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CONNIE DE GROOT on FOXBusiness.com LIVE
Speaking about the Case-Schiller Index on Housing release today.


Click Link to view: http://video.foxbusiness.com/v/3955066/rebound-or-rut-2010-housing-market/?playlist_id=87185!

Guests for Today Include:

1. Connie De Groot, Los Angeles Realtor and Broker
2. Mark Bronzo , Growth Equity Investment Manager at Security Global Investors
3. Peter Cane, Publisher of Boxoffice.com
4. Matt McCall, President of Penn Financial Group
5. Rick Newman, Chief Business Correspondent at U.S. News & World Report
6. Sean O’Neill, Editor at Budget Travel



JOIN THE CONVERSATIONE-mail us FBNlive@foxbusiness.com or follow us on http://twitter.com/fbnlive

Homes Pending & Sold in 90210 From Nov 1 - 9 !!!

Hello Neighbor,

If you want to see what homes have gone pending, closed escrow and at what price in 90210, just keep checking my website http://www.conniedegroot.com/ and click on IN THE NEWS. I update it every Monday just for you!

Buyers are still out there buying but success requires specialized marketing and a pricing strategy. If you are selling, pricing your home low may not be the way to get the best results. My clients at 1241 Beverly View are one of those successful stories having received multiple offers and the interest continues although we are in now in escrow.

Want to know more? Just give me a call.

_____________________________________________________

1241 Beverly View Drive- NOW IN ESCROW!!!

A beautifully remodeled approx 3000 sq ft One-Story Spanish home with serene views of the city of Beverly Hills, located on quiet cul-de-sac and with traditional spanish accents throughout. This home features 4 Bdrms plus a Maids, a Large Pool, a Living room with a pitched roof & views of city, a luxurious Master Bath and so much more! Most of the rooms open to the pool or have city views and it is just 5 minutes from the center of Beverly Hills and the Beverly Hills Hotel for convenience. For more details call Connie De Groot, Licensed Realtor/Broker in Beverly Hills at Ph 310 913.1184!
______________________________________________________

Homes PENDING in BEVERLY HILLS 90210 - Nov 1- Nov 9

1720 Carla Ridge, Beverly Hills, Listed At $ 4,950,000
BHPO 13377 Java Drive, Beverly Hills, Listed At $ 4,650,000
BHPO 2027 N Beverly Drive, Listed At $1,646,000

Homes SOLD in BEVERLY HILLS 90210 - Nov 1- Nov 9

624 N Hillcrest Rd., 78 Days On The Market, SOLD At $ 4,900,000, Listed At $ 5,250,000
1238 Coldwater Canyon Dr., Beverly Hills, 277 Days On The Market, SOLD At $ 2,850,000, Listed At $ 3,595,000
BHPO 3127 Hutton Dr., Beverly Hills, 89 Days On The Market, SOLD At $ 1,600,000, Listed At $ 1,840,000

CONNIE ON FOX BUSINESS NOV 5, 2009
Connie was welcomed by host Stuart Varney on Fox Business to discuss extending the tax credit to home buyers into 2010. They covered concerns over the cost, fraud in the program and its effectiveness. Original Air Date: Nov 5, 2009

http://www.foxbusiness.com/search-results/m/27271894/real-estate-broker-supports-tax-credit-plan.htm#q=connie+de+groot

HOMES SOLD in BEVERLY HILLS 90210 OCT 1- OCT 27

The list prices and the prices some of these homes actually SOLD for is evidence that there is room to negotiate! You can see that some of these buyers did very well- congratulations!! Once again, there are deals to be had in all areas and not just with bank-owned properties. If a home is over-priced you may be the only buyer looking at that house and this will give you time to negotiate with the Seller. If you are selling your home today, do yourself a favor, price it right.


HOMES SOLD in BEVERLY HILLS 90210 OCT 1- OCT 27


631 N Crescent Dr., Beverly Hills, 14 Days On The Market, SOLD At $ 6,500,000, Listed At $ 6,900,000
705 N Rexford Dr., Beverly Hills, 161 Days On The Market, SOLD At $ 4,100,000, Listed At $ 5,795,000
602 N Bedford Dr., Beverly Hills, 52 Days On The Market, SOLD At $ 3,226,000, Listed At $ 3,725,000
BHPO-9140 Hazen Dr., Beverly Hills, 158 Days On The Market, SOLD At $ 2,278,000, Listed At $ 3,695,000
515 N Alta Dr., Beverly Hills, 42 Days On The Market, SOLD At $ 2,870,000, Listed At $ 3,495,000
515 Alpine Dr., Beverly Hills, 119 Days On The Market, SOLD At $ 2,800,000, Listed At $ 3,195,000
504 N Hillcrest Rd., Beverly Hills, 62 Days On The Market, SOLD At $ 3,180,000, Listed At $ 3,395,000
625 N Alpine Dr., Beverly Hills, 58 Days On The Market, SOLD At $ 3,150,000, Listed At $ 3,700,000
BHPO-1642 Lindacrest Dr., Beverly Hills, 99 Days On The Market, SOLD At $ 2,400,000, Listed At $ 3,353,000
BHPO-2054 Coldwater Cyn Dr., Beverly Hills, 80 Days On The Market, SOLD At $ 1,546,762, LISTED At $ 2,395,000
446 S Camden Dr., Beverly Hills, 89 Days On The Market, SOLD At $ 1,630,000, Listed At $ 1,395,000
BHPO-9545 Dalegrove Dr., Beverly Hills, 6 Days On The Market, SOLD At $ 1,240,000, Listed At $ 1,249,000
BHPO-2250 Bowmont Dr., Beverly Hills, 73 Days On The Market, SOLD At$ 900,000, LISTED At $ 974,800

Pending Home Sales and Homes Sold Oct 1-Oct 20th in Beverly Hills 90210

PENDING HOME SALES in BEVERLY HILLS 90210 OCT 1 - OCT 20

Listed Price is the price when an offer was accepted and not necessarily the original asking price.

624 N Hillcrest Rd., Beverly Hills, 78 Days On The Market, Listed At $ 5,250,000

BHPO-1642 Lindacrest Dr., Beverly Hills, 99 Days On The Market, Listed At $ 2,795,000

BHPO-3111 Hutton Dr., Beverly Hills, 23 Days On The Market, Listed At $ 1,850,000

BHPO-3053 Hutton Dr., Beverly Hills, 56 Days On The Market, Listed At $ 2,095,000

126 N Le Doux Rd., Beverly Hills, 13 Days On The Market, Listed At $1,270,000

HOMES SOLD in BEVERLY HILLS 90210 OCT 1- OCT 20

631 N Crescent Dr., Beverly Hills, 14 Days On The Market, SOLD At $ 6,500,000, Listed At $ 6,900,000

705 N Rexford Dr., Beverly Hills, 161 Days On The Market, SOLD At $ 4,100,000, Listed At $ 5,795,000

602 N Bedford Dr., Beverly Hills, 52 Days On The Market, SOLD At $ 3,226,000, Listed At $ 3,725,000

BHPO-9140 Hazen Dr., Beverly Hills, 158 Days On The Market, SOLD At $ 2,278,000, Listed At $ 3,695,000

515 N Alta Dr., Beverly Hills, 42 Days On The Market, SOLD At $ 2,870,000, Listed At $ 3,495,000

BHPO-2054 Coldwater Cyn Dr., Beverly Hills, 80 Days On The Market, SOLD At $ 1,546,762, LISTED At $ 2,395,000

BHPO-9545 Dalegrove Dr., Beverly Hills, 6 Days On The Market, SOLD At $ 1,240,000, Listed At $ 1,249,000

BHPO-2250 Bowmont Dr., Beverly Hills, 73 Days On The Market, SOLD At$ 900,000, LISTED At $ 974,800
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Report Shows Foreclosures Increasing for High-End Homes

By Nick Timiraos

More evidence that the foreclosure pain that began in overbuilt middle-class communities is moving higher up the real-estate food chain: The share of foreclosures in the most expensive third of housing markets is on the upswing.

