A new book by Barb Scwartz reveals the maximum profit benefits of Home Staging. Robert Bruss, of Inman News, reviews her book, in an article entitled, "Home staging helps show house at its best."

"Staging your home," East Bay Business Times" - April 21, 2006by Gina Vierra

Labels: Bay Area Real Estate, East Bay Business Times, Housing Market, Staging

"As delinquency rates rise, red flags are flying over some aggressive finance outfits," as stated by Mara Der Hovanesian, of BusinessWeek.

"For months doomsayers have been predicting that the slowing housing market, along with rising interest rates, would lead to mortgage foreclosures and bank losses. That hasn't happened yet, but delinquency rates have started to rise. What's worse, instead of cutting back on the exotic mortgages they've leaned on throughout the boom, many lenders are charging ahead on such high-risk loans full tilt. "Mortgage lending standards show little sign of tightening," says Frederick Cannon, bank analyst with New York's Keefe Bruyette & Woods Inc. investment bank. "[Lenders] should have dialed back the aggressive loans by now."

"The much-feared troubles may finally be arriving. Delinquency rates jumped more than 7%, to 4.7% in the fourth quarter of 2005, from the year before, according to the Mortgage Bankers Assn. Home buyers are becoming over-extended. In California, where seven of the 10 most expensive U.S. cities are located, one in five buyers already spends more than half of pretax household income on housing -- much more than the 30% recommended by the Housing & Urban Development Dept."

"Despite the lenders' precautions, some borrowers will receive a rude shock starting this year. Repayment terms on about $1.3 trillion of adjustable-rate loans will increase in 2006 and 2007, forcing some borrowers to pay up to 150% more per month. "In the hands of an unsophisticated borrower, [these loans are] dangerous," says Robert W. Visini, vice-president for marketing at San Francisco mortgage tracker LoanPerformance (FAF).

"About 10% of U.S. households now face a great risk of running into credit problems, according to research done by Meredith Whitney, senior financial institutions analyst for CIBC World Markets Inc. (BCM ). If borrowers start to default on their loans, their lenders could themselves face mounting problems."

"Real estate rates at highest level in nearly 4 years," according to Frank Nothaft, Freddie Mac, as reported by Inman News.

"Mortgage rates this week climbed for the fourth straight week to highs not seen since the summer of 2002, according to surveys conducted by Freddie Mac and Bankrate.com."

"In Freddie Mac's survey, the 30-year fixed-rate mortgage rose to an average 6.53 percent for the week ended today, with an average 0.6 point, up from last week's average of 6.49 percent. The 30-year fixed has not been higher since the week ending July 12, 2002, when it averaged 6.54 percent.

Foreclosures Soar 63 Percent over Last Year
RISMEDIA, April 19, 2006—RealtyTrac(TM) (www.realtytrac.com), the leading online marketplace for foreclosure properties, today released its March 2006 U.S. Foreclosure Market Report, which shows 101,597 properties nationwide entered some stage of foreclosure in March, a 13 percent decrease from the previous month but a 63 percent increase from March 2005.

Labels: Bay Area Real Estate, Foreclosure, Freddie Mac, Housing Market, Mortgage Lenders, Real Estate Cycles, RealtyTrac

Emeryville Condos
I like the advice that Robert Truss, a writer for Inman News, gives on buying condos. You can view his whole article HERE.

"Whether you are a first-time home buyer, or a retiree planning to "down-size" your residence, condominiums are "hot" during the 2006 peak home-buying season. In most communities, condos are still affordable for home buyers."

"Condominiums are no longer the "ugly ducklings" of real estate. Now they appreciate in market value almost as fast as single-family houses."

What Robert Truss goes on to cover are the following headings;

WHY BUY A CONDO INSTEAD OF A HOUSE?
NEW OR RESALE CONDO -- WHICH IS BEST?
THE FIVE KEY QUESTIONS CONDO BUYERS SHOULD ASK.

Rent Vs Buy?

An article written in the Chicago Tribune a few days ago, by Alexia Elejalde-Ruiz, entitled "Rent Vs Buy," raises some very good issues in this ogoing debate.

"Rents are experiencing their sharpest hikes in five years, and mortgage interest rates that hit a 40-year low several years ago are on the rise. People on the fence about whether to buy or rent are feeling the squeeze from both sides."

As a further indication that rents are on the rise, the Mercury News reported,

"SANTA CLARA COUNTY APARTMENT COSTS UP 5.8% FROM A YEAR AGO."

This was publihed today in an article entitled, "Rental Rates Rebounding in Valley," by Michael Liedtke.

"Apartment rents are increasing more rapidly in Silicon Valley and other major markets in the West as the economy produces more jobs and rising interest rates prevent more people from buying homes, according to statistics being released today."

