The article, The Rise and Fall of Artificial Wealth, is one of the most detailed, yet easy to understand explanations of where the U.S. economy is, how it got here and where it’s going. Check it out:
http://www.huffingtonpost.com/michael-d-intriligator-and-r-kyle-martin/the-rise-and-fall-of-arti_b_261392.html
23 Aug 2009 0 comments
The stock market has been moving higher as economic reports continue to show improvement. It would appear that some of the predictions from the Obama camp about a second half of 2009 recovery are, indeed, accurate. As stimulus money makes its way to state coffers, infrastructure projects are ramping up, creating new jobs in the process. More analysts are saying that the recession is ending, or has ended… and while it will take some time before we feel this on the “street” the news is still positive. The Fed’s FOMC meeting announcement also indicated that the worst may be behind us, and new data from Europe shows growth in GDP for the second quarter of this year.
Mortgage lending has undergone a tremendous amount of change in the past two years. But there is some good news here also. Jumbo loans folks! Yes, that’s right. Jumbo’s for amounts above the agency limit of $729,750 are back, and rates are decent, in the 6% range. Credit scores of at least 680 are required for loans to $2 million, and although LTV limits can be somewhat low, this is still an improvement. For example, a $1.5 million loan at 75% LTV, with a FICO score above 720 will give a rate of 6.375% fixed for 30 years. Jumbo ARMs, for example, with the same scenario as above can get a 5/1 interest only ARM at 5.75%.
What about loans for people who want to buy and do not have much of a down payment? There are more options here also! Conforming loans (to $729,750) are available with a 10% down payment on purchase transactions for both fixed rates and ARMS. There are some 95% LTV loans out there also. While MI (mortgage insurance) is required for any LTVs above 80%, interest only options can lessen the payment shock. Although I don’t personally offer FHA and VA loans, I have colleagues who do. These are the new “subprime” loans and allow borrowers with FICO scores as low as 620 to qualify. But remember that the rates for these will generally be higher than Fannie and Freddie loans (which I DO offer), so higher income becomes a “must”. Condo loans are also commanding higher rates if the LTV is above 75%. Be careful with condo purchases… because the condos themselves must pass muster. The bottom line is that investors in the mortgage secondary market, which had fled en mass, seem to be returning. If regulators do their jobs properly, then this trend should continue and our market will finally rebound. So stay tuned…
13 Aug 2009 1 comment
|
Town |
Average Sales Price |
Average Square Feet |
Average Square Foot Price |
|
Belvedere June 2009 |
$1,727,500 |
1,909 |
$904.92 |
|
Belvedere July 2009 |
3,405,000 |
3,717 |
916.06 |
|
% Change |
|
|
1.20% |
|
|
|
|
|
|
Corte Madera June 2009 |
788,291 |
1,636 |
481.84 |
|
Corte Madera July 2009 |
948,547 |
1,646 |
576.27 |
|
% Change |
|
|
19.60% |
|
|
|
|
|
|
Fairax June 2009 |
677,389 |
1,679 |
403.48 |
|
Fairfax July 2009 |
737,000 |
1,456 |
506.18 |
|
% Change |
|
|
25.40% |
|
|
|
|
|
|
Greenbrae June 2009 |
1,154,167 |
2,290 |
504 |
|
Greenbrae July 2009 |
1,168,167 |
2,122 |
550.5 |
|
% Change |
|
|
9.20% |
|
|
|
|
|