Around 30% of foreclosures are coming from homes in the top tier of the housing market, up from 16% when the foreclosure crisis began three years ago, according to new research from real-estate Web site Zillow.com. Meanwhile, the bottom one-third of the market now accounts for just 35% of foreclosures, down from 55% in 2006.

The Zillow research compared homes against the median value for their respective local market, and broke each market into three tiers—the bottom, middle and top third, by value. Zillow then looked at the share of monthly foreclosures in each tier over the past decade.

The Zillow area chart (above) offers a good visual representation of what’s happening. When the foreclosure crisis accelerated in 2007, foreclosures increased among all price levels, but they rose from historically lower levels at the middle and top tiers, increasing the foreclosure share among those price brackets.

This summer, foreclosures began to pick up again, and the high-end share of homes are accounting for a growing piece of the foreclosure pie. “The slope of that curve in recent months is much sharper than it was recently,” says Stan Humphries, chief economist for Zillow.

Foreclosures are moving up the food chain for a variety of reasons (see this WSJ story for more). One key factor: deterioration among prime mortgages to borrowers with good credit. These often included exotic mortgages, such as option adjustable-rate mortgages and interest-only mortgages, that were increasingly used to buy more expensive homes. Borrowers often aren’t able to refinance out of these products because home values have fallen, leaving them with little equity in their homes.

Zillow estimated that nearly one in four homes with mortgages was worth less than the value of the property at the end of June. Mr. Humphries says he doesn’t expect to see foreclosure volumes level off until later in 2010.


Home Buyer Tax Credit Won't Die Quietly

FHA Head Rejects Calls for Higher Down Payments

Home Buyer Tax Credit Won’t Die Quietly

FHA Head Rejects Calls for Higher Down Payments12

Hello Everyone, Here's what has happened in October in Beverly Hills Post Office, (90210). If you have any questions feel free to give me a call. I will update this information every week so check in often.




PENDING HOME SALES in BHPO 90210 OCT 1 - OCT 12
Listed Price is the price when an offer was accepted and not necessarily the original asking price.
3111 Hutton Dr., Beverly Hills, 23 Days On The Market, Listed At $1,850,000
1642 Lindacrest Dr., Beverly Hills, 99 Days On The Market, Listed At $ 2,795,000

HOME SOLD in BHPO 90210 OCT 1- OCT 12
2054 Coldwater Cyn Dr., Beverly Hills, 80 Days On The Market, SOLD At $ 1,546,762, LISTED At $ 2,395,000
2250 Bowmont Dr., Beverly Hills, 73 Days On The Market, SOLD At$ 900,000, LISTED At $ 974,800

Mortgage Modification Program Ahead Of Schedule

Mortgage modification program ahead of schedule, White House says

The $75-billion Making Home Affordable program, after a fitful start, has helped 500,000 borrowers get their payments lowered, the administration says.
By Jim Puzzanghera
October 8, 2009 8:57 a.m

Reporting from Washington - The Obama administration today said its much-criticized program to help homeowners avoid foreclosure had met its initial target of 500,000 trial mortgage modifications about a month ahead of schedule, touting the news as a sign the effort is gaining momentum.

FOR THE RECORD: An earlier version of this article incorrectly cited a cost of $50 billion for the Making Home Affordable program. The correct figure is $75 billion.

"We believe we are absolutely moving in the right direction and have reached an important turning point in our modification efforts . . . but we are nowhere near the finish line yet," said Housing and Urban Development Secretary Shaun Donovan.Donovan and Treasury Secretary Timothy F. Geithner announced the milestone, which they said was reached Tuesday, and later today are scheduled to meet with representatives of major mortgage providers to push for continued improvement in the administration's Making Home Affordable program.

The $75-billion program, announced in February, was designed to ease foreclosures by helping struggling homeowners modify the terms of their mortgages through refinancing, reduced principal or longer payment terms.But the program was slow in getting started, so the administration has been refining it. This spring it added cash incentives for borrowers and lenders to participate. And in July Geithner and Donovan pushed the chief executives of mortgage servicers to increase staff, streamline application procedures and improve their customer response.

The administration set a goal of 500,000 trial modifications by Nov. 1. That goal was reached three weeks ahead of time. Geithner said new trial modifications are being added at a faster rate than homeowners are becoming eligible for the program. Combined with a surge of about 3 million homeowners refinancing their mortgages because of lower interest rates, the housing market is beginning to stabilize, Geithner said."The broad signs we've seen in the housing market . . . are encouraging," he said. "They're still early and we're still living with some risk that housing is going to be a source of weakness for the broader economy and you still face an unacceptably large number of families at risk of losing a home they can afford to stay in.

"Bank of America, the nation's No. 1 mortgage servicer, said this week it would meet the goal set for it by the administration of 125,000 modifications by Nov. 1. The company said it had started about 95,000 modifications as of Sept. 30. Wells Fargo reported today that it had arranged 62,989 trial modifications under the program as of Sept. 30, nearly double the number of modifications it had done through the end of August.Administration officials said that about 40% of the nation's estimated 1.2 million eligible homeowners are participating in the program.

To qualify, a homeowner must be living in the house and the loan can't be above $729,500. The administration said it wants to modify 3 million to 4 million mortgages over the next three years.About 90% of the modifications are in a trial period, and administration officials are pushing to make those modifications permanent by streamlining documentation procedures.

High-End Homes Could Decline Further?

From: California Association of Realtors - BASED ON WALL STREET JOURNAL ARTICLE

Seeking real estate bargains? Try looking at the high endBuyers hoping to purchase deeply discounted homes may want to consider purchasing homes in the high end—especially those priced $2 million or more. In some cases, buyers may be able to command even lower prices on these homes, as financing continues to be a challenge for buyers of luxury homes.

MAKING SENSE OF THE STORY FOR CONSUMERS

· While data from the Federal Housing Finance Agency (FHFA) showed that average home prices rose 0.3 percent nationwide between June and July, including a 1.6 percent increase on the west coast, the data only relate to homes purchased with conforming loans guaranteed by the FHFA. These loans are mortgages of up to $417,000 or up to $713,000 in the country’s most expensive regions. The outlook for homes priced above that amount remains bleak.

· In many areas across the country there is a new level of value being established. According to one broker, homes that used to sell for $8 million now are selling for $6 million, while homes previously priced in the $10 millions are selling for $8 million. The price adjustment in the high end appears to be about 20- to 30 percent lower.

· A recent survey by Trulia.com showed that sellers listing homes for more than $2 million have reduced their asking prices by a total of $7 billion, with an average price reduction of 14 percent.

· Chip Case, economics professor at Wellesley College and coauthor of the Case-Shiller index, says that some of the markets finally may be catching up to the wider housing market downturn. “That level was more in the hold-out category,” he says. “Up until recently, the foreclosures weren’t hitting that level. But they are now. There’s no question about that. You’re seeing some contagion from the prime level to the luxury end.”

· Sooner or later, even high-end homeowners need to sell. And, when they get tired of waiting, they reduce their asking prices. Factoring in taxes, upkeep and the opportunity cost of keeping money in a non-performing asset, an empty luxury home may be costing owners a lot just by sitting there, giving them a powerful incentive to make a deal.

Read entire article: Wall Street Journal http://online.wsj.com/article/SB10001424052970204488304574429311693264646.html#

PENDING HOME SALES FOR 90210- SEPTEMBER 2009

If you thought no home was selling, think again! Homes that are priced well sell. A pricing strategy and global marketing campaign will give you the best chance of selling at the highest price. Call Connie for more details.

Listed Price is the price when an offer was accepted and not necessarily the original asking price.

