As we near the end of the 1^st quarter of 2012, I want to share with you some thoughts on national economic trends and the real estate market here in southwest Riverside County!

National economic indicators such as the unemployment rate, consumer confidence and actual consumption are all showing signs of moderate improvement for several months in a row now. Although we’re far from ‘out of the woods’ as far as our national economy goes, the positive signs are encouraging and we continue to build momentum as we head into the Spring.

Here in Riverside county, I read daily reports about pending residential and commercial development plans taking shape. For instance, based on the current volume and expected growth in imported goods coming through southland shipping hubs, a developer is currently proposing a plan to the city of Moreno Valley to create the largest distribution center in the nation. In Corona, an investor just purchased land already approved for over 400 ‘estate’-style residential view properties. Here in Menifee, our new Mayor recently announced our budget is balanced, despite a $3.9 million reduction in state funds, with NO reduction in critical services! We’ve seen the recent completion of 2 new restaurants! In the local real estate market, we’ve watched the continued construction of new homes in the Audie Murphy Ranch, Heritage Lakes and Centex “The Lakes” residential communities as well as an increasing demand for resale properties that include short sales, standard sales and bank-owned homes!

The positive metrics of home ownership and investor value here in Menifee are simple. Consider that a 3bedroom/2bath, 1,500 square foot home can be purchased for between $145,000-$155,000. This same home can be rented for approximately $1,350-$1,450 per month. Using FHA financing with just a 3.5% down-payment ($5,075-$5,425), the monthly principal/interest mortgage payment is between $657-$703! Even with the addition of taxes, hazard insurance and mortgage insurance, the total cost of home ownership is $1,000 or less, versus several hundred dollars more to rent.

If you or someone you know is interested in buying a home, whether a 1^st time buyer or investor, call me today! With the current market prices and incredibly low lending rates, the value of homeownership in Menifee and our surrounding communities is at a historic HIGH!

Did you know that Macala Realty provides turnkey property management services? With our careful review of potential applicants, we can help reduce the risk of vacancies; and with our periodic property inspections, we safeguard the condition and value of our client’s asset. Photo documentation, monthly statements & disbursements and annual income/expense statements are standard!

Call me today with any questions you may have about real estate in southwest Riverside County! My team and I look forward to the opportunity to provide outstanding service!

“Home prices continued a winning streak in August, the fifth straight month of price gains, but remain lower on a year-over-year basis...Even though the [year-over-year] rates are improving, national home prices are still below where they were a year ago," said David Blitzer, a spokesman for S&P.”

No real news there, right? The economy and subsequent lack of jobs, the challenges of the continuing foreclosure climate and tightened lending standards were all cited as factors that combine to prevent any significant increase in the housing market.  Although there is a sense of improvement in home values over the last few months, there are still many experts who believe we may see a 3% decline in year-over-year values nationwide by the end of 2012.

Is there any help on the horizon for homeowners who are underwater with their current loan? The answer is YES! “The home price report (from CNN Money above) comes on the heels of changes in the Home Affordable Refinance Program (HARP) announced Monday (Oct 24) by the Obama administration. The changes will enable many homeowners to refinance high-interest mortgages more easily, making their monthly payments more affordable. The plan should enable some to avoid default.” Under the new program, homeowners who owe more on their homes than they are worth will be able to refinance no matter how much they are underwater, as long as they are current on their payments. This is great news for those who have remained current on their mortgage payments but have been unable to take advantage of the historically low interest rates currently available. Call me directly 951-283-0932 for more information or go to www.fhfa.gov for all the most current info on this plan and its details or the release from HARP can be found directly by clicking here http://www.fhfa.gov/webfiles/22721/HARP_release_102411_Final.pdf.

If you’re an investor or wish to participate with a group of real estate investors, call me today 951-283-0932 to discuss opportunities to earn 6-8% annually on your equity! We have a great program for taking advantage of the excellent values in single family residences here Menifee!

Thanks for your time and we look forward to the opportunity to provide outstanding service!

Macala Realty was recently certified as a Women’s Business Enterprise (WBE) by the Women’s Business Enterprise Council-West in partnership with WBENC!

http://www.nctimes.com/business/article_91850f22-9e63-50d4-8859-93bac8f46778.html

I want to briefly share with you some fundamental data regarding current real estate trends and values.

As a follow up to the comments in my last message, statistics recently released by the National Association of Realtors indicate residential rental rates have increased 6.7% nationally.  Of course, the actual amount will vary in various communities but clearly, there is upward pressure on rental values, primarily due to the large number of households that have moved from homeowner to renter in the current economic climate we are experiencing.  With home prices and interest rates at all time lows, now is not only a great time for first time homebuyers but also for investors who can expect a significant return on their capital.

Per information just released by the California Association of Realtors, pending sales of homes in California increased in May 1.6% over the previous month.  The affordability index is currently 53%.  This number is based on how many people can afford to buy a median priced home based on the average income and assuming a down payment of 20% with a conventional fixed rate 30 year loan.  Consider that at the end of 2006, this number stood at 16%.  The current average fixed rate for a 30 year loan is 4.56% with .7% in fees/points.

Finally, in a recent announcement by the FHA, beginning on August 1, 2011, the Federal Housing Administration will extend the period for unemployed homeowners to miss mortgage payments from four months to a full year, providing qualified homeowners with more time to find employment before the foreclosure process begins. The new Special Forbearance program falls under the FHA’s Loss Mitigation program, which FHA-approved servicers must participate in.  The extended grace period only applies to FHA-backed loans and homeowners in the government’s foreclosure prevention program, the Making Home Affordable Program (MHA).  For more information, please visit www.makinghomeaffordable.gov

Please contact me directly at 951-283-0932 if you have any real estate questions!  I have sold over 200 homes over the last 3 ½ years and am committed to providing outstanding service!