Market Economics in California - What You Need to Know

Today, Ian Kleine is bringing us a market update for the state of California.

California: Economics

by Ian Kleine

The economic state of California holds a direct influence on the monetary system of the United States of America, due to the fact that the state pays more than as to the benefits it receives from monetary funds and benefits.

There are at least four major economic regions surrounding California. Hollywood, whose movies and projects cost and create a lot of money. California Central Valley, responsible for agriculture and the produce that supplies the state and its surrounding neighbors. Silicon Valley, which deals with the production, creation and development of computer hardware and electronic devices. And the wineries of California, particularly Napa Valley, Sonoma Valley and others.

By 2002, these regions were divided and more were added to the classification system. Among these were: Trade, Transportation and Utilities, Government, Professional and Business Service Providers, Education and Health, Leisure and Hospitality, Manufacturing, Financial Services, Construction, Information, Internet Business and Marketing and Agriculture.

The state also draws a lot of its income from tourism and international trade; after all, California IS the ‘melting pot’ of cultures in the United States. The tourism department makes at least an annual income of 134 billion dollars; with one third of that only coming from exports. The 96 billion something dollars left comes from revenue from direct traveling in to California.

California also competes with the other states in terms of agricultural produce. This includes the production of wines, cheese, dairy products, fruits and vegetables. California has been known to lead in the dairy category, with milk being the number one farming commodity, and has generated jobs and employment for at least 400,000 people far across the state.

Prospecting oil, so called liquid-gold, has also been under development. So far, rich strikes have been made near the Californian Coasts, Long Beach and Los Angeles. Oil drilling is not something new, it has actually supported the state over the years, now only making a comeback due to reduced and cheaper costs in drilling for oil around these areas.

–
Going for a trip to California? Why not make it worth the trip? California craft shows. Visit California craft fairs, that’s what I use to check up on mine.

Thanks for the update on the California economic climate, Ian!

If you’d like to learn more about how this affects your individual financial decisions, just drop us a line today to talk it over with a professional.

8 Reasons Why Now is the Best Time to Buy a Home

Mike Ciucci is joining us today, with excellent advice on taking advantage of this once-in-a-quarter-century buying opportunity that we are experiencing right now.

8 Reasons To Buy a Home Now

If you’ve been straddling the fence about buying a home, you could be kicking yourself when this unique window of opportunity closes. Never in history have the cards beens stacked for the buyer as they are now.

Here are eight reasons that will convince you that NOW is the right time to stop renting and buy your own home.

1. The market is with you. A Buyer’s Market occurs when there are more sellers than buyers, which results in more choices and lower prices due to excess supply. Homes are bought in both Buyer’s and Seller’s markets, but for the purchaser, now is the time they will get the most bang for their buck.

2. Favorable interest rates. As of the week ending April 16, 2009, a 30-year fixed rate mortgage averaged about 4.82 percent. The same time last year, the same mortgage was 5.88 percent. Five-year-Hybrid Adjustable Rate Mortgages (ARMS), were 4.88 percent, down from 5.48 percent a year ago, and the lowest since 2005. Imagine knowing that for the next 30 years, you’ll pay under 5 percent for your mortgage.

3. Foreclosure opportunities abound. Currently foreclosure properties make up about one quarter of all house sales. In California, 55 percent of all closings are lender-owned properties. Banks that do not want to be in the real estate business are dictating the price of homes, and they are anxious to cover their investment and sell. You have to be careful of what you’re purchasing, but the deals are out there.

4. Tax credit for first time buyers. If a buyer has not owned a home in the past three years, and falls in the eligible income range, they can take a tax credit worth 10% of the home’s sale price, up to a maximum of $7,500. This applies to homes that have closed between April 9, 2008 and before July 1, 2009, and can be applied to either the 2008 or 2009 taxes.

The really nice part of this tax perk is that it is a true credit. If you owe $8,500 in taxes, the $7,500 refundable credit comes off the top, leaving an amount owing of only $1,000.

Not only is this a refundable tax credit, but it’s also a loan. This means that within two years buyers must begin paying it back at no more than $500 per year for 15 years. If the home is sold during that time, the amount is withdrawn from the profit. If there is no profit, the loan slate will be wiped clean.

5. The cost of rent is not going down, but house prices are. The cost of buying a house has gone down in most of the U.S., in some areas more dramatically than ever. This drop in price has not affected rent prices, which have remained fairly solid. According to a report from John Burns Real Estate Consulting in Irvine, California, which surveyed 50 percent of the 76 main area markets in the country, the average person can buy a house for less than they could rent one.