72 Beverly Park Dr., Beverly Hills, 233 Days On The Market, Listed At $ 22,500,000
620 Walden Dr., Beverly Hills, 170 Days On The Market, Listed At $ 7,595,000
705 N Rexford Dr., Beverly Hills, 161 Days On The Market, Listed At $ 5,095,000
602 N Bedford Dr., Beverly Hills, 52 Day On The Market, Listed At $ 3,725,000
504 N Hillcrest Rd., Beverly Hills, 62 Days On The Market, Listed At $ 3.395,000
515 N Alta Dr., Beverly Hills, 42 Days On The Market, Listed At $ 3,195,000
1800 N Beverly Dr., Beverly Hills, 57 Days On The Market, Listed At $ 2,950,000
1160 San Ysidro Dr., Beverly Hills, 66 Days On The Market, Listed At $ 2,700,000
1150 San Ysidro Dr., Beverly Hills, 176 Days On The Market, Listed At $ 2,675,000
245 S. Camden Dr., Beverly Hills, 2 Days On The Market, Listed At $ 2,600,000
341 S. Swall Dr., Beverly Hills, 64 Days On The Market, Listed At $ 2,575,000
228 S. Swall, Beverly Hills, 34 Days On The Market, Listed At $ 2,395,000
12681 Mulholland Dr., Beverly Hills, 97 Days On The Market, Listed At $ 2,250,000
305 N Maple Dr., Beverly Hills, 5 Days On The Market, Listed At $ 1,895,000
2054 Coldwater Canyon Dr., Beverly HIlls, 80 Days On The Market, Listed At $ 1,795,000
126 N Maple Dr., Beverly Hills, 109 Days On The Market, Listed At $ 1,795,000
488 Hillgreen Dr., Beverly Hills, 35 Days On The Market, Listed At $ 1,725,000
3127 Hutton Dr., Beverly Hills, 89 Days On The Market, Listed At $ 1,697,000
9834 San Circle, Beverly Hills, 37 Days On The Market, Listed At $ 1,499,000
455 S. El Camino Dr., Beverly Hills, 198 Days On The Market, Listed At $ 1,499,000
1366 Angelo Dr., Beverly Hills, 166 Days On The Market, Listed At $ 1,399,000
446 S Camden Dr., Beverly Hills, 89 Days On The Market, Listed At $ 1,395,000
2290 Gloaming Way, Beverly Hills, 193 Days On The Market, Listed At $ 1,349,000
9545 Dalegrove Dr., Beverly Hills, 2 Days On The Market, Listed At $ 1,295,000
9011 Alto Cedro Dr., Beverly Hills, 14 Days On The Market, Listed At $ 1,250,000
1625 Clear View Dr., Beverly Hills, 51 Days On The Market, Listed At $ 1,000,000
222 S Hamel Dr., Beverly Hills, 28 Days On The Market, Listed At $ 999,500
9801 Easton Dr., Beverly Hills, Listed At $ 800,000
164 N Hamel Dr., Beverly Hills, 0 Days On The Market, Listed at $ 765,000

HOMES PENDING Sept 1 - Sept 22 in Beverly Hills CA 90210

@72 Beverly Park Dr., Beverly Hills, 233 Days On The Market, Listed At $ 22,500,000
@620 Walden Dr., Beverly Hills, 170 Days On The Market, Listed At $ 7,595,000
@705 N Rexford, Dr., Beverly Hills, 161 Days On The Market, Listed At $ 5,095,000
@515 N Alta Dr., Beverly Hills, 42 Days On The Market, Listed At $ 3,195,000
@1150 San Ysidro Dr., Beverly Hills, 176 Days On The Market, Listed At $ 2,675,000
@12681 Mulholland Dr., Beverly Hills, 97 Days On The Market, Listed At $ 2,250,000
@305 N Maple Dr., Beverly Hills, 5 Days On The Market, Listed At $ 1,895,000
@488 Hillgreen Dr., Beverly Hills, 35 Days On The Market, Listed At $ 1,725,000
@3127 Hutton Dr., Beverly Hills, 89 Days On The Market, Listed At $ 1,697,000
@9011 Alto Cedro Dr., Beverly Hills, 14 Days On The Market, Listed At $ 1,250,000
@1625 Clear View Dr., Beverly Hills, 51 Days On The Market, Listed At $ 1,000,000
@222 S Hamel Dr., Beverly Hills, 28 Days On The Market, Listed At $ 999,500
@9801 Easton Dr., Beverly Hills, Listed At $ 800,000

The Following Homes Went Pending then CANCELLED Escrow September1-22:

602 N Bedford Dr., Beverly Hills, Listed At $ 3,725,000
2290 Gloaming Way, Beverly Hills, 193 Days On The Market, Listed At $ 1,349,000
321 N Roxbury Dr., Beverly Hills, 51 Days On The Market, Listed At $ 2,699,000
126 N Maple Dr., Beverly Hills, 109 Days On The Market, Listed At $ 1,795,000
2250 Bowmont Dr., Beverly Hills, 73 Days On The Market, Listed At $ 916,800

The Following Homes Went Pending and CLOSED Escrow September1-22

511 N Beverly Dr., Beverly Hills, 42 Days On The Market, Listed At $ 3,395,000 -Sold At $ 3,200,000

1.4 Million Have Used Home-Buyer Tax Credit

Charlotte Business Journal

An estimated 1.4 million individuals have used the $8,000 federal tax credit for first-time home buyers, according to the Internal Revenue Service.
A Dec. 1 deadline looms for first-time buyers to purchase a house to qualify for the tax credit.
The credit equals 10 percent of the purchase price of a home, up to $8,000. It either reduces the individual’s tax payment or will be returned as a higher refund next year.
There are income limits to the program, which is designed to ease the housing crisis by reducing the inventory of homes on the market.

Connie's thoughts: KEEP THE $ 8000 FIRST-TIME BUYER TAX CREDIT

1. IT WORKED and studies have shown that hundreds of thousands of homes were SOLD , in part due to this tax credit. The article above says over 1 million buyers are already receiving this credit. If we do not have this credit we will see fewer sales and with more foreclosures coming to market, this could have a negative effect on housing.
2. When a house is sold it keeps stimulating the economy because it creates jobs for contractors, home amenity suppliers, etc. And we all know that a house is never done!
3. Housing was at the center of this recession, to stop a program that is working so well, at this time, could be a mistake.
4. Housing and housing related services STIMULATED THE ECONOMY and that's good since much of the stimulous package hasn't been put to work yet.
5. Some of the credits that were given in the past for other things were not spent and went into savings instead. The first-time homebuyer tax credit is being spent by new home owners on their home so it definitely stimulates the economy as intended.
6. The first-time buyer tax credit should also be extended to ALL HOME BUYERS for a period of time. The jumbo market is still sufferring and prices in those communities continue to decline. At least give a buyer of an expensive home something for moving forward today.

Some Facts On Housing in California

Calif. median home price
July 09: $285,480 (Source: C.A.R.)Calif. highest median home price by C.A.R. region July 09: Santa Barbara So. Coast $885,000 (Source: C.A.R.)Calif. lowest median home price by C.A.R. region July 09: High Desert $110,650 (Source: C.A.R.)

Calif. First-time Buyer Affordability Index
Second Quarter 2009: 67 percent (Source: C.A.R.)

Mortgage rates
Week ending 9/3/09 30-yr. fixed: 5.08% Fees/points: 0.7% 15-yr. fixed: 4.54% Fees/points: 0.6% 1-yr. adjustable: 4.62% Fees/points: 0.6% (Source: Freddie Mac)

Headline News Today!

Housing News Today Centers Around Foreclosures:
There are currently 1.5 Million loans in active foreclosure but there are 3.5-4 million additional loans the banks are holding that are also in trouble. And those newer jumbo loans made within the past 12 months are defaulting at a greater rate than before. The reason for these new jumbo defaults seems to point to jobs losses.

Other News Making Headlines:
China Selling Accelerates, Stocks Tumble 6.7%
Fewer Americans Fear Healthcare Costs: Poll
Lehman Claims Could Reach $100 Billion: PwC
As Internet Turns 40, Barriers Threaten its Growth
Japan Democrats Take Power, Challenges Loom
Merkel Loses Ground to Left in German States
Tribune May Exit Bankruptcy This Fall: Report
GM to Form China Venture with FAW
AIG Weighing Many Options for ILFC
Rep. Frank Eyes Fed Audit, Emergency Lending Curbs

New Home Sales Up In July 9.6%!

Housing Numbers Keep Getting better but always remember that real estate is local. There are different things going on in different neighborhoods so having someone that is knowledgeable and that you trust help advise you is critical to buying or selling well.

