Federal Energy Compliance Audits on Every Home Sale?
housing market
I have written prior posts on the Cap and Trade Bill and it’s effect on the real estate market because of the mandated home energy audit on the sale of any home.
Recently, I have received input from fellow Realtors that the energy audit provision for home sellers was removed from the bill. Good news, but not the whole story. Though the National Association of Realtors was effective at having this legislation removed from the original bill, this effort does NOT prevent the government from instituting audits at a later time, perhaps after Obama’s re-election!
These audits could cost of thousands of dollars to home sellers. Look at the CURRENT provision now in the current bill:
H.R. 2454 Page 350 – Line 13 – The Administrator shall develop and implement standards for a national energy and environmental building retrofit policy for single-family and multifamily residences …. to facilitate the retrofitting of existing buildings across the United States to achieve maximum cost-effective energy efficiency improvements and significant improvements in water use and other environmental attributes ….
Obama’s big mistake … not pushing harder, like on the Tarp bill and getting Congress to approve the bill WITHOUT any law-maker reading a thousand+ page bill!
Carnival of Real Estate Selects us as a Winner
Kevin Sandridge at the Florida Mortgage Blogger hosted the most recent Carnival of Real Estate and selected one of our prior posts as a winner:
Bob Schwartz presents Real Estate Tax Deduction – Soon to be History? | San Diego Real Estate Market Blog posted at San Diego Real Estate. Bob earns one of our special Big Top Real Estate Blogger award because he brings up a proposition so scary, it’s bound to give the most hideous carnival side show entry a run for its money. No deduction for my mortgage interest? Bite your tongue, Bob! Or — at least swallow a burning sword!
A San Diego Housing Bottom?
San Diego Californis
For the last three months the average home price in San Diego has increased, and once again ignited the siren call of “buy now before you end up paying more.”
Obviously, being a San Diego real estate broker I hope that the three month up-tick in housing is really a bottom. However, a little voice in my mind tells me to be cautious of proclaiming a housing bottom.
In media reports on the San Diego housing market, I have yet to see one that advises caution. Here a a few facts about the San Diego market to consider: One) March through the end of August is seasonally the strongest time for home sales in San Diego; Two) During this time, the state of California has been offering 5% credit up to $10,000 on new home purchases; Three) There is a federal $8000 credit for first-time homebuyers; Four) Unemployment has been rising. California state workers have been forced into furloughs that amount to a 15% pay cut. Five) Prime adjustable mortgage resets are just beginning and may cause many San Diego home owners may wake-up to how deep in negative equity they are. Six) the government is putting out $2 trillion in new treasury offerings this year. Many believe this to be such an oversupply that it will cause the bid prices on the treasury notes to fall and the yield, which affects home interest rates, to rise.
Seven) The federal reserve has an ongoing program where they buy treasury bonds, and other US debt, in an effort to contain interest rates. How long the government can afford to do this without causing hyperinflation down the road, remains uncertain. Bill Gross, the head of the world’s largest mutual fund predicted that the federal debt as a share of gross national product at 45%, and could balloon to 300% over the next 10 years. A few others believe that Mr. Gross’ scenario could actually play out. But, looking back just a few years, how many of those people would have believed that our housing market would turn into such a disaster?
If we look at the positive factors during the last three months, which I mentioned above, one can see the reasons for San Diego’s bounce in home values. However, if one analyzes all the points noted, the rational conclusion would be one that calls for caution.
Cap & Trade … The Big Tax
America needs to get off its addiction to oil (especially foreign) and develop new technology. BUT you don’t do it by forcing a tax on American businesses and citizens in the worst economic climate since the 1930′s. Instead offer hefty incentives to any one organization who can develop said technology…
Cap and Tax is not about the environment anyway, this is just a tax to supplement his ridiculous deficit and try to fund Obama care…
The same dumbasses supporting this were scared off global COOLING just a short 20 years ago…Cap and trade has nothing to do with global warming, he just needs the tax revenue to supplement his crippling deficit…
No-Document Home Loans to Make A Comeback?
San Diego real estate
Chris George, president of CMG Mortgage, predicts that no-docs and other nontraditional loans will be back within the next six months as lenders gain confidence. “As with injuries, as with your credit, as with the economy, time heals all wounds,” he says.
The no-doc loan, or stated income loan, is one of the main reasons for our San Diego real estate bust. It’s incomprehensible that there is even talk of its return. I suppose it will be ‘re-packaged’ into a more PC acceptable connotation. Perhaps, they should call it the California recovery assistance program … CRAP for short.
San Diego real estate market
San Diego County Residential Real Estate Market Analysis – Part 3
This is the 3 of a three part article By Mark A. Melikian California Certified Residential Appraiser appraisals@san.rr.com
Comments and Outlook: In San Diego County the number of sold listings and the absorption rate peak in 2003 and descend through 2008, several years prior to the peak in mean sales price. As the number of days on market reaches a low in 2004 and increases three years prior to the mean sales price decreasing, one can expect the mean sales price to continue to decrease until the number of sold listings begins to rebound. Personal observation reveals that as sales volume has decreased over the past several years, there has been an increase in the amount of seller paid concessions. These concessions are not reflected in the average sales price data. A sale of $100,000 with $3,000 in seller paid concessions gives the seller actual net proceeds of $97,000 (exclusive of commissions and other selling costs). While seemingly insignificant on an individual transaction basis, concessions can have a significant impact when factoring an annual cumulative total. It should therefore be noted that recent mean sales prices likely reflect a number higher than the seller’s actual net proceeds. As is evident in the data provided, it is noted that the mean sales price is approximately at the same level as 2002 year end. Individual markets in the county behave differently and there are exceptions to the following statement however; a general observation based on this data is that home prices today in San Diego County appear to be near the same level as those of 2002 year end. Further personal observations and market data have shown an increase in sales activity in the lower price ranges ($400,000 and below) with multiple offers being reported on many properties in this price range. The second quarter 2009 projections have shown support for these observations with an upturn in sales volume and a lower mean sold price.
As disclosed, projections for 2009 are based on MLS data from January through June of 2009. It is noted that the rate of price depreciation has lessened compared to the 1st quarter report which was based on the typically slower real estate months of January through March. Signs of recovery are evident for detached properties priced below $400,000 and attached properties priced below $200,000. This can be attributed, in part; to the feeling that entry level property prices may be near a market bottom; to readily available credit at historically low interest rates; and to a continuation of government sponsored buyer incentives. Conversely, a tight credit market including higher interest rates for loans above $697,500 coupled with the prospect of a new wave of foreclosures in these price ranges continue to keep demand at low levels for higher priced properties. For properties above $400,000 real estate professionals must continue to focus on setting realistic price expectations for sellers and using price reductions, when necessary, as a way to stimulate demand and sales through 2009.
A recovery in the residential real estate market will occur when supply and demand begin to align across all price ranges. As of June 30 there were 8,868 detached and attached property active listings in the San Diego County MLS system. With the current absorption rate it would take 3.4 months to sell the existing supply of all properties (down from 5.9 months at the end of the 1st quarter). As noted above, a supply of six to seven months is typically indicative of a normal market. The current market demand for properties priced below $400,000 appears likely to continue into the third quarter, assuming credit remains available and interest rates remain relatively stable. Tight credit, higher interest rates and the potential for future foreclosures in the $400,000 plus price ranges may continue to stall market activity in the higher price ranges. Whether a reduced supply in the higher price ranges has an impact on market activity will be analyzed in subsequent reports.