The following is an article by Stephanie Singer we thought we would share with our friends.

NAR Campagin Relates Real Facts About Real Esate
The National Association of Realtors® is reaching out to consumers with facts about homeownership and the value of real estate as a long term investment. Would-be homeowners who are uncertain about their home buying plans can learn more about the options available to them and the long term benefits of owning a home through a new advertising campaign that will provide current, relevant housing data to help make informed decisions about buying a home.

Over the past 30 years, the median price of existing homes has increased an average of more than 6 percent every year, and home values nearly double every 10 years, according to historical data from NAR’s existing home sales series. A federal reserve study has shown that the average homeowner’s net worth is 46 times the net worth of the average renter. Despite this and other research, some potential homebuyers are being kept on the sidelines as they react to the national media reports about the housing market.

“Nobody buys a home in the national real estate market,” said NAR President Dick Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif. “All real estate markets are local, and buyers and sellers who are thinking about making a move should consult with Realtor® in their local market to learn about conditions in a specific area. It’s also advisable to look beyond the immediate horizon- real estate has proven itself to be a good long-term investment and a safe, secure way to build long-term wealth.”

According to NAR’s most recent forecast, existing-home sales are likely to total 5.66 million in 2007, the fifth highest on record, rising to 5.70 million in 2008 and 5.91 million in 2009. Existing-home prices are likely to be down 1.9 percent to a median of $217,600 for all of 2007 which is good news for buyers; prices are expected to hold steady in 2008, and then rise 3.1 percent in 2009 to $224,400.

The campaign includes a new Web site, www.HousingMarketFacts.com, which provides more information about the benefits and value of owning a home, identifies current public policy issues of importance to consumers in the real estate transaction and allows visitors to link directly to www.RALTOR.com to find a Realtor®.

The ads are part of NAR’s Public Awareness Campaign. For more than a decade, the Public Awareness Campaign has helped millions of consumers realize the value of using a Realtor to help them buy or sell real estate, and is now educating consumers about the value of housing as a long-term investment. In 2008, campaign ads will be broadcast nationwide from January through November and will air more than 10,000 times on national TV and radio outlets. Local and state Realtor® associations are encouraged to coordinate with the campaign in their markets with local radio, TV and print buys. To learn more about the Public Awareness Campaign, visit www.realtor.org/awarenesscampaign.com.

John Veytia
Keller Williams® Realty
32351 Coast Highway
Laguna Beach, CA 92651
Phone: (949) 415-0111
Toll Free: (800) 564-6112
Email: john@veytiagroup.com

Let me introduce myself. My name is Philip Sneyd. Just as many of my ancestors before me have migrated, I seized the opportunity to begin a new life for myself here in beautiful sunny Southern California in early 2005. I have not looked back since!

Moving from Ireland to Orange County has created so many wonderful opportunities and adjustments. The real estate market in Ireland is so different. It is still an auction atmosphere. You locate the home you would like to purchase and then you wait until it comes to Auction, in which you will bid on the home. Also, the paper work involved is no where as elaborate as California’s is.

Although, back in the home land my parents bought their land from a farmer in 1997 (3/4 of an acre for $10,000 with open land behind them and the Grand Canal in front) offered an acre parcel to me for $40,000 in 2002. It was the most beautiful area and today I kick myself for not taking that opportunity to own a little piece of home!

It amazes me how owning a little piece of home is so important, or indeed somewhere to call home. I have spent 3 years here, living in an area that the rest of the world is jealous of. Laguna Beach has the best of all worlds, you want the Village, you got it. You want the Canyon privacy, you got it. You want the ocean view and the beach feel, you got it. There are very few places in this world I would have moved to and many people that are in the same shoes as I was would agree, why go anywhere else?

Calling Laguna Beach home is a wonderful experience and with homes currently “On Sale” in our area, it’s a great time to make Laguna Beach your reality instead of a dream, someone else is living like me!

So pick up your sandals and swimsuit. Join me, Philip Sneyd at the Veytia Group, your resident Irish Bloke, on the beach. Let me know when you to want to call Laguna Beach, HOME!

If you are looking for a taste of refreshment in a changing market, let Philip your Irish Bloke provide you with the honest answers you deserve!

For all of your Real Estate needs,
Contact Philip at the Veytia Group:
Philip S. Sneyd (The Irish Bloke)
949.235.8481 (mobile)
949.715.0550 (office)
Philip@veytiagroup.com
www.veytiagroup.com

Late last week both the U.S. House of Representatives and Senate approved an economic stimulus package that, amongst other things, will increase the maximum loan amount that Fannie Mae and Freddie Mac (collectively known as the “GSE’s”), and FHA/VA will accept. Officially, this increase is considered “temporary” for loans originated between July 1, 2007 and December 31, 2008, but some observers think that the government will be pressured to extend this increased cap indefinitely until the housing market shows signs of stability.

This is obviously a tremendous development for our clients and business, especially in the short run. Not only will it help many previously 'jumbo' borrowers who now can get a loan under the new limits, it could serve to stabilize a very volatile secondary mortgage market and, in turn, borrower pricing and guidelines.

However, there are many open issues that need to be resolved before Indymac (as well as competitors) can begin pricing and selling loans under these new terms. Resolution on some of these key, and some very technical issues needs to occur before Indymac can price and sell loans to this new execution. None of our major competitors has announced pricing for loans under the new limits either, as they are facing the same challenges:

• What exactly will the new limits be? Many of you have no doubt heard that the new GSE limit will be $729,950. Unlike previous limits, this new amount will not be a nationwide standard. Instead, the new limit will be based on prevailing house prices in individual metropolitan areas. $729,950 will likely be the new limit in Los Angeles, San Francisco, and other higher cost areas. Other more moderately priced housing markets will have differing limits somewhere between the current $417,000 and the $729,950 max, and some affordable markets may actually see the limit stay the same.
  • For FHA, the specific new limits are also in limbo. The minimum loan amount ceiling will increase from $200,160 to $271,050, and the maximum loan amount ceiling will increase from $362,750 to $729,950, again depending on housing prices in individual geographic regions.
• How will the loans be sold in the secondary market/what price will investors pay for these loans? (This in turn determines the rate we can offer our clients). There are numerous questions still outstanding here, such as: What fees will the GSE’s charge to insure these loans (know as a “guarantee fee”)? Will investors pay the same price for these loans as loans under the old limit?
• What loans will the GSE’s accept? What will their minimum FICOs / Max LTVs be?
• Will these loans be processed through the GSE’s respective underwriting system (FNMA’s desktop underwriter and Freddie Mac’s loan prospector, respectively?) or some alternative mechanism? The GSE's are telling us that they're facing system challenges of their own in adopting these new limits. They're not used to having a complex limit scheme based on geographic region - they need to change some of their systems and processes just like we will.