New Home Sales Are Up 9.6 Percent in July (vol. 433,000) - good news!
The reasons could be as follows:

First Time Home buyer tax credit
In California there is a 10,000 dollar tax credit for buyers of new homes.
A buyer of a new home in California could, if they qualify, take advantage of both credits.
Builders have been giving incentives to buyers such as upgraded appliances, financing, etc
Affordability has increased due to price and loan rates

But with all this good news there are still struggles in the market.

Obtaining jumbo loans continues to be a challenge for most buyers and this has greatly affected homes values in areas with homes over 1 million dollars.

New Appraisal Guidelines are further complicating closings when "out of area" appraisers try to calculate home values and/or because of the new requirements.

The tax credit for first-time buyers may expire the end of November

Many Adjustable mortgages are due to reset soon

More foreclosures are waiting to come to market (shadow inventory)

Commercial real estate showing serious signs of trouble

Unemployment keeps rising

But Let's End On A Good Note:
I am working with a few buyers on the West side of Los Angeles and we have lost out on many properties because of bidding wars! Yes, buyers are buying and making offers in good locations and on properties that are priced well. Those Sellers that get their home priced right SELL THEIR HOME and most often, have a choice of whom they will sell it to. Remember, getting a loan is difficult so you want the most qualified buyer!

If you have any questions or comments please send me an email of give me a call.
Connie

Just Listed A Great Home in 90210

I just listed a beautifully remodeled approx 3000 sq ft One-Story Spanish home with serene views of the city of Beverly Hills, located on quiet cul-de-sac and with traditional spanish accents throughout. This home features 4 Bdrms plus a Maids, a Large Pool, a Living room with a pitched roof & views of city, a luxurious Master Bath and so much more! Most of the rooms open to the pool or have city views and it is just 5 minutes from the center of Beverly Hills and the Beverly Hills Hotel for convenience. For more details call Connie De Groot, Licensed Realtor/Broker in Beverly Hills at Ph 310 913.1184!

HOUSING SALES IN BEVERLY HILLS 90210 AND SANTA MONICA 90402

CONNIE’S MARKET UPDATE !

ACTIVITY FOR AUGUST 1 - AUGUST 10 2009


NOW IN ESCROW FIRST 10 DAYS OF AUGUST 2009

418 ROBERT LN, Beverly Hills
$ 9,000,000

126 N MAPLE DR, Beverly Hills
$1,795,000

9831 PORTOLA DRIVE, Beverly Hills
$779,000


NOW SOLD/CLOSED FIRST 10 DAYS OF AUGUST 2009

806 N RODEO DR, Beverly Hills
lISTED AT $12,000,000
SOLD AT $9,500,000

1860 COLDWATER CYN DR, Beverly Hills
LISTED AT $1,239,000
SOLD AT $1,150,000

2100 N BEVERLY DR , Beverly Hills
LISTED AT $3,95,000
SOLD AT $3,850,000

403 20TH STREET, Santa Monica

LISTED AT $ 3,195,000

SOLD AT $ 3,050,000

What's Happening...Multiple Offers Again?

We are now seeing that buyers are rushing to those properties in the good locations/established neighborhoods that are priced well. That's good news for some but not for those buyers who lost out on a property they loved. Many buyers today are scratching their heads in dismay because they have heard there are DEALS and that they have the POWER yet many buyers are experiencing something quite different.

Just last week, I took out a buyer to see a new listing. There were over 50 people that came to the open house and that was amazing since the open house was not even advertised! We wrote an offer the next morning on that property but found out that the agent already received 3 other offers! I had a difficult time explaining to my client, who was also a first-time buyer, that she had to rush and to fight for this property. Most buyers think that this is their market and are surprised and angry to experience something reminiscent of a few years ago.

My client couldn't believe that someone would pay "asking" in this market and I understood her confusion because looking at current sales in the building, the asking price could have been a little high! So why did these buyers rush to make offers? This is what many do not quite understand. The reason is that the current supply of properties also effects the results. In this case, this property, according to recent sales in the building, may have been a little high, but considering the existing inventory, it looked like a DEAL. When I walked into the property I was equally amazed because I had seen nothing in the area that offered this much value. My buyer lost out on this property in Brentwood, California. After much discussion, my client did agree to fight for the property and did offer the "asking price " in the counter-offer she was provided. Unfortunately, my client who is a doctor with excellent credit did not succeed here because the other buyer offered over asking and with ALL CASH. In this case the "all cash" was a plus since the accepted price may not have appraised.

If you are a buyer and do not wish to compete in this manner then consider homes that have been on the market for over 100 days and those homes that are also over-priced. Here you will most likely be the only interested party and will have the time to perhaps negotiate a great deal.
Think about it. If you wish to discuss this more, feel free to call me.

Connie De Groot
Coldwell Banker - Los Angeles
http://www.conniedegroot.com/

HOMES IN ESCROW JULY 20 - JULY 31

The Following Homes in 90210 (Beverly Hills) and 90402 (Santa Monica) Opened Escrow between July 20th and July 31st!!! Congratulations to all these Buyers & Sellers!

424 Robert Lane, Beverly Hills, 17 Days On The Market, Listed At $ 7,900,000
2801 Hutton Dr., Beverly Hills, 14 Days On The Market, Listed At $ 1,799,000
620 22nd St, Santa Monica, 52 Days On The Market, Listed At $ 1,799,000
1360 Monte Placentia Wy, Beverly Hills, 165 Days On The Market, Listed At $ 699,000

The housing market has picked up since April and this trend seems to be continuing. Homes are selling but only if they are not over-priced so proper pricing that will later be supported by an appraisal is key to selling.

If you have any questions, please give me a call or send me an email.

Appearing On FOX BUSINESS CHANNEL Tomorrow Morning

I will be getting up early tomorrow morning, Saturday, to do a national TV show on Fox Business called "Your Questions Your Money". I will be a part of a panel answering, LIVE, viewer questions for one hour related to housing. All the fun begins bright and early at 7 am PST or 10 am EST!

Have a nice weekend,
Connie

Connie Speaks With Neil Cavuto On Fox News

FOX NEWS CHANNEL

Connie appeared with famed host NEIL CAVUTO on "Your World Cavuto" on the FOX NEWS CHANNEL to discuss another month of rising NEW HOME SALES and what this means for the national housing market. Original Air Date: July 27, 2009

click on link to view: Your World Fox News July 27 09

Existing-Home Sales Up Again

Washington, July 23, 2009

Existing-home sales rose for the third consecutive month with inventory easing and home prices declining less sharply in June, according to the National Association of Realtors®.

Existing-home sales – including single-family, townhomes, condominiums and co-ops – increased 3.6 percent to a seasonally adjusted annual rate1 of 4.89 million units in June from a downwardly revised pace of 4.72 million in May, but are 0.2 percent lower than the 4.90 million-unit level in June 2008.

Lawrence Yun, NAR chief economist, is hopeful about the gain. “The increase in existing-home sales occurred in all major regions of the country,” he said. “We expect a gradual uptrend in sales to continue due to tax credit incentives and historically high affordability conditions. Despite the rise in closed transactions, many Realtors® are reporting lost sales as a result of new appraisal standards that went into effect May 1 of this year.”

A June survey of NAR members shows 37 percent experienced at least one lost sale as a result of the new Home Valuation Code of Conduct, with seven out of 10 reporting an increased use of out-of-area appraisers. Seventy percent of NAR appraiser members said consumers were paying higher fees, while 85 percent report a perceived reduction in appraisal quality.
“Clearly the process needs to be revised, but the most logical approach is to use appraisers with local expertise, industry designations and access to local data, who make a physical examination of the property and use apples-to-apples comparisons with nearby home sales,” Yun said. “In many cases, normal homes are being compared with distressed homes sold at a discount, which often are in subpar condition – this is causing real harm to both buyers and sellers.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 5.42 percent in June from 4.86 percent in May; the rate was 6.32 percent in June 2008. Mortgage interest rates have trended lower in recent weeks.