6. Solid investment. In this tenuous market of shaky hedge funds and bankrupt financial institutions, it’s good to have an investment that you can feel relatively safe with. Every dollar you pay against your principle goes back in your own pocket when you finally sell, and with some extra added profit to boot.

7. More House for Your Money. With the combined lower prices and record low interest rates, a new buyer can start out with far more house than they could have if they had entered the market four years ago.

8. Today’s Built in Safety Features. Some states, such as California are trying to make it easier for people to invest in a home. The California Association of Realtors have introduced the Housing Affordability Fund’s Mortgage Protection Program. For a house purchased in 2009, if a homeowner is unable to make their payments, the fund will cover up to $1,500/month for six months.

–
Work with a qualified, dedicated agent for your Goose Creek real estate purchase. Find the ideal Charleston S.C. home at www.BuyingCharlestonRealEstate.com.

Excellent article, Mike.  This definitely is the smart time to buy.

If you’d like to speak with a Sacramento-area consultant about financing options for you new home, just drop us a line, and we’ll help you get started.

New Home Communities in Sacramento and Other Great Californian Cities

Check out these excellent new home communities in the Sacramento area (and throughout California).

California New Home Communities with Great Features

As the most populous state in the nation, California is one of the most desirable places to live. With close to 37 million residents, and growing, those wishing to relocate to the state, or within the state, need to be accommodated.

Lotus Walk is a townhome housing community found in the thriving city of Garden Grove, California. Located near to local entertainment, dining establishments, and shopping centers, Lotus Walk has over a dozen floor plans to select from. Lotus Walk is built by Olson Homes and range in size, from 2 bedrooms, 2.5 baths, and up to 1,683 square feet. Each townhome includes granite countertops, underground parking, ceramic tile flooring, and Whirlpool stainless steel appliances. The new homes located at Garden Grove start in the $300s.

Serenity, a Brookfield Homes master-planned luxury home community, is located at The Estates at StoneBridge in San Diego, California. Overlooking acres of preserved open space, Serenity provides single-family and two-story homes that emphasize both Italian and Spanish architectural design. Each home at Serenity offers a master retreat, ladies’ vanities, and a bonus living area downstairs. Homes range between 4,040 to 4,759 square feet, 5 bedrooms, 4.5 baths, and three-car or four-car plans. New homes at Serenity start in the $800s.

Cristallo is a desert-living community in Indo, California built by Ryland Homes. Cristallo is located in the master-planned golf community of Terra Lago, and provides new homes ranging from 1,987 to 2,619 square feet; the homes offer up to 5 bedrooms, and 3 baths. This Southern California community allows residents to live the country club lifestyle, without having to pay the country club price. Home-sites are currently available alongside the golf course and buyers can choose from 7 different floor plans. The homes at Cristallo start in the low $200s.

Elliott Homes’ Tuscany community in Rancho Cordova provides several new homes ready for immediate move-in, including the Bordeaux which is a 5-bed, 4-bath, 3-car providing two stories and 3,705 square feet of livable space. This new home community is located just east of Sacramento and includes many upgrades, such as high-quality carpeting throughout, tile flooring throughout, upgraded countertops, Jacuzzi tub, an alarm system, pre-wired 5.1 surround sound, plus upgraded kitchen appliances. The Bordeaux was listed at $723,950, but is now available for only $495,000.

William Lyon Homes’ Shady Lane at Whitney Ranch, a Rocklin, California new home community currently offers several move-in ready homes for sale. Located on lot 21 is Plan 2C which offers 4 bedrooms, 4 bathrooms, a 2-car garage, and 2,394 square feet of living space. This home is nearing its final stage of construction, meaning there is still time to customize many of the features such as carpeting, cabinets, and countertops. This home is particular home is priced at $332,990.

–
Search new homes california, orange county new homes and Californai new homes today!

If you’re moving to California, I hope you found this to be an excellent resource on the new communities you can look forward to moving into.

To talk to a local mortgage broker about financing your next home, simply head over to our free consultation page, fill out some basic information, and they’ll get right back to you!

How to Save Serious Cash on your California Property Tax…

With the recent decline in housing prices, there isn’t a better time for home buyers! Wallace Rowan is with us today to show us how to take advantage of these low property values to the benefit of our tax refund.

Lower Property Taxes in California

California homeowners who are merciless to avoid the downward roller coaster housing market ride have an option. While some enjoyed the ride up and other entered at the peak of the housing market bubble, everyone is now currently in a free-fall. Luckily, there is small silver lining to benefit from in the coming years. As a property owner, it is your right to file for a decline in value in order to capitalize on a unique opportunity to reduce property taxes.

