Earthquakes are a fact in California and I’ve received the following e-mail from Barbara Boxer http://boxer.senate.gov/
our Senator this week and my hat goes off to her and her staff as it is extreamly informative. I expecially liked the “tip”
link as it lists items on how to plan ahead for an earthquake, besides moving out of California.

Dear Friend:
The United States Geological Survey (USGS) is America’s earthquake science agency, charged with providing reliable information about where and when earthquakes may occur. The USGS has issued a new report that should be of interest to Californians. The report relates the prediction that California has more than a 99 percent chance of having a magnitude 6.7 or larger earthquake within the next 30 years. Importantly, it also provides clues as to regions more likely to experience a major quake.The new USGS report on California earthquake probabilities is the result of a model that comprehensively combines a variety of seismic and earth science tools. I invite you to view the summary of the report and the full report, with comprehensive maps.News about earthquakes should give all of us a greater incentive to be prepared. If you have not created an earthquake preparedness program for your home and work, I encourage you to follow the tips provided by the Federal Emergency Management Agency.
Most Californians accept earthquakes as a part of living in our beautiful state. But knowing more about where they may occur and what to do to prepare should also be a part of living here. I hope this information is helpful to you.

.Sincerely,

Barbara Boxer
United States Senator

One of the sings of an improving real estate market is “cherry picking.” What happens is buyers look for the best property they can find. It has the best location, best amenities, best upgrades, best landscape and most important-
best price. As these properties begin to be priced at a number that corresponds to the buyer’s specific set of parameters, homes start to sell. One by one, the really good deals begin to sell. As these homes begin to sell, other buyers, who waited too long, get nervous and decide they had better purchase also. Once all the “cherries” are gone, we then have the “dogs” that no one wants. They are priced the same as the “cherries,” but are inferior in some way.  As these properties begin to sell, the new market value for the neighborhood is set. This is the new fair market value which guides both buyers and appraisers. After all the “dogs” are sold, sellers who have been on the market for months and years have a decision to make. They must either drop their price to fair market value or take their home off the market. As this process begins, inventory will drop and won’t be replaced very quickly. Many sellers will not want to sell their homes for the lower fair market value. When those properties, owned by sellers who are motivated and are willing to take fair arket value, sell, the real estate market will begin to stabilize. Unless the government does something stupid, we will slowly get back to a normal market where prices are negotiated over 10,000 to 20,000 dollars within the listing price.

There will always be some properties in neighborhoods that will sell for more or less. This stabilization has happened after each of the other cycles in the 1970’s, 1980’s and 1990’s. Always remember the golden rule in real estate, “long term.” No one has ever been hurt by owning their own home for 20 years. That also means you don’t use your home’s equity as a savings account. If you kept the same loan on the property that you had when you purchased it 20 years ago, you’d have equity in your home and te value would be higher. Period.

As tax season settles, consumers throughout the nation anxiously await their tax refund and rebate. According to the latest IRS estimate, tax refunds will be almost 5 percent higher this year, with an average $2,480 returned to taxpayer’s hands.
This financial boost couldn’t come at a better time. Get ahead of the tough economic situation by spending your tax rebate wisely.

As a realtor my I suggest on how you can make the most of your tax refund and rebate:

Spruce Up Your Home
Is your kitchen or bathroom looking a little dingy? If so, consider a renovation. Home renovating and remodeling can drastically improve the value of your home. On average a kitchen and or bathroom remodel will yield a return on investment of 80 to 100 percent. Investing in a kitchen or bathroom not only provides an unparalleled return, but allows you, the homeowner, to enjoy the benefits of this investment before you place your home on the market. The best upgrades to a home are: French Doors, New Window Treatments, Plantation Shutters,  Granite Counters, New Chandeliers and my favorite, give your home a new coat of paint. All I can tell you a home improvement will give you the pleasure while you own the home and when it is time to sell your home you will get most of your investment back. I know that new flat screen TV was on your list, but rethink it, should you need to sell tomorrow, no buyer will pay you that much more because you throw the flat screen into the deal.

1 Interest rates on long-term, fixed, and adjustable mortgages are at historically low levels. The rate on a 30-year, fixed mortgage is hovering just below 6 percent, while, by comparison, interest rates were hitting 8 percent and higher during the last market downturn in the late 1990s, and were between 10 and 12 percent at the height of the last housing boom in the 1980s. Lower interest rates make it easier to qualify for a loan, and your monthly payments are more affordable. 

2 No one can put a price on the intrinsic value of homeownership. Home prices also reflect financial worth and, the good news is, across California the median sales price for a single-family home has been consistently rising for several decades. In short, housing remains a solid, long-term financial investment. While the pace of home appreciation has slowed over the last year, historical data suggest home prices will continue to appreciate over time. The projected median home price for a single-family home in California in 2008, for example, is $553,000.
By comparison, the median price in 2000 was $241,350; $193,770 in 1990, and $99,550 in 1980. (source: C.A.R.)

3 The length of time a home remains on the market before it is sold has increased from roughly two weeks in 2004 to between eight and nine weeks in 2007. According to the unsold inventory index provided by the CALIFORNIA ASSOCIATION OF REALTORS®, it would take 16.3 months to sell all the homes on the market at the current sales pace, compared with 6.4 months in 2006. With more homes on the market for longer periods of time, you have more choices when it comes to selecting a home today. 

4 The multiple-offer frenzy that dominated the latest housing boom has subsided, and there is less pressure on today’s home buyers to outbid one another. REALTORS® in California reported that in 2007 only 28 percent
of homes sold had multiple offers, compared with 57 percent in 2004. (source: C.A.R.) 

5 The credit industry crisis that has made securing a home loan difficult for many has led to heightened scrutiny of mortgage lenders. As a result, state and federal agencies have created protections for home buyers that were not in place a year ago. The U.S. Federal Reserve, for example, has proposed a plan to require lenders to confirm a borrower’s ability to afford a mortgage before making a loan and establishing guidelines for explaining sub-prime loan terms in order to better educate buyers. Many new public education and awareness campaigns, such as Freddie Mac’s “Don’t Borrow Trouble®” campaign, have been developed to help you achieve the dream of homeownership without the financial risks that led so many borrowers into trouble in recent years. Buying a home in today’s market may be challenging, particularly for those with credit problems or little saved to put toward a down payment. But there are many factors impacting the current housing market that make buying a home today a viable option.