Total housing inventory at the end of June fell 0.7 percent to 3.82 million existing homes available for sale, which represents a 9.4-month supply at the current sales pace, down from a 9.8-month supply in May. Raw inventory totals are 14.9 percent below a year ago.
“This is another hopeful sign – if we can keep the volume of sales above the level of new inventory, prices could stabilize in many areas around the end of the year,” Yun said.

An NAR practitioner survey in June showed first-time buyers accounted for 29 percent of transactions, unchanged from May, and that the number of buyers looking at homes is up nearly 12 percentage points from June 2008.

The national median existing-home price3 for all housing types was $181,800 in June, which is 15.4 percent below June 2008. Distressed properties, which accounted for 31 percent of sales in June, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes.

Single-family home sales rose 2.4 percent to a seasonally adjusted annual rate of 4.32 million in June from a level of 4.22 million in May, and are 0.2 percent higher than the 4.31 million-unit pace a year ago. The median existing single-family home price was $181,600 in June, which is 15.0 percent below June 2008.

Regionally, existing-home sales in the Northeast rose 2.5 percent to an annual pace of 820,000 in June, but are 4.7 percent below a year ago. The median price in the Northeast was $249,400, down 5.9 percent from June 2008.

Existing-home sales in the Midwest increased 0.9 percent in June to a level of 1.10 million but are 1.8 percent lower than June 2008. The median price in the Midwest was $157,000, which is 9.1 percent below a year ago.

In the South, existing-home sales rose 4.0 percent to an annual pace of 1.81 million in June but are 3.7 percent below a year ago. The median price in the South was $163,200, down 11.9 percent from June 2008.

Existing-home sales in the West improved by 6.4 percent to an annual rate of 1.16 million in June, and are 11.5 percent higher than June 2008. The median price in the West was $214,800, which is 24.9 percent below a year ago.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

Dangerously Delaying the Inevitable- By Morgan Housel July 2, 2009

"The Obama administration relaxed the requirements for government-backed mortgage modifications yesterday(July 1, 2009). The program, a $75 billion assistance plan announced earlier this year, originally allowed homeowners with loan-to-value ratios up to 105% qualify for refinancing, provided the loan is backed by Fannie Mae (NYSE: FNM) or Freddie Mac (NYSE: FRE). That limit has now been upped to 125%."

"The original mortgage modification program was failing to help as many people as Washington wanted. And focusing on housing makes sense from a recovery standpoint. This mess started in housing, and it'll surely end there."

"As Warren Buffett recently noted, fix housing and "the world will change in a big way."
But -- and this is a very significant but -- past evidence of the effectiveness of mortgage modifications is really, really atrocious. A recent report by the Office of Thrift Supervision and the Comptroller of the Currency detailing the amount of redefaults, or troubled loans that find their way back into default after modification, shows just what I'm talkin' about."

"Of the modified loans 30 or more days delinquent, here's what it found:
Modification Date (2008)
1. Three Months After Modification
2. Six Months After Modification
3. Nine Months After Modification
4. 12 Months After Modification

Source: Comptroller of the Currency, Office of Thrift Supervision, June 2009.
One year out, over 60% of modified mortgages end up where they started … in default. What's really amazing is how quickly things reverted: Just 90 days after modification, almost half of mortgages were back in default. That's utterly pathetic. Rising joblessness is the most obvious answer to why so many modifications fail. But that alone hardly accounts for the ungodly redefault rate. When unemployment goes up a few percentage points while redefaults hit 60%, something else is surely at play. And it is One of the big factors fueling redefaults is just what the Obama administration seems to be pooh-poohing: underwater homeowners."

"When your house is worth less than your mortgage, there's a huge incentive to give up and walk away even if you can make your monthly payments. The logic here is simple: The beauty of homeownership is based on a saying that goes something like "with every mortgage payment, you'll own a little bit more of your house." But when you're underwater, the only thing you "own" is the liability. Monthly payments decrease your debt, but you still don't own one inch of the house. The bank does. Taking away this fundamental sense of ownership zaps the incentive to keep making payments. The sensible thing to do, many find, is to stop paying and walk away."

"This is suicide on your credit rating and a nightmare for housing-heavy banks like Wells Fargo (NYSE: WFC) and Bank of America (NYSE: BAC), but the pros often outweigh the cons. When the job market is this tight, becoming mobile again is worth its weight in gold. When it comes down to it, high monthly payments aren't what are pushing many homeowners into default. It's the fact that their mortgage balances are so high that it doesn't make sense to keep making payments."

Moving on Now back to our Office of Thrift Supervision report. In the first quarter, a scant 1.8% of modifications actually reduced mortgage principal -- the kind of alteration that entices underwater homeowners to keep making payments. Most were interest rate reductions, or capitalizations of missed payments and fees. The latter is literally just taking debt you owed yesterday and tacking it on to what you'll owe tomorrow. Sober people think this is an effective way to solve an excessive debt problem. Honestly."

"And that's why the redefault rate is so high: Underwater homeowners are still highly incentivized to default, even with reduced monthly payments. And as home prices fall, their ranks are growing by the day. Modifications in their current form are, more often than not, just delaying the inevitable."

Pending Home Sales from July 1-July 20 in Beverly Hills 90210 and Santa Monica 90402

Pending Home Sales For Beverly Hills 90210:

1. Hartford Way Listed At $ 7,800,000
2. 1916 San Ysidro Dr. Listed At $ 1,039,000
3. 10001 Westwanda Listed At $ 399,000

Pending Home Sales For Santa Monica 90402:

1. 311 10th St Listed At $ 3,895,000
2. 523 14th St Listed At $ 2,969,000
3. 227 Alta Ave. Listed At $ 2,795,000
4. 636 16th St Listed At $ 1,991,000
5. 653 Kingman Ave Listed At $ 1,695,000

National Housing News

Lower rates sent applications to refinance mortgages shooting up 17.7 percent the week ending July 10, but requests for purchase loans were down 9.4 percent, the Mortgage Bankers Association said in releasing the results of its Weekly Mortgage Applications Survey. July 15, 2009

A record 1.5 million properties were in the foreclosure process – default notices, auction sale notices and bank repossessions – during the first six months of 2009, according to a report by RealyTrac. CNN: 1.5 million homes in foreclosure in '09 By Les Christie07/16/2009A

The White House Has A New Idea For Housing- like it?

CLICK TO VIEW CLIP: If You Can't Pay the Mortgage, Pay Rent?

Connie on Fox Business July 15, 2009 to discuss with Liz and David if mortgage defaulters should be allowed to rent their homes. Below are some points that were discussed on that segment.

This could be a bad idea for the following reasons:

1. The Banks will need to manage this and it will cost them time and money to manage.

2. They will add property management to their growing list of tasks? This is not what they specialize in doing and they have their hands full with short-sales, REO's etc.

3. Historically speaking, a large percent of those that default on a loan re-default. If this is so, the banks could be dealing with many that stop paying rent. Resolving this could cost time and money.

4. This doesn't send a good message to responsible borrowers. And what are the consequences for renters that stop paying?

5. Before trying an idea like this we should further explore increasing demand amongst those that truly can afford to own a home. There is a lot of money on the sidelines just waiting for the right opportunity. (the tax credit is working so more tax credits with higher limits are needed for first-time buyers, a capital gains exemption for investors for a limited amount of time should also be considered, etc.) These incentives do not need a lot of management and oversight so they are also cost efficient.

6. There are benefits with this plan IF the renter is responsible and taking care of the property. It would be good for the bank who owns that asset and it would be good for the neighborhood not to have a vacant home. Nevertheless, the troubles caused by those that DO NOT live up to their commitments may far outweigh these benefits.

What do you think?

WHAT ABOUT MORE TAX INCENTIVES FOR HOUSING

HERE'S SOMETHING TO THINK ABOUT:

For the money we gave to GM we could have given 3.3 MILLION HOME BUYERS a tax credit of 15,000!! This would have gone a long way to stabilizing housing. As Warren Buffet said...we must fix housing to turn this economy around.

