Realtytrac, a company that compiles data on home foreclosures, showed in recent data that foreclosures are not a national crisis, but more of a regional problem.
There are pockets, places such as Stockton, CA and Las Vegas, NV where the foreclosure rate is in excess of 4%, however, the national average is 1.033%. Considering the fact that 30% of all homes are actually free and clear of any mortgage, the true foreclosure rate is actually seven tenths of 1% of all homes.
In Santa Rosa, the price range up to $500,000 has been hit hard and about 50% of all the homes on the market in that price range are ‘troubled’ sales. So yes we are hit hard, however, looking at the nation wide numbers, it gives perspective and brings the point home that NOW is a great time to buy or move up.
Have a great day!
Mirjam (mirjam@c21alliance.com)
Mr. Bernanke is a very busy man nowadays. Working weekends to make the J.P. Morgan Chase & Co/Bear Stearns Cos deal happen and a 1/4 point rate cut this Sunday is unprecedented. And then yesterday an other rate cut for the short-term interest rates with the 0.75 percent cut. This means that the federal funds rate, which banks charge each other for loans, has been lowered six straight times over six months, driving it down to 2.25 percent from 5.25 percent.
The Fed not only pushed its benchmark rate to the lowest point since late 2004, it also cut the discount rate by 0.75 percent to 2.5 percent. That’s the rate the Fed charges banks and brokers that borrow directly from it.
Some of us have worries about inflation and rightfully so. However, all and all for now, this is good news. And the reason to mention the news above is that some people who did sign an adjustable rate mortgage that will reset this year might be better of that they expect.
Should you be in that situation, take our your papers and look how the mortgage will change, based upon which index/rate. Especially if you house does not have the same market value as is had when you bought it and refinancing will be difficult. Look at what your mortgage will do, it might be not that bad…
Should you have difficulties finding the info in the note, don’t hesitate to call your Realtor or you lender and have him/her help you. They will be happy to do so. (I will…)
Have a great day, it might turn out better than you think!
Mirjam (mirjam@c21alliance.com)
In USA Today published an article “How’s the economy in your hometown?” With charts by, by way of Moody’s Economy.com. Although not mentioned, Sonoma County is in a recession. Recession and foreclosure go hand in hand…
On a positive not: look at the amount of states that are in expansion. Not too bad if you look at the overall picture…
Have a great day!
Mirjam
Yes, last weekend was the first weekend for this years Russian River Wine Road barrel tasting. Coming weekend will be the second. But last weekend was great and there were some great wines to taste. Make sure you pick up the little program book -> great for making notes.
We did go to Sunce and that is always a great place to go (they have a boche ball court and picnic tables). The Nebiolo futures was great and the Cab Franc future was my favorite. An other favorite was Martin Vineyard. You may or may not know that they are transitioning the winery into a biodynamic winery called Truett Hurst Winery. A few of the owners were there and is was great to hear their plans -> I am looking forward to the gardens (rumors are that the person who designed the old Fetzer gardens will also design these) and they are planning on having animals there too. Great for a picnic , your kids will love the animals! But this will take a while, hopefully some is ready by the end of summer.
Carol Shelton opened a wine tasting room at 3354 B Coffee lane, it’s in an industrial building. They are having a great thing going there. Her zins are spectacular, my favorite was the Karma Zin, Tony (my dearest hubby) loved the Petite Syrah from the barrel.
There is a fairly new winery of Piner Road, Benovia. Great location, they had life music. Their chardonnay is pricey but absolutely delicious!
And the winner was… for the first year part of the barrel tasting, normally NOT open to the public but the best of the afternoon… Windsor Oaks. They are grape growers and only a very small part of their grapes are used to make wines. But boy Julie the wine maker does know how to make wines! A long and beautiful road over the 720 acres they own, of Arata Lane in Windsor bring you to the winery. Great place and the wines… well let’s say we both loved their wines. We loved the Pinot Gris(barrel) and their Estate Chardonnay(barrel) and their Pinot, and their reserve Cab and their reserve Zin and the Malbec (barrel). Hat’s of for the winemaker. I talked to her, she wanted to make sure that you know that they are grape growers and NOT open to the public, only for events. So maybe I should not brag about her and keep it a secret… But all these secrets make Sonoma County the best place on earth to live!
So buy Real Estate in Sonoma County, all the more reasons to live and invest here!
Have a great day, enjoy the Barrels! (and drink responsibly)
Mirjam (mirjam@c21alliance.com)