“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!

I’d like to take this opportunity to share with you that NOW is a great time to take a positive step towards creating or strengthening your own financial independence!  As you know, real estate values are extremely attractive and interest rates are currently at historical lows!  There are incredible opportunities throughout southwest Riverside county to purchase single family residences that will provide positive cash flow as rentals and provide outstanding annual cash-on-cash returns!   Call me today to discuss how we can help you identify and evaluate the best opportunity for you and negotiate a successful real estate purchase.

Additionally, Macala Realty provides comprehensive property management services!  We can manage the rehab (if necessary), solicit, screen and assist you in selecting the best tenant, complete lease negotiations and provide ongoing supervision and maintenance of your real estate asset to maximize the final return!

Lastly, as you may know from recent news reports, approximately 1 out of every 6 homeowners in America is behind on their mortgage payments.  If you or someone you know is behind on the payments of your primary residence and would like to discuss your options, please call me today!  Foreclosure can be avoided, your credit can be saved, and your financial future can be salvaged. I am a Certified Distressed Property Expert (CDPE).  I have the training AND experience needed to help you achieve the most advantageous resolution for you!

My staff and I thank you for your continued confidence in Macala Realty and we look forward to the next opportunity to provide you with outstanding service!