac(02/19/09)

The use of mortgages insured by the Federal Housing Administration is soaring in the Capital Region, growth that comes as many home buyers are struggling to qualify for more traditional loans. Many lenders, skittish as foreclosure and default rates rise, have discontinued mortgages for borrowers with less-than-perfect credit or little saved for a down payment.

Credit standards for FHA loans, by contrast, are more relaxed. And while many loans now require that borrowers put 20% down, FHA loans mandate just 3.5%.

“Most of the programs with minimal down payments have all gone away,” said Lisa Fortin, a senior mortgage consultant at First Priority Mortgage, a RealtyUSA subsidiary in Clifton Park. “FHA is pretty much the only product still available.”

First Priority says FHA loans grew from about 8% of mortgages it originated in 2007 to about 40% today. Other brokers and lenders in the Capital Region report similar upticks.

And national numbers show the same trend: The U.S. Department of Housing and Urban Development says FHA loans accounted for just 3.7% of all home loans in its 2006 fiscal year, when subprime and other mortgage products for lower-income buyers were widely available.

But by September, with the credit crunch taking hold, the percentage of home loans backed by the FHA was 21.1%, according to HUD. (September is the most recent month for which the agency has data.)

In raw numbers, the FHA backed 141,000 mortgages in September, about three time the number of a year earlier.

Observers say FHA loans have largely shed the stigma they once had as a loan of last resort for those with lower incomes or shaky credit.

Also, said Sandra Nardoci, president of the Greater Capital Association of Realtors Inc. and an agent at Prudential manor Homes in Latham, the FHA program “used to be a lot more cumbersome than it is today.”

In a sense, the rising popularity of FHA loans during a widespread economic crisis is apt, because the program was created during the Great Depression in an attempt to boost stagnant real estate markets.

Today, the loans are available for as much as $292,100 in most of the Capital Region, or $373,950 for a two-unit property. Borrowers must also take out mortgage insurance-money that helps fund the program.

The FHA does not originate the loans. Instead, it insures them against default, making them a safer bet for lenders.

The loans, which are also available for refinancing, are widely used by first-time borrowers, including many who are now eager to take advantage of the drop in real estate prices in recent months.

“People who get into these mortgages are thrilled to death,” said First Priority’s Fortin. “It’s a great way to get into a home.”

FHA loans do have drawbacks, including the mortgage insurance requirement and interest rates that are generally higher than those available for other loans.

“It’s not the cheapest product out there,” said Therese Raco, an Albany-based administrative vice president at M&T Bank, where FHA loans now account for about 35% of Capital Region mortgages.

“But it’s an option if you’re not qualifying for other loans,” Raco added. “It’s an avenue for home ownership.”

On the rise

Loans backed by the Federal Housing Administration are growing in popularity because of the credit crunch. Use of the loans grew rapidly as other types of mortgage credit became more difficult to obtain.

Time period FHA loan market share

Fiscal year 2006 3.7%
Oct. 2007 6.4%
Jan. 2008 7.9%
April 2008 13%
July 2008 17.1%
Sept. 2008 21.1%

Source: U.S. Department of Housing and Urban Development

Copyright © 2009, Albany Times Union, N.Y.
Distributed by McClatchy-Tribune Information Services.

I5 frontage with a new set of office buildings adjacent to the south of the property. Plenty of mature trees make a nice setting. Zoned General Commercial but could be a mix of commercial and office buildings. Utilities are immediately available including city water and sewer services. There are some old homes that need to be removed but most of the cleanup on the property is complete. There is 490ft of frontage on Ventura and the I5 freeway and 487ft on Ventura St with an average depth of 180ft. This is priced to sell.

RISMEDIA, January 16, 2009-(MCT)-Every day, more people slip into the foreclosure whirlpool and spiral downward toward the day they may have to leave their home. What should you do if you are on the verge of getting a foreclosure notice?

First and foremost, industry specialists say, you should resist the natural human tendency to freeze up. Face the issue head on and prepare for days and weeks of making phone calls and corresponding with people who may be able to help.
“Don’t assume it’s too late to act,” said Ralph Roberts, a consumer advocate in Michigan and co-author of Foreclosure Self-Defense for Dummies. “As long as you are residing in the home, you probably have some opportunity to keep your home.”

Roberts, a Realtor who lost his home to foreclosure back in the 1970s, said people facing foreclosure have more avenues to pursue than they might realize-certainly more than the typical “pay up or move out” that many people think is their only choice.

