QUICK UPDATE:

The units sold in October 2008 v. October 2007 were up 57%. Most of that activity happened in homes under $500k, short sales and REO (Real Estate Owned by the bank after foreclosure or how you would want to call it “Real estate Opportunity”) In addition, the 1 million plus range seems to be moving better than the deep-freeze we were in from October 10 to the end of October. During the last 5 weeks buyers are buying 1 million dollar plus homes at a faster rate than in September - October. It’s a great opportunity to upgrade from smaller homes which lost relatively less to larger, more expensive home.

WHAT IT TAKES TO SELL IN THIS MARKET:

Price and condition of the home become even more critical than in the past. Homes that are still selling are either priced more aggressively or upgraded and in good Condition. The homes that are priced well and remodeled are attracting the most attention and getting sold faster.

Of course location is of utmost importance. Being in a good school area improves the saleability of the house immensely.

WHO IS BUYING TODAY?

Relocation Folks; First Time Homebuyers; Investors in anticipation for appreciation for under 400K market; Move-up Buyers making a lateral move; Folks that have been sitting on the sidelines for a few years; Folks at all price points that have been pushed out of the market by multiple offers over the last 4-5 years

Investors:

If you are planning to buy a short sale, check with your real estate lawyer. There are too many law suits going around due to innocent mistakes or not knowing the laws and regulations.

QUICK RATE UPDATE: please note, the actual rate that you can get depends on your credit history and down payment amount.

30 Year Conventional 6.000% @ 0 pts up to $417,000

30 Yr Agency Jumbo 6.375% @ 0 pts up to $729,750

5/1 ARM Super Jumbo 6.125% @ 0 pts up to $4M

If you are getting closer to your 55th Birthday and you have a house, your kids are gone and you are thinking: what am I doing with this large house, now that I am all alone. Can I sell it and not pay Capital Gain taxes? can I find a more appropriate house and not pay too much property taxes?

Prop. 60 is a constitutional amendment approved by the voters of California in 1986. It is codified in Section 69.5 of the Revenue & Taxation Code, and allows homeowners who are at least 55-years of age to transfer an existing Prop. 13 factored base year value to a replacement residence located within the same county, if certain qualifying conditions are met.

Prop. 90 is a constitutional amendment approved by the voters of California in 1988. It is codified in Section 69.5 of the Revenue & Taxation Code, and allows homeowners who are at least 55-years of age to transfer an existing Prop. 13 factored base year value to a replacement residence located in a different county, if certain qualifying conditions are met. Some counties have not adopted local ordinances to implement Prop. 90. Before attempting to transfer your base year value to another county under the provisions of Prop. 90, you should contact the local county Assessor to discuss eligibility.

There are some solutions. Your Tax adviser will be able to fully answer your questions but we’ll talk about a few solutions at my house next Tuesday 10/28/08 @ 8:00PM.

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A new home owner called Len Tillem on his Radio talk show today. He bought a house close to San Thomas Expressway for about $800k. The seller wrote in his disclosure that there was no traffic noise so he assumed that it was quiet. He claimed that he only saw the place during the weekend and it was quiet. Now that he moved in he hears the traffic all the time and he is angry at the sellers and the real estate agents. He thinks that he should have paid less for his property or not buy it.

He is rightfully just to be angry at them. It should have been disclosed to him. The agents should have warned him that being close to a freeway there will be noise.

An advice to any buyer who purchases a new property. Always visit the property at all hours of the day. You are going to live there and spend many hours at your new home. Listen to the noises in the area. Some people are sensitive to noises and smells and will be miserable if they hear water, or traffic, or airplanes, or trains, or even dogs barking. You are investing so much money. For many of you this is your largest expense, invest a little time, it doesn’t even cost money. Go there, get out of your car and stand there or walk around the place. Talk to the neighbors. There is always a nice neighbor who would love to tell you everything about the neighborhood. Drive to your work place from that house and drive back as though it was your home. This way you’ll avoid aggravation and live happier in your new home.

The Jewish people are celebrating Sukkot this week. To commemorate the 40 years that they wondered through the Sinai dessert after being liberated from slavery in Egypt for many generations. Sukkah =temporary shelter, must have at least two and a half walls covered with a material that will not blow away in the wind, built of wood, metal, or plastic frame and covered with Palm branches. You can see the stars through the leaves. The orthodox believers stay in the sukkah for 7 days and eat and sleep in it.

Arba Minim: The Four Species

We hold them together and bless

Etrog, which has both a pleasing taste and a pleasing scent, represents Jews who have achieved both knowledge of Torah and performance of mitzvot. The palm branch, which produces tasty fruit, but has no scent, represents Jews who have knowledge of Torah but are lacking in mitzvot. The myrtle leaf, which has a strong scent but no taste, represents Jews who perform mitzvot but have little knowledge of Torah. The willow, which has neither taste nor scent, represents Jews who have no knowledge of Torah and do not perform the mitzvot

Mt. Gilboa town of Nurit is set to be the first planned, eco-friendly community in Israel, with infrastructure and services designed not just to encourage, but to actually enforce environmentally responsible behavior. If you’re planning on living in Nurit, says Danny Atar, chairman of the Gilboa Regional Council, you’re by definition willing to go out of your way to save water, avoid excess waste, and in general reduce your carbon footprint. “Otherwise, Nurit is not for you,” he says.

“Together with turbines to generate electricity from wind, we expect that the electricity we generate will be enough to light most of the schools, offices, streetlights, and park lights in Nurit - as well as save homeowners money on their energy bill, since they can get credits for the power their roof PV systems generate that they don’t use, selling it back to the IEC.” Atar says.