Arizona Are You Crazy?

Arizona Are You Crazy?

I've seen it all now,  This may be old news to those who live in Arizona but new to me.  Like a drunk looking for its next drink the state an federal law makers keep spending money and therefore keep trying to find new ways to get more.



We are in a recession which means nothing to those in power. They can tax more, but fewer have jobs can't get enough money. Then tax the businesses, but that causes unemployment. Well, government must spend more. I know how we can add big or little programs all we need to do is print money at the federal level, but that leads to staggering inflation. What to do? WHAT TO DO?



You see the politations only want power and they need to spend. How do we let them know it is not their money? It is the collectives money or our money. We all pitch in and pay a little how could it hurt. Well, California is broke and Arizona must be also. Soon, Washington we will be. Here is an idea! How about selling the Washington Monument and the White House. After all we could get money for them to help with the Trillions we are currently spending. Now you may be saying Tim that is crazy, right?



Here is Arizona's answer to the lack of money. They are selling off their office buildings that houses most of the State of Arizona's government. Recently the politicians for Arizona put the state buildings on the market to help this broke state close its budget deficit. Then they intend to lease them back on a long term lease. It is looking like a pretty good deal, if the state can prove it is credit worthy.



The the best piece to sell is the executive office tower, which holds the executive functions of government as well as the secretary of state, the state treasurer and the state mine inspector, and is valued at $39,511,240.



Keep watching I will let you know when California sells the Golden Gate Bridge.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

Oh No Mortgage Rates Climbing

Oh No Mortgage Rates Climbing
Oh no Mortgage rates are climbing and that is the biggest threat to a good real estate market. Yes, I said oh no to the increase in mortgage rates that are climbing because it will reduce the value of the home a buyer can afford and force more buyers into the conforming part of the market $500,000 and below. If we have 20 offer per home in the lower part of our market we will have even more people bidding for the same property.

Mortgage rates increases are climing over the past three weeks. The costs go up when this happens. As a consumer you must look at the mortgage rate and the points that need to be paid up front to get the rate quoted.

The average 30 year fixed rate mortgage was up 1 one basis point (asis point is one-hundredth of a percentage point).

Adjustable rate mortgage split the one year adjustable rate mortgage rose 3 basis points, while the 5/1 arm dropped 5 basis points.

Mortgage applications dorpped for the second straight week falling a 12.3 percent when compared to a week earlier according to the Mortgage Bankers Association. For the week ending October 23, applications for new purchases dropped 5.2 percent.

Home equity lines of credit jumped up their biggest increase since earily March. The HELOC jumped 8 basis points and Home equity loans rose 6 basis points.

It has been my stance that rates must go up the dollar is dropping and inflation will have to be stopped if we continue on in the direction we are headed. Therefore, buy now while you can afford to purchase a home. Or you will be saying, Oh no the mortgage rates are climbing and I can't afford to buy my home.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

Mission Viejo Area Market Report

Mission Viejo Area Market Report

This weeks market report for Mission Viejo and surrounding areas shows that Orange County Median Prices for the resale homes were up 4.2 percent, for new homes it is up 4.2 percent and for resale condos up 3.1 percent. The sales volume is up for resale homes 3.0 percent and up 8.1 percent on condos and down 25.7 percent for new homes.

Mission Viejo Zip Code 92691 sales prices are down 7.2 percent and the sales volume is up 18.0 percent.

Mission Viejo Zip Code 92692 sales prices are up 3.3 percent and the sales volume is up 38.8 percent.

Aliso Viejo sales prices are down 14.6 percent and the sales volume is down 14.6 percent.

Laguna Niguel sales prices are down 5.2 percent and the sales volume is up 50.7 percent.

Rancho Santa Margarita sales prices are down 19.2 percent and the sales volume is down 2.9 percent.

San Clemente Zip Code 92672 sales prices are down 1.6 percent and the sales volume is up 171.4 percent.

San Clemente Zip Code 92673 sales prices are down 7.7 percent and the sales volume is up 23.0 percent

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

Spending tightens

Spending tightens


So what is happening out there in the real world when it is reported that spending tightens. The retailers are expecting a less than normal Christmas season because wages are flat and credit is tight. This will all lead to a consumer who's spending tightens.



Since the recovery is week the consumers are in no position to spend there way out of the recession. The Commerce Department reported that personal incomes were stagnant in September. While unemployment is still rising.



Consumer spending accounts for 70 percent of the total economic activity has dropped 0.5 percent the first decline in 5 months. The bright spot in the economy is that gross domestic product grew 3.5 percent from July to September.



Analysts are saying that the consumer are showing there fear of the economy by their spending habits and and they tightens the grip on their money.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

New Home Sales Up

New Home Sales Up

New home sales are up 42 percent in the Orange County Area. The new home sales are up and that is good new for the area. Is this the recovery? No one is ready to state that but it is a good sign.



The short sale and bank owned properties have been leading the way but now we have new home sales up and by a big percentage. Not only are the number of new home sales up the prices have been inching up as well.



We do know that there has been a drop in inventory and that can effect the market. Some may have been trying to just get a home.



This is the first year over year gain in new home sales in the 6 months.



The average price for an attached unit was $446,476 last quarter down from $582,650 in the third quarter of 2007. Note that last quarter the average price was $582,650 in the third quarter of 2007.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

Tax Amnesty

Tax Amnesty

Tax Amnesty draws about 7500 people who owe the federal government, IRS their taxes. About 7500 tax cheats have filed for the amnesty program that promised no jail and reduced penalties for tax cheats. The tax amnesty program allows those who hid money in more than 70 different countries and on every populated continent. The report states that the amount ranges from $10,000 to $100,000,000.



The IRS has a long standing policy that they would give tax evaders, who come forward, before they are contacted by the agency, no jail time. Fewer than 100 people apply for the program in a given year part of the reason is that the penalties can exceed the amount in the accounts depending on the lenth of time the tax evader has evaded the IRS.



In March the IRS began a six-month tax amnesty program that sweetened the offer with reduced penalties for the people with undeclared assets. The program was extended but it will not be extended again.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!

Irvine Company Optimistic

Irvine Company Optimistic

In the Orange County Register today there was an article about the Irvine Company being optimistic about the economy so much so that they are going to bankroll 685 construction units. While defaults are still mounting Jobless rates are still high the Irvine Company is still optimistic. Yet housing starts are at a record low, while new homes sales have dropped in 37 of the past 38 months the Irvine Company is still optimistic.



On Monday they are unveiling the 2010 New Home Collection,a project that will put 6 home building companies back to work. You can see the new home models are beginning to sprout up.



They believe the recovery is underway and that they will come out of the gate strong. They believe that the consumer is looking for homes while the prices are low.



The six builders, including longtime companies like Lennar, KB Homes, Brookfield Homes and two start-up companies The New Home Co. and Tri Pointe Homes. There will be 25 floor plans, with features that come from careful market research. Prices range from the low $300,000 to $800,000. These homes will be fairly high density with the larger lots at just over 4,500 square feet.



The Irvine Company stated they thought it would take one and one half to two years to sell all of the homes. They will prove they are optimistic about the future of the housing market by financing construction and they will keep the land in their name. The Irvine Company will have new architectural designs based on the market research.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

http://www.markandtim.com/

949-282-2521

Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!