For the past year, I have strongly suggested more TAX INCENTIVES for home buyers. Historically, sales/price discounts have worked and businesses that are offering good deals are finding buyers today! It is working in retail. People are seeing deals with restaurants, hotels and clothing stores and people are being lured towards those businesses because they see a DEAL.

This is why, more incentives for first-time home buyers AND ALL HOME BUYERS is a very good idea. Some suggestions:

A. For a limited time, give investors a CAPITAL GAINS HOLIDAY if they purchase a home today. It will cost taxpayers nothing now, it will stimulate the economy, increase demand and get us closer to stabilizing housing. The government will not receive much revenue from capital gains for a few years anyway but investors will see the benefit and respond. We still have lots of money sitting on the sidelines waiting for the right opportunity!

B. Extend the tax credit to first-time home buyers through next year, increase the amount to
$ 15,000 and offer it to buyers of all homes or offer it to first-time buyers only and a capital gains holiday to all other buyers of homes (of course set an upper price limit)

Santa Monica 90402 Homes Pending or With Accepted Offers

HAPPY 4TH OF JULY !!!!

According to the Multiple Listing Service the following homes are PENDING or have ACCEPTED OFFERS to purchase but are looking for backup offers. Data from period June 1, 2009 - July 1, 2009 in Santa Monica 90402(Single Family Residence):

PENDING SALES:
1. 315 Palisades Listed At: 5,299,000
2. 310 22nd St Listed At: 4,495,000
3. 403 20th St Listed At: 3,195,000
4. 634 23rd St Listed At: 2,750,000
5. 633 11th St Listed At: 2,299,000

ACCEPTED OFFERS BUT STILL LOOKING FOR BACKUP OFFERS:
1. 133 17th St Listed At: 3,695,000
2. 457 24th St Listed At: 2,495,000

For updates on this neighborhood continue to visit my website/blog.

Beverly Hills 90210 Homes Pending or With Accepted Offers

According to the Multiple Listing Service the following homes are PENDING or have ACCEPTED OFFERS to purchase but looking for backup offers. Data from period June 1, 2009 - July 1, 2009 in Beverly Hills 90210 (Beverly Hills & BHPO):

ACCEPTED OFFERS BUT STILL LOOKING FOR BACKUP OFFERS:
1. 1357 Schuyler Rd Listed At 2,495,000
2. 9712 Heather Rd Listed At 3,299,000
3. 3335 Clerendon Rd Listed At 4,795,000
4. 1435 Loma Vista Dr Listed At 5,999,000
5. 527 N Hillcrest Rd Listed At 3,950,000
6. 2100 N Beverly Dr Listed At 3,995,000
7. 9788 Oak Pass Rd Listed At 1,649,000
8. 9834 San Cir Listed At 1,499,000
9. 2985 Hutton Dr Listed At 2,649,000
10.2075 N Beverly Dr Listed At 2,495,000
11.515 N Alpine Dr Listed At 3,195,000

PENDING SALES:
1. 9486 Rembert Ln Listed At 2,950,000
2. 475 Castle Pl Listed At 4,975,000
3. 9476 Hidden Valley Listed At 1,200,000
4. 126 N Maple Dr Listed At 1,795,000

Pending Home Sales For May 2009

May Pending Home Sales Are UP 5.7 percent from May 2008- Nationally

Data On Regions Across the Country:
West: UP 2.2 percent
Northeast: UP 3.1 percent
South: DOWN 1.7 percent
Midwest: DOWN 1.3 percent

May Pending Home Sales Are UP 0.1 percent from April 2009-Nationally

This is the fourth consecutive month pending home sales are UP but actual existing home closings were only up 2 months and this may be due to delays in obtaining loans and because some buyers are having more difficulty obtaining loans because of new appraisal standards.

10 Worst Real-Estate Markets for 2009

CNN Money.com
Sources: National Association of Realtors; Moody's Economy.com

The housing market hasn't bottomed out yet. For the third quarter, the closely-watched S&P Case-Shiller national home-price index fell 16.6%, and experts are predicting further declines. Of the top 100 markets, here are 10 with the worst forecasts.
1 of 10

1. Los Angeles
2008 median house price: $375,340
2009 projected change: -24.9%
2010 projected change: -5.1%

The median home price in the L.A.-Long Beach-Glendale metro area is projected to fall nearly 25% in 2009 - the biggest drop in the country.

2. Stockton, Calif.
2008 median house price: $248,050
2009 projected change: -24.7%
2010 projected change: -4.0%

One in every 94 homes received a foreclosure filing this November in this northern California market near Sacramento, according to RealtyTrac. Eight of the ten worst housing markets projected for 2009 are in California.

3. Riverside, Calif.
2008 median house price: $256,540
2009 projected change: -23.3%
2010 projected change: -4.8%A popular

4. Miami-Miami Beach
2008 median house price: $293,590
2009 projected change: -22.8%
2010 projected change: -6.4%Miami

5. Sacramento
State Capitol building in Sacramento
2008 median house price: $225,140
2009 projected change: -22.2%
2010 projected change: 2.3%

High jobless rates and low population growth are helping burst the capital city's inflated housing market. Prices are expected to fall another 22% in 2009, after tumbling 34% in 2008.

6. Santa Ana-Anaheim
2008 median house price: $532,810
2009 projected change: -22.0%
2010 projected change: -3.5%

Of the 100 biggest markets, this Orange County area, which includes Anaheim and Irvine, was the fifth most expensive place to live this year. But in 2009, prices are forecast to decline by $121,000.

7. Fresno
2008 median house price: $257,170
2009 projected change: -21.6%
2010 projected change: -3.3%

Fresno is located between Los Angeles and Sacramento, but it shared their housing woes. Prices in 2009 are expected to fall 44% from just two years ago.

8. San Diego
2008 median house price: $412,490
2009 projected change: -21.1%
2010 projected change: -2.9%

As the luxury condo boom continues to fizzles, median home prices in this southern California market are forecast to fall $87,000 to $326,000 in 2009.

9. Bakersfield, Calif.
2008 median house price: $227,270
2009 projected change: -20.9%
2010 projected change: -2.5%

This city north of Los Angeles had the ninth highest foreclosure rate in November, as one of the country's largest real estate bubbles continues to burst. Including Bakersfield, six of the ten worst foreclosure markets were in California.

10. Washington, D.C.
2008 median house price: $343,160
2009 projected change: -19.9%
2010 projected change: -5.7%

This market, which includes bordering Virginia towns Arlington and Alexandria, is cooling off from record highs. Forecasts call for median prices to slide 20% to $275,000 in 2009.

Obama Mortgage Refinancing Program May Expand

Obama Mortgage Refinancing Program May Expand, Lockhart Says
By Dawn Kopecki and Jody Shenn

June 19 (AP) -- President Barack Obama’s program to help more homeowners refinance may be expanded to include borrowers who owe more than 105 percent of their homes’ values, Federal Housing Finance Agency Director James Lockhart said.

The Obama administration is considering allowing Fannie Mae and Freddie Mac to refinance loans with current loan-to-value ratios of 125 percent or higher, Lockhart said at a National Association of Real Estate Editors Association conference in Washington yesterday.

The Home Affordable refinancing program, announced Feb. 18, is part of the U.S. government’s efforts to stem soaring foreclosures and bolster consumer spending. The 125 percent level on loan-to-values would preserve the ability of Fannie Mae and Freddie Mac to package and sell the debt into so-called real estate mortgage investment conduits, he said. While 125 percent loan-to-value ratio is on the table, Lockhart said “it’s not necessarily the number we’re going to end up with.” "

The program has been “seeing a slowdown” as mortgage rates increase, he said. The average rate on a typical 30-year fixed loan was 5.38 percent this week ended yesterday, according to McLean Virginia-based Freddie Mac. The rate is up from a record low of 4.78 percent at the end of April.

Under the program, borrowers with loans already owned or guaranteed by Washington-based Fannie Mae or Freddie Mac who have loan-to-value ratios of 80 percent to 105 percent and aren’t delinquent can refinance without buying mortgage insurance, or paying for more insurance than they already have.

