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WASHINGTON — The Federal Reserve signaled Wednesday that a full economic recovery could take nearly three more years, and it went further than ever to assure consumers and businesses that they will be able to borrow cheaply well into the future.
The central bank said it would probably not increase its benchmark interest rate until late 2014 at the earliest — a year and a half later than it had previously said.
The new timetable showed the Fed is concerned that the recovery remains stubbornly slow. But it also thinks inflation will stay tame enough for rates to remain at record lows without igniting price increases.
Chairman Ben Bernanke cautioned that late 2014 is merely its “best guess.” The Fed can shift that plan if the economic picture changes. But he cast doubt on whether that would be necessary.
“Unless there is a substantial strengthening of the economy in the near term, it’s a pretty good guess we will be keeping rates low for some time,” he said.
The Fed has kept its key rate at a record low near zero for about three years. Its new time frame suggests the rate will stay there for roughly an additional three years.
The bank’s tepid outlook also suggests it’s prepared to do more to help the economy. One possibility is a third bond-buying program that would seek to further drive down rates on mortgages and other loans to embolden consumers and businesses to borrow and spend more.
Information obtained from the Calif. Asso. of Realtors with permission.
Article printed in the Mercury News and A.P.  Jan. 25,  2012.
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Key points
• The new year is a great time to reevaluate where you stand financially.
• Consider these five resolutions to reshape your finances in 2012, including tips on budgeting, estate planning and more.
• Helpful information for everyone, regardless of age or income.
It wouldn’t be the new year without resolutions. But whether it’s trimming your waistline or firming your financial profile, the key isn’t making the list, it’s sticking with it! That’s particularly true now, given the recent bear market and economic downturn.
Here are five steps to get you started. You don’t have to do everything at once. Just get going. We believe that, as you move from one step to another, you’ll feel stronger—and closer to achieving your goals.
  Resolution No. 1: create a budget for life Financially speaking, life can be viewed as a series of cash inflows and outflows. Saving and investing during your working years should hopefully lead to a rising net worth over time, enabling you to achieve many of life’s most important goals, like funding your retirement. Creating your own budget and net worth statement can help you build your road map and stay on track, even during tough times.
  Resolution No. 2: manage your debt Debt is neither inherently good nor bad—it is simply a tool. For most people, some level of debt is a practical necessity. That said, problems arise when debt becomes the master of the borrower, not the other way around. Here’s how to stay in charge.
  Resolution No. 3: invest with a plan Getting better investment results are a goal we all share. But investing is a means to an end, not an end unto itself. So stay focused on your goals. Create a plan that will help you stay disciplined in all kinds of markets. Follow it and adjust it as needed.
  Resolution No. 4: prepare for the unexpected Risk is a fact of life. Your financial life can be upended by all kinds of nasty surprises—an illness, job loss, disability, death, natural disasters or lawsuits. If you don’t have enough assets to self-insure against major risks, resolve to get your insurance in shape.
  Resolution No. 5: protect your estate Without an estate plan, the fate of your assets or minor children may be decided by attorneys, government bureaucrats and tax agencies. Taxes and attorneys’ fees can eat away at your estate, and delay the distribution of assets just when your heirs need those most. Here’s how to protect your estate—and your loved ones.
Finally, remember you don’t have to do everything at once. Take one step at a time. Make some real progress on your journey in 2012.

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Foreclosures may be making some people sick, according to recent research published by the National Bureau of Economic Research.  In markets hit hard by foreclosures, such as, Arizona, California, Florida, and New Jersey, the number of reported visits to emergency rooms and doctor’s offices also has risen.
The study finds that an increase of 100 foreclosures corresponded to a 7.2% increase in reported cases of hypertension and an 8.2% increase in diabetes among people age 20 – 49.  A rise of 100 foreclosures was associated with a 12% increase in doctor visits for anxiety and a 39% increase in visits for suicide attempts, though these figures still represent a small number of patients.
from CRS magazine  Nov./Dec. 2011

California pending home sales fell 9.1 percent in November but were up from a year ago, according to the CALIFORNIA ASSOCIATION OF REALTORS®’ Pending Home Sales Index.  However, the index was up 11 percent from November 2010, marking the seventh consecutive month that pending sales rose from the previous year.
Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.
At 55.1 percent, equity sales made up more than half of home sales in November, up from 53.9 percent in October and 54.4 percent in November 2010.
The total share of all distressed property types sold statewide fell to 44.9 percent in November, down from October’s 46.1 percent and 45.6 percent in November 2010.
Of the distressed properties sold statewide in November, 21 percent were short sales, up slightly from the previous month’s share of 20.7 percent and up from last November’s share of 19 percent.
At 23.5 percent, the share of REO sales was down from October’s 24.9 percent, and down from the 26.2 percent reported in November 2010.

I look forward to  spending more time with my four nephews at  the holidays.   Last year there were three, now I have four.
Although we meet during the year, it seems like they come alive even more during the holidays. They are only allowed to watch limited TV.; however the media seems to have creeped up into their sphere through osmosis or otherwise. Through their world, I have been enlightened over the years with all the toys that delight them, from Thomas the Tank to the personlizaed cars, all these with faces and personalities of their own.
Looking back, I grew up in a relatively quiet household with a mellow family and one younger sister.   There were no boys in the family for quite a while.  Now my four active nephews keep us all on our toes.
Keeping up with all the latest games and fads is another challege we grown ups have.  Trying to make sense of what seems senseless playthings.  The house is decorated, the stockings up and the boys all filled with wonder about what they will find.; The oldest one is sworn to keep the secret about Santa’s true identity so not to spoil it for the others.
As Christmas Eve draws near, so does the anticipation of opening presents and remembering the true meaning of the Christian holiday.
I wish you a very happy holiday and may you new year be filled with lots of good fortune, love, laughter and perhaps a nephew or two to brighten your world.
WISHING YOU A SPECIAL HOLIDAY CELEBRATION!!

