3 year drop in home prices appears to be at end.

According to recent reports and forecasts by housing analysts, the three-year descent in home prices
appears to be at an end. Eight cities, including San Francisco, showed price increases in May, up from four
in April, and one in March, according to Standard and Poor’s/Case-Shiller Index. For the first time since
early 2007, the index of 20 major cities was virtually flat, rather than down.
KEEP THIS IN MIND
• Earlier reports show that sales of existing homes nationwide rose last month for the third
consecutive month, while sales of new homes increased in June by the largest percentage in eight
years, according to the NATIONAL ASSOCIATION OF REALTORS® (NAR) and the U.S.
Commerce Dept., respectively.
• Although some skeptics believe the market is pausing before home prices decline further, the
median price in California’s housing market appears to be stabilizing. June marked the fourth
consecutive month of rising home prices and the second largest gain on record for the month of
June, based on statistics dating back to 1979. The year-to-year decline in June also was the
smallest in the past 16 months.
• The S&P/Case-Shiller price index for 20 cities showed a half-percent gain when May was
compared with April. It was the first month-over-month increase in the index in 34 months. “It is
very possible that years from now we will say that April 2009 was the trough in home prices,” said
Maureen Maitland, vice president for index services at Standard & Poor’s.
• One explanation for the increase in median prices is the rise in demand from buyers, especially first
timers taking advantage of the $8,000 federal tax credit, which expires in December. The
NATIONAL ASSOCIATION OF REALTORS® (NAR) is lobbying for the tax credit to be extended
and to be replaced with a $15,000 credit for all buyers.
• Another factor in the market’s resurgence is the prevalence of foreclosures, which make up about a
third of all existing home sales. “Although another surge of foreclosures is expected later this year,
demand remains strong, so the market may be able to absorb more distressed properties without
significantly impacting the median price,” said C.A.R.’s Chief Economist Leslie Appleton-Young.
To read the full story, please click here:
http://www.nytimes.com/2009/07/29/business/economy/29housing.html?_r=1&ref=business

Loan Modifiaction Warning

DRE issues fraud warning about loan modification programs. The DRE recently issued a fraud warning alerting consumers about loan modification scams and informing consumers of what they can do to protect themselves. Last July, the DRE had fewer than 10 complaints involving loan modification companies; today the department has 750 pending investigations. In addition, since last October, the DRE has filed more than 200 desist and refrain orders. A list of the companies and persons the DRE has filed an action against can be viewed at http://www.dre.ca.gov/cons_drs.asp.

It is worth noting that not all firms who collect advance fees for loan modification services do so illegally, the DRE said. In general, only licensed real estate brokers and attorneys operating within the scope of their license may collect advance fees. Real estate brokers must have their advance fee agreement reviewed by the DRE prior to its use to ensure it is compliant with real estate law.

source: California Association of Realtors

What Sold in Fairfield Ranch in June

The following Fairfield Ranch homes were sold in June

address____________bd/ ba____ _sf _____ list price ____sold price

15667 Outrigger______ 4 / 3 _____1922___$389,900 ___$380,000
5578 Gableview______ 4 / 3 _____1999___ $385,000___ $385,000
16148 Prestwicke _____4 / 3 _____1999___ $398,500 ___$400,000
16189 Chadwick ______3 / 3 _____1878___ $439,000___ $420,000
5577 Stafford ________5 / 3 _____2524 ___$414,900___ $424,000
5694 Canfield ________4 / 3_____ 2157 ___$399,800___ $430,000
5718 Canfield________ 3 / 3 _____2098 ___$449,000___ $440,000
5701 Knollside_______ 4 / 3 _____2353 ___$478,000___ $450,000

mls data 7/12/09