"The market is changing, and a lot of times that's the time to act," said Ron De Vries, vice president with Chicago-based Appraisal Research Counselors. "Maybe it's time to buy while interest rates are still low. Or maybe this would be a good time to rent before the increases come through."

Use this calculator to determine whether it is a better financial decision to rent or to own a home.

Labels: Bay Area Real Estate, Buy vs Rent, Calculator, Emeryville Condos

After the last dismal few months of rain, what a welcome relief to get a little sunshine to brighten up our lives.



Take a tip from my two friends, Norm and Andy. Take a breather, spend a little time out doors soaking it all up. What better place than to spend the afternoon strolling the Berkeley Rose garden.

Check out Andy's article at www.myeastbayagent.com, written Thursday April 13, 2006.


And here's what Alhambra Valley looks like in the Spring.

Labels: Bay Area Real Estate, Berkeley Hills, Berkeley Rose Garden, Housing Market, My East Bay Agent, MyEastBayAgent

Today's your last chance to file taxes and extensions.

Labels: April 15, Income Tax, IRS

For Me, one of the most pleasant surprises to happen in jazz in the last ten years came with the release of a CD in 1996 of music that had been recorded twenty two years earlier. It was a rare "but beautiful," (and incidently, that's the name of the CD), live meeting between Bill Evans and Stan Getz.

"Pianist Bill Evans and tenor-saxophonist Stan Getz only recorded in the studio together on one occasion, making these previously unreleased concert performances (issued for the first time in 1996) quite valuable," writes Scott Yarrow in his review with AMG.

"Although released under the pianist's name, this CD is very much Stan Getz's show and his beautiful tone sounds quite exquisite on "But Beautiful," "Emily," "The Peacocks," and the swinging "You and the Night and the Music."

“There are four qualities essential to a great jazzman. They are taste, courage, individuality, and irreverence. These are the qualities I want to retain in my music.” - Stan Getz


"Although Getz played attractive compositions tastefully with harmonic and melodic sophistication, so too did many substantial musicians who never received much critical and popular acclaim. The primary reason for his greatness and his popularity lies elsewhere, in his tone. It is uniquely his. Big and pure and rich and definite, it possesses such an intrinsic appeal that master saxophonist and innovator John Coltrane proclaimed his envy of it — and Roost Records released a Getz album in the Fifties called, simply and accurately, The Sound." Benjamin Franklin V, Excerpted from: The Essential Stan Getz

"Let's face it. We [tenor saxophonists] would all play like him, if we could." —John Coltrane

The Bill Evans Webpages

From the Liner Notes, written by Helen Keane, in 1995. "I feel it's important that I explain why Bill is not playing on most of "Stan's Blues."

Since Bill and Stan hadn't worked together very often, they called a rehearsal on the day of the performance in Laren. They rehearsed for about three hours. The format for the evening was that the trio would perform for about 40 minutes, then Stan would join the group as Bill's special guest.

Stan Getz was a very unpredictable guy and sometimes he could be a very bad boy.

After the trio finished their set, Stan was announced. As he entered the stage, he called a tune they hadn't rehearsed. I was watching the performance on a television monitor in the audio truck and saw the angry expression on Bill's face as Stan began to play unrehearsed "Stan's Blues." Bill played a little on the melody chorus, then took his hands off the keyboard and didn't play for the rest of the tune. As soon as he got Eddie Gomez's eye, Bill shook his head, meaning "don't take a solo."

That explains why there's no piano on "Stan's Blues." Bill was a gentle person, but very strong. Although he always worked well with other musicians, obviously Stan's behavior really affected him.

Stan may have had a demon in him from time to time, but he also had the ability to be charming. At the later performance, Stan warmly wished Bill a happy birthday and played an impromptu "Happy Birthday." There is no way of proving it, but knowing Stan, I believe that this was his way of apologizing for what happened in Holland. I think Bill was very touched by Stan's birthday wish before an audience of seven thousand people.

Labels: Bay Area Jazz, Bill Evans, but beautiful, Jazz, San Francisco Jazz, Stan Getz

Here's an interesting warning on scammers that everyone needs to pay attention to. The warning came from an email newsletter that I receive from Cohns Loans, in Albany, California.

The logo looks real. The message appears to be sent from admin@irs.gov. The "copyright 2006 IRS" at the end of the message seems authentic. It may look like the IRS, but it's scammers who are swamping consumers' e-mail inboxes with messages notifying them of an audit or offering access to a refund. The fraudsters' aim is to collect your Social Security number, credit card account number, and bank information. "We've seen an explosion of this scam this year," said an IRS spokeswoman.

In recent weeks, consumer complaints about the e-mail scams are pouring in at the rate of about 100 a day on average. So far, 12 Web sites operated in 18 countries perpetrating this or similar types of IRS-related fraud was found.