Dow Jones and Bankrate.com reported the comments

"Tax Credit For Home Purchases Could Rise"

Hello bloggers! I have been speaking for months about lifting the limits of the tax credit so that ALL BUYERS could receive a credit. I also feel that a cap gains exemption might be another avenue to consider since the government needs tax money with all the new spending but they will not be receiving much from cap gains for the next few years. Here's the article....

By Stephanie Armour, USA TODAY

Lawmakers and businesses are calling for expansion of a tax credit for first-time home buyers that has helped spark home sales in an otherwise dismal real estate market. With the tax credit scheduled to expire in fall, some business groups say the amount of the credit, now capped at $8,000, should be raised to $15,000 and applied to anyone who buys a home.
First-time buyers make up a hefty 40% of home purchases, according to the National Association of Realtors (NAR), which is about 5 percentage points higher than the historical average. The credit, introduced in July 2008, was expanded in February as part of the economic stimulus package. The proposals may face headwinds amid growing public criticism of government spending to rescue the economy and the widening budget deficit.

Some economists say a tax benefit is vital to spur home buying and help stabilize prices.
"I'm fairly confident that (Congress) will extend the tax credit, because it is so important that housing come back," says Bernard Baumohl, an economist at the Economic Outlook Group. "But raising the tax credit will be difficult because it reduces taxes even more."
The White House had no immediate comment Sunday.

Current proposals:
•A Senate bill to expand the tax credit to $15,000 for any home buyer regardless of income was introduced this month by Sen. Johnny Isakson, R-Ga. It is co-sponsored by Senate Banking Committee Chairman Chris Dodd, D-Conn.
"It would go a long way toward inducing trade-up buyers into the market," says Lawrence Yun, chief economist at the NAR.
•A House bill to keep the $8,000 credit in place until June 2010 and expand it to all home buyers was introduced last month by Rep. Kenny Marchant, R-Texas. It also would provide a $3,000 credit to homeowners who refinance.
•Another bill in the House, introduced by Rep. Eddie Bernice Johnson, D-Texas, would extend the credit to all home buyers through 2010.
The Business Roundtable, a consortium of CEOs from large companies, urged Congress this month to expand the tax credit to $15,000 and make all home buyers eligible.
"The issue is how do we stimulate the move-up market, and that's essential for the economy," says Richard Smith, CEO of Realogy, the parent company of Century 21, Coldwell Banker, Sotheby's International Realty and ERA.

"I think it's going to be a bipartisan effort," Smith says. "The issue is how to pay for it."
The current tax credit does not apply to singles earning more than $95,000 a year and couples who earn more than $170,000. Some business leaders want the income caps eliminated.
Buyers do not have to repay the tax credit if they occupy the home for three years or more.
"A lot of people are taking advantage of it," says David Thomas, a Realtor in Washington, D.C., who adds that expanding the credit would boost the market. "That would be a fantastic idea, to enhance and expand the incentives

FINALLY THE WORD IS GETTING OUT THERE- THE HIGH-END NEEDS HELP!

For about 6 months now I have used just about every opportunity on National Television to voice my concern that giving incentives just to the low-end and first-time home buyers would not be enough to help housing. It is time we give incentives to ALL BUYERS. We are now seeing more problems in higher-end areas due to high lending requirements such as: high down payments & high mortgage rates, and to the perception that high-end areas will still decline.

When sub-prime loans disappeared, homes in low-end areas dropped drastically but low rates, FHA loans requiring a 3.5 percent down payment and a first-time home buyer credit DRAMATICALLY INCREASED DEMAND. We do not have the same help for high-end areas thus far and if something is not done SOON, I agree with Jody Shenn's Bloomberg article, the suffering will continue.

Here is that article.......

Millionaire Homes’ May Lose Value Until 2012-
By Jody Shenn, June 16, BLOOMBERG

Prices for the most expensive U.S. homes may not reach bottom for another few years, according to JPMorgan Chase & Co. analysts. The CHART OF THE DAY shows the supply of unsold homes by price in California, data that the mortgage-bond analysts including John Sim and Matthew Jozoff used in a June 12 report to illustrate the weakening market for the most-expensive residential properties. The supply of homes priced $750,000 to $1 million held steady while the supply of more expensive properties increased. “Tighter lending standards and the lack of cheap financing for these borrowers continue to be key issues,” the New York- based analysts wrote, referring to “jumbo” mortgages. That’s after so-called interest-only and option adjustable-rate loans were a “major driver” of soaring values, they said.

The government’s moves to aid the housing market include the Federal Reserve’s mortgage-bond purchases to drive down interest rates; President Barack Obama’s “Home Affordable” loan modification and refinancing programs; and new tax credits for some first-time buyers. None of the U.S. initiatives “directly focused on helping the sales of these so-called millionaire homes,” the analysts wrote. “Currently, we have national home prices bottoming in 2011,” they said. “However, prices for more expensive homes may not bottom out until 2012, and ultimately result in peak-to- trough declines in excess of 60 percent (compared to 40 percent nationally).”

“California is probably worse than other states, but higher-priced homes in general are going to be a problem,” Sim said in a telephone interview today. The state’s median sales price for existing single-family homes fell 37 percent in April from a year earlier, to $256,700, according to California’s Association of Realtors. Nationwide, the price fell 15 percent to $169,800, according to the National Association of Realtors.

TAX CREDIT MAY BE GIVEN AS CASH TO BUYERS & 100 % FINANCING MAY BE HERE AGAIN-

This is targeting some buyers with the least amount of disposable income and many who are not in the best position financially, with a delicate economy, to take on this responsibility.

Current policies are helping to make buying a home (in certain areas and price ranges) almost too good to pass up. This is a good thing but only when qualified buyers participate. We experienced what happened when housing was "hot", when word spread and greed took over.

We already know that allowing people to purchase a home with very little down is a bad idea. There should be a significant investment that gives buyers a real incentive to stay in their home and honor their contractual commitments regardless of the market or a personal situation.

The number of first-time home buyers will decrease and our market will be left with traditional buyers who are not responding as strongly to the market but tax incentives could help this trend improve.

It is unfair that low-end housing and first-time home buyers have all the existing benefits and sellers in other higher-end markets and buyers making over a certain limit are simply being ignored.

A first-time home buyer buying in the low-end could have the following options: 100 percent financing, low mortgage rates, very low home prices, and now cash to make buying even easier and risks of buying even lower should the buyer decide to just walk away from the property and his/her responsibilities.

Connie De Groot

Comment:

Roberto Magalhaes at 6:01pm June 8
Hi Connie,Aren't there financial qualifiers for the 100% home financing or is the government taking on some of the risk?My general experience, not necessarily in the US, is that 100% financing of capital goods always lends itself to a loss on the lender side since recovery of foreclosed assets is costly.Dank u! Roberto

Home Sales Are On The Rise But How Can We Keep Up The Momentum?

REASONS SOME BUYERS ARE BUYING:
The expiration of the first-time home buyer tax credit is coming soon and is one reason buyers are buying now therefore this buying trend will most probably continue until rates change affordability for those first-time home buyers.
2. Commodity prices are up, the dollar is weakening and inflation is already being discussed so some are buying as a hedge against inflation.
3. Consumer confidence leaped up in May so this is also a contributing factor as to why pending sales are up by 6.7 percent which is the largest gain in 7 years!
4. Pending home sales are up for the 3rd month in a row based on affordability (prices, mortgage rates and income) and the first-time home buyer tax credit.

HOW TO KEEP THE MOMENTUM GOING
1. Give a tax incentive to buyers of ALL HOMES and also allow multiple purchases and consider extending it past Dec 09 but DO NOT ANNOUNCE IT NOW.
2. Raise the tax credit limit to 15,000 dollars to give incentive in higher priced marketplaces who also have desperate sellers
3. Consider raising the conforming loan limits higher than $ 729, 750 in higher priced areas and also ONLY FOR A LIMITED PERIOD OF TIME.
4. If giving buyers credits on each home they purchase is not favorable,why not offer repeat home buyers a capital gains exception for as long as they own those properties.
5. There is no secondary market for jumbo loans so perhaps the Federal Reserve could help restore liquidity in this market by buying these loans under the TALF program.

