Welcome back

After returning to work from a nice, long holiday vacation, what do I see in the headlines?

1. "Feeling Misled on Home Price, Buyers Sue Agent."
2. "Foreclosures are up by 67.8% nationwide."
3. "World Braces for Subprime Fallout."
4. "Hold on for a Recession."

Wow, this is depressing. No wonder the housing market is in trouble. Look at what the media is doing to it.

This is what my client sees first...the headlines. Most of my clients are internet saavy and begin a lot of their research online and can't help but see the headlines. What is my response? Don't believe everything that you read. Sure, there is truth to a lot of it, but if the media didn't make it "interesting," then no one would read the papers anymore.

For me, this opens the door for conversation.

Our market is still a unique one, a "boutique" market if you will. I am still seeing multiple offers out there. Sure, they are no longer a dime-a-dozen, but they are there. In fact, one client just lost out on a house in the Temescal to 4 other offers...and she was all cash and over the asking price.

So go ahead and read those headlines, but remember that the media is also a business, and without intriguing headlines to get people to pick up the paper, they would have no business.

Conforming loan limits remain the same- gee thanks

The good ol' folks in DC announced today that the maximum 2008 conforming loan limit for single-family mortgages purchased by Fannie Mae and Freddie Mac (the all-mighty Enterprises) will remain at the 2007 level of $417,000 for one-unit properties for most of the U.S.

Higher limits apply to Alaska, Hawaii, Guam and the U.S. Virgin Islands as well as to properties with more than one unit.

Helloooooo people over there...with median home prices in the Bay Area running in the mid 6's, that won't help much. You can barely even find a condo here for $417,000! Yes, prices are falling in general, but not everywhere.

Here is the good news: In October, powers that be (Office of Federal Housing Enterprise Oversight) said it would leave the conforming loan limit at $417,000 in 2008, no matter how drastically prices declined in 2007. But if cumulative home-price declines in 2006, 2007 and 2008 exceeded 3 percent, the limit would be adjusted accordingly in 2009, OFHEO proposed. In addition, a bill approved by the House in May, HR 1427, would allow Fannie and Freddie to securitize loans up to $625,000 in areas where the median home price exceeds the conforming loan limit.

Is this really good news? Let's listen to the market and see.

Childproof your home in minutes!

So my daughter is becoming mobile. I got down on all fours, which, coincidently is right at her level, and went exploring through my house. Oh the things that I saw. Oh man, we are in for it.

As I am taking her around to other people's homes I am realizing how unsafe many homes are for the tots in our lives. The holidays are upon us...is your home safe for all of the new additions to the family?

I recently had the pleasure of meeting Mark Altman, founder and owner of The Childproofer, a company which specializes in creating safer spaces for kids. I met Mark at the home of one of his clients and was able to see firsthand how important it is to make sure your home is safe.

Click the following link to hear a few things Mark has to say:

And be sure to check out www.calpoison.org/public/plants.html to see if you are housing any poisonous plants in your home.

Be safe and happy holidays.

My new assistant

"Are you looking to buy or sell a house? Then talk to my Mommy." ~Melia

Ok, so I haven't been blogging lately. Why? do you ask? Well...many of you know, but some don't, that I had a baby girl in June. Yup. I have added an adorable little assistant to my team. Her name is Melia. She is a superstar and the best sidekick a mom could ask for. She comes with me everywhere: on tour, to show property, and she has even been to several signings since being born!

Please help me in welcoming Melia to the world of juicy real estate.

Historical Real Estate Market Quotes to Ponder

1947: "The prices of houses semm to have reached a plateau and there is reasonable expectancy that prices will decline. " -Times Magazine

1948: "Houses cost too much for the mass market. Today's average price ($8,000) is out of reach for 2/3's of all buyers." -Science Digest

1969: "The goal of owning a homes seems to be beyond the reach for most americans ($28,000). -Business Week

1981: "The era of easy profits in real estate may be drawing to a close." -Money Magazine

1985: "If you are looking to buy, be careful. Rising home values are not a sure thing anymore." -Miami Herald

1986: "Most econonmists afree...a home will become little more than a roof and a tax deduction, certainly not the lucrative investment it was." -Money Magazine

1993: "We're starting to go back to the time when you bought a home not for it's potential money-making abilities, but rather as a nesting spot." -Los Angeles Times (note that 1993 was the absolute low-point for real estate values in Los Angeles. Prices have sky-rocketed since.)

1993: "Financial planners agree that houses will continue to be a poor investment." -Kiplinger's Personal Financial Magazine

1996: "A home is where the bad incestment is." -SF Examiner

So what does this mean? Because real estate is cyclical it can never be a bad investment.