Realty World - Viking Realty

Talking Points

Skand Mittal — Mon, 06 Feb 2012 03:07:00 +0000

1. As the housing market continues to struggle for stabilization, many homeowners are turning to strategic default. Almost 11 million homes are now underwater, according to Corelogic. Around 3.5 million homeowners are behind in their payments and another 1.5 million homes are already in the foreclosure process, according to RealtyTrac.
2. Aside from the moral quandary of whether strategic default is the right decision, there also are other factors to consider.
3. borrowers’ credit scores will take a hit. According to FICO, someone with a 680 credit score would see their score decline anywhere between 85-100 points after a strategic default, and someone with a 780 credit score could lose 140-160 points.
4. Borrowers who are considering strategically defaulting on a house should look at it as a last resort, not a first option. Financial troubles could be eliminated by refinancing, especially if the Obama administration’s program is implemented.
5. Each state has its own rules and regulations regarding foreclosures, which affect both the length of the process and what the borrower could be liable for in the end.

Remodeling Outlook Positive for 2012

Brian Ripp — Sun, 05 Feb 2012 17:00:00 +0000

Like the residential housing market, the remodeling market is showing signs of improvement, according to two leading industry indexes. The National Association of Home Builders’ Remodeling Market Index (RMI) rose five points in the fourth quarter of 2011 from the third quarter, reaching its highest level in five years. Index components measuring current market conditions and future indicators of remodeling business both increased five points in the fourth quarter. The highest market activity occurred in two categories: major additions and minor additions.
“The residential remodeling market has been improving gradually, mirroring the trend in other segments of the housing market,” says NAHB chief economist David Crowe. “Stringent lending requirements and economic uncertainty continue to be a drag on demand, but we expect a modest growth in remodeling activity to continue through 2012.”
Meanwhile, the Joint Center for Housing Studies at Harvard University also reports that home remodeling spending is expected to increase later this year after a slow start to 2012. If momentum continues to build throughout the year, 2012 could end on a positive note, says Eric Belsky, managing director of the Joint Center. “We’re beginning to see some hopeful signs in the economy, and the housing market is finally starting its slow recovery. That should prove helpful for home improvement spending as the year progresses.”
from CRS Connect, on-line newsletter
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Keeping Interest Rates Low

Barry Ripp — Fri, 27 Jan 2012 18:50:00 +0000

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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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Interest Rates will Stay Low, Low, Low (marvicirealtygroup.wordpress.com)

Get Your Finances in Shape for 2012

Brian Ripp — Thu, 19 Jan 2012 17:34:00 +0000

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.

7 Financial Resolutions You Can Actually Keep (money.usnews.com)

Foreclosures and Health

Brian Ripp — Fri, 13 Jan 2012 19:27:00 +0000

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

Talking Points

Skand Mittal — Fri, 30 Dec 2011 06:58:00 +0000

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.

Nephews at Christmas

Serena Russell — Fri, 23 Dec 2011 17:51:00 +0000

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!!

Living Color

Brian Ripp — Thu, 22 Dec 2011 00:23:00 +0000

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.

Fire Safety Tips for the Holidays

Barry Ripp — Mon, 12 Dec 2011 22:15:00 +0000

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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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Reasons to buy a home in the holidays.

Serena Russell — Wed, 07 Dec 2011 19:54:00 +0000

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.