Expensive property tax appeal consultants who demand up front fees simply aren’t necessary. Homeowners can easily lower property taxes by asking for a property tax reassessment from the county assessor, by filing for a decline in value. With a little hard work and the correct instruction, homeowners can successfully file a professional property tax reduction appeal themselves.

Many California homeowners have benefited from the reassessment of their property values. Due to strict deadlines of the counties of California, you may be prevented from seeking a property tax reassessment if you wait too long. Act now before another deadline passes and the potential savings of another tax year vanishes.

This is not a gift or a benefit given by the state but your right as a California homeowner to be taxed fairly. Home values have dropped dramatically in California so a reassessment resulting in a property tax reduction is almost guaranteed if you purchased your home between 2004 and 2007. Usually, the state increases your property tax annually at a capped rate of 2 %. In rare cases will your assessor approach you to reassess your home. It does not benefit you to wait until they do.

Californian property owners have been bombarded by annoying advertisements from property tax appeal consultants asking for up-front fees to provide a service that they can do themselves. Now, more than ever, homeowners need to take matters into their own hands and find ways to save money on their homes. The time for over-spending and hiring out for everything has passed. Now is the time for people to take control of their home finances and weather the storm. It’s really pretty easy to save thousands on property taxes but it requires a proactive get-up-and-go mentality to demand a property tax reassessment and win.

Do it yourself! There’s a growing group of California homeowners who are about to save thousands of dollars! You too can save thousands on your property taxes by filing an appeal yourself, but you have to take action and demand a property tax reassessment before it’s too late. If you need help, there are great programs out there that will show you what to do step-by-step and provide all forms necessary for your property tax appeal letter. Do it yourself and save $1000’s. Yes, it is possible to take the roller coaster ride down and still survive the plunge.

–
Don’t hire expensive consultants! It is your right as a citizen to file for a property tax reduction yourself and save thousands of dollars this year and in the coming years.

What an excellent optimistic article in a time when everyone else is seeing the glass as half empty. Thanks, Wallace.

If you’d like to discuss your personal situation in more detail, we have experts standing by to help. Just drop us a line today to get started.

Think Appreciation - Think California Real Estate

Today we’re here with Raynor James to discuss the housing market in California. In the land of rock stars, dreams, and technology, the entire world sees California as THE place to live. Raynor describes a few of the finer details of life in California.

California Real Estate - Appreciation on Steroids

For the last five years, owners of California real estate have been hitting the ball out of the appreciation ballpark. Yes, a real estate market on steroids.

California

California is heavily populated from north to south along the coastline, but they state offers significantly different ecologies. In Northern California, one is much more likely to see signs of the four seasons, get cold temperatures and more historic feel in locations such as Sacramento. Southern California, on the other hand, has an extremely moderate climate with temperatures rarely dipping below 60 degrees even in the winter. Rainfall is also scant with San Diego receiving roughly 11 inches a year. If you are considering moving to California, there are two constants throughout the state.

Traffic

So many people have moved to the state that traffic can be a real issue even on weekends. Los Angles traffic is legendary, but San Francisco and San Diego have their own congestion problems.

Earthquakes

Earthquakes are a constant throughout the state as the San Andres Fault bisects much of the state. Earthquakes happen all of the time, but they are typically very small. If you live in California for more than a month, you won’t even notice them.

Beaches, Sun and Culture

There are serious benefits to living in California. Foremost, of course, are the beaches. If the thought of spending weekends and evenings on the beach appeals to you, this is the place. You’ll pay a premium for it, but there is nothing like it. For example, the temperature in San Diego on October 5, 2005, the day I am writing this, is 79 degrees!

California Real Estate

California is an incredible place to live and real estate prices reflect it. Single-family home prices average as follows for the three major metropolitan areas - $620,000 for San Diego, $1,300,000 for central San Francisco and $750,000 for central Los Angeles. As a general rule, the closer the home is to the ocean, the more it will cost.

As shocking as the prices are, the rate of appreciation is downright impossible to believe. In the last 12 months, California real estate has appreciated over 25 percent. For a 500,000 home, that is a gain of $125,000 in 12 months. Steroids indeed!

Real estate is all about location, location, location. While this is certainly a cliché, there is no doubt it is true in California.

–
Raynor James is with the FSBO site - FSBOAmerica.org - homes for sale by owner. Visit our home buying page to view and buy California real estate.

Excellent article, Raynor! I know our readers were able to glean a lot of valuable information from your write-up.

If you’re reading this and you’d like more information about how you can take advantage of the excellent appreciation in California, drop us a line and we’ll be happy to provide you with a free consultation.