10 Real Estate Predictions for 2009

10 Real Estate Predictions for 2009 
2009 is likely to be a year of continuing adjustment to a changing real estate marketplace. Prepare yourself and your business with these predictions from HGTV’s FrontDoor.com Web site. 

• Sellers will continue to face falling home values in the new year because they’ll be competing with banks and builders who are slashing prices to sell off the still-huge inventory of foreclosures and new homes.

• The Obama administration will act on its plan to crack down on abusive lending practices.

• Mortgage holders in danger of losing their homes will receive more assistance from a variety of programs since the Senate's Joint Economic Committee has predicted two million foreclosures in 2009.

• Banks' restructuring should bring increasing calm, making loan modifications and short sales easier to obtain. Eventually this will lead to a decrease in the number of bank-owned properties on the market.

• Mortgage applications will continue to receive a comprehensive review, requiring borrowers to provide extensive income and debt documentation. Those with the best credit will get the best rates.

• The foreclosure crisis has created wiser consumers, with a deeper understanding of real estate, mortgages, and credit enabling better decision-making going forward.

• Green is good with increasing numbers of buyers opting for smaller homes that are within walking distance of school and work.

• Buyers and sellers will be more and more tech savvy, relying on tools like video, webcasts, and mobile search. Consumers and practitioners will benefit from being ahead of the curve.

• Prices will be low as will interest rates, creating great buying opportunities, and likely, inspiring reluctant buyers to make their move.

• The recession will end and buyers will regain confidence in the market.

Source: Frontdoor.com (12/03/08)

Emergency Economic Stabilization Act May Help Homeowners:

Emergency Economic Stabilization Act May Help Homeowners: Enacted on October 3, 2008, this historic federal legislation earmarks $700 billion for the Treasury Secretary to purchase troubled assets from financial institutions. The Secretary and other federal agencies are also charged with the task of mitigating foreclosures for mortgages and mortgage-back securities and encouraging loan modifications. Furthermore, this law strengthens the FHA-insured refinance loans for troubled mortgages under the HOPE for Homeowners program, including authority for the program's board of directors to increase the maximum loan amount above 90% of the appraised value. This bill also extends the tax exemption for debt forgiveness on home loans under the Mortgage Forgiveness Debt Relief Act of 2007 from December 31, 2009 to December 31, 2012. Source: H.R. 1424.

Debt Relief Income Exempt from State Income Tax:

Debt Relief Income Exempt from State Income Tax: Starting September 25, 2008, the federal income tax exemption for debt forgiven on a home loan now applies to state income taxes to a limited extent. Federal law provides a tax exemption for debt forgiveness on a loan incurred for acquiring, constructing, or substantially improving a principal residence up to $2 million if the debt is discharged from 2007 through 2012. Under the new California law, the maximum qualifying debt is only $800,000, not $2 million, and the maximum exclusion is $250,000. Moreover, the California law only applies to a debt discharged in 2007 or 2008. Senate Bill 1055.

GREEN TIP OF THE WEEK: CONFUSED ABOUT PLASTICS?

You're not alone. Experts have reached a consensus and recommend that you avoid these varieties -- identified by a triangle and number on the bottom of most containers -- for the following reasons:

#3 Polyvinyl Chloride (PVC) commonly contains di-2-ehtylhexyl phthalate (DEHP), an endocrine disruptor and probable human carcinogen, as a softener.

#6 Polystyrene (PS) may leach styrene, a possible endocrine disruptor and human carcinogen, into water and food.

#7 Polycarbonate contains the hormone disruptor bisphenol-A, which can leach out as bottles age, are heated, or exposed to acidic solutions. Unfortunately, #7 is used in most baby bottles and five-gallon water jugs and in many reusable sports bottles

GREEN TIP OF THE WEEK: TOILET DAMS

If water-saving or dual-flush toilets are not in your office or home improvement budget, then place one or two plastic containers filled with stones in your toilet's tank. This intermediary step will displace a significant amount of water use over the course of a year.

Barbara Wibe, e-PRO, REALTOR
"it's the little things that make a difference"

Cell: 619.850.4174
e-Fax: 619.512.5156

Coldwell Banker Nautilus
9535 Mission Gorge Rd #E
Santee, Ca 92071

GREEN TIP OF THE WEEK: PLASTIC LININGS IN CANS

After years of public protest and mounting scientific evidence, the government of Canada made a precedent-setting announcement by banning a known toxic chemical from baby bottles. The chemical, bisphenol A (BPA), is commonly found in plastic baby bottles, hard plastic sippy cups, reusable water bottles, the lining of some food cans, and dental sealants. Bisphenol-A, is present in the majority of canned foods. The thin plastic lining found in canned goods contains traces of BPA that can migrate into food. One way to avoid BPA-lined cans is to purchase foods packaged in Tetra Paks, aseptic cartons made from layers of paper, aluminum, and polyethylene.