Potential solutions include:

- Negotiating a modification of the loan.
- Refinancing the loan.
- Listing the home through an agent for a possible “short sale.”
- Selling the home to an investor on your own.
- Declaring bankruptcy.

Short sales-in which the lender agrees to take less than is owed on the home, writing off some or all of the loss to avoid the expense of a foreclosure-typically are handled by real estate agents, which at least takes some of the pressure off of a harried homeowner. Many professional real estate agents are working more short sales these days and have buyers lined up looking for bargains, though the process can be slow and frustrating.

“The banks are just not moving fast enough. They are sitting on these, and it’s outrageous. Something’s got to be done about that” at the national level, said Ernst Urbainczyk, a veteran agent with Keller Williams Heritage Realty in Lake Mary, Fla. Lenders may also reject short-sale offers, sometimes leaving the seller with little or no time to prevent the foreclosure.

Matthew Englett of Kaufman Englett & Lynd, an Altamonte Springs, Fla., law firm that specializes in foreclosure defense, real estate litigation and bankruptcy, said there are usually several different defenses a borrower can take to dispute a foreclosure, including “wrongful or misleading conduct on behalf of the lender or its agents.”

As the case moves forward, the law firm negotiates with the lender to try to get it to modify the mortgage with a lower interest rate and loan amount.

“In many cases, that would mean the principal would have to be reduced,” Englett said. The law firm charges a flat fee ranging from $1,750 to $2,500 for its foreclosure-defense cases.

© 2009, The Orlando Sentinel (Fla.).
Distributed by McClatchy-Tribune Information Services.

Pending home sales eased against a deteriorating economic backdrop but remain in a stable range, according to the National Association of Realtors^®.

The Pending Home Sales Index,¹ a forward-looking indicator based on contracts signed in October, slipped 0.7 percent to 88.9 from an upwardly revised reading of 89.5 in September, and is 1.0 percent below October 2007 when it was 89.8.

Lawrence Yun, NAR chief economist, said a review of the past year is instructive. “Despite the turmoil in the economy, the overall level of pending home sales has been remarkably stable over the past year, holding in a generally narrow range,” he said. “We did see a spike in August when mortgage conditions temporarily improved, which underscores two things – there is a pent-up demand, and access to safe, affordable mortgages will bring more buyers into the market.”

Conditions remain uneven around the country, but some areas that are showing healthy gains in pending home sales from a year ago include many Florida and California markets, Providence, R.I.; Lansing, Mich.; Oklahoma City; and Las Vegas. ²

The PHSI in the South jumped 7.8 percent to 95.9 in October but remains 2.9 percent below a year ago. In the Northeast the index rose 0.6 percent to 68.1 but is 14.1 percent below October 2007. The index in the Midwest declined 4.3 percent to 79.7 in October and is 6.8 percent below a year ago. In the West, the index fell 8.7 percent to 103.7 but is 17.4 percent higher than October 2007.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said he’s hopeful about considerations by the U.S. Treasury. “Efforts to bring down mortgage interest rates demonstrate a clear understanding of the role housing plays in stabilizing the economy,” McMillan said. “We’re very encouraged by all of the proposals getting serious consideration in Washington to help home buyers. More sales will stabilize home prices by bringing down inventory, and would lessen foreclosure pressure.”

Yun expects growth in the U.S. gross domestic product (GDP) to contract through the first half of 2009, then stabilize and expand in latter part of the year – lifted by a home sales recovery. “Given the critical role of housing in an economic recovery, we’re confident sufficient stimulus will be offered to bring more buyers to the market,” he said.

Looking at middle-ground assumptions, existing-home sales are forecast to total 4.96 million this year, and then increase to 5.19 million in 2009 and 5.55 million in 2010.

New-home sales for 2008 should total 486,000 this year, decline to 393,000 in 2009 and then grow to 446,000 in 2010. Housing starts, including multifamily units, are projected at 934,000 units in 2008 and 731,000 next year before rising to 772,000 in 2010.

“Price projections are challenging in an environment with so many variables and divergent local conditions,” Yun said. “The home price correction to date has brought prices in line with fundamentals, but buyer pessimism could cause prices to overshoot downward, resulting in further economic deterioration.”

The 30-year fixed-rate mortgage will probably decline to 5.6 percent in the first quarter, rise slowly to 6.0 percent by the end of 2009, and average 6.2 percent in 2010. NAR’s housing affordability index is likely to remain quite favorable, averaging 138 in 2009.