CONCERNS:
1. 1 in 12 mortgages in the U.S. are delinquent.
2. There is a stark rise in prime loan delinquencies.
3. Continued lack of financing for jumbo loans (no secondary market and lenders fears that prices will continue to come down in that market).
4. Continued job losses will negatively impact delinquencies and foreclosures.
5. Interest rates have come off their lows and if this upward trend continues many buyers will not be able to afford to buy.
6. A 40 month supply of homes above 750K currently exist and that market has virtually no tax incentive,difficult financing if a jumbo is required, and buyers are still concerned prices will continue to fall so they are on the fence.

BREAKING NEWS-April Existing Home Sales Rise

Connie appeared on FOX BUSINESS NEWS "Bulls & Bears" hosted by Liz Claman and David Asman to discuss the possible write-downs on home mortgages. Connie shared her concerns and also what she thought could further boost demand for housing. To see clip go to http://www.conniedegroot.com/ and click on Connie on TV- look for original Air Date: May 26, 2009.

BREAKING NEWS.......

April existing home sales rise by 2.9 percent nationally up from March.

The median sales price dropped to $172,000, down from $201,300 in the same month last year. That was the second-largest drop on record after January, when prices fell 17.5 percent.

Homes over 750,000 dollars currently have a 40 MONTHS SUPPLY OF HOMES.

Existing-home sales in the West rose 3.5 percent to an annual rate of 1.17 million in April and are 19.4 percent higher than a year ago. The median price in the West was $222,600, down 21.8 percent from April 2008.

There are incentives in the low-end that have stimulated buying activity for several months now. Almost half the homes sold were distressed sales. Low rates, low prices, a first-time home buyer tax credit are all contributing factors to the boom in sales.

Now is the time to let your elected officials know that the tax credit should be extended to buyers of ALL HOMES. The pool of buyers will not increase overnight and we MUST INCREASE THE DEMAND so we need to get as many qualified buyers to buy now. We have little movement with homes over 750,000 dollars because we have higher loan rates, more challenging lender requirements, larger down payments required and banks are more reluctant to do jumbo loans since there is no secondary market. This market needs some help so if we could give a tax incentive this might get a few more homes sold. The limit should also move to up to 15,000 dollars and this should only be offered for a limited period of time to create urgency in the marketplace. Lawrence Yun speaks to creating a secondary market...

Lawrence Yun, NAR chief economist, "Most of the sales are taking place in lower price ranges and activity is beginning to pick up in the midprice ranges, but high-end home sales remain sluggish," he said. "The Federal Reserve needs to help restore liquidity for the jumbo mortgage market by buying these loans under the TALF program."

Spread the word.....

Connie

First-Time Home Buyer Tax Credit: 6 Things to Know

While the proposed $15,000 home-buyer tax credit died in negotiations between the House and the Senate, the $787 billion stimulus bill that President Barack Obama signed into law Tuesday includes a similar--albeit smaller--measure designed to help revive the real estate market. Here are six things you need to know about the freshly-enacted $8,000 first-time home buyer tax credit.

1. Eight grand, new buyers: The tax credit included in the economic stimulus legislation is much narrower than the $15,000 proposal. This credit is equivalent to 10 percent of the purchase price of the home--although it's capped at $8,000--and applies only to first-time home buyers and principal residences. But unlike an earlier $7,500 home buyer tax credit, this one does not have to be repaid.

2. First time buyers defined: For the purpose of this legislation, a "first-time home buyer" is someone who hasn't owned a principal residence for three years before buying a house. (The date of purchase is considered the day that the title is transferred.) That means if you've owned a vacation home--but not a principal residence--within the past three years, you would still qualify for the credit.

3. 2009 buyers only: Only those who purchase a home on or after January 1 and before December 1, 2009 are eligible for the credit. Anyone who bought a home last year won't be able to take advantage of it.

4. Income limits: The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit, that's $150,000 for married couples. Those earning more than these thresholds may be eligible for reduced credits.

5. Refundable: Because the tax credit is "refundable," qualified buyers can take advantage of it even if they don't have much tax liability.

6. Recapture: Buyers have to own the home for at least three years in order to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government. (Exceptions will be made in certain cases, such as death or divorce.)

written by Luke Mullins

Connie on Money For Breakfast at 4:45 am May 18, 2009!

Connie appeared via Satellite on the morning show "Money For Breakfast" hosted by Alexis Glick to discuss California's deficit, the suggested selling of San Quentin, the Los Angeles Coliseum and the upcoming vote on May 19th which polls are showing most unpopular. Original Air Date: May 18, 2009. To view clip go to "Connie on TV".

HANNITY- Fox News Channel

Clips from the "HANNITY SHOW" To view the segment just go to my website: www.ConnieDeGroot.com and click on "CONNIE ON TV".

Here are some of the comments received after the show.

Jane Hanson, Seaside CA
Dear Connie, we saw you last evening on the Hannity show and just want to tell you that you are NOT alone out here in CA!!! I was so happy to hear you say that People DON'T Get IT! It's getting more and more disheartening as the days go by and I"m so unsure of where our country is headed. Thank you for speaking up for us!

Sergeant Michael Bustamante, Anaheim Police Department

I just wanted to say I was impressed with your segment on Fox News Live. I felt you were very well informed and have a strong opinion about the economy, and housing situation. It was nice to hear someone making sense of this whole economic situation. (Responding to appearance on "Hannity")

Mark Hanlin

Connie, from the brief clip of you that I saw tonight, I have to say I was impressed--you presented your position well, with authority and expertise (not everyone can keep up with Hannity). My thoughts...gosh, where do I begin?? At the risk of sounding like a right-wing whacko, I must admit I'm concerned with the direction our country is taking, fiscally, politically, socially. And coming from 20+ yrs in the military, throw national security into that mix! I definitely think TARP was a BAD idea, and I'm supremely disappointed in the previous administration for setting us down that path. I've noticed over the past 10 or so years that I've become something of a news junkie, and now wish I'd paid more attention in Poli Sci class...! I will be very interested to see what happens in the next several years. (Responding to appearance on "Hannity")

Jim Morris

Connie, I just saw you on Hannity and wanted to send you a message. Right on target with your outlook on the economy and housing. Absolutely stunning also.

Steve Klar, ERGONOIC REALITIES

I saw you on Sean Hannity show tonight. You really had a lot of good thoughts on banks and how our tax dollars are being wasted on them. I agree with your conservative values.

Ray Ralston, Arizona

Hello Connie, I saw your interview on the Sean Hannity show the night of May 7th. You are right. Most people don't get what is happening to our country. Obama is marching us to Communism. The government is taking a little at a time.My son and I are trying to get into real estate investing over the last 2 years. Because of one thing or another, including me losing my job last July, and have not found one since, it has been a slow go. Now the government is changing the rules almost daily and making it extremely difficult to get any property. We may have found something just in the last week and are proceeding with an offer and hopes of a loan approval in a short time. This would finally be our first investment.

Maria Apodaca, California

Good Evening Connie, I saw you on Hannity this evening and I was very impressed with what you had to say. A conservative voice is very unusual in LA. I admire people who speak up and are not ashamed of what they believe. Thank you for taking a stand!

Tracy Grote, MAI, CCIM- TRACY GROTE & COMPANY, Austin Texas

Ms. De Groot, THANK YOU for presenting an aspect of the real estate industry to the public through your interviews on the various TV shows. As you may be aware, Costar stated today that during the 1Q2009, the commercial real estate brokerage firms are realizing a decline in sales and market activity. Whereas the housing market lead the way in the real estate downturn due to poor lending practices and underwriting, the commercial real estate market is next in line. Again, THANK YOU for presenting a logical, concise, real-world look at our present economic situation.

Connie in New York on "HANNITY"-

I went to New York to do several shows and was fortunate enough to be on with Sean Hannity. I know that many out here in California do not share his opinions but it is my feeling that he presents both sides of an issue as he did the night I appeared. To view this segment that appeared on the FOX NEWS CHANNEL May 8, 2009 just click on the link!

Hannity Recorded May 7, 2009, FNC
Connie De Groot on Hannity (In studio) May 7, 2009