New Home Legislation

Oh, oh, the picture with the suite... this must be a serious blog today... Well it is... it is good information us to know.

By now you have heard on the news about the changes in the Historic Housing Bill signed into law on the 30th of July. As a Realtor that is constantly working to improve my clients well-being these changes will help many California residents.

For years now the median price of homes in Long Beach has been greater than the conforming loan standards, which means people had to get a Jumbo Loan. This means they ended up paying a higher interest fee on their loans, as they were considered a higher risk even with good credit. This new limit will help many medium family buyers.

For those who are on the lower income front and wish to own the Second Mortgage Assistance Program through the Long Beach Housing Development Company will offer get opportunities for many of our citizens. If you are interested please call me for more information 562-505-6204

Below you will find some high-lights of the new program passed by Congress. I borrowed these words from a e-mail sent out from the President of the California Association of Realtors.

California Association of Realtors and the NATIONAL ASSOCIATION OF REALTORS® have aggressively lobbied for Congress to pass numerous provisions found in this historic bill. Many of you participated in these efforts by communicating with your Members of Congress.

The legislation will assist an estimated 400,000 homeowners facing foreclosure, many of whom reside in California, by allowing them to refinance their current mortgages with a Federal Housing Administration (FHA)-backed loan. The bill also will permanently increase FHA, Fannie Mae, and Freddie Mac loan limits in high-cost areas.

The bill permanently increases the conforming loan limit to $625,500. C.A.R. has long advocated for higher conforming loan limits. In February, the Economic Stimulus Act of 2008 was signed, temporarily raising the conforming loan limit in high-cost areas to $729,750 from $417,000 until December 31, 2008.

The new loan limits for Fannie Mae and Freddie Mac are the greater of either $417,000 or 115 percent of an area’s median home price, up to $625,500. The new FHA loan limit will be the greater of $271,050 or 115 percent of an area’s median home price, up to $625,500. Both new loan limits will be effective at the expiration of the economic stimulus limits on December 31, 2008.

C.A.R. also supports the following bill provisions:

• A temporary increase in mortgage revenue bonds to refinance subprime mortgages.
• New regulator for Government Sponsored Enterprises to restore investor confidence in GSE loans and help the market and economy stabilize.
• First-time home buyer tax credit, which allows first-time home buyers to receive a tax refund worth up to 10 percent of a home’s purchase price, up to a maximum of $7,500. The refund serves as an interest-free loan and the homeowner is required to repay it in equal installments over 15 years.
• Temporary raise in the loan limit for the Veterans Affairs home loan guarantee program to the same level as the economic stimulus limits until the end of 2008.
• Adjustment to the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA), allowing sellers to provide the non-foreign affidavit to a qualified closing entity and not just the buyer.
• The setting of minimum requirements for mortgage originators, which mandates fingerprinting of loan originators and establishes a nationwide loan originator licensing and registration system. The requirements do not apply to those only performing real estate brokerage activities unless they are compensated by a lender, mortgage broker, or other loan originator. States will have the ability to implement more stringent laws.
• The creation of a National Affordable Housing Trust Fund to help cover the cost of the FHA rescue plan for the first five years and develop affordable housing in subsequent years.

This is all good news albeit a bit confusing... But the good news is you may be now able to find the home of your dreams... search for homes on www.jeffhallrealtor.com

Have a great day, Jeff

Christmas in July... Think about it...

Sometimes we let society put pressure on us that is not really good for us or required. Sometimes we just need some cheer in our lives.... When was the last time you did something crazy? Just because you could? That is what happened last Saturday at a friends house... We had Christmas in July... because we could.

You know how stressful the holiday season can be with the months of build up. Will I buy the right gift? What will I wear? Who will be there and do I have to be nice? It just tears us all apart. Imagine all of it happening in just a few quick days and then it is gone.

