Housing Inventory Snapshot August 31, 07

Santa Clara County, CA
Avg L/Price Med L/Price Avg DOM
SFH under $1M $696,285 $679,000 62
SFH over $1M $1,962,394 $1,495,000 72
Condounder $600K $436,899 $429,500 61
Condo over $600K $739,504 $689,200 48

San Mateo County, CA
Avg L/Price Med List/P Avg DOM
SFH under $1M $735,900 $729,000 62
SFH over $1M $2,381,061 $1,549,000 67
Condo under $600K $461,101 $479,000 66
Condo over $600K $914,895 $759,000 80

MORTGAGE. National Averages (August 31, 07)*
30-year fixed Rate - 6.09% APR - 6.25%
15-year fixed Rate - 5.76% APR - 6.02%
5/1 ARM Rate - 6.12% APR - 7%

* Mortgage rates were collected from publicly available sources (yahoo.com) on the date stated. The accuracy of the information and the availability of these rates are not guaranteed by the publisher. Rates are provided for informational purposes only and are subject to change without notice. Actual market interest rates may vary.

Top 5 Reasons To Use A Realtor

1. REALTORS® subscribe to a strict Code of Ethics—a set of obligations that often go above those mandated by law. Known as the REALTOR® Code of Ethics, these principles embody a strong commitment to fairness, integrity, and moral conduct in business relations. Under the Code of Ethics, REALTORS® put the needs and well being of their clients above anything else.
2. As members of C.A.R., California REALTORS® have access to confidential legal counsel, innovative marketing tools, and an extensive repository of market data. With these resources, REALTORS® are equipped to help you make important decisions throughout the home-buying or –selling process, such as how much home you can afford or what information you must disclose to the other party.
3. Among the top skills REALTORS®’ bring to the table is the ability to negotiate a favorable price. REALTORS® are knowledgeable about the small repairs and improvements you can make to enhance the “salability” of your home. According to the NATIONAL ASSOCIATION OF REALTORS®, the median price of a home sold using an agent is 16 percent higher than a home sold without the guidance of an agent.
4. Your REALTOR® acts as your advocate during each step of the transaction. Whether evaluating buyer proposals or preparing counteroffers, your REALTOR® saves you time by serving as a liaison between you and the other parties of the transaction, prepares and reviews necessary paperwork, and guides you through the process to make sure everything is handled appropriately.
5. REALTORS® are well versed in up-to-date market data, such as inventory levels, time on market, and ratios of list-to-sold prices. Backed by education and experience in the real estate industry, your REALTOR® can help you leverage this market information to aid in your decision-making process.

10 Do's and Don't of Credit

Follow these Top Ten Do’s and Don’ts of credit if you are planning to enter into a loan transaction in the next 6 months:
o DON’T APPLY FOR NEW CREDIT OF ANY KIND. This includes those “You have been pre-approved” credit card invitations that you receive in the mail. Every time you have your credit pulled by a potential creditor or lender, you lose points from your credit score immediately. Depending on the elements in your current credit report, you could lose anywhere from 2-50 points for one hard inquiry.
o DON’T PAY OFF COLLECTIONS OR CHARGE OFFS DURING THE LOAN PROCESS. Paying collections will decrease your credit score immediately due to the “date of last activity” becoming recent. If you want to pay off old accounts, do it through escrow, and make sure that 1) you validate that the debt is yours, and 2) the creditor agrees to give you a letter of deletion.
o DON’T CLOSE CREDIT CARD ACCOUNTS. If you close a credit card account, it will appear to FICO that your debt ratio has gone up. Also, closing a card will affect other factors in the score such as length of credit history. If you have to close a credit card account, do it after closing, and make sure that it is a more recent account.
o DON’T MAX OUT OR OVER-CHARGE ON YOUR CREDIT CARD ACCOUNTS. This is the fastest way to bring about an immediate drop of 50-100 points in your credit score. Try to keep your credit card balances below 30% of their available limit at all times during the loan process. If you decide to pay down balances, do it across the board. Meaning, make an extra payment on all of your cards at the same time.
o DON’T CONSOLIDATE YOUR DEBT ONTO 1 OR 2 CREDIT CARDS. It seems like it would be the smart thing to do; however, when you consolidate all of your debt onto one card, it appears that you are maxed out on that card, and the system will penalize you as mentioned above. If you want to save money on credit card interest rates, wait until after closing.
o DON’T DO ANYTHING THAT WILL CAUSE A RED FLAG TO BE RAISED BY THE SCORING SYSTEM. This would include adding new accounts, co-signing on a loan, or changing your name or address with the bureaus. The less activity on your reports during the loan process, the better.
o DO JOIN A CREDIT WATCH PROGRAM. If you join a credit watch program, you can check your reports weekly, or even daily depending upon the program you select. (When you pull your own reports, you don’t get dinged for a hard inquiry.) This way, if something does show up on your reports that caused your score to go down, you’ll know it immediately, and you may be able to take care of the problem before closing.
o DO STAY CURRENT ON EXISTINGING ACCOUNTS. This includes your mortgage and car payments. One 30-day late can cost you anywhere from 30-75 points.
o DO CONTINUE TO USE YOUR CREDIT AS NORMAL. Red Flags are easily raised within the scoring system. If it appears that you are changing your pattern, it will raise a red flag, and your score could go down.
o DO CALL YOUR MORTGAGE PROFESSIONAL if you receive something in the mail from a creditor or collection agency that you believe may affect your score during the loan process. Your mortgage professional may be able to supply you with the resources you need to stop any derogatory reporting to the bureaus.
By Linda Ferrari, President, Credit Resource Corp.

What do YOU think?

Consumers Show Confidence in the Value of Their Homes
Americans are confident their homes are retaining, even gaining value, according to a nationwide telephone survey of 1,007 adult Americans conducted May 31-June 3, 2007. Here are a few stats from the survey’s findings:
55% say their home would sell for more money now than it would have a year ago.
74% of homeowners say they’re confident they could sell their home within the next six months at a price they think it’s worth.
85% believe their house will be worth more five years from now than it is today.
27% say they’re likely to purchase a better home over the next five years.
“Americans Express Confidence in the Value of Their Homes, Despite Softening Housing Market,” Business Wire, press release by Boston Consulting Group, June 21, 2007.
Consumers Show Confidencein the High-End Market
A 2007 Coldwell Banker Previews International® Luxury Survey of people living in homes valued at more than $1 million (or $2 million in California) found that homeowners are fairly confident in the future.

· 58% said they believe increases [in the value of their home] will continue over the next five years, and 36% said those increases would be significant.

· 40% said they felt comfortable enough with the housing market that they were considering buying a second home.

Excerpt from “Upscale Homeowners Confident in Future,” Real Estate Intelligence Report, Vol. 13, No. 27, July 2, 2007.