The unemployment rate is estimated at 7.2 percent in the first quarter, rising to 8.3 percent by the end of 2009. Inflation, as measured by the Consumer Price Index, is seen at 0.7 percent in 2009. Inflation-adjusted disposable personal income is expected to grow 1.5 percent in 2009.

NOVEMBER 2008 REDDING SALES INFORMATION

In the past few days both the Standard & Poor's Case-Shiller and the Federal Housing Finance Agency (FHFA) released home price info for Q3 2008.

The FHFA reports Redding depreciating 6.63% in Q3 2008 and 14.07% for the past year.  This is fairly consistent with information summarized from MLS.

There were 73 home sales in Redding in November 2008 per Shasta MLS with an average price/SF of $151.76.

The average sales price, average price/SF and number of home sales in Redding over the last five quarters were:                
                        
                      
     ;                    

                       
There is still positive news out there:

1. There were more sales in Redding in Q3 2008 than Q3 2007.
2. There have been more sales in Redding in Q4 2008 than through the same date in Q4 2007.
3. Home prices in Redding, while dropping this past year, are up 31.14% over the past five years.  Real estate is always a good long-term investment.
4. FHA has come out with several new programs to help both first-time buyers and struggling mortgage holders.
5. Home prices are now much more affordable.

To quote Warren Buffett, " . . . be greedy when others are fearful."  It doesn't get much scarier than the California real estate market this past year -- buying opportunities abound.

The government and economists finally figured out that we're in a recession -- and that it started one year ago.  My guess is that when our real estate market finally hits bottom, it will probably take those same parties another year to realize that also.

Please consider our office for your client's appraisal needs.  We also provide appraisal services for divorce and estate situations.  Should you have a client that fits either of those needs, please keep us in mind. 

Thank you,

Bob Sprenkel
Sprenkel Appraisals
P.O. Box 493818
Redding, CA 96049
(530) 243-9841 Phone
(530) 243-9987 Fax
sprenkelappraisals@sbcglobal.net
www.sprenkelappraisals.com

I wanted to share with you some information on the new FHA Refinance program. Mark Stander is with Coldwell Banker Mortgage and he shares the following with you.

I heard a quote from Warren Buffet the other day.   

    "When I see people get greedy I get Scared...When I see people get Scared I get Greedy"

Think about it.

View acreage with power, phone and paved road! End of the road acreage! View the Lassen Range and the western mountains from the cleared building site. Many oak trees and creek frontage. The seller says he will look at all offers! Previously listed at $229,000 Reduced to $109,900. What a DEAL ! ! ! Only 7+- miles from I5.

If you have not owned a home in three years, you qualify as a first time home buyer. If you buy a home after April 9, 2008 and before July 1, 2009, you qualify for this credit. Call your friends who just bought a home since April 9th and tell them they may take $7,500 off their tax bill if they qualify. It has to be your principal residence, so rentals do not count.

The tax credit is 10% of the cost of the home, up to a maximum of $7,500. This is not an additional deduction that lowers the amount of income to be taxed, it is a tax credit. In other words, you take $7,500 off your tax bill. But there is a catch; the credit you receive now is actually an interest-free loan that must be repaid.

The loan has no interest, and will be paid back over 15 years. You get the credit on your 2008 taxes, but you start paying it back on your 2010 taxes that are due in 2011, so you get at least two years without a payment. You pay back 6.67% of the credit each year, so for a $7,500 credit the payment is $502.50 per year. If you stay put for 15 years, you pay it off with no interest.

What happens if you sell the house? You pay the balance back at the closing. So, you get $7,500 now, and pay the rest of it back if you make money on the sale of your house. What happens if you do not make enough money when you sell your house? They forgive the rest of the debt.

Other restrictions stipulate that you have to buy your first house in three years before July 1, 2009, not have super high income, not use bond financing and buy anywhere in the US.

If you'd like to learn more about this program, please call me!

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Even though interest rates have gone up in the last six months, they are still near historic lows. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, if home prices come down a little further but interest rates go up, it could cost you even more to service a mortgage on an identical home!

While a home is a major investment, it is also the center of your personal life. It's important to live in a home that reflects your taste and values, yet is within your financial "comfort zone." To that end, it may be more important to lock in today's relatively low interest rates and low home prices, rather than to hope for a further break in prices in the future.

Please give me a call if I can be of any assistance in determining how much home you can afford in today's market.