It's no wonder consumers get lured into providing sensitive data. One of the messages (see sample below) directs consumers to click on a link to collect their refund. Not only does the message look authentic, but the Web site that appears when you click on the link looks eerily similar to the official IRS.gov Web page. Scammers copied the official IRS logo, and even the type font matches the IRS site. And, if you click on the "Home" button, it takes you to the official IRS site, at www.IRS.gov. The fake Web site also includes an authentic-looking privacy policy that says "Internal Revenue Code Section 6109 allows us to request your Social Security Number." The only oddities are the Web site address at the top of the page -- which starts with "http://tzk.kozle.pl" -- and the information requested, which includes your Social Security number and credit card information "where you want the refund to be made."

IRS won't e-mail you.

Taxpayers take note: The IRS generally does not send e-mail messages to taxpayers. They do not communicate with taxpayers via e-mail. They may send you a letter, may call you, but they do not send out e-mail.The bulk of the scams have been through e-mail, though sometimes fraudsters will mail a regular letter, or even call taxpayers. If taxpayers get any communication that purports to be from the IRS and if they're not sure that it's a legitimate correspondence and it's asking for financial information, they need to call the IRS and check it out.

"Some of these e-mail scams that we saw, they would not only ask for your bank account number, they would ask for your password to your bank account -- something we would never ask for," an IRS spokesman said. Still, "we do communicate with taxpayers probably more frequently than people think. It's not just through audits". "People forget to sign their tax return, or they got their bank account information wrong on their direct deposit. There are a number of other reasons we would call people, but taxpayers need to double-check and bring some skepticism to these communications, not just with the IRS but with anyone calling and requesting financial information," the spokesman said. To find out whether a communication you received from the IRS is legitimate, call the IRS at 800-829-1040. Ask them to confirm that the IRS is trying to contact you.

One should consult with a qualified tax professional prior to implementing taxation strategies.

Tom Herman points out the importance of understanding current real estate tax law in his recent Wall Street Journal article. That along with this decade's real estate boom comes a big tax liability.

"A growing number of homeowners, riding the crest of the real-estate boom, are getting hit by an unpleasant surprise when they sell: a hefty tax bill."

"As home prices have surged, more people have been selling their home for bigger gains than the exclusion amount -- and thus are facing unexpectedly big tax bills."

"Many people who thought they wouldn't owe taxes when they sell are now on the hook. Among those most likely to be affected are homeowners who bought many years ago and who live in hot real-estate markets such as California, New York, Hawaii, Florida and Washington, D.C."

"Many sellers are startled to hear they owe any tax at all because they didn't realize the 1997 law erased a popular provision that had allowed them to avoid taxes. That provision generally allowed sellers to defer or eliminate capital-gains taxes by rolling over their proceeds within a specified time period into a new home costing as much or more than the old one. The law also deleted another provision that generally offered a once-in-a-lifetime $125,000 exclusion for people age 55 or older."

How Strong Is the Housing Market Where You Live?
Housing prices have repeatedly defied forecasts of a bust, but the market is finally showing signs of cooling. How can you tell if the area where you live is vulnerable to a downturn?

Read the "California February Home Report," as shown by DataQuick Real Estate News.

"Why Real Estate Will Never Crash." John D. Behle gives tips on what every investor should do.

Here's what William Bronchick suggest in his article, "How to Invest in a Changing Real Estate Market."
What is the ideal market for investing?
What are some basic strategies to limit risk?
Inventory trends.
Falling markets.
Exit strategies.
"Real Estate Bubble Theory is Full of Hot Air."

Hear what Business Week Online real estate writers have to say about the market.

In two recent New York Times articles, both published in todays Contra Costa Times, two economics professors suggest many real estate markets aren't inflated afterall.

"Before you buy a house calculate its potential," and "Some New Math on Homes," by Damon Darlin of the New York Times.

"In a paper," Gary and Margaret Hwang Smith, "presented at the Brookings Institution this week, "Bubble, Bubble, Where's the Housing Bubble?" they said that even though prices had risen rapidly and some buyers unrealistically expected the trend to continue, "the bubble is not, in fact, a bubble in most of these areas."

"They argued that the value of a home is determined by the rent it could fetch. Calculate the future rents, subtract mortgage payments, taxes and other costs, factor in a good annual rate of return of 6 percent or more, and one should be looking at the proper price of a house or condo."

"The Smith formulas provide a way to determine if a buyer is overpaying."

"The calculation doesn't mean that as a seller you'd necessarily get that much. Supply and demand — and the Greater Fool Theory — will still determine the price. It means as a buyer you could go that high and still be happy with the decision in years to come."

Their bottom line was: "Buying a house at current market prices still appears to be an attractive long-term investment."

"At the risk of sounding like a real estate agent, Mr. Smith said there are two risks to consider when buying a house. One is that you buy and the price goes down. The other is that you don't buy and the price goes up. "The second is more scary," he said."

"Over Time, Owning a Home Really Pays Off." Realtor Magazine Online