|
Kentfield June 2009 |
1,590,000 |
2,543 |
625.25 |
|
Kentfield July 2009 |
2,212,500 |
3,085 |
717.18 |
|
% Change |
|
|
14.70% |
|
|
|
|
|
|
Larkspur June 2009 |
1,123,000 |
1,849 |
607.35 |
|
Larkspur July 2009 |
1,785,000 |
3,002 |
594.6 |
|
% Change |
|
|
-2.10% |
|
|
|
|
|
|
Mill Valley June 2009 |
1,492,778 |
2,485 |
600.72 |
|
Mill Valley June 2009 |
963,591 |
1,760 |
547.49 |
|
% Change |
|
|
-8.90% |
|
|
|
|
|
|
Novato June 2009 |
666,124 |
2,128 |
313.03 |
|
Novato July 2009 |
632,078 |
2,107 |
299.99 |
|
% Change |
|
|
-4.20% |
|
|
|
|
|
|
Ross June 2009 |
2,313,583 |
2,569 |
900.58 |
|
Ross July 2009 |
3,397,500 |
3,500 |
970.71 |
|
% Change |
|
|
7.80% |
|
|
|
|
|
|
San Anselmo June 2009 |
794,978 |
1,540 |
516.22 |
|
San Anselmo July 2009 |
997,859 |
1,907 |
523.26 |
|
% Change |
|
|
1.40% |
|
|
|
|
|
|
San Rafael June 2009 |
837,484 |
2,214 |
378.27 |
|
San Rafael July 2009 |
802,352 |
1,902 |
421.85 |
|
% Change |
|
|
11.50% |
|
|
|
|
|
|
Sausalito June 2009 |
922,000 |
2,171 |
424.69 |
|
Sausalito July 2009 |
936,000 |
1,805 |
518.56 |
|
% Change |
|
|
22.10% |
|
|
|
|
|
|
Stinson June 2009 |
no sales |
no sales |
no sales |
|
Stinson July 2009 |
2,100,000 |
1,957 |
1,073.07 |
|
% Change |
|
|
X |
|
|
|
|
|
|
Tiburon June 2009 |
1,996,063 |
2,904 |
687.35 |
|
Tiburon July 2009 |
2,089,040 |
2,795 |
747.42 |
|
% Change |
|
|
8.70% |
13 Aug 2009 0 comments
|
|
|
|
|
|
Town |
Average Sales Price |
Average Square Feet |
Average Square Foot Price |
|
Belvedere July ‘08 |
$6,485,000 |
Vacant Land |
X |
|
Belvedere July ‘09 |
3,405,000 |
3,717 |
916.06 |
|
% Change |
|
|
X |
|
|
|
|
|
|
Corte Madera July ‘09 |
1,231,083 |
1,904 |
646.57 |
|
Corte Madera July ‘09 |
948,547 |
1,646 |
576.27 |
|
% Change |
|
|
-11% |
|
|
|
|
|
|
Fairax July ‘08 |
754,030 |
1,749 |
431.12 |
|
Fairfax July 09 |
737,000 |
1,456 |
506.18 |
|
% Change |
|
|
17.4% |
|
|
|
|
|
|
Greenbrae July ‘08 |
1,367,879 |
2,499 |
547.37 |
|
Greenbrae July ‘09 |
1,168,167 |
2,122 |
550.5 |
|
% Change |
|
|
Flat |
|
|
|
|
|
|
Kentfield July ‘08 |
2,305,000 |
2,866 |
804.26 |
|
Kentfield July ‘09 |
2,212,500 |
3,085 |
717.18 |
|
% Change |
|
|
-11% |
|
|
|
|
|
|
Larkspur July ‘08 |
1,656,750 |
2,183 |
758.93 |
|
Larkspur July ‘09 |
1,785,000 |
3,002 |
594.6 |
|
% Change |
|
|
-21.7% |
|
|
|
|
|
|
Mill Valley July ‘08 |
1,679,445 |
2,318 |
724.52 |
|
Mill Valley June ‘09 |
963,591 |
1,760 |
547.49 |
|
% Change |
|
|
-24.5% |
|
|
|
|
|
|
Novato July ‘08 |
769,985 |
2,171 |
354.67 |
|
Novato July ‘09 |
632,078 |
2,107 |
299.99 |
|
% Change |
|
|
-15.5% |
|
|
|
|
|
|
Ross July ‘08 |
2,025,000 |
2,371 |
854.07 |
|
Ross July ‘09 |
3,397,500 |
3,500 |
970.71 |
|
% Change |
|
|
13.6% |
|
|
|
|
|
|
San Anselmo July ‘08 |
1,369,429 |
2,122 |
645.34 |
|
San Anselmo July ‘09 |
997,859 |
1,907 |
523.26 |
|
% Change |
|
|
-19% |
|
|
|
|
|
|
San Rafael July ‘08 |
965,795 |
1,986 |
486.3 |
|
San Rafael July ‘09 |
802,352 |
1,902 |
421.85 |
|
% Change |
|
|
-13.3% |
|
|
|
|
|
|
Sausalito July ‘08 |
1,271,250 |
1,755 |
724.36 |
|
Sausalito July ‘09 |
936,000 |
1,805 |
518.56 |
|
% Change |
|
|
-28.5% |
|
|
|
|
|
|
Stinson July ‘08 |
3,374,750 |
2,105 |
1,603.21 |
|
Stinson July ‘09 |
2,100,000 |
1,957 |
1,073.07 |
|
% Change |
|
|
-33% |
|
|
|
|
|
|
Tiburon July ‘08 |
2,385,000 |
2,579 |
924.77 |
|
Tiburon Jun ‘09 |
2,089,040 |
2,795 |
747.42 |
|
% Change |
|
|
-19.2% |
12 Aug 2009 0 comments