Real Estate is like the San Francisco 49ers

I love the 49ers. I've been a Niner's girl for a long time. Each week I watch with hope, excitement, and anticipation...anticipation for that almighty touchdown. Of course, most weeks they don't come through.

But look at the history of football...football can be categorized in cycles: some weeks you are up, some you are down. Some seasons you are up, some seasons you are down.

The ultimate goal for football players is to reach the light, the great Oz, the Super Bowl. Each year the niners get better, then they falter. Then they get better. Then they falter. But soon, they will be back at the Super Bowl. (Come now, ye of little faith!) How could they not? They were the first team to win a record 5 Super Bowls.

Housing and economic cycles are also characterized by long periods of ups and downs. Today the dow closed 777 points down. Home resales are down. Average sales prices are down. Foreclosures are up. The Niners stink (did I say that?).

Catch my drift?

The Dow has historical drops every seven years. Most real estate agents suggest you hold your real estate seven years. The Niners? Well, clearly they are overdue.

"What the hell is Krista talking about" you say? Right now the future appears dismal for many homeowners and Niner's fans alike. Fear, concern and doubt plague most who read the headlines. Just like I have hope for the Niners, I have hope for Bay Area real estate. My advice to you is to hold on tight. Afraid? Stop reading the headlines and start talking to professionals. In trouble? Keep fighting.

The good news? The Niner's can't get much worse.

Grand Opening of Five Fields Sports Complex @ Gilman

Five years ago five cities came together to address the challenge of a shortage of sports fields in the region. The cities of Richmond, El Cerrito, Berkeley, Albany and Emeryville came up with this: Develop a regional sports complex at the intersection of I-80 and Gilman Street in northwest Berkeley.

Earlier this month the leaders and politicians of each of these five cities cut the ribbon at the new $7 million sports complex.

Officially named the Tom Bates Regional Sports Facility, the complex includes conservation features and will include two lighted synthetic fields, built to accommodate soccer, rugby, and lacrosse and three non-lighted grass fields that can be used for baseball.

Ode to the stock market cloud

The stock market went bonkers today.

I hope you aren't flipping assets.

How does someone who is looking to buy or sell a house decipher what is happening on Wall Street? How will all of this turmoil affect them? Sure, it could, and probably will, mean lower interest rates, but any benefit on the housing market could be shadowed by higher unemployment and a lengthy recession if the credit crisis continues to shake down the economy.

Although the short-term consequences of an unstable stock market are real and uncomfortable, it is time to stop focusing on external noise and start focusing on what counts. I know, it sounds easy. But if Google can launch in a down market, then it is time to put on your boots and start kicking.

Bailout of Freddie Mae & Mac

Rates dropped today about a quarter point, and are the lowest we have seen in 4 months. But just because money is cheaper, it still isn't easy to get a loan.

This article best articulates what all of this means:

http://www.nytimes.com/2008/09/08/business/08consumer.html?_r=1&ei=5070&emc=eta1&oref=slogin

Struggling homeowners worry about credit score

Aye aye aye. It's a sign of the times. Over the last year and a half, the mortgage market has undergone more changes than in any comparable period since the Great Depression of the 1930s. The current housing market malaise has some homeowners up in arms. With the threat of losing their house on their shoulders, the idea of burning their credit is unnerving.

Just how do Morgage Lates, Short Sales, Foreclosures and Bankruptcies affect your credit?

Vince Wirthman of 1st Western Home Loans in Berkeley gave me the following information:

Mortgage Late Payments:

1. Credit score can drop 100 - 180 points.

2. Other credit interest rates could be affected (credit cards, equity lines).

3. No new mortgage for 12 - 24 months, depending on the circumstances.

Short Sale (Preforeclosure sale):
1. Credit score can drop 180 - 250 points.
2. Other credit interest rates could be affected.
3. No new mortgage for a minimum of 2 years, depending on the circumstances.

Foreclosure:

1. Credit score can drop 180 - 250 points.
2. Other credit interest rates could be affected.
3. No new mortgage for 3 - 7 years, depending on the circumstances.

4. Will need a minimum of 680 credit score and 10% down on next purchase.

Bankruptcy:

1. Credit score can drop 200 - 300 points.
2. Other credit interest rates could be affected.
3. No new mortgage for 2 - 4 years, depending on the circumstances and type of bankruptcy.

Vince can be reached at (510) 527-2840.