To set the stage there was a Christmas tree all decked out. Those blow up things in the yard, with Santa riding a Harley. Oh, and as you can see even Sponge Bob dropped by. There was holiday cheer complete with Christmas music, and because it is southern California, nice warm weather... uh... almost like December.

We had a white elephant gift exchange... something around twenty dollars or so and no gift cards although a couple of people cheated. A gift could be stolen up to three times... and as I stole one gift from a friend and had it stolen from me by another. It was my turn to open yet another package and when selecting the other gift... I heard a scream of OH NO... rule is if you touch it; it is yours. Turned out to be a gift that was given to me and I had given it at another white elephant before... So, watch at Christmas time as it will be back out there again...

What does this have to do with real estate? Nothing... have some fun once in a while and remember to laugh, that is how I stay somewhat sane. Cheers, Jeff

Wow... it is about time....

Sometimes it is the simple things that I enjoy in life. Many of which are bizzar... one of them yesterday was to see a left turn traffic signal on Anaheim Street heading west and Redondo. I travel this route at least a couple of times a day and making that turn is very dangerous... I just hope that when construction on 7th street is complete they leave it there.

Speaking of 7th street... it looks like a few more weeks of work and life returns to normal.

So... what is exciting in Long Beach this weekend? You might check out the special Sunday events this summer at the Aquarium of the Pacific. Or, maybe at the Latin Museum of Art.

I am personally torn between going to Sea World, The Wild Animal Park or The Living Desert all of which require a nice car ride.

Just some thoughts for fun in the sun. Have a great weekend, Jeff

June Home Sales Update

Everyone always wants to know.... What is happening in the housing market in Long Beach. Long Beach is very fortunate because it is a coastal city and people love the climate. But like most other parts of the country sales are down. Ok, as a real estate professional this is not always the best of news, but the fact is homes are selling. Everyone wants a deal these days... I mean after-all we hear about them in the news everyday. But a deal too good to be true is normally that. Homes that are well priced are selling at record pace.

Last week I wrote three offers for clients. Each home was new on the market. Each sold in three days... I (we) were not the lucky ones. Selling price was close if not more than asking. The reason is the inexpensive homes are many times trashed... unless you are paying cash, there is no way to get a loan. Many people do not want these type of homes, so when something comes on nice.. it is snatched up right away.

I thought it would be fun to share the latest housing sales information with you today, this comes directly from the SoCalMLS which I belong to.

City	New	Avg LP	Under Contract		Sold	Avg SP			Avg DOM
long	424	$492,246	178		182	$455,675			71
Sigh	13	$435,917	5		5	$471,040			102
	437	$464,081	183		187	$463,357			86

The columns for New, Under Contract, and Sold represent the number of listings that went into those statuses during the month. These are updated on the 1st and 15th of each month for the preceding month.

Currently there are over 1600 active listings on the market. Is there a home out there for you somewhere? Till next time... Jeff

4th of July in Long Beach, California

I remember as a little boy in Northern Idaho, the days started to warm up after school let out... then about the 1st of July it got, well hot. What that meant to me then was summer vacation was almost halfway over... and my dad would be bringing home fireworks. In Idaho the fireworks were the safe and sane variety, what you might buy in Lakewood. However we were just over the border from Montana where the fireworks were whatever you wanted or could afford.

Fireworks always kind of scared me and the dog... and my younger brother loved them, not sure if it was blowing something up or getting to play with matches... I remember one kind even looked like candy and when you threw them down on the pavement they made a popping noise.

We always went somewhere for the 4th of July and one year it even snowed... Yikes...

This year the 4th will be celebrated with friends and going to the beach to see the fireworks from the Queen Mary. Last year we saw them from the Aquarium of the Pacific one of my favorite spots in Long Beach. Or you might want to check out the show from the Fire Department at Veterans Stadium. On a side note: remember Fireworks are illegal inside of City Limits.

I hope each of you enjoy your holiday for some it will be a long three-day weekend, for others it is back to work. Remember to play safe, be safe and come back again.

Enjoy, Jeff