The leading expert in color, Pantone, Inc., has made it stated that Turquoise was the “it” color for 2010.  But before you deck the house from top to bottom in the gemstone hue, consider the other latest trends.
Behr paint company says neutral is still in–think light colors such as grays, camels and off-whites.  Experts suggest buying bigger furniture such as sofas and armchairs in these safe colors, which never truly go out of style.  Complement neutrals with aqua and gold tones, but stay away from the darker browns, which are becoming passé.
While monochromatic schemes are still versatile and dependable, HGTV says the real winners in the color game right now are bold jewel colors such as ruby red or emerald green and the brighter the better–especially if it’s a purple hue.  Experts advise pairing these daring tones with a smoky charcoal or a softer black to give a room a vintage feel.
Going green and getting back to nature is a major trend, too.  Earthier tones, such as sand or yellow-greens, are perfect for living rooms or kitchens.  But going back to your roots doesn’t just mean dipping into Mother Earth’s favorite colors.  Decorators say Asian-inspired or tribal patterns are adorning decorative elements consumers look to get the most bang for their buck.  Think pillows, area rugs or murals as key items this season.

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Here are a few tips I got from our fire dept. last night when they hosted a Santa at the Fire House event.

Make sure your outdoor lights are made for outdoors and any extension cords are waterproof.
Don’t overload you electrical outlets.
Keep candles away from things that can burn…like your Christmas tree.
Consider using battery operated candles…some look very real.
Never leave candles burning while you’re away, and keep children away from them.

Have a safe and happy holiday.  Merry Christmas !
 ~ Barry
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Great reasons to buy a home around the holidays
You might be wondering if buying a home during the holidays is a wise idea. Here are some good reasons to consider buying your home during the holiday months.
Here are five good reasons:
1.  December and early January are usually slower for sales and  sellers are motivated since they might not have sold the property in earlier months.
2. Rates are the lowest they have been in years and many options
are available, especially for buyers willing to put down 20% or more as a down
payment.
3.  There is  less competition to deal with which means less stress for you during the holidays.
4. Tax advantages: you may be eligible for deductions on points and mortgage interest if you close by the end of the year. Consult your tax advisor. deduction.
5. Lower prices & lower rates.
You should decide if this is a good time for you to buy.  Keep in mind, homes that did not sell over the summer are also available are great deals.  Furthermore, pricing might rise again after the New Year, so it might be a good time to find a bargain.
Good luck with your home search.

I hope you will find these tips helpful. Follow these tips to save on energy costs.
* Install these energy-efficient measures:
o Replace and recycle your old refrigerator and purchase energy-efficient models. Units only 10 years old can use twice as much electricity as a new ENERGY STAR® labeled model.
o Insulate ceilings to R-30 or higher if your attic has less than R-11 levels.
o Caulk windows, doors and anywhere air leaks in or out. Do not caulk around water heater and furnace exhaust pipes.
o Weatherstrip around windows and doors.
o Wrap heating and cooling ducts with duct wrap, or use mastic sealant.
o Install energy-saver showerheads.
* When buying new appliances, be sure to purchase energy-efficient ENERGY STAR® labeled models.
* Set the furnace thermostat at 68 degrees or lower, and the air-conditioner thermostat at 78 degrees or higher, health permitting. 3 percent to 5 percent more energy is used for each degree the furnace is set above 68 degrees and for each degree the air conditioner is set below 78 degrees.
* If your old air conditioner is on its way out replace it with ENERGY STAR® labeled energy-efficient model.
* Use compact fluorescent lamps. You can lower your lighting bill by converting to energy-efficient low-wattage compact fluorescent lighting and fixtures.
* Replace old windows with new high performance dual pane windows.
* Clean or replace furnace and air-conditioner filters regularly, following manufacturer’s instructions.
* Set the water heater thermostat at 140 degrees or “normal.” If you have a dishwasher. Otherwise, set it at 120 degrees or “low.” Check your dishwasher to see if you can use 120 degree water. Follow the manufacturer’s direction on yearly maintenance to extend the life of your unit.
* Fix defective plumbing or dripping faucets. A single dripping hot water faucet can waste 212 gallons of water a month. That not only increases water bills, but also increases the gas or electric bill for heating the water.
* Wash only full loads in a dishwasher and use the shortest cycle that will get your dishes clean. If operating instructions allow, turn off the dishwasher before the drying cycle, open the door and let the dishes dry naturally.
* Defrost refrigerators and freezers before ice buildup becomes 1/4-inch thick.
* Install shades, awnings or sunscreens on windows facing south and/or west to block summer light. In winter, open shades on sunny days to help warm rooms.
* Close the damper when the fireplace is not being used. Try not to use the fireplace and central heating system at the same time.
You can do most of these items yourself, and save on labor cost.  Thanks to many home improvement stores, you can easily purchase the supplies you need and install them in a few hours.  The satisfaction you receive will be well worth the effort.  Now good luck and HAPPY HOLIDAYS!

Before you put your home on the market,take the time to do a little “snooping” on your neighbors by comparing your home to others on the market and visiting open houses.  Visiting a few open houses can give you a better idea of what your home is worth and can highlight needed improvements.
If two or three houses that you visit, for example, have recently redone their roofs or windows, you probably should put those repairs toward the top of your to-do list, so your home doesn’t suffer from comparison once you start marketing it.
Visiting open houses also give you the chance to see how to “stage” your home to show its best features.  Take notice of what appeals to you as you walk through the house and what little things jump out at you that you